Those Years When I Was Forced to Top the Forbes List

Chapter 185 Preparation before the game
December 12th, Christmas Eve.

New York City 45 was brightly lit.

At this year-end time, the financial sector has no holidays.

For financial institutions, the Spring Festival is not considered the year; the fiscal year is.

中国公司的自然财年是1月1日至12月31日，零售业略有差别，通常是2月1日至1月31日，所以元旦之前，通常也叫会计年关。

At this time, all companies are busy with accounting, summarizing operating results, and looking ahead to the coming year.

Listed companies are especially busy; those who can boast are busy boasting, and those who can't boast are busy burning through their books.

At this time, Changzheng Capital needs to pay attention to the upcoming month of intensive government policies and industry dynamics, identifying fake news from the multitude of messages. There is also another important matter:

Compile your own financial statistics and investment return data, and send them to financial websites and private equity ranking websites that have private equity information, such as Paipai.com, Sina Finance, Eastmoney, and Securities Star, as basic comparison data for participating in various private equity fund rankings in the following year.

Chen Xuebing sat by the floor-to-ceiling window, phone in hand. Looking down from the 45th floor, the crowds waving glow sticks at Jiefangbei looked like twinkling stars.

The Christmas atmosphere here is among the best in Chongqing and even the whole country, with a nearly 20-meter-tall Christmas tree and thousands of people celebrating here.

He really wanted to go down and experience the atmosphere, but he didn't have time.

Chongqing is busy, and so is Shanghai.

"Mr. Chen, 12 points is the result I negotiated with the investment committee. There's no time to delay any longer. Give me a final answer on this funding. If you agree, I'll send someone over immediately. If you don't agree, I'll have to invest elsewhere. Our funds can't be idle for long. The financing plan must be completed before the holiday."

Lu Xiaochun's voice sounded somewhat helpless on the phone.

Chen Xuebing touched his forehead.

Without Xin Mengzhen's involvement in the Chongqing Iron and Steel project, he insisted on a 15% commission. Lu Xiaochun initially refused, but after more than half a month of negotiation, he finally raised the commission from 10% to 12%.

Judging from his tone, it seemed he had pushed him to the limit.

It's time for me to reveal my hand.

"Mr. Lu, actually, I tried to negotiate for this project again, and we were able to get 4500 million shares, which is 1.5% of the shares."

There was a pause on the other end, and their breathing became a little heavy.

"Why didn't you tell me earlier?"

Chen Xuebing smiled but did not answer: "I can actually forgo the commission from this project."

"Don't want it?" There was a moment of silence on the other end, then another question: "What do you want?"

“I have a project, a big project, and I need you to raise funds for me in Shanghai as much as possible,” Chen Xuebing finally revealed his real idea.

Lu Xiaochun immediately realized what was going on.

"You mean that project you're working on with the Chongqing government?"

He initially set his sights on Chen Xuebing after hearing Zhang Yuzhong mention this matter.

However, he was unclear about the specifics of the cooperation. There was no word of it from the outside world. If he had been able to find out more about Chongqing Iron and Steel, he wouldn't have come to Chen Xuebing for help.

“Yes.” Chen Xuebing laughed, “The government will provide 30 billion, the bank will lend 30 billion, and I need to leverage 20 billion.”

"So big? What kind of investment is this?" Lu Xiaochun was a little surprised.

"For listed technology companies, we cannot disclose specific targets at this time. Exit channels include share buybacks and stock market transactions, depending on the company's operating conditions."

Chen Xuebing certainly couldn't tell Lu Xiaochun about this, otherwise if BOE's stock price rose in the future and Lu Xiaochun "happened" to have participated early on, this conversation could be considered a leak of inside information.

Lu Xiaochun understood this, of course, and then asked in another way:
"Have you reached a cooperation agreement with the investee company?"

If it's achieved, there will be some clues, and he might be able to find them.

This question made Chen Xuebing burst into laughter.

This is actually a bit embarrassing to talk about.

Such a big project has been initiated, but so far, Chongqing and Chongqing have not sent any teams to BOE for inspection, let alone reached a cooperation agreement. At present, Chongqing has only sent people to Shenzhen to inquire about BOE's line construction plan.

In this respect, the matter appears to be quite unserious.

The reason is simple: local competition.

Shenzhen is in talks with BOE about the "Julong Plan" and has already reached a cooperation agreement.

However, according to Chen Xuebing's intelligence, Japan and South Korea also sent Sharp to Shenzhen to discuss cooperation, which may lead to the dissolution of the "Julong Project".

After careful consideration, Chongqing knew that this project would be profitable, and potentially very profitable.

The generation of an LCD production line does not represent the level of technological advancement, but it does determine the size of the glass motherboard.

The LCD industry recognizes an economically viable number of cuts of at least six, meaning that one glass substrate must be cut into six or more screens to maximize the production line's economic efficiency.

The higher the generation, the larger the motherboard, the higher the cutting efficiency, and the larger the screen that can be cut.

The mother glass produced on the 6.5 generation line is enormous, measuring approximately 1500mm × 1850mm, and can already be cut into screens of around 40 inches.

These days, the bigger the LCD TV, the more valuable it is. A 70-inch TV can cost as much as 40 yuan. Although the exact cost is unknown, the percentage of screen size is well-documented.

Approximately two-thirds.

The higher the generation, the more control they have over pricing power.

The 6.5-generation production line is unique in China and ranks among the most advanced in the world. Once it goes into production, it will compete with imported products. Its domestic production costs and tariff costs give it a huge competitive advantage. Moreover, due to the long-term monopoly of Japan and South Korea, the price of large screens has been inflated, and the profits are far beyond those of other electronics industries.

However, there's always a "but".

Such a large investment is enough to affect a region and an industry, and its many side effects cannot be ignored.

For example, BOE's Hong Kong stock financing was halted after its talent stock ownership plan was disclosed by the *New J Daily*; its fifth-generation production line, which had been painstakingly funded and put into operation in Beijing, suffered losses due to industry price fluctuations; and Sharp announced that it would invest in building a factory in China for the world's most advanced 7.5-generation line…

A series of factors led Chongqing to consider: let's see how things go first.

While raising funds, we also need to see what Shenzhen's specific attitude is.

Shenzhen is, after all, a national leader in the development of the electronics industry. Many issues will inevitably be discovered during the negotiations. If Shenzhen agrees to all of them, then Chongqing can use the funds it has raised to try and win them over.

This is why the fundraising reached 80 billion yuan, far exceeding Chen Xuebing's original plan of 50 billion yuan.

As long as the project is sound, we can negotiate when the time comes, even if it means offering a higher price.

If any major problems are discovered during the cooperation negotiations in Shenzhen, then the 80 billion yuan will go back to its respective owners. In other words, since the money never even left the country, Chongqing can set up a smaller-scale venture capital guidance fund for small and medium-sized enterprises, and no one will suffer any losses.

Chen Xuebing had no right or position to say anything about this "better to earn less than lose" mentality and the covert competition between local governments, let alone reveal too much about BOE's intentions, otherwise he would lose the trust of the Chongqing government. He could only let things develop, pay attention to the trends, and deal with them as they came. The condition he was discussing with Lu Xiaochun was to increase his say in the matter.

There's interest in investing in Chongqing. BOE knows a little about it, but definitely not much.

It was even less likely that Chen Xuebing would reveal this information to Lu Xiaochun.

"Mr. Lu, I can't talk about the project right now. I just need you to agree to one condition: once things are clear, you have to help me raise more than 500 million yuan in private funds in Shanghai."

"this!"

Lu Xiaochun was speechless: "How can I help you raise the money if you don't tell me your conditions?"

He does know many investors who have the means, but their money isn't so easy to obtain. If it were, he would have already transferred it to his own fund.

Chen Xuebing smiled.

How could he dare to ask for something without something to offer?
"Of course, the conditions are there. We can sign a principal protection agreement and not charge management fees, but the profit sharing ratio will be a little lower than the market rate, at 60%."

This condition made Lu Xiaochun click her tongue in disapproval.

Principal protection agreement
These private equity firms are really daring.

"Mr. Chen, you dare to sign a principal protection agreement for such a big project? This isn't something you can just sign on a whim! You need to have a security deposit in your account, at least 10.15%!"

He certainly knew about the principal protection agreement, which usually leverages one to ten, but since this was an equity investment or a physical investment, it would be difficult to withdraw if problems arose, so the proportion of the guaranteed funds would definitely need to be increased.

"Hehe, no problem. We are a private equity fund, so there won't be any issues with the procedures. The funds can be supervised by a third-party institution that investors can trust, so Mr. Lu can rest assured."

Chen Xuebing took advantage of the current relaxed regulations and the lack of restrictions on private equity firms signing guaranteed returns, making good use of this loophole.

His quick agreement made Lu Xiaochun sigh again.

This is why public funds all want to go private.

Decision-making is flexible, even bold.

Public funds don't even dare to mention this. Many large investors are reluctant to discuss it and prefer to invest in private funds, which is one of the root causes.

The public fund managers are filled with envy and resentment when it comes to this kind of thing. Whenever investors ask, their uniform answer is, "These small institutions are not regulated. Even if an agreement is signed, it is difficult to implement. If there are real losses, no one can take responsibility."

The concept of "sunshine private equity," which emerged just last year, has once again contradicted their statements.

They have transparent regulations, are more flexible in decision-making, and impose bolder conditions.

They now have people to vouch for them.

Lu Xiaochun was facing the owner of such a private equity firm.

He couldn't help but chuckle with a hint of envy: "Mr. Chen, you're quite confident to make such a bold claim. The market's been doing well lately. How much have you made?"

Chen Xuebing chuckled: "Our profit this month is currently around 20%. After New Year's Day, Mr. Lu will be able to see our data for just over ten yuan."

The published data is available on those financial and securities websites, but you have to pay to subscribe.

This is also the difference between public and private funds. The mystery of private funds lies in that little bit of subjective initiative and a small entry fee.

Lu Xiaochun gasped.

One month, 20%.

And this month isn't even over yet!
There's still a whole trading week left, from the 26th to the 30th!

The young man's importance in his heart grew with each interaction, and he even became somewhat mysterious.

"Mr. Chen, we're friends now, how about we share some resources and exchange what we have?" Lu Xiaochun's tone became more friendly.

"We didn't have many resources. The market rose by 10% across the board. We just picked a lot of good stocks, which yielded slightly higher returns than beta. Also, that shady approach you mentioned last time was ripped off by my funds that were lying in wait at OCT."

Chen Xuebing intentionally revealed a hint, then laughed and said, "I'm always good to my friends, but I'm never polite to people who might be hostile towards me, even if it means mutual destruction."

He's now big enough to say that.

Such is the position of flexible market makers in the stock market. They may not necessarily make money, but once you enter the area they have set up, they have a million ways to make you lose money.

After he finished speaking, he revealed another target: "000046, a market capitalization of 20 billion, with not many shares in circulation. Do your own research and don't invest too much, or don't blame me for not notifying you when I leave."

000046, the newly renamed Oceanwide Construction, is poised for a remarkable future, leading the real estate market for two full years, with its share price increasing more than 20 times from less than 3 yuan.

Lu Xiaochun didn't expect the other party to be so direct, and for a moment she didn't know what to say. She was a little suspicious, but she couldn't find any reason why the other party would try to trick her.

"Thank you, I'll take a look."

"When you've made money and want to exit the market, it's best to ask me first. Missing out is even more painful than losing money."

Chen Xuebing used a calculated scheme.

If Oceanwide Holdings surges, Lu Xiaochun will definitely come to ask him about it, regardless of whether he has already bought in or not.

Control over interests is undoubtedly the deepest and strongest bond.

Although Lu Xiaochun didn't think Chen Xuebing's casual remark was any major news, she still cautiously tried to get closer to him.

"How are things between you and Xiao Xin? I've been keeping an eye on things for you lately. She's been spending all her time in the office, and she's taking less time off for school matters... In terms of work, she's making rapid progress. There's a research visit to a listed company recently, and I'm planning to arrange for her to go with our CRA (Chief Analyst) to ask questions on-site."

He wanted to express his willingness to mentor Xin Mengzhen.

Chen Xuebing smiled but didn't respond. He simply said, "President Lu's capital is indeed large. With so many equity investments across multiple lines, including primary and secondary businesses, I really want to know, with such a wide range of investments, won't it lead to a lack of professionalism? Haven't some of the major investors raised any objections?"

He didn't actually want Lu Xiaochun to take too much care of Xin Mengzhen right now; he even wanted Xin Mengzhen to be subjected to some difficulties so that she would inevitably come to him for help.

But since Xin Mengzhen's grandfather is an investor, it's unlikely that she will face any difficulties.

It's just my emotions getting the better of me; I'm just venting.

"Our definition is to focus on internal growth of the enterprise. The core is to increase the market share of the product. Whether it is primary (equity investment), primary and secondary market (internal share issuance) or secondary market, it is just a form of investment. As long as we make money, that's fine."

As Lu Xiaochun was speaking, there was the sound of a door opening, followed by laughter a few seconds later.

"You're absolutely right, Xiao Xin is working overtime in the office, right next to me. It's Christmas Eve today, do you want to say a few words to her?"

Chen Xuebing wanted to curse.

Why is this guy so persistent? Things are already bad between me and Xin Mengzhen, didn't I make that clear earlier?
But realizing that Xin Mengzhen might be able to hear him, he couldn't bring himself to curse.

"If she's busy with work, could you please send her an apple for me? I don't like Western holidays, but I like the symbolism of apples—peace and safety year after year."

There was a long silence on the other end.

"Thanks, you too."

It's Xin Mengzhen's voice.

Chen Xuebing wanted to say something, but he couldn't find the words.

We haven't been in touch for a long time, and our lives have become disconnected.

When Xin Mengzhen heard that he wasn't speaking, she took the initiative to smile and start a conversation: "What are you doing?"

Chen Xuebing finally couldn't help but feel a little aggrieved and chuckled, "I'm busy with some things we can't talk about."

"You." Xin Mengzhen's temper flared up as well.

Neither of them spoke. Lu Xiaochun finally realized she had misjudged the situation. She took the phone and laughed somewhat awkwardly:

"Hey, you two, fighting in bed... If there are any conflicts between you, just talk them out."

Lu Xiaochun had barely finished speaking when Chen Xuebing abruptly hung up.

I wouldn't dare hang up on her, so why wouldn't I dare hang up on you?
(End of this chapter)