Chapter 144: Huijin and Huizhong

As the company grew larger, Xia Yu reorganized it, especially focusing on personnel management and assigning appropriate people to each role.

Firstly, the front office department, which is the core business unit that generates revenue and profits for the company, was established.

The business types include brokerage services, investment banking, asset management, proprietary trading, investment advisory, margin trading, and asset custody.

Jiuding Securities Company set up separate departments based on these business types, such as the Brokerage Management Headquarters, Investment Banking Headquarters and its various divisions, Asset Management Department, Investment Management Headquarters, Fixed Income Headquarters, Research Institute, Credit Business Headquarters, and Asset Custody Department.

Previously, during the time of Liuhe Securities, due to its weak capabilities, many businesses had little to no success, and some services were even non-existent. After Xia Yu acquired it, most of the investments were cleared. Now, except for the proprietary capital investments, the other business areas are still largely untapped.

However, each department now has industry veterans in place, with even the staff being experienced professionals. With the company's enormous reputation as a bonus, many of Jiuding Securities Company's business operations are expected to flourish without Xia Yu needing to worry.

Currently, Xia Yu is most focused on the Investment Management Department. Besides managing the company's proprietary capital investments, he plans to establish two securities investment funds under this department.

He has already decided on the names for these two funds: Huijin No. 1 Fund and Huizhong No. 1 Fund.

The Huijin No. 1 Fund will be managed by Jin Jiajun, a 35-year-old industry expert who previously served as an investment manager at another securities company. He is meticulous and decisive, qualities that Xia Yu admires. The entire Huijin series of funds, such as future Huijin No. 2, No. 3, etc., will all be under his control.

Xia Yu plans to raise at least HKD 100 million for Huijin No. 1 Fund. This fund is targeted at major investors, with the fund divided into 100 shares, meaning the entry threshold is HKD 1 million per share.

Of course, if the demand is high during the fund sale, Xia Yu may adjust the fund size slightly, and raising HKD 200 million isn't out of the question.

The name "Huijin" implies the gathering of funds, with an underlying meaning of attracting large investors.

Although the entry threshold is high, for those wealthy families and big investors, HKD 1 million is not a lot. To prevent any one investor from monopolizing the fund, Xia Yu has set a limit of ten shares per person, which equals a maximum investment of HKD 10 million.

Xia Yu knows that he won't lack for investors, so maximizing benefits is his priority. He intends to use these funds to expand his network, so the more investors, the better. If one person monopolizes the fund, it defeats his purpose.

Moreover, if only one or a few people monopolize the fund, it would also make management more difficult for Xia Yu, as it would be hard to balance the power.

The Huizhong No. 1 Fund and its future series of funds will be managed by Ai Lewen, a 36-year-old with a solid track record in his previous company and a keen investment eye. Xia Yu highly values him, and placing him in this position makes him part of the company's senior management.

The Huizhong No. 1 Fund will also raise HKD 100 million, but with a much lower entry threshold of HKD 50,000 per share, with a total of 2,000 shares available. Similar to the Huijin Fund, there is a purchase limit of ten shares per person, with a maximum investment of HKD 500,000.

The name "Huizhong" implies the gathering of the masses.

Xia Yu also plans to use this fund to expand the influence of Jiuding Securities Company and attract middle-to-upper-class clients. This demographic is capable of trading stocks and is the most desirable client group for securities companies. Xia Yu is eager to attract them and simultaneously spread the company's influence within this group, which will facilitate the development of other business areas in the future.

As for the lower-income demographic, Xia Yu is temporarily setting them aside. Given his limited energy, he needs to prioritize based on the importance and benefit to the company. Once the company continues to expand and the middle-to-upper-class market is fully developed, it will then be the turn of the lower-income demographic.

After organizing the company, Xia Yu also needed to review the proprietary capital investments to ensure he had a clear understanding, so he called Wang Qi in for a report.

"Boss, our proprietary capital was initially HKD 28.5 million. After this profit of HKD 125.84 million, it should now be HKD 154.34 million. You spent HKD 10 million on purchasing the Jiuding Financial Building, the company bought a car, and with various other expenses, our current available proprietary capital is HKD 144 million."

"Among this, the HKD 28.5 million was leveraged tenfold through HSBC, so the designated account is HKD 285 million. The unleveraged funds are HKD 115.5 million."

"From that HKD 285 million, after selling the Qingzhou Cement Company stock, we are left with stocks in Kowloon Wharf and Cheung Kong Holdings. Altogether, we own 4.9% of Cheung Kong Holdings, which cost HKD 63 million."

"We have also acquired 12.76% of Kowloon Wharf, totaling 12.5 million shares, which cost us HKD 167 million."

"So, after deducting the spent capital, the HKD 285 million fund now has HKD 55 million remaining."

"Well done!" Xia Yu praised.

"Thank you, boss!" Wang Qi's eyes flashed with joy as he quickly bowed in respect.

Knowing the boss valued him made Wang Qi feel secure. Previously, he was the most capable in the company, standing out like a crane among chickens, so he didn't think much of being valued by Xia Yu.

But now, with the company's large-scale expansion, many capable people had joined. The Hong Kong financial market is only so big, and after working in the industry for so many years, Wang Qi knew which companies had talented people. Even if he hadn't met them, he had heard of them, and he hadn't expected so many to jump ship to his company. In Wang Qi's eyes, many of these people were no less capable than him, with a few even surpassing him.

Despite being highly regarded by Xia Yu, Wang Qi felt the pressure, especially with the boss planning to launch two funds, each with a base of HKD 100 million, to be managed by Jin Jiajun and Ai Lewen. If they performed well, these funds could grow into multiple iterations. Wang Qi feared they might surpass him someday.

Feeling a strong sense of urgency, Wang Qi was now dedicating 120% of his energy every day, hoping to excel in all his tasks and prove his worth to the boss.

…

After hearing Wang Qi's report, Xia Yu fell into deep thought.

The acquisition of 12.76% of Kowloon Wharf's shares had already cost HKD 167 million. To reach at least 20%, or even 25% of Kowloon Wharf's shares, given that the stock price would rise gradually, would require at least another HKD 100 million. Currently, the dedicated account only had HKD 55 million remaining.

However, if the fund launches went smoothly, Xia Yu could transfer Cheung Kong Holdings' stock from one hand to the other, moving it to either Huizhong or Huijin Fund. This would not only recover the HKD 63 million principal but also yield a profit of about HKD 15 million.

This way, the dedicated account would have HKD 118 million remaining, enough to increase Kowloon Wharf's stock to 20%.

Additionally, the unleveraged account, with the near HKD 15 million profit, would have at least HKD 130 million.

For now, the funds are sufficient!

Other plans can proceed!

The other lower-profit, non-strategic investment tasks could be handed over to the Huizhong and Huijin Funds, allowing Xia Yu to continue making money without affecting his profits.

So, in Xia Yu's view, the foundation of Jiuding Securities Company had been laid, and it was quite solid. As long as the upcoming fund launches went smoothly, the company would have no immediate worries.

"Then, it's time to start raising funds!" A gleam of determination flashed in Xia Yu's eyes as he made up his mind.