Chapter 633
401 Chain Reaction
Chapter 633 401 Chain Reaction (4k)
Witnessed by media from Hong Kong, mainland China, and abroad, the news that Silicon Carbon Group had passed the dual review was immediately made public.
However, the focus of reporters and cameras remained on Yu Xing's short selling.
Silicon Carbon Group seems decent, but that's not enough to cause a sensation in Hong Kong; it only gained extra attention as a subsidiary of a century-old short seller.
Yu Xing's thank-you speech at the entrance of the Hong Kong Stock Exchange only earned him congratulations for less than five seconds.
After the perfunctory explanation ended, many reporters still kept pressing for details about the short-selling king's latest situation, asking about the lawsuit, the prospects of the SaaS market, and even Shanfeng's short-selling plans for this year.
Yu Xing even heard reporters mention other short sellers' pessimistic views on the Silicon Carbon Group.
There were too many questions and too many voices, but almost none of them concerned the listing of Silicon Carbon Group.
Yu Xing was in a very good mood today. In any case, the Silicon Carbon Group was close to going public, which would give everyone an explanation and allow them to share the benefits of the capital market.
Following up on the questions that interested him, he gestured and asked, "I didn't hear you clearly just now, who is pessimistic about the Silicon Carbon Group?"
A reporter in the crowd immediately said, "Kelbus of Hyman Capital said you don't deserve to be called the king of short sellers. He not only has a pessimistic outlook on Silicon Carbon Group, but also threatened to short it after its listing."
“Hyman Capital? I have never called myself the king of short sellers. That’s just something I made up.” Yu Xing shook his head, having never heard of this short seller. He then smiled and said, “But from my perspective, the fundamentals of Silicon Carbon Group are quite good. I am confident in its future.”
"Mr. Yu, Mr. Yu, the VP of Tableau, a listed company in the SaaS field that you mentioned in a previous interview, criticized you for obtaining the company's financial information. What is your response to this?" A reporter at the scene noticed that Mr. Yu was clearly in the mood to respond today and couldn't help but squeeze forward to ask, "He also said that he would file a lawsuit against you."
Yu Xing didn't understand: "Attacking me for obtaining his company's financial information? What do you mean?"
The reporters immediately explained the situation.
"This is really strange. I never mentioned Tableau, nor do I have any sensitive internal information about it. As for the market competition in SaaS, I believe that if you're interested in researching, you'll come to the same conclusion as me," Yu Xing gave a formal response. "This is also reflected in research reports from various Wall Street institutions, but I think the intensity and situation of competition in this market might be even worse. As for this so-called vice president..."
He said, somewhat puzzled, "I still don't understand what he meant, but it doesn't matter. I believe Tableau will soon release its financial statements, which will be the best material for everyone to study together."
Tableau's reaction will not cool things down; on the contrary, it will reinforce the pessimism surrounding the SaaS sector, especially at such a sensitive time when such rhetoric is rampant.
This basic attack will trigger the opponent's ultimate move.
Yu Xing didn't understand the other party's logic for a moment, but then he thought about it and decided not to try to understand. You can't see things through a lens. If you were stabbed in the waist with two knives, all the wrinkles in your brain would be smoothed out instantly.
The journalists became even more excited by the short seller's response, and their questions included views on a wider range of areas.
"Guoshanfeng only touched upon some market research findings. In my previous interviews, I only mentioned that competition in certain areas was still quite evident." Yu Xing attempted to end the conversation. "Although I didn't mention the names of listed companies, I still faced criticism. In the future, please refer to Guoshanfeng's official research reports. Any personal opinions I hold do not constitute investment advice."
He gestured for his bodyguards to leave so he could get into his car and leave, as he still needed to handle the next steps for the Silicon Carbon Group.
One of the reporters shouted, "Mr. Yu, I'm the car owner! I bought the car! I have a question!"
Yu Xing couldn't help but stop and wave to signal everyone to be quiet, but it had no effect. He could only raise his voice and ask, "Really? Is it used in Hong Kong?"
"I use it in both Hong Kong and the mainland; I have two license plates!" The reporter held up his phone, showing a photo that clearly showed Kyushu with dual license plates.
Yu Xing clicked his tongue in amazement: "I've never seen this in Hong Kong before. Is there anything you want to ask?"
The car owner reporter received special privileges, including the privilege of asking a question.
The media can't stop the short sellers, but Kyushu can.
The reporter, speaking in one breath, asked, "Mr. Yu, did your assessment of the SaaS, wearable device, and gene sequencing markets demonstrate that your subsequent short selling of Shanfeng wasn't focused on exposing fraud? Do you believe LeEco's problems stemmed from fraud or simply poor performance? Many voices in Europe, Japan, South Korea, the US, and mainland China believe you've manipulated the market, potentially leading to serious consequences like market bans. Competitors like Alibaba and Tencent are also trying to erode the market share of silicon carbon data in the mobile internet. How do you view the current situation in Lingang's business environment caused by your short selling exposure? How do you view the silence or criticism from institutions like IDG and Today Capital? How will you handle the political…"
Yu Xinggang had only been thinking about the first question for a few seconds when he realized something was wrong. Before he could stop, the other party had already launched into a series of questions.
He quickly stopped him: "Stop, stop, stop! You bought a Kyushu car, not the entire Silicon Carbon Group..."
The car owner reporter, still eager for more, said, "Mr. Yu, there are so many questions I hope you can answer. If you have time, could I do an exclusive interview with you?"
Before Yu Xing could answer, the other party added another sentence.
"I bought the top-of-the-line Max Kyushu!" the car owner reporter exclaimed. "I waited two months!"
Yu Xing showed his car owner full respect: "Contact my secretary later to arrange an interview time. As for these questions..."
Upon hearing this arrangement, the reporters nearby couldn't contain themselves and shouted, "Mr. Yu, I want an exclusive interview too! I can buy the top-of-the-line model too!"
Yu Xing glanced at it twice, but still answered the series of questions: "The summit will have regular operations. The focus will be on fraud under the guise of fundamental research. We may also talk about some competitive trends in general terms, but this does not constitute investment advice."
"As for the other things you asked about, just do them as they are."
"Those things that people are interested in, like criticism, competition, and insults."
"I do not care."
Reporters captured the scene on camera. The car owner, still dissatisfied with the response, pressed further: "Do you completely deny market manipulation? Mr. Yu, you didn't mention your views on LeEco, and what is the attitude of Shanghai authorities towards your short selling?"
Faced with the incessant questioning, Yu Xing smiled slightly, waved his hand, bid farewell to the numerous media outlets and cameras, and silently left in a car under the difficult escort of his bodyguards.
The questions asked by media reporters on different occasions have become very similar, and what cannot be said remains unsaid.
Yu Xing sat in the car, browsing the street scenes of Hong Kong, while his phone began to receive congratulatory messages.
Regardless of the problems brought about by the exposure of the mountain peak, the Silicon Carbon Group was eventually able to go public.
The vote count on the Hong Kong Stock Exchange Listing Committee was slightly separated, but heated debates could be faintly heard outside during their discussions.
Yu Xing, pondering the situation, instructed Cui Zhiyu: "The Ningbo factory doesn't need to be rushed. We need to push our cooperation with CATL forward as quickly as possible. Since we've chosen this path, let's achieve stronger vertical integration." The second phase of the Lingang factory will be able to release production capacity in Q2. The Ningbo factory is being built for new models and can be constructed conventionally. However, CATL is unwilling to increase its investment in lithium iron phosphate technology research and development at this stage, which requires the Silicon Carbon Group to take over and make more investments.
Although there are no plans for pure electric vehicles in the short term, the battery, one of the three major new components, remains of paramount importance.
Furthermore, with the exposure of Guoshanfeng, Yu Xing is now considering taking bigger steps in upstream and downstream integration. The more independent they are, the more composed they will be in the face of fierce competition in the domestic market or opportunities in overseas markets.
Cui Zhiyu nodded in agreement, and after a long pause, he sighed softly, "President Yu, won't our stock price look terrible? Will those short sellers really come to short us?"
"When there's no market, you think about sales volume; when there's sales volume, you think about going public; and once you're on the market, you think about the stock price." Yu Xing laughed. "Can you control the short sellers? You can only manage your own business."
Cui Zhiyu understood: "I understand, President Yu. Short sellers should take care of their own business!"
Yu Xing: "..."
The logic is sound, but it just always sounds strange.
Yu Xing has become accustomed to the public's persistent questioning of Guo Shanfeng, but he has not yet fully adapted to the complex gazes of those around him.
After pondering for a moment, Cui Zhiyu cautiously asked, "President Yu, can I hand over the money I have to you, and then, well, let's work together to combat counterfeiting?"
Yu Xing glanced at the vice president of the carbon silicon group, and after a moment of silence, said, "There will be a hedge fund in Hong Kong. We'll see then. Everything has risks."
"Combating counterfeiting is everyone's responsibility," Cui Zhiyu immediately replied. "President Yu, I understand!"
Yu Xing said, "You might as well use this money to buy cryptocurrency."
Cui Zhiyu chuckled: "President Yu, I don't believe in that stuff, I only believe in you."
Yu Xing decided not to continue the topic, saying that it was a matter of fate, and that Liu Jiankai's process of bringing things together was quite painful.
The vehicle drove through the city, heading straight for the hotel where they were staying.
Since arriving in Hong Kong, Yu Xing has not made any public appearances. However, with the Silicon Carbon Group nearing completion, he can now handle the invitations from many organizations and peers, including well-known figures in Hong Kong. They can have a meal together at the Ritz-Carlton to exchange pleasantries.
With Silicon Carbon Group listed in Hong Kong, it may also face short selling. Since Peak Capital and related funds also have their accounts here, they will inevitably have some dealings with each other.
Upon returning to the hotel, Yu Xing immediately contacted CATL to discuss the progress of the cooperative factory.
News of the short-selling king's company passing the review and his response in front of the Hong Kong Stock Exchange have once again spread throughout Hong Kong. A photo that has been widely circulated and cited by many media outlets shows his cool expression downstairs at the Hong Kong Stock Exchange.
—The king of short sellers doesn't care!
—The biggest short seller of the century visits the Hong Kong Stock Exchange!
—Short sellers knock on the door, financial intercourse occurs!
Many photos were taken with numerous lenses, but the cool-toned images that Yu Xing uses are currently very popular.
Mainstream public opinion still has doubts about whether Guo Shanfeng was ultimately guilty of market manipulation or other crimes. This is in stark contrast to the voices of netizens online, who believe that such accusations must exist but do not care, while the former's tone is always subtly critical.
At 5 p.m. Beijing time, US stocks begin pre-market trading.
The stock prices of publicly traded companies in the SaaS, wearable device, and gene sequencing sectors all experienced slight declines due to comments from the "King of Short Sellers" and the resulting responses. Tableau was the most severely affected.
Because the executives' response indirectly proved the situation was unfavorable, the stock fell 4% in pre-market trading from 5 p.m. to 10:30 p.m., wiping out $4.48 million in market value.
Wall Street analysts used this wave of public attention to increase their focus on Tableau, while also urging the company to disclose its true situation.
Following the opening of trading, another significant response emerged from a Tableau board member.
When interviewed by phone, the director responded to the reporter's questions and pressure by saying, "At least we didn't commit fraud."
This lack of confidence immediately drew criticism from analysts, who even brought up Guo Shanfeng's case: "Are you so proud of not fabricating anything? You're lucky you didn't fabricate anything. If you had, you would already be on Guo Shanfeng's short-selling list!"
Within fifteen minutes of the US stock market opening, Tableau's stock price plummeted 6.5% due to a variety of factors, wiping out another $6.52 million in market value.
More importantly, the entire SaaS sector and related stocks fell as a result of Tableau's decline. As the pessimistic views in this sector were validated, listed companies in wearable devices and gene sequencing also experienced varying degrees of decline.
Today, some media outlets have compiled statistics on 13 listed companies in three sectors mentioned by the "King of Short Sellers." Within 30 minutes of the market opening, all 13 companies suffered losses, once again proving the "King of Short Sellers'" reputation.
The Baixiaosheng Forum gave it a name: 13 US stocks that were named and fell by major short sellers.
The pessimistic sentiment is spreading, with rumors circulating that Tableau's upcoming financial report will show a significant drop that differs from market expectations.
Around 11 p.m., Yu Xing received a call from Zhu Zehui, the director of Lingang.
Zhu Zehui was also helpless. He had to advise the "honorary deputy director" over the phone: "President Yu, you... in your situation, you need to be politically conscious."
Yu Xing replied readily, "Received, understood."
Zhu Zehui suspected that President Yu did not understand, or that he was pretending not to understand, so he continued to persuade him for a few more minutes before saying, "President Yu, the Carbon Silicon Group is going public, and the work in Lingang has come to a relatively satisfactory conclusion. Although a big short seller has emerged, I still appreciate President Yu's support and hope that we can have better cooperation in other places in the future."
Yu Xing understood again: "Director, thank you for your support of the silicon carbon industry in Lingang. Silicon carbon sincerely wants to carry forward what we have learned in Lingang."
Zhu Zehui knew that President Yu truly understood this time, and finally said, "President Yu, I have never understood the situation of the mountain peak, but you have already grasped the vastness of the universe."
Yu Xing understood and smiled, "Yes, that's why we should cherish the green grass and trees even more."
(End of this chapter)