Those Years When I Was Forced to Top the Forbes List

Chapter 222: Adapt to changing circumstances
On March 16, Chen Xuebing signed a contract at the municipal government office to purchase a 33.25 billion yuan corporate debt package.

On March 17, a huge sum of 750 million yuan was collected from three banks and entered the syndicate's agent, the China Development Bank. It was then split into two payments: 400 million yuan was deposited into the Chongqing government account entrusted by Gu'an Group, and 350 million yuan was deposited into Gu'an Group's account.

Despite the remarkable returns from Changzheng Capital, staff from the China Development Bank still called after the loans were issued, repeating the same issues that the China Banking Regulatory Commission had stipulated in 97 and repeatedly emphasized over the past few years.

I. Credit funds are strictly prohibited from flowing into the stock market.

Second, funds must be used for legitimate business purposes, and the destination of funds must be declared after the funds are transferred out of the loan account.

Otherwise, the bank has the right to recall the loan in advance.

If it were any other bank, it would be a simple matter of treating the bank's leaders to a meal and handing them a credit card. However, the China Development Bank, which spearheaded this effort, is a policy bank and provided an overall interest rate subsidy for this five-year loan, resulting in an annual interest rate of only 5.20%. The restrictions on the use of funds can be said to be strictly enforced.

It's important to know that commercial loan interest rates can easily reach seven or eight percent, and even ten percent is common. Interest rates are not fixed and depend on the individual.

The benchmark interest rate is adjusted based on the inflation index.

In the early years when inflation was high, the developer of Chongqing Metro Central Garden even took out a bank loan of 1.64 million yuan with an interest rate of 15%, which led to bankruptcy and the project being abandoned.

Under strict control policies, Chen Xuebing did not intend to risk engaging in shady operations. The government's 400 million yuan was irrecoverable, and if the 750 million yuan were withdrawn ahead of schedule, it would be a catastrophe for Gu An.

He recalculated the accounts under the calligraphy plaque that had just been hung in his office, which read "Adaptability to Circumstances," and then transferred the two long-promised payments.

The loan of 816 million yuan was deposited into Chen Xuebing's account and then transferred to Li Xueling. (16 yuan in late fees)

Singularity Technology, considering the pressure of paying the deposit for the supply contract, directly transferred 100 million yuan.

Henggang Building is celebrating the Chinese New Year.

On the second floor, YY Inc., and on the third floor, Singularity Technology Inc., the atmosphere was electric, with everyone shouting "Long live!"

In addition, 600 million yuan was transferred to Gu'an Labor Services for the acquisition of a qualified company, and 500 million yuan was transferred to Changzheng Capital for daily expenses.

Although Changzheng Capital has been profitable during this period, it has not actually received any new funds. Salaries and expenses are all transferred from the group's account.

From this point on, the finances of each subsidiary became officially independent.

Group account balance: 230962233.41.

On Monday, March 20, Changzheng Capital dispatched three traders to the Yuzhong Ruitian Road branch of Southwest Securities to conduct a mysterious transaction.

Friday, January 3th.

New York 45, Long March Capital welcomes distinguished guests.

"Three hundred million! Hahahaha!"

"I never dreamed I'd make so much money in less than five months!"

"It earns more than my hotel!"

"Old Liu heard yesterday that I was coming to a meeting and insisted that I bring him along! Little Chen, I know you don't like him! I'm not bringing him! Haha!"

As investors entered the hall, laughter erupted from those who had profited.

Hong Yongqiang glanced around the hall and hissed.

"You have more people now! At least ten more workstations!"

Upon hearing this, Chen Xuebing chuckled and said, "I'm starting to wonder if this is my company or yours. You have such a sharp eye. We've just added ten workstations, all for researchers. We're now getting involved in physical business and starting to add research positions, but the educational requirements are quite high, so we haven't filled all the positions yet."

The newly recruited people are not actually investment researchers. Their current job is to conduct on-site inspections of those 127 companies. With 33 billion yuan in debt, it's impossible to just leave it there unattended.

We're now conducting preliminary investigations and undercover visits to identify those with bad attitudes, those who are glib and refuse to pay even when they have the money, and then assign a few debt collection companies to "take good care" of them.

Leader Huang is certainly aware of some common practices in the private sector. In fact, during our conversation, he even asked him if his engineering company had ever failed to receive payment or had tried to collect debts from others.

The implied meaning is quite clear: handing over this debt to a local company is, in fact, also based on this consideration.

As for those who want to repay but cannot, we will consider interest-free periods and debt reductions. If all else fails, we will take them all to court and file a lawsuit together.

The next step is to unify the thinking of those companies that want to repay and have hope of repayment, integrate resources, and provide support.

Collecting this debt will be a lengthy process.

In fact, Leader Huang found the right person for this matter. At least Chen Xuebing was quite professional in the initial process, and even personally handled it.

Upon hearing that the company hadn't filled its staff, several investors nearby immediately asked:

"What are the salary and benefits like? Can we recommend someone to apply?"

Chen Xuebing dared to speak his mind and answered: "The financial industry certainly offers high salaries, and our salaries even exceed the industry standard. However, we only accept those who are not from 985 economics majors, but must be direct descendants of investors with more than 1000 million yuan, and they must have a bachelor's degree."

Many investors with children of school age are tempted.

If economics is difficult at a 985 university, what's so difficult about undergraduate studies?

Even if you donate, you can still donate one!
They're so rich, they can even donate a 985 university degree!
"Mr. Chen, could you elaborate on the child's compensation?"

"Just consult with our General Manager Lu!"

After everyone sat down at the large round table, Chen Xuebing smiled and got down to business:

"Just now, Mr. Jiang said I didn't like Mr. Liu. There's nothing wrong with that. It's just that he broke his promise when it came to investing. We're not forcing anyone to invest! They're all my uncles and aunts, old friends of my uncle and Uncle Hong. If you really want to come, I still welcome you. But this is just this once. In the future, our products will be more profitable, and we'll launch new investment products. You know, the larger the amount of money in the stock market, the more conspicuous it is. Next time, we'll have to limit the amount of product number three."

Upon hearing this, a female investor who had come through a brokerage firm clicked her tongue and stood up: "Mr. Chen! We're all clients, so please don't show favoritism! My name is Jiang Yan, you can just call me Sister Jiang! Our beauty company is located in Jiefangbei, so please give us priority if you have any good products! I invested 150 million last time, and this time I'm going to invest 200 million! As long as you help me make money, your future wife—you're not married yet, right?—your girlfriend! Bring her to my shop for a free beauty spa! I guarantee she'll stay young forever!"

As the woman spoke, she walked over to Chen Xuebing, handed him a business card, and patted his shoulder, whispering with a smile, "If you don't have a girlfriend, I can introduce you! I have a regular client, a real beauty. She's even a celebrity from Chongqing!"

Now, given Chen Xuebing's level, his young age, and his status as a wealthy man, people think that only celebrities are worthy of him.

When other investors saw Jiang Yan approaching, they all pulled out their business cards, and some even took out VIP cards from their own businesses to give to her, trying to get closer to the "Goddess of Wealth."

Chongqing is a place where people like to do business together. A group of friends invest in each other. These bosses who can put up millions of spare money to invest have a lot of businesses under their names. Some are shareholders of more than a dozen stores, including restaurants, bathhouses, hotels, KTVs, and some even run flower shops. If all the VIP cards he has collected recently were bundled together, it would almost become a one-stop card for Chongqing's nightlife.

However, Chen Xuebing did not pursue a life of modest wealth and comfort; he wanted to accomplish something great, seeking both the realization of the meaning of life and the satisfaction of social standing.

Wherever he went, he was greeted by several bosses and respected by a circle of people. This was a small scene, incomparable to the grand scene of national media attention when signing a contract with BOE. But Chen Xuebing was still very happy to accept this honor.

Everyone was trying to build rapport, but Hong Yongqiang and Yu Chunyin were sitting still, arms clasped together.

If it's Chen Xuebing's foundation, is there anything that they can't invest in?
"Xuebing, I heard you also started a TMT fund? Is that fund worthwhile? I have two friends who want to invest some."

Hong Yongqiang asked.

Chen Xuebing then stood up, gestured for everyone to sit down quietly.

"The TMT fund is quite large. Some of you may have seen the reports. It's a project we're working on with the Hefei government. The fund size is 800 million yuan. You might think that projects with government support are safe and reliable. But since you're all long-term clients here, I'll be frank: the returns aren't high. We'll exit the project after a year and take a portion of the profits. What you'll get will likely be even less, maybe double the return at most. The short-term returns might not even be as good as Fund No. 1 and Fund No. 2."

In fact, the long-term returns of this fund will not be low, because the fund has a five-year term. After exiting BOE in one year, Chen Xuebing plans to use the money to participate in PE investment, that is, to directly invest in the IPO and pre-IPO projects of companies.

As a reborn individual, how could he not know which projects would succeed? It's pure cheating, a sure way to make money.

The bull market ended completely after a year and a half, and the market continued to fall until 2009 before the next round of recovery began.

Therefore, in the long run, the returns from TMT are higher.

However, because this fund deals with large projects rather than stocks, after meeting Xu Xiang, he increasingly felt that large projects tend to release too much bloodshed, and with a large fund size, operations become cumbersome, and any information released would become a disadvantage. He did not want too many investors to participate.

This fund will not release information to investors at any time; information will be released with a delay, and the operation will be semi-closed. Investors must have a certain level of professional investment awareness and be understanding.

From this perspective, investors in Shanghai are more likely to accept it.

However, this sounds a bit like Versailles to everyone.

"Double the price!" Many people's eyes lit up.

Doubling in a year, isn't that enough?
That's a lot!
"Listen to me, everyone." Chen Xuebing pointed to a form on the table and said, "The market is looking good. The second half of this year and next year will be the peak of corporate share reform. A 100% return is definitely not our limit. This is the best time to invest in the stock market. As for the dividend distribution of Fund No. 1, considering that funds need to be ranked and compound interest returns are higher, we will not force dividend distribution. Our profits will not be withdrawn. But since we have promised everyone dividends, investors who want to withdraw cash can just sign the form. We will open up dividend rights once a quarter. After the statistics are completed, we will operate the stock to cash out, and the funds will be in your accounts within ten days."

The fund has lost some money, but the return rate is still calculated based on the principal. Compared with other fully closed funds that are one or two years old, this is definitely a disadvantage.

Since the entire stock security fund is not short of money for the time being, and dividends have become a non-essential option, Chen Xuebing plans to continue to keep the funds in Fund No. 1 and try to improve the ranking.

"Fund No. 2 will open for fundraising starting today, but we do not plan to invest any more margin. The return conditions are the same: principal is guaranteed, there are no management fees, and we will take 40% of the profits. Overall, it offers fewer choices than Fund No. 1. The operation is also handled by the same two fund managers, Xu Jin and Liu Zengcheng. Moreover, future products will be managed according to the normal one-year open-ended system for funds, so there is no need for those who want to withdraw funds from Fund No. 1 to invest in Fund No. 2."

This condition didn't offer any choice at all.

The key point is that the dividend is distributed once every three months, which is much more flexible than the second fund.

".That?"

Several investors immediately decided: "Let's not withdraw it then, we'll talk about it next time we get dividends!" The majority of people quickly reached a consensus.

Since Fund No. 1 has special privileges, why withdraw any more funds? Let's leave it for the next group!
However, there was another investor present who was quite resolute in his stance.

"Mr. Chen, our department has submitted a report to the head office regarding the receipt of dividends. We need to take this money back."

Manager Jiang from the Financial Markets Department of China Everbright Bank signed the form.

Several investors who were waiting for funds saw that someone was taking the lead and also signed the papers.

There are a few more, but I'm still hesitant.

Chen Xuebing chuckled: "Those who want to sign can sign. Let's see what I do. If anyone needs money, we support you to take the dividends to avoid cash flow problems. Except for General Manager Hong and General Manager Yu, who signed non-guaranteed dividends and take 70% of the profits, everyone else will get 60%, which is 37.87% of the principal."

Upon hearing this, Hong Yongqiang immediately found a calculator and started doing the calculations.

He was calculating and laughing at the same time.

"So Lao Yu and I can get 44.18%, right? 4418 is a lucky number! Before the opening, I gave you 500 million, and you made me 570 million. Then I invested 800 million, and you made me another 200 million! After the opening, it was 1000 million, and now it's 1441 million! Tsk tsk, in less than a year, 500 million has become 1641 million! The money you've made for me is more than I've saved in half my life!"

Hong Yongqiang's elaborate scheme, which didn't hesitate to expose his wealth, made everyone else's eyes turn green with envy.

That old Hong is so hateful!
Chen Xuebing chuckled and said, "Uncle Hong, is that all you have? You must have forgotten the 300 million you borrowed from my uncle to buy the land, right? Let me tell you, that land is worth at least 600 million now. You should quickly sue my uncle and get that land back. In two years, I'll get it back for 1200 million, and you can invest it in a fund. With compound interest, you might become a billionaire in a few years."

Yu Chunyin rolled her eyes at him.

However, this back-and-forth was quite effective. Two people who had signed off crossed out their names, saying they wouldn't collect their share for the time being and would see in the next round.

Those who had hesitated also became resolute.

Manager Jiang had made prior arrangements and wouldn't be affected by these words.

"Mr. Chen, of the 3 million yuan we invested in Everbright Sunshine Wealth Management Plan B last time, your Changzheng Capital had the highest return. We also plan to invest 5000 million yuan in your second fund. However, could you please reconsider the margin issue? You know that for our bank, the safety of funds is our top priority."

With the bank's mention, other investors perked up, since some had invested too little last time and were planning to participate in Fund II as well.

Chen Xuebing put his hands behind his back and smiled faintly: "Would Everbright require the manager to pay a margin for every investment in its wealth management products? Moreover, if you insist on cooperating with CITIC for this investment, then there is probably no point in discussing it. The cooperation between CITIC and us is officially terminated today, including the third-party supervision of Product No. 1, which we also plan to have Southwest Securities take over."

The surroundings suddenly became quiet.

All eyes turned to Wen Jinghui, the deputy general manager of CITIC Securities Department, who had just been all smiles.

As Changzheng Capital's capital grows, the commissions from cooperating securities firms and third-party regulators increase, which naturally pleases him.

But how did it happen so quickly?
Wen Jinghui asked in astonishment, "President Chen, we've been working together perfectly well, what... what do you mean by this?"

"Mr. Wen, it's not directed at you personally." Chen Xuebing said earnestly, "Someone at CITIC leaked information about my fund movements. On the day of the opening, someone tried to cause trouble with my Baosteel Securities investment data. You all saw that, right? I tolerated it then, but now there are counterparties in the stock market monitoring me in real time through you. How can we cooperate now?"

"That wasn't us!" Wen Jinghui said firmly. "President Chen, you can trust me! I know you value confidentiality. I've repeatedly emphasized this in the sales department: your information is handled by designated personnel, and there's absolutely no way it could be leaked!"

"I didn't say it was you, I said all of you," Chen Xuebing pointed upwards, then walked to his side and whispered a name.

“I know this is your superior, and there’s nothing you can do about it, but there’s nothing I can do either. Ask my investors if they can accept the risk.”

Upon hearing that name, Wen Jinghui's expression froze, and he fell silent.

Immediately, the investors' attitudes were unified.

"Then let's change it! Information security must be guaranteed!"

"How could a large listed company like CITIC do something like this!"

Seeing this, Manager Jiang from Everbright Securities also expressed his opinion: "In that case, let's switch. However, Southwest Securities is not doing well recently. Is their business reliable?"

Chen Xuebing smiled and waved towards the cubicle office inside.

Two people came out from inside.

Manager Jiang recognized the person who had arrived and looked a little embarrassed: "General Manager Wu."

Wu Jian, general manager of Southwest Securities, said with a forced smile: "Xiao Jiang, it's not good for you at Everbright to talk bad about us behind our backs!"

Wu Jian is a veteran in the securities industry. Banks and securities firms have always had a cooperative relationship. When Southwest Securities was doing well, it directly liaised with senior management of Everbright Securities. This accusation is being directly pinned on Everbright Securities, and the tone is quite harsh.

Manager Jiang immediately replied, "No, that's not what I meant!"

Chen Xuebing then introduced to another person: "Southwest Securities is about to be restructured, and we are very optimistic about it. This is Yang Yusong, the manager sent by Yufu Capital to Southwest Securities to participate in the restructuring. Chairman He of Yufu Capital has assured me that he will give priority to ensuring the smooth operation of our trading channels, guaranteeing absolute security, and ensuring that the contents of the third-party supervision agreement will be absolutely implemented. Today, I specially invited General Manager Wu here, so everyone can rest assured."

Wu Jian chuckled and said, "Leader Huang has already called and told us that Southwest Securities should put up its signboard from now on. As for security, please rest assured, it will be strictly regulated! CITIC Securities' headquarters is in Beijing, while Southwest Securities is in Chongqing. If you have any questions, just come to our headquarters!"

Everyone exclaimed, "Holy crap!"

Manager Wen felt extremely uncomfortable after being criticized by General Manager Wu.

Damn it, one incompetent general has caused the death of the entire army!

Once the securities company's restructuring was completed, all potential problems were completely eliminated.

Two days later, the financial market department of Everbright called and decided to invest 5000 million yuan. In addition, 16 other investors confirmed their participation, and the expected fundraising amount reached 1.13 million yuan.

The securities brokerage channel for this fundraising was handed over to Southwest Securities, but it was the entire Southwest Securities company, not just a single branch.

The fundraising period is 15 days.

Mr. Wu put in all his effort, saying he would do something big for him.

When Mr. Chen asked how much they could raise, Mr. Wu replied: at least 100 million.

Mr. Chen:
Back then, he was just starting out as a fund company. A branch of CITIC Securities raised 30 million yuan from Everbright Securities for him, along with several million yuan in other funds.

Now it's all about champion funds, you mobilize the whole company and raise 100 million for me.

There's a huge difference between different types of securities.

With just this one hundred million, in Mr. Chen's eyes, Mr. Wu had become synonymous with "the sun setting in the west."

He became even more determined to obtain a trust license.

Monday, October 3.

At 10 a.m., Xu Jin knocked on the door of Chen Xuebing's office.

"Chairman, BOE's stock price suddenly surged; they're dumping their shares!"

Chen Xuebing was stunned for a moment.

"How much did you pay?"

“These are all large orders, not a feint. The turnover rate is already 7%.” Xu Jin chuckled helplessly, “Your move to switch brokerages must have surprised him.”

Chen Xuebing scratched the back of his head: "Damn it, so sensitive? The two hundred million I hid in Southwest Securities hasn't even been revealed yet!"

Xu Jin shook his head and slowly said, "According to what you said, he has about 600 million yuan in his own funds. He probably knew that we were going to distribute dividends, which is why he dared to enter the market. But now, our No. 1 Fund has only distributed 15 million yuan in dividends, leaving us with more than 280 million yuan. If he wants to drive down the stock price, we will be buying at a low price, so we are definitely not confident. Now that we no longer have the channels to monitor him, I would also withdraw."

Chen Xuebing fell silent for a moment.

"They must have made at least three or four hundred million during this period, right? Their decisive withdrawal must have resulted in significant losses."

"No matter how much he flips the stock to drive up the price, it will take at least ten days for these shares to be gradually dumped. The stock price will fall with high volume, and he will lose at least ten percent. Moreover, the index has been performing well recently, and there are many opportunities. By advancing and retreating, they will lose not only money but also time."

Xu Jin's words did not make Chen Xuebing very happy.

He had prepared so thoroughly because he wanted to find the other party and give them a good beating, but the other party slipped away unnoticed.

“Since they’ve run away, let’s do our own thing. We’ll invest in whatever stocks we need to invest in. Once BOE’s stock price comes down, we’ll buy some back. We can’t let the stock price drop too much. After all, I still need to push the stock price up to six yuan within six months and get a seat on BOE.”

Chen Xuebing waved his hand, somewhat disappointed.

Xu Jin frowned upon hearing this and suggested, "I think we shouldn't take it back for now. If we use our funds to buy back BOE, we'll be in a passive position. If they then reverse course and drive down the stock price, locking up a portion of the circulating shares will actually help them. We won't dare to sell then; selling would be like hitting ourselves."

The conversation ended there.

The two looked at each other, and saw a glimmer of light in each other's eyes.

now it's right.

Chen Xuebing slammed his fist on the table: "Take it! Take a hundred million! Let's give them some courage!"

(End of this chapter)