I'm in the county town, and you say I'm a big shot?

Chapter 370 Stepped on a landmine!
In 2011, numerous stocks in the A-share market experienced significant negative news, particularly in the food and pharmaceutical industries.

First, the "lean meat powder" incident at Shuanghui Development triggered a series of stock price declines due to the company's "quality scandal." Last year (2010), CCTV's 3.15 special program exposed the inside story of Shuanghui Development's acquisition of "lean meat pigs" fed with lean meat powder.

On the day the news broke, Shuanghui Development's stock price plummeted to its daily limit, and the company immediately announced a trading halt. A month later, when trading resumed, Shuanghui Development still couldn't escape media criticism, and its stock price fell to its daily limit for two more days.

Mengniu Dairy has also repeated Yili's mistakes and fallen into another dairy quality vortex. After one of its products was found to contain aflatoxin, a highly carcinogenic substance, Mengniu Dairy's stock price in Hong Kong plummeted by 24%.

Then there's Chongqing Brewery. Their vaccine story has been going on for 13 years, and the company's stock price nearly increased 30-fold, fueled by vaccine development. No one could have predicted that a set of unblinded data would cause Chongqing Brewery's vaccine myth to falter. Industry skepticism regarding the unblinded data led to 10 consecutive days of limit-down trading, ultimately pulling Chongqing Brewery's stock price from 81 yuan back down to 28 yuan. The nightmare began from there.

Next up is the renowned Zixin Pharmaceutical.

Founded in the late 90s, Zixin Pharmaceutical Co., Ltd. is a high-tech joint-stock enterprise integrating scientific research, development, production, sales, and cultivation of medicinal plants and animals.

It's actually about growing ginseng.

Listed on the Shenzhen Stock Exchange in 2007, Zixin Pharmaceutical's performance had been mediocre until the first half of this year (2011), when it suddenly became a hit, achieving revenue of 3.7 million yuan and net profit of 1.11 million yuan, representing year-on-year increases of 226% and 325% respectively!

These figures are clearly stated in the company's latest semi-annual report.

Zixin also received recommendations from numerous securities firms due to its outstanding performance, and its stock price soared from the initial 7 yuan/share to the current 18.45 yuan/share.

It seems that Baoying Fund did indeed catch a ride on the wave and make a fortune, but unfortunately, its good days are about to come to an end!

Soon it will be revealed that the company fabricated upstream and downstream customers, fabricated ginseng-related transactions, and that its top five operating customers were all "shadow companies," making it the focus of controversy in the investment market and raising questions about whether it is "the second Yin Guangxia."

Finally, the China Securities Regulatory Commission (CSRC) issued an inquiry letter, forcing Zixin Pharmaceutical to suspend trading for self-examination. This suspension lasted for several months, and after trading resumed, the stock experienced several consecutive days of limit-down trading.

Fang Qingye was naturally pleased to see it happen.

However, it's a bit of a shame that Baoying Fund only invested a little over 6 million yuan, which is a bit small.

Fang Qingye then carefully examined the other stocks that had been purchased. The holdings were all relatively small and there was no value in speculating on them. It seemed that Li Wei was quite cautious.

Looking at the other emails, Fang Qingye didn't find much of value. He then carefully examined the sources of funds for Baoying Fund. They were mostly from private enterprises and individuals, about a dozen in total. Among them was a name that Fang Qingye recognized: Baoshang Bank.

Baoshang Bank is also one of the investors!

He invested a total of 5.4 million yuan, making him the largest investor.

What the hell!

According to the Commercial Banking Law, commercial banks cannot directly invest in private equity funds. However, it was 2011, and the supervision was not strict. The first administrative regulation on private equity funds, the Regulations on the Supervision and Administration of Private Investment Funds, was not promulgated until 12 years later.

This merchant was casting his net far and wide, making money everywhere.

Fang Qingye recalled the time when Baoshang Bank took the lead in establishing Nanxin Rural Bank and couldn't help but shake his head.

However, both Baoying Fund and Nanxin Rural Bank are now facing crises, making Baoshang's situation quite tragic.

Of course, this was not Fang Qingye's concern. His current thought was whether Baoying Fund could buy more shares of Zixin Pharmaceutical.
If you're going to play, play big; if you're going to make money, make a lot.

It will fall even more sharply in the future.

Fang Qingye habitually made herself a cup of tea and began to think while staring at the screen.

After pondering for a long time, Fang Qingye decided to call Shi Guangrong. The call was quickly answered, and Shi Guangrong's voice came through: "Qingye, is something wrong so late?"

"Yes, I'll send you something via QQ. Be careful to keep it confidential."

"OK!"

Fang Qingye packaged the data on the USB drive and sent it to Shi Guangrong via QQ online. Then, she took her teacup to the balcony and looked at the night view of Lujiazui.

The office building across the street, Building B, was still brightly lit, with many companies working overtime.

Fang Qingye observed carefully.

The lights in the Topway Technology office were off, but most of the offices in the adjacent Tomorrow Cube were still lit.

Hey, hey.
The lights in the Baoying Fund office on the same floor were also on!

I wonder if Li Wei is also working overtime?
Fang Qingye thought to himself.

Unbeknownst to him, Li Wei was not working overtime. Instead, he was enjoying the meticulous service of a beautiful masseuse at the Ritz-Carlton Spa on the 58th floor above him, with three of his trusted confidants wrapped in towels around their waists.

Li Wei was in a good mood.

Good things have been happening one after another in the past few months.

First, he shorted the Shanghai rubber RU1107 contract, risking being liquidated, but he gritted his teeth and persevered, eventually making 4.5 million yuan.

Meanwhile, he also turned his attention to the A-share market, buying up shares of Zixin Pharmaceutical, and now has a paper profit of 5800 million yuan!
With this record and this level of skill, even I admire myself.

Of course, some underhanded tactics were involved, such as hiring reporters to falsely accuse Fang Qingye and other futures tycoons of manipulating the market, but these can be ignored.

The self-proclaimed new and old kings of the futures industry claimed they were going to find that reporter surnamed Ding and expose the mastermind behind it all. But two months have passed and there has been no progress.

I don't do things in a way that you can easily find fault with!
So today, I brought three of my trusted confidants to the spa to relax.

"Boss, Zixin Pharmaceutical's stock price has been on an upward trend. Should we invest more?" a young man next to him suddenly asked.

Upon hearing this, another man became somewhat displeased: "Feng Jing, the boss said tonight we should enjoy life, why bring up work? Do you like working 996 and being a beast of burden?"

Feng Jing was a little unconvinced and muttered, "I just want to earn more so that our commission will be higher at the end of the year."

Private equity funds differ from public funds; the latter's returns are solely from the daily management fees, and are unrelated to the fund's profits or losses.

The main source of income for private equity funds is profit sharing. Management fees can only be charged when the net asset value per unit of a private equity product is positive. More importantly, private equity funds charge a 20% performance fee based on their profits!

In other words, if they earn 6 million yuan in profit by the end of the year, in addition to their annual 1% commission and approximately 2000 million yuan in management fees, the bulk of their profit is 1.2 million yuan in profit share!
Who wouldn't want to strike while the iron is hot and make more money?

Li Wei naturally shared the same thought.

However, he didn't rush to express his opinion. Instead, he looked at the thin man lying on the bed to his left. His name was Yang Yongliang, the company's investment manager, who was responsible for investment analysis and decision-making for specific projects. He was Li Wei's strategist.

Yang Yongliang, with his eyes slightly closed, seemingly oblivious to their discussion and immersed in his own enjoyment, suddenly opened his eyes slightly and said:
"What have Fang Qingye and Lin Guangmao been up to lately?"

(End of this chapter)