Chapter 363 Acquisition Completed
After Shen Boyu received a clear reply from Gu Junhao, the M&A work officially began. In the following week, the M&A progress was carried out in an orderly manner.
At the same time, the company's human resources department is also preparing a new batch of traders, suitable for public fund traders, to prepare for the completion of the merger and acquisition.
The first phase mainly did not immediately expand external recruitment, but instead adopted the method of internal competition within the company. This plan was made after Gu Junhao learned that some employees of the company were looking forward to transferring to the fund business department.
The news of the merger and acquisition had not yet spread within the company, and the internal competition was also carried out in the name of issuing a new fund, and there were quite a few people who signed up.
However, most of them do not meet the requirements. The requirements for public funds are stricter than those for private funds. At least they are not allowed to speculate in stocks privately.
No matter what others do in private, Gu Junhao still wants to strictly enforce this point to prevent insider trading.
As for the venue, Gu Junhao has already thought of it. It is the original trading room, which is still maintained at this time. It only needs simple renovation to continue to be used, so as to separate it from the private equity business.
That day, Gu Junhao called Liu Tingting to his office.
"Boss, what do you want to talk to me about?" Liu Tingting said casually after coming in, and then greeted Li Xinyu.
"How are stocks doing lately?" Gu Junhao asked casually.
This week, many merger and acquisition matters required personal attention from Gu Junhao, so he appeared in the company less frequently and paid less attention to stocks.
"It's OK. Junshi No. 2's holdings are OK, but the proprietary positions are not doing well recently. There are obvious signs of adjustment."
"Okay then, what do you think about the self-operated trading?"
"What can I think? We are all dealing with stocks. What do you want me to do, Boss?"
"You should have heard something about the company's recent actions. Do you have any ideas about work?"
"What do you mean? Are they issuing a new fund? The boss wants to transfer me to the new fund?" Liu Tingting was stunned for a moment, then said.
"To be precise, we are acquiring a public fund and are close to signing a contract. I would like to transfer you to the new fund and make you my assistant. Do you have any idea?"
The changes between private equity and public equity are relatively large. Liu Tingting is not as carefree as Xu Jianqing. Girls are more sensitive inside. Do major changes still require her consent?
"Ah? Publicly offered funds? I thought you were issuing a new fund. Boss, are you playing such a big game? What about Junshi No. 2 now?" Liu Tingting said in surprise.
What Liu Tingting said is that currently public fund managers cannot concurrently hold private fund positions. This is still not allowed at present. It will not be until 2020 that public management of private funds will officially begin to test operations.
Strictly speaking, Gu Junhao’s identity in Junshi No. 2 cannot be called a fund manager, but an investment manager.
In the industry, managers of public funds are generally called fund managers, and those of private funds are called investment managers, and they serve different customer groups.
"I will take care of this. I just want to ask if you have any ideas about transferring to the public fund to be my assistant."
"Of course that's no problem, thank you boss." Liu Tingting said happily after recovering. There is still a clear difference in the status of public and private funds. The boss is promoting her.
"That's good. You can start preparing later and be ready to work at the new fund at any time. But it's not that fast yet, so don't be too anxious."
"Haha, I know, but Boss, you said you could handle Junshi No. 2, but what about your personal account? Wouldn't it be a waste to increase your position?"
"Yeah, it's all in vain. Who knew Director Shen was so efficient?" Gu Junhao also sighed.
"Boss, do you want to clear out your inventory? I can do it for you, no need to trouble you." Liu Tingting continued.
"No, just transfer it to your proprietary account when the time comes, and buy out my shares based on the share price on the day of transfer."
It's his own company anyway, so it doesn't matter whether the holdings are in personal accounts or company accounts. When the formal decision to acquire the company was made, Gu Junhao knew that Longji Shares was destined to be separated from him.
From now on, I will no longer have a private account, and even Zhang Yiru and Zhang Mingde and his wife will be subject to a series of supervision.
In fact, in principle, there is no absolute restriction on securities investment for fund practitioners. According to the newly revised Fund Law in 2013, the restrictions on securities investment by fund practitioners were lifted for the first time.
Article 18 of the Fund Law has relevant provisions. If a fund manager has other practitioners, including himself, his spouse and interested parties engaged in securities investment, they must report it to the fund manager in advance.
Moreover, there must be no conflict of interest with the fund unit holders, but the process is too complicated and how to define it is also a problem, so Gu Junhao still does not want to get involved in this matter.
The best way is to transfer the holdings in your personal account to a proprietary account. You can still trade stocks, but the identity will be changed from that of an individual to that of a company.
As for the position of Junshi No. 2 Fund Manager, Gu Junhao has already discussed it with Wang Ruoyu. After the public fund formally acquires the fund, Gu Junhao will step down and Wang Ruoyu will serve as Junshi No. 2 Fund Manager.
As for investors, Gu Junhao has already communicated privately with some important investors. Resigning does not mean that he will ignore Junshi No. 2. He is still the founder and shareholder of Junshi Capital.
Most of the investors have been in the business world, so they naturally understand how to circumvent the rules. As long as Junshi No. 2 can maintain stable returns in the future, it doesn’t matter who is the fund manager.
What's more, Junshi No. 2 will open a redemption channel once every quarter in the future. Once you are not satisfied, you will have plenty of time to stop loss and redeem, and your interests will not be affected at all.
The new public fund will re-register a company, with Gu Junhao as the fund manager, and will be separated from the current entity in a legal sense.
Although doing so will still be criticized by some people, as long as the performance of the two funds can be steadily upward and maintain a certain degree of fairness and justice, there is naturally no need to be afraid.
The most important thing is to obtain the consent from the regulatory authorities, but Gu Junhao has already done it. Since the last proactive rescue of the market, Gu Junhao has established contact with the local regulatory authorities.
What's more, there are many fund managers who have transformed from public funds to private funds, but it is rare for fund managers to transform from private funds to public funds. Gu Junhao's behavior can be regarded as positive energy to a certain extent.
As long as the rules allow, Gu Junhao's behavior is tacitly approved, and even some regulations will give him the green light. This makes it easier to get things done because he has someone higher up.
Wang Ruoyu will serve as Junshi's No. 2 fund manager, and Liu Tingting will serve as his assistant. Xu Jianqing's job will also have some changes. After Longji shares are officially transferred to Junshi's proprietary trading account, Xu Jianqing will be fully responsible for the daily work of the proprietary trading account.
At the same time, Xu Jianqing no longer has to live a life of day and night reversal, and he no longer needs to trade personally. He only needs to issue a series of instructions to traders. However, his work is still harder than that of ordinary people, after all, he still has to pay attention to the overnight US stocks.
It is worth mentioning that since the last position building before the Spring Festival, plus a few trading days after the New Year, Nvidia’s position building work has been completely completed.
With US$160 million plus some account operation income, a total of 6.15 million shares were purchased. Combined with the original 1 million shares held, Junshi's proprietary trading account currently holds 7.15 million shares of Nvidia, and the holding transaction volume has risen to US$25.035.
After a week of trading, Nvidia's stock price has risen to US$31.5 today based on the sharp opening on February 18. Gu Junhao made considerable profits by buying the bottom at below 27 yuan in the early stage.
Although the stock price of Nvidia fell sharply during the Chinese New Year, it once fell below US$25. The intraday floating loss in the account at that time was very serious.
The rebound of the Shanghai and Shenzhen stock markets since the big positive line on February 16 lasted for six trading days. The Shanghai Composite Index rebounded from below 2700 points to a high of 2933.96 points, a rebound of nearly 9%.
However, with the index at 3,000 points, the Shanghai Composite Index is still under great pressure and has been unable to break through for three consecutive trading days.
On Thursday, February 25, the Shanghai and Shenzhen stock markets once again experienced a sharp decline since January 26. The Shanghai Composite Index fell 6.41% throughout the day and returned to around 2,700 points, closing at 2,742.25 points.
The Venture Capital Index fell 166.60 points, or 7.56%, to close at 2037.14 points. On the trading disk, all sectors of the two cities were once again in the red, with more than 1,200 stocks hitting the daily limit.
Once again, there were only 10 stocks that hit the daily limit, more than half of which were newly listed stocks that had not yet been delisted. In one day, they swallowed up the market's rebound for seven consecutive trading days, and also dealt a fatal blow to the Small and Medium-Cap Mixed Growth Select Fund that was in the process of acquisition.
The continuous rebound has given the fund manager who is still managing this fund a glimmer of hope. Currently, he is the biggest obstacle to the acquisition. For the sake of his career, who wouldn't want to make one last attempt?
Although the actual controller wanted to sell, who wouldn't want to hold on or sell at a better price? The rebound in recent days, coupled with the constant encouragement of the fund manager, made him have a little fantasy.
If the negotiations are dragged on here and the overall scale rebounds again there, there may be no need to sell.
Today's big drop swallowed up almost all the rebound trends in February. The intermittent redemptions since the rebound and today's plunge have caused the overall size of small and medium-sized cap selections to drop to less than 70 million yuan for the first time.
At this point, the last obstacle to Junshi Capital's acquisition was completely removed, and the progress of the previously stagnant negotiations began to accelerate. If they don't sell it, they will lose it.
