My Fintech Empire

The following day, Monday 24 February.

The two markets of A-shares gapped and broke through the 2100-point mark. The Shanghai stock index dived and opened low at the opening. The market fell sharply on heavy volume.

The negative impact of bad real estate news on weekends and weekends, the real estate sector plummeted today, driving the banking sector to plummet, and the brokerage sector also made up a knife at this time, and the index was rattled and killed.

That’s not to mention, Quantitative Capital fell to the limit again today, and the stock price fell to 137.50 yuan, a drop of more than -31% in three days, and the market value fell below 200 billion and shrank to 192.2 billion.

As of the close, the Shanghai stock index fell -1.75%. It closed at 2076.69 points.

...

Arrived on Tuesday 25th February.

The A-share market once again staged a diving market. The Shanghai stock index fell for four consecutive days.

Quantitative Capital dropped the limit again today, and the stock price fell to 123.75 yuan, recording three consecutive limit-downs, and the market value further shrank to 173 billion yuan.

With the deep correction of the stock index, individual stocks in the Shanghai and Shenzhen stock markets generally fell, and the total number of rising varieties did not exceed 200. Excluding ST individual stocks and unshared reforms, only 25 stocks in the two markets had a daily limit, but the number of stocks with a daily limit reached 100. .

For the first time since 2006, A-shares have had a limit of 100 shares every year, especially in 2008 and 2012.

The Shanghai and Shenzhen Main Board Index’s drop today is already quite large, but the next-door ChiNext Index’s drop was even more ruthless, literally plummeting.

Today, the GEM index fluctuated violently. It rose more than +2% in early trading, hitting a record high of 1571.40 points, and then turned around and fell sharply, closing at 1472.69 points, plummeting -4.37%. Of the 345 stocks traded on the GEM that day, 325 The closing plunged, with 47 stocks falling by the limit of -10%, accounting for almost half of the number of stocks in the three major stock indexes.

There is a lot of turmoil inside and outside the market, and it is said that the property market bubble has burst and the economy is about to face a hard landing.

Real estate has also become the focus of the market and the general public. Some people are happy and others are worried. Those who own a house feel differently from those who do not. There is nothing to say about the car, each starting for its own benefit.

...

Huajia Villa.

At about 16:00 in the afternoon, several luxury cars stopped at the entrance of the villa, and a young man who got out of the car was Fang Hong.

Today he was invited by Hua Yongming to be a guest at the Hua family. In fact, the Hua family wanted to visit Fang Hong's villa directly, but now Fang Hong doesn't really want too many outsiders to come to his private house. hospital.

"Mr. Fang, please come this way." The middle-aged man who spoke was Hua Yu's eldest brother. He was ten years older than Fang Hong, but he was very humble between the lines, and Fang Hong was also very polite.

Just kidding, my father Hua Yongming had to treat Fang Hong politely.

"How is the old man?" Fang Hong said casually, and chatted with Huayu's elder brother and entered the yard together. Huayu was not at home, but was working at Qunxing Capital.

It is worth mentioning that Hua Yongming originally wanted his youngest son, Hua Yu, to take over from his class to run the Huayang Group, but now that the situation has changed, Hua Yu no longer wants to take over this class.

To put it bluntly, he didn't like it.

As a member of the rotating board of directors at the core of Qunxing Capital, his influence is much greater than that of Huayang Group, and he can still be the chairman of the board in rotation in the future.

Hua Yongming also acquiesced, there is one person in the family in the core layer of Qunxing Capital, and the benefits to the whole family are definitely greater than the disadvantages, so Hua Yongming is not entangled anymore, as for Huayang Group, let his elder brother take over.

But at this moment, Fang Hong came to the living room to meet Hua Yongming, the guests from both sides took their seats and exchanged greetings, Hua Yu's elder brother was just a corner serving tea for the two of them at the moment, so he couldn't talk to each other.

Hua Yongming invited Fang Hong to come here today not to drink tea to reminisce, but to change the situation of the domestic property market this year. How should Huayang Group decide its next direction? It is very important, so Fang Hong was invited to come and ask him for advice.

"...In recent years, thanks to your previous suggestions such as 'three highs and one fast', Huayang Group has achieved unprecedented development. Last year, the sales revenue of Huayang Group's real estate sector reached 158 billion, second only to the 10,000 yuan. Tad and Greenland have become the third largest real estate company in the country.”

When Hua Yongming said this, it was hard to hide his joy between the lines, and there was no need to hide anything from Fang Hong. He knew that Fang Hong, a young man, was shrewd and insightful. If he deliberately concealed his emotions, he would secretly laugh at him.

Huayang Group has indeed developed extremely fast in recent years. It is the company with the most aggressive expansion momentum among all domestic real estate companies. It benefits from the development strategy of "three highs and one fast", namely: high debt, high turnover, high leverage, Get the land quickly.

Based on such a development strategy, Huayang Real Estate Company has grown from a local real estate giant in Xincheng to a leading real estate giant with annual sales of 100 billion yuan and ranked among the top three in the industry in just four years. .

The most important thing is that Huayang Group also holds the equity of Qunxing Capital, a giant group, which is unmatched by other real estate giants. It also makes the company's credit extremely high. Is rushing to buy.

"However, in recent years, the real estate market has become weaker and weaker. Huayang Group has a large backlog of inventory, and the efficiency of payment collection continues to decline. The debt here is still rising, bringing double pressure..." Hua Yongming said, and the words also There are some concerns.

"Don't worry." Fang Hong directly concluded, and then expanded: "The national property market is indeed facing tremendous pressure to destock. It seems to be on the verge of collapse. Some people even say that it will collapse, but it will not collapse."

Hearing this, Hua Yongming looked at Fang Hong: "How do you say that?"

Fang Hong asked rhetorically, "Do you think real estate is the capital market or the real economy?"

After thinking for a moment, Hua Yongming said slowly: "According to the residential property, it is definitely the real economy. From the downstream, it is not very likely to rebuild a set of furniture, add points, or do a major renovation without moving to a new house. In the There should be a very small proportion of people who continue to do this without improving housing. From the upstream, steel, cement, machinery and other industries are undoubtedly not affected by real estate. It can be said that they have a huge impact on many industries. Of course, real estate is real economy."

Having said that, Hua Yongming changed the subject and added: "However, according to the nature of property rights, real estate is also a capital market, and capital drives up the price of commercial housing rapidly. Real estate has accumulated a large amount of income from land sales for the government. This wealth is used to build subways. , parks, squares and other public infrastructure, and promote the growth of the real economy."

Fang Hong immediately said: "That's right. But capital is profit-seeking. As long as there is a market economy, this principle is not wrong. Why are funds entering the property market and other capital fleeing the real economy? Because the real economy environment is not good, earning No money."

"Guo Jia's team will basically not do it in industries that are not monopolized, but withdraw from industries with overcapacity and full competition and hand them over to the private sector. There is not much profit in the first place, but the tax is not low. In addition, various needs to be managed There are too many dedicated departments, managers, and staff, and the cost here is higher than the tax, which is unbearable for enterprises."

"Capital is not a fool. It will definitely seek advantages and avoid disadvantages. Naturally, it will give up the real industry that is worried about being troubled and not making money, and instead invest in real estate. In the past few years, the real estate market was regulated. Did the funds go into the real estate? No, but into gold, Participation in the hype in areas such as agricultural products means that they do not enter the real economy anyway, because the real economy still does not have a good environment and profit margins, otherwise funds will not withdraw from the real economy, but will flow in in large quantities.”

Hua Yongming nodded silently, and seemed to understand why Fang Hong let Qunxing Capital enter high-tech fields or emerging industries, and kept spending money in various cutting-edge technology fields and occupying an absolute majority.

Because investing in high technology is to seek an open source strategy. To put it bluntly, it is to do things that no one has done, and to have considerable profits when it is done, because high technology itself has the advantage of technological monopoly.

But this model cannot be played by others, and it is basically impossible for others to copy it, because it requires a lot of investment and takes a lot of risks. The investment in high-tech research and development is very expensive. Of course, it can make a lot of money if it can be transformed into results. It's all in vain.

Fang Hong dared to play like this because he had a huge amount of capital to cover his sunk costs. If someone else played his model, he might go bankrupt within a year.

...