Chapter 642
has an explanation
Chapter 642 has an explanation (4k)
—The king of short sellers publicly questions LeEco!
— Jia Yueting: So you think you're the king of short sellers? Well, let me have a go at you!
—President Yu defeats his opponent in half a move!
—It is said that Jia Yueting caused a scene at the roadshow dinner of the Silicon Carbon Group. He went crazy under the influence of alcohol and argued fiercely with Yu Xing. In the end, the short seller could not tolerate it any longer and had Jia Yueting arrested and read out the charges of fraud against LeEco in front of him!
—Damn! The king of short sellers is too arrogant! This time, I'm on Jia's side! There's no room left for the big short sellers!
On the evening of February 4, Weibo, Zhihu, Sohu, Douyin, Weishi and other online platforms quickly followed up on the latest short selling incident in Hong Kong.
Although it's called short selling, neither Yu Xing nor Guo Shanfeng actually made any financial moves, but the public has become accustomed to calling this kind of action short selling.
Although the Spring Festival is approaching, the "Guoshanfeng Exposure Incident," which has lasted for more than two months since the end of last year, has cooled down. However, major media outlets still maintain a series or column about it. One reason is that Mr. Yu is still making moves in Hong Kong. Another reason is that he may be more low-key about short selling. Mr. Yu, who has always been known as a major short seller, has other businesses.
In any case, the words "Yu Xing" and "Guo Shan Feng" will surely remain fresh and relevant in the future.
Similarly, it's almost Chinese New Year anyway, so it's time to take a break...
The public has all sorts of opinions, but after careful investigation, mainland media reporters have found that it seems Yu's actions are not entirely to blame. Sun Hongbin and Jia Yueting deliberately flew to Hong Kong to invite trouble. It's like... the tree wants to be still, but the wind won't stop!
That being said, Mr. Yu isn't entirely without responsibility; after all, he was the one who made the tree grow.
The same applies to the allegations against Steinhoff that surfaced at the Hong Kong media conference; it was precisely because Mr. Yu became the king of short selling that people came here.
No, no, they only went to LeEco after they reported it. If LeEco really has problems, why is Jia Yueting still so stubborn as to go to Mr. Yu?
Mainland media found this very confusing and even tried to reconstruct the scene by referring to firsthand reports from Hong Kong media. However, the Hong Kong media's reporting style was exaggerated and sensational, describing the two men fighting on the spot, Jia Yueting leaving with a bloodied face, and Sun Hongbin even trying to fight back afterwards...
It's hard to trust Hong Kong tabloids, but the only thing that's certain is that Mr. Yu did publicly question LeEco.
This is the crux of the matter, which means LeEco's stock will inevitably hit its daily limit down tomorrow...
Whether it's the general public, media reporters, or people in the financial industry, almost everyone believes that LeEco's opening on Friday was inevitable.
Regardless of Guoshanfeng's violent acts before they were exposed, just looking at the situation after they were exposed, Mr. Yu's actions were swift, accurate, and ruthless, living up to everyone's expectations of "Guoshanfeng." Its value was truly realized through the evaporation of market value.
While LeEco was once the top company on the ChiNext board, and Jia Yueting is indeed well-known in the Chinese internet industry, without a strong rebuttal, market sentiment will not leave any room for maneuver.
At 9:30 p.m., the Shenzhen Stock Exchange, which was working overtime, sent letters to Yu Xing and LeEco respectively, requesting them to explain the market rumors.
Yu Xing's side had nothing to hide and quickly responded, sticking to two points: first, Guo Shanfeng did not short LeEco; second, he personally had doubts about LeEco's TV sales and gross profit margin, and discussed the contradictions between domestic suppliers, third-party institutions, and LeEco's financial statements.
That's the downside of having your identity public; if something happens, you have to respond.
LeEco's response was slow, and everyone from top to bottom was in chaos because of this sudden situation. Wasn't the boss's trip south all good news?
Another photo with Alibaba's Ma Chuan, another investment intention, another LeEco's attempt to build cars using silicon carbide, and another Tencent's willingness to set aside its rift with Alibaba to invest in LeEco...
Every piece of news that has emerged these days has been exhilarating for everyone at LeEco. How could it be that, just before the Chinese New Year, the boss suddenly barged into the banquet of the king of short sellers, only to be shorted in front of everyone and then beaten out with sticks?
LeEco executives urgently contacted Jia Yueting and his relatives, and even tried to contact Sun Hongbin, who was inquiring about LeEco, but they could not reach the boss.
At 11 p.m., some of LeEco's senior executives finally received a response from their boss, mostly via text message, with a few receiving phone calls. The content was roughly the same: a meeting would be held the next day, where he would take charge and publicly refute the allegations, and criticize Yu Xing's questions as unreasonable.
Only then did LeEco respond to the Shenzhen Stock Exchange's letter, denying Yu Xing's allegations and stating that the chairman would hold a formal press conference before the market opened tomorrow.
News media that have been following the developments of the incident received LeEco's statement immediately, which can be summarized in three words: "See you tomorrow."
Such a confident response has left some people with doubts. Perhaps LeEco's problems aren't as serious as they seem?
Otherwise, how could LeEco and Jia Yueting have made such a confident statement?
Jia Yueting is also a well-known figure in the internet industry. If he didn't have confidence, how could he say "see you tomorrow"?
Some people, based on common sense, believe that this could be a fierce battle, and at the very least, LeEco won't collapse as easily as previous companies.
Zotye, which has been deeply involved in the automotive industry, and the "South African IKEA" listed in Germany, are both too weak. But LeEco is different. The boss of LeEco personally went to arm wrestle with the head of short sellers, so there must be something to it!
The Baixiaosheng Forum, known for its rapid and professional gossip sharing, is still undergoing technical upgrades. This has left a group of users on the front lines of the internet itching to share their opinions, so after much deliberation, they decided to go to Douyin (TikTok) and use the keyword "Baixiaosheng" to express their views.
"I found it strange when Mr. Jia came to Baixiaosheng to curse last time, and now it seems there's definitely a problem."
"Mr. Jia launched a charge against the king of short sellers. No matter how he dies in the end, this alone is worthy of respect."
"I'll make the simplest prediction: tomorrow LeEco will only have four words to describe it—limit down and locked at the daily limit."
"Mr. Yu was not optimistic about LeEco's car manufacturing a long time ago. He did not reveal Shan Feng's identity at that time, but he is the same person. There must be a reason for his statement. Isn't this why LeEco has recently been questioned online? It's just another way to verify the situation. I want to see what Mr. Jia will say tomorrow. Mr. Yu's response to the Shenzhen Stock Exchange is obviously only part of the story. He may still have tricks up his sleeve."
LeEco and Jia Yueting's "See you tomorrow" signaled another round of direct confrontation, leading to speculation about other possible methods or appropriate responses. Some even believe that Jia Yueting is colluding with panel suppliers.
Regardless of the circumstances, this "see you tomorrow" statement is undoubtedly a powerful response to the king of short sellers!
This is how Xiong Xiaoge judged it, this is how Xu Xin judged it, and this is how Liu Wanying judged it.
Even the top executives of major internet companies who are also watching the drama unfold think the same way: Jia Yueting will definitely stick to his guns until suppliers or third-party organizations investigate and prove his innocence, and only then can a clear conclusion be reached.
Of course, this is all on the premise that the short sellers don't have any more evidence. If it's a one-on-one battle, LeEco will most likely die. Now it's just a matter of seeing how that death unfolds.
After finishing the dinner in Hong Kong, Yu Xing returned to his suite. As soon as he and Zhang Yangxu entered the room, Li Song, who was in the living room, rushed up to him.
"Mr. Yu! You didn't call me when you were shorting the market!" Li Song's face was beaming with excitement.
"Well, didn't we use your data?" Yu Xing said with a smile. "Or do you want to ask President Jia in person?"
Li Song shook his head, wishing he were the one to confront Jia Yueting directly, but ultimately considering Today Capital and Xu Xin's situation, he sighed and thought back: "Was my research not thorough enough? If I had known he was coming tonight, I would have done a better job of researching, and then let you throw it in his face."
“That’s enough,” Yu Xing said calmly. “Some parts will still need more time, but he couldn’t even explain the first sentence, nor does he want to. We won’t need to explain it later.”
Liu Wanying had already chatted with Xiong and Xu, who were following the gossip, through CC's online meeting room. At this point, she said, "Jia Yueting and LeEco are going to hold a press conference tomorrow. Many people are waiting to see them tomorrow. They may deny everything, and they might even sue you."
Yu Xing flipped through the news, then through his text messages, and even saw a message from Sun Hongbin.
He couldn't help but laugh and said, "This person, well, Mr. Jia has probably already run away."
Liu Wanying, Li Song, Zhang Yangxu, and the others were all taken aback upon hearing this, and almost simultaneously exclaimed, "They ran away??"
Yu Xing shrugged: "I guessed."
He still couldn't figure out why Jia Yueting wanted to see him tonight, but it was clear that LeEco itself had problems. And recently, LeEco had indeed been questioned online because of his previous skepticism about its car manufacturing. The fraudsters knew the situation and were probably prepared for both possibilities.
If LeEco had been suddenly targeted by short sellers at a peak, it might not have been prepared. However, the situation is different now.
Yu Xing believes that Jia Yueting will definitely not stubbornly cling to the debt hole in the country.
Liu Wanying's expression was strange: "Is that likely? I'd like to see if there's a clash of experts." "A conman's scheme often isn't about how skilled they are," Yu Xing laughed. "Forget about Li Song, what's so great about him?"
Li Song felt that neither of them treated him like a human being, but... never mind.
He pondered for a moment and said, "The true situation of LeEco is actually not that difficult to see through."
“Yes, but who would bother to spend time and energy to thoroughly analyze it?” Yu Xing nodded. “LeEco’s value as a target of short selling is not high.”
Without any profit motive, normally no one would carefully study the discrepancy between financial report data and the actual situation. Even when there were calls on the Baixiaosheng Forum to investigate LeEco, most of them just talked about it, and the few who did visit the site were only superficial.
As for further mobilizing industry resources for verification, the requirements are even higher.
Yu Xing felt that something was strange about what happened that night, but he couldn't figure it out for the time being. He could only say that the world is universally interconnected and in motion, and he didn't know which link in the connection and development had reached a certain point.
Li Song was still reminiscing about and excited about LeEco's situation.
Liu Wanying handed over a cup of tea and a document.
Yu Xing and she exchanged glances, then carefully reviewed the short passage.
This means the world is connected again.
Since arriving in Hong Kong last month, the listing of Silicon Carbon Group is getting closer and closer to its official listing. However, investigations and lawsuits against Guoshanfeng in Europe, the United States and Japan are also in full swing, and the legal team has been working intensively.
At this stage, two pieces of news have emerged: one is that there is a possibility of a settlement, but the price may be very high; the other is that even if a settlement is reached, Yu Xing will be required to admit to some of the charges.
There are many uncertainties here. Even if he partially pleads guilty, there is still a risk that his companies will be unable to go public, and the Silicon Carbon Group may also face procedural issues in the future.
The team of lawyers is very famous and experienced, but they are not omnipotent.
Fortunately, this process will definitely be quite lengthy.
While Yu Xing was busy with roadshow work in Hong Kong, Liu Wanying took charge of some of the communication with the lawyers. At the same time, she also had time to deal with the overwhelming amount of information she had received since Shanfeng's exposure. George, who came to Hong Kong to report Steinhoff on the spot, was the most proactive.
Most of the emails and messages were sent to Silicon Carbon Group, Silicon Carbon Data, and even Red Falcon Capital, and some people secretly made phone calls to Xiangjiang Hotel.
Liu Wanying noticed some information, one of which, involving high-frequency trading by investment banks, caught her attention.
Because the logic described above aligns quite well with the regulatory information she found.
In short, investment banks such as JPMorgan Chase and Deutsche Bank are using high-frequency trading to manipulate silver prices.
Liu Wanying reviewed the price trends of silver in recent years and believes that the situation is highly likely to be true. Once confirmed, it will inevitably result in a severe penalty.
Given this situation, could we coordinate with regulatory agencies to conclude their investigation of the mountain peak with minimal losses?
Yu Xing read it twice, closed the document, handed it to Xiao Ying, and pondered the matter in his heart. Guo Shanfeng was going to become the whistleblower's alias.
He shook his head and said, "We still need to determine its authenticity as soon as possible."
“They want to talk to you,” Liu Wanying said. “It’s probably true.”
Yu Xing felt that talking was possible, it was just a matter of keeping their identities secret or seeking benefits, but this issue...
His gaze shifted and landed on Li Song, who had a background in finance.
Li Song, unaware of the implications of their conversation, strained to listen.
"Mr. Li, do you really want to join Guoshan Peak?" Yu Xing asked.
Li Song said proudly, "Yes!"
Yu Xing said, "We have a task to handle right now, why don't you come along with us?"
Li Song thought for a second and then agreed: "Okay!"
Yu Xing laughed and said, "I might offend people, aren't you afraid?"
Li Song answered without hesitation: "I'm not afraid!"
Yu Xing handed the document in his hand to Li Song.
Li Song took it and looked at it, his eyes widening as he finally hesitated and said, "This..."
Yu Xing wasn't surprised: "Are you worried that Today Capital will be affected?"
Li Song shook his head: "No, President Yu, I'm worried that the Silicon Carbon Group will be affected. Do you still want to go overseas?"
Yu Xing: "..."
……
In the dead of night, many people are sleepless.
This was especially true for Jia Yueting on the plane.
He thought about everything back home, about his family and colleagues, about the money he hadn't transferred out, and he even shed tears.
Looking at the moon in the sky and thinking about what would happen after landing in New York, Jia Yueting felt only confusion, helplessness, and sorrow.
In such a state of mind, he had no idea what the future held.
After a long while, Jia Yueting had an idea: what would President Yu do?
What if the surname is Yu?
Jia Yueting's eyes instantly turned red as he thought of that short-selling leader. The man surnamed Yu made his fortune by shorting stocks. If it were him... he would definitely be shorting the Silicon Carbon Group fiercely right now!
(End of this chapter)