Chapter 106
In the final quarter of the year, Tiansheng Capital's primary focus remained on the backdoor listing, with the China Securities Regulatory Commission conducting a swift review. The entire process was being expedited, and if everything proceeded smoothly, the company anticipated resuming trading in the first quarter of the following year.
The intricate work associated with the backdoor listing was being managed by a dedicated professional team, leaving Lu Ming with the task of reviewing progress reports and similar documents. This allowed him some respite, and during one such moment, Su Xiaoman entered his office to deliver an update on the overseas QDII fund.
The fundraising for the QDII fund, named "Tiansheng Global Pioneer Mix," had concluded successfully, amounting to 8.628 billion yuan or approximately 1.35 billion US dollars. The fund's investments were set to commence the following week.
The substantial fundraising was attributed to the reputation of Tiansheng Capital and the allure of the QDII fund. Despite the limitations imposed on overseas investments, investors had confidence in Lu Ming's ability to bring about significant changes in the QDII fund landscape.
Taking a moment to enjoy a cup of tea, Lu Ming reassured Su Xiaoman about the timing of the fund's deployment. He noted that with global elections concluding and signs of a looming economic recession, a sell-off was likely at the beginning of the year. His strategy was to wait for this downturn before entering the market.
Distinguishing between QDII and QDIE funds, Lu Ming explained that QDII funds had a more conservative investment scope and lacked the flexibility of shorting. On the other hand, Tiansheng QDIE had a broader investment horizon, allowing for diverse strategies such as investing in overseas securities, non-listed company equities, debt, hedge funds, commodities, precious metals, and real assets.
Updating Su Xiaoman on the performance of Tiansheng QDIE, Lu Ming informed her that the nine call option varieties had yielded significant profits. The capital market under Tiansheng QDIE had reached 18.9 billion US dollars, reflecting a remarkable 278% return in just two months.
However, Lu Ming decided to close the call options, put 500 million US dollars into put options for these varieties, and initiate the accumulation of Tencent and Alibaba stocks without leveraging.
Regarding Bitcoin, he planned to continue accumulating at a price below $1,000, anticipating a rise during the next Bitcoin frenzy. Despite the daily trading volume being around 30 to 40 million US dollars currently, Lu Ming aimed to accumulate strategically during the next six months.
Su Xiaoman questioned the feasibility of investing billions in Bitcoin, given its P2P nature. Lu Ming, confident in his long-term logic for Bitcoin, stated that he viewed it as a scarce safe-haven asset, especially in times of economic uncertainty.
As for the remaining funds, Lu Ming directed Su Xiaoman to short crude oil futures with 3 billion US dollars and keep the rest offshore. Additionally, he instructed her to inform the team to prepare for a crucial task—leveraging the 10 billion US dollars to secure 50 billion US dollars in leveraged funds in early January of the following year.
Su Xiaoman, astounded by the enormity of the amounts involved, inquired about the approval process for moving such substantial funds out of the country. Lu Ming, exuding confidence, advised her to follow the normal process, subtly implying that Tiansheng Capital operated behind the scenes in this currency war.
Examining the prospect of Tiansheng Capital's assets at the end of the period, it revealed a remarkable scale. The assets managed by Tiansheng Capital had reached 321.288 billion yuan, with Tiansheng Capital's net assets at 129.5 billion yuan. The total LP across all companies approached 200 billion yuan, signifying the significant role Tiansheng Capital played in managing others' assets.
The core income for the company derived not just from high fees but also from excess performance commissions. Tiansheng Capital had generated substantial profits for its LPs throughout the year, and the excess income, yet to be reflected in the financial statements, promised additional returns.
As 2015 came to a close, Tiansheng Capital stood as a major player in the financial landscape, shaping its future endeavors with strategic investments, confident in its ability to navigate and thrive in the evolving global market.