Chapter 102

Following the holiday in October, Tiansheng Fund expeditiously disclosed the top ten holding stocks of its star fund, the "Tiansheng Value Growth Hybrid" fund, to the market. Investors, particularly those with a keen interest in the fund's performance, were met with a selection that raised eyebrows and prompted a flurry of discussions.

The fund's top ten holdings unveiled an intriguing mix of stocks, comprising Anshi Co., Ltd., Maotai, Wuliangye, Luzhou Laojiao, Haitian Weiye, Zhongguo Ping An, Ganfeng Lithium, Biyadi, Yiwei Lithium, and Huayou Cobalt. What caught the attention of investors was the fact that these holdings collectively accounted for a significant 85% of the fund's total position. This led to lively discussions among investors, with many expressing both surprise and admiration for Lu Ming's audacious investment choices, particularly his pronounced focus on new energy.

Investors couldn't help but notice the dominance of three liquor stocks—Maotai, Wuliangye, and Luzhou Laojiao—alongside a soy sauce company, Haitian Weiye. This quartet, representing the alcoholic beverages and condiment industries, collectively made up 40% of the fund's total position. Despite not experiencing substantial gains in the past month, these stocks held considerable weight in the portfolio, leading to diverse opinions among investors.

Of particular interest was the staggering surge of Anshi Co., Ltd., which saw its stock price soar from ten yuan to an impressive sixty yuan. Investors, astute in recognizing Lu Ming's prowess in price investment, couldn't help but applaud the performance of the Tiansheng Value Growth Mixed Fund, which outshone other funds in the city.

Despite the higher fees associated with Tiansheng Value Growth Hybrid Fund, encompassing subscription fees, management fees, and redemption fees, investors showcased a notable willingness to endure them due to the fund's remarkable performance. The fund witnessed a substantial net increase in subscriptions, reaching a scale of 20 billion in October, with consistent daily increments.

As discussions around Tiansheng Value Growth Mixed Fund persisted, Lu Ming and the executive team engaged in deliberations about the prospect of a backdoor listing. They meticulously explored various backdoor plans, eventually settling on the option of share repurchase and additional issuance of shares. This intricate plan involved the shell company selling its business and assets to the original controlling shareholder, simultaneously repurchasing and canceling shares held by the original controlling shareholder. To facilitate the backdoor listing, the shell company would then issue new shares to Tiansheng Holdings.

Discussions within the executive team revolved around crucial considerations, such as compensating for the liquidity premium and estimating the potential cost associated with backdoor transactions. Lu Ming expressed unwavering confidence in the chosen plan, emphasizing its strategic significance for Tiansheng Fund Co., Ltd.

While executives deliberated the potential costs involved in backdoor listings, Lu Ming tactfully dismissed an executive's statement, underscoring that, in practice, the market value of shell companies typically falls within the 3 to 4 billion range. He posited that the projected backdoor cost exceeding 8 billion could potentially ignite an uptick in the market value of these shell companies, rendering them suitable candidates for backdoor listings.

The focus on the backdoor listing and the sustained success of Tiansheng Value Growth Mixed Fund showcased Lu Ming's strategic acumen in the financial landscape, further fueling discussions and speculation among readers. The narrative culminated with discussions unfolding in the conference room, leaving readers intrigued and eagerly anticipating the future developments in this financial saga.