Chapter 44: The Guarantee

In the face of Cao Haiyang and the other company employees' admiring words, Zhou Ming simply smiled slightly without commenting.

Information in this era was not as advanced as in later years. Therefore, Cao Haiyang and the others were unaware that the concept of a capital-protected fund had already been proposed and applied in the United States four years earlier. This idea was still in the experimental stage and not widely promoted. Moreover, the combination formula for such a fund was considered confidential, and thus not known in Hong Kong. Given the current economic downturn in Hong Kong, Zhou Ming's sudden introduction of a fund that promised no losses naturally made him seem like a revered figure to Cao Haiyang and the other employees.

Cao Haiyang, unaware of this background, saw Zhou Ming's calm demeanor, which only elevated his respect for Zhou Ming. Cao Haiyang said, "As Sun Tzu said, 'In times of prosperity, do not be elated; in times of adversity, do not be disheartened; in times of stability, do not be complacent; in times of crisis, do not be fearful; those who maintain a calm demeanor despite internal turmoil are the ones worthy of being generals.' Today, meeting Mr. Zhou is like encountering a great leader destined to lead the era!"

"Indeed, not everyone can make two million during a stock market crash!" Lin Muqing said proudly.

Zhou Ming waved his hand, "Alright, Manager Cao, you are the most familiar with the situation in the fund industry. I need to ask you: in the current situation, if we launch such a combination investment capital-protected fund, do we need to disclose the investment strategy?"

Cao Haiyang thought for a moment, "According to current regulations, we should disclose this information. However, since this is a new combination investment product, we can keep it confidential as a business secret."

Zhou Ming nodded, "That's fine. Do you think there will be any issues with business promotion? Will our clients believe and accept such an investment plan?"

This question put Cao Haiyang in a difficult position. He became disheartened as he recalled that Zhou Ming's innovative idea was still unfamiliar in Hong Kong. Cao Haiyang carefully considered and replied, "Mr. Zhou, it's hard to predict. After all, your idea is unprecedented in Hong Kong. I fear that clients may not accept it."

"A good idea is useless if it doesn't gain client and market recognition," Zhou Ming said. "Manager Cao, please take your team to approach clients first. If their reaction is cold, we will set up a booth outside the Hong Kong Stock Exchange for publicity. I believe in this economic downturn, there will be people willing to give it a try."

Zhou Ming paused and added, "However, for safety's sake, it's best if we can get the Hong Kong Stock Exchange to provide a guarantee. Can you contact them?"

Cao Haiyang responded, "That's not a problem. I am familiar with Manager Deng Weidong from the Stock Exchange's market department. I should be able to get him to help us."

"Good. Manager Cao, contact Manager Deng immediately. I need to see him as soon as possible," Zhou Ming ordered.

The meeting was adjourned, and Zhou Ming did not engage in further discussion, allowing everyone to get back to work. Wang Yunlong and Sun Wei formally began their work at the fund company.

On their way back to the hotel, Lin Muqing asked curiously, "Zhou Ming, are you asking Manager Cao to contact Manager Deng because you lack confidence in the capital-protected fund?"

"Somewhat," Zhou Ming admitted honestly. "After all, the capital-protected fund is still a completely new concept in Hong Kong. The current economic downturn has made many people wary of financial markets. I'm concerned that they might not believe in this idea. Hence, having a reputable institution provide a guarantee would be beneficial."

Upon returning to the hotel and having lunch, Zhou Ming received a call from the fund company. It was Wang Yunlong updating him on the situation with the business department.

After hanging up, Lin Muqing eagerly asked, "How is the situation?"

Zhou Ming shook his head, "As I feared, there has been no progress. Our clients don't believe that our fund can protect their capital."

"How can they be like this?" Lin Muqing said anxiously. "Didn't Manager Cao say he could contact Manager Deng from the Stock Exchange? What's the update on that?"

"He said that because of the stock market crash, Manager Deng is overwhelmed and doesn't have time to meet me. If I really want to see him, he has ten minutes before his meeting with the Hong Kong government tomorrow morning," Zhou Ming replied.

Lin Muqing was not pleased with this response, "This Cao Haiyang is a real disappointment! He can't get anything done!"

"It's not entirely his fault; the situation in Hong Kong is exceptional," Zhou Ming said. "It seems I'll have to go to the Hong Kong government tomorrow to meet Manager Deng and finalize this matter within those ten minutes."

Lin Muqing opened her mouth as if to say something but eventually refrained. Instead, she encouraged Zhou Ming, "I believe you'll succeed!"

---

The next morning, Zhou Ming and Cao Haiyang arrived early at the Hong Kong government building. Around 9:15 AM, many cars started arriving, and numerous government officials entered the building.

Cao Haiyang craned his neck and soon spotted his target, pointing him out to Zhou Ming, "That's Manager Deng."

Zhou Ming looked over and saw a tall, thin man with glasses. Zhou Ming and Cao Haiyang approached him. Cao Haiyang said to Deng Weidong, "Manager Deng, hello. I'm Cao Haiyang from Jinming Fund. I spoke with you on the phone yesterday. This is Zhou Ming, the owner of our fund company. He needs your assistance, and you mentioned you'd have time for us today."

"I remember the former Wanhe Fund," Deng Weidong looked at Zhou Ming and Cao Haiyang with an air of superiority. He glanced at his watch and then said, "You have five minutes. Make it quick."

Zhou Ming raised his eyebrows. Although the time was cut in half, he knew this was not the moment to argue about it. He decided to get straight to the point.

"Manager Deng, hello. I'm Zhou Ming. It's a pleasure to meet you. I'm here today because our fund company has launched a new type of fund. This fund uses a combination investment strategy to effectively avoid most market risks, achieving a goal of capital preservation. We call it a capital-protected fund. We plan to launch this fund but are concerned about the current market instability. Therefore, we hope the Hong Kong Stock Exchange can provide a guarantee for us," Zhou Ming explained.

"A capital-protected fund? Avoiding most market risks?" Deng Weidong looked at Zhou Ming with curiosity. "Mr. Zhou, are you joking? Such a fund can't possibly exist."

"Manager Deng, this is real. Mr. Zhou has indeed come up with this fund concept," Cao Haiyang interjected.

"That's impossible. How could such a scheme exist?" Deng Weidong shook his head. Cao Haiyang was about to explain further when Deng Weidong raised a finger and said in a warning tone, "How you deceive your clients is your business, but don't involve us. Our reputation is very valuable!"

"Your time is up. I need to go to my meeting," Deng Weidong said and turned to leave.

Watching Deng Weidong walk away, Cao Haiyang felt a wave of despair. He turned to Zhou Ming, "I'm sorry, Mr. Zhou. I couldn't get this done for you."

Zhou Ming, however, smiled and said, "Don't be so quick to judge. He hasn't left yet, has he?"

Without waiting for Cao Haiyang's reaction, Zhou Ming hurried after Deng Weidong and said, "Manager Deng, I understand that you may not believe in our plan, but I assure you that our capital-protected fund is completely reliable."

"No problems? Mr. Zhou, there are no guarantees in this world. Even before Black Monday's global stock market crash, the US stock market seemed fine, but it collapsed suddenly," Deng Weidong said.

"Manager Deng, when I say 'no problems,' I mean I can deposit an equivalent amount of money as a guarantee with the Hong Kong Stock Exchange. If our capital-protected fund incurs any losses, the exchange can use this deposit to cover the shortfall. What do you think?" Zhou Ming proposed.

Hearing this, Deng Weidong stopped in his tracks and turned to Zhou Ming, "It seems you have a lot of money!"

"No, it's because my fund will not incur losses!" Zhou Ming replied firmly.

"Ah, I see," Deng Weidong smiled. "If you can really provide this guarantee, I can represent the Stock Exchange to endorse your fund."

Cao Haiyang, who had approached and heard Deng Weidong's response, was stunned. He couldn't believe his ears: How could Deng Weidong, who was so adamant about not endorsing the capital-protected fund, suddenly agree?

After Zhou Ming had seen Deng Weidong off, Cao Haiyang asked, "Mr. Zhou, what kind of magic did you use? How did you convince Manager Deng?"

Zhou Ming explained, "It's simple. No one wants to turn down money, and that includes the Stock Exchange. By offering to deposit an equivalent amount as a guarantee, it's not a direct bribe but rather counts as performance for him. Given his current situation with the stock market crash, he has no reason to refuse, especially when he bears no risk. Why wouldn't

 he help out?"

"Furthermore," Zhou Ming added, "when he said his reputation was valuable, wasn't that just hinting at what I was offering?"

Hearing Zhou Ming's explanation, Cao Haiyang gave him a thumbs up, "Mr. Zhou, you're incredible. You understood Manager Deng's mindset so thoroughly. I'm truly impressed! I would never have thought that his last comment was a hint!"