The Great Sage Returns from Ten Years of Imprisonment

Chapter 300 The Snake's Ambition to Swallow an Elephant

At four o'clock in the morning, amidst countless jubilant cheers, this epic day of one-sided surge finally came to an end.

On this day, global stock market indices rose by an average of more than 10%, and the total market capitalization surged by more than five trillion US dollars.

These two extremely impressive figures, while not unprecedented or unparalleled, are not far off.

Seeing this, countless bulls around the world were overjoyed.

Even before the US stock market closed, experts on major international financial media outlets were already making pronouncements.

The global financial crisis has officially ended today.

Ling Yun simply couldn't be bothered to pay attention to such idiotic arguments.

It's already Tuesday, 10 a.m.

Ling Yun, carrying a backpack, walked into the office area of ​​the joint securities investment team at the headquarters of China Investment Corporation with Zhong Tao and the others.

Coincidentally, Mr. Lou was just about to leave for his office downstairs.

Upon seeing Ling Yun approaching, Chairman Lou raised his hand in greeting.

"Good morning, Xiaoling, you've come at the right time. The Asia-Pacific financial markets seem even more frenzied today than yesterday."

"For example, the Japanese stock market opened 10% higher today, and has already risen by more than 13%, and is still rising."

"With such a volatile market, should we stay or leave? I'd like to hear your opinion."

Before he could finish speaking, Ling Yun chuckled.

"Good morning, Mr. Lou. As you said, the Asia-Pacific stock markets were almost frenzied today. Since it was frenzied, it means that this kind of market is very abnormal and has no sustainability."

"My opinion is very clear: sell immediately, especially in the Japanese stock market. Don't keep a single stock; sell everything to lock in the profits from this bullish move."

"The stock markets in other countries and regions will depend on the situation. Just follow the plan I have formulated. If there are any changes, I will notify everyone immediately."

Seeing how firm his tone was, Chairman Lou's expression immediately became much more serious.

Without the slightest hesitation, he turned to General Manager Chen beside him and said:

"Immediately notify all investment teams within the company to sell according to the established strategy, especially all stocks in the Japanese stock market."

"Okay, boss, I'll pass the notification on right away."

Mr. Chen nodded in agreement.

Then he turned around and walked quickly away to the CIC office area downstairs.

Afterwards, Chairman Lou chatted with Ling Yun for a few more minutes before preparing to leave.

Just then, Ling Yun suddenly remembered something, and quickly called out to Chairman Lou, leading him to the nearby rest area.

Seeing that no one was in the rest area, Lingyun immediately got to the point.

"Mr. Lou, last night while I was researching the international financial market, I discovered an incredible golden opportunity. I just remembered it and wanted to mention it to you."

"If CIC is interested in getting involved with the two automotive giants, Volkswagen and Porsche, and wants to acquire a stake in them, now is the perfect opportunity."

Lou Dong's eyes suddenly lit up, shining brightly.

As the head of CIC, how could he not be interested in such an opportunity?

"Acquiring partial stakes in Volkswagen and Porsche is a good thing. If this goal can be achieved, it will definitely be of great benefit to the development of China's automotive industry."

"Tell me what exactly happened, where is this golden opportunity?"

Ling Yun smiled and then explained the situation in a low voice.

"As you probably know, Volkswagen and Porsche are essentially brother companies, sharing many close ties."

"Recently, news of Porsche's attempt to acquire Volkswagen has been making headlines in the international financial markets, causing quite a stir."

"From the perspective of the capital market, Porsche's idea of ​​a small company acquiring a much larger one is simply impossible. There are two reasons why people think this way."

"The first reason is scale. Porsche is far behind Volkswagen. Currently, Porsche's annual sales are only around 100,000 vehicles, while Volkswagen's are over 6 million."

"The second reason is the Volkswagen Act, which stipulates that no single shareholder's voting rights can exceed 20%, yet the Lower Saxony state government owns 20.1% of the Volkswagen shares."

"The Lower Saxony government's stake cannot be sold or lent to any institution or individual; in other words, the Lower Saxony government has veto power."

"That's why the capital market believes that Porsche is simply incapable of achieving its ambition of acquiring a much larger company. Although the market is paying close attention to this, there aren't many followers."

Upon hearing this, Chairman Lou smiled and echoed his sentiments.

"I've heard about Porsche's attempt to acquire Volkswagen, and I'm also familiar with the famous Volkswagen Law, a law enacted by the German government specifically to protect Volkswagen."

"For Porsche, the Volkswagen Act is a major constraint. If they cannot remove this constraint, they will not be able to achieve their goal of acquiring Volkswagen."

Ling Yun smiled and nodded, then continued in a low voice:

"The problem now is that Porsche has lobbied the EU to repeal the Volkswagen Act, clearing the legal obstacles to the acquisition, and has been playing a game of feigning one move while secretly making another."

"To put it another way, I've discovered that Porsche has likely used stock options to secretly acquire over 65% of Volkswagen's shares, making it the de facto largest shareholder."

"Based on the current shareholding ratio, plus the 20.1% stake held by the Lower Saxony state government, over 85% of Volkswagen's shares are locked up, leaving less than 15% of the shares in circulation."

"Because of the financial crisis, the capital market believed that Porsche, with its high debt, was simply unable to acquire Volkswagen, and Volkswagen's stock price was severely overvalued, so many people shorted Volkswagen's stock."

Wow! Porsche is going a bit crazy!

Lou Dong exclaimed in surprise, then his eyes lit up with excitement.

"If Volkswagen's outstanding shares are reduced to only 15%, that would be extremely dangerous. Anyone who dares to short Volkswagen at this time would be committing suicide."

Ling Yun smiled and nodded, continuing to analyze the situation.

"What's even more alarming is that Porsche is still secretly acquiring shares, seemingly poised to sweep up all Volkswagen ordinary shares on the market. This is a very dangerous sign."

"Under German law, once Porsche holds 75% of Volkswagen's shares, it can gain control even if Volkswagen's top management and other shareholders collectively oppose it."

"Once this news breaks, Volkswagen's stock will inevitably experience the most frenzied short squeeze in history. At that time, Volkswagen's stock price will soar to the sky, easily increasing dozens of times in a single day."

"The golden opportunity I'm talking about is right here. CIC can now make a move to go long, quickly acquiring a large number of Volkswagen shares, making them scarce and valuable, allowing for both offensive and defensive maneuvers."

"Then you'll negotiate with Volkswagen and Porsche, striving to get onto the boards of these two automotive giants. Even if you can't achieve that, you'll still make a fortune..."

Next, he laid out his proposed operational plan and provided it to Mr. Lou for reference!

As he continued his explanation, Mr. Lou became increasingly excited, rubbing his hands together incessantly.

After Ling Yun finished explaining the action plan, he immediately asked:

"Without a doubt, this is a golden opportunity that guarantees profit; you couldn't find one like it even with a lantern."

"But there's something I don't understand. Why didn't you take advantage of such a great golden opportunity and instead handed it over to Midfield?"

Ling Yun looked at Lou Dong and explained the reason with a smile.

"There are two reasons why I gave this opportunity to CIC instead of using it myself."

"The first reason is that this inevitable, high-profile short squeeze targeting the general public will shake the entire international financial market and attract immense attention."

"All the major institutions and investors involved in the short squeeze will become the focus of the capital market, and my team at United Securities and I cannot be exposed."

"The same applies to Grand Investment; it cannot participate in this historic short squeeze. China Investment Corporation (CIC), on the other hand, does not have this problem and is more suitable to negotiate with Porsche and Volkswagen."

"The second reason is that our responsibilities differ from those of CIC. CIC is more focused on serving national strategies, and making money through investment is secondary..."

Lou Dong paused for a moment, then gave a thumbs up.

"Well done, Lingyun! You have vision and courage!"

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