High School Belle Fell in Love with Me

Chapter 398 - 191: The Hunter Often Appears as Prey

How comfortable is it to be around Li Yang?

Jiang Banxia spent millions in the live stream to bring Wanliu Capital nearly eight billion in subscription funds.

If you were promoting on other financial platforms, you would need at least two hundred million to get eight billion in subscription funds!

That’s even higher than the management fee income.

Wanliu Capital’s management fee is only 1.75% per year, which is considered average in the industry.

She originally wanted to continue, but Li Yang stopped her.

"The scale of funds is already very large, and the market risk ahead isn’t small, especially with the A-share market set to implement the index circuit breaker next year. Most importantly, in January 2016, over a hundred billion in stock will be unlocked in the A-share market..."

As soon as Li Yang said this, Jiang Banxia instantly understood.

She had no reason to doubt Li Yang’s judgment on the market because in her eyes, Li Yang might not be very detailed in managing individual stocks, but his grasp on the bigger picture had never failed.

The A-share market is different from other financial markets; it thrives on stubbornness.

The more you wish to succeed, the less likely it is to happen.

Looking back at the Western systems introduced to the A-share market over the years, they’ve mostly failed miserably.

From the initial T+0 to now T+1, it’s all been a trail of tears.

Jiang Banxia hadn’t thought of these issues before, as she only focused on the market charts.

"Master Li, you should have told me earlier, then I could wait for some time before attracting more funds."

Li Yang smiled and said, "With your capabilities, even if you suffer short-term losses, you’ll undoubtedly manage not to lose money for the fund members in the medium to long term."

Jiang Banxia didn’t want to have regrets herself, so she certainly didn’t want Jiang Banxia to have regrets.

Next month will face two massive stock drops, a huge test for Wanliu Capital.

Jiang Banxia certainly couldn’t turn away from hundreds of billions in funds at that time, so... there’s sure to be significant losses.

Moreover, the trust in her funds isn’t high; once massive losses occur, there will be widespread redemptions.

Originally securing five hundred billion for the year was assured, but if Jiang Banxia doesn’t handle it well, it could be disastrous, with all the funds brought in during this half month leaving.

For Li Yang, it’s fair to say he’s on equal terms with Jiang Banxia, giving her a heads-up to prepare mentally.

It’s already mid-December, and January’s plunge is just around the corner. There are two main reasons: first, the A-share market will implement a new index circuit breaker regulation, and the financial sector wants to test this new function by letting the market crash once.

So, on January 4th, the market opened with a direct 5% drop, triggering the first circuit breaker, then upon reopening, it plummeted to 7%, triggering the second circuit breaker.

The other reason is that too many stocks are being unlocked in the A-share market, with over a hundred billion unlocking within a month, something never seen before.

Across the A-share market, the average value of stocks unlocked each month is only around one hundred and sixty billion. This month’s figure is five to six times the usual, naturally leading to unprecedentedly strong bearish forces.

Wanliu Capital’s three hundred billion in funds is already unlikely to turn around.

This time, amid the massive stock drops, nothing will be spared except for the stocks in which Jiang Banxia conducts high-frequency trading.

It’s not that her high-frequency trading stocks won’t drop, but rather Jiang Banxia has the ability to pull them up.

However, the funds she can operate are very limited, at most thirty to forty billion, and the rest of the holdings will significantly drag her down.

...

The expansion speed of Ofo bike is rapid. Since receiving funding three months ago, progress has been made daily.

Currently, operations have started not just in Capital City but in several top-tier cities, with registered users exceeding millions, though only about tens of thousands have paid the deposit.

Of course, the burn rate of money is also very exaggerated, with those over twenty million being far from enough, depleted in less than two months.

This is still with large amounts owed to suppliers and using user deposits to barely maintain fast-paced expansion for three months.

By the end of December, Ofo bikes were rumored to have a financing round, and Li Yang certainly received the news.

After all, who doesn’t know Li Yang has money? David’s ambitions are big for this round of financing because Ofo bike’s payment conversion rate is very strong.

With lots of free promotional activities, the payment rate is close to 5%, and exceeding 10% in the late stage is entirely normal.

Privately, the capital contacting him is countless, including Shunwei Capital, which failed to invest last time.

Last time, Ofo bike was still a fledgling company, but this time it’s different.

Though it’s only been three months, the larger scale has proven his strategy is feasible and there’s a bright future ahead.

This time he wants more money, a higher valuation, and Li Yang is the investor he must pull in.

So, he called Li Yang ahead of time.

"Li Yang, junior, on the 30th of this month Ofo bike is holding an A-round financing conference, will you be able to attend?"

"Senior Brother Dai, I’m really sorry, I might have something going on that day, so I won’t be able to make it." Li Yang declined.

David was taken aback and hurriedly said, "Junior, I know last time you couldn’t take part, but this time I guarantee..."

He must bring Li Yang over because he believes no one else can offer a higher price than Li Yang.

Last time Li Yang was willing to offer twenty-one million, and according to his understanding, Yuancheng Capital simply doesn’t have the money, unable to compete this round.

But he certainly couldn’t say it directly, otherwise Li Yang would feel he was being set up as a big fool.