Sha Zhu's Rebirth in the Courtyard: Starting with Hitting Someone in the Head

Chapter 410 Year-End Conclusion, Planning for Next Year

Early in the morning, He Yuzhu sat in his study with the financial terminal on. Data scrolled across the screen. He looked at it for a while, then reached out and closed the page. 2007 was almost over.

Throughout the year, the market across the ocean was in constant flux. From New Century Financial's warning in February, to Bear Stearns' suspension of redemptions in June, to the liquidation and collapse of two hedge funds worth tens of billions of yuan at the end of July, a series of negative factors emerged one after another.

Every time a crisis emerges, the Federal Reserve and central banks in Europe intervene by injecting funds and cutting interest rates to rescue the market, temporarily suppressing the panic and causing the market to rebound. As a result, many institutions believe that the subprime crisis is about to pass and the bull market can continue.

In early October, the Dow Jones Industrial Average even hit a record high, and many investors were still immersed in the bull market frenzy. However, the cracks beneath the bubble were widening, the financial sector continued to be severely hit, and bad debt news kept emerging. After reaching its high point in October, the market entered a period of fluctuating decline, falling for a few days and then rebounding for a few days, with bulls and bears tearing each other back and forth.

December arrived in the blink of an eye. The Federal Reserve cut interest rates one after another, and central banks in many countries joined forces to rescue the market and desperately maintain the operation of the financial system. At the end of the year, the overall market still closed higher for the year, but undercurrents were already swirling beneath the surface.

Most market participants are unaware that this is merely the prelude to a storm. The truly devastating tempest will not sweep the globe until next year.

He Yuzhu stared at the fluctuating index on the terminal, knowing that the current turmoil was far from over.

The encrypted phone on his desk rang. He reached out and answered it; it was He Xiao's voice, weary.

The person on the other end of the phone seemed to be flipping through documents: "Dad, it's almost the end of the year. The group's financial summary is out. Profits in all four sectors have increased compared to last year, with overall revenue up 12% and net profit up 9%. The overseas structure has been fully established, the SPV entities are all in place, and all legal compliance documents in each jurisdiction have been approved. There are no blockages in the funding channels."

He Xiao continued his report: "He Xin's CDS position building is 90% complete, and the unrealized profit is quite considerable. The total investment for 2007 will not exceed 15% of the total budget, leaving a large amount of cash idle. The trading system has also been fully set up, and multi-account parallel operation has been tested three times without any problems."

The sound of the wind rustling through the pomegranate tree branches outside the window was exceptionally clear in the quiet room. After listening, He Yuzhu asked, "What about the large-scale trading channels in Europe?"

On the other end of the phone, He Xiao turned a page: "The channels for connecting with most of the major European pension funds and sovereign wealth funds have been established. When the market truly panics next year, negotiations and settlements for large-scale equity transfers can be initiated immediately."

"Good job! Any feedback from He Chen?"

"He's been collecting fundamental data on European and American tech stocks. He said the impact of this crisis on them is mainly a shock to market sentiment, with little damage to their fundamentals. If stock prices continue to fall next year, these companies' valuations will enter historical lows."

He Yuzhu's face was full of smiles; all three sons had performed well. This entire operation would have tempered them.

He slowly began, "Next year will be the real disaster year. Those institutions that managed to hold on this year will collapse one by one next year. The panic in the market then will be a panic where no one knows where the bottom is. It won't be like this year, where it dips and then rebounds."

There was silence on the other end of the phone. When He Xiao heard the phrase "the panic of no one knowing where the bottom is," his heart sank instantly, and he had a real premonition of the devastation that would befall the capital market next year.

He Yuzhu clearly heard him gasp, and calmly instructed, "We'll proceed as planned. There's no need to increase He Xin's position; 90% is enough to hedge against previous risks. Keep the remaining funds as a backup plan, to buy stocks in batches when the market crashes and everyone is in despair next year."

Continue to cultivate overseas bulk trading channels. Ensure that when institutions engage in concentrated selling next year, we have the qualifications, access, and capital to absorb all the transactions. Have He Chen closely monitor the financial reports and fundamentals of leading overseas technology companies. The golden opportunity created by the market sell-off will be our best chance to invest in core global assets. I will notify you in advance.

"Understood, I'll keep you updated on the progress." He Xiao replied solemnly and hung up the phone.

He Yuzhu put down the phone, walked to the window, and looked at the three children in the courtyard.

Jing Song, Jing Yi, and Jing Zhao had just finished practicing their horse stance and began practicing Xingyi Five Elements Fist. The five forms—Splitting, Collapsing, Drilling, Cannon, and Horizontal—had no fancy moves; they were purely for building a solid foundation. This kind of practice was tedious, but suitable for tempering one's character.

Jingsong's training was the most solid. Every chopping punch was steady and powerful, and every collapsing punch was crisp and clean. He performed the whole set of punches in a very proper manner, with steady and calm breathing. He showed no signs of being a child.

Jing Yi followed closely behind, his progress was almost identical, his movements were standard, and his strength was in place, all of which showed his hard work.

Jingzhao is younger and has less practice time, so his movements are inevitably a bit clumsy and he can't keep up with the pace. But this child is calm and composed, not spoiled at all, and doesn't slack off. He's not in a hurry to catch up with his older brothers' speed. He keeps his eyes on their movements, carefully comparing each move and each stance. If a movement is wrong, he adjusts it immediately. If it doesn't work the first time, he practices it several more times. He's exceptionally persistent.

He Yuzhu felt at ease watching the three children practicing their skills.

Over the years, he has been working tirelessly to establish a financial presence, build overseas systems, and accumulate cash flow. He has been holding back from making any rash moves in recent years, waiting for a major opportunity next year. In 07, the market fluctuated wildly, and everyone relaxed their vigilance, thinking the crisis was over and the bull market was continuing, unaware that the real disaster was yet to come.

The He family had made thorough preparations long ago.

Outside, he has three sons, each with their own responsibilities, controlling finance, distribution channels, and industrial technology. All are on standby, with ample funds and complete channels, just waiting for the market to crash so they can buy at the bottom.

Inside the family, the younger generation is well-rounded, excelling in both literary and martial arts. They not only study to learn culture, understand principles, and have a broad perspective, but also practice traditional Chinese martial arts every day to strengthen their bodies and temper their minds.

In life and in work, one must be grounded in literature, establish oneself through martial arts, build a career through wealth, and take virtue as the foundation; none of these four can be lacking.

Culture prevents narrow-mindedness and shortsightedness. Martial arts skills ensure uprightness and resilience, allowing one to withstand storms. A solid foundation guarantees the stability of the family. Virtue ensures the family's long-term development. This is the fundamental principle he used to cultivate future generations and manage the family.

This year is about to end, and all the groundwork has been laid. All the patience, planning, and refinement have been for the sake of welcoming the turbulent waves of next year.

While others face bankruptcy and collapse with nowhere to go next year, the Ho family is poised to rise and take off.