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

October 15th, Wednesday, 6:00 AM.

Hong Kong, Yue Si Youth Hostel.

Lu Chenzhou opened his eyes and sat up.

The room is less than 5 square meters, and a single bed takes up most of the space.

On the bedside table were several photocopies of documents that had been taken from Chen Yongren, and next to them was a laptop.

After washing up, he put on his thin black jacket, slung his backpack over his shoulder, and went out.

The hostel is located in an old building in Central. The elevator is so narrow that only two people can stand in it. Various little GG pictures are pasted on the walls.

Downstairs is a tea restaurant, which was already full of people at six in the morning, and the air was filled with the aroma of milk tea and pineapple buns.

Lu Chenzhou found a seat in the corner and ordered a hot milk tea and a pineapple bun.

He took out his phone and glanced at the overnight closing data for US stocks.

The Dow Jones Industrial Average closed at 9310.99 points, down 76.62 points, or 0.82%.

The S&P 500 closed at 998.01 points, down 0.53%.

The Nasdaq Composite Index closed at 1779.01 points, down 3.54%.

He placed his phone face down on the table and took a sip of milk tea.

8:00 AM, 68th floor of Central Centre.

When Lu Chenzhou arrived, Chen Yongren was already in his office.

A thick stack of documents lay in front of him, and next to him was a cup of coffee that had gone cold.

Chen Yongren pointed to the chair opposite him: "Mr. Lu, please sit down. We have a lot to do today, so let's take it one step at a time."

He opened the first document: "This is a change application from the Companies Registry, changing the shareholder from the original offshore company to you as an individual."

The normal process takes seven working days, but I made arrangements to shorten it to three days.

I submitted it today, and it should be approved by Friday afternoon.

Lu Chenzhou took the document and read it page by page.

Chen Yongren waited on the side.

Ten minutes later, Lu Chenzhou put the document down.

"no problem."

Chen Yongren put the document into a brown paper bag, marked it, and then opened the second document.

"This is SFC's license change application, license number 9, asset management."

The original holder has already signed, and it was submitted today. The normal process takes two weeks, but I've compressed it to three days, so it should be approved by Friday afternoon.

Lu Chenzhou took the document and read it again.

"Mr. Lu, license plate number 9 has very strict scrutiny of the source of funds, especially for mainland customers."

Lu Chenzhou took a document out of his backpack and pushed it in front of Chen Yongren: "I've prepared it."

Chen Yongren took it and flipped through it; it was a statement of the source of funds that Lu Chenzhou had prepared in Beijing.

All trading records for A-shares and Hong Kong stocks are recorded, starting from September 18th when the position of CITIC Securities was fully invested.

Chen Yongren read a few pages, then looked up and gave Lu Chenzhou a deep look. He didn't say anything and continued flipping through the pages.

He turned to the page for September 18th, paused, and then closed the file.

"I'll submit this along with the transaction records; there shouldn't be any problem."

He put the explanation of the source of funds and the license change application together and made another mark.

Chen Yongren opened the third document: "The third thing, the bank account."

The shell company already has a HSBC account, but after the change of shareholders, a new authorized signatory is required.

You will need to go to HSBC in person to fill out a few forms, which will take about an hour.

"Can it be done today?"

"I made an appointment at 11:00 AM at HSBC's headquarters in Central, which is a 15-minute walk away."

Lu Chenzhou nodded.

Chen Yongren then opened the fourth document: "The fourth thing is the company's registered address."

The shell company's original address was in Causeway Bay, a shared office space with an annual fee of HK$38,000.

If you want to change, I can help you find one.

Grade A office space in Central costs around HK$20,000 to HK$30,000 per month.

"Let's not change it yet," Lu Chenzhou said.

Chen Yongren nodded and made a note on the document.

"The fifth thing, and the last thing," Chen Yongren said, taking a business card from his drawer and pushing it in front of Lu Chenzhou.

"Accountant, the annual review of your SFC license requires an audit report. You need a licensed accounting firm."

This is a company I've worked with for many years; their prices are fair, and they're efficient.

If you have your own channels, you can use that; otherwise, you can consider this one.

Lu Chenzhou picked up the business card, glanced at it, and put it in his pocket.

"I'll think about it."

"No rush, just get it done before the license plate is issued."

Chen Yongren organized all the documents, categorized them, and put them into different brown paper bags, labeling each bag.

"I submitted the application to the Companies Registry this morning, and the SFC application this afternoon. As for the bank, please go at 11:00 AM, give them my name, and someone will assist you."

Lu Chenzhou stood up: "Thank you for your hard work."

"Of course."

Lu Chenzhou left the Central Centre and walked to HSBC's headquarters.

The weather in Hong Kong in October is still very hot. The sun shines on the footbridge in Central, where white-collar workers in suits are hurrying by.

He was wearing a thin black jacket and carrying a backpack, making him stand out somewhat from the crowd.

He didn't rush, his pace was neither fast nor slow.

As he passed a newsstand, he glanced at the front page of the newspaper.

The Hong Kong Economic Journal's headline read, "Hong Kong stocks plunged 834 points yesterday to a three-year low."

The headline of the Economic Daily was "China Building Materials plunges 14% in a single day, securities firms are all bearish."

He looked away and continued walking forward.

HSBC Headquarters Building.

The glass-walled building soars into the clouds, and the lobby is bustling with people, their voices, footsteps, and telephone rings all mixed together, like a machine that never stops.

He walked to the front desk and gave his name and Chen Yongren's name.

The receptionist made a phone call and then led him to the elevator.

In a small conference room on the eighth floor, a bank account manager in his thirties was already waiting.

He was dressed in a sharp suit, his hair was neatly combed, and there were several printed forms on the table.

"Mr. Lu? Mr. Chen has already informed us. This is the document regarding the change of authorized signatory. Please take a look at these places where you need to sign."

Lu Chenzhou sat down, picked up the documents, and began to read them page by page.

The account manager waited nearby, occasionally stealing a glance at him.

This ordinary-looking young man with a backpack looked like a college student, but Chen Yongren made it very clear when he called.

The actual controller of this shell company has assets under management approaching 200 million yuan.

After reading the document, Lu Chenzhou picked up a pen and signed his name in every place that required it.

The account manager checked it over and nodded: "No problem, the procedures can be completed today, and the account can be used normally tomorrow."

Lu Chenzhou stood up: "Thank you."

At 11:30, Lu Chenzhou left HSBC and ate a plate of stir-fried beef noodles at a nearby tea restaurant.

He took out his laptop and glanced at the Hong Kong stock market.

Huaxin Pacific closed at HK$16.30 at midday, while China National Building Material closed at HK$4.90 at midday.

His short position profit had fallen slightly since the market opened in the morning, but he didn't pay much attention to it.

He put the laptop in his pocket and continued eating.