Chapter 66 - Let Huayu Handle It
In the days that followed, Huayang Group began its operations. In this era, securing tens of billions of liquidity is no small feat, and even Huayang Group had to exert considerable effort to stabilize the situation.
To acquire this much liquidity, methods such as bridge financing, fund allocation, and other tactics were employed. However, Huayang Group also faced capital costs. With an annual interest rate of 36% from Fang Hong, Huayang's capital cost also had to be accounted for, reducing the profit margin by 12% to 16%.
This meant that Huayang Group's final net profit margin for this transaction would hover between 20% and 24%.
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By Monday, November 17th, the A-share market had closed with substantial volume, marking a +2.22% increase. Considering the current market conditions, maintaining a trading volume of 100 billion yuan was quite an achievement.
Recently, the market had enjoyed a brief but encouraging rally, with the Shanghai Stock Exchange Index closing at 2030.48 points. From a low of 1664.92 points, it had surged by over 21%, entering what many referred to as a technical bull market.
However, just as the market had begun to show promise, it quickly took a downturn.
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On Tuesday, the market opened strong, rising in the morning to entice more investors. However, by the afternoon, it collapsed dramatically. The stock index plummeted by -6.31%, closing at 1902.43 points, a stark drop from the previous day's highs. The market had briefly flirted with the 2000-point mark but fell into confusion by breaking below 1900 points during intraday trading.
Fang Hong had been continuously trading through his personal securities account, not only to make a small profit for his girlfriend Hexuan but also to bolster the confidence of Hua Yongming and his son. Fang Hong knew that Hua Yongming, aware of his close connections with the executives at Xinhong Securities, was likely paying attention to his trading activity.
Although Fang Hong's trading was illegal, he didn't mind. He believed that by showcasing his market skills, he would impress Hua Yongming, ultimately boosting his own standing in the eyes of the Huayang Group.
Recently, Fang Hong's operations had focused on arbitraging Zhongxin Securities, largely thanks to Ashin's reluctance to leave the stock. Zhongxin Securities had dropped by -7.92% on this day, but Fang Hong had exited early when the stock rose by +2.62% during morning trading. He had profited about 510,000 yuan from this move, bringing his account to 22.69 million yuan. His cumulative return rate had now reached a staggering +46,731.75%, meaning his funds had grown 467 times since his initial investment.
By the end of the trading day, Fang Hong had re-entered Zhongxin Securities with a full position, betting that the market would soon reverse.
The stock had a significant daily trading volume, surpassing 5 billion yuan, which gave Fang Hong ample space to maneuver with his 20 million yuan in capital.
He had grown quite attached to this stock, relishing the high volatility and the potential for significant arbitrage profits.
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Once the market had closed, Fang Hong prepared to leave his community. Instead of heading to school, he planned to visit the office of the newly appointed general manager at Quantum Dance, as the company had recently transitioned from being a small studio to a full-fledged business operation.
Rather than using his usual high-profile car, which was maintained by Cao Chenghui, Fang Hong opted for a more inconspicuous private car. It was a modest vehicle that wouldn't attract much attention. If not instructed otherwise, Cao Chenghui would typically send him a Maybach or a Rolls-Royce, but Fang Hong had grown fond of this more discreet lifestyle. He knew that as Qunxing Capital grew, he would no longer be able to walk the streets unnoticed. The time when he could live in relative obscurity was rapidly dwindling.
As he was about to hail a taxi, he noticed a group of young men approaching from his left. Among them was Zhang Li, the tattooed man who had been forced to pay a debt a few months earlier.
Fang Hong frowned slightly, sensing that they were coming for him.
"Brother, you've been hard to find. You really live in a fancy community, huh?" Zhang Li said, walking up to him with a mocking tone. He threw an arm around Fang Hong's shoulder before lowering his voice threateningly. "Hand over your phone. Be honest, or you'll find out what happens next."
Fang Hong sighed internally, not for himself, but because he knew exactly what Zhang Li was after: the recording from their previous encounter.
Fang Hong quickly retrieved his phone, knowing that Zhang Li wanted to destroy the evidence. Meanwhile, he recalled Zhang Li's background through the memories of the original owner. Zhang Li worked for a private lending company called "Yuanmao Finance" in Xincheng, which was known to be involved in usury. Yuanmao Finance had strong ties to Huayang Group, making it likely that Zhang Li was acting on behalf of the group.
"Let Huayu handle it," Fang Hong thought decisively. He was not going to deal with this situation personally.
Without saying a word, Fang Hong handed his phone to Zhang Li, who immediately removed the battery and destroyed the SD card inside. He then reset the phone, formatting it entirely.
Zhang Li, smirking, took out a white note and waved it in front of Fang Hong. "Brother, should I collect the 670,000 with interest now?" he said, his grin widening.
Fang Hong didn't even glance at the note. It was no different from a robbery. "670,000, right? Fine, I'll have someone bring it over. Just give me back the phone," he said flatly.
Zhang Li froze. He hadn't expected Fang Hong to comply so easily. For a moment, he was at a loss for words.
After a brief pause, Zhang Li handed the phone back, still trying to maintain his tough demeanor. "Boy, if you want to live peacefully in Xincheng, don't play any tricks. If you call the police, you'll regret it."
Fang Hong ignored him and immediately called Huayu. Once the call connected, he spoke quickly: "Prepare 670,000 in cash and have your driver bring it to Binhu Park. I'll wait there."
Huayu, surprised but not asking questions over the phone, responded, "Understood. I'll get the money right away."
After ending the call, Huayu put his phone down and instructed his assistant to prepare the 670,000 yuan in cash. The amount, in 100-yuan bills, was hefty, weighing over 15 kilograms.
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This marks the end of the chapter.