My fintech empire.

Chapter 1241 [ trillion yuan storage and computing infrastructure project approved]

In the trading room on the second floor of Jingxinju Villa.

Shortly after the market closed, Fang Hong was looking at the trend of the New Securities 50 Index displayed on one of the screens. He picked up the phone and called his beautiful assistant in the company.

As soon as the call was connected, he instructed: "Give a heads-up to the first phase fund manager at the Wealth Fund and prepare to withdraw the 2 trillion yuan principal of the first phase fund from the secondary market. Just keep the profits and continue to hold them."

Tian Jiayi responded from the other end of the phone: "Okay, I understand."

Fang Hong added: "First, withdraw the portion of the shareholding that does not exceed 5% and does not require a reduction announcement."

Tian Jiayi replied: "Yeah, okay."

……

The person in charge of the first phase of the capital pool at the Wealth Fund received the news quickly, and the next day he began to execute the instructions of the ultimate big boss to sell off the stocks held by the first phase of the capital pool.

On the same day, the SGX 50 Index also adjusted downward by -1.13 percentage points. The main holdings of the first phase of the funding pool were in the SGX. However, there were also some stocks on the main boards of the two stock exchanges. Those that met the requirement of holding no more than 5% of the total share capital and did not need to issue a reduction announcement were all selling off their holdings.

The New Securities 50 Index is indeed very strong. After adjusting for five trading days, it broke through this small shock platform again on Friday, March 3, and closed up +24% on the day, setting a new high and pushing the index point to 1.52 points.

This positive line in the index has lifted the New Securities 50 Index to a cumulative increase of +1933% since it started to rise from 20.3 points. The annual line has also achieved a cumulative increase of +17.4%. During the same period, the annual line of the main board Shanghai Composite Index only increased by +5.33%. The strong bulls of the New Securities 50 Index can be said to be crushing.

However, after the entire medium-sized positive line came out, there were four consecutive negative adjustments in the next four trading days, and the price dropped to 4 points. Due to the huge size of the wealth fund, it was still a bit difficult for the market to connect.

Fang Hong is also observing the carrying capacity of the New Securities 50 Index. After all, those being sold off now are those in which the shareholding ratio does not exceed 5%. Greater selling pressure is yet to come. The scale of 45 trillion yuan of share reduction is almost enough to cash out % of the first phase of the capital pool, and the absolute number is also quite terrifying.

The real big selling pressure later will be the reduction of holdings in several super-large weighted stocks in the New Securities 50 Index, including Xingyu Technology, Jiuzhou Blue Arrow, Matrix Quantum, Kunpeng Technology and other targets. The first phase of the wealth fund’s funds already hold more than 5% of these stocks, and a reduction announcement will be issued at that time.

What is certain is that the market will definitely cause a great panic at that time. After all, if two trillion yuan of funds were cashed out in the neighboring two cities, the index might have collapsed directly.

There will definitely be adjustments. Fang Hong initially estimated that it would be adjusted downward by about 10 to 15 percentage points. If it falls further, he will also take action.

There is no need to worry too much. If the market falls too much, the Stabilization Fund will step in to support the market, and many partner institutions including Pengrui Capital, Zhongtai Capital, etc. will also let them step in to support the market.

On the next day, Friday, March 3, the Xinzheng 31 Index stopped its four-day losing streak and rebounded 50 percentage points that day to close at 4 points, showing signs of stabilization.

……

That afternoon, we stayed in the villa quietly.

"Luo Qing'an has sent in the title approval document. The proposed 7 trillion yuan investment to build an integrated super storage and computing center has been approved by the higher-ups." Tian Jiayi came to Fang Hong with a document and handed it to him.

Fang Hong personally wrote a report to his superiors last month on this matter, requesting a massive investment of 7 trillion yuan to build an integrated super storage and computing center. This is no small matter and the impact is extremely huge. No matter how much money one has, it cannot be done without the approval of the state.

In a word, this matter is of great importance, and the relevant local departments cannot make the decision. The state has to make the final decision.

During these days, Fang Hong has been waiting for news from above.

He took the document and opened it to read. Tian Jiayi beside him said, "Your plan can be implemented with the approval of the state, but the document also clearly states that the state will not provide subsidies. If it is too little, the figure of 7 trillion can be ignored, and if it is too much, the state does not have that much money."

Fang Hong browsed the documents and smiled, "As long as it can be approved at the speed of light, we don't lack money, and we don't need subsidies from the state. Moreover, from the perspective of the equity structure, it is equivalent to the state paying for it. After all, Qunxing also has shares in the five major Guojia teams, and the state has invested part of the 7 trillion yuan, so it is reasonable not to provide additional financial subsidies."

At this time, Tian Jiayi added: "Although there is no mention of subsidies, strong support and many conveniences have been given in terms of policy, requiring local governments to actively cooperate and provide necessary support. In other words, with this imperial sword in hand, there will be no local resistance wherever you want to build a storage and computing center."

At this moment, Fang Hong also saw this paragraph in the document, and could not help but nod his head repeatedly and said: "This is much more effective than financial subsidies, and it is indeed comparable to the imperial sword."

It is not surprising that the country quickly approved the plan to invest 70 trillion yuan to build a storage and computing center. First of all, the fact that the money does not have to be paid by the state means that the approval rate is increased by more than %. The boosting and driving effect of these trillion yuan on the economy cannot be ignored.

This can also be considered an infrastructure project. When the economy is not doing well, people tend to rely on infrastructure to boost it. Fang Hong wants to invest 7 trillion yuan to build an integrated super storage and computing center, which will inevitably require large-scale infrastructure construction, and it must be a technology-based infrastructure industry.

The key is that the country does not have to pay for this money, so there is no reason not to approve it. This year's economic growth target is basically stable, especially since Fang Hong also said in the report that the plan is planned to be implemented quickly. This year's GDP growth rate can be as high as 8%, which means that the minimum growth rate can be 9%, and the optimistic estimate is %.

You should know that last year the national GDP barely held on to 7%, with a total amount of 83.3 trillion yuan.

If the Daxing infrastructure project is implemented, it will contribute at least 1% of the net increase in GDP to the country this year, without the country having to spend a penny. The growth target of 2017% and 90% means that the total GDP in is expected to exceed trillion yuan. Such a brilliant result is too good to be true.

After a while, Tian Jiayi said thoughtfully: "I don't think there should be any resistance from the local government. We have invested such a huge amount of funds to build a storage and computing center. The boosting effect on the local economy is self-evident, and the employment it has driven is also self-evident. How could the local government make things difficult for us and bring us resistance?"

Fang Hong browsed through the contents of the document without looking up and said, "If you think so, then you are still thinking too simply. This is a cake worth 7 trillion yuan. All regions across the country want to have a piece of it, which means there will be a complex game of interests."

After thinking for a while, Fang Hong looked at the beautiful assistant and added, "Let me give you an analogy. For example, now we have to make a choice between bidding in places A and B. B knows that it cannot compete, so in order to get the bid, it secretly does something bad to A, causing A to lose the bid. This is also a loss for us, because bidding in place A could have been better. At this time, having such a sword of imperial power will make a difference. Do you understand?"

Hearing this, Tian Jiayi nodded as if he suddenly understood.

Finally, Fang Hong closed the document, lowered his head to think for a while, then turned to look at the beautiful assistant and instructed: "Greet Chen Yu, Qin Feng and other relevant personnel, tell them about this, let them know so that they can quickly roll out the follow-up work."

Tian Jiayi nodded: "Okay."

……

(End of this chapter)