Reborn 92's Business Tycoon

Chapter 587: Decision

Li Ruiyuan asked Feng Yiping very perfunctorily about his trip to the United States, and then impatiently switched the topic to the mobile stocks that he was unsure about. 'These are the circumstances that I have gathered so far. Yiping, what do you think?'

'Di, oh no, Mr Li, let's go for a walk by the sea,' Feng Yiping almost said "Lord Di," mainly because the sentence structure of "what does Yuanfang think?" was too well known.

'The sea?' Li Ruiyuan was a little puzzled, this was not California.

'Yes, let's go to the beach,' Feng Yiping didn't say why, and the next arrangement was also to inform him.

'Oh, okay,' confirming his request, Li Ruiyuan couldn't wait to head to Repulse Bay Beach, and instead took Feng Yiping directly to Tsuen Wan Riviera Park.

The sea breeze in Hong Kong is still a bit powerful, and Feng Yiping wrapped his clothes tightly as he accepted a cup of hot coffee from Li Ruiyuan. Looking at the Tsing Yi Channel, which was getting narrower and narrower due to continuous landfills, he said, 'The cancellation of two-way tolls is definitely an unfounded rumour.'

He really can't remember which year two-way tolls were cancelled, but if you say it was in the early 2000s, what kind of dreams are you having!

It seems that two-way tolls were really cancelled when the internet gradually became popular and there were more and more ways to communicate, so the mobile company had no choice but to do so.

As for now, there are not many netizens, and the other communications company, Unicom, is not a competitor of Mobile, so how could it let go of such a profitable business and take the initiative to cancel it? How could it!

What's two-way charging? The Chinese people have always been very tolerant when it comes to the prices charged by these monopolistic state-owned enterprises for their services. Or perhaps they are resigned to their fate, and despite their complaints, they continue to use their services.

These state-owned enterprises, on the other hand, are able to rely on their status as state-owned enterprises and pocket the profits without being held personally accountable – at least on the surface. In reality, however, some of the profits do end up in their pockets, and they blatantly exploit their domestic users in various ways.

Let's just say that later, when it came to the same mobile operator, the packages they launched in Hong Kong were generally half the price of the equivalent packages in China. What could you do about it?

'Is this the information you got from the relevant channels?' Li Ruiyuan asked.

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'Just pretend it is,' Feng Yiping said, not wanting to tell him the reason, simply going along with his line of thinking, so that Li Ruiyuan would think it was not a bad idea for him to have connections at the centre.

'Then why would First Boston suddenly make such a move?' Li Ruiyuan was very puzzled.

It seems that compared to those international investment institutions that are adept at exploiting loopholes in the law and will stop at nothing to make a profit, Li Ruiyuan is still considered simple and kind.

'I think that their actions, and the rumours circulating in the streets, should be a carefully designed combination of actions, the result of their very precise guidance.

For example, the view they are now spreading is that if two-way charging is abolished, mobile revenue will definitely fall, but is that really the case?' Feng Yiping asked.

'Revenues will definitely decline,' Li Ruiyuan said. Don't you understand?

Feng Yiping shook his head. 'You, too, seem to have been influenced by their propaganda and have some preconceived ideas.'

'Our ancestors said it well: there is always two sides to a coin. Abolishing two-way charging will affect revenues, but a tariff reduction will attract more users, and maybe profits will even rise!

So, this is the result of their meticulous operation. If I'm not wrong, there will definitely be other arrangements in the future,'

Feng Yiping's words were relatively clear. Li Ruiyuan thought about it and realized that he was right. If two-way charging was really cancelled, the total profit might really be higher than it is now.

He thought about it some more and was shocked. 'Ah, you mean,' he paused, not believing it, and said with some disbelief, 'they manipulated the stock price of China Mobile by deliberately releasing this fake news?'

In the home stadium of such a large country as China, to manipulate the stock of a large state-owned enterprise that is closely related to the country's economy and people's livelihood, and is also a powerful enterprise, is unbelievable no matter how you look at it. There has never been such a precedent in other countries.

Oh, for those investment institutions, the more no one can think of it, the higher the return they may get.

Feng Yiping didn't say anything, and Li Ruiyuan asked himself the question there and then, 'No way, this is First Boston, doesn't it have a good relationship with the central government? It wouldn't do something like this, would it?'

'If the return is lucrative enough and it complies with Hong Kong law, why wouldn't they do it?' Feng Yiping asked in return.

Hong Kong has always said that its legal system is perfect, but that is only in relation to the mainland at the moment, and it is really not so in the world at large.

For example, the existing securities trading law in Hong Kong is very lax when it comes to stock price manipulation, and it is not even as good as some third world countries. In Hong Kong, international investment institutions that can only scratch the itch but cannot exploit such loopholes will not let go of such a good opportunity, will they?

'If it is really as you have speculated, then wouldn't the stock price of Mobile fall regardless of whether the abolition of two-way fees is true or not?' Li Ruiyuan continued his analysis, 'If so, why don't we short sell Mobile's stock now?'

Having figured out the reason, he finally returned to his duties as an investment manager.

Feng Yiping shook his head, 'I told you a long time ago that there are many opportunities to make money. Following the international investment institutions that exploit legal loopholes and snipe the shares of China Mobile is, to say the least, aiding and abetting the enemy. It's better not to do such a simple and rude thing,'

'That's right, after the fact, it's very simple for the stock exchange to investigate the actions of local companies like us,' although this is legal, it is never a good idea to get on the wrong side of the authorities.

They don't have the backing of those international investment institutions.

'No, you said not to do such a simple and rude thing, so we still have to do something?' Li Ruiyuan heard the meaning in Feng Yiping's words, and it seemed that this time, they were not just not moving, they were just not following the trend of short selling Mobile.

'Think about it again. It doesn't matter if you can't figure it out. The bottom line is that you should ignore all these storms and troubles in front of you. Your task these days is to raise as much money as possible,'

This time, Feng Yiping wants to raise a record-breaking 100 million US dollars. Compared to the returns he plans to get, short-selling is not very good, and there may be hidden dangers, so don't do it!

Speaking personally, he can't accept following international institutions and blocking the stocks of domestic listed companies.

What's that saying? Business has no borders, but businessmen have a motherland!

'We're almost ready. We're selling off the stocks that we've been trading in the short term. These days, we're selling them off one after the other.' This was the second time in a few days that Feng Yiping had said something like this to him, and Li Ruiyuan didn't dare to take it lightly.

'As quickly as possible, even if the profits will be lower because we're in a hurry to sell,' Feng Yiping added after getting into the car.

'Understood,' Li Ruiyuan also volunteered, 'Mr. Feng, don't worry, no one else will know about today's conversation,'

Feng Yiping nodded with some relief. He had made the right choice in choosing Li Ruiyuan. He was skilled in his work, had his own convictions, and most importantly, as he had promised during their first meeting at the teahouse, if Feng Yiping personally instructed him to do something and he had a problem with it or couldn't figure it out, after stating his reasons, if Feng Yiping still insisted, he would still do it.

This characteristic of his really saved a lot of trouble when encountering similar situations in the future.

Feng Yiping knew that there were plenty of people in the world who were smarter than him, and just because Li Ruiyuan couldn't figure it out now didn't mean that other people wouldn't be able to after hearing the analysis he just gave.