What's wrong with me being a rich man?

Chapter 611 LeEco's Worries (4k)

Yu Xing remained silent, not revealing his "One Qi Transforms into Three Pure Ones" technique. However, Guo Shanfeng released a subtle signal: his "blank white paper" sparked widespread reposting, reporting, and dissemination.

Following the revelation of the identity of the "King of Short Sellers," this short-selling institution, once known for its mystery and which stirred up waves in the global financial world, seems to have unraveled more mysteries.

However, to the disappointment of the media, the industry, and onlookers, the explanation in this white paper was not surprising. The "King of Short Selling" with a 100% win rate is clearly a short-selling institution built on extreme fundamental research.

According to Guoshanfeng's own statement, it did not use any insider information, and all conclusions were based on the analysis of publicly available information. It is essentially a research institution. As for short selling, Guoshanfeng itself did not engage in any short selling activities. Any short selling related to the analysis report was merely a personal act that complied with the disclosure of position information.

This explanation is not uncommon. For example, the famous "Pershing Square" on Wall Street was founded by Ackman, who claimed to have achieved landmark success by studying the fundamentals of companies, thus providing a convincing endorsement for the fund's fundraising.

Along with Guo Shanfeng's concise explanation comes a review of his past achievements, from Fenzhong Media in the early days to Huishan Dairy in the latest. It's like taking the media and the general public on a second look at the king of short selling's record. At the same time, each company is accompanied by a note ranging from a sentence to several sentences.

The blank white paper features both small players like China Forest Holdings and well-known industry giants like Alibaba and Volkswagen. Even though it's not the first time people have reviewed it, it still makes people talk about it with great interest.

The white paper concludes with a simple interpretation from Yu Xing: "We need to be wary of those perfect stories."

This statement is not surprising, but it takes on a deeper meaning when considering the record of the "King of Short Sellers," and it almost symbolizes that "Over the Peak" has a tendency to make further public operations.

If, according to Guo Shanfeng's own statement, it is just an independent and legitimate research institution, will it continue to conduct research in the future?
Many people expressed outrage at the white paper.

"I strongly urge that Guoshanfeng, Qingtian Software, and Lusheng Molong should also be on the list!"

"Let's leave Shandong Molong aside, since it was one of its own employees who came forward to expose it. But Qingtian Software shouldn't be excluded, right? Wasn't it President Yu who criticized them to their faces?"

Some people have expressed significant doubts about certain parts of the white paper.

"Research firm? Individual behavior? Mr. Yu, are you taking us for fools? Fine, fine, I believe you, okay?"

"The king of short sellers said it was just research, which is like when Mr. Yu was making WeChat, he told Tencent, 'I'm just riding on their coattails.'"

"It's not surprising; no one can publicly admit to such a thing, especially when facing investigations from abroad."

To many, this statement from Guo Shanfeng appears to be a response to the formal initiation of an investigation in Europe. The overseas reaction to the equating of Mr. Yu with Guo Shanfeng has been somewhat slow.

First, the correct answer came too abruptly; second, all relevant information needed to be disseminated; and third... Christmas is almost here.

Reporters from Wall Street and major European media outlets were dispatched to Shanghai, but none were able to contact Yu Xing directly. In the end, they could only report on the matter using secondhand information and with a degree of skepticism.

Compared to the caution of authoritative media, victims and their peers are much more direct.

John Paulson expressed his shock on Twitter: "Despite the long-standing rumors that Mountain Peak was founded by Chinese people, it is still unbelievable that someone so young and with such remarkable achievements in the mobile internet and new energy fields would claim this title!"

He correctly predicted the subprime mortgage crisis, and his hedge fund was among the largest in the world.

Andrew from Citron Research lamented the way Over Peak was exposed: "Over Peak's operation was perfect, it was like a lever in itself, but even such a perfect institution can have problems in the details, let alone those fraudulent companies."

While short sellers remained relatively neutral, many financial institutions launched rather fierce attacks.

—Alright, the chapter of the King of Short Sellers is over. He should start the second half of his life as the King of Prisons in prison!
—The mountain peak severely disrupted the order of the European financial market, and this Asian man should receive an astronomical amount of compensation!

—The European Securities and Markets Authority (ESMA) has launched an investigation into Guo Shanfeng and Yu Xing, and believes they will face the punishment they deserve!

On December 2nd, the ESMA investigation was relayed to Lingang, and the German Federal Financial Supervisory Authority also filed a lawsuit. Two days later, the day after Guo Shanfeng released his blank white paper, five top lawyers from different European law firms announced that they would represent Yu Xing in the future litigation case against Guo Shanfeng.

Graham Dunning, David Bloomhall, Laurent Gilhand, Dan Sheffert, Paul Dolman.

This lineup boasts an "absolute authority in commercial litigation," "stars of competition law," and extensive experience in confronting official bodies such as the European Commission—a truly impressive roster.

And, after announcing their representation in Yu Xing's legal proceedings, their first action was to unexpectedly launch a countersuit against German company BaFin, demanding that it unfreeze the €2 million previously frozen in connection with Guo Shanfeng.

This preemptive strike undoubtedly angered Germany's BaFin.

Officials privately stated that they were determined to ensure that Guoshanfeng, once exposed, would receive the punishment it deserved.

Over the Peak is clearly facing extremely complex investigations and lawsuits. The recent power struggle in this field has been popularized by many media outlets. However, while we are still explaining the various adverse effects of the exposure of the short-selling king, another unexpected piece of news has suddenly shaken the industry.

— Silicon Carbon Group submitted its IPO prospectus to the Hong Kong Stock Exchange on December 7.

It was already known that they wouldn't be listing on Nasdaq, and it was an inevitable outcome. But surprisingly, Silicon Carbon Group is now considering listing in Hong Kong.

This move not only surprised mainland media, but also immediately sparked huge controversy in Hong Kong.

Guo Shanfeng has shorted many Hong Kong-listed companies, and two of them have recently been declared junk stocks. How can we allow Silicon Carbon Group to list in Hong Kong before Guo Shanfeng has thoroughly investigated the matter?
Silicon Carbon Group is not wrong, but if Silicon Carbon Group is combined with the king of short sellers, then it should be rejected.

As the Gregorian New Year approaches, a series of news items have made the Baixiaosheng Forum particularly lively. One moment it's the translation and tracking of overseas information, the next it's the opposition from Hong Kong media and institutions, the next it's an in-depth review of the short-selling case of Guoshanfeng, and the next it's the reminiscence and reflection on the transformation of one breath into three pure things.

The Baixiaosheng Forum is full of hidden talents, and many industry elites are indeed among its members. Recently, it has been frequently sharing firsthand information.

What shocked everyone the most was that photos of the interior of the president's office at Silicon Carbon were leaked on the first day of the exposure of the mountain peak.

— Yu Xing stood on his desk, pointing angrily at a figure in the crowd. Even from the side, one could see that there were many big shots.

This is a standard trending photo.

As expected, the photos spread rapidly, and major media outlets that are monitoring the Baixiaosheng Forum will likely have no shortage of news for the next month or two.

"Goodness, who's behind this alias? Is this the scene where President Yu angrily pointed at Qingtian Software? He was really at his desk? I thought it was an exaggeration."

"I saw it! I saw it! The short-selling exit indicator!"

"Absolutely amazing." "There's a big shot behind this pseudonym! All I can say is, awesome!"

Zhang Chaoyang, who was out in disguise, looked at the various comments and smiled with satisfaction.

After thinking it over, he gave a reply: "I think this person really couldn't hold back their emotions in the photo. Anyone who could hold back would have depression."

This post quickly became a trending topic.

Jia Yueting, who has been closely monitoring the situation of the short-selling king recently, also saw this photo. Unlike others who were just watching the spectacle, he stared at the photo and felt even more nervous and his mood worsened.

Because of the success and influence of Silicon Carbon Group in the new energy field, Jia Yueting had long since avoided Yu Xing.

However, he never expected that the head of the silicon carbon industry was actually the king of short selling in private...

How much influence can a century-level short seller have?
This can already be seen in Qingtian Software.

Without a short-selling report or any concrete statements from the parties involved, a Hong Kong-listed company simply collapsed!
If Jia Yueting really wants to publicly question the other party, the market, and all the onlookers, isn't he afraid of being mistakenly targeted?!

Unfortunately, it cannot be exchanged.

Not only can they not speak out publicly, but they also have to be careful not to attract the other party's attention.

Because what Jia Yueting fears most right now is this kind of instantaneous killing ability.

LeEco's move to manufacture cars is essentially a way of placing the business in a non-listed company. This is to avoid potential negative impacts from Silicon Carbon Group, not to mention the terrifying influence of short-selling giants on listed companies...

Jia Yueting knew his own situation; LeEco's stock price had reached a dangerous level.

Over the past month, LeEco's stock price has been fluctuating around 40 yuan, a 40% drop from its peak in the middle of the year. Meanwhile, Jia Yueting has pledged all of his shares, both openly and secretly.

At that time, the pledged shares were mainly priced between 48 and 53 yuan, while the liquidation price for institutions was 30 yuan.

There's still 25% downside potential for the price to drop from the current 40 yuan to the warning line of 30 yuan, but can 25% offset the impact of the bear king?

Jia Yueting believed that his business would not conflict with Lingang Silicon Carbon, and he did not understand why Mr. Yu had such an attitude towards him. However, adhering to the mentality that it is better to be cautious than to make a big mistake, he was unwilling to have a direct conflict.

When President Yu arrives, I leave; when President Yu holds a meeting, I skip it. What else can I do?
What else can we do?
Unexpectedly... the King of Short Sellers was born amidst the explosions of Huishan and Qingtian.

Jia Yueting is now very worried that Yu Xing's attitude towards LeEco or himself will be exposed. He feels that those shareholders and netizens are simply too fanatical. Once a company with problems is questioned, the 25% buffer seems quite dangerous.

He had been quietly observing and remaining vigilant about the spread of the short-selling king's influence.

The Huishan explosion, well, that was short selling before the peak was exposed, so it's okay that it happened.

The skyrocket exploded, well, after all, it was the person involved who went to the office and caused a scene, so it exploded and that's that.

No way, why did the Molong in Shandong Province just explode like that?!

It wasn't an evaluation from the "King of Short Sellers," nor was it a short-selling attack from Guoshanfeng. So how could it be exposed under these circumstances?
This is insane! Everyone's gone mad! The Baixiaosheng Forum should be shut down completely!

These days, Jia Yueting hasn't been eating or sleeping well. He spends all his time scrolling through his phone, reading news, and browsing forums. He's even happy about the Hong Kong listing of Silicon Carbon Group. Since Silicon Carbon Group is going to continue its listing, Mr. Yu's energy should mainly be focused there.

The more things Mr. Yu does, the less likely LeEco will be affected.

Jia Yueting was planning the business for Yu Zong. Silicon Carbon was going to go public, Guoshanfeng was going to face lawsuits, and Silicon Carbon Data was going to face attacks from two giants. It should never have been LeEco's turn.

However, on the evening of December 15th, a new post appeared on the Baixiaosheng Forum.

"Speaking of which, I remember that Mr. Yu was not optimistic about many new energy projects."

When Jia Yueting saw the title of this post, his heart skipped a beat. After slowly clicking on it, he saw that there were only a few discussions inside, about things like Singulato Motors and Youxia Motors...

His throat bobbed up and down intermittently, and he refreshed the page every now and then.

Half an hour later, Jia Yueting saw a new comment pop up.

"Let alone Singularity and Youxia, even LeEco's car manufacturing is not viewed favorably by Mr. Yu. When LeEco came to Zhejiang Province to discuss cooperation, Mr. Yu thought that the prospects for such cooperation were not good."

"Oh right, it wasn't just Zhejiang Province. When LeEco went to Tongshi, Anhui Province to discuss cooperation, it wasn't well received either. I quite agree with Mr. Yu's point of view."

Li Song, a self-proclaimed short seller, spoke under a pseudonym about the "King of Short Sellers'" attitude towards LeEco's car manufacturing venture. He had previously studied LeEco and was very clear about the relevant situation.

Jia Yueting's face turned pale, his fingers trembled slightly, and he licked his lips.

He took two deep breaths and used his own account to voice his opposition: "I think LeEco's car manufacturing is acceptable. I don't expect it to be as successful as Silicon Carbon Group, but it's at least better than Singulato and Youxia."

His words were quickly refuted.

"LeEco's current business situation is terrible. It has invested heavily in various businesses, and Jia Yueting has pledged a lot of shares. Is building cars so easy? Singularity and Youxia were able to turn back from their mistakes, but if LeEco really invests, it will be a chain reaction, and it is very likely to lead to a death spiral."

Jia Yueting stared at the sentence for a minute before finally slamming his fist on the table.

What he fears most is a death spiral. If the stock price falls to the liquidation line, he doesn't have the money to replenish his position. Once it's difficult to replenish his position, the market will inevitably panic. If there is panic, the stock price will continue to fall, and the margin accounts will inevitably be liquidated. LeEco will then be trapped in a death spiral from which it is difficult to escape.

Jia Yueting stared at the screen, his thoughts drifting. He chain-smoked, tossing cigarettes one after another. On one hand, there was the mess left by LeEco; on the other, the terrifying influence of the king of short sellers. What to do? What to do?
He stayed up until midnight, his eyes bloodshot, and seeing the posts still gaining traction, he decided to strike first and confront the king of short sellers head-on.

(End of this chapter)