Chapter Summaries

Wang An met Zhao Chen in Shan City to discuss the Labobo license and Henglong’s growing stake in Bubble Mary. They agreed to license Labobo to Bubble Mary and continue acquiring shares, with Henglong’s holdings locked until the company listed.

• Zhao Chen agreed to grant Bubble Mary an exclusive mainland China license for Labobo and said he could later transfer Mololoy’s overseas copyright as well.
• Wang An asked Zhao Chen to stop buying shares once Henglong reached 20%, but Zhao Chen explained he needed a larger stake to retain influence through future financing rounds.
• Zhao Chen proposed waiving voting rights through an agreement with Bubble Mary and locking Henglong’s shares against transfers, reductions, or pledges until Bubble Mary listed.
• Wang An accepted Zhao Chen’s proposal, agreed to the Labobo license, and told him to keep buying existing shares.
• Zhao Chen told Zhang Qingxue to pursue share acquisitions at full strength, including raising the premium if necessary.

Zhao Chen met Wang An and introduced Chen Wei as Henglong’s observer at Bubble Mary, while Wang An concluded that Zhao Chen did not intend to interfere with the company’s operations. In private, Zhang Qingxue warned that bypassing the board or personally buying Bubble Mary shares could create serious governance and conflict-of-interest problems, leaving Zhao Chen to weigh the short-lived opportunity against those risks.

• Zhao Chen hosted Wang An, Chen Mo, Zhang Qingxue, and Chen Wei at a hot pot restaurant and introduced Chen Wei as Henglong’s nonvoting observer at Bubble Mary.
• Chen Wei told Wang An she hoped to learn about other industries and branding, and Wang An welcomed her to the observer role.
• Zhang Qingxue warned Zhao Chen that exceeding the board-approved budget or valuation to buy Bubble Mary shares without fresh approval would violate procedure and damage trust in his governance.
• Zhao Chen proposed using his own money to secure the shares, but Zhang Qingxue explained that a personal purchase could raise related-party and conflict-of-interest concerns.
• Zhao Chen recognized that personally buying Bubble Mary shares could make outsiders suspect he was using Henglong’s investment to benefit himself.

Zhao Chen decided to acquire as many Bubble Mart shares as possible before formal board approval, with Zhang Qingxue agreeing to proceed and Zhao Chen accepting responsibility. After Wang An trusted him to buy the existing shares, Zhao Chen called Shen Jue to update her on the acquisition and its narrow window.

• Zhao Chen rejected waiting two weeks for a board meeting and told Zhang Qingxue to begin buying shares, promising to take responsibility for bypassing authorization.
• Chen Wei discussed supply chains with Wang An over dinner, and Wang An said he trusted Zhao Chen to buy the existing shares.
• Zhao Chen told Zhang Qingxue to acquire shares from small and medium shareholders at a valuation of 1.3 billion, while ruling out personal purchases.
• Zhang Qingxue praised Chen Wei's ability to connect with people, and Chen Wei seemed pleased by the comment.
• Zhao Chen called Shen Jue and explained that Wang An had lifted the cap on acquiring existing shares, leaving Henglong a short window to buy.

Zhao Chen sought Shen Jue’s approval for buying Bubble Mary shares at a valuation of 1.3 billion, arguing that Wang An’s insight into designer toys justified the risk. Shen Jue did not agree with the valuation but chose not to stop him, and Zhao Chen ended the chapter preparing to prove his judgment through Bubble Mary’s future results.

• Zhao Chen explained to Shen Jue that Henglong would not sell its shares before the listing and argued that Wang An’s understanding of consumers made Bubble Mary worth backing.
• Shen Jue said she still considered the valuation too high, but acknowledged Wang An’s conviction and agreed not to stop Zhao Chen.
• Shen Jue required Zhao Chen to convene the board and complete the acquisition procedures as soon as the first phase was finished.
• After ending the call, Zhao Chen reflected that Shen Jue’s acquiescence depended on his past results and that he would have to prove his judgment.
• Zhao Chen arrived home, exchanged good-night messages with Shen Zhiyi, and resolved to help Bubble Mary develop quickly.

Zhao Chen spent the days before Lunar New Year visiting Shen Zhiyi's parents and celebrating New Year's Eve with Su Wantang. As the holiday ended, he prepared to travel to the United States and confront Wall Street.

• Zhao Chen visited Shen Zhiyi's home with gifts, talked with her father about work, and stayed overnight after accepting a drink.
• Shen Zhiyi's father asked Zhao Chen to treat his daughter well, and Zhao Chen assured him he would.
• Zhao Chen returned home on Lunar New Year's Eve, where Su Wantang prepared dinner and asked how Shen Zhiyi's parents had treated him.
• Zhao Chen and Su Wantang shared New Year's Eve dinner and reflected on how much more settled Zhao Chen's life had become since the previous year.
• After the New Year, Zhao Chen prepared to travel to the United States to face Wall Street.

After the Spring Festival, Zhao Chen resumed work at Henglong, pushed to increase its Bubble Mart stake, and prepared to travel to the United States to buy Tesla shares and pursue other future-shaping companies. The chapter left him ready to face Wall Street as Chen Xi stayed behind to oversee Henglong’s other investments.

• Zhao Chen spent the first days of the lunar new year at home with Su Wantang and received New Year visitors Chen Xi and Zhang Qingxue.
• At Henglong’s first post-holiday executive meeting, Zhang Qingxue reported that Henglong held 17.8% of Bubble Mart after buying shares above the board-authorized valuation.
• Zhao Chen instructed Zhang Qingxue to keep acquiring shares, allowing a valuation up to 1.4 billion, while Chen Qiming confirmed the purchases would not disrupt debt reduction.
• Zhao Chen assigned Chen Xi to attend Yunnan Agriculture’s shareholders’ meeting and oversee its financial integration and Bubble Mart acquisitions while he traveled to the United States with Zhang Qingxue and Su Wantang.
• Zhao Chen checked Tesla’s price, then prepared to fly to the United States to buy more shares and seek out promising companies unknown in 2018.

Zhao Chen, Su Wantang, and Zhang Qingxue flew from Shan City to New York, where Zhao Chen prepared to begin Era Vanguard’s Tesla options business. After arriving, he checked into a Manhattan hotel and tried to sleep before the work ahead.

• Zhang Qingxue gave Zhao Chen and Su Wantang their business-class boarding passes for a direct flight to New York.
• Zhao Chen, Su Wantang, and Zhang Qingxue boarded the flight and left Shan City behind.
• After fifteen hours in the air, the three arrived at JFK Airport, where Zhao Chen told immigration he was visiting for business for two weeks.
• Zhang Qingxue’s arranged Lincoln drove them through Queens and across the Queens Bridge to their Midtown hotel.
• Zhao Chen looked out over Manhattan and thought about Tesla options and Era Vanguard’s arrival in New York.
• Zhao Chen checked into his room near Central Park and eventually fell asleep while trying to clear his mind of trading figures.

Zhao Chen prepared to expand his Tesla investment in New York, instructing Zhang Qingxue to discreetly gather options quotes and liquidity data from three banks. After a quiet walk in Central Park with Su Wantang, he remained determined to use his knowledge of Tesla’s future rise.

• Zhang Qingxue laid out a schedule for approaching Goldman Sachs, JPMorgan Chase, and Morgan Stanley about Tesla options beginning Monday.
• Zhao Chen told Zhang Qingxue to conceal Era Vanguard’s identity and intentions and to seek quotes from all three institutions to disguise their position.
• Zhao Chen explained to Su Wantang that he expected Tesla’s Model 3 production problems to be resolved and the market’s pessimism to fade.
• Zhao Chen walked through Central Park with Su Wantang, who asked what he would do if he no longer had to push himself so hard.
• Zhao Chen thanked Su Wantang for coming with him before they returned to the hotel, and he anticipated that Tesla’s stock investors would soon see a spring.

Zhao Chen met with Wall Street lawyer Lin Shicheng to discuss building a legal team for his planned U.S. investments, while Zhang Qingxue arranged meetings with three banks’ options-trading heads. Lin warned that Zhao’s aggressive strategy and cross-border options trading could bring regulatory risks, then began explaining the relevant securities law.

• Zhang Qingxue told Zhao Chen she had scheduled meetings with the options-trading heads of Goldman Sachs, JPMorgan Chase, and Morgan Stanley for Monday.
• Zhao Chen said he wanted to meet the lawyer Zhang Qingxue had recommended, and Su Wantang agreed to join them.
• Zhao Chen, Su Wantang, and Zhang Qingxue met Lin Shicheng, who asked what kind of legal support Zhao needed for his U.S. investments.
• Zhao Chen said he had several billion U.S. dollars to invest and wanted help with securities-law compliance, cross-border tax planning, and regulatory inquiries.
• Zhao Chen described his strategy as aggressive, and Lin Shicheng warned that options and leveraged trades could draw greater SEC scrutiny before pointing out a provision of the Securities Exchange Act of 1934.

Zhao Chen hired Lin Shicheng to assemble a legal and compliance team as he prepared for meetings with major Wall Street banks. After confirming the next morning’s Goldman Sachs meeting and approving a proposed Bubble Mary share purchase, he went to sleep thinking about the risks of revealing his trading positions.

• Zhao Chen agreed to hire Lin Shicheng, who said he could assemble a securities lawyer, tax accountant, and cross-border compliance specialist within three days.
• Zhao Chen and Zhang Qingxue judged Lin Shicheng dependable, then Zhang told them Goldman Sachs had scheduled a meeting with Michael Chen for nine the next morning.
• Zhao Chen decided to share only past trading volumes and position sizes with Goldman Sachs, withholding specific strategies and prices.
• Zhao Chen recorded Lin Shicheng’s team and upcoming bank meetings in his notebook, then received Chen Xi’s update that Zhou Hao had started at Yunnan Agriculture and a Bubble Mary shareholder would sell 1.2% at a 1.4 billion valuation.
• Zhao Chen approved the proposed Bubble Mary acquisition subject to Zhang Qingxue reviewing the agreement, then went to sleep considering the Goldman Sachs meeting and the danger of exposing his positions.

Zhang Qingxue visited Goldman Sachs, JPMorgan Chase, and Morgan Stanley to assess the available liquidity and prices for Tesla call options. She found that the market could not supply enough contracts for a large purchase, so she planned to discuss a longer-term approach with Zhao Chen.

• Zhang Qingxue asked Michael Chen at Goldman Sachs about Tesla call-option liquidity, and he estimated that fewer than ten million shares’ worth of contracts had real trading value.
• Michael Chen quoted premiums for January 2019 calls and advised Zhang Qingxue to buy gradually or seek sellers for an over-the-counter deal.
• Zhang Qingxue met James Holbrook at JPMorgan Chase, who said his firm had options covering about two million shares with real value and warned that institutions were watching Era Vanguard.
• Sarah Wu told Zhang Qingxue that Morgan Stanley had liquidity for roughly three million shares and could seek larger holders to sell over the counter.
• Zhang Qingxue concluded that available Tesla call options were too scarce for the intended purchase and that she and Zhao Chen would need to plan over the longer term.

Zhao Chen weighed Tesla call options against buying common stock and decided to pursue shares below $300 instead. He left Zhang Qingxue with instructions to seek a plan for accumulating ten million shares and investigate the size and direction of Tesla’s short positions.

• Zhang Qingxue reported that suitable Tesla call options were scarce, with most available strikes between $300 and $350 and premiums between $10 and $20.
• Zhao Chen explained that options offered leverage but carried expiration risk, then compared their costs with buying Tesla shares directly.
• Zhang Qingxue estimated that buying 500,000 shares per day would have limited impact, while accumulating ten million shares within a month could push the price up.
• Zhao Chen rejected the current options prices and decided to buy as much Tesla common stock below $300 as possible.
• Zhao Chen asked Zhang Qingxue to request plans from three investment banks for buying ten million shares within three months and to ask Michael Chen about Tesla’s short position and whether short sellers were adding or covering.

Zhao Chen explained why he planned to buy Tesla common stock rather than rely mainly on options, weighing the shares’ potential returns, risks, and flexibility. He decided to buy as much Tesla stock below $300 as possible, then sell some to fund a Nvidia position if Tesla rose or pledge the shares if it did not.

• Zhang Qingxue noted that she would follow up with Lin Shicheng, arrange the legal team, and review funding accounts for compliance issues.
• Zhao Chen told Su Wantang he would keep buying Tesla shares if the price fell, as long as the company avoided bankruptcy.
• Zhao Chen explained that limited options supply and high premiums made common stock more attractive, despite the investment’s short-term horizon.
• Zhao Chen said he could hold Tesla shares through a downturn or pledge them to borrow money for buying Nvidia, while cheap options could serve as a small hedge.
• Zhao Chen chose common stock and planned to buy below $300, then sell part of his holdings to fund Nvidia if Tesla rose or pledge the shares if it did not.

Lin Shicheng reviewed Era Vanguard’s fund structure and Tesla holdings with Zhao Chen, identifying compliance steps and disclosure thresholds. Zhao chose to preserve his privacy through a multilayered offshore structure and planned to keep his Tesla stake below 10%, clearing the way for further purchases.

• Lin Shicheng told Zhao Chen that Era Vanguard’s fund structure was solid but recommended closing a Singapore account with incomplete KYC records and moving its funds to the Cayman Islands SPV.
• Lin Shicheng explained the SEC disclosure options, and Zhao rejected voluntary disclosure in favor of a multilayered structure to protect his privacy.
• Zhang Qingxue said Era Vanguard held nine million Tesla shares, or 5.36%, and Lin advised keeping the stake below 10% to avoid stricter disclosures and insider rules.
• Lin confirmed there was no cap on compliant purchases of Tesla shares and recommended keeping Zhao’s stake around 9.9% as a safety margin.

Zhao Chen discussed using out-of-the-money options alongside Tesla common stock to increase his exposure while keeping his reported ownership below 10%. Lin Shicheng warned that rising share prices, regulatory scrutiny, and hostile reports could still create serious problems for Era Vanguard.

• Zhao Chen asked Zhang Qingxue how many Tesla shares he would need to buy to raise his common stock stake to 9.9%, and she estimated another 7.63 million shares.
• Zhao Chen asked Lin Shicheng whether options counted toward ownership disclosures, and Lin said derivatives generally did not count as common stock.
• Lin Shicheng warned that deep-in-the-money options could lead regulators to treat Zhao Chen as a beneficial owner and scrutinize his holdings.
• Zhao Chen proposed selling common stock before his options moved into the money, and Lin said the approach was feasible but depended on timing.
• Lin Shicheng warned that a report from Wall Street rivals could trigger an SEC investigation, and Zhao Chen recalled short sellers targeting Era Vanguard.

Zhao Chen rejected Tesla options to avoid attracting regulatory scrutiny and began accumulating common shares instead. After Era Vanguard bought 1.2 million shares, Zhang Qingxue raised the question of disclosure requirements, leaving Zhao Chen to seek clarification from Lin Shicheng’s legal team.

• Zhao Chen decided to buy 7.63 million Tesla common shares within half a month while keeping his holdings below 9.9%, and ruled out options because they could trigger an SEC investigation.
• Zhao Chen told Zhang Qingxue to shelve the Goldman Sachs meeting about options while Lin Shicheng continued setting up the legal and compliance structure for the purchases.
• Zhao Chen told Su Wantang that Tesla could reach $350 to $400 by year’s end and that he might sell some Tesla shares or borrow against them to buy Nvidia.
• On March 1, Zhang Qingxue bought 1.2 million Tesla shares for Era Vanguard at an average price of $271.60, bringing its holdings to 10.2 million shares, or 6.07%.
• Zhang Qingxue asked how often Era Vanguard had to disclose its stake after it exceeded 5%, and Zhao Chen decided the issue needed clarification from Lin Shicheng.

Zhao Chen learned that Era Vanguard could increase its Tesla stake to 9.9% and report the purchases after the quarter ended, provided it kept detailed trading records. Zhang Qingxue then warned him that their business visas expired before the planned buying period would be over, leaving Zhao Chen facing a visa problem.

• Zhao Chen called Lin Shicheng, who explained the disclosure rules for passive investors and advised keeping the stake below 10%.
• Zhang Qingxue agreed to record the daily trades and send the records to Lin Shicheng.
• Zhao Chen told Zhang Qingxue and Su Wantang to keep buying Tesla shares below 9.9%, adjusting their pace according to the price.
• Zhao Chen messaged Chen Xi to increase efforts to acquire existing shares in Bubble Mary.
• Zhang Qingxue reminded Zhao Chen that their business visas, issued after they entered on February 23, required them to leave before March 9.

Zhang Qingxue explained how Zhao Chen’s group could extend their time in the United States by briefly traveling to Canada and reentering. As Era Vanguard continued buying Tesla shares, Wall Street noticed the activity and Jim Cramer publicly identified the fund as the buyer.

• Zhang Qingxue relayed Lin Shicheng’s advice to leave for Canada and reenter the United States to gain another two weeks, and Zhao Chen approved the plan for around March 7.
• By March 6, Era Vanguard had bought 2.9 million more Tesla shares, bringing its holdings to 11.9 million shares, or 7.08% of the company.
• Zhang Qingxue noticed that other buyers were following Era Vanguard’s trades, and Zhao Chen told her to continue buying as planned.
• On CNBC, Dan Ives said the regular purchases appeared to come from an institution, while Jim Cramer declared that Era Vanguard was buying Tesla again.

Zhao Chen continued Era Vanguard’s Tesla purchases as the trading pattern attracted attention, bringing the stake close to its 9.9% target. He and Zhang Qingxue and Su Wantang left New York for Toronto, where they planned to continue buying.

• Zhao Chen told Zhang Qingxue to keep buying Tesla after Cramer deduced that Era Vanguard was accumulating shares.
• Era Vanguard bought 700,000 shares at an average of $274.8, while other accounts began following and Tesla closed at $276.8.
• Zhao Chen set a new plan to buy only below $280 and said they would trade from Toronto; Zhang Qingxue estimated they needed another 4.23 million shares to reach the target.
• Zhao Chen read social media and Matt Levine’s analysis speculating about Era Vanguard’s Tesla purchases and possible Schedule 13D filing.
• Su Wantang asked Zhao Chen whether critics would praise him if Tesla rose above $300, and he said he did not mind being called lucky as long as he made money.
• Zhao Chen, Zhang Qingxue, and Su Wantang boarded their flight from New York to Toronto, where Lawyer Lin was waiting.

In Toronto, Zhao Chen directed Zhang Qingxue to cautiously buy Tesla shares through hidden and irregular orders while monitoring the market. By Friday, their stake had reached 13.4 million shares, and Zhao planned to finish buying the remaining shares after they returned to the United States on Monday.

• On Thursday, Zhang Qingxue bought 700,000 Tesla shares at an average price of $278.0, bringing their holdings to 12.9 million shares.
• Zhao Chen warned that their trading times were too regular, so Zhang Qingxue agreed to vary the timing and quantities of future orders.
• On Friday, Zhao Chen had Zhang Qingxue wait until midday to begin buying, and she acquired 500,000 shares at an average price of $275.3.
• Their holdings reached 13.4 million shares, an 7.98% stake, leaving 3.2 million shares to reach their 16.6 million target.
• Zhao Chen planned to buy about 850,000 shares per day after returning to the United States on Monday and told Zhang Qingxue and Su Wantang to rest over the weekend.