The decline in the stock price of the Pharmaceutical King Group started on June 3rd. I once searched for news around that date and found that in Hong Kong, the media had exposed news about Grandpa being seriously ill and Jiang Qingfeng intercepting profits from the Qixia Pharmaceutical Factory.
Jiang Banxia knew that Chen Zhenming was testing her a bit, and she had come prepared. So she smiled slightly and said:
“Since all the patent holders of the Pharmaceutical King Group are Grandpa, and he is also the representative of the group’s scientific research strength, these two pieces of news… should be the direct cause of the stock price drop.”
“Go on. Can you analyze who the mastermind behind this is?”
Chen Zhenming nodded approvingly.
“In Hong Kong, the media outlet that first released this news was Apple Daily, which is part of Next Media Group.”
Jiang Banxia smiled and said, “And in Next Media Group, the Changhai Fund under the Nie family holds a 15% stake. I believe the Nie family and Next Media are acting in concert. In fact, could it be that the Nie family is the real mastermind behind this?”
“Very good. Based on the trading volume over these days, the flow of funds in and out, the trading style, and so on, can you figure out the opposing trading team?”
Chen Zhenming asked.
“This… I can’t tell,” Jiang Banxia hesitated for a moment, then shook her head.
“Good. Seeing this much already makes you pretty impressive. Welcome to our team. Let’s fight side by side!”
Chen Zhenming nodded, and Jiang Banxia was so overjoyed she nearly jumped for joy.
Working under Chen Zhenming—what a lucky thing that would be! It would truly be the pride of her lifetime.
“Alright, now let’s take a look at the other side’s trading style.”
Chen Zhenming spoke slowly: “Starting from June 3rd, three consecutive ‘beheading’ candlestick patterns broke through the 5-day and 10-day moving averages. At the same time, combined with unfavorable analyst reports on financials, negative media coverage, and net outflows of large funds exceeding 6% daily—this kind of style, who does it remind you of? Here’s a hint: try narrowing it down to financial trading teams in Hong Kong.”
“David Fang!”
A blonde-haired, blue-eyed woman in the room adjusted her gold-rimmed glasses and said calmly.
“Fang… Fang Zhanbo!”
Hearing that name, Jiang Banxia’s heart jolted, and her pretty face turned deathly pale.
“That’s right, it’s him!”
Seeing Chen Zhenming nod, Jiang Banxia’s delicate body trembled slightly, and her heart grew cold, as if she had fallen into an ice cellar.
“Fang Zhanbo is likely cooperating with the Nie family as an independent third party,” Chen Zhenming said.
“This guy is very conservative, or rather, very cunning. He generally doesn’t use his own firm’s capital to short stocks. He’s probably just acting as an external brain, using the funds of the three major families of Jinling!”
“So, based on our calculations, the short selling over these days has already exceeded the 8 billion yuan in liquid funds held by the three families. They’ve likely used equity pledges for margin financing and securities lending!”
“Therefore, our counter-strategy should be to go with the flow, lure the snake out of its hole, then strike at its vital spot, and finally pull the rug out from under them!”
At this point, Chen Zhenming suddenly stood up, straightened his back, and his eyes shone with intense brilliance, like a peerless sword being drawn from its sheath, sharp and commanding.
“Phase one: go with the flow and lure the snake out. While they’re suppressing the stock price of the Pharmaceutical King Group, we’ll accumulate shares at low prices, gain more control, and even achieve absolute majority ownership!”
Chen Zhenming’s gaze was fierce with killing intent, as if he had transformed from a laid-back, lazy young man into a financial titan wielding immense power, sweeping across all directions:
“Phase two: strike at the vital spot for a kill. Release positive news to drive the Pharmaceutical King Group’s stock price up continuously. That way, the three families won’t be able to repay their margin financing and securities loans, and they’ll likely face a margin call!”
“Of course, if we have 50 billion yuan in liquid funds right now and only stop at this, that would be letting them off too easily. We need to go further—pull the rug out from under them.”
“Phase three: short sell and accumulate shares of listed companies controlled by the Nie family and others, achieving reverse control. We have more funds—that’s a natural advantage. We can short and suppress the stock prices of the three families. As their stock prices drop, the value of the shares they’ve pledged to financial institutions will be even lower, almost guaranteeing they’ll face a margin call. At that point, we can buy those shares back from the financial institutions, complete the mergers and acquisitions of the three listed companies, and then everything will be settled.”
“This… this operational plan is absolutely overbearing! No wonder he’s a financial tycoon back from Wall Street!”
Jiang Banxia’s face was full of admiration.
Chen Zhenming hadn’t just laid out a counter-strategy; he also backed it up with detailed actuarial calculations and analysis. It was as if Fang Zhanbo’s trading approach was basically transparent to him.
“However, Jiang Tian, Phase one won’t be a problem—it just takes money and my team!”
Chen Zhenming’s face now showed a hint of concern as he said calmly, “But Phase two—driving up the stock price of the Pharmaceutical King Group—requires real substance. Sure, we could force it up with cash, but that would make Phase three—suppressing and acquiring the three families’ listed companies—a bit tougher. I need positive news! And this news needs to deliver at least five consecutive daily trading halts for the Pharmaceutical King Group’s stock price!”
“There’s plenty of positive news, absolutely!”
Jiang Tian said calmly, “First, the old man has fully recovered from his illness. I just kept the news tightly under wraps. He’s returning to the Pharmaceutical King Group’s lab to lead product development. Is that enough?”
Chen Zhenming paused, then grinned and pointed at Jiang Tian: “Jiang Tian, you cunning devil. You saw this coming all along, didn’t you?”
“This guy… he’s practically a monster!”
Seeing Jiang Tian sit there with a calm, subtle smile, Jiang Banxia finally understood.
So the news of Grandpa’s recovery, kept under tight wraps by Jiang Tian, was being saved for this moment.
Chen Zhenming frowned thoughtfully for a moment: “Releasing this news could drive the Pharmaceutical King Group’s stock price up by one trading halt.”
“The Zhao family’s pharmaceutical business in Linzhou—the patent holder and manufacturer of Yangji Ointment—has cross-shareholdings with the Pharmaceutical King Group,” Jiang Tian said calmly.
“That could push it up by two trading halts!” Chen Zhenming blurted out.
Zhao’s pharmaceutical business reported a profit of 1 billion yuan in its first-half financial report this year.
As long as the cross-shareholding deal is fair, it would be a cash cow for the Pharmaceutical King Group—a massive positive development.
“Finally, Professor Huang Zhihui, director of the Qingtian Laboratory, has applied for a Nobel Prize and is a top contender to win!”
Jiang Tian sipped his tea comfortably and said calmly, “Plus, there are five new drug launches and about 20 billion yuan in orders from the Ministry of Health and the military.”
“Damn, that’s a killer move, Jiang Tian. That one piece of news alone could trigger ten trading halts!”
Chen Zhenming punched Jiang Tian playfully and said excitedly, “This time, we’re going to be raking in cash!”
…
The next day, news of Jiang Changgeng, the founder of the Pharmaceutical King Group and a grandmaster of southern Chinese medicine, being seriously ill was published across major media in China.
At the same time, the White Knight Company published a research report in Hong Kong’s Apple Daily, claiming that Jiang Changgeng’s severe illness would further weaken the already fragile R&D capabilities of the Pharmaceutical King Group. It also raised suspicions that the management team led by Jiang Qingfeng might be guilty of financial fraud and profit interception.
Immediately, the capital market erupted in uproar, with many financial media outlets giving it intense attention and coverage.
“You need to understand, Jiang Changgeng is the soul of the Pharmaceutical King Group and the main pillar of its research department. We can speculate that if Jiang Changgeng passes away, the research department will become even weaker. Remember, the group hasn’t filed any patents in three years, and its annual R&D spending as a share of disposable profits is below the industry average!”
On Zhonghai City Television’s “Financial Daily Talk” program, the renowned Professor Fang Zhanbo made such a judgment.
Also present were reporters from financial media outlets like “Jinling Metropolitan Daily,” “Sina Finance,” “New Finance,” and “Fortune Magazine.”
“Yes, this only adds insult to injury for the Pharmaceutical King Group. Moreover, the group’s management has seen frequent changes over time. The continuity and effectiveness of the company’s strategy are also facing severe tests.”
Xia Miao, appearing as a guest in a sharp suit, spoke eloquently and naturally, hitting the key issues directly.
“So, President Nie, what’s your take on the Pharmaceutical King Group’s current business strategy?”
The host asked with a smile.
“Honestly, I find the strategic direction of the Pharmaceutical King Group a bit confusing right now,” Xia Miao said with a shrug and a furrowed brow.
“I see that the group has now set up a real estate company and spent one billion yuan to purchase the Fulong Mountain land plot. This is a diversification move away from its core business. And diversification has a very high failure rate—there are almost no successful examples worldwide. I have a pessimistic and conservative outlook on the group’s future operating performance.”
“I share President Xia’s view,” Fang Zhanbo said, fully embodying the air of a great scholar as he pointed out directions. “I still want to use the media to advise the management of the Pharmaceutical King Group: focus on your core business, don’t blindly venture into unfamiliar or unskilled areas, or you’ll face total ruin.”
“However, I also know that China’s real estate industry is very profitable, so the group probably won’t listen to my advice. After all, I’m just an obscure little professor.”
His humorous remarks drew warm applause from the host and audience.
“But Ms. Zhang Wanqing seems quite capable. How could she make such a basic mistake?” the host asked with a smile.
A magazine reporter nearby chimed in with a laugh, “Why is that impossible? Money blinds people. It’s common for management to abandon their core business for short-term gains and lose sight of the bigger picture. In fact, since Zhang Wanqing took back control of the Pharmaceutical King Group, she’s made one blunder after another.”
“Did you know she has a son named Jiang Tian? He only graduated from a third-rate undergraduate program, yet he went to teach at Jinling Pharmaceutical University as a visiting professor. Isn’t that using shareholders’ money to gild her own child’s resume?”
“I also heard he’s in charge of setting up a lab. They spent a hundred million yuan on it and put someone so unlearned and incompetent in charge—isn’t that just throwing money away?”
“I’ve heard Jiang Tian is utterly unlearned and incompetent, but he’s great at chasing women. He’s even had gossip links with the big star Li Huiyan! He also loves underground street racing and once hit and injured someone in a busy city district…”
The magazine editor then went on to share some gossip about Jiang Tian. The group on the show joked, scolded, and sneered, livening up the live broadcast atmosphere considerably.
After this program aired, the stock price of the Pharmaceutical King Group plummeted that very afternoon, dropping another eight percentage points.
Fang Zhanbo is already famous and highly authoritative in the financial world—a major hero who once defeated Soros, making him one of the top authorities in finance. If even he says so, who wouldn’t believe it?
