Reinventing the Millennium

Eastern Time.

On Friday, April 17, Yike held an ordinary press conference late at night, announcing that the total disposable equity was 89.3%.

On April 18 and 19, after two days of news spreading and deliberation over the weekend, the SEC conducted an informal investigation into Yike.

On Monday, April 20, YIKE opened normally on Nasdaq. It surged strongly, short squeezed and hedged, creating a new richest man in the world.

On Tuesday, April 21, many hedge funds around the world announced liquidation of positions, U.S. bank stocks plunged, the financial sector suffered a sell-off, and technology stocks rose against the trend. The Nasdaq closed up nearly 3%, the Dow fell slightly by 0.25%, and the S\u0026P heavy fell 2.6%.

A butterfly flaps its wings and a tornado blows through Texas.

The birds of prey are soaring freely, and financial markets around the world are exploding.

Nasdaq closed at 4 o'clock on Tuesday afternoon. YIKE's share price broke through the 600 mark and closed at US$603.28, with a book market value of US$172.366 billion.

This market capitalization figure surpasses IBM and becomes the world's third-highest market capitalization IT company, ranking 17th in the world.

And underneath it are Google, Cisco, Oracle, Intel, Samsung Electronics, Qualcomm, Amazon and other world-famous companies...

Everyone knows that the book and market value will eventually recede, but when it comes to being "famous", the name of Yike Company is really resounding around the world this time. Many people in the financial industry even have physical reactions of discomfort when they see this name.

The Nasdaq closed the next day, but things were far from over.

Because of the chain reaction and because the SEC acted too slowly, many institutions and officials issued warnings about the Yike incident.

——British LSE: Pay close attention to changes in the US financial market, which may undermine the economic recovery process.

what happened? what's the situation? Why hasn't this been settled yet?

——German FWB: The U.S. financial system should learn from the lessons of last year’s economic crisis, send positive signals, and solve the problem as soon as possible.

Short squeeze? We are familiar with each other, and it was solved in two days, but it is already the third day for you.

——Huaxia: Well, we have always required Chinese companies to strictly abide by international rules and the laws and regulations of host countries in their overseas operations. However, we also firmly oppose certain media’s rumors and smearing of companies, and firmly support relevant companies in safeguarding their legitimate rights and interests.

Well, well, this, this is so strange, we are also confused, you should see how the parties involved solve this problem.

The Yike short squeeze became one of the most eye-catching events in the world in mid-to-late April.

On the night of Tuesday, all kinds of news were still flying all over the sky. Some people noticed the large transactions that were included in the total transaction volume after the market closed. Some people thought that the SEC would order YIKE to suspend trading tonight. Some people firmly believed that Yike would become the world's largest trading company. For a company with a market value, some people say that Fang Zhuo of Yike has been killed...

Amid all the turmoil, the Los Angeles Times published a special feature on its online website called "Starting from the Bottom", which attracted widespread attention and reprinting.

The Los Angeles Times is the third largest newspaper in the United States. Since getting the news on Friday night, it has been investigating the relevant situation with great interest, especially the personal situation of Fang Zhuo, an important figure.

Yike's stock has been open for two consecutive days. Even if it is suspended on the third day, it will not have any positive significance. Instead, it will extend the institutional bomb to the back in a disguised manner. Therefore, this short squeeze will inevitably end in reconciliation.

Whether it was the third or fourth day, the craziness of these two days was enough to make people confused.

The Los Angeles Times believes that Tuesday night is already a good time to spread the news.

And, from the perspective of news content, they also think it is enough to attract everyone’s attention.

"Before April 17, Fang Zhuo, the founder of Yike, left us with the impression that he was a corporate leader who was good at leading the company forward. He owned a basketball team and did show his passion for sports at certain times. Enough interest.”

"In addition, he is also good at finding friends and partners for the company. Even Sony, which once had a fierce competition, has turned enemies into friends. On this cooperation list, we can see Google, Samsung, HTC and even Apple, and even Now there are rumors that Microsoft is sitting down to discuss mutual patent licensing.”

"anything else?"

"As for the public's impression of him, of a yellow-skinned rich man from the East, that seems to end there."

"When Yike held a press conference, and when many financial institutions were caught off guard and were shorted, we were surprised to find that this legendary company founder had a more vicious side."

"Soon, we discovered an even more shocking fact. This was far from the first time he had been so vicious."

"As early as 8 years ago, the first company he founded used the method of converting funds into debt to trap 8 investment institutions. To this day, these institutions are still silent about what happened back then."

"Seven years ago, Fang Zhuo secretly collected funds and launched a hostile takeover of a listed company. This company was Sina that became his financial bargaining chip this month."

"Although this standard hostile takeover was whitewashed in various ways in the following time, it can still be regarded as a textbook hostile takeover."

"Obviously, Fang Zhuo was extremely good at dealing with capital long before China even joined the WTO."

"He is not as moderate as the public sees him."

"In the Eastern countries, people there call him a 'hunter.' Combined with the premeditated means shown in this Yike short squeeze, the failure of hedge funds is easier to accept."

"Fang Zhuo is extremely professional, extremely fierce, and extremely skilled."

"According to a Chinese grammatical usage, we are still willing to use 'scammer' to praise his abilities. We hope that the world's richest man will not sue us for our derogatory praise."

"Fang Zhuo is an extremely professional, vicious and skilled fraudster."

"Oh yes, it is worth mentioning that Jinrui Company, which was named by the richest man yesterday, soared by an unremarkable 83% today. GLG Fund had to clear its positions and leave the market. Fund manager Jason resigned to take responsibility for this loss. .”

"This is such a magical world, as if there is really an unforgivable curse issued from the hands of a mysterious person along the wand called Twitter."

“This crazy green light didn’t hit Jason, it hit our financial order and our institutions.”

The Los Angeles Times' eloquent comment quickly spread online.

Many people suddenly realized that it turned out that Mr. Fang was a professional and that was what he did. The short-selling institutions did not lose unfairly.

As for the label "fraudster" being brought up again, what does it have to do with it?

Compared with this, today's "richest man in the world" is what people care about the most.

Many Twitter users retweeted and commented.

"What's so magical about this? Isn't the organization greedy? I've quoted Mr. Fang's words again. Greed is a sin. In this case, the organization committed the crime first, and Mr. Fang was forced to defraud later. It is legitimate fraud!"

"I want to learn from Mr. Fang's professionalism, ferocity and skill. I hope that one day I can make these damn hedge funds kneel in front of me like him!"

"A professional fraudster from the East successfully deceived what is known as the most elite financial institution in the world? Isn't this the most magical thing?"

"No, no, no, the most magical thing is that the SEC is indifferent to this."

"Perhaps, the SEC did receive a report about fraud, but it saw Mr. Fang and the hedge fund and could not tell which party was committing fraud for the time being."

"As an investor from China, I would like to point out the error in this article. There is no fraud. The so-called 'trap' is just that we and Fang are overcoming the difficulties together. Well, even if we are really trapped, trap me. It’s Mr. Fang who lives here. It’s not just because we have the vision and fate, why doesn’t Mr. Fang trick you?”

There was a new uproar on Twitter because of Luo Bao's bottoming.

Fang Zhuo, who had been patrolling for the past two days, casually scrolled through Twitter after the night, and then saw another article slandering him.

He was a little angry, why was he still investigating?

Seeing that this man was a little unhappy, Su Wei said lazily: "It's so hateful. Who bought this public opinion? It's also so irresponsible. You just tell what you have done and that's it?"

"Hey." Fang Zhuo liked two tweets and put down his mobile phone, "It doesn't necessarily mean who bought it. The Luo Bao is inherently liberal and prefers to promote trade protection. It has expressed dissatisfaction with Yike mobile phones before. .”

He thought for a while and then said: "I don't know if it has anything to do with the plunge of bank stocks today. Behind the Los Angeles Times is Bank of America and Morgan."

Su Wei turned over, reached out to hold the phone in front of her, and said with a smile: "Isn't there any company that praises you? You, the founder, are closely related to Yike's reputation, can't we just leave it like this? After receiving so much money this time, it's a waste of money." Even if you smash it, you will become a hero."

Fang Zhuo snorted: "I'm not someone who spends this kind of money."

Su Wei was about to cash in.

Fang Zhuo said calmly: "This is the money the company should spend."

When an individual spends money, it is the individual, and when the company spends money, it is the company. We must distinguish between public and private matters.

Su Wei: "..."

Fang Zhuo calculated the time between the two places. Just as he was thinking about holding a video conference later, a number that had been noted today came in.

First make sure it is Mr. Fang himself, and then change it to Lu Peining over there.

His tone was a little solemn: "Mr. Fang, I'm under a lot of pressure now."

Fang Zhuo was not in a hurry and asked: "Then the SEC and Nasdaq, I, and I will announce the option settlement tomorrow morning?"

"No, no, no, wait a minute." Lu Peining immediately rejected the proposal, "What I mean is that we will definitely not last until the fourth day, and we will not be able to hold on until tomorrow."

Fang Zhuo said "hmm", knowing that the customers might have tried their best.

Now even other countries are speaking out on this, which is indeed quite influential. Regardless of the SEC or Nasdaq, it is not just one company that has the final say.

Lu Peining sighed sadly.

Fortunately, he quickly brought up another important matter: "Mr. Fang, we are paying close attention to the matter of Yike's patent. No matter what, the rights and interests of the company and the development of the industry must be protected. .”

Fang Zhuo still said "Yeah".

"MIGA Fund is very professional, and we all believe in Mr. Kong." Lu Pening paused and said in a subtle tone, "There is no need to worry about MIGA Fund. If you have the opportunity, just try your best to make profits."

Fang Zhuo heard the change in tone on the phone and had some thoughts, but he didn't know if it was what he thought. MIGA Fund's only concern now is customer information, and the profit that needs to be strived for now is not this time but next time.

Next time, customer information will take on another level of importance.

However, he didn't want to ask or test it out. No matter what actions Lu Peining and others did to cover up the best CEO in the world, it was their business and their burst of subjective initiative.

Yike just makes mobile phones, if you can do it well, MIGA just makes money, if you can make money, that's all.

Lu Peining made the important guarantee statement, but did not receive a strong response from Mr. Fang. He continued with some regret: "Mr. Fang, given that from last year to now, the financial market has always been turbulent because of this 'naked short selling', including Lei Both Mann and Merrill Lynch were shorted at critical moments, and there have been voices calling for a ban on 'naked short selling'."

Financial institutions are adept at using naked short selling to generate profits, but they have also fallen prey to naked short selling especially in the last year.

Financial giants such as Bear Stearns, Lehman Brothers, Washington Mutual, Wachovia Bank, and Merrill Lynch were all wildly shorted last year and eventually became part of the financial crisis.

Fang Zhuo said "hmm" calmly. He didn't know why Lu Peining mentioned this. Do you want to investigate?

"This time, because of the opportunity of the Yike short squeeze, perhaps the SEC will completely pass the regulations banning naked short selling. If passed, it will probably be called the 'Yike Regulations.'" This is what Lu Peining wants to say.

"It's difficult to completely ban this, it just adds some difficulty. Financial derivatives can also achieve this effect, making the short position in the market higher than 100%." ​​Fang Zhuo commented first, and then said, "This doesn't seem to be a good name. head?"

"I think this is more like a memorable medal." Lu Peining looked at it this way and said tactfully, "I know many people want to get to know Mr. Fang this time, and many people also think that Mr. Fang's New York Economics Institute It played a big role in the SEC."

The New York Economic Institute was the institution that emerged, and Summers was its head.

Fang Zhuo's head turned a few more times. Is Teacher Summers going to become the BOSS of Yike this time? After all, Summers is also closely related to the Carlyle Group, a large organization. He can easily mislead, and he can also help. Cover up the world as a good president.

These political considerations are quite serious, and I don’t know if that’s what they mean.

"Tomorrow, I will wait for the SEC's notice." Fang Zhuo put it aside for the time being.

"Well, Shapiro will call her personally tomorrow, and she will be the one to decide." Lu Peining said the name of the head of the SEC.

His tone was a bit gloomy, as the short squeeze was not endless and would eventually end.

Fortunately, it can be done multiple times.

…

The Nasdaq has not yet opened on the third day, and many hedge funds have already liquidated their positions, which has affected many investors.

It is said that funds from the mainland are also invested in the other side of the ocean via Hong Kong.

However, I don’t know who they are.

However, affected by the fierce competition in the mobile phone market, on April 21, Lenovo Mobile suddenly announced that it was looking for buyers.

Don’t play anymore, it’s not fun, sell it, let’s just leave it at that.