Reborn in 2014: A One-Man Tycoon

Chapter 430 Meng Chuan's Wealth

The speed of whale hunting is undeniably fast.

He steadfastly carried out Meng Chuan's orders.

It's worth mentioning that Meng Chuan actually made a profit after withdrawing the funds.

After all, both the non-ferrous metals sector and the financial sector have seen significant increases in stock prices.

Meng Chuan invested over 2200 billion yuan in the financial sector, but withdrew nearly 3000 billion yuan.

Meng Chuan holds too many shares in the non-ferrous metals sector.

Although it is not possible to extract them all in a short period of time.

However, more than 3000 billion yuan has already been withdrawn, and the investment has been recouped.

If the current market conditions hold true, withdrawing all of these funds could bring back approximately 2500 billion yuan.

But in reality, it's impossible.

As whaling operations withdrew over 3000 billion yuan, the stock prices of non-ferrous metals began to fall.

And a situation of oversupply has emerged.

If no one is willing to take it over, even a forced fire sale won't sell it.

It will also cause the stock prices of non-ferrous metals to plummet.

Therefore, after breaking even, whale hunters can only slow down the withdrawal speed.

After the market has absorbed some of the selling, continue selling.

In addition, all of Meng Chuan's previous investments in the stock market were also withdrawn.

Meng Chuan currently holds a total of 1.5 trillion yuan in cash.

Part of this was the more than £200 billion that Shadow Butterfly had withdrawn from Dream Shadow Capital in the UK during this period.

This figure excludes Meng Chuan's 1000 billion yuan investment in CATL.

And the non-ferrous metals sector's profits of around 2500 billion yuan.

Meng Chuan still has $4900 billion in the United States temporarily held by Alice.

That's equivalent to 3 trillion RMB.

Meng Chuan has no plans to transfer the $4900 billion back to China in the short term.

This is just the cash Meng Chuan has on hand. If we estimate the market value of all the companies under Meng Chuan's control...

Meng Chuan's wealth is no less than 8 trillion.

After all, Pinduoduo's IPO provided Meng Chuan with no less than 5000 billion yuan in wealth.

There are also Douyin, Mengpo Guild, Dreamtelecom in the UK, two companies in Elon Ma, and so on.

With Meng Chuan's wealth, he is far richer than the richest man in China, and could even rank among the top on the world's richest list.

Of course, it still has some distance to go compared to an old and powerful family like Warburg.

Even though Warburg is past his prime, he still controls more than $3 trillion in wealth.

That's equivalent to 20 trillion RMB.

Rumors suggest that the Rothschild family controls over $10 trillion in wealth, which is equivalent to 70 trillion RMB.

They are truly richer than a country.

Of course, wealth is wealth, but if we're talking about cash flow, Meng Chuan's cash flow might rank him among the top five in the world.

After all, whether it's Warburg or Rothschild, these powerful financial groups prefer to hold assets in cash.

They don't like holding cash in their hands.

However, there are many channels for them to exchange large amounts of cash in a short period of time.

Therefore, Meng Chuan still has a long way to go and a heavy responsibility to fulfill.

In the following days, Meng Chuan did not train except for his morning breathing exercises.

Because the stock market experienced unprecedented turmoil.

First, the stock market has introduced many measures to restrict off-exchange asset allocation.

Off-exchange margin trading refers to investors borrowing far more money than their own principal through informal channels, such as margin trading companies or individuals, to speculate in stocks.

For example, an investor has 10 yuan in principal and agrees with the financing provider that the leverage ratio is 5 times.

The financing provider would lend him 50 yuan, so he would have 60 yuan to buy stocks.

Currently, the vast majority of margin financing providers in the Chinese stock market are foreign capital.

They are unregulated and grow wildly.

If they forcibly take back the principal, investors will face huge financial losses.

Not only could they lose all their principal, but they could also incur huge debts to the lender due to leverage.

If a large number of leveraged accounts are forcibly liquidated, the stock market will experience a surge in selling pressure in the short term, leading to a decline in stock prices.

This creates a vicious cycle, triggering market panic and leading to a complete collapse.

Faced with the announcement of policies restricting off-exchange asset allocation, foreign capital is no longer hiding its intentions.

Foreign capital first used the media resources it controlled to frequently publish analytical reports and commentaries that were bearish on the Chinese stock market in the international arena.

They deliberately exaggerate some of the structural problems in the Chinese economy and exaggerate the investment risks in the Chinese stock market.

These statements, though carefully crafted and seemingly well-founded, are actually riddled with errors and omissions.

However, their invitation to so-called international financial experts to endorse them has caused concern among many investors who lack judgment.

At the same time, they used complex financial channels to quietly channel large amounts of funds into the Chinese market.

Some funds are disguised as normal northbound funds through the Stock Connect program.

Making small purchases and sales every day may seem like normal trading behavior, but it actually involves secretly accumulating shares in the market while also observing market reactions and regulatory trends.

Another portion of the funds enters the market legally and compliantly through the QFII and RQFII channels, lurking in some heavyweight stocks and popular sectors.

After completing the initial setup, foreign capital began to stir up trouble using algorithmic trading and high-frequency trading.

They use advanced algorithmic models to set up complex trading instructions.

To conduct a large number of buy and sell transactions on a few stocks within a very short period of time.

For example, at a certain moment, a large amount of a weighted stock is suddenly bought at a price higher than the market price.

They created the illusion of a rapid rise in stock price to attract speculative capital from the market.

After the stock price is driven up to a certain level, they suddenly sell off their shares at an extremely low price, causing the stock price to plummet.

Such rapid price fluctuations leave ordinary investors with no time to react, completely leading them by the nose.

Moreover, foreign capital also uses the stock index futures market for hedging and arbitrage.

While they were dumping shares in the stock market, they were also shorting stocks heavily in the stock index futures market.

Because stock index futures prices are closely related to stock market indices, they can make huge profits in the stock index futures market when the stock market falls.

Moreover, they further disrupted market order by spreading false information.

For example, rumors circulate that a large listed company is about to be exposed to a major financial scandal.

This caused the company's stock price to plummet instantly, triggering a panic sell-off across the entire sector.

At this moment, the A-share market is like a city being quietly besieged by the enemy, with danger approaching step by step.

Looking at the constantly fluctuating stock prices on the computer screen, Meng Chuan knew in his heart that a financial war without gunpowder had begun.

However, Meng Chuan remained an observer and did not rush to leave the stage.

"Mr. Meng, the president of Morgan Stanley Asia Pacific just made comments on CNBC, suggesting that there are systemic risks in China's financial reform measures."

The whale hunter suddenly walked up to Meng Chuan, his voice calm yet wary:

"They emphasized real estate companies, comparing the current Chinese housing market to the Japanese housing market in the 80s, saying that the current housing market is not a cyclical adjustment, but a downward trend. They pointed out that the Liu Group's provincial capital project has too much investment and a long payback period, and will inevitably become an unfinished project."

Meng Chuan's face darkened upon hearing this:

"Damn it, this is trying to force my 'private capital' to the surface!"

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