Chapter 50: [This Person is Not Simple]
Fang Hong sat in front of the computer, his eyes fixed on the market software displaying the Shanghai stock index closing price of 1723.35. He paused for a moment, then began typing on the keyboard, entering the trading codes of several stocks. These were the core assets of the A-share market, and now, seeing their current prices, he couldn't help but feel greedy.
The A-share market had fallen into an epic "gold pit."
Mao Yao's stock price had plummeted by over 60%, now standing just above 90 yuan per share. Wu Liangye had seen its price cut by more than 76%, now hovering around 12 yuan per share. Other stocks like Wanhua Chemical, priced at just above 8 yuan, and Yili shares, now under 7 yuan, and Tuobo Bank, at just 6 yuan, all seemed like bargain prices.
These core asset stocks were practically being sold for a pittance. After more than a decade of interventions, the potential for massive returns on investment was now extremely high, perhaps dozens or even hundreds of times the initial investment.
For Fang Hong, the return on investment from his securities account in the past three months was even more staggering. His cumulative rate of return had reached a mind-boggling +28,908.45%, meaning his capital had grown by 289 times.
But despite this huge percentage increase, what did it really mean?
His total assets hadn't yet surpassed 14 million.
Short-term speculation might be a "skill," but investing in core assets was the "way forward." These core asset stocks could accommodate large amounts of capital, and scale was the key, not just the rate of return.
If Fang Hong could invest 100,000 yuan and make a 289-fold return, he would earn 28.9 million. But if he could invest 1 billion yuan and achieve a 10-fold return, his profit would be 10 billion yuan.
28.9 million versus 10 billion—the answer was clear. Absolute profit, not just percentage return, was the real goal.
Fang Hong stared at the screen for a moment longer, then turned off the market software, shaking his head. "Even a smart woman can't live without rice."
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Later that afternoon, at Huayang Villa in Xinhewan District.
Hua Yu walked into his father's study holding a file. "Father, we've gathered detailed information on Fang Hong."
In the study, Hua Yongming, the head of Huayang Group, was seated, writing calligraphy. His study exuded a sense of antiquity, and he did not resemble the leader of a multi-billion-dollar capital group. "Confucian businessman" might be the most fitting description for him.
Hua Yu stepped forward, taking the brush from his father's hand and asked, "Father, after more than 20 days of investigation, what have we found?"
As Hua Yu prepared tea for him, Hua Yongming leaned back casually. "What's the result?"
Hua Yu nodded and said, "Fang Hong, born on September 1, 1988, is currently 20 years old. He's a sophomore in the Computer Science Department at Xincheng University, and his family background is humble, coming from the lower working class."
Hua Yu continued, "Currently, Fang Hong and his five roommates—Xu Jingren, Wang Ping, Sun Xin, Lou Gaoyuan, and Yuan Jie—have jointly founded an Internet company called Quantum Jump. The company has launched a social networking site, Quandong Weibo, which is somewhat like Twitter in North America."
Hua Yongming listened intently, then took a sip of tea as he closed his eyes. "Go on," he said, intrigued.
Hua Yu proceeded methodically. "What surprised me, Father, is that the structure of the companies Fang Hong has established is incredibly clever. It exploits certain regulatory loopholes with precision. Although the structure itself isn't overly complex, the design is brilliant. Our lead lawyer even praised it and suggested that we could adapt it for our own use."
At this, Hua Yongming opened his eyes in surprise. "Is that so? How has he designed it?"
Hua Yu laid out the information, flipping through the pages of the document. "Fang Hong first set up a single-member limited company, Xingxing, followed by two limited partnerships, Zhenxing and Shenxing. The main company, Xingxing, serves as the general partner of the two limited partnerships. He then founded Qunxing Capital, a joint venture holding company, using Zhenxing and Shenxing as the main shareholders."
He continued, "Based on our investigation, it appears that Qunxing Capital is the ultimate parent company. We found that Quantum Jump's shareholders include Qunxing Capital, although the exact shareholding is still unclear."
Hua Yu explained further, "Through this series of companies, Fang Hong has not only achieved complete control but has also minimized his personal risks to the bare minimum. The design is impeccable."
Hua Yongming read the materials quietly, then asked after a long pause, "Are you sure about his family background? Is it really just a working-class background?"
That didn't seem likely, Hua Yongming thought.
Hua Yu nodded confidently. "Father, I had doubts about this too. I went over it multiple times, and I'm sure that his background is indeed humble. There are two possibilities: either he comes from a powerful background that we can't trace, or he is an exceptionally gifted individual. I lean toward the latter because his ability to mislead us indicates a rare talent."
Hua Yongming nodded thoughtfully, agreeing with his son's analysis.
Hua Yu added, "But, Father, there's one thing I don't understand. Why are all of his companies registered onshore? Why not use offshore companies and the VIE structure?"
Hua Yongming smiled slightly. "The VIE structure may seem powerful, but remember, China has never explicitly approved or prohibited it. It's a gray area. If an official document were to be issued declaring the VIE invalid, what would happen?"
Hua Yu was momentarily taken aback by this point.
Hua Yongming continued, "If Fang Hong designed such an intricate system, it's likely that he understands the potential of offshore registration and the VIE structure. But by registering his companies onshore, he's making a statement from the very start—he's not trying to circumvent the law."
After a pause, Hua Yongming added, "This person is not simple."
At these words, Hua Yu was taken aback. He hadn't expected his father to have such a high opinion of Fang Hong. There weren't many people like him. After some thought, Hua Yu asked, "Father, if he is indeed as capable as you say, recruiting Fang Hong to join Huayang Group might be difficult..."
Hua Yongming nodded. "Yes, someone like him wouldn't want to remain subordinate to others for long. However, this is just a preliminary assessment, and it's too soon to make a final judgment. We can only know for sure after we meet him. Let's invite him here."
Fang Hong had left an impression on Hua Yongming—not as a genius of the past, but as someone truly extraordinary.
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