Chapter 647: prosperity and decline
On the ninth day of the Lunar New Year, the Shanghai Composite Index plummeted, falling from 3040 points to more than 2800 points.
If Fan Wumian had not invested 4 or 5 billion RMB in the closing period, which gave the market a slight boost, the decline would have probably been even greater, and the share prices of most A-share listed companies would have hit the limit down.
Just a few days have passed, and just as Fan Wumian predicted, the market has begun to recover rapidly, regaining 2850 points and 2900 points in succession. Many media have also said that it is just around the corner to exceed 3040 points again, and even set a new high, and there is hope of successfully breaking through 3500 points.
It seems that there is an invisible force that is desperately trying to inject bubbles into the A-share market. While international hot money is pouring into the A-share market, there are also rumors that the scale of QFII (Qualified Foreign Institutional Investors) will be further increased from US$100 billion to US$300 billion.
That is to say, 300 billion US dollars of international hot money will be allowed to enter the A-share market for stock trading and financial management. In name, it is to further open up the market, but Fan Wumian always feels that some bad guys are starting to make trouble, as if they are afraid that the bubble is not big enough or will not fall hard enough.
In addition, the mainland's economic growth rate in the first quarter of this year was higher than expected, leading many investors to believe that the so-called subprime mortgage crisis was limited to this.
Just like the story of "The Boy Who Cried Wolf", many experts often mentioned this term, which made the mainland market numb, thinking that the shoe had dropped and there would not be any serious negative impact.
When it comes to making money, many people find it difficult to stay sane.
There are also some smart investors who, for the dual considerations of making money and hedging risks, choose to hand over their funds to the fund company under Fan Wumian's name. These days, many investors are indeed feeling happy because the yields of Boshi Fund and Mainland Bandit King Fund have outperformed the market and performed quite well.
Two days later.
Fan Wumian once again raised more than 80 billion yuan. After he asked his analysts to evaluate it, he decided to set the upper limit of funds raised by the Boshi Fund at 950 billion yuan in order to prevent it from becoming too big to fail and to build a golden brand. The Mainland Bandit King Fund would only raise 250 billion yuan.
The total is 1200 billion RMB. Once this number is reached, the news will be released to the public to suspend subscription and only old users will be allowed to redeem.
Until the A-share bubble was inflated and burst, causing a stock market crash, these two asset management companies only sold shares and did not buy any shares, and only resumed opening subscription channels after the crash.
The disadvantage of doing this is that you will earn much less money in the short term. After all, from the perspective of the asset management company, regardless of whether the client makes a profit or a loss, they can receive management fees and handling fees, etc.
If the company is shameless enough to make a profit, its financial report will probably look quite good.
The benefit of being conscientious and responsible to customers is that you can become famous overnight and successfully establish a good reputation.
If he can make more money for his clients now, he will have the opportunity to raise more funds in the future. Fan Wumian has never thought of running away after making this profit, so he attaches great importance to long-term interests.
With the current average transaction volume of A-shares, plus the possible appreciation of these customer assets in the future, it is already quite difficult to cash out all the 1200 billion in the short term. Any more will just be trapped in the market and fall freely along with the stock market crash. It will be very difficult to manage more funds.
On the other hand, the Hong Kong City Bandit King Fund does not have too many concerns.
On the one hand, it is because the size of the U.S. stock market is very large. For example, Berkshire Hathaway, managed by the stock god Buffett, can hold hundreds of billions of dollars in cash and wait and see. There are almost no restrictions in the securities market, so it is relatively easy to close positions and run away.
On the other hand, because the opportunity is rare, Fan Wumian wants to seize this speculative opportunity to make more money. Moreover, the Gangcheng Bandit King Fund mainly serves private equity clients, and the "2+20" performance commission rule provides him with the opportunity to make huge profits.
If the fund-raising from Hong Kong City is also suspended, the scale of potential losses will be too large. Recently, a lot of hot money from Southeast Asia, Japan, South Korea, Taiwan and even Europe, the United States and the Middle East has also been paying attention to the Hong Kong City Bandit King Fund.
If he can prove his ability to make money in the future, the future development prospects of the Hong Kong City Bandit King Fund will most likely surpass those in the mainland.
As one of the world's most renowned financial centers, Hong Kong has almost no restrictions on capital flows, and a large proportion of its customers come from the mainland. The ceiling is of course much higher than that of the single mainland market.
Fan Wumian was of course happy that the amount of funds he managed was increasing continuously, but after a few pieces of bad news appeared in the market, it became quiet again, as if there was no problem in the subprime mortgage market, which made him feel bored again. The process of waiting always seemed so boring.
Fan Wumian shifted his attention to the entertainment industry. After learning about the recent situation of Hong Kong entertainment, he found that the market was in a slump and it was really too bleak.
"Huo Yuanjia", in which Zhuang Muxi made a guest appearance, only earned 3150 million Hong Kong dollars in Hong Kong last year, and "Baby Project" starring Jacky Lung only earned 2400 million Hong Kong dollars.
These Hong Kong movies can only be regarded as relying on their old capital in the mainland market. Some of them have not even recovered their investment costs, let alone compared with the Lunar New Year film "Lost on Journey". Their total box office performance is not even half as high as "Wulin Waijiao Part Two: The Treasure of Hengshan".
Even though people know that the spin-off movie of "Wulin Waijia" is made for the purpose of making money, fans of the show still love to watch it. Many fans even say that only four seasons are too few, and it would be better if it could be broadcast for 10 years like the American TV series "Friends".
Only 51 Hong Kong films were shot last year, the lowest level since the mid-80s. Co-productions have gradually shifted to be dominated by the mainland, and the ratings of TBV TV dramas are generally poor. The young actresses and actors cultivated there lack influence even in Hong Kong, let alone being popular throughout Asia like in the early years.
As for the relevant practitioners in Hong Kong entertainment, the number has also dropped rapidly from more than 10,000, which means that many people have no way to make a living and have been forced to switch to selling snacks, delivering takeouts, doing hard labor, sales, etc.
Driving a taxi is a relatively high-paying job in Hong Kong, especially for those who own private taxis. The value of a license is equivalent to a house in Hong Kong, so it is not an industry that one can enter casually.
Recruiting people from the mainland would result in much cheaper wages, and Fan Wumian would certainly not pay out of his own pocket to support these people with high salaries just to gain some prestige.
Things change, and after the glory of the 90s, Hong Kong entertainment began to decline.
Many poorly made movies that lack careful logic are indeed not that attractive. The old money-making model is no longer working, so it is normal for it to go downhill.
The sluggish entertainment industry in Hong Kong has provided Fan Wumian with some opportunities to pick up bargains.
For example, during a drink two days ago, Eason Chan mentioned that he once went to a dinner party with friends to play football. During the meal, Gu Tianle, who likes tanning, asked indirectly how he could switch to Fan Wumian's team, and also said that his contract was about to expire.
Gu Tianle has gained great popularity through works such as "The Return of the Condor Heroes" and "A Step into the Past", and is undoubtedly a cash cow.
There is also the well-known singer Rong Zuer, who is also currently discussing cooperation with Fan Wumian's studio. The problem is that her old employer seems unwilling to let her go. Even if she switches jobs, she may not be able to bring the copyright of the songs over.
People go to higher places and water flows to lower places. Even if Fan Wumian does not want to poach other people's talents, other artists will still take the initiative to extend olive branches, hoping to switch to his team and obtain higher income shares and better resources.
Since the beginning of this year, singers such as Fish Leong and Zhang Hanyun have switched to his company, and for this reason, Fan Wumian even acquired a company specifically for preparing and planning concerts.
In recent months, he has been mainly busy dealing with business matters, but his personal studio, Bandit King Media, Myth Film Studio, Holy Flame Meow Meow Agency, etc. have all developed in an orderly manner. Tudou.com has also acquired a large number of online copyrights for film and television dramas and tried to launch them in the form of web dramas.
With his strong financial support, it was not difficult for him to become bigger and stronger in the entertainment industry. Even old-fashioned entertainment companies such as King Entertainment and TBV were surpassed by Fan Wumian and began to increase their profit sharing ratio and pay high film remuneration to prevent a large number of top artists from leaving.
Wang Jinghua, the top mainland agent who jumped from Huayi Brothers, has not had a smooth cooperation with his new employer and has also been in frequent contact with senior executives under Fan Wumian recently.
All I can say is that in the entertainment industry, capital is indeed king.
With Fan Wumian's ability to make money, it would be very easy for him to get rich from other places and come back to the entertainment industry. (End of this chapter)