Becoming the King of Bottom Fishing After Going All-In on A-Shares

Chapter 114 The Tribulation of Ten Thousand Saints

Xia Yaozong stared blankly at the holdings details for a moment: "It's doubled! We raised HK$10 billion, and it's doubled in just three days."

Zhang Yixing corrected, "I bought it on the 28th, so to be precise, it's been four days including today."

Xia Yaozong did not refute. He leaned back in his chair, staring at the ceiling, muttering something to himself.

After a while, he sat up straight and pointed at the numbers on the screen.

"Net floating profit/loss of 10.89 billion, with a return of 108.89%, exceeding 10%."

He paused for a moment, then raised his voice slightly.

"It's over 100%. According to the contract, he gets 20% of the portion up to 100%, and 50% of the portion exceeding 100%."

Zhang Yixing also realized what was happening and leaned over to look at the numbers.

Xia Yaozong continued calculating: "The first 100%, 10 billion in profit, he takes 20%, which is 2 million."

Of the extra 0.89 billion, he takes 50%, which is 0.445 billion.

Total performance-based commissions amounted to 2.445 million yuan.

Adding his own principal of 1.42 million, his share's unrealized profit is 10.89 billion multiplied by 14.2%, which equals 1.546 billion.

100 million.

Totaling 3.991 million.

With his initial investment of HK$1.42 million, his net worth is now HK$5.411 million.

After he finished calculating, he fell silent.

Zhang Yixing didn't say anything either.

Lu Chenzhou picked up his water glass, took a sip, and put it down: "You calculated it correctly."

Xia Yaozong stared at him.

"You're worth over 500 million now, can't you give us some feedback?"

"What was the reaction?"

"Smile, or get excited, or at least don't be so calm when you put the water glass down."

Lu Chenzhou put down the water glass: "I've put it down."

Xia Yaozong rolled his eyes.

Zhang Yixing laughed out loud.

Wen Zhiyu stood by the window, holding a notebook, and wrote down the numbers Xia Yaozong had just calculated.

Her fingers were very steady when she wrote, but her heart was beating very fast.

Five hundred and forty million.

She remembered the salon in September.

He stood up and said, "1929 points is a golden opportunity," which drew laughter from the entire audience.

Zhao Xianglong stood up and goaded him, "If you think it's so good, then buy it."

He said, "Okay, I'll buy it."

Everyone was laughing at him then, but she sat behind him and didn't laugh.

It wasn't because she believed him, but because her own situation left her no right to laugh at anyone.

She closed her notebook and walked over to Lu Chenzhou.

"Let's go for a walk, then head to the cafeteria."

"Um.

""

The two walked side by side toward the door.

In room 608, Xia Yaozong was still sitting in his chair, staring blankly at the numbers on the screen.

"Yixing".

"Um.

""

"With his net worth of over 500 million, wouldn't he treat us to a meal?"

"He won't even order an extra serving of broccoli from the cafeteria, and you expect him to treat you?"

Xia Yaozong was silent for a moment, then smiled: "That's true."

He stood up and patted his pants.

"Let's go to the cafeteria, he's treating today."

Zhang Yixing shut down his computer: "When did he say he was willing to accept?"

"He didn't say, but someone with a net worth of over 500 million, how could he not invite them?"

Zhang Yixing shrugged: "You probably forgot that your net worth is almost 1 million."

Xia Yaozong, who was about to leave, paused for a moment and then shook his head: "Not so fast. After the last liquidation, I only invested 2000."

Even if it doubles now, half of it will go to Brother Lu, so he'll only get 3000 million.

Zhang Yixing's lips twitched; he now felt a strong urge to beat this fatso to death.

In the evening, the news that Zhizhou Capital had acquired a stake in China National Building Material Group Co., Ltd. had been circulating in the financial circles all day, and by evening it had completely exploded.

The first report was from Sina Finance, with a very direct headline: "What does Lu Chenzhou's 12.47% stake in a state-owned enterprise mean?" (20-year-old college junior makes a takeover bid)

The article is short, but it contains a lot of information.

Zhizhou Capital, a Hong Kong-licensed asset management company established less than a month ago, is controlled by Lu Chenzhou, a third-year student at Renmin University of China.

10月28日以每股1.60港元买入中国建材1.125亿股，持股比例12.47%，超过5%举牌红线。

Based on the closing price of HK$4.33 on October 31, the unrealized profit is approximately HK$3.07 million.

The comments section exploded.

"A third-year university student? A cost of 1.6? A current price of 4.33? What kind of insane move is this?"

"After raising his bid, he was locked out for six months. Was he genuinely optimistic about the market, or was he simply locked out?"

"With a cost of 1.60, what's there to be afraid of locking it in for six months? Even if it drops to 2.00, we won't lose money."

"The key question is, how did he know 1.60 was the bottom? How come we retail investors didn't know?"

"Because you only look at candlestick charts, while others look at valuations."

The Hong Kong Economic Journal's headline was even more direct: "Mainland private equity firm Zhizhou Capital acquires 12.47% stake in China National Building Material, becoming its second-largest shareholder."

The report mentioned a detail: the legal representative of Zhizhou Capital is Wen Zhiyu, who is 20 years old and also a college student.

Someone in the comments section asked, "The legal representative is female, but the actual controller is male. What is their relationship?"

No one answered, but everyone knew the answer.

The headline of the 21st Century Business Herald was: "A Contrarian in the Financial Tsunami: The Logic Behind a 20-Year-Old Private Equity Fund Manager's Takeover Bids."

This report is quite long, reviewing all of Lu Chenzhou's operations starting from his bottom-fishing of CITIC Securities on September 18.

The steps were clearly outlined: buying at the daily limit down, leveraging 100 times, the release of three major positive factors, switching to Hong Kong stocks, going long on BYD, shorting Huaxin Pacific, shorting China National Building Material, and then going long on China National Building Material.

The article concludes with the statement: "He was greedy when everyone else was panicking."

He was fearful when everyone else was greedy.

This isn't luck; it's awareness.

Cognitive asymmetry is the biggest source of excess returns in this market.

On Baidu Tieba, the discussion has already gone on for over two thousand posts.

"12.47%, does this mean they're going to buy up building materials for their own company?"

"With a cost basis of 1.60 and a share price of 4.33, the unrealized profit is over 300 million. So what if it's locked up for six months?"

"The key point is that he said he 'does not rule out further increases in holdings,' which means he intends to buy more?"

"If we buy another share, we'll reach 15%, and then it won't just be a takeover bid, it'll be the second-largest shareholder."

"Have you ever thought about this? He started building his position on October 28th, but only issued an announcement on October 31st. What was he doing during those three days? He was adjusting his portfolio. He sold all his bank stocks and replaced them with Shenhua and Conch."

In other words, he continued operating even knowing he was about to issue an announcement. That kind of composure is rare.

"Composure? Is this what you call composure? This is called disregarding regulation."

"Upstairs, get this straight. The Hong Kong Stock Exchange gives a three-business-day grace period. What's wrong with the announcement he issued within that period?"

"No problem, but he made over 500 million in those three days. What do you think the regulators will think?"

"What the regulators think is unimportant; what matters is that he operates legally and compliantly. Who can stop him from making money legally and compliantly?"

Some people even brought up Wen Zhiyu in the conversation.

"The legal representative of Zhizhou Capital is Wen Zhiyu, 20 years old, a college student."

"The legal representative is someone whose name is registered with the Industry and Commerce Bureau and who will be held responsible if something goes wrong. The fact that he registered his company under her name—what does that say?"

"That means he trusts her."

"It's not just about trust; you entrust your entire life and fortune to someone—what do you call that?"

In the boys' dormitory, someone posted a screenshot of the announcement in a group chat, along with the caption: "Brother Lu has been listed on the Shanghai Stock Exchange."

The group chat exploded.

"Raising a stake in a listed company? Isn't that something only major shareholders of listed companies do?"

"He holds 12.47% of the shares, which is higher than the percentage held by many fund companies for a single stock."

"The key point is that he's still a junior in college."

"Stop talking, I haven't finished my thesis yet."

In the corridor, someone leaned against the wall, holding a mobile phone in their hand, staring at the announcement repeatedly.

Someone next to him nudged him: "What are you looking at?"

"Judging from Lu Chenzhou's announcement, do you think he will still come to class?"

"Go to class? He's worth over 500 million, why would he need to go to class?"

"Too."

The discussion took a distinctly different turn in the girls' dormitory building.

"Have you seen the announcement? The legal representative of Zhizhou Capital is Wen Zhiyu."

"I see, the legal representative, not the secretary?"

"Hehe! What's that saying? 'When there's work, the secretary does it; when there's nothing, there's nothing to do...'"

In the dormitory at the end of the corridor, Wen Zhiyu sat on the edge of her bed, holding her phone with the announcement on the screen.

She had read it many times, not because of the content, but because of the signature: "Zhizhou Capital Co., Ltd."

Zhizhou, Zhi as in Wen Zhiyu, and Zhou as in Lu Chenzhou.

Her roommate came in from outside, saw her staring blankly at her phone, and leaned over to take a look.

"He held up a sign?" My roommate sounded surprised. "You knew he was going to post that announcement today?"

"Um."

Aren't you nervous?

"What's there to be nervous about?"

"He registered the company in your name, and the announcements list your name. What if..."

Wen Zhiyu interrupted her: "There's no 'what if,' he can't be wrong."

Her roommate stared at her for a few seconds, then laughed.

"You're even more confident than him."

November 1st, Saturday, 6:30 AM.

Lu Chenzhou was woken up by his phone vibrating.

It wasn't a phone call, it was a message sent by Wen Zhiyu.

"Are you awake?"

He glanced at the time and typed two words: "Awake."

The other end replied instantly: "I'll be waiting for you on the playground."

Lu Chenzhou was stunned for a moment. Saturday, the playground, waiting for him? He usually didn't exercise on weekends.

However, he still sat up and put on his coat.

In the dormitory, Xia Yaozong was still snoring, Zhang Yixing's blanket was pulled over his head, and it was unclear whether he was awake or not. Yang Cheng was wrapped up like a rice dumpling.

He quietly finished washing up and went out.

In November, the weather in Beijing was already quite cold.

As he stepped out of the dormitory building, a gust of cold wind rushed into his collar, and he instinctively shrank his neck and zipped his jacket all the way up.

The ginkgo leaves by the playground have all turned yellow, covering the ground with a thin layer that rustles underfoot.

Wen Zhiyu stood by the track, wearing a cream-colored sweatshirt with two pom-poms on the hood swaying in the wind.

She was carrying an insulated bag, and when she saw Lu Chenzhou walking over, she shoved the bag into his hand.

"Pumpkin porridge, drink it while it's hot."

Lu Chenzhou took it, opened it, and took a sip. It was sweet; sugar had been added.

"Don't you dislike sweets?" he asked.

"It's Halloween today, so it's in the spirit."

Lu Chenzhou glanced at her, then lowered his head and took another sip.

After finishing their meal, the two walked slowly along the track at a moderate pace.

The wind blows, swirling the ginkgo leaves around my feet.

Lu Chenzhou.

"Um.

""

Have you ever celebrated Halloween?

"no."

"Me neither," Wen Zhiyu said. "I didn't have any when I was little, and now that I'm older, I have no one to spend time with."

Lu Chenzhou remained silent.

Wen Zhiyu turned her head and glanced at him: "How are you spending your day?"

Lu Chenzhou thought for a moment: "Looking at the market, Hong Kong stocks rose quite a bit last week, and there's a high probability of a correction next week. I need to think about how to adjust my portfolio."

Wen Zhiyu stopped and looked at him.

"Today is Saturday, and the Hong Kong stock market is closed."

"US stock futures are still open."

Wen Zhiyu stared at him for two seconds, then sighed.

"You treat holidays like you're going to work."

Lu Chenzhou didn't reply, but turned around to look at her.

"So, how do you want to live?"

Wen Zhiyu was taken aback; she hadn't expected him to ask her a question in return.

"I...I don't know either." She lowered her head, squeezed the pom-pom on her hoodie in her hand, and said, "I just feel like we've never really celebrated a holiday properly."

Lu Chenzhou remained silent for a few seconds.

"It's Halloween today, I'll treat you to dinner tonight."

Wen Zhiyu looked up, her eyes lighting up: "Really?"

"Um.

"What do you want to eat?"

What would you like to eat?

Wen Zhiyu thought for a moment: "Hot pot?"

"OK."

"The same place as last time?"

"OK."

Wen Zhiyu smiled, loosened the pom-pom, and dusted off her hands. "See you tonight."

"Um."

Wen Zhiyu turned and walked a few steps toward the dormitory, then suddenly stopped and looked back.

Lu Chenzhou.

"Um."

"Could you dress a little more like it's a holiday today?"

Lu Chenzhou looked down at himself: a black coat, dark trousers, and a white T-shirt.

"Doesn't it look like it?"

Wen Zhiyu suppressed a laugh and shook her head: "It doesn't seem like it. You're dressed like you're going to a meeting."

Lu Chenzhou was silent for two seconds: "I don't have any other clothes."

Wen Zhiyu opened her mouth as if to say something, but in the end she just smiled.

"Fine, this is fine too. It doesn't really matter what you wear anyway."

She turned around and left.

After walking a few steps, he stopped again and shouted without turning his head: "See you at the school gate at seven o'clock tonight."

Lu Chenzhou watched her figure disappear into the doorway of the dormitory building, then sat down on a bench by the playground.

On a November morning, the sunlight shone from the east, turning the entire track golden.

He took out his phone, glanced at US stock futures, then at the pre-market data for Hong Kong stocks, and then put his phone back in his pocket.

I'm not checking the market today.

Halloween.

He thought for a moment, then took out his phone and sent a message to Xia Yaozong: I'm having dinner with Wen Zhiyu tonight, so I won't be with you guys.

Xia Yaozong replied instantly: ? ? ? You finally figured it out?

Lu Chenzhou did not reply.

Xia Yaozong sent another message: Dress nicely, don't wear that black coat anymore, you're not going to a meeting.

Lu Chenzhou glanced at his black coat, remained silent for a few seconds, and then put his phone in his pocket.