Chapter 914
NetEase Roadshow, Nasdaq 4500 points
The chimes of the new millennium still seem to echo in our ears, and the air is filled with a unique atmosphere of hope and restlessness characteristic of the new era.
However, in the heart of the global capital markets, this atmosphere has already been catalyzed into an almost frenzied fervor.
Technology stocks and internet concept stocks, these symbols carrying the dream of the "future," continue their dazzling ascent, driven by surging hot money.
Despite repeated bearish warnings from financial giants like Warren Buffett and Grantham of GMO, their voices piercing the noise with a chilling rationality:
"The Nasdaq surged 80% throughout 1999, indicating overheated market sentiment, which needed to be cooled down appropriately..."
"With the global economy booming, hot money is pouring into investing in the future, leading to over-buying..."
But once the behemoth that is capital is sailing at full speed in the current of fervent emotions, how easy is it to turn around?
The market remains engrossed in a euphoric rally, with every minor pullback seen as a buying opportunity.
The clock hands slid to February 18, 2000.
On this day, amidst much anticipation, the Nasdaq Composite Index proudly stood above the 4500-point mark for the first time!
On that day, the index surged like a runaway horse, soaring 121.25 points, a gain of 2.74%, and finally closed at a historic high of 4548.90 points.
The entire Wall Street and even global tech stock investors were in a frenzy, as if a "never-ending bull market" was just around the corner.
On this record-breaking night, deep within a secluded and luxurious private club in Shenzhen, light and shadow flickered.
Lu Yang sat in a private room with excellent privacy, opposite Ding Sanshi, who was about to depart for Wall Street to give the final roadshow for NetEase's IPO.
Exquisite dishes were laid out on the table, and a bottle of fine red wine had been opened, the liquid reflecting an amber light in the glass.
This meal was a farewell feast that Lu Yang prepared for Ding Sanshi.
Ding Sanshi's face showed a mixture of excitement and barely perceptible nervousness as he prepared to head to the "battlefield." He raised his glass and asked again, "President Lu, are you really not coming to Wall Street with me? With you here, I feel more at ease."
Lu Yang gently swirled his wine glass, a faint smile playing on his lips, but his eyes were as deep as a still pool: "The main characters on this stage are you and NetEase, so I won't steal the spotlight. I wish you a successful trip, a smooth bell-ringing ceremony, and all the best." He raised his glass in a gesture of respect.
"Thank you so much, Mr. Lu!" Ding Sanshi gratefully downed his drink in one gulp, then refilled his glass, stood up, raised his glass with both hands, and bowed deeply. "Mr. Lu, let me toast you again. Without your timely help and support, NetEase wouldn't be where it is today."
Lu Yang accepted it calmly and took a sip of wine.
As he put down his wine glass, he asked a question that seemed casual, but his sharp gaze fell on Ding Sanshi's face: "Mr. Ding, you've seen how hot the Nasdaq is right now, haven't you? 4500 points... a record increase... Don't you feel that this scene is a bit like a raging fire simmering hot oil?"
Ding Sanshi's heart skipped a beat, as if his deepest worry had been touched.
His cheeks, which had just flushed with excitement, instantly turned pale.
He was indeed anxious, eager to go public and raise funds to solve NetEase's huge funding gap, but Lu Yang's casual question suddenly amplified the fear in his heart that the market was overheating.
He tried to cover up his unease by downing the drink in one gulp, but choked a little and coughed a few times.
He took a deep breath, refilled his glass, stood up again, raised his glass with both hands, and spoke with unprecedented sincerity, even a hint of pleading: "President Lu, your insight is keen and your foresight is remarkable. To be honest, I am indeed a little unsure of myself. The future is uncertain, so I humbly request your guidance, President Lu!" He bowed slightly, his posture extremely humble.
Lu Yang looked at the young man before him, who would later become a giant in China's internet industry but currently appeared somewhat bewildered, and slowly shook his head. His tone was calm yet carried an undeniable sense of distance: "I wouldn't presume to offer guidance. The market is constantly changing, and I dare not speak presumptuously. But if I were in your position..."
He paused, looking directly into Ding Sanshi's eyes, "I will choose to postpone NetEase's listing plan again, and suspend the listing. Let's wait patiently and see where the market environment is headed before making a decision."
"Postponing the listing?!" Ding Sanshi's face darkened instantly, as if he had been doused with a bucket of cold water.
Delayed IPO?
This was the last piece of advice he wanted to hear at that moment!
NetEase's servers are groaning, its R&D is burning through cash, and its expansion is desperately seeking funding. Every day, it operates under immense cost pressure.
Postponed? How can we postpone it?
Lu Yang seemed to see through his inner struggle, the half-smile on his lips deepening, his tone carrying a hint of understanding: "Of course, I can understand your current situation, Mr. Ding. NetEase is short of money, extremely short of money. You are not me."
He gently swirled his wine glass, his tone calm yet carrying an invisible pressure: "No one can simply come up with that much real money to support NetEase's continued development."
“Yes!” Ding Sanshi put down his wine glass with a wry smile, his fingers unconsciously rubbing the glass. His voice was full of helplessness and a hint of resentment. “I’m not like you, Mr. Lu. I can’t afford that much money in my pocket. Besides going public and raising funds, NetEase really has no other choice.”
He seemed to be stating a cruel fact, or perhaps trying to convince himself.
Lu Yang nodded, offering no further advice, but simply added, "I'm just offering a perspective, a suggestion based on my personal judgment. The final decision—whether to postpone the IPO and seek other financing avenues, or to proceed as planned and gamble on this 'fiery' market—is ultimately up to you, Mr. Ding." He completely relinquished the choice to Ding Sanshi.
Ding Sanshi fell silent. He stared at the remaining liquid in his glass, his mind racing.
Today's staggering Nasdaq surge (nearly 3%!) hangs like a giant exclamation mark in my mind. Such frenzied growth is completely detached from fundamental support, and anyone with even a basic understanding of finance can sense the enormous risks involved—this castle in the air built on money and fanaticism will inevitably collapse sooner or later!
However, no one knows when or how the last straw will break the camel's back.
Time passed in silence.
Finally, as if making a decision, Ding Sanshi suddenly picked up his wine glass, downed the rest of the wine in one gulp, his Adam's apple bobbing, his voice hoarse with a do-or-die attitude: "I understand! Thank you for your invaluable advice, President Lu! No matter what the future holds, I will remember it!"
He gave Lu Yang a deep look, his eyes filled with gratitude, determination, and a hint of awe for the unknown.
"Alright, it's getting late." Lu Yang ended the conversation at the right time and pressed the service bell on the table. "President Ding has a long journey tomorrow, so please go back and rest early to recharge. See President Ding off."
"Farewell, Mr. Lu!" Ding Sanshi stood up, solemnly clasped his hands in a fist salute, and left the private room under the guidance of a waiter.
The door to the private room closed gently, shutting out the noise from outside.
The polite smile on Lu Yang's face vanished instantly, and his eyes regained their usual calm and depth.
He stood up, and instead of heading towards the door, he turned around and pushed open another, more secluded door on the inside of the private room.
Behind the door was another equally luxurious private room, but with a completely different atmosphere.
The deafening sound of music hit us, and the air was filled with the mixed scents of cigars and perfume.
Xiao Jun and Mu Qizhong were present, each with two young women in high-slit cheongsams nestled beside them. Xiao Jun's hands were roaming restlessly over the waist of the woman next to him, while Mu Qizhong, with a cigar in his mouth, was talking and spitting as he spoke, eliciting giggles from the woman who covered her mouth.
Seeing Lu Yang enter, the two men awkwardly withdrew their hands from the woman's body, sat up straighter, and craned their necks to ask, "Finished talking?"
"Hmm." Lu Yang responded expressionlessly, his gaze sweeping over the four women. His voice, though not loud, carried an undeniable authority: "Let them go out first."
Xiao Jun and Mu Qizhong exchanged a glance, and although they were somewhat reluctant, they still waved.
The women tactfully rose and filed out, making the private room much quieter, with only the background music still playing softly. Lu Yang walked to the head seat, picked up a plump grape from the fruit plate, slowly peeled it, and put it in his mouth.
He chewed carefully, then precisely spat the grape seeds into the bone dish.
Having done all this, he finally looked up at the two of them, his eyes sharp as knives, his voice deep and clear:
"The time is almost right. Starting tomorrow, I will begin to gradually reduce my holdings of Little Prodigy shares through the call auction." He deliberately emphasized "gradually" and "call auction".
Xiao Jun and Mu Qizhong's expressions immediately turned serious, and they leaned forward slightly.
Lu Yang continued, "Of course, you don't need to panic." His gaze swept across the two faces, carrying a hint of reassurance, but more so a confidence in controlling the overall situation.
"The measures will definitely be mild, and the pace will be controlled to avoid causing market panic. You must trust my judgment, Lu Yang." He paused, then emphasized, "You should also reduce your holdings. The time window is set at one month."
He picked up a damp towel to wipe his hands and analyzed, "As long as the Nasdaq doesn't collapse as a whole and market sentiment remains, we have a month to slowly release the shares, which is enough to buffer the impact on the stock price and should be able to stabilize the Little Prodigy's stock."
He looked at Xiao Jun meaningfully, "After all, you are the president, and a stable stock price is also beneficial to you."
“Okay! It’s settled then!” Mu Qizhong slapped his thigh and was the first to respond.
His shares were already quite small after dilution, so being able to cash out a portion at a high price along with Lu Yang was something he couldn't ask for.
Xiao Jun's eyes flickered, and he struggled internally for a moment.
He recalled his sister Qian Youyou's cold yet incisive analysis, his own anxieties about the CEO position, and Lu Yang's past almost superhuman judgment.
Ultimately, his trust in Lu Yang's judgment and his fear of the "abyss" overcame his anxieties. He raised his glass and nodded vigorously: "Okay! I'll listen to you! It's settled then! Let's toast to friendship! And to our 'secure win'!"
He deliberately avoided the sensitive word "reduction of holdings".
Lu Yang smiled slightly and raised his glass to clink with the two men.
He wasn't worried that the two of them would rush to sell and cause a market crash.
Mu Qizhong has a small shareholding and limited influence; Xiao Jun, although he holds a larger shareholding and is the president, is most hampered by his fear of losing his position. In order to keep his position as president, he will be very careful even if he reduces his holdings, and will never dare to sell off his shares in a big way, so as not to cause drastic changes in the shareholding structure and give others an opportunity to take advantage of him.
Moreover, Lu Yang had another card in his hand.
He took a sip of his drink, pondering: selling off a massive 31.7% stake entirely through a secondary market auction would indeed have a huge impact on the market; even doing it over a month wouldn't be the best strategy.
The best approach is to spread the word and attract powerful investors to take over.
Large-scale transactions, negotiated transfers!
As long as there is capital in the global market willing to accept a 75%-80% discount to the current share price, he is very willing to transfer most of his shares in one go or in batches through agreements.
In his mind, he ultimately only intended to retain a symbolic 5%-8% stake in the prodigy.
Anyway, hehe, there will be plenty of opportunities to buy back from the secondary market after the stock market crash.
After a few rounds of drinks, the three finalized a preliminary framework for their actions.
Lu Yang stood up first: "Alright, I'll let you know the specific details after I've made the arrangements. I'll take my leave now."
He left the bustling clubhouse and sat in the back seat of that understated yet luxurious car.
Lu Nini, who had been waiting in the passenger seat, immediately turned around and handed over a document: "Chairman, President Chen has prepared several contingency plans, just waiting for your instructions."
Lu Yang didn't take the document. He simply closed his eyes to rest for a moment. When he opened them again, a sharp glint flashed in his eyes. He ordered in a deep voice, "Notify Chen Fan to start the plan. Begin tomorrow, and execute it according to Plan A. Pay attention to the pace and secrecy. Whether this multi-billion dollar share reduction plan can be successfully implemented depends entirely on his abilities."
"Yes, Chairman!" Lu Nini immediately took out her encrypted phone and began to relay instructions.
As Lu Yang's top financial trader, Chen Fan will personally lead a highly skilled team to the financial heartland across the ocean to execute this "victorious retreat" quietly taking place at the peak of the capital frenzy.
three days later.
Lu Yang was working on documents in his office on the top floor of the Century Building when the telephone on his desk rang.
The caller ID shows a US number.
He pressed the answer button, and Ding Sanshi's tired but excited voice came through: "President Lu! Good news! We've basically reached an agreement with several major underwriters on Wall Street! To avoid any unforeseen complications and to ensure a smooth IPO, we've decided to adjust the plan!"
Lu Yang raised an eyebrow slightly: "Oh? Adjustment?"
“Yes!” Ding Sanshi spoke quickly. “The company originally planned to raise $1 million, but now it has been adjusted to $8000 million! The issue price and the number of shares issued have also been lowered accordingly. After evaluation, the underwriters believe that, given the current market sentiment, this size is easier for the market to absorb and has a higher success rate! The specific details are…” He quickly reported the adjusted issuance details.
Lu Yang listened quietly, his fingers tapping lightly on the smooth mahogany table surface.
$8000 million... That's a full $6900 million more than the approximately $1100 million he received when NetEase went public in his memory.
It seems that the flapping of my own "butterfly" wings has indeed changed its trajectory.
Early investment has made NetEase's development healthier and its valuation more solid, allowing it to raise more money even when it actively reduces its financing amount.
"Alright then." Lu Yang's voice was devoid of much emotion. "8000 million US dollars, as long as you spend it frugally and manage your finances carefully, should be enough to sustain you for a long time. Then I wish you all the best, Mr. Ding, and hope you ring that bell soon, and that the stock goes public... and sells like hotcakes!"
He offered a formulaic blessing.
"Thank you for your kind words, Mr. Lu! I look forward to the good news of ringing the bell!" Ding Sanshi's voice was full of gratitude and anticipation.
After hanging up the phone, Lu Yang walked to the huge floor-to-ceiling window and looked down at the bustling Shenzhen CBD.
Across the street, the outline of the new headquarters of the Qian Group is clearly visible.
He shook his head slightly, but a meaningful smile curved his lips, as if he were talking to himself:
"That's fine... Let's get the money first, survive. Once NetEase's stock price falls below its IPO price, to rock bottom where nobody cares..." A sharp glint flashed in his eyes, like a lurking hunter spotting the perfect opportunity to strike. "Then I'll use the huge sums of money from selling Little Prodigy to buy it at rock-bottom prices, and also Sina, Sohu, and other shining stars of the Chinese internet industry dragged down by the bubble..."
He seemed to have already envisioned a magnificent future for capitalism, his voice carrying an unwavering confidence in controlling the future:
"As long as they can catch their breath and weather this storm... in a few years, I, Lu Yang, will probably become one of the most influential shareholders in these companies..."
He paused for a moment, his smile gleaming with ambition: "By then, the wealth I'll have earned will be more than I could squander in ten lifetimes."
Outside the window, the city lights of Shenzhen shone brightly, illuminating the young man standing at the pinnacle of wealth. (End of Chapter)