Chapter 293: The Fund Redemption Frenzy

Words : 1903 Updated : Oct 3rd, 2025

"There’s still 87.7 billion left." S~eaʀᴄh the novёlF~ire.net website on Google to access chapters of novels early and in the highest quality. After some contemplation, Lu Liang picked five more stocks from the 115 constituent stocks of the new energy sector. As per convention, he first purchased 3-4% of the circulating shares from the primary market and then gradually acquired the remaining shares in the secondary market before finally completing the shareholding announcement. These five companies were merely the best of the worst, as the higher quality companies with good operating conditions had already been picked in the first batch. The current market was too small; Tianxing Fund’s two successive purchases of 17 stocks had assets that accounted for 7.29% of the sector’s market value. The new energy sector’s total market capitalization was only 1.92 trillion, and they held assets of about 140 billion. Half a year later, when the lock-up period ended, as long as the National Team didn’t interfere, essentially, they would have a say in this market. On March 12th, Tianxing Mixed Fund ended its one-month closed period. All information including the top ten heavyweight stocks, latest net value, and asset allocation details were disclosed. BYD firmly took the top spot, with Tianxing Mixed Fund holding a 7.42% equity stake valued at 28.223 billion yuan. Tianqi Lithium followed closely, holding a 6.82% equity stake valued at 4.122 billion yuan. There were also Jiangte Motor, Xiangdian Shares, and others, with shareholdings valued between 1-3 billion yuan. But these weren’t important because the news about the shareholding announcements had already caused a huge stir; even if the fund didn’t disclose it, people already knew which stocks they were. Net value was the number that investors were most concerned with because it allowed them to see their profits most directly. "1.27, why does it seem a bit low?" "Aren’t all the stocks, except for BYD, basically doubled in price?" "Where’s the money? Where did it all go?" During the fundraising period and the closed period, it totaled precisely two months. If you had subscribed for 100,000 yuan at the time, now you could earn 27,000 yuan by selling it; with one million, that’s 270,000 yuan. For the first time, investors tasted such a big sweet deal, earning 27 points in just two months, which in the stock market would be more than two limit-up halts. They just didn’t understand, even with the other stocks nearly doubling, why they only saw a 27% return. Where did the other at least 50% go? "Ah, greed is endless, it’s too exhausting to explain to you, go look at the fund’s asset allocation details." "What the heck? Tianxing Mixed Fund subscribed to 100 billion yuan in bonds for Su City’s Lou Shui New Energy Industrial Park?" "Lou Shui New Energy Industrial Park, what kind of pie-in-the-sky project is that?" "I just found out that Su City launched a 130 billion yuan bond issue, backed by 15,000 mu of land, with an annual interest rate of 8.2% for seven years, mainly for the construction and support of Lou Shui New Energy Industrial Park. The Su City Government invested 30 billion yuan, and Tianxing Fund invested 100 billion yuan." "What backwater place? Lou Shui is amazing; it’s located in the middle of Yangcheng Lake, which ’passes through’ billions of crabs every year." "Our Lou Shui needs to rise, no matter Mr. Jing or Mr. Hu, all step aside, from now on, call me Mr. Lou!" "Damn, Liangzi must have had his brain squeezed by a door, not buying stocks but bonds, and even 100 billion yuan?" "An annual interest rate of 8.2%? That’s not even enough to cover one limit-up halt, and you don’t even get the money until the third year!" "Even if we’re super optimistic about the new energy industry, you can’t use our money like this?" "I’m out of here, earning 27 points now is enough." "I redeemed it, made a tidy profit of 30 points, smooth as can be." As soon as Tianxing Fund’s asset allocation details were disclosed, it immediately sparked a redemption frenzy among the investors. Some financial experts said: "Lu Liang has become arrogant, even if he’s optimistic about the new energy industry, he shouldn’t do this, a 100 billion yuan bond issue is a mistake among mistakes." Others said: "It’s understandable, he wants to build the largest new energy industrial park in East China or even the whole country, but the current new energy market is too small, and the time is not ripe." "It’s a pity, Tianxing Fund had the potential to challenge Tianhong Fund for market dominance, but now that seems difficult." Condemnations poured in like a tide, incessant and overwhelming. Despite Tianxing Mixed Fund earning 27% profit, it was as if they had committed some outrageous offense. A perfect illustration of ingratitude. The investors weren’t just talking the talk; they also took concrete actions by applying en masse to redeem their funds. Planning to use this as a threat to force Lu Liang to capitulate. How they treated those small and medium-sized fund companies two months ago was now how they treated Tianxing Fund. "Feeling good, feeling good." "What goes around comes around, nobody’s spared by heaven." The fund managers who missed out on bonuses last year were gloating as if the feeling was akin to drinking a cold cola on a hot summer day, refreshing from head to toe. "Liangzi, Liangzi, who knew you’d have such a day." Old Luo, and Old Jia far in the United States, people who bore grudges against Lu Liang, were secretly delighted. After more than a year of success abroad, Lu Liang, who had forged an invincible aura, might face his first Waterloo back home. At the same time, the tense Deputy-General Manager Zhang Jing hurriedly rushed into Lu Liang’s office, forgetting to even knock on the door. Lu Liang, with a smile on his face, was sitting by the tea table with his legs crossed, brewing tea, and showed no signs of reproach, "Zhang Jing, have some tea first, take it easy." "Mr. Lu, many people are applying for fund redemptions." Zhang Jing swallowed hard, with beads of sweat forming on his forehead, the volume of requests for fund redemption was enormous. "Has it broken a hundred billion yet?" Lu Liang asked with an unfazed smile. He had anticipated this, or else he wouldn’t have set the empty position line so perilously close to 20%. 60 billion in funds was enough to handle this situation. The three institutions had invested a total of 161.5 billion as the fund’s permanent capital. As long as the annual return exceeded 12%, they could not request early redemption for any reason over the next three years. That was the stabilizing anchor. The actual externally subscribed capital was less than 140 billion, and with 60 billion reserved, that was more than enough to deal with the redemption of over 40% of retail investors. "Not yet, it’s currently 6.155 billion." Zhang Jing gradually regained his composure, Lu Liang’s equanimity was reassuring. "That little?" Lu Liang was surprised. He pondered and said, "Then let the ICBC know not to hold up the verifications; as soon as an application is approved, release the funds. Also, announce that anyone who redeems their entire position cannot subscribe again for half a year." Zhang Jing’s eyes widened, hesitatingly said, "Mr. Lu, maybe we should skip the announcement." It’s possible to quietly keep such a gray list and simply have their subscription applications fail next time. Lu Liang laid it out directly, intending to fully confront them—it seemed a bit too bold. "Just word it diplomatically, come up with a few reasons, like divergent investment views or such, you handle it." Lu Liang had no intention of backing down; his public fund was not like other public funds that took money directly from investors’ pockets. A hundred billion in bonds, with an annual return of 8.2%, was already not low, especially when a normal five-year national bond yield was only 4.39%. Furthermore, according to statistics, last year the national average annual return for public funds was only 6.25%. Complaining about an 8.2% annual return now was purely being dazed by the 27% yield. Lu Liang had this confidence, So it was take it or leave it—if they didn’t want in, it wasn’t his loss. Should it lead to a larger scale of fund redemptions, he could simply bring in a few more institutions. Recently his relationship with Su City was pretty good; an 8.2% annual return, the Su City Human Resources and Social Security Bureau was nearly salivating. "Okay, Mr. Lu." Zhang Jing forced a smile but dared not say more. Clearly, Boss Lu had brought the temperament he had managing private funds over to the public fund. To him, whether public or private, if he was in charge, he was the party on top. A little over an hour later, the redeemed funds massively hit accounts, leaving the fund investors dumbstruck. "What’s going on, 1.27 million arrived so quickly?" "My 67,500 also seems to have arrived, wasn’t there a three-day review period?" "Damn it, why can’t I subscribe again suddenly?" "Quick, check the Tianxing Fund’s announcement." A significant number of investors flocked to the Tianxing Fund’s official website, and then they saw a pop-up announcement: "We thank investors for their support... Due to incompatible investment philosophies, we express our deepest apologies... We hereby urge regulatory banks to expedite the verification process so that the redeemed capital and profits can be swiftly returned to the subscription accounts..." Though it was an apology, not once did it admit any mistake, attributing everything to a mismatch between the fund company and the investors’ philosophies. In the end, it was stated clearly, for the consideration of the investors’ funds, anyone who had redeemed their entire position was prohibited from re-entering for the next half year. "Damn, typical Liangzi, tough as nails!" "Tough, my ass. If he’s so brave, why doesn’t he turn away all those who kept a minimum position as well?" "He wouldn’t dare, because that wouldn’t be following the rules." "To be honest, it is quite arrogant, as if they’re the only public fund in the market." "Liangzi might be arrogant, but he has the grounds for it; the market is full of pits, and Tianxing is just a bit more reliable." "Tsk tsk, lucky I kept a two-hundred minimum position." "To be fair, an 8.2% annual yield really isn’t a small amount, don’t be greedy." The gray subscription font was like a bolt from the blue, leaving those who had redeemed their funds stunned. They had only intended to bluff, little did they know Lu Liang would stand so firm, not giving in an inch. As everyone knows, there are many pitfalls with funds—they don’t rise as fast as stocks during the bull market, and they fall harder than stocks in a bear market. Finally, such a fund appeared, managed by none other than Lu Liang, they were not ready to let the cooked duck fly away. Don’t make an enemy of money, they say. So, they started subscribing again using their family members’ identities, only to suddenly discover they were unable to.

Chapter 293: The Fund Redemption Frenzy

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