What's wrong with me being a rich man?

Chapter 177 The Scam Persists
Yu Xing rushed back to Shencheng alone, exhausted.

There were so many things to think about along the way, including getting out of the cave again after reaching the top of the mountain, various issues to be solved during this investigation in the south, and occasionally, I would think about the dialogue and exchanges in Pengcheng.

When he got in the taxi, he felt the huge difference in temperature and couldn't help but say, "It's really hot here in Shanghai."

"Where are you from, young man?" the taxi driver asked after hearing this.

"I flew back from Lincang." Yu Xing replied, "It's only over 20 degrees over there, but it must be over 30 degrees here today."

"Hey, Lincangyuanha." The master glanced at the co-pilot with his peripheral vision, "Are you traveling there?"

Yu Xing smiled and said, "Doing business."

The master asked in confusion: "What kind of business is that? Tea or timber?"

Yu Xing looked at the master and said with a smile: "I won't tell you, it's a big business anyway."

The master took advantage of the traffic light to look at the passengers, and finally determined in his heart that the young man was short-sighted and was just exaggerating the big business.

At 7: in the evening, a business deal involving a market value of billions of dollars appeared in front of Yu Xing and Liu Wanying.

Just like last time, a successful short sale will cause the target company's market value to evaporate quickly, but the difference is that Guoshanfeng can get more this time, although it is still far from the huge market value.

"With more than 2600 million shares, Paulson's fund is the third largest shareholder, and the share price has been pushed up to 17.8 Canadian dollars." Yu Xing examined the latest information on the paper version, "The company's market value seems to be breaking through 50 billion US dollars. Sino-Forest has really risen a lot in recent times."

"During this period, the New Zealand tycoon Chandler first increased his holdings, then the New York Davis Company increased its holdings, and now it is Paulson who is increasing his holdings. Judging from this trend, if nothing unexpected happens, Paulson will continue to increase his holdings." Liu Wanying said seriously, "He has determined that Sino-Forest is a good company."

She paused and added: "Paulson's actions are a continuation of their previous decision. In addition to their review of the company and on-site research, I now think there is another factor that Paulson may have considered."

Yu Xing flipped through the summarized information and asked, "What is it?"

"Sino-Forest's main assets are in China, but it was initially listed in Canada through an acquisition," Liu Wanying said thoughtfully, "but it is now known as the largest private forestry company in the northern hemisphere, so it is possible that it will be dual-listed in Hong Kong, which will inevitably greatly stimulate the stock price."

Yu Xing asked with interest: "Do you think that the boss of Sino-Forest, Chen Deyuan, would he hint this to these foreign major shareholders intentionally or unintentionally?"

Liu Wanying pondered for a moment and agreed, "It seems that I really need one or more assistants so that I can think and supplement from different angles."

Yu Xing smiled and said, "His approach is worth learning."

"It's not surprising to say that. It's just like..." Liu Wanying looked at Boss Yu next to her, "It's like when you use a scalpel to cut open the stomach, you can quickly see the condition of the internal organs, and then infer the possible situation."

Yu Xing was obviously very used to this metaphor and nodded approvingly.

Liu Wanying waited for Mr. Yu to turn a few more pages before continuing, "The fund that Paulson used to buy stocks was established in October last year and now manages $10 billion in assets. Judging from the stocks it bought this year, they are mainly in the fields of hotels, real estate companies, and financial services companies. It is obvious that it tends to benefit from the long-term economic recovery. "

"In this case, we can infer that Paulson is optimistic about the long-term trend of the economy and now wants to pick up those bloody chips."

The stock market collapsed after the financial crisis and many assets were sold in panic. Paulson, who profited from the crisis, is now buying bloody chips, including shares of Bank of America, Citigroup, and naturally Sino-Forest.

Yu Xing smiled and said, “The chips we picked up this time also have some of Paulson’s blood on them.”

Liu Wanying added: "Also, about 4% of the fund is Paulson's own capital."

Yu Xing nodded slightly: "Then he will be more motivated to take responsibility for the losses of Sino-Forest."

It's not only the clients' money, but also a large amount of his own money, which needs to be hedged. The funds under his umbrella cannot be operated publicly. The clients' money must be put aside first, and his own money must be calculated carefully.

He read the latest information, thought about it again and again, and asked: "How do you ensure smooth communication with Paulson?"

"I have two email addresses in my hand now, one is Paulson's public email address, and the other is the fund's contact email address. It is quite common to use email addresses abroad." Liu Wanying said carefully, "I will send it to Paulson first. If there is no response, I will send it to the fund." As she said this, she opened her notebook and showed the email she had already written. In addition to the attachment of Guo Shanfeng's research report, the content was the usual point, "We have noticed that the company you invested in has major fraud problems."

Yu Xing had read Xiaoying's research report again on the way here. Now he saw the email again and said after thinking, "The effect doesn't seem to be explosive enough. I think we can change it. The scam of Sino-Forest is nothing more than a Ponzi scheme. The 'Madoff' who went to jail last year can be used. We need to deal with the US and Canadian markets. His name can make people know what this is about."

Last December, Wall Street legend and former Nasdaq chairman Madoff was arrested on suspicion of securities fraud, which is considered the largest fraud case in U.S. history, and it is estimated that the losses to investors may be as high as $12 billion.

His methods were also not surprising: high-interest returns and developing downlines.

However, because of Madoff's brilliant career, the scale of this Ponzi scheme set a record.

It is worth mentioning that Morgan was also charged with Madoff's scam and was suspected of violating two felonies under the Bank Secrecy Act.

Guo Shanfeng initiated a short-selling campaign and brought out the freshly minted fraudster "Madoff", which was bound to leave a deep impression on the industry.

"Write it like this. We'll start with accusations." Yu Xing picked up his pen and sketched on the blank space on the back of the document, "- We have found a second Madoff. Paulson, why did you participate in the fraud of Sino-Forest!"

After writing this sentence, he suggested: "The beginning of the research report should also start with Madoff, and write, 'There is nothing new under the sun, we have found another Madoff.'"

"Then just use the original text of the Bible." Liu Wanying accepted the suggestion and had a new idea.

There is nothing new under the sun. The Bible’s saying, “What has been will be again, what has been done will be done again; there is nothing new under the sun” just suits the Western market’s taste in understanding.

Yu Xing nodded: "Okay."

Liu Wanying thought about it for a while and wanted to change the expression: "There is another sentence in the Bible, 'One generation goes and another generation comes, but the earth remains forever'. I want to change it to 'One generation goes and another generation comes, but the deception remains forever' as the beginning of the report. What do you think?"

Yu Xing thought for a while and said with a smile: "Great, let's do this. From now on, our research reports will start with this sentence, and the second sentence will be the specific scam company."

——One generation passes and another comes, but the scam lasts forever.

——We see another Madoff-style company with a market value of 50 billion, Sino-Forest.

He wrote the first two sentences of the proposed research report on the document.

After careful consideration, the two of them both felt that the first sentence was a good idea and could be used as a signature greeting in a summit report, which reflected both the cultural understanding of Western audiences and the existence of an ongoing scam.

Liu Wanying admired it for a while and joked: "I want to print 'deceit remains forever' as a business card. Well, if I travel in the West, this business card will be 'deceit remaineth forever'."

The research report needs to be translated into English, so the sample of the first sentence is the original sentence in the Bible.

"What we need now is to smash the cup with Paulson as a signal." Yu Xing broke away from artistic expression and returned to the things that needed to be dealt with in reality.

"Our goal this time is to resolve the battle within one day. I plan to set it for Friday, August 8th." Liu Wanying said the time, "If Paulson cooperates, there will be a panic sell-off on Friday."

Today is Sunday the 14th, and there are still five days left.

Yu Xing agreed and said, "Then, in order to prevent Paulson from doing anything, we should notify the other two shareholders in advance while the market is closed, and then set the report issuance date on Thursday."

Liu Wanying was slightly startled. She agreed with Paulson that the cup-throwing event would take place on Friday, and then notified the other two shareholders who also owned stocks to short sell on Thursday. One was caught off guard, and the other cut their losses early, so the stampede might have become even more serious.

In order to prevent Paulson from doing anything tricky, you have to do something tricky yourself first.

Liu Wanying was silent for a while, and said sincerely: "The scam will last forever."

(End of this chapter)