My Realistic Simulation Game

Chapter 101 Fictitious Capital Contribution, Account Adjustment, and Value Enhancement

Who are you going to short?

Fang Minghai swallowed hard and asked the question.

He doesn't fail to understand the term "short selling," but rather the act itself.

He felt that no one could short sell.

Shenzhen Development Bank is a bank, even if it's a small local bank. It's still a bank, and it's absolutely impossible for it to be shorted.

Vanke was founded in Shenzhen in 1984 by Wang Shi. It was originally a "modern scientific and educational instrument exhibition and sales center" that resold video recorders and animal feed.

It's definitely a trading company.

Starting in 1988, Vanke "deviated from its main business" and entered the real estate industry, acquiring the first plot of land in Shenzhen for 2000 million yuan.

At that time, the real estate industry was just starting out, and the policies were vague. Vanke was like playing basketball on a "basketball court," where they set their own rules.

But its advantage lies in its early start; now, Vanke is the second joint-stock listed company in Shenzhen.

With money in their pockets, they began to expand rapidly.

How can you short a company like this?

Shenjintian is a non-ferrous metal processing company, including copper wire rods and copper alloys, and also deals in rare earth permanent magnet materials.

How can a legitimate state-owned industrial manufacturing unit short sell its products?

Anda is an electronics factory, mainly producing CNC machine tools and optoelectronic devices, which are now industries that Shenzhen is vigorously developing.

Although the scale is still relatively small, Fang Minghai still cannot find any signs of a pessimistic market outlook.

Finally, there's the open field.

A textile trading and real estate conglomerate.

State-owned enterprises, Sino-Hong Kong joint ventures, and public-private partnerships—these are all exemplary entities that have been featured in newspapers.

Can this be shorted?

He wasn't a newcomer to the mainland; he was aware of some basic rules.

To be honest, he really couldn't see any possibility of shorting these five companies.

"I want to empty the plains."

After listening to Fang Minghai's analysis, Qin Yuan bluntly stated his goal.

"The wilderness?" Fang Minghai was taken aback, then asked, "Why that? Brother Qin, what did you discover?"

Qin Yuan did not answer immediately. Instead, he walked to the desk, picked up the notepad and pen provided by the hotel, and sat down.

He calmly began to speak:

“Boss Fang, you said that Yuanye is a ‘Sino-Hong Kong joint venture’ with a strong background.”

"Then let me ask you, if I told you that this so-called 'Hong Kong capital' is just an empty shell, a complete scam, would you believe me?"

"An empty shell? A scam?" Fang Minghai's heart skipped a beat!
As a Hong Kong businessman, he is extremely sensitive to the shady dealings of "Hong Kong capital"!

He immediately stepped closer, "Brother Qin, you can't just say things like that! What evidence do you have?"

Qin Yuan waved his hand, "There's no evidence yet, but I'll find it."

He may not have any evidence on hand, but he has it in his mind.

In his previous life, he had read a report titled "The First Case in the A-Share Market—A True Account from Deep Wilderness."

This report was originally a casual piece written by an author and published on Eastmoney.com.

Qin Yuan happened to see it while he was trading stocks.

Although he couldn't remember the details.

However, he remembered the name "Fukahara" and its final fate perfectly.

Knowing the problem is one thing, but writing the answer can be quite difficult.

But knowing the answer makes making up questions incredibly easy.

However, while creating the questions, an idea suddenly popped into his head. Since the achievement points he earned could load the [Learning Module], enhancing his thinking and learning abilities...

Could we create a "memory module" on top of "memory" to make his past memories even more vivid?

Or perhaps, it's just searching for a fragment of content in one's mind?

He had read that the brain's memory capacity is enormous, but cannot be precisely quantified.

Over a lifetime, the human brain can store approximately 1 quadrillion bytes of information, equivalent to about 1% of the entire internet content.

However, memory is not simply "hard drive storage," but is dynamically achieved through the strength of synaptic connections and the reorganization of neural networks.

In short, memory is not statically stored, but dynamically adjusted.

Everything you see is stored in your brain, but to retrieve it, you need neurons to connect.

The connection of neurons requires a specific trigger.

However, this is external force. To possess "internal force," one needs to continuously learn, repeat, and practice to enhance it.

But he could have easily done all of this using "achievement points".

With this in mind, he focused his attention and tried hard to recall the three words "Fukahara".

Sure enough, a mechanical voice sounded the next moment: [Achievement points reached 1000, memory module activated, memory palace under construction]

Memories that had been blurred slowly became clearer.

As a child, I stole melons and climbed trees in the countryside; as a teenager, I played and fooled around in the classroom; I had a romance in high school; and in college, I climbed Mount Tai at night with my roommates, feeling the excitement of overlooking all the mountains.

And after becoming a corporate slave, I recalled countless times working overtime to meet performance targets, drinking, talking myself hoarse, and sleeping soundly on the rooftop.

They all flashed before his eyes like a revolving lantern, and then appeared as memory entities in his memory palace.

Along with these images, his entire life—every book he had read, every movie he had watched, every story he had told, and every character he had encountered—was layered upon layer within the palace.

The three words "deep wilderness" that he was thinking of seemed to have some kind of attraction.

Lines of text appeared in his mind with perfect clarity.

Peng Jiandong, a native of Wuyun Town, Jiexi County, Jieyang City, is the actual controller of Shenyuanye and a "first-generation" figure in the capital market who should not be forgotten.

In November 1986, a well-known event occurred: various regions were allowed to select a small number of qualified large and medium-sized state-owned enterprises to pilot the shareholding system.

The following year, Shenzhen embarked on one of the most challenging major reforms since the establishment of the special economic zone—the shareholding system reform. In October, the shareholding system establishment plan for Shenzhen Development Bank was completed, and in May, it began publicly offering ordinary shares with a face value of 20 yuan to the public through a "free subscription" process.

While most people were still hesitant about the reliability of stocks, Peng Jiandong astutely seized the opportunity hidden behind the major move of shareholding system reform.

In June 1987, a state-owned, Sino-foreign joint-stock company named "Shenzhen Yuanye Textile Co., Ltd." was established.

Qin Yuan wrote down these words with lightning speed.

Fang Minghai looked at what Qin Yuan had written on the paper, his face full of question marks.

Peng Jiandong knew this person; he had seen him mentioned in the newspapers. But wasn't this the general manager of Yuanye?

But what does this have to do with shorting the field?

He hasn't even asked that question yet.

Qin Yuan picked up his pen again, and this time he wrote down six four-character phrases:
[Borrowing power from others] [False investment] [Adjusting accounts to increase value] [Using someone else's position] [Using someone else's strength to fight another] [Secretly carrying out a plan]

Upon seeing these six words, Fang Minghai's pupils suddenly contracted.

This time, he was truly moved.

If "the fox borrows the tiger's power," "the cuckoo occupies the magpie's nest," and "crossing the Chencang pass in secret" are written in a rather obscure way...

The terms "false capital contribution" and "accounting adjustment for appreciation" are clearly out in the open.

As a veteran Hong Kong stock investor with over 20 years of experience, he certainly knows what this means.

Recalling Qin Yuan's earlier statement about "Hong Kong-funded shell companies," a bold idea popped into his mind that made him break out in a cold sweat.

Are people from mainland China really that daring? Are they courting death?

This is fooling the entire city of Shenzhen, and even the whole country!
(End of this chapter)