2003: Starting with Foreign Trade

Chapter 595 The Momentum Has Been Established
Human beings experience joys and sorrows in different ways.

While people in China were enjoying their National Day holiday, Cheng Linfeng's team was still working in Hong Kong. It wasn't that he didn't want to come back for his boss's wedding, but he simply couldn't leave.

Since September 29, when all three major US stock indexes plummeted by more than 8 points, the US stock market has completely cooled down.

Meanwhile, Cheng Linfeng and others were also extremely busy. During the National Day holiday, US stocks fell continuously, creating a huge opportunity to short sell and make money.

All three major indices fell by more than 8 points, and global stock markets were completely devastated. Even Wall Street, which controls these events, found it somewhat unbelievable.

However, capital is greedy, and a big drop has its advantages.

"We've only just gotten married and we're already so busy with work, we don't even have time for a honeymoon or anything," Zhang Suzhi complained.

According to traditional lifestyles, married men are considered settled; once their sons get married, they can finally relax, and the weddings are very grand. The only complaint is that the two of them are too busy.

After returning home, I had to go on a business trip.

"I can't miss this; this awards ceremony is very important," Gu Qingqing explained softly.

I was on a business trip to the capital to attend an awards ceremony.

This commendation ceremony was for that special incident, and it was of a very high level. Because of their good performance in that incident, Tan Jincheng and his wife were also invited to attend the ceremony.

In addition, there will be a gala hosted by CCTV after the commendation ceremony, both taking place on October 8th.

After the National Day holiday, the two of them had to rush to the capital, and then go on a short trip. There was really no time for a honeymoon. Besides, the listing of Flash Technology was also in progress.

“There is one advantage to going to the capital for business: if I can make an appearance at the meeting, it will also benefit our company’s listing.”

Even just attending such a high-level commendation ceremony and sitting in the back row of the audience would be well worth it. Tan Jincheng dared not refuse, nor did he need to. Most people wouldn't even have the chance to sit in that position.

"All you think about is business. You need to balance work and rest."

"Mom, it's okay. We're still young, and we'll have plenty of opportunities to travel in the future. Besides, isn't our business trip also a form of travel?"

Gu Qingqing knew Zhang Suzhi's thoughts and was afraid that she would be wronged, so she still followed the traditional mother-in-law and daughter-in-law thinking.

She also wanted to go on a honeymoon like any other newlywed couple, to find a city where no one knew her and have some fun, but it was clear that such a thing was a luxury for them now.

While achieving wealth and success in one's career, many ordinary people inevitably have to give up happiness.

Monday, April 10th.

On the first working day after the National Day holiday, the Shanghai Composite Index plummeted by 5.23%, while US stocks continued their downward trend, entering a technical bear market. The Hang Seng Index, which is closely related to US stocks, also experienced a sharp decline.

The global capital markets are in a bleak state, and the risks of the subprime crisis are rapidly expanding, gaining momentum. Many companies are already considering whether to scale back their investment plans.

Under the influence of this global subprime mortgage crisis, Orange Technology, listed on Nasdaq, has not been spared either. Its stock price has fallen below the offering price and is currently trading at $9.66, a significant reduction in its market value.

Tan Jincheng previously reduced his holdings, which was basically done at a high price. At the current price, the price has already fallen by more than 40%, but it is clear that this is not the final result.

It has to be at least halved before we can buy back in.

Knowing the outcome in advance and repeatedly reaping profits without any psychological burden is truly exhilarating.

After arriving in the capital, Tan Jincheng and Gu Qingqing checked into a hotel near the Great Hall of the People. To be honest, they were quite nervous, as the people they were to meet on the 8th were all very high-ranking.

I need to go over the procedures tomorrow, and I also need to attend a gala hosted by CCTV, where I'll have to donate some money.

In October, the weather in the capital was already quite cool, with comfortable temperatures in the mornings and evenings. After going through security and completing the procedures with Gu Qingqing, the two strolled along CA Street.

It's a weekday now, and the tourist crowd in Beijing has changed to mainly middle-aged and elderly tour groups. Tour guides holding small red flags lead large groups of elderly men and women, introducing various attractions.

"It seems that if you ask most elderly people where they want to travel, the capital city is the answer, right?"

"Yes, my grandparents were the same way. When they talked about going somewhere to play, they always said they wanted to go to the capital."

The sun is shining brightly, the temperature is just right, it's truly a wonderful time of year.

Wednesday.

Gu Qingqing and Tan Jincheng passed through security and entered the venue.

"I'm a little nervous. I heard a lot of important people are coming today," Gu Qingqing said softly.

"Me too." Tan Jincheng squeezed her palm and smiled wryly as well.

This was the first time he had ever met such a powerful figure; in his previous life, he could never have even dreamed of such a thing. However, there was one future big shot among them whom he had met once before, since that person had also been in Zhejiang Province. Thankfully, he wasn't completely clueless.

The two were in decent positions, in the middle area, with spectators on either side. Tan Jincheng hadn't prepared anything, nor had Gu Qingqing. It was as if the honors that were usually given to entrepreneurs at such award ceremonies never went to them.

While Tan Jincheng and Gu Qingqing were attending the commendation meeting, Changfeng Group was also extremely excited.

"It passed! Haha, the initial review passed! That's great, the speed is really impressive!" Zhou Kai was overjoyed.

The China Securities Regulatory Commission (CSRC) issued a circular to Changfeng Group today, conditionally approving the restructuring plan of FlashTech's backdoor listing through Changfeng Group. The next step is on-site inspections by both parties.

Even Zhou Kai and Li Jianxin, who were unwilling to sell the company, breathed a long sigh of relief.

It's October now, and although Changfeng Motors' SUVs have barely met the National III emission standard, sales are poor, and its finances are continuing to deteriorate. The Xiangcheng industrial base is currently in a state of partial shutdown.

In addition, with the recent hype surrounding the financial crisis, they also have concerns that it might affect the domestic situation.

No matter how unwilling they are, they have to accept reality. Although it is conditional, it is better than rejection. As long as it passes the State-owned Assets Supervision and Administration Commission's review, the two parties can complete the transaction normally in another month or two.

"It's good that it's approved. Any later and the money in the account would be gone," Li Jianxin said with a wry smile.

"Wow, this kid is really lucky. He avoided the market crash for more than half a year. The stock market should start to rise next. After Flash Technology goes public, he should be able to catch the rebound."

Zhou Kai sighed with emotion.

Today, the People's Bank of China (PBOC) lowered the reserve requirement ratio for RMB deposits at deposit-taking financial institutions by 0.5 percentage points. This is the first time in nearly nine years that the PBOC has lowered the reserve requirement ratio for all deposit-taking financial institutions.

Including the targeted reserve requirement ratio cut on the 16th, the shift in policy direction is already very clear. The central bank's continuous tightening monetary policy is about to turn into an easing mode.

It's a pity that Changfeng Motors didn't survive until then. Even if it had lasted just six more months, they wouldn't have had to sell the company.

"By the way, when are you going to Mitsubishi's headquarters?" Zhou Kai asked again.

“The 15th shouldn’t affect the CSRC’s on-site inspection,” Li Jianxin replied.

It's conditionally approved. There are still some materials to be supplemented. Once the procedures are completed, they should be back from their daily routine.

Li Jianxin attended Tan Jincheng's wedding, as did Zhou Kai. The entire wedding venue resembled a business conference, with business owners from all over the world. After the wedding, some of them visited the Shanchi Group.

In addition, some entrepreneurs held talks with Beicang Investment Promotion Bureau, including many auto parts companies, all of whom wanted to establish cooperative relationships with Weilai Auto.

They heard about Tan Jincheng attending the commendation ceremony today.

With his background as CCTV's annual economic figure and his participation in this level of conference, Tan Jincheng and the Flash Group have clearly established their dominance.

There's no going back now.

The subprime crisis, acquisitions, changes in monetary policy, and even special events—for a moment, Zhou Kai even wondered if Tan Jincheng had known all along that these things would happen.

Otherwise, how could the timing of the acquisition have been so perfect?
It just so happens that it coincides with a period of transition for Changfeng Group, and it also coincides with the most complex and lowest point in the domestic and international financial environment. It's truly bizarre.

"Forget it, I can't think about it anymore. It must be a coincidence."

As Zhou Kai thought about it, he couldn't help but shiver. The more he thought about it, the more his scalp tingled.
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"The Dow Jones Industrial Average has fallen 22.11% in 8 trading days, with a volatility of nearly 30%. We've really struck it rich this time. Boss, isn't it a bit too early to end this now?"

In Hong Kong, the team members at the hotel were almost in a frenzy, their account balances were rising day by day, and their adrenaline was surging like they were on steroids.

A portion of the funds that grow in the account comes from their bonus share.

At this moment, Cheng Linfeng said that they should finish as soon as possible and prepare to wrap things up!

Starting from September 15th, everyone was basically in this state. Actually, Cheng Linfeng wasn't much better off. He made a terrifying profit by shorting with leverage and then experiencing a sharp drop throughout the month.

He had spent half his life working in the fund industry and had never experienced this kind of thrill before.

"That's about enough. Let's call it a day. We still need to transfer the money back to China. There's still a lot to do after this. Let's wrap things up little by little."

Cheng Linfeng tried his best to appear calm. After all, he was a leader in the company and couldn't be as agitated as his team members.

However, if it weren't for the boss's insistence, he really wouldn't want to quit. This money was too damn easy to earn, like picking it up off the street.

"Listening to the boss is definitely the right thing to do. After all, this short-selling operation against the pressure was planned by the boss. When it starts and when it ends must be done according to his requirements."

Oh, what a pity, we could have made even more money.

(End of this chapter)