Chapter 999 - echnology firms
writer:穷四      update:2022-08-22 14:03
  The impact of the Asian Financial Crisis had weakened, as all the countries were working together towards recovery, and had the support of international organizations.

  But those countries’ incomes had plummet compared to previous years. Countries, like Thailand and Indonesia, were seriously impacted by the crisis, had their income dropped by over 40%!

  This year is also not a good year for those countries. China is one of the few economies that were not seriously affected by the crisis.

  Hong Kong was also affected by the crisis. Still, the Fu Family, Li Family, and the other tycoon families’ wealth had increased. Overall, Hong Kong’s economy is still stable.

  In this life, Hong Kong’s property market and stock market did not crash. Hong Kong is still the financial hub of Asia and had overtaken Tokyo.

  The impact of Russia’s extreme measures had also weakened. European stock markets also start to improve, and Feng Yu starts to settle his future contracts to withdraw his capital.

  ……


  “Feng Yu, are you not going to invest in Hong Kong’s stock market? Hong Kong stock index will recover to over 13,000 points, and we had looked into a few companies’ stocks. These stocks should double in value by next year!” Professor Liang persuaded.

  “Professor Liang, I trust your analysis, but I still think the US stock market will do better. Also, most of my money was invested in physical businesses, and I am planning to acquire some companies.”


  “I also think the US market will rise, but the US is focusing too much on internet technologies, and an economic bubble is forming. Once this bubble burst, the market will crash!”


  Professor Liang is indeed an extraordinary guy. He can already predict the dot.com bubble now. Feng Yu knows better than Professor Liang about the US market, and he knows the bubble will not burst these two years. This period is enough for him to make lots of money.

  “Professor Liang, I understand what you are talking about, but trust me. I can offload my stocks in time, and I will be selling away my Microsoft shares slowly next year. The internet technology has high potential, but this is not the right time to pull in the net.”


  Ten years from now, technological firms will be taking over the world, and almost half of the Fortune 500 companies will be technology-related firms. At that time, the internet will become part of everyone’s life.

  Now? PC is not widespread yet, let alone the internet. Many of the tech firms out there are only painting a beautiful picture to lure investors. When the investors realized what is happening, these tech firms will be bankrupted!

  “I know you will have no problems.” Professor Liang patted Feng Yu’s shoulder. This young man has more drive than him.

  “Brother Feng, I heard you had set up a new investment firm, specializing in venture capital investments, in China.” Fu Guangzheng asked.

  “That’s right. I want to invest in some potential companies and hope they can earn money for me in the future.” Feng Yu smiled.

  It’s too tiring to work. If Feng Yu invested in the right company, his returns would be more than a hundred times in ten years! When that happens, the money will be going into his bank account even when he is not doing anything.

  “How come you are interested in all sorts of industries? Don’t you have any industry that you are focusing on?” Feng Yu’s new investment company is called Tai Hua Consultancy. If you think you have a great proposal, you can ask for an investment from this company.

  Even if it is a VC, there must be a focus industry. You can’t be investing in companies in all industries because you think they have potential. This is impossible!

  History had proven that all industries have their up and downtimes. All industries can’t be doing well at the same time.

  “Yes. Tech firms.”


  Fu Guangzheng: “……”


  You had just agreed with Professor Liang that an economic bubble is forming for tech stocks, and it will burst in two years.

  Since you know a bubble is forming, why are you still investing in it? Two years is not enough for the companies you invested in getting listed. How are you going to recover your capital, let alone getting returns?

  “You think tech firms are not worth investing? Do you know what is going on with Pacific Century Group recently?” Feng Yu asked.

  “Li Zekai’s Pacific Century Group? What happened?” Fu Guangzheng had invested in this company too.

  Feng Yu shook his head. You had invested in this company, and you are not concerned with it?!

  “Pacific Century Group had just acquired a plot of land to build a Cyberport. He used this project to get a full loan from the bank without collateral.”


  “That is because his father is Superman Li. If not, how can he get such a big loan?” Fu Guangzheng replied. Li Zekai is depending on his family’s status and cannot be compared to him.

  “I don’t deny that he can get this loan because of Superman Li. But why did Superman Li decided to help him get this loan? This means that Superman Li thinks this project has potential and will be a win-win situation with the Hong Kong Government!”


  Fu Guangzheng kept quiet. It must be Superman Li who had helped Li Zekai get this loan. Those banks know that Superman Li will not see his son bankrupt. Even if Li Zekai cannot repay the loan, Superman Li will step in to help him.

  But why did Superman Li choose to help Li Zekai? The only reason is that Superman Li thinks that this project has high potential. Superman Li had never made a failed investment and especially high investment like this.

  But this is also a good thing. Fu Guangzheng and Feng Yu had some shares in Pacific Century Group. If Pacific Century Group makes money, they will also get a share.

  “That means you think tech firms will be the future?”


  “I always believe that technologies will bring in high profits. China’s internet technological development is lagging and had just started recently. When it reaches to the next growth stage, the returns will be high. I estimate the returns to be at least 20 times my initial investment. As long as one out of twenty companies I invested can reach the next stage, I will not suffer any losses. There will surely be some companies that do not reach my expectations, but it should not be a lot.”


  This is the charm of VC. 5% success is enough to recover the capital and is different from trading. Feng Yu does not need to monitor it closely.

  Fu Guangzheng nodded and decided to visit Li Zekai tomorrow. All his money had been invested, but his father still has money to invest.

  “Brother Guangzheng, Brother Fu, what are you all talking about? Are you all talking about Soros’ bad luck?” Fu Guangwei came over excitedly.