In the afternoon after Chen Qing left, Simon's work was still related to China.
Charlotte Brenita hid some of her thoughts, and it was impossible for Chen Qing to be completely honest with Charlotte Brenita.
Returning from China this time, Chen Qing also brought Simon the latest batch of research reports on major Chinese companies by the Cersei Capital Economics Research Team. Simon arranged this after his first trip to China last year. At first, he only sent A team of 15 analysts was established. After a year of continuous recruitment and local recruitment, the research team established in Shanghai has expanded to more than 100 people.
Cersei Capital China Economic Research Institute was also officially established.
For one year, Simon invested more than 20 million U.S. dollars. The team traveled around China and surveyed more than 2,000 companies in various industries on the other side of the ocean. The data returned was enough to fill a dozens of computers. A personal computer with a gigabyte capacity. Although Chen Qing was responsible for bringing back these materials, even Chen Qing was not qualified to view the laptop containing the files without Simon's permission.
Even though the Internet can now connect the world, manual transmission of many materials is still a tradition for the team around Simon.
Mainly for confidentiality.
Of course, this does not mean that this team is involved in illegal operations such as commercial espionage. Cersei Capital China Economic Research Institute (Shanghai) is a very formal registered company. At this stage, this type of institutions and companies in China do not There is no shortage, the difference still lies in the professionalism and research goals.
At this stage, China's official economic research institutions basically focus on macroeconomic research.
Simon was too lazy to comment on the details.
As for the private research teams of service companies, the so-called research reports compiled from various public data and sold for thousands of dollars are even more unflattering.
If you want to invest in a local market, the first thing you need to do is to have a full understanding of this market. The larger the company, the more attention it pays to such basic research. If a super chaebol like the Westeros system ignores this, the results will be even more disastrous.
China currently does not have a mature consulting and research industry in the West, so it can only do it on its own.
In fact, many slightly ambitious international giants who want to expand their presence in China do so.
Different from the castles in the air of Chinese official institutions and the patchwork of private sectors, the team of Cersei Capital China Economic Research Institute is very professional and has a strong purpose in focusing on the layout of the Westeros system in China. The Westeros system focuses on entertainment, fashion, technology, finance and other fields. This team has very in-depth research in China. At the same time, it focuses on micro-areas with strong reference and directly targets actual enterprises in related industries, regardless of Positive and negative, good and bad.
For this reason, the team actually also serves as a subsidiary function of headhunting.
Simon wants to make a broad deployment in China, but the biggest shortage is actually talent. Therefore, while studying a large number of companies in various fields, the Cersei Capital China Economic Research Institute has also quietly established executive files of many companies and conducted follow-up evaluations.
In the past few years, especially in the past year, Simon's investment in China has actually far exceeded the several projects in Chen Qing's hands.
After returning from China last year, Simon required all core companies in the Westeros system to send teams to China to conduct business. Daenerys Entertainment, Cersei Capital, Ygritte, Melisandre, Cisco, the United States Online, Aaliyah, Tinker Bell, Verizon, etc., as well as an even larger number of subsidiaries directly or indirectly controlled by these core companies.
Even if it was Elite, the model economic giant that had just been acquired a few months ago, Simon did not forget to remind Grace to start related business.
Simon did not put forward any clear requirements when initially assigning this task.
However, half a year later, Simon personally reviewed the business results of the teams assigned by these companies one by one. Those who did well were rewarded, those who hesitated were given warnings, and those who responded passively were directly punished, and hundreds of people were fired one after another.
Overall, most core subsidiaries have established a foothold in China.
Companies such as Daenerys Entertainment, Cersei Capital, Cisco, and Melisandre, which have already started their layout very early, are developing rapidly in China and have occupied considerable market shares in the fields involved.
Just recently, the Levison Group, controlled by the Westeros System, successfully acquired a land on the bank of the Huangpu River in Pudong New District, Shanghai, and began planning the Westeros System's first large-scale real estate project in China. This includes the close support of Cersei Capital China Economic Research Institute, including the local Chinese partners selected by Levison Group, the voting price of the land, the market positioning of the development properties, etc.
Without the support of a series of accurate and reliable industry information, even a layman like Simon would not venture into China's real estate industry.
The water is too deep.
Too many pitfalls.
If you are not careful, you may lose everything.
The precise analysis of the development potential of Shanghai Pudong New Area in the relevant materials of Cersei Capital China Economic Research Institute has made Simon, a latecomer, impressed. Although it has been five years since China started developing the Pudong New Area in Shanghai, there are still many people who are negative about this plan. After all, most people are currently focusing on the Pearl River Delta, not the Yangtze River Delta.
But Simon knew that more than ten years later, due to various reasons, the economic size of the Yangtze River Delta had far surpassed the Pearl River Delta, which had various favorable conditions at that time.
The Cersei Capital China Economic Research Institute team did not have Simon's prophetic advantage. They only made similar judgments based on various investigation information. This alone made Simon firmly believe that the more than 20 million US dollars he burned in the past year was worth it. value. Therefore, Simon has decided to continue to increase the budget of this team.
Because it will not provide commercial services to the outside world, the research team cannot obtain direct revenue, and Simon will not allow relevant research results to be shared with outsiders. However, the potential benefits of investing in various fields in China based on the information provided by the institute will definitely far exceed the costs of this sector.
In the afternoon of the same day, Simon also issued another instruction to the Cersei Capital China Research Institute based on Charlotte Brenita's proposal: to investigate the overview of China's private education industry.
The international student business launched by Charlotte Brenita is still next.
Simon mainly thought of the vocational training schools that began to emerge in China in the 1990s. The advertisements for those vocational schools in his memory were all called brainwashing. Looking back at this time, he could actually get a glimpse of the huge market size of China's vocational training field.
There’s absolutely no reason not to step in and get a piece of the action.
With its foreign investment background, the Westeros system has considerable advantages in participating in this field.
Moreover, as various subsidiaries of the Westeros system have set up product factories in China, Simon is also planning to support a group of professional OEMs in the near future. Professional work will be left to professional people, while low-end and complicated work will be done. Outsourcing the production process can optimize the asset structure of companies such as Nokia and Tinker Bayer.
On the other hand, Simon also knows the importance of the production process. Even if companies such as Nokia let go of outsourcing, he does not intend to rely on others. It is the wisest choice to support outsourcing manufacturers that are directly controlled by the Westeros system. .
This plan can be combined with investment in vocational training.
After all, after participating in vocational training, there is always a need for work, and outsourcing companies happen to have large-scale employment needs, which are completely complementary.
At the end of the work week, after the weekend, the new week is already December 11th.
1995 is gradually coming to an end.
On Monday, December 11, an SEC filing quickly spread throughout major newspapers, television networks and online media platforms in North America.
Westeros Company announced that due to investment needs, it will reduce its holdings of 20 million shares of Daenerys Entertainment Group in the near future.
On Monday's opening day, Daenerys Entertainment's share price was US$97.25, with a total market value of US$252.7 billion. A large number of analysts on Wall Street and major North American financial media are generally optimistic that the market value of Daenerys Entertainment Group will exceed 3,000 within at most one quarter. Billion dollar mark, so trading in Daenerys Entertainment stock has been very active recently.
Unexpectedly, a major shareholder who least expected to see suddenly reduced his holdings.
According to the opening stock price on Monday, the total value of 20 million shares is actually only US$1.975 billion. This part of the stock is only equivalent to 6/1000 of Daenerys Entertainment’s total share capital of 2.599 billion shares. If other institutional holders reduce their holdings, as long as the operation Properly done, it will not cause market fluctuations.
It just so happened that the person who reduced his holdings this time was Simon Westeros.
So, is it possible that a certain super tycoon also realizes that the market has peaked and may turn around at any time, so he can't help but cash out
If you can know some insider information about the Westeros system, you will actually find that three months ago, Cersei Capital’s Cersei Fund management team, which specializes in hedging business, has reduced its long positions in the U.S. stock market to less than US$5 billion. scale, and generally only have ultra-low leverage of two to three times.
In the past three months, the Cersei Fund Management Company team has been prohibited from establishing any short positions related to the U.S. stock market.
These two measures are, on the one hand, to minimize their own possible losses, and on the other hand, to avoid potential legal risks.
Because of the strict confidentiality of Cersei Fund Management Company, not many people really know the inside story. Even if some information inevitably leaks, those who have the inside information will not be stupid enough to spread it around. Of course, they will make a fortune in silence. .
So, when the news was announced, the entire market was basically caught off guard.
Simon’s phone and that of his team didn’t stop ringing on Monday.
The feedback from the market is even more direct.
In one day on Monday, Daenerys Entertainment's share price fell 5.1% due to the Westeros company's announcement to reduce its holdings, and its market value evaporated by US$12.8 billion in a single day, which was more than six times the amount announced by Simon.
The chain reaction triggered by this is even more intense.
All "Westeros concept stocks" fell across the board that day, and the stock prices of several leading technology stocks such as Igritte, Cisco, and AOL all fell by more than 5%. Affected by this, the Nasdaq also fell from a high of 2,796 points to 2,687 points, a decrease of 3.9%. Calculated based on the current total market value of the entire Nasdaq market of 3.6 trillion, the evaporation of the market value of the Nasdaq stock market on this day alone reached 140 billion US dollars.
In the more than two months since Igret was listed, the continued strong trend of the Nasdaq market has caused many short sellers to fail, and most hedge funds have had to turn to long positions in order to make up for their losses.
No one expected that Simon Westeros would suddenly pull this trick.
Are you trying to kill everyone
However, the few short sellers who were still struggling in the market were ecstatic. When the news came out that Westeros Company announced that it would reduce its holdings of Daenerys Entertainment stocks, these people immediately mobilized all the power they could use. Maximize the impact of this reduction.
The effect is very significant.
On the other hand, that afternoon, Mr. President also called Simon and asked him what exactly he wanted to do.
What does Simon want to do
Very simple.
Suppress the overheating of capital markets.
And, cash out.
Although the popularity of the new technology industry has reached a level that can burn people, in Simon's memory, Nasdaq's 3,000 point was an inflection point. After 3,000 points, the market completely lost its mind and doubled in less than a year, reaching its peak of 6,000 points.
Then crashes.
Seeing that the Nasdaq market is getting closer and closer to 3,000 points, Simon has to slightly advance the reduction plan that will only start next year.
After all, you can't wait until 3,000 points before taking action, otherwise the risk will definitely increase significantly.
Therefore, the reduction in Daenerys Entertainment stocks is just the beginning.
Daenerys Entertainment is listed on the New York Stock Exchange, and it stands to reason that it will not affect the Nasdaq market. Of course, everyone knows exactly what the actual situation is. Simon chose Daenerys Entertainment first, and Simon did it intentionally.
Daenerys Entertainment Group is the company with the highest gold content in the Westeros system at this stage. It is very stable in terms of market position, revenue volume and profitability. Even if the market value is high, the bubble content is very small. First, reduce holdings. This company's stock will theoretically cause minimal market fluctuations.
Of course, that's just in theory.
Although Simon has made many arrangements in advance, risks are inevitable, and even a black swan event such as a market collapse is not impossible.
However, some things have to be done.
As long as it succeeds, this action is expected to delay the peak of the Nasdaq market by one to two years, and therefore give the new technology industry in the United States and the world one to two more years to develop.
This is actually buying time for the Westeros system itself.
Because once the Nasdaq new technology bubble bursts, the market will inevitably enter a period of cold winter. This cold winter period in memory is about two to three years. It may not seem long, but it will severely damage many new technologies that had hoped to develop rapidly. Technology companies, the Westeros system will undoubtedly be the one most affected.
Now, by taking the initiative to suppress the overheating of the market and buy more time, companies such as Igret, Cisco, and AOL will be able to have a deeper foundation and become more capable of resisting risks.
This is also Simon's explanation to Mr. President.
Of course, there are also considerations for Mr. President.
Simon has always been a good guy.
If the overheating of the Nasdaq market is not suppressed at this time and the 1996 election year is immediately entered, the Nasdaq is likely to suddenly collapse in the middle of Clinton's re-election campaign. In that case, the president's first four-year term will be over. The main achievements will be cleared.
Now, the Westeros system has taken the initiative to suppress the Nasdaq market within a controllable range. At least next year, the results of the information highway plan will still exist. The U.S. economy will not decline and the unemployment rate will continue to decline. The re-election of Mr. President is certain.
Clinton obviously did not completely listen to Simon's deception, and only asked a very pointed question: What if it fails
What if it fails
Simon's reply also left the president speechless: Do you want to see the Nasdaq market collapse immediately and then spend a year trying to recover as much as possible, or do you want to see it at a key point in your re-election campaign, such as next November? The Nasdaq market crashed and there was nothing to be done
What's more, Simon wouldn't start rashly without a certain degree of confidence.
Over the years, Simon has gained a deeper understanding of Soros's reflexive theory that "market participants will also affect market trends" in his memory.
For the first few years, Simon was just a 'player', a pawn.
Simon is now a player who can have an 'influence' on market trends, a chess player.
The market fluctuations on the first day when the news of the reduction was announced were actually within Simon's expectations.
Starting at noon that day, due to proper arrangements in advance, the entire Westeros system began to activate.
Analysts affiliated with financial giants such as Goldman Sachs, Morgan, and First Boston have expressed their views on maintaining stability. A series of newspapers closely related to the Westeros system have also begun to publish various press releases that either maintain stability or confuse Westeros. Some core members of the system also personally contacted the heads of major mutual funds and insurance funds to lobby them not to follow suit and sell.
The effect is remarkable.
Early the next morning, after many people were trembling with fear all night, what greeted them was the Nasdaq market's rebound of 2.1% in just one hour after opening in the morning. Shares of Daenerys Entertainment, listed on the New York Stock Exchange, also rebounded 3.6%.
Next, there is the boiling frog plan.
Starting with Daenerys Entertainment, we have continued to reduce the stocks of core companies in the Westeros system. On the one hand, we have withdrawn large sums of cash for investment in other aspects of the Westeros system, and on the other hand, we have suppressed Nasdaq. Tech stocks go crazy as late as possible.
This plan actually requires close cooperation from all parties.
Including the authorities in Washington.
In a phone call with the president that lasted for more than an hour on Monday afternoon, Simon roughly revealed his plan, and Simon also asked the president to put pressure on the Federal Reserve. Since the market is overheated, the Fed should increase its efforts to raise interest rates.
The U.S. economy began to recover after the Gulf War and has now reached a high point. Prior to this, Washington was mainly worried about the collapse of technology stocks, so it had a negative attitude towards the Federal Reserve raising interest rates. After all, politicians often do not make choices that are best for the country's economy for their own benefit.
After Simon's lobbying, even if he didn't say it explicitly, Clinton probably understood Simon's views on the new technology market, realized that 3,000 points was not the peak of the Nasdaq, and now took some interest rate hike measures to delay the overheating of the Nasdaq market. , to prevent the new technology bubble from flourishing and declining early, which is actually beneficial to his re-election next year.
As for whether the President will implement it, this is actually not entirely the decision of the White House. The boiling frog plan also includes lobbying the Federal Reserve and other departments.