Those Years When I Was Forced to Top the Forbes List

Chapter 190 Project Failure?

January has arrived in the blink of an eye.

Financially speaking, we have officially entered 2006.

The first week after New Year's Day was a stock market frenzy.

Starting from the 9th, within five trading days, it surged from 1160 to the previous peak of 1220 in mid-September, entering a new high.

Theoretically speaking, most stock market investors who entered the market within a year should break even.

Daily transaction volume approached 150 billion, nearly three times that of the same period last month.

The stock market has come alive.

The total market capitalization surged from 3.2 trillion at the end of December to 3.6 trillion, an increase of nearly 400 billion!
Moreover, this was not the result of a sharp rise in heavyweight stocks, but rather a broad-based rally from the bottom, with the financial and real estate sectors benefiting significantly.

After a long period of strategic positioning, Changzheng Capital has finally reaped substantial rewards, with 90% of its stock holdings rising, outperforming the market by several percentage points. The company's paper wealth has reached 2.3 million yuan, and after deducting the cost of 1.66 million yuan, the profit is 6400 million yuan!
Chen Xuebing had known this would happen, but he never expected it to turn out this way.

Knowing about a bull market and having a fund with over 200 million yuan invested watching it soar are completely different feelings.

Every day, as he watches the stock market, he has a Sun Honglei leaning against the wall shouting in his mind:

"Too cruel!"

He calmed himself down amidst his busy schedule, allowing Changzheng Capital to stabilize its emotions and gradually seek out low-priced, heavily invested 4000 million yuan in Oceanwide Construction.

If Oceanwide Holdings weren't currently too small, and he wasn't worried that large-scale transactions would affect its future performance, he would have liked to invest everything.

The reason why his more than 200 million yuan is still spread across so many baskets for day trading and making small profits, instead of betting it all on the two big winners, Suning and Oceanwide, is this.

No matter how much a stock rises, someone has to buy it.

Once the position exceeds the short-term liquidity of the stock, the price may rise too much when buying, causing existing trapped investors and major shareholders to sell off in large quantities. When selling, the price may plummet, with no one willing to buy, resulting in several consecutive limit-down days.

With such a large amount of capital, even a single entry or exit operation requires a week or even more than ten days to be carried out in batches, during which there are countless risks.

Currently, there is no quantitative trading or short selling. Otherwise, those automated computer trading funds would be able to keenly detect the entry and exit of large funds. Once they determine the intention of funds to enter or leave the market, they would follow the large funds in high-frequency buying and selling, engaging in rampant arbitrage, like maggots clinging to bones.

Of course, if it's a super-capacity stock like Moutai that can accommodate dozens or even hundreds of institutions operating at the same time, then there's not much of a problem; the inflow and outflow of a few hundred million is so small as to be invisible.

Therefore, although Moutai has never been the strongest investment target at any time, and has been steadily rising in waves, it is still highly regarded by many institutions.

Even if you're omniscient and omnipotent, you can't earn 1.1 billion from a market worth 1 billion. Only by consistently placing yourself in a larger market will you have more unexpected opportunities.

Chen Xuebing's experience in the stock market in his previous life led him to explore and come into contact with more large-scale markets.

On January 12th, in the morning, a huge trading platform opened.

……

"District Chief!"

Chen Xuebing walked across People's Square and raised his hand to greet them.

The municipal government building behind District Chief Hong and Secretary Jiang is not impressive, falling short of the scale of the People's Congress building, which is also one of the four major government bodies, or even the JB District Government building, but this does not diminish the imposing power it exudes.

Why did you come alone?

Hong Tianyun shook hands with him, but his expression was not as cheerful as Chen Xuebing's.

Chen Xuebing paused for a moment.

"what happened?"

Hong Tianyun clicked his tongue, hesitated for a moment, and then shook his head.

"If you have any complaints about the city's attitude, try not to speak at the meeting. Let's talk privately, and I will do my best to help you."

Chen Xuebing's heart sank.

The meeting was chaired by Leader Huang.

Upon hearing this, he understood that they were really going to let Chongqing Capital in.

“Even if Leader Huang is in charge, he can’t show favoritism, can he?” Chen Xuebing chuckled, trying to sound relaxed.

"The Standing Committee has already held three meetings. Such a big matter will attract the attention of leaders from all sides. The government's industrial guidance fund is officially being prepared, and the fund uses the name you chose. You have left a significant mark on Chongqing's development. I'll talk about the specifics later."

Hong Tianyun patted his arm and led him into the building.

Secretary Jiang exchanged a glance with him, her expression slightly troubled, conveying a subtle yet unspoken reminder.

He confidently told Chen Xuebing that Yufu Capital wouldn't come, but they did anyway, which made him a little embarrassed.

Chen Xuebing nodded, indicating that he understood.

Murphy's Time.

Fortunately, he was mentally prepared enough.

As for whether or not to speak, let's try to avoid conflict if possible.

As soon as he entered the building, Hong Tianyun, who was walking ahead, encountered two people and looked slightly surprised.

"County Chief Zhou? You're here for the meeting too?"

"District Chief Hong!" The middle-aged man with glasses from the other man came over and shook hands warmly. "Yes, the leaders notified us to come here, saying there are funding policies! I brought General Manager You from Maotian here specifically to take a look!"

Chen Xuebing, who was deep in thought, was stunned when he heard this.

Yu Xingmao?
Chairman of Maotian Group.

The Maotian Cement Plant in Pengshui belongs to him.

So this County Chief Zhou... the county chief of Pengshui is surnamed Zhou.

Chen Xuebing frowned.

Funding policy?

Still wondering, Hong Tianyun asked on his behalf, "Funding policy? Has it been finalized by Leader Huang?"

While both questions remained unanswered, Hong Tianyun clearly knew the answers.

"I don't know about that." County Chief Zhou shook his head and smiled. "The city's policy is like rain from the sky; we can only collect as much as it falls. If it's not enough, we can only set up an altar and keep praying for rain. Hongqu, you'll have to put in a good word for us later. People from 18 counties have come. Pengshui is the driest place, and we desperately need this timely rain. The county's cement plant is waiting for the money to start construction!"

Hong Tianyun nodded without any expression, but Chen Xuebing could see that he clenched his fist tightly behind his back.

His heart tightened, and he guessed what was going on.

Damn it.

This time, it's not just that the government partner has changed, it's that the entire project has changed.

Aside from the districts, Chongqing has fourteen ordinary counties and four autonomous counties, so all eighteen counties came to pray for rain.

Just by looking at that cement plant in Maotian, you can see the whole picture. Isn't that a project that's practically doomed to fail?

How much worse can the projects brought by other counties be?

…But judging from the tone of his voice, this matter is not yet confirmed.

I'll have to find an opportunity to talk about it when I go upstairs later.

Chen Xuebing was filled with gloom. Hong Tianyun's project, which had originally been the top choice, had now become a matter of dividing up the spoils, so he was naturally in a bad mood. He didn't exchange more than a few pleasantries with County Chief Zhou before leading the way upstairs.

……

At 9:20 a.m., the "Athletes' March" was playing in the venue, which was about 200 square meters in size.

It's the song that middle school students use when they're assembling for their morning exercises. Hearing this song made Chen Xuebing even more uncomfortable.

My stomach hurts, and I'd like to ask for leave to go to the cafeteria.

His seat was quite close to the front, next to District Chief Hong, and behind him were a group of county leaders, making it difficult to even make a small move.

All I could do was gaze at the podium.

The meeting room is classroom-style, with a stage at the top and a microphone, and eight rows and ten columns of seats below, totaling 80 seats.

The function is very clear.

This kind of meeting room is clearly not for discussion; the speaker controls everything, and the audience can only passively wait to be asked questions before they can speak.

The two signs next to Leader Huang's nameplate also indicate that there is indeed no intention to encourage others to speak today.

One is Cui Jian, Deputy Secretary-General of the Municipal Government and Director of the Financial Office, and the other is He Zhiya, an official of Chongqing Capital Party and Chairman of the Board.

They are all at the same level as District Chief Hong.

Leader Huang is a member of the Standing Committee. These two are sitting next to him. If he doesn't speak, no one, not only those offstage but also those onstage, can say anything.

A meeting can reveal a person's style; there wasn't even a supporting person on stage. This person is probably quite assertive.

However, it was very punctual.

Just as the music turned off at 9:30, the three of them came in.

Leader Huang sat down, smoothing his hair which had been styled for supporting the east from the west, and glanced around the meeting room.

Chen Xuebing's youth didn't seem to bother him; his unfriendly gaze swept over him, searching for something, as if he wanted to settle scores with someone.

"Qijiang, has Qijiang arrived yet?" Leader Huang tapped the table.

"They're here!" Two people stood up.

Then Leader Huang began to criticize: "Your Yuhua Asset Management Company, you're doing a great job! You only have one investment company, yet you've participated in more than 20 bidding processes for civil engineering and building construction projects. With so much money, are you running a financial management company or an urban investment project company? If you can't draw a tiger, at least draw a leopard or a cat! Why did you have to draw a dog?"

It was quiet.

"Leader Huang, we can only invest in state-owned assets within a limited scope, and we are very cautious in our investigations..."

"This is not how you run an asset management platform! Sit down, sit down!"

Leader Huang frowned, waved his hand, and then cut to the chase:
"I'm here today to show you how to support businesses through financing platforms!"

"This time, the central government has given us great hope, but also great pressure: the industry guidance fund!"

"We've asked each of you to bring a project from your region that is most in need of support and has the greatest potential for return. We're using this opportunity to plant a seed for you!"

"but!"

"The city will inspect the projects you bring, and you yourselves also need to work hard. I know you are all short of funds, but once the initial funding arrives, the lifeblood will be there! For projects that pass the fund's inspection, the city will provide half of the required funding, and you need to take the terms and conditions to the bank to make up the remaining half! Once the negotiations are successful, Yufu Capital will then invest! Don't even think about cheating or shirking your responsibilities; Yufu Capital will be involved in the entire process!"

These words, spoken with certainty, resonated throughout the entire venue.

Chen Xuebing breathed a sigh of relief.

Too strong.

This is hardly a discussion.

There was absolutely no discussion process.

Isn't this a notification?
It was arranged directly, and Chongqing Capital will handle the operation.

For a moment, his heart sank.

All that hard work ultimately led to a story of begging for alms.

He came up with the plan, submitted it, the funding was approved, but then they changed the intended use of the funds.

But since they were so determined, they were definitely willing to take the blame, so he couldn't say anything.

After all, it's government money.

Moreover, the investment plan is double-insured; the bank will conduct another review of the investee company's financial situation before lending out the remaining half.

The project was proposed by lower levels, so it's unlikely there was any ulterior motive involved.

If this was the case, what was the point of District Chief Hong inviting him to the meeting? Was he just there to feel awkward?
"Manager Huang, how long will the review take?"

Someone stood up and asked a question.

Leader Huang gestured with his hand: "Didn't I tell you to take a week off before you came? These next few days will be filled with meetings, we'll bring out the projects, everyone can listen, we'll have open discussions, and if you think there are any problems with other people's projects, bring them up on the spot, so you won't say I'm biased afterward! This industrial support is for districts and counties outside the city, and you are all county leaders. You might be transferred to other places in the future, so getting to know the key enterprises in other counties will be beneficial for your future job rotations!"

So that's what the discussion was about.

Chen Xuebing and Hong Tianyun exchanged a glance, both seeing helplessness in each other's eyes.

However, Hong Tianyun clearly knew in advance, and nodded slightly to him, giving him a look: Don't be impatient.

Chen Xuebing could only sit quietly and listen to the discussion.

"The establishment of this fund project."

At this moment, Leader Huang changed the subject and looked at Hong Tianyun: "You should also thank the comrades in Yuzhong for their efforts. It was through their unremitting efforts and with the strong support of the Municipal Party Committee and the Municipal Government that this project was successfully implemented, creating opportunities for everyone."

"but……"

"I was away for a while, but after I came back, I studied that plan carefully. Given the current financial situation of the municipal government, it is not suitable to borrow such a large sum of money from the bank to carry out such a large project."

"It's better to use it wisely."

“There are tasks every year. This year, our key task is to reduce the debt-to-asset ratio of enterprises. Previously, our Yufu Capital Management Platform helped some key enterprises in the city handle 170 billion yuan of debt. We haven’t taken care of the enterprises in the counties yet. We can use this fund to help 18 counties solve their problems. I have already contacted the comrades of the Development and Reform Commission and obtained their understanding.”

"Comrade Tianyun, you must understand."

These words can be considered a public compliment and consolation from higher authorities.

Expressing dissent at this point would be a sign of political immaturity, so Hong Tianyun could only nod calmly.
“I understand. But Mr. Chen from Gu'an Group has made many contributions to the establishment of the fund, and he has a thorough understanding of government-guided funds. How about... letting them participate in the management and be responsible for a portion of the investments?”

Upon hearing this, the three people on the stage immediately looked over.

All three individuals are deeply intertwined with the development of Yufu Capital.

Leader Huang spearheaded the establishment of Yufu Capital, and Deputy Secretary-General Cui Jian was responsible for raising the first 1 billion yuan in capital for Yufu Capital. Not to mention Yufu's chairman, He Zhiya.

This money represents another source of capital for Yufu, which will undoubtedly help Yufu achieve greater development and influence.

Who are these young people in the audience who are trying to hunt tigers?
Chen Xuebing really wanted to stand up and say forget it.

If he doesn't invest in BOE, his actions are meaningless. Without bank funding, there's no private financing, and billions of yuan will shrink by more than half. The management fees or profits are negligible to him.

For him, the project's first misstep meant it had already failed.

He knew, however, that District Chief Hong probably didn't make this suggestion for him.

With some funds in his hands, he can provide reasonable compensation and preferential treatment to Yuzhong District.

If he wanted to maintain his relationship with District Chief Hong, he shouldn't argue at this moment and could only keep quiet.

Leader Huang quickly grasped District Chief Hong's meaning, pondered for a moment, and nodded, saying:

"The meeting will last for a few more days. Let's discuss it and talk about it later."

(End of this chapter)