Although He Zhengcheng really wanted to meet his former crush under different circumstances, unfortunately, Shanhai Capital had business to attend to.
The founders of Long-Term Capital Management flew overnight to Daxia Country to meet with the head of the central bank. No one knew what they would discuss. Such information usually wouldn't attract attention, but those with discerning eyes would notice something unusual.
"Is there really a problem with Shanhai Capital's research report?"
"Why did Meriwether go to Yanjing?"
"If, according to Shanhai Capital's analysis, Long-Term Capital Management bought undervalued securities and sold overvalued ones in the market, engaging in neutral arbitrage, then Long-Term Capital Management's crisis must have already occurred."
"Currently, the situation in the Wall Street capital market is that overvalued securities continue to be overvalued, while undervalued ones are being massively dumped. If this situation continues, it won't take long—perhaps a few days or a dozen days—before many companies on Wall Street go bankrupt."
"This is mainly due to the extremely large trading volume. Someone must have increased their leverage ratio! Even if it's not Long-Term Capital Management, it must be some other company!"
"If a financial crisis might occur on Wall Street, where else in the world is safe? The European Union or Fusang?"
Since yesterday, the capital market has been in a state of violent turmoil and unease. Faced with potential risks, many people would rather lose some money to ensure the relative safety of their principal. This indirectly pushed up the prices of high-quality financial assets in the United States, meaning that those overvalued securities became even more valuable… "The market is developing spontaneously according to our expectations. As long as Long-Term Capital Management truly has high leverage, it is doomed this time." Ji Jiasheng said.
"It should be said that no matter whether Long-Term Capital Management has problems or not, they are doomed!" Chao Yang said.
Some things are truly hard to explain, just like whether Iraq had weapons of mass destruction. That wasn't important; what was important was needing an excuse.
He Zhengcheng didn't know if Long-Term Capital Management was wronged, nor did he care. The financial market is either you eat me, or I eat you.
An enterprise like Long-Term Capital Management, with such a large profit scale, would inevitably be coveted by many big players on Wall Street. Even if there were no problems, someone would create problems and then look for an opportunity to swallow it.
Shanhai Capital may have indirectly helped the Wall Street Five, such as Goldman Sachs and Morgan Stanley. The entire world is connected, especially after the advent of the internet era, this connection has become even closer.
While you are promoting one thing, others might use your efforts to do something else. Perhaps in the future, some entrepreneurs in the Daxia Country internet industry will unknowingly sell out their country.
Therefore, do not dwell on facts. The truth of facts is very important, but sometimes it really isn't.
Shanhai Capital, if not exactly famous, has made a name for itself in the Hong Kong capital market. They were off yesterday, so no one could reach them.
Today, people have contacted them through various connections, such as Liang Baitao, the former boss of Peregrine. Lv Lang has also returned from Russia.
"Which direction should we invest in? We are about to accept investments, so we must have a clear statement," Ji Jiasheng said seriously.
Just as He Zhengcheng told his two partners, he was a partner of Shanhai Capital, but he truly didn't know what Shanhai Capital did. Because until now, they hadn't done anything substantial; their only action was to release a research report. But they were not a research institution!
"Are we looking to make quick money or slow money?" He Zhengcheng asked.
"What do you mean by that?" Xu Xin asked.
"Making quick money is simple: invest in the stock market. The Hong Kong financial crisis is basically coming to an end, and at this time, the market is full of gold. Anyone can make a fortune here!"
"Making slow money is different. We can invest in an industry, an enterprise, or a leader in an emerging industry. However, most of these investments are slow to yield results and require time." He Zhengcheng already had an idea about this.
Even without memories of his previous life, he could easily deduce that the probability of NASDAQ falling in the next one or two months was too high. This was a good time to buy into high-tech stocks like IT and internet on dips.
The dot-com bubble burst around 2000. As long as he adopted a diversified investment strategy, he could escape even if NASDAQ crashed in 1999.
"How much capital can we raise?" Xu Xin asked.
"It should be no less than 100 million US dollars!" Ji Jiasheng said.
"Perhaps those investors will also look at where we invest: Hong Kong, the mainland, or Silicon Valley?" Yu Dehui was also very clear-headed.
"Different places represent different upper limits," He Zhengcheng said.
He certainly knew that staying in Hong Kong, they had abundant network resources. No matter what they invested in, it would be easier than developing markets in the United States.
This is an easy thing to understand: why do big companies like Alibaba and Tencent have so few overseas investment projects? Others don't allow them to participate in the game and create various difficulties for them, including competition and disputes between the two countries.
Shanhai Capital has no capital advantage or resource advantage. It is truly very difficult to develop its business in Silicon Valley.
"Then let's take care of both places simultaneously!" Lv Lang said.
To take care of both means to develop in two places simultaneously. With not much capital strength to begin with, it would be dispersed. The consequences of doing this are not difficult to know. However, he did not refute it.
"So what should we invest in?" Yu Dehui asked.
"The internet!" He Zhengcheng said. Even if Silicon Valley already had a bubble at this time, so what? The internet is the future!
"We will invest around the internet industry!" Lv Lang said.
"The internet is an emerging industry, and we have enough room for development," Ji Jiasheng said.
At this time, no one said that if you don't understand the internet, you can't invest in it. The professional background required by investment banks in the future is just a matter of selecting the best among the fierce competition, and it doesn't mean that decisions made by professionals are necessarily better than those made by amateurs. Those who can grasp the essence of an industry have greater investment talent.
"When we have less money, we can only do this. When we have more money, we have more choices," Xu Xin said, clearly not forgetting He Zhengcheng's idea of investing in the entire information industry.
"Who has contacted us for investment?" He Zhengcheng asked.
"Many, mainly local Hong Kong tycoons, financial institutions, and top US investment banks like Goldman Sachs!" Ji Jiasheng said.
"Goldman Sachs is here too?" He Zhengcheng asked.
"Exactly. We might be able to enter the US Silicon Valley market through their channels," Ji Jiasheng said.
"Goldman Sachs!" Shanhai Capital actually entered the sight of such a top global investment bank? He didn't know if it was a blessing or a curse.
"That's it then. We will organize the information, contact investors, and prepare to hold an investor meeting!" Ji Jiasheng said.
Everyone stood up. Although some issues were still unclear, such as who would go to Silicon Valley and what percentage of funds would be invested there, these had not yet been discussed. Never mind, let's not mention these for now; without capital investment, everything is in vain.