Golden Spoon Investment Portfolio - Chapter 511

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This chapter was translated by Lunox Novels. To support us and help keep this series going, visit our website: LunoxScans.com
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511. I’ll make sure to reap the benefits from this.

Fuzhou City, the capital of Fujian Province.
Fuzhou was an ancient city with the fortress walls built by Emperor Liu Bang of the Han Dynasty and numerous historical relics scattered throughout, serving as a gateway for those traveling from the continent to the sea or entering China from abroad.
In fact, during the Ming Dynasty, the great treasure fleet of the eunuch Zheng He, who sailed across the Indian Ocean to Africa under the orders of the Yongle Emperor, departed from this very port.
In modern times, with Taiwan across the sea, it had become an economically and militarily crucial region.
As China’s economy surged forward, the entire city that had been thriving—changing its appearance overnight as people said—had suddenly frozen as if an icy winter had descended, holding its breath in tense silence.
A massive corruption scandal had erupted when Zhang Daming, chairman of Haian Group, one of the five largest enterprises in Fujian Province, was caught smuggling automobiles, cigarettes, petroleum, and electronics for eight years straight, evading taxes on a staggering two billion dollars.
Hundreds of high-ranking officials from the party, government, and military—including customs, public security, and the navy—were exposed for accepting bribes and entertainment while turning a blind eye to the smuggling, sending the entire Fujian Province into complete upheaval.
Enraged by the massive corruption scandal, Chairman Zhang Zedong personally ordered a thorough investigation, and a special investigative team from the Central Party Discipline Inspection Commission descended upon the region, conducting intense investigations regardless of rank or position.
With over a thousand officials from the party, local government, and military facing investigation, the entire city was gripped by an atmosphere of thin ice.
Liu Shangfu, who had recently been appointed as Acting Governor of Fujian Province, could not escape the brutal investigation of the Central Party Discipline Inspection Commission’s special team.
Inside a narrow interrogation room without a single window.
Liu Shangfu sat alone on a worn folding chair, his face haggard.
Though he tried to straighten his back, the exhaustion pressing down on his entire body dragged him downward like waterlogged cotton.
Confined for over a week in the narrow interrogation room with drab walls closing in from all sides, his mind and body deteriorated day by day under the relentless questioning of investigators asking repeatedly if he had any connection to Chairman Zhang Daming, who had caused the corruption scandal.
The white dress shirt he had always kept crisply pressed was now stained and wrinkled, and his neatly combed hair hung limp and disheveled.
Just days ago, he had been riding high—appointed as Acting Governor and Deputy Governor of Fujian Province when his predecessor transferred to become Secretary of Chongqing, hailed as the youngest high-ranking official at the provincial governor level—a stark contrast to his current state.
The investigators had not subjected him to physical pain or sleep deprivation.
However, the enormous psychological pressure came from the investigators taking turns, relentlessly and persistently probing with questions like “Is this true?” and “Are you absolutely certain you never provided any convenience to Chairman Zhang Daming?” searching for even the smallest opening to exploit.
One wrong word here could cause him to lose everything he had built and plummet into the abyss.
Because of this, answering the investigators’ questions with every nerve on edge felt like endless torture.
Yet despite his exhausted face, Liu Shangfu’s eyes still burned with life.

“…If I had known nothing, I wouldn’t have been able to endure this.”

Liu Shangfu leaned back against the chair and murmured softly to himself.
He shuddered to think what would have happened if he hadn’t heeded Seok-won’s tip when he visited Korea a few months ago and hadn’t prepared his surroundings in advance.

“I owe Chairman Park a tremendous debt.”

Though they had a friendly relationship, Liu Shangfu had maintained some caution; but through this ordeal, he came to completely trust Seok-won, viewing him not as a mere business connection but as a xiongdi—a brother in all but blood.
As he sat alone in the interrogation room, the iron door suddenly opened and an investigator with an expressionless face entered.

“Have you finished writing your statement?”
“Yes, I have.”

The investigator who had come forward took a seat and picked up the statement lying on the desk.
Over the past week, I had repeated the same content dozens of times, and I was now utterly sick of it.
The investigator, having skimmed through the three pages of A4 paper densely filled with writing, soon lifted his head to look at Liu Shangfu and spoke in a low, measured voice.

“Liu Shuqing, the commander of the East Sea Fleet, was found to have accepted bribes and entertainment in exchange for supporting Chairman Zhang Daming, and has been removed from all positions.”
“…!”

Commander Liu Shuqing was a capable officer of the East Sea Fleet, whose operational area encompassed the East China Sea region.
Like Liu Shangfu, he was from the so-called Princelings—the offspring and close relatives of revolutionary elders of the Chinese Communist Party—and was a core member of the power structure with considerable backing not only in the People’s Liberation Army but also in the central party apparatus in Beijing.
Upon hearing that such a commander as Liu Shuqing had been stripped of his position, Liu Shangfu’s face involuntarily hardened.
The investigator, leaning back in his chair, gazed at Liu Shangfu intently before speaking slowly.

“When you served as deputy mayor of Xiamen City, you granted preferential treatment to local construction companies in the process of expanding the special economic zone and pocketed 500,000 yuan.”

His time as deputy mayor of Xiamen City was more than a decade ago.
Liu Shangfu, who had never dreamed they would dig that far back, felt his heart drop.

“No matter how hard you try to hide things, you cannot completely deceive our eyes.”

At the investigator’s dry tone, Liu Shangfu held his breath and swallowed hard.
The investigator tossed the statement onto the desk and spoke.

“Using your position to satisfy personal greed while you should have been serving the people is an unforgivable act.”

Just as Liu Shangfu thought it was over, he heard words from the investigator’s mouth that made his eyes widen.

“However, compared to all the corruption and misconduct committed by other suspects of corruption, including Commander Liu Shuqing mentioned earlier, your case is relatively minor, and above all, considering the contributions you have made thus far, we have decided to show leniency this time—be grateful to the Party.”
“…!”
“If you commit corrupt acts again, then you will face severe punishment with your previous crimes added on top. Always remember this.”
“So I’m being released?”

Liu Shangfu asked, pushing forward his sweat-drenched face, and the investigator nodded.

“Consider yourself fortunate.”

The investigator spoke as if spitting out the words.
Liu Shangfu, who had gone to the brink of hell and returned to life, finally felt the tension drain from his entire body and let his shoulders sag.

* * *

[Zhang Daming Scandal Implicates Over 300 Senior Officials in Fujian Province, Xiamen City, and Fuzhou City; 14 Sentenced to Death]

Seok-won murmured softly to himself as he gazed at the headline sprawled across the front page of the Hong Kong newspaper.

“So it all wrapped up this way after all.”

Over the past month, the sweeping investigation had left Fujian Province’s military, party, and government apparatus in complete disarray.
Given that Chairman Zhang Daming’s omnidirectional lobbying efforts spanning over a decade had implicated virtually everyone from top to bottom, it was hardly surprising.

“Initially, they probably intended to completely root out the corrupt military officers, party members, and officials, but as the investigation deepened, the connections multiplied like sweet potato vines, spiraling beyond their control.”

Had they simply ferreted out corrupt officials and punished them severely, the Chinese people would have erupted in jubilation, directing their cheers toward the Communist Party leadership in Beijing.

“But when the corruption isn’t limited to a handful of high-ranking officials but encompasses the entire party, government, and military apparatus of Fujian Province, the narrative changes entirely.”

The fact that every single senior official wielding power in Fujian Province was implicated in corruption meant that criticism could easily be redirected toward the central government and the Communist Party leadership itself.

“The Party leadership in Beijing understands all too well that a single spark of public sentiment can transform into a raging wildfire in an instant.”

Realizing the gravity of the situation too late, they had hastily wrapped up the case.
Yet even the facts already exposed made it impossible to escape the Chinese people’s anger and condemnation toward the Communist Party and the ruling elite.

“There’s no better way to conceal the true face of a corrupt Communist Party and redirect the people’s attention elsewhere than by creating a hero.”

And the chosen figure was none other than Liu Shangfu.
With most senior officials in Fujian Province implicated in the corruption scandal, it was abundantly clear that Liu Shangfu, standing alone in his unblemished integrity, would receive an outpouring of praise from the Chinese people.
As the son of a revolutionary elder with the pedigree to match, and having served as Party Secretary of Ningde with a track record of anti-corruption campaigns, he was the perfect candidate to elevate as a hero.
True to form, the article included passages noting that while numerous senior officials in Fujian Province were implicated in the corruption scandal, Liu Shangfu alone had been revealed to be an incorruptible administrator.

“Liu Shangfu has always maintained strict discipline and restraint in his personal conduct, allowing him to remain unmoved by all manner of temptations…”

Seeing not only Hong Kong newspapers but also major mainland Chinese media outlets like China Central Television and People’s Daily running extensive coverage made it abundantly clear that the Communist Party leadership had deliberately decided to promote Liu Shangfu.

“With this, Liu Shangfu has transformed from near obscurity into a nationwide celebrity.”

It was a perfect example of turning disaster into fortune.
Contemplating Liu Shangfu’s future—how this incident would grant him tremendous renown and, years hence, make him master of Zhongnanhai, elevating him to the pinnacle of Chinese power—Seok-won folded the newspaper in his hands.
Then, as he settled into the plush sofa in the living room and brought an on-the-rocks glass of whiskey to his lips, his mobile phone vibrated.
Seok-won picked up the phone, checked the number displayed on the screen, and answered immediately.

[Understood, boss.]

At the sound of Landon Shore’s voice, Seok-won picked up his glass of whisky with one hand and rose to his feet, asking a question.

“How are things progressing with what I instructed?”
[Just as you ordered, we’ve begun establishing short positions in Bank One.]

Holding the phone to his ear, I stood before the floor-to-ceiling windows of the living room, a faint smile playing at the corners of my lips.

“Accumulate as much short position volume as possible before the August earnings announcement.”

Bank One was a megabank formed through the merger of First Chicago NBD Bank and Banc One, which was based in Ohio.
With total assets of 260 billion dollars, it had secured a position among America’s top five banks, following Citigroup, Bank of America, Chase, and JP Morgan.

[As you anticipated, there could be performance declines immediately following the merger, but given Bank One’s massive market capitalization of 29 billion dollars, I honestly question whether the stock price decline will be as dramatic as expected.]

Seok-won responded with a leisurely expression.

“As I mentioned before, the conservative First Chicago and Bank One—which experienced rapid growth through M&A—possess organizational cultures as incompatible as oil and water. Naturally, friction is inevitable during the integration process.”
[But won’t the merger generate significant positive effects through cost savings and asset increases?]
“The market’s greatest expectation from this merger is increased revenue from the credit card division. You’re aware of that, aren’t you?”
[Of course.]
“What happens if competition in the credit card sector intensifies and cardholders defect en masse?”
[The stock would plummet from disappointment. Surely you’re not saying Bank One’s card division revenue is actually deteriorating?]

Seok-won took a sip of whisky while holding the phone and continued.

“That’s exactly what’s happening. In the second quarter, revenues from consumer finance and credit cards declined by over 500 million dollars.”
[Is that really true!]

Landon Shore’s voice carried genuine shock.

“The information came through reliable channels, so you can trust it.”
[Then if the earnings report comes out as you say, the stock price will drop significantly.]
“Exactly. So go ahead and short with confidence.”

I spoke with a slight smile, and Landon Shore responded with his concerns completely dispelled.

[Understood.]

After exchanging a few more words, Seok-won ended the call and gazed out through the floor-to-ceiling windows at the glittering night cityscape, murmuring to himself.

“I’ll milk this for all it’s worth before Quentin Lucas takes the stage.”

Contrary to rosy expectations, it would be Quentin Lucas—the man destined to become Wall Street’s emperor in years to come—who would resurrect Bank One from the severe post-merger complications that would send it reeling.

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This chapter was translated by Lunox Novels. To support us and help keep this series going, visit our website: LunoxScans.com
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