Chapter 145: Old Zhu Erupts, Shengxin Acquisition is Secure

Financial and securities licenses are not sold easily.

Especially since many in the industry estimated that a bull market would arrive again around the May Day holiday, they were even less likely to sell.

Ling Zhiqing and Qian Caiying were actually a bit anxious. They had made covert contact to negotiate for the licenses of Jiahao, Boyuan, and Sengkai, but the results were far from ideal, and for now, they were not for sale.

What if Shengxin could be acquired through indirect means?

...

"Old Zhu? He's a decent guy."

That night, at a cozy teahouse near Hongze, Zhang Long met with Qian Caiying to discuss and plan matters regarding Shengxin.

Qian Caiying's impression of Chairman Zhu, Zhu Fengchun, was actually quite favorable. At the very least, he was much more honest and reliable than the later Chairman You. The key question was whether their plan could succeed.

"Old Zhu is very confident."

Zhang Long was also frowning slightly. Although he did not know how Chairman Zhu intended to operate, he seemed extremely confident in ousting the faction led by Chairman You and Chairman Guan.

Moreover, acquiring a financial company did not mean just taking over an empty shell; some reliable veterans who could work together were still needed. It was impossible to be a lone commander and recruit everyone from scratch to build it up slowly—that would be far too slow.

Shengxin was not a publicly listed financial securities firm, so reselling and acquiring it was relatively easy. Generally, as long as the funds and connections were in place, it was not difficult.

Of course, no matter how easy it was, if someone who didn't want to sell obstructed the acquisition, it would become very twists-and-turns and troublesome.

Therefore, before ousting the faction of Chairman You and Chairman Guan, it was best not to publicize the intention to acquire Shengxin.

Zhang Long and Qian Caiying understood this much.

"How is the current situation at Hongze?"

Changing the subject, Qian Caiying frowned slightly and sighed, "Zhiqing and I are going to pull out. The Ling family has already decided to hand Hongze over to Zhiqing's second brother, Ling Yushan. The handover process will gradually take place over the next few days."

"Let's withdraw the proxy account at the end of the month."

Zhang Long nodded; that shouldn't be too big of a problem. By the end of the month, the Hongze proxy account would have made 3 million, and his other three personal accounts would have each made 9 million, totaling 30 million.

Starting with 70 million after the Chinese New Year, calculated over the last two weeks of February, the average weekly profit rate was 20%!

The percentage wasn't high, but the earnings were substantial. The terrifying profitability of large amounts of capital was now fully exposed.

Unfortunately, the larger the capital, the more stocks needed to be traded; otherwise, buying just a few stocks would easily drive up the share prices, and the hot money or institutions originally meant to piggyback might not step in. Fortunately, Zhang Long maintained a balance and kept tight control throughout.

A net profit of 30 million in half a month—secured.

...

February 26, Tuesday night.

Spearheaded by Zhang Long, Chairman Zhu was formally introduced to Ling Zhiqing and Qian Caiying. It was only here that Chairman Zhu realized why the performance of most peers had been stagnant recently, while Hongze's performance had been getting better and better.

Thinking of the boost Zhang Long had given to the investment department's performance during his final two months at Shengxin, there was no longer any need for doubt—Zhang Long had truly transformed into a dragon.

No wonder he was able to make tens of millions in the stock market within a few months. Hongze had provided 10 million in principal.

They didn't want the profits; they only wanted his operational guidance.

"Your ability is practically like cheating..."

Zhu Fengchun clicked his tongue in amazement. Looking at Zhang Long, he couldn't help but draw a sharp breath. "Your sense of smell is far too acute. Let's not even mention that you can make easy money in a bull market; being able to make money in a bear market is the real treasure. A single man is worth an entire army."

"We need to re-evaluate."

Originally, he had thought of just casually giving Zhang Long some equity shares, but that wouldn't work anymore. Without a substantial figure, Zhang Long wouldn't join Shengxin.

Making tens of millions a month and over a hundred million a year—the larger the capital, the greater the profit. Why join Shengxin without having real authority?

Wasn't making money on your own at home wonderful?

Of course, Zhang Long might not make a profit forever. Perhaps one day he would start losing money, get trapped, and completely crash and burn. The ways of the world are fickle, and smooth sailing is hard to maintain.

However, based solely on the ability and value Zhang Long had displayed so far, he was well worth the gamble, taking the primary role.

Didn't you see that the young princesses of the Ling and Qian families both deferred to Zhang Long, whether it was regarding the lion's share of profits or the right to speak?

...

Even so, it was still much better than making nothing.

With that, Zhu Fengchun left. Since Zhang Long had the ability and was backed by two second-generation scions, there was nothing to worry about. He had the money and the connections; all that remained was to oust the factional forces of Chairman You and Chairman Guan, and then they could negotiate the entry stake. Everything was ready.

To clean up Shengxin and recreate its past glory.

...

February 28, Thursday at the end of the month.

The profit of Zhang Long's Hongze proxy account reached 3 million after the New Year. Funds would be withdrawn tomorrow, Friday, after which his entrusted agency relationship with Qian Caiying would end.

Starting in March, Ling Zhiqing and Qian Caiying would no longer call the shots at Hongze; it would be that fellow Ling Yushan.

From then on, whether Hongze's performance was good or bad was none of their concern. Ling Zhiqing and Qian Caiying would break away to go solo.

Qian Caiying had entered Hongze last October. With five months of dividends and a severance package totaling a net profit of around 5 million, it wasn't bad—at the very least, she hadn't lost money.

As for how much Qian Caiying had made following Zhang Long's operations in her other accounts, that remained unknown.

At least there was no melancholy on her face.

Adding Qian Caiying's 7 million principal in the Hongze proxy account to the 5 million in dividends and severance, the three items combined came to a cool 20 million without breaking a sweat. Pity the wealthy Ms. Qian; her liquid capital was not even as much as a fraction of Zhang Long's spare change.

Comparing yourself to others would only make you angry, so she stopped comparing.

As for how much capital Ling Zhiqing had, Zhang Long had even less idea, though it certainly wouldn't be less than 10 million.

The two women could definitely scrape together 30 million.

"It's a bit underwhelming..."

Zhang Long clicked his tongue in a sigh, earning a sharp,嗔ed glare from Qian Caiying opposite him. "Aren't you going to take the lion's share? The major investor will definitely be you, not us."

"We still don't know the final valuation for our entry into Shengxin, but it won't be lower than 100 million."

"Not counting the Shanghai headquarters."

"The two major branches in Beijing and Hangzhou are still barely operating. Although branches in Tianjin, Nanjing, Suzhou, and others have been shut down, they will still be included in the bundled evaluation, not to mention channel value, future appreciation, and so on."

"A valuation of 100 million is the absolute floor, not a ceiling."

Hearing this, Zhang Long nodded. With a reputation shattered to pieces, even the most worthless stripped-down financial and securities license would fetch no less than 50 million for a packaged deal. For Shengxin, where the headquarters and the two major branches in Beijing and Hangzhou could still barely operate, a valuation of over 100 million was very reasonable and acceptable.

And this was only because it was a bear market that things were so dismal. In a bull market, as long as performance wasn't terrible and branches were blooming and operating all over the country, it would be worth at least 1 billion.

Right now, this truly amounted to buying at the bottom.

...

"Apologies for the long wait."

On Friday, March 1, after withdrawing the 3 million profit from the Hongze proxy account, Zhang Long arrived at the Real Estate Management Bureau to officially process the transfer ownership of the two luxury mansions in Jinxiu Huating.

All the paperwork had been completed over the past few days, and paying the money and transferring the title today was the final step.

"We just arrived as well."

Zhu Changhai shrugged with a light smile. Although parting with his beloved house brought a tinge of reluctance, sacrifices had to be made for the development of his new blueprint. Besides, he still had a better manor villa to live in; Jinxiu Huating wasn't missed.

Moreover, selling it to Zhang Long was quite good. Only someone acting alone would agree to his sales conditions; otherwise, who else would accept a top-floor duplex that couldn't be moved into for two years, coupled with a buyback option at any time?

Unless someone bought it purely for investment rather than occupancy, it might work. No one who genuinely wanted to move in would buy it.

Being able to sell it so quickly and receive full payment promptly was already a stroke of luck; he hadn't had to wait long.

Not to mention that Zhang Long also knew Zhu Fengchun.

Zhu Changhai had heard all about Zhang Long's keen sense for the financial markets from his cousin. During his time at Shengxin, his performance had been explosive, and trading on his own in the subsequent months had netted him tens of millions. The man was a talent, and the two of them were currently discussing cooperation.

Specific details hadn't been discussed yet, but it was a good thing.

While it was a good thing for Zhu Fengchun and Zhang Long, it was anything but for certain other people. For instance, swords were currently crossing in the Shengxin boardroom:

"Old Zhu, have you lost your mind..."

Chairman You took a deep breath. "The bull market is about to arrive, and you're pulling a split at a time like this?"

"Wrong, it's not a split!"

Zhu Fengchun glanced around the room, his tone resounding and resolute. "To pacify the exterior, one must first settle the interior. Never mind that we don't even know when the bull market will kick off; even if it really starts around May Day, so what? Having pig-teammates around will only drag us down."

"I don't want to drag things out at Shengxin anymore. Staying any longer will only lead to going down with a sinking ship. Better to quickly resell it for a good price to keep our capital intact, rather than taking a bloody loss."

"Those who share my thoughts, please raise your hand. Whoever wants this Shengxin can have it. Farewell!"

As Zhu Fengchun's voice fell, three other directors immediately raised their hands in succession. They weren't going to waste time here anymore either.

...

"Are you guys joking?"

In the Shengxin boardroom, Chairman You and Chairman Guan were dumbfounded. Those who raised their hands, just like Chairman Zhu, were the honest and hardworking hands at Shengxin. If the middle management and employees led by these people walked out as well, Shengxin would be finished.

The executive vice president was also dumbfounded. How did Shengxin suddenly go from bad to worse? Honest folks like Chairman Zhu and the others had erupted—were they genuinely done working here?

"Old Zhu, don't be rash..."

The executive vice president immediately spoke up. "If you have any grievances, you can voice them. Everything is negotiable."

"No need, my mind is made up."

Zhu Fengchun shook his head flatly. "According to the rules, internal buyouts of our equity shares take priority within Shengxin. If the internal parties don't want them and won't digest them, we will look to sell them externally. I have feelings for Shengxin, but they're almost gone."

"I refuse to continue breaking my back working for people who can't think straight and only hold us back. I'm tired."

Not to mention the dark and embarrassed looks on the faces of Chairman You, Chairman Guan, and others, the neutral faction was also somewhat stunned. If Old Zhu and the others all left, who was going to do the work at Shengxin? Stop joking around.

Even if they ousted Chairman You and Chairman Guan, they couldn't let Old Zhu and the others leave! A consensus was instantly reached.

Who was actually working and contributing to Shengxin? No one present was a fool; they knew Old Zhu was forcing a showdown.

Keep Old Zhu, or keep Chairman You and the others?

"Old Zhu, don't be impulsive."

The representative of the neutral faction echoed the executive vice president's words, but after finishing, he looked straight at Chairman You. "I imagine no one wanted things to reach the state they're in today. The first explosion of the spring in March turned out to be an internal bomb."

"Resentments aren't born in a single day, and emotions don't accumulate overnight. It's time to make a decision on who stays and who goes in this Shengxin venture."

"Take tomorrow and the day after—Saturday and Sunday—to think it over carefully, and we'll hold a vote next Monday. No one is forced."

The board meeting had essentially reached a conclusion.

Once honest men erupted, failing to provide a satisfying result was simply not an option. If Old Zhu and his group wanted to set up shop elsewhere, there were plenty of boards willing to take them in. They could not be allowed to leave!

If anyone had to leave, it should be Chairman You, Chairman Guan, and their cohort.

If they clung on and refused to leave, then they couldn't blame other injured parties for being impolite. Thus, the outcome was basically set.

...

"Huh, really that simple?"

That night, Zhang Long met with Zhu Fengchun and learned about the scene at the Shengxin board meeting that day. Of course, it certainly wasn't as simple as Old Zhu made it sound; covert lobbying and other maneuvers behind the scenes must have been numerous, but that didn't matter.

What mattered was that the plan was about to succeed.

Naturally, everything still depended on the final outcome of Monday's Shengxin board meeting, so for now, they kept a low profile.

"Hoo—waiting quietly for good news."

A flash crossed Zhang Long's gaze as his heart settled quietly. Just this afternoon, his CFA Level 1 certificate had arrived, but because the stock market was closed, he hadn't had time to verify it. When the market opened next Monday, would his Golden Finger upgrade to Lv.2? Or would there be some other new functions after the upgrade? He was eagerly looking forward to it.

2013 was getting more and more flavorful.