Recaps

Zhao Chen explained the legal status of Bitcoin and the risks surrounding digital currencies to the law students, distinguishing China’s rules from common misconceptions. He moved on to money laundering and ICO fraud, leaving the audience weighing the dangers facing investors.

• Zhao Chen presented the global regulatory landscape and explained that China’s 2013 notice barred financial institutions from Bitcoin business but did not prohibit individuals from holding or trading Bitcoin.
• Zhao Chen described the legal uncertainty around stolen Bitcoin and investor losses, prompting students to worry about their holdings on trading platforms.
• Zhao Chen outlined money-laundering risks, cited the WannaCry ransomware attack, and explained KYC, AML, and China’s real-name requirements for trading platforms.
• Zhao Chen presented ICO fraud risks and contrasted a genuine project white paper with one containing plagiarized claims and forged team information.

Zhao Chen explained Bitcoin’s scaling agreement and predicted that compliance, institutional investment, and broader applications would bring it into mainstream finance. His speech ended to thunderous applause, and the question-and-answer session began with Wang Jing raising her hand.

• Zhao Chen described how the SegWit and 2MB agreement could increase Bitcoin’s speed, lower fees, and encourage new applications, regulation, and traditional financial involvement.
• Zhao Chen cited Japan’s regulatory framework as an example of compliance creating trust and predicted that institutions would adopt Bitcoin through ETFs, investment funds, and custody services.
• Zhao Chen argued that Bitcoin’s future belonged to builders who embraced compliance, advanced technology, and expanded applications.
• Chen Xi monitored Zhao Chen’s delivery and the audience during the speech, then relaxed when it concluded successfully.
• Wang Jing raised her hand to ask the first question, while Chen Shuhua warned Shen Zhiyi that Wang Jing’s questions were sharp.

Zhao Chen finished his university lecture and promised Shen Zhiyi that he would accompany her home to meet her parents over the weekend. As students gathered around Zhao Chen, Shen Zhiyi resolved to grow enough to stand beside him, while Chen Hao left consumed by jealousy.

• Zhao Chen answered students’ questions about Bitcoin, explaining that investors should use idle funds, be prepared to lose everything, and hold for the long term.
• After the lecture, Shen Zhiyi praised Zhao Chen, and he promised to accompany her home to see her parents that weekend.
• Zhao Chen went outside to meet students who wanted photos, including a boy who thanked him for advice that had helped pay his college expenses.
• Shen Zhiyi watched Zhao Chen surrounded by students and decided to grow so she could stand beside him rather than hide behind him.
• Chen Hao watched Zhao Chen and Shen Zhiyi, then left the auditorium brooding over Zhao Chen’s success and Shen Zhiyi’s choice.

After Zhao Chen’s successful speech at Zhengfa University, he went home for lunch with Chen Xi and Su Wantang. Chen Xi enthusiastically recounted the speech, while the warm domestic scene underscored her complicated feelings about Zhao Chen and his closeness with Su Wantang.

• Zhao Chen decided to go home for lunch with Chen Xi after leaving Zhengfa University.
• Su Wantang welcomed Zhao Chen and Chen Xi home, and Chen Xi relaxed around her as they prepared to eat.
• Su Wantang briefly embraced Zhao Chen to show her care and support before returning to the kitchen.
• Chen Xi praised Su Wantang’s cooking over lunch and excitedly described Zhao Chen’s packed university speech.
• Chen Xi recalled Zhao Chen’s remarks about Bitcoin risks and his call for digital currency builders to embrace compliance.

Su Wantang and Chen Xi discussed their feelings for Zhao Chen, with Chen Xi admitting she might like him. Back at the company, Chen Xi reported that Lin Wanqing’s construction payments were quickly consumed by operating costs, leaving her companies dependent on rolling cash flow.

• Su Wantang told Chen Xi she accepted her place in Zhao Chen’s life alongside Shen Zhiyi.
• Chen Xi admitted she might like Zhao Chen, and Su Wantang advised her to let their relationship develop naturally without demanding more.
• Zhao Chen, Chen Xi, and Zhang Qingxue met at the company to review Lin Wanqing’s finances.
• Chen Xi reported that Lin Wanqing had used 62 million Hong Kong dollars from two sources to subscribe to ten million shares, while keeping her trust funds untouched.
• Chen Xi explained that Henglong had paid Lin Wanqing’s shell companies 302 million Hong Kong dollars over six months, which was almost entirely spent on equipment, suppliers, subcontractors, salaries, and operating costs.

Zhao Chen’s team discussed ways to pressure Lin Wanqing through audits, project reviews, and supplier checks while her capital chain was strained. Zhao Chen then proposed buying back 600 million in “equity-like debt,” but Zhang Qingxue warned that doing so could trigger a wider crisis of trust.

• Zhang Qingxue reported that prosecutors would formally charge Zhao Jianguo on June 19 and that the evidence against him was strong.
• Zhao Chen asked Chen Xi how they could intensify pressure on Lin Wanqing beyond waiting for her off-balance-sheet liabilities to mature.
• Chen Xi proposed early compliance audits of Lin Wanqing’s supplier companies, and Zhang Qingxue explained that the reviews could delay large payments.
• Chen Xi and Zhang Qingxue proposed rechecking project quality and verifying suppliers’ ownership to uncover possible related-party dealings.
• Zhao Chen said the company could use its new capital to buy back 600 million in “equity-like debt” as irregular historical investments.
• Zhang Qingxue urged Zhao Chen to proceed cautiously, warning that challenging the arrangements could damage trust across the industry and capital market.

Zhao Chen weighed whether to expose Lin Wanqing’s equity-like debt, while considering the risks to Henglong amid Zhao Jianguo’s unresolved case and pledged shares. He decided to sell Tesla shares for emergency funds and prepare for a possible move after the legal case reached an initial result.

• Su Wantang warned Zhao Chen that exposing the debt could worsen public attention around Zhao Jianguo’s case, and Zhang Qingxue agreed that the company faced serious reputational risks.
• Zhang Qingxue explained that a sharp share-price fall could trigger collateral demands on pledged shares, while Chen Xi warned Zhao Jianguo could face forced liquidation and deepen the decline.
• Zhao Chen decided not to use Henglong’s Bitcoin reserves to pressure Lin Wanqing and asked Chen Xi about the company’s Tesla holdings.
• Chen Xi reported that Tesla shares were worth about 53 million US dollars ahead of an expected market-moving shareholders’ meeting.
• Zhao Chen ordered Chen Xi to sell Tesla at a suitable price before June 10 and return the funds to the Hong Kong account as a reserve.
• Zhang Qingxue advised Zhao Chen to coordinate with creditors through Chen Qiming, prepare a contingency plan, and wait for Zhao Jianguo’s case and the Tesla sale before acting.

Chen Xi argued that Song Zhongping would switch sides because Zhao Chen now controlled Henglong Group and could secure Song’s position and benefits. The chapter ended with Zhao Chen considering Chen Xi’s plan to approach Song privately and promise improved treatment in exchange for support of compliance reforms.

• Chen Xi named Chief Operating Officer Song Zhongping as the person Zhao Chen’s side should win over.
• Chen Xi explained that Song’s pragmatic approach and clashes with Lin Wanqing’s financial decisions made him a poor fit for Lin’s faction.
• Chen Xi said the rights issue had made Zhao Chen Henglong’s undisputed major shareholder, giving him the power to preserve Song’s position and influence other managers.
• Chen Xi predicted that Song’s support would isolate Lin Wanqing in company operations and sway middle managers and board secretary Liu Mingyu.
• Zhao Chen asked how to win Song over, and Chen Xi proposed a private dinner followed by assurances of job security and better treatment.

Zhao Chen celebrated with Shen Zhiyi and her friends after his speech, then revealed that their 600,000 RMB Bitcoin investment had grown to about 3.6 million RMB. He advised them to keep holding for now and promised Assistant Chen would handle compliance when they decided to cash out.

• Zhao Chen joined Shen Zhiyi, Zhou Xiaowen, Chen Shuhua, and Li Jing for hotpot at Boiling Memories.
• Chen Shuhua and Zhou Xiaowen told Zhao Chen that his speech about digital currency had impressed students and professors.
• Zhao Chen revealed that their 600,000 RMB dorm fund had bought 190 Bitcoin through Double Leverage at an average price of 910 US dollars per coin.
• Chen Shuhua calculated that the Bitcoin was worth about 3.6 million RMB, and Zhou Xiaowen celebrated the investment's growth.
• Zhao Chen advised the women to hold their Bitcoin and said Assistant Chen would arrange compliance if they cashed out.
• Shen Zhiyi thanked Zhao Chen, and he told her that their investment was what she deserved for trusting him.

At an executive meeting, Zhao Chen proposed audits and investigations of Henglong Group’s suppliers and projects, drawing objections from Lin Wanqing. Song Zhongping and Sun Hao supported Zhao Chen, leaving Lin Wanqing to accept the audit while seeking control over its execution.

• Zhao Chen announced plans to audit suppliers, assess projects under construction, and investigate the ownership of suppliers and subcontractors.
• Lin Wanqing and Wang Zhenyu objected that the audits would add costs and delay projects, while Li Ming suggested conducting them in batches.
• Song Zhongping backed Zhao Chen, citing incomplete supplier payment documents and missing project quality inspection records as reasons to standardize procedures.
• Sun Hao supported the audits, arguing that the recent rights issue had given Henglong the funds to improve governance.
• Lin Wanqing accepted that the audit would proceed and proposed that Finance and Engineering jointly form the Audit Team under her leadership.

Zhao Chen pushed through stricter quality assessments and audits despite Lin Wanqing’s opposition, while compromising on mandatory supplier ownership disclosures. The meeting ended with audits and quality assessments set to begin immediately.

• Lin Wanqing argued against strict project grading, but Song Zhongping backed Zhao Chen’s staged assessments and agreed that projects failing rectification should be halted.
• Zhao Chen approved the second agenda item, setting a deadline for assessment rules and evaluations to begin the following Monday.
• Zhao Chen proposed penetrating equity checks on suppliers, prompting Lin Wanqing and Wang Lei to object while Zhang Qingxue and Song Zhongping defended transparency.
• Zhao Chen made ownership clarity a bonus rather than a requirement, but insisted that audits and quality assessments be enforced.
• Lin Wanqing dropped her objections, and Zhao Chen adjourned the meeting after ordering audits and quality assessments to start that day.

Zhao Chen won Song Zhongping’s support for his planned audits and reforms by offering the prospect of improved incentives for executives. The next day, Zhao Chen met Zhengfa University Vice President Li Zhenhua under the pretext of establishing a scholarship, intending to ask him about something.

• Zhao Chen thanked Song Zhongping for supporting him at the meeting and asked for advice on audits and quality assessments.
• Song Zhongping suggested investigating downstream subcontractors, prioritizing projects with high complaint rates and maintenance costs, and involving experienced operations staff.
• Zhao Chen raised plans to reform executive compensation and long-term incentives, and Song Zhongping agreed to support resolutions passed by the Board of Directors.
• Zhao Chen asked Chen Xi to arrange a meeting with Li Zhenhua, saying he planned to donate money to Zhengfa University for a scholarship and inquire about something.
• On June 7, Li Zhenhua welcomed Zhao Chen to his office and praised the lecture Zhao Chen had given at the university.

Zhao Chen learned that Zhao Jianguo was unlikely to receive probation and felt reassured that his father would be imprisoned long enough for him to carry out his plans. He then joined Shen Zhiyi, Zhou Xiaowen, Chen Shuhua, and Li Jing for dinner, where their teasing turned to his upcoming visit to Shen Zhiyi’s mother.

• Li Zhenhua told Zhao Chen that Zhao Jianguo would almost certainly receive a prison sentence and that probation was basically impossible.
• Zhao Chen left Zhengfa University and met Shen Zhiyi, Zhou Xiaowen, Chen Shuhua, and Li Jing, who had been waiting for him.
• Zhao Chen invited the four women to dinner at a private kitchen restaurant and treated them to Shan City dishes.
• Shen Zhiyi asked Zhao Chen about his meeting with Li Zhenhua, and he said he had discussed a scholarship without mentioning Zhao Jianguo’s case.
• Zhou Xiaowen and Chen Shuhua teased Zhao Chen and Shen Zhiyi about visiting her mother, then joked about their own place in Zhao Chen’s life.

In June 2017, Zhao Chen considered turning Henglong Real Estate toward pig farming after recalling the coming pork-price boom, but Chen Shuhua advised him to use financial markets instead of investing in heavy assets. He began researching listed breeding companies and left dinner with a preliminary investment direction, while Shen Zhiyi watched him with pride and gratification.

• Zhao Chen recalled the coming African Swine Fever epidemic and pork-price surge, and considered entering pig farming to create a new profit stream for Henglong Real Estate.
• Zhou Xiaowen described rising feed costs and the struggles of small pig farmers, while Chen Shuhua warned Zhao Chen that pig farming required heavy investment and carried significant risks.
• Chen Shuhua suggested investing in related stocks or futures rather than raising pigs, and Zhao Chen realized that financial instruments better suited his strengths.
• Zhao Chen searched for hog futures, learned none were yet available domestically, and considered stocks such as Muyuan Shares, Wens Shares, and New Hope.
• Chen Shuhua cautioned Zhao Chen to research agricultural companies and policy risks carefully, and Zhao Chen decided his idea needed further study.
• Shen Zhiyi watched Zhao Chen listen to Chen Shuhua’s analysis and felt proud and gratified by his perceptiveness and willingness to learn.

After Zhao Chen’s company doubled its investment in Tesla, he explored how to invest in rising pork prices and compared two major hog-farming business models. Zhang Qingxue recommended using Muyuan’s integrated model for an in-house operation, but warned that environmental approval and land use posed obstacles.

• Chen Xi reported that the company had sold its Tesla holdings for 61.5 million US dollars, more than doubling its initial investment, and expected the funds to reach its Hong Kong account by the next afternoon.
• Zhao Chen gathered Chen Xi, Su Wantang, and Zhang Qingxue to discuss investing in the trend of rising pork prices.
• Chen Xi compared Muyuan’s integrated farming model with Wens’s company-plus-farmer model, outlining their advantages and disadvantages and noting investors’ preference for Muyuan.
• Zhang Qingxue recommended that an in-house operation follow Muyuan’s model because of its stronger quality control, while warning that environmental approval and land use would be major challenges.

Zhao Chen weighed investing in Muyuan Shares against building Henglong’s own pig farms and proposed taking a minority stake in an established breeding company instead. The group agreed to seek a suitable partner, with Chen Xi beginning the search.

• Chen Xi, Zhang Qingxue, and Su Wantang compared the benefits and risks of buying Muyuan Shares with building Henglong’s own breeding business.
• Zhao Chen considered the potential industry-chain control, valuation gains, and strategic diversification of running their own farms alongside the risks of entering an unfamiliar industry.
• Zhao Chen proposed investing 30% to 40% in a mid-sized breeding enterprise and appointing directors and a finance director without taking control.
• Zhang Qingxue and Su Wantang supported the plan, noting that it could limit losses while building Henglong’s experience and future management team.
• Chen Xi began screening for breeding companies producing 200,000 to 500,000 hogs annually that had professional teams, needed capital, and would accept strategic investors.

Henglong’s internal audit fueled market panic and drove down its stock, while Zhao Chen’s team uncovered pressure mounting on Lin Wanqing’s companies. The chapter left Lin Wanqing’s shell companies facing a month of stalled payments and possible supplier lawsuits, loan recalls, or tax investigations.

• A Snowball user blamed Zhao Chen’s audit for uncertainty at Henglong, and the rumors helped push the stock price lower over several days.
• Chen Xi reported that Lin Wanqing’s companies were scrambling for cash, with overdue supplier payments disrupting the Riverside No. 1 project.
• Zhang Qingxue told Zhao Chen that Deloitte had found a 12 million Hong Kong Dollar overpayment to Huadong Construction that had gone unreturned for half a year.
• Chen Xi said Song Zhongping was tightening payment approvals, while Lin Wanqing could not provide the required acceptance and progress records.
• Zhang Qingxue warned that Lin Wanqing’s remaining 3.7 billion Hong Kong Dollars in trust funds were her last lifeline as the audit and rectification continued.

Lin Wanqing struggled to keep Zhenhua Construction afloat as Deloitte’s audit exposed irregularities involving suppliers tied to her. At a Henglong board meeting, she challenged Zhao Chen’s plan to suspend the suppliers and recover the money, leaving the dispute unresolved.

• Lin Wanqing learned that Zhenhua Construction had little cash left and an eight-million-yuan bank loan due the following Monday, but she refused Wang Zhenyu’s suggestion to speak with Zhao Chen.
• Lin Wanqing told Wang Zhenyu she could not back down because she feared Zhao Chen would take what she had built and what belonged to her children.
• Song Zhongping urged Wang Zhenyu to choose the right side, leaving him to wonder whether he should follow Song’s example.
• Deloitte delivered its final audit report, which detailed excess payments, fabricated construction quantities, and losses from substandard materials involving seven suppliers, including Huadong Construction and Zhenhua Construction.
• At the Henglong board meeting, Lin Wanqing objected to Zhao Chen’s plan to recover payments and suspend cooperation, warning that the suppliers could fail and their projects and workers would suffer.

Zhao Chen tracked Lin Wanqing’s efforts to raise funds and planned a final move against her faction: exposing Henglong’s equity-like debt after his father’s trial to trigger forced liquidation of Zhao Jianguo’s pledged shares. He expected Lin Wanqing to be unable to save Zhao Jianguo, leaving his control of Henglong at risk of ending for good.

• Chen Xi reported that companies linked to Lin Wanqing had transferred out funds and that Lin Wanqing had converted 10 million Hong Kong Dollars through private channels.
• Zhao Chen estimated Lin Wanqing could raise only 60 million that day and ordered his team to monitor her contacts, assets, and financing plans.
• Zhao Chen planned to expose the 600 million equity-like debt on June 20, the day after his father’s trial, to drive Henglong’s stock price down.
• Zhang Qingxue warned that a plunge below the 5.5 Hong Kong Dollar liquidation line could also force sales of other shareholders’ pledged shares.
• Zhao Chen said they could arrange buyers for Zhao Jianguo’s liquidated shares and predicted Lin Wanqing would not provide more collateral.

Zhao Chen nervously prepared to meet Shen Zhiyi’s parents, with Su Wantang helping him choose his clothes and gifts. He and Shen Zhiyi arrived at her family home, where Li Xiaojuan welcomed him and Shen Wentao greeted him in the living room.

• Zhao Chen tried three outfits before Su Wantang advised him to wear a light blue shirt and navy pants for the visit.
• Su Wantang gave Zhao Chen tea, a scarf, and a fountain pen to bring as gifts for Shen Zhiyi’s parents.
• Shen Zhiyi reassured Zhao Chen on the drive to her parents’ home, and he asked about her father’s work at the Design Institute.
• Li Xiaojuan enthusiastically welcomed Zhao Chen and took the gifts as he entered the Shen family home.
• Shen Wentao shook Zhao Chen’s hand and invited him to sit while Shen Zhiyi went to pour tea.

Zhao Chen discussed Henglong’s reforms with Shen Wentao and earned his respect, while Shen Zhiyi reassured her mother about Zhao Chen’s sincerity. The chapter ended with Zhao Chen promising Shen Wentao that he would never deceive or mistreat Shen Zhiyi.

• Shen Wentao questioned Zhao Chen about Henglong’s audit and reduced land acquisitions, and Zhao Chen explained his shift toward compliance and long-term financial health.
• Li Xiaojuan asked Shen Zhiyi whether Zhao Chen treated her well, and Shen Zhiyi explained that his 170 million Hong Kong Dollar shareholding gave her security.
• Li Xiaojuan accepted Shen Zhiyi’s reassurance and welcomed Zhao Chen warmly at dinner.
• Shen Wentao spoke privately with Zhao Chen on the balcony and asked him to be honest with Shen Zhiyi if their relationship ever faltered.
• Zhao Chen promised he would not deceive Shen Zhiyi and said he would always remember her trust in him.

Lin Wanqing publicly claimed she had three children with Zhao Jianguo and accused his biological son of taking over Henglong after his investigation. Zhao Chen left to deal with the fallout, with Shen Zhiyi quietly supporting him.

• Zhao Chen watched Lin Wanqing's livestream interview, where she revealed her long relationship and three children with Zhao Jianguo.
• Lin Wanqing said Zhao Jianguo's biological son had taken over the company and seized his thirty years of work after he came under investigation.
• Su Wantang asked Zhao Chen if he was all right, but he stayed silent and prepared to return to the Living Room.
• Shen Zhiyi stood beside Zhao Chen, comforted him by covering his hand, and offered to see him out.
• Zhao Chen and Shen Zhiyi returned to Shen Wentao and Li Xiaojuan, whose conversation stopped when they saw their expressions.

Zhao Chen faced a surge of media attention after Lin Wanqing claimed Zhao Jianguo had three illegitimate sons. He approved most of Henglong’s public statement and added a legal warning against Lin Wanqing, leaving the allegations themselves unconfirmed.

• Reporters surrounded Zhao Chen’s car at Henglong Building and demanded answers about Lin Wanqing’s claims and Zhao Jianguo’s imprisonment.
• Chen Xi told Zhao Chen that the interview had drawn more than eighty million views and that online commentators were turning the story into a family feud.
• Chen Xi presented a draft statement using marriage records, surveillance footage, and corporate governance explanations to address the controversy.
• Zhao Chen approved the first, third, and fourth sections but said the section about the case needed a stronger response.
• Zhao Chen directed the team to state that he had never heard of his father having other children and that he reserved the right to pursue Lin Wanqing for damaging his reputation.

Zhao Chen learned that his father's broker might be forced to liquidate Zhao Jianguo's pledged shares if the stock fell below 5.5 yuan before Monday's court hearing. As the team assessed the public response to the statement about Lin Wanqing, Zhang Qingxue received news that left her troubled.

• Zhao Chen's broker warned him that co-investors were demanding a risk reassessment and that the firm might forcibly liquidate Zhao Jianguo's pledged shares before Monday's close if the price fell below 5.5 yuan.
• Zhao Chen calmly acknowledged the warning and asked Chen Xi about the public reaction to the statement.
• Chen Xi reported that public opinion was divided, while institutional investors focused on Henglong's governance, audit progress, and the effects of Zhao Jianguo's court hearing.
• Zhang Qingxue warned that investors could fear management upheaval and a chain reaction from Zhao Jianguo's pledged shares.
• Su Wantang said the public still had unanswered questions about whether Zhao Chen had framed his father and whether Lin Wanqing would keep making trouble.
• Zhang Qingxue took a brief call, asked whether the report was certain, and ended the call with a grave expression.

Zhao Chen arranged for the brokerage firm to pressure Zhao Jianguo into transferring his pledged shares, offering to assume the debt and provide additional security. Zhang Qingxue identified regulatory and contract risks, then proposed securing the agreement with a pledge of Zhao Jianguo’s ten million unpledged shares.

• Zhao Chen told Chen Xi to offer the brokerage firm a takeover of Zhao Jianguo’s shares and arrange a visit to the detention center that evening.
• Chen Xi secured the brokerage firm’s agreement and promised additional collateral, including a 200 million Hong Kong dollar reserve.
• Zhang Qingxue explained that the transfer required regulatory disclosure and a new Whitewash Waiver, and warned that Zhao Jianguo might renege after signing.
• Zhang Qingxue proposed that Zhao Jianguo pledge his ten million unpledged shares to Zhao Chen as security for completing the transfer.