Those Years When I Was Forced to Top the Forbes List

Chapter 160 Evenly matched
Chen Xuebing and District Chief Hong, who was all smiles, toasted each other.

District Chief Hong praised the company in public, saying it was "cutting-edge, insightful, and thoughtful."

One event resulted in an additional eleven million in funding.

Many of the investors present had previously worked for their former employers and had long disregarded the old ways of their former workplaces, but they all held unwavering faith in the power and authority within those organizations.

Even his uncle pulled him aside and asked him how he got to know this important person, whether he had spent money to pull strings behind the scenes. He frowned and told him that when dealing with such a high-ranking leader, he should not be too straightforward, but should be more tactful.

Chen Xuebing explained briefly that it wasn't that complicated. He said that the financial company and the government might have business cooperation in the future, and if they became close, he would then be asked to participate in bridging interpersonal relationships.

Even more humorous was Li Xueling, who came to "visit." When Chen Xuebing finished his work and was about to go downstairs to the elevator, he heard Li Xueling secretly making a phone call to Lei Jun in the nearby emergency stairwell.

The echo was quite loud; I was a little excited.

"District Chief, the District Chief."

"He looks quite young to me."

"Brother Lei, how about I move the company to Chongqing?"

Chen Xuebing laughed as he listened. A top student from the philosophy department of Renmin University, who used to work for a major newspaper in Beijing, and a ranter on the internet who rants about everything, was surprisingly short-sighted about power.

That makes sense. In his previous life, Xu Jiayin was able to move Evergrande from Guangzhou to Shenzhen because of his connections. People at any level can probably understand how beneficial it is to have connections.

Just now, when District Chief Hong left, he mentioned again that "Chongqing is a great place with much to offer," expressing his desire for him to develop his career in Chongqing. At that moment, even he hesitated for a moment.

Chongqing has cultivated so many investors, and now we've gotten to know District Chief Hong from the mother city. Once the fund is up and running, won't we have friends all over Chongqing?

In his past life, he worked hard for many years, all he wanted was the phrase, "When you come here, mentioning my name will work."

Local tycoons sometimes live more comfortably than those national tycoons.

His resolve wavered slightly. Although his desire to break out remained unchanged, the repeated disruptions caused by the Nanshan Pizza Hut and reporters made him realize that he needed to acquire some assets in Chongqing and make it his true rear base.

Everyone needs a piece of land for building a house.

At least, if one day I were to have a fierce battle with Mr. Ma in Shenzhen, just like 360, and if Mr. Ma were to use the same methods as in my previous life to call the police and arrest Lao Zhou, wouldn't I be able to stay safely in Chongqing instead of fleeing to Hong Kong like Lao Zhou, and even use the same methods to remotely capture him?

Sometimes, everyone's business tactics inevitably become rather rudimentary, and they still need some resources to survive.

By the way, I also promised to donate two police cars to my dad's old workplace. I need to get it done as soon as I have some money.

……

In the afternoon, an investor who had already planned to give up heard that the district head was attending the opening ceremony and arranged for his secretary to transfer three million yuan.

During this period, several investors called, asking if the fundraising deadline could be extended, or if they could wait until the fund had been operating for a while before investing and increasing capital.

I don't know what I'm waiting for, I just want to wait a little longer.

Perhaps they want to wait until the market has been rising steadily before getting on board.

Following Chen Xuebing's instructions, New York 45 responded uniformly: The fund had a lock-up period stipulated when it was established, and the fund was to participate in the performance ranking. After the lock-up period, it was not easy to make any changes, and it could only be traded through the transfer of internal fund units.

Another two million was deposited.

At 4 p.m., the fundraising target was set at 155 million.

Despite a slight decline in the overall market today, the total value of stocks held by Changzheng Capital bucked the trend and rose by 0.7 percentage points, yielding a profit of nearly one million yuan, which just made up for the previous losses.

One hundred and fifty-five million, that's the starting point.

The stock account was almost fully invested, simultaneously trading 16 stocks, including OCT in the real estate sector, Suning Universal (formerly ST Jizhi), Guangcai Construction (backed by the Oceanwide Group), Dashang in the department store sector, Wuliangye and Moutai in the liquor sector, Aerospace Electronics and Hudong Heavy Machinery (China Shipbuilding) in the military sector, and non-ferrous metals...

There are also some stocks that are about to undergo share reform. Chen Xuebing doesn't remember some of them, but after collecting information from New York 45, some of these stocks have been included in the company's stock portfolio by Chen Xuebing.

The basket of stocks has expanded to 50.

Trading is conducted through a single escrow account with 10 linked accounts.

Each investment is limited to between 500 million and 2000 million shares, and cannot exceed 1% of the total share capital or 2% of the circulating share capital.

It cannot affect the course of the previous life.

During this period, the staff of Changzheng Capital expanded to 25 people, and it became an intelligence center, constantly collecting stock information, some of which was more than 20 pages long.

Every day thereafter, the account will show gains or losses in the millions. According to the signed profit contract and the proportion of his own funds, as long as there is a profit, nearly 43% of the profit will belong to him.

Everything is ready; all that's left is for the funding to come in.

……

A week later.

December 11th, Monday.

The bougainvillea that fills the entrance of Chongqing Jiaotong University blooms in spring, summer and autumn, but never in winter.

When Chen Xuebing left Jiaotong University, the deep red and light purple colors were still vibrant, but now he has become a lone commander.

The Audi A6 was parked at the school gate, but didn't go in for a long time.

Jiao Gui waited for his boss to finish the call.

Chen Xuebing sat in the back row, holding the phone to his ear, his other hand supporting his forehead, looking somewhat anxious.

"Fifty billion becomes twenty billion, twenty billion becomes ten billion. Director Jiang, I've already said that I painstakingly drafted this plan for you, not to raise money for Yuzhong. Ten billion, you want to invest in the semiconductor industry and build an industrial park? That's just wishful thinking."

"Let's not talk about anything else. Do you know how much money Zhang Rujing, the founder of SMIC in Shanghai, brought with him when he returned to China in 2000 to build a wafer fab?"

" billion!"

"Dollars!"

"A golden phoenix needs to be inlaid with gold! An industrial semiconductor plant with cutting-edge international R&D capabilities and large-scale production capacity cannot be acquired for less than 10 billion. 1 billion is not even a fraction of that. Who do you think you can pry open?"

"Without enterprises of this scale driving the development, how can there be a cluster effect?"

The person on the other end was very patient, waiting for Chen Xuebing to finish speaking before calmly saying, "Mr. Chen, have you read the latest guiding documents on the shareholding reform?"

"I've seen it. The document is too long. Just tell me what it contains."

They read it aloud word by word:
"After the separation of old and new shares in the split reform, all companies with state-owned shares that go public in China must transfer 10% of the state-owned shares to the National Social Security Fund Council, unless otherwise stipulated by the State Council."

"Mr. Chen, when a company invested and supported by the municipal government goes public through an IPO, it has to transfer a considerable amount of shares to the social security fund. In terms of equity investment, it is not cost-effective for the local government. Therefore, the investment profit you mentioned is difficult to achieve unless we invest in a company that is already listed."

Chen Xuebing smacked his lips.

He'd heard about the reduction of state-owned shares, but hadn't really thought of it before. In this power struggle between the central and local governments, everyone's standing on their own side, trying to avoid any loss.

However, the other party's last words also implied that they wanted to inquire about the target.

BOE has already been listed on the Shenzhen Stock Exchange and has been split into BOE A and BOE B.

If he says that the company is a listed company, the scope narrows down considerably.

It's not that we can't say it, but the process is still very long, and it's pointless to say it too early.

"The reduction of state-owned shares can be exempted by applying for an exemption. Otherwise, what's the point of setting up an investment fund if you can't make a profit? The guiding document just doesn't take everything into account. If you submit a report, it should be approved."

Chen Xuebing was slippery, and Secretary Jiang didn't press the matter, continuing at her own pace:

"For the development of the industrial chain, we can leverage a small amount to achieve a large return. The central government has allocated 500 million yuan to establish a fund, and we can add another 500 million yuan. According to your proposed leveraged reinvestment, I think a 1:2 reinvestment requirement is not too high, right? We can raise 2 billion yuan from the social through private equity funds, which is 3 billion yuan. For the rest, we can provide 1:1 bank financing guarantees for enterprises, which would be 6 billion yuan. Enterprises should have to contribute half of that, right? 12 billion yuan should be enough."

Chen Xuebing clicked his tongue inwardly.

This Secretary Jiang is truly a formidable opponent.

He understands policies, laws, and even finance. The more we talked, the more in-depth and professional he became, to the point that he had to look up economic data about Chongqing everywhere. Now he's simply gone back to school to further his studies.

“Director Jiang,” Chen Xuebing sighed, “Straightening everything up like this will leave you with no friends. According to your logic, of the 120 billion investment, the government will contribute 10 billion, the fund will provide 20 billion in matching funds, and the remaining 30 billion in loans and 60 billion in corporate investments will be off-market and have nothing to do with the GP company. How much effort will you have to put in for this 10 billion? I would like to ask, if I were to do this, how much management fee and how much profit share would you offer?”

There was silence on the other side.

Chen Xuebing frowned and continued to press, "Or are you just treating these non-governmental organizations as mere conduits, without intending to give them a single penny?"

“That’s not what I meant. We will give what we are entitled to.” Secretary Jiang immediately said, “The plan also includes an investment of 500 million to establish a venture capital guidance fund, which will be used to invest in small and medium-sized enterprises related to the industry. This money will also be managed by the GP.”

Chen Xuebing didn't detect any sincerity in those words. The 500 million yuan was also meant to help the government invest in a number of small businesses, and the work was complicated and numerous.

"You're also a deputy division-level cadre, right? You'll be involved in politics in the future. It's not good to always think about things with this kind of calculating mindset. If you need someone to help you, you have to help those below you fight for their interests, especially reasonable interests."
"How about this, you ask District Chief Hong if we can submit a proposal with 30 billion yuan of government funding and a one-to-one financing guarantee. If it is approved, our Changzheng Capital will act as the GP, charging a minimum management fee of 1.5% and a 20% profit share."

"The government's investment of 30 billion is the bottom line. I will be responsible for 10 to 20 billion in matching funds, and we need to secure more than 30 billion in bank loans."

“As long as District Chief Hong agrees, we will help you issue a complete report, including the application for exemption from state-owned share reduction, the preliminary review report of the target company, the financial compliance report, and the subsequent company and industry demonstration. You are only responsible for submitting it to your superiors.”

If the government provides a 30 billion yuan guarantee, financing of 10 to 20 billion yuan should not be a problem.

After spending several days with Secretary Jiang, he provided a number of groundbreaking theories, such as the operation of fund of funds and the leverage effect of fiscal funds. He even helped them propose a sixteen-character basic principle: "government guidance, market operation, scientific decision-making, and risk prevention," demonstrating his considerable professionalism.

This proposal, once submitted, will be something that even ten years from now, your superiors will be able to look back at and find impressive.

He was fortunate enough to come across this opportunity to share his valuable insights on government-guided funds, as keeping them to himself was pointless, so he pulled out most of them at once.

District Chief Xiang Hong proved himself.

This past week, District Chief Hong has probably completed most of his background check.

Now, he finally cards on the table and lays his cards on the table.

I'll take care of this.

This matter requires review at each level, from the district to the city to Beijing. After confirming its feasibility, it also needs to undergo feasibility review by the investing company and key industries, negotiate with the company to determine the conditions, allocate funds, establish the company, and then there is post-investment management, profit generation, and exit channels.

The process from review to investment takes at least a year, post-investment management takes at least two years, and exit also requires some time.

Therefore, he needs to maintain a team, and the team needs to grow larger and larger as the process progresses.

Of course, the investment in BOE's 6th generation line, which generated billions in profits in the past, would only be even higher if he were in charge. Moreover, he could cultivate a vast network of contacts and a team that knew how to deal with the government, gain influence within BOE, and build a lasting reputation afterward.

He was only willing to do it because of such a bright future.

Secretary Jiang hesitated for a moment: "Even if the district head agrees, it may not be finalized. The amount of money involved is too large, and the central government, the city government, and the district government all need to provide matching funds."

Chen Xuebing pondered for a moment, then smiled faintly and said, "Whoever takes the lead is responsible. Besides, if District Chief Hong really takes charge of the city's financial work next, this investment is enough to keep things going for five years. If the district chief takes a position in finance, Chongqing will become a national model for industrial fund work... In life, sometimes winning once is enough. Tell the district chief my exact words, and I believe he will take it seriously."

There was another moment of silence on the other end, but Chen Xuebing heard the sound of someone covering the microphone.

He realized that District Chief Hong was right across from him.

"How big is your team?" Secretary Jiang asked.

During this period of contact between him and Chen Xuebing, it seemed that Chen Xuebing was the only one giving opinions, and there was no sign of a team.

Chen Xuebing grinned: "As long as District Chief Hong agrees, you'll see my deputy and team in a while. They're not available to show up right now."

"It's inconvenient for you to come forward?"

"They're in Hong Kong, participating in a much larger investment," Chen Xuebing said in a pretentious manner.

When Cai Zhijian takes over as president, he will bring several trusted subordinates, which can be considered a financial team. They are currently involved in the later stages of China Construction Bank's Hong Kong stock listing, with the state's net investment alone amounting to 4000 billion yuan, which is of course an even larger investment.

"Okay, I'll get back to you as soon as possible." Secretary Jiang covered the microphone and reported for a long time before finally replying.

Chen Xuebing nodded.

"There's no need to test the waters by adding another 500 million if 1 billion isn't enough. 3 billion is the bottom line for this to be done. As long as the money is in place, I will definitely make sure this semiconductor giant is successfully established."

Secretary Jiang was a little embarrassed: "It's not a test, but the leader went to the city for a meeting last week, so it's going to be difficult."

“The central government’s matching funds are definitely not limited to 500 million yuan. We should strive for more. If the central government allocates a few hundred million yuan more, the city will have more matching funds to match.”

Chen Xuebing succinctly pinpointed the key point.

He ran to the department to collect money.

Secretary Jiang sighed deeply upon hearing this.

"Ok."

He and Chen Xuebing felt like they were evenly matched, both carefully studying each other's work areas, and neither could easily fool the other.

After hanging up the phone, Chen Xuebing began to analyze the information he had gathered.

BOE has not yet joined the LCD alliance formed by TCL, Skyworth, Konka and Changhong, and Sharp has not yet come to Shenzhen to cause trouble.

There are at least six months left.

If we are patient and wait for them to go to Shanghai, and Sharp to catch up with them again, they will be disheartened and it will be easier to negotiate.

But that would have to wait until 07.

Let's not let them suffer double injustice. Domestic substitution should be implemented as soon as possible.

(End of this chapter)