Chapter 53 - Consensus Reached
Hua Yongming's earlier intimidating speech was actually a form of testing. Most people would have crumbled under such pressure. However, for someone of his caliber, resorting to threats or violence would be the most foolish and impractical approach, full of potential pitfalls.
As their conversation deepened, Hua Yongming gradually disregarded Fang Hong's young age and began treating him as an equal. More importantly, he shifted his approach, genuinely seeking Fang Hong's insights and asking thoughtful questions.
By this point, Hua Yongming had already abandoned the idea of bringing Fang Hong under his command. A person like him would never comfortably submit to anyone's authority. However, recognizing Fang Hong's extraordinary potential, which had not yet fully materialized, Hua Yongming saw an unparalleled investment opportunity. Supporting him at this stage could yield unimaginable returns in the future.
At this moment, Hua Yongming was considering reallocating the 500 million yuan originally intended for Fang Hong toward an investment in Qunxing Capital. However, such a large sum could not be handed over lightly—he needed further confirmation of Fang Hong's true abilities and their extent.
Fang Hong spoke with an air of confidence, his thoughts well-organized:
> "If you analyze every major financial crisis in history—whether it was the Dot-Com Bubble of 2000 or the Asian Financial Crisis of 1997—you will find that these crises always present golden investment opportunities. In the one to two years following a financial collapse, asset holders tend to experience staggering returns."
> "After the dot-com bubble burst, the Nasdaq Index rebounded from just over 1,100 points to more than 2,100 points in a little over a year, marking a surge of more than 90%. Similarly, after the Asian Financial Crisis in 1997, the Shanghai Stock Exchange Index rose to 1,500 points, reflecting a growth of over 70%, while the Hang Seng Index recorded an increase of more than 40% in the same period."
> "This is not a matter of path dependence or mere empirical speculation. There is a deep-rooted macroeconomic logic behind it. Historically, in response to any major crisis, governments around the world have consistently relied on Keynesian economic strategies to prevent prolonged recessions. In essence, large-scale stimulus measures inevitably lead to a rapid recovery in aggregate demand."
At this point, Hua Yu, who had been silently observing, couldn't help but interject, "So, you're saying that a major economic stimulus policy will be introduced soon?"
Fang Hong calculated the timeline in his mind. Today was Tuesday, October 28, 2008. If nothing unexpected happened, the "Four Trillion Stimulus Plan" would be officially announced on Saturday, November 9. The very next trading day, the A-share market would skyrocket by over 7%, marking the emergence of a true market bottom. From that point onward, the downward trend would shift into a historic reversal, rather than a mere temporary rebound.
With unwavering confidence, Fang Hong responded:
> "It should happen very soon. Based on my analysis, a major stimulus plan will be rolled out within the next month, and its scale will exceed everyone's expectations."
> "The stock market has likely reached its lowest point already. At most, it may drop another 2-3%, bottoming out at around 1,665 points. Beyond that, we are looking at a turnaround of epic proportions."
Hua Yu, seated next to him, was visibly shaken by Fang Hong's certainty. He instinctively checked the time—it was already past 9:30 AM. He glanced at Fang Hong before turning to his father, then suddenly spoke with a smile, "Mr. Fang, you sound extremely confident. Why don't we check the current market performance and see if your predictions hold?"
After finishing his sentence, Hua Yu stood up, left the living room briefly, and returned with a laptop. He opened a stock market website, navigated to the Shanghai Composite Index, and switched to the intraday time-sharing chart.
The moment the graph loaded, Hua Yu was stunned.
Hua Yongming, who had been silently observing, immediately caught his son's reaction.
"It's really down by 3%?" Hua Yu murmured, his eyes fixed on the screen.
> "The lowest point of the day was 1,664.93 points, and it has already started rebounding…"
His voice carried a mix of awe and disbelief. He then glanced at his father before shifting his gaze back to Fang Hong.
To predict a financial market trend with such pinpoint accuracy—it was no wonder Fang Hong had managed to generate a 290-fold return on his investments in just three months.
At that moment, Hua Yongming suddenly laughed and asked, "So, how much investment are you looking for? Huayang Group is ready to fund your venture."
Fang Hong smiled. "The more, the better."
By now, Hua Yongming had already made up his mind. After their conversation, he was convinced of Fang Hong's exceptional talent. However, his next words caught everyone off guard:
> "I will invest 500 million yuan in you. How much equity in Qunxing Capital will that secure me?"
Without hesitation, Fang Hong answered, "2.5%."
The room fell silent.
Even someone as experienced as Hua Yongming nearly lost his composure upon hearing this. As for Hua Yu, his expression froze completely.
A 2.5% stake for 500 million yuan meant that Qunxing Capital was being valued at 20 billion yuan—in 2008.
For reference, Huayang Group's total assets at this time amounted to only 37.5 billion yuan.
Furthermore, Hua Yu had already conducted due diligence on Qunxing Capital. The company was practically an empty shell, with little to no assets or operations.
And yet, Fang Hong confidently declared it to be worth 20 billion yuan?
Hua Yu snapped out of his shock and stared at Fang Hong. "So you're saying that 500 million yuan can only buy 2.5% of the company?"
Fang Hong remained composed.
> "To be frank, I am not under any financial pressure. I have more than enough capital now, and I will continue to do so in the future. Your investment is welcome, but not necessary."
Hua Yongming chuckled, shaking his head. "For an offer like this to make sense, either you're crazy, or I am."
Fang Hong simply smiled without responding.
After a brief silence, Hua Yongming suddenly spoke again.
> "Fine. I'll take your offer. But not 500 million—I'll double it. I will invest 1 billion yuan, but I have one condition."
At this moment, Hua Yu was completely dumbfounded.
Huayang Group's total cash flow was only 3.5 billion yuan. For his father to invest 1 billion yuan—nearly one-third of the company's liquid assets—into an empty shell company, and with no control rights whatsoever…
If this wasn't madness, what was?
Fang Hong, unfazed, replied, "Please state your condition."
Hua Yongming glanced at his son before turning back to Fang Hong with a smile.
> "Let my younger son, Hua Yu, join your company and work under you."
Hua Yu was startled by this arrangement but chose to remain silent, trying to comprehend his father's reasoning.
The intention was clear—placing Hua Yu in Qunxing Capital would provide Huayang Group with some level of oversight and influence over their 1 billion yuan investment.
However, what Hua Yongming didn't realize was that Fang Hong was ecstatic about this condition.
With Qunxing Capital still in its infancy, it desperately needed an experienced management team and high-value connections. If Hua Yu joined, Huayang Group's vast resources and networks would inevitably follow.
As for concerns about Huayang Group's influence within Qunxing Capital, Fang Hong wasn't worried at all.
He nodded calmly and replied, "No problem."