A new week began.
It was Monday, October 6th. The group staying at the seaside estate in San Lucas, Baja California, left before 7:30 a.m.
It had been an exhausting yet fulfilling weekend.
Britney Spears, Vanessa Johnson, and the other girls only perked up a little after boarding Simon's Boeing 767. When they had arrived early on Friday, they had taken a regular Gulfstream V. This was their first time stepping onto Simon's legendary Boeing.
However, curiosity couldn't overcome fatigue. Once the plane took off and they had briefly explored the cabin, the girls headed to the bedrooms to catch up on sleep.
Apart from Simon, only the slightly older Amy Adams, Jessica Chastain, and Lena Kane remained awake. Lena formally informed Amy that she would be resigning from her current position to become Jessica's agent.
Now that she had Simon's backing, Lena could have easily taken both women under her wing without any repercussions. However, she didn't plan to do so. Managing two actresses who were both on the verge of breaking into the A-list and were potential competitors would make it difficult to maintain fairness. Over time, this could lead to conflicts, so it was better to focus on just one.
More importantly, Lena now had more options.
Not only did she have Jessica Chastain and Paul Greengrass, but Simon had also essentially handed her The Blair Witch Project, which Paul Greengrass would be directing. This would keep her busy for a long time, allowing her to develop a few more promising clients along the way.
Unlike the girls who went to sleep, Simon got straight to work as soon as he boarded the plane.
While it was morning on the West Coast of the U.S., it was already evening in Asia.
Sitting in the office at the front of the Boeing 767, the first piece of news Simon received was that the Hong Kong stock market had plummeted.
In fact, after reaching a peak of over 16,000 points in early August, the Hong Kong stock market had experienced two cycles of sharp rises and falls over the past two months due to the Asian financial crisis, each cycle lasting about a month.
The first major drop occurred from late August to early September, with the index falling from over 16,000 points to around 12,000, a decline of nearly 25%. The second trough, from early September to early October, saw the index dip into the 13,000-point range before rebounding to 15,000 points.
As of last Friday's close, the Hang Seng Index stood at 15,133 points.
To the average person, these fluctuations might seem like normal market volatility during a financial crisis. Even most financial professionals might struggle to see the bigger picture. However, for top players in the game, the underlying dynamics were clear.
The two cycles of sharp rises and falls were the result of international speculators accumulating stocks and building up their positions.
During this period, most governments in Asia were focused on their currencies, and Hong Kong was no exception. With the Thai baht, Indonesian rupiah, and Malaysian ringgit all collapsing, Hong Kong had been on high alert, significantly raising short-term interest rates over the past few months.
However, this time, the target of the international speculators wasn't the Hong Kong dollar but the Hong Kong stock market, which had more than doubled in the past two years and was clearly in a bubble. In fact, Hong Kong's strict defense of its currency had led to a cash crunch in the market, making the stock market even more vulnerable.
Today, unlike the previous fluctuations, the real attack began.
On October 6th, the Hong Kong stock market fell by 2.3%, dropping from an opening of 15,133 points to close at 14,776 points. While a 2.3% drop might not seem significant, it was the largest single-day decline in the past 30 days.
And this was just the beginning.
After getting a detailed overview of Monday's market activity in Hong Kong, Simon made several calls to China and New York to discuss various matters.
Simon had no intention of touching Hong Kong.
However, in North America, since last month, the hedge fund team at Cerberus Capital Management had been positioning itself, building significant short positions in the Dow Jones, S&P 500, and even specific hot stocks.
After all, in the original timeline, the first market-wide circuit breaker in the U.S. since the 1987 crash occurred in October 1997, specifically on October 27th, when the Dow Jones Index fell by more than 7% in a single day.
In this timeline, due to the Nasdaq crash in March, the first circuit breaker had already been triggered, but that was for the Nasdaq.
The Dow's maiden circuit breaker was still pending.
According to George Soros's theory of reflexivity, which posits that market participants can influence market trends, small players might not matter much, but the actions of major players could create significant waves. And with the Westlake system being such a massive force, even a slight move could cause ripples.
Thus, not only had the Nasdaq's trajectory changed due to the inclusion of a behemoth like Daenerys Entertainment, but the Dow Jones Index had also diverged from its original path.
In March of this year, before the Nasdaq crash, the Dow Jones had nearly reached 8,000 points.
However, compared to the gloomy tech stock market, the Dow had only followed the Nasdaq downward for three months before rebounding in the second half of the year. The recent Asian financial crisis, which had spurred a flight to the U.S. dollar, had actually boosted the Dow, which had recently climbed back above 7,000 points.
Yet, in an era of globalization, when the impact on related markets exceeds a certain threshold, no country or region can remain entirely unaffected.
With the second wave of the financial crisis approaching, the U.S. stock market was also poised to take a hit.
Even if it didn't experience a circuit breaker-level crash like before, a downward trend was almost certain. Of course, as someone who had lived through this before, Simon's predictions, even with the Westlake system's growing influence on the market, were far more accurate than most.
Such an opportunity couldn't be missed.
The Nasdaq market was already in a clear downward spiral, making it difficult for Cerberus to establish short positions even if they wanted to. After all, the hedge market was a zero-sum game; you couldn't just create a $10 billion short position out of thin air—someone had to take the other side of the bet.
But the Dow and S&P 500, which had recently rebounded to new highs, were hot topics for speculation.
While Simon was confident in his bearish outlook, many others were bullish, believing that the U.S. dollar would continue to flow back, driving the market higher.
Thus, although Simon had instructed Cerberus to steer clear of Hong Kong, both Cerberus and Soros's Quantum Fund were keeping busy. If played right, the profits from domestic operations wouldn't be much less than those from Hong Kong.
In the front cabin study.
Simon had just ended a video call with a Cerberus fund manager when Aide A called on the intercom, informing him that Soros was on the line.
Simon reconnected the video call.
After exchanging greetings, he learned that Soros had left New York and was now in Hong Kong. Soros also mentioned that he had just had another secret meeting with a high-ranking Chinese official earlier that day.
This surprised Simon.
Soros didn't beat around the bush. "Simon, after careful consideration over the past few days, I've decided to accept your advice."
Simon smiled at the jovial old man on the screen. "A wise choice."
He immediately understood.
Having made this decision, coupled with the secret meeting Soros had just mentioned, it was clear that the financial titan was planning to fully commit to betting on China alongside Simon. Not only that, but Soros also intended to turn the tables on the international speculators targeting Hong Kong, thereby earning a significant favor.
This had been Simon's original plan, but Soros was now cutting out the middleman.
Simon didn't mind.
Regardless, it was the result of his efforts in lobbying and mediation, and such a favor couldn't be overlooked.
Soros continued with a smile, "You've probably guessed it already. Yes, I'll follow your initial suggestion and make a public statement, including substantial investments in China. The reason I reached out to you today, Simon, is that I've put together a list of potential projects, which I've already sent to your assistant. I'm not very familiar with China, so if you could join me in this, that would be ideal. To be honest, this was also the suggestion of the official I met with today. He hopes I can bring you on board."
As Soros spoke, Aide A knocked and entered, quietly placing a freshly printed document on Simon's desk before leaving.
Simon opened the file.
Glancing at the table of contents, the first item made his expression shift slightly.
Hangzhou Xiaoshan Airport.
Soros really had a soft spot for investments in China's aviation sector.
In his memory, a certain controversial Chinese aviation conglomerate that eventually went bankrupt had initially been funded by Soros.
Continuing to scan the list, the next item caught his attention.
Suzhou-Hangzhou Expressway.
Another major project, and one Simon wasn't particularly keen on.
While China was still in its developmental stage, Simon knew that with the economic boom to come, especially in the Yangtze River Delta region, expressways would become incredibly lucrative—and incredibly complicated.
Simon recalled an anecdote.
A businessman had lent money to a local government, which, facing a financial crisis, repaid him by building a toll station and allowing him to collect fees for five years. The businessman recouped the debt in just two years. Sensing that continuing to profit from the toll station would be unwise, he dismantled it immediately after recovering his money.
Yet, on the other hand, China's expressways were often portrayed as money-losing ventures.
The intricacies of it all were mind-boggling.
It wasn't until Simon reached the third project that his interest was piqued.
China Telecom.
This wasn't the Hong Kong-listed subsidiary, China Telecom (Hong Kong), which was actually the predecessor of China Mobile and primarily focused on mobile communications. After its IPO last year, it had been gradually integrating mobile communication assets from various provinces.
According to the brief description in the document, the funds raised would be used for broadband internet infrastructure development.
Many people didn't understand the origins of companies like China Mobile, China Telecom, and China Unicom. In simple terms, apart from the special case of Tietong, which belonged to the Ministry of Railways, all these telecom companies had originally been part of the Ministry of Posts and Telecommunications. China Mobile was the first to spin off, listing as China Telecom (Hong Kong) in the late 1990s to raise funds for expanding its mobile communications business.
Having gotten a head start, China Mobile had maintained its dominance in the mobile communications sector. Later, both China Telecom and China Unicom were spun off from the postal and telecommunications network, along with entities like China Netcom and China Satcom.
After a period of fierce competition, the industry eventually consolidated into three major players.
Now, it seemed that China's telecom giants would be established earlier than in the original timeline.
Although there were only three projects listed, even without reading the detailed descriptions, Simon could guess that the total investment would be in the range of $1 billion.
For Simon, $1 billion was pocket change, but for Soros, even with over $20 billion under management, it was a significant commitment. After all, that money wasn't his, and a misstep could tarnish Quantum Fund's reputation.
After skimming the table of contents, Simon flipped to the main text, not neglecting Soros, who was still on the line. "George, since that's the case, what about Russia? What's your plan there?"
Soros replied, "I've already started withdrawing funds from Russia's stock and bond markets. With many investors, including those from South Korea, who have significant stakes in Russia, also pulling out, I'll likely incur some losses, but I should be able to exit in time. The real estate investments are more complicated and will take longer to unwind."
Simon simply nodded.
In truth, if one wasn't overly eager for quick profits, Soros's investments in Russia—whether in mining, energy, or telecommunications—were solid assets that could yield good returns with patience.
However, Simon saw no need to share this insight with the old man.
If Soros insisted on selling at a loss to exit, Simon had long considered acquiring assets like those of Russian Telecom Investment Company to manage them patiently.
Simon had the patience for that.
Of course, if Soros did decide to sell, it wasn't entirely his fault.
Quantum Fund was, after all, a hedge fund focused on short-term gains. Even in equity investments, the goal was to see results within three to five years and then cash out.
Simon, on the other hand, was willing to hold onto investments for a decade if necessary.
Seeing Simon's noncommittal response, Soros smiled and asked, "Simon, would you mind if I got involved in Ukraine? Specifically, the Rivne Oblast?"
"No problem," Simon replied readily. "But, George, to be honest, there's no room for speculation in Rivne. These are long-term industrial investments."
"As long as the returns are reasonable," Soros said. Then, noticing that Simon's attention remained on the document in front of him, he added, "In that case, Simon, let's end here for today. It's already past midnight in Hong Kong, and this old man needs his rest. Once you've reviewed the document, give me a call tomorrow."
Simon, however, stopped him. "George, I almost forgot. When do you plan to make your move in Hong Kong?"
"That's a rather sensitive question."
Simon simply smiled, waiting.
After a brief pause, Soros also smiled and gave a number: "10,000 points."
Simon nodded.
They exchanged goodbyes, and Soros hung up first.
10,000 points, of course, referred to the Hang Seng Index falling to around 10,000 points.
This was expected.
If Soros were to immediately oppose the mainstream speculators, it would only delay the inevitable plunge of the Hang Seng Index, much like how Simon hadn't tried to prop up the Nasdaq at 7,000 points.
Once the Hang Seng Index dropped to 10,000 points, it would be a reasonable level for the Hong Kong market, given its backing by mainland China. At that point, Soros could publicly express his bullish stance and solidify various collaborations with mainland China through Hong Kong, achieving the best possible outcome.
As for when the Hang Seng Index would drop to 10,000 points, it wasn't far off—likely by the end of this month.
Clearly, the three projects Simon had in hand needed to be finalized by then.
Simon spent another ten minutes reviewing the materials.
The three projects were:
1. *Hangzhou Xiaoshan Airport: Planned since 1993, construction was set to begin by the end of the year. The project was likely being offered to foreign investors to alleviate financial pressures. With a total investment of 2 billion RMB, the plan was to sell a 35% stake, raising 700 million RMB. Soros's interest in this project likely stemmed from Simon's initial suggestion, as the old man had a fondness for the aviation industry.
2. Suzhou-Hangzhou Expressway: More accurately, the Su-Jia-Hang Expressway, which passed through Jiaxing, with a total length of about 100 kilometers and a planned investment of 4 billion RMB. Unlike the nearly underway Xiaoshan Airport, this project was still in the planning stages. The detailed materials indicated that the primary issue was a lack of funds, with the project being proposed for over a decade without progress. This time, the goal was to attract full foreign investment.
3. China Telecom's New Financing Round: The plan was to raise $2 billion, the largest of the three projects. However, in the context of broadband network construction, $2 billion was a drop in the bucket. For comparison, AOL, even amid the internet bubble burst and tightened investments, was expected to invest $2 billion in domestic infrastructure this year, with overseas investments pushing the total over $3 billion. Moreover, as infrastructure required continuous upgrades and maintenance, such investments would persist indefinitely.
Simon had initially been interested only in the last project, but recalling Soros's earlier comments and noting that the first two projects were in Suzhou and Hangzhou, he couldn't help but chuckle.
This couldn't be a coincidence.
He set the documents aside for now. He was planning to visit China this weekend to celebrate a baby's full moon in Hangzhou, so he could address this matter then.
After handling some other work, the Boeing 767 landed at Los Angeles International Airport a little after 9 a.m.
The girls went their separate ways after disembarking, while Simon headed straight to Malibu Studios.
At 10 a.m., Daenerys Entertainment's weekly executive meeting began, with all Los Angeles-based senior managers in attendance.
After the meeting, Simon called the heads of the three production studios to discuss some projects.
The main topic was his promise of "everyone gets one" from the previous afternoon.
Simon hadn't made that promise lightly; he had already been considering it.
Britney Spears and Christina Aguilera would soon debut under Daenerys Records. In addition to their music careers, given their connection to Daenerys, it made sense to expand into film.
And there happened to be a suitable project.
The High School Musical series.
Simon had flagged this project last year while considering plans for teen films but had only now decided to move forward with it.
Unlike in the East, where musicals were often met with resistance, the genre had always had a broad market in the West.
In the original timeline, Disney released the first High School Musical in 2006. Initially intended as a low-budget TV movie for the Disney Channel, it unexpectedly sparked a cultural phenomenon, breaking Disney Channel's ratings records and selling millions of soundtrack albums worldwide.
Zac Efron, Vanessa Hudgens, and Ashley Tisdale, the film's leads, became overnight teen sensations.
Disney quickly followed up with a second installment, which was even more successful, leading to a third film that was released in theaters. With a production budget of just $11 million, the third movie grossed $250 million globally.
Now, Simon was bringing this project to life ahead of schedule, with Britney Spears and Christina Aguilera stepping into the roles originally played by Vanessa Hudgens and Ashley Tisdale. The male lead would be Justin Timberlake, who had also been groomed by Daenerys Entertainment's music division.
Interestingly, the original High School Musical had strong ties to Britney and her peers.
The project had initially been conceived as Grease 3, a sequel to the film that had launched John Travolta's career. The script, completed in the late 1990s, featured the children of Travolta's character as the leads. The three actors considered for the roles were Justin Timberlake, Britney Spears, and Christina Aguilera, with plans for Travolta to make a cameo.
The project was shelved for various reasons and only resurfaced years later when Disney reworked it into a TV movie, stripping away the Grease connection.
It was a massive success.
Now, not only was Simon "replicating" it ahead of time, but it also felt like a case of "returning to the rightful owners."
Although it was destined to be a small-budget film with an investment of around $10 million, due to its subject matter—too artistic for Highgate and too gory for New World—Simon decided to place it under the core Daenerys brand.
After discussing the matter with Tom Pollack, president of Daenerys Pictures, and sending him on his way, Simon chatted with Ira Deutschman of Highgate Pictures about projects like Elizabeth. Finally, he kept Danny Morris of New World Pictures to continue discussing the next steps in the teen film strategy.
American Pie, which had been released during the summer, had recently ended its theatrical run, grossing $113 million domestically and $140-150 million overseas, for a global total of over $250 million. With this success as a foundation, a sequel was already in the works, but it couldn't be rushed. American Pie 2 was at least two years away, so a new flagship project was needed.
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