novelraw Chapter 368 - 190: God of Investment? (Part 3)
Chapter 368 - 190: God of Investment? (Part 3)
God of Investment?
Heh heh...
If it were before, Yang Chen might have believed in the God of Investment.
But ever since he met Zhang Long, Yang Chen often discussed investment knowledge with him, and he got quite familiar with the investment circles in Dragon Country.
As for foreign capital markets, Yang Chen isn’t too sure.
In the Dragon Country’s capital market, especially the stock market, it’s entirely insider trading, with the market manipulated by big players to exploit retail investors. There’s absolutely no mention of technical or value investment.
Frequent stock traders all know this: when a certain stock suddenly hits the limit-up, the company will release good news after the market closes. Isn’t that a clear sign that the big players had insider information beforehand?
Managing to turn 30,000 bucks into three billion-scale funds, it seems like Li Xiang did quite a lot of insider trading.
Yang Chen: "If Li Xiang doesn’t interfere in the matters between me and his son, I’ll let him off. But if he dares to step in, then I’ll take him down along with the rest. What kind of god of investment is he if he’s not doing insider trading? I don’t believe he could achieve this with just 30,000 bucks. Everyone, please do me a favor and use your connections to gather evidence of criminal activities by the Li family father and son. Would that be possible?"
Huang Lvxie: "No problem! I know quite a few big shots in the investment circle, I can ask around."
Qiu Yuhong: "That’s easy. Our Shield Security Group’s intelligence-gathering capability is quite strong. It’s a good chance to show Mr. Yang what we can do in this aspect."
Xue Yinong: "I can also ask some friends to check. It’s a small matter."
Zhang Xiang: "Our firm has friends both domestically and abroad; we should be able to find something out."
Yang Chen nodded and said, "I’ll leave it to you guys then. You can head back for now."
Qiu Yuhong and others got up and left.
Yang Chen had mentioned many days in advance that he would come over on the 10th, and Huang Lvxie had also informed the shareholders about today’s meeting.
Right now, the shareholders were in the hotel’s leisure and entertainment area having fun.
Yang Chen ordered Huang Lvxie to notify the other shareholders to come to the conference room for a meeting within ten minutes.
The new major shareholder was calling the shareholders’ meeting for the first time, so the other shareholders didn’t dare to delay and hurried over.
Seeing the panting shareholders, Yang Chen smiled and said, "Hello everyone, I’m Yang Chen. I’m glad to meet you all and hope we can get along well and make the Haiyalantis Hotel better together. Please introduce yourselves, and I’ll get to know everyone."
The shareholders quickly introduced themselves.
There were a total of 12 shareholders. The one Yang Chen had to worry about the most was the second largest shareholder, British Investment from Eagle Country, holding as much as 25% of the shares.
If they could join hands with other shareholders, they might indeed cause some trouble for Yang Chen, who held 38% of the shares.
However, the other shareholders were all Dragon Country people, which to some extent was beneficial for Yang Chen.
Yang Chen’s usual style was that as long as there were no problems with the company, he would act as an absentee owner and just wait for the year-end dividends.
A day later, Zhang Xiang and others gradually replied to Yang Chen.
Li Xiang and Li Dengfeng, the father and son, indeed had many illegal activities.
Let’s talk about Li Xiang first.
As Yang Chen said, this man’s reputation as the God of Investment was built entirely on insider trading.
In the early days, he would bribe some Secretaries of listed companies to get inside information beforehand. He would prepare his funds in advance and bolt right after the good news caused the stock price to hit the limit-up.
Li Xiang’s claim to fame was with Poetic Immortal Liquor.
Back then, because Poetic Immortal Liquor falsified their earnings, it was treated as a special treatment (ST) by the Securities Regulatory Commission, and its stock price once fell to 0.9 yuan per share.
Li Xiang estimated through the sales in major supermarkets and liquor wholesale markets that the company had decent sales over the past year.
However, as an outsider, Li Xiang couldn’t see the specific sales data.
At the time, he had 200,000 cash on hand, which he gave entirely to the Secretary of Poetic Immortal Liquor to obtain the company’s past year’s sales data, orders for the upcoming year, and other good news.
After that, he went home, sold his house, borrowed money from friends and family, and even took out high-interest loans to gather a total of 5 million yuan. He then used this 5 million with a broker’s 5x margin to get 25 million yuan. Finally, he made a precision lowbuy when Poetic Immortal Liquor plummeted to 0.9 yuan per share.
Later, Poetic Immortal Liquor announced its performance for the past year, achieving a net profit of 120 million yuan.
Mind you, 120 million yuan twenty years ago was an astronomical figure, more than the sales revenue of many listed companies.
Subsequently, Poetic Immortal Liquor’s stock price soared all the way up to 21 yuan before it stopped.
It was through this speculation that Li Xiang rose to fame overnight.
As his fame grew and his capital strengthened, his investment operations became a smooth sail, leading to his current achievements.
But his smooth sailing was based on having a lot of insider information from listed companies.
His usual trick was to first select a suitable listed company, then buy off key positions like the company’s Secretary. Through these people, he would find out when the company’s good news would be released, lurk about a week in advance, and cash out right after the good news release.
Retail investors familiar with Li Xiang know a term called "One Word Guillotine."
Li Xiang often drove the stock to the limit-up board, then seized the opportunity to instantly crash it to the limit-down to exit, leaving no chance for retail investors to escape.
Now the evidence that Li Xiang had bought off many important figures in listed companies was laid in front of Yang Chen, and it was about time for his legend as the God of Investment to crumble.