Chapter Summaries

Lin Shicheng completed Era Vanguard’s 2019 investment report, documenting its holdings, transactions, compliance framework, and risks. Zhao Chen reviewed the report and said it would preserve a record of how Era Vanguard had built its positions.

• Lin Shicheng summarized Era Vanguard’s approximately $27.1 billion in assets and noted that its Henglong-share financing had been repaid and all pledged shares released.
• Lin Shicheng documented Era Vanguard’s Nvidia accumulation and Zhao Chen’s decision to lock up the holding as a permanent core position.
• Lin Shicheng reviewed Era Vanguard’s Tesla purchases, including its May 9 defense of the shares near the liquidation line, and recorded the holding’s transition to a strategic allocation.
• Lin Shicheng outlined Era Vanguard’s SEC filings and compliance safeguards, then recommended diversifying future earnings while recognizing the risks of concentrated holdings.
• Lin Shicheng signed the report and gave it to Zhao Chen, who reviewed it and said it would archive the fund’s actions for future reference.

Zhao Chen thanked Lin Shicheng for protecting Era Vanguard through its Nvidia investment and May’s margin crisis, while Lin explained why he had chosen to stand by Zhao. Lin left after acknowledging that Zhao’s gratitude had given their relationship a deeper meaning.

• Zhao Chen invited Lin Shicheng to dinner and recalled how Lin’s compliance conditions had helped prevent Era Vanguard’s liquidation.
• Lin Shicheng said he had wanted to protect Zhao Chen and Era Vanguard from regulatory mistakes, even before he fully understood Zhao.
• Zhao Chen praised Lin for refusing to seek leniency from investment banks during the May margin calls and for helping preserve Era Vanguard’s credit.
• Lin Shicheng credited Zhao with making the hardest decisions, while Zhao recognized Chen Xi, Zhang Qingxue, and Su Wantang for helping secure financing and prepare legal documents.
• Zhao Chen said Era Vanguard belonged to everyone who had helped it survive, and Lin Shicheng left after thanking him for recognizing his efforts.

Zhao Chen watched Starworm complete its first low-altitude hover test ahead of schedule and spoke with Elon Musk about the risks and setbacks they had overcome. Musk outlined Starship’s planned twenty-kilometer flight test for next year, and Zhao promised to attend.

• Zhao Chen watched Musk’s video of Starworm hovering twenty meters above the ground and landing safely.
• Zhao Chen called Musk, who credited the Raptor engine improvements and flight-control algorithm for the successful test.
• Musk told Zhao Chen that Zhao’s advice about failure had helped him persist through Starworm’s engine setbacks.
• Zhao Chen recalled the financial risks he and his associates faced when Era Vanguard was near its margin-call threshold.
• Musk said Starship’s next goal was a twenty-kilometer flight test the following year, and Zhao said he would be there.

After Starworm's successful hover test, Zhao Chen gathered Lin Shicheng, Chen Xi, Zhang Qingxue, Su Wantang, and Shen Zhiyi to thank them for their roles in keeping Era Vanguard and Henglong afloat during the May margin-call crisis. The meeting ended with Lin reflecting that the line they had drawn together the previous year may have been a first step of its own.

• Zhao Chen told the group that Elon Musk had called Starworm's twenty-meter flight humanity's first step toward Mars and recalled how everyone had held the line during Era Vanguard's May crisis.
• Zhao Chen thanked Lin Shicheng for setting conditions that restrained his decisions and protected Era Vanguard from liquidation.
• Zhao Chen credited Chen Xi with defending the share price through disciplined buying and Zhang Qingxue with safeguarding the loan and the group's legal compliance.
• Zhao Chen thanked Su Wantang for supporting the financing and carrying out difficult work, and Shen Zhiyi for completing cross-border compliance and helping calculate the margin-call costs.
• Zhao Chen said the shorts had miscalculated rather than been defeated, and credited each colleague for keeping the group in the right position.
• Lin Shicheng reflected that the line they had drawn on the plane the previous year might have been a first step, then capped his pen without writing further.

Zhao Chen reviewed Green Energy Technology’s mass-production progress and arranged its Series C financing and pre-IPO preparations as its production line neared full capacity. With his US market battles and the SEC investigation behind him, he waited for Su Wantang and planned his return to China.

• Zhao Chen read Chen Xi’s report on Henglong Group’s strong third-quarter results and told her to proceed as planned.
• Zhao Chen reviewed Zhou Bingcheng’s report that Green Energy Technology had produced over 800 tons of thermal storage composite material in the third quarter, with its pass rate reaching 97.5 percent.
• Zhao Chen instructed Lin Shicheng to prepare Green Energy Technology’s Series C financing terms and pre-listing structure, with Zhang Qingxue coordinating.
• Zhao Chen asked Lin Shicheng to monitor Nvidia and prepare wording for a Schedule 13D amendment if Huang Renxun announced a new architecture.
• Zhao Chen saw that Su Wantang’s flight had landed and planned visits to Green Energy Technology’s new production line, a Henglong board meeting, and Zhengfa University.
• Zhao Chen waited for Su Wantang as footsteps approached the suite door.

Su Wantang returned to New York from a philanthropy forum and discussed the foundation’s sustainability and their packed schedule after returning to China with Zhao Chen. Zhao Chen decided they would go to Shan City first, where Henglong’s affairs, his alumni obligations, and Shen Zhiyi’s documents awaited them.

• Su Wantang told Zhao Chen that international philanthropic foundations were interested in replicating her teacher-training program and had asked whether its funding model was sustainable.
• Zhao Chen showed Su Wantang Chen Xi’s schedule of press, business, university, and government commitments for the month after their return to China.
• Su Wantang told Zhao Chen that a philanthropic organization had invited her to advise on a multinational education project, while Zhao Chen reviewed messages from Shen Zhiyi and Zhang Qingxue about the Yunnan Agriculture Group IPO and Henglong paperwork.
• Zhao Chen said he wanted to take Shen Zhiyi to their alma mater as an alumnus after signing the documents awaiting him.
• Su Wantang outlined their upcoming work in Magic City and Shan City, and Zhao Chen chose to travel to Shan City first.

Zhao Chen returned to Shan City and faced reporters asking about Henglong Group and Era Vanguard's investments. He said Era Vanguard would use some Nvidia gains to repay Henglong's share-pledge financing early, and headed to Henglong's headquarters for a meeting.

• Zhao Chen arrived at Shan City airport with Su Wantang and was met by Liu Mingyu.
• Reporters crowded Zhao Chen and asked about Henglong, Era Vanguard, Nvidia, and his return to China.
• Zhao Chen said Henglong and Era Vanguard operated independently and that he had returned to handle domestic business.
• Zhao Chen revealed that Era Vanguard would use some Nvidia gains to repay Henglong's share-pledge financing, with all pledged shares expected to be released ahead of schedule next year.
• Zhao Chen said Shan City was his home and Henglong had grown there, then left the airport for the company's headquarters.
• Su Wantang told Zhao Chen that Shen Jue and Song Zhongping were waiting at Henglong, and Zhao Chen said their actions could withstand public scrutiny.

Zhao Chen returned to Henglong Group headquarters and met with the directors after his overseas battle for Era Vanguard ended. He thanked them for keeping Henglong running and supporting his decision to pledge its shares, while Shen Jue affirmed his plan to repay the financing and release the pledged shares.

• Zhao Chen arrived at Henglong Group headquarters through the underground garage to avoid reporters waiting in the lobby.
• Liu Mingyu told Zhao Chen that the directors were waiting and that Shen Jue had arrived early to see him.
• Shen Jue welcomed Zhao Chen by noting Henglong's share price and market capitalization had risen substantially during his absence.
• Chen Qiming raised the third-quarter figures and asked whether the New York secured loan's principal and interest would be included in the annual report.
• Zhao Chen thanked the directors for supporting Henglong and supplying the backing for his overseas fight against Era Vanguard.
• Shen Jue said she supported Zhao Chen's plan to realize Era Vanguard's gains, repay the loan early, and release Henglong's pledged shares.

Zhao Chen heard updates from Henglong’s executives, then disclosed Era Vanguard’s holdings and the history of its funding and Henglong share pledges to the board. He invited the directors to question him about the related transactions and fund transfers.

• Song Zhongping reported that Henglong Real Estate had three assets left to sell and recommended accepting full payment for the Xiyong land; Zhao Chen approved his plan.
• Chen Qiming reported that Henglong’s finances were in order and that the third-quarter report was ready for Zhao Chen’s signature.
• Shen Jue summarized governance concerns about share-pledge disclosures, information barriers, and the executive Compensation Committee’s annual review.
• Zhao Chen told the board that Era Vanguard held major stakes in Nvidia, Tesla, and SpaceX, with total assets of about US$27.1 billion.
• Zhao Chen explained how the original Henglong share pledge funded his Bitcoin investment and how a later pledge raised US$3 billion for Tesla and Nvidia positions.
• Zhao Chen invited the directors to raise questions about Era Vanguard’s related transactions and fund transfers with Henglong.

Zhao Chen and the directors reviewed the repayment and release of Henglong’s share-backed financing and approved a plan for voluntary disclosure. The meeting ended with Zhao Chen directing Liu Mingyu to prepare the Supplementary Explanation and Song Zhongping to proceed with the Xiyong plot.

• Shen Jue asked Chen Xi to report on the follow-up arrangements for Henglong’s share-backed financing.
• Chen Xi explained that the proceeds and repayment had been documented and recommended voluntarily disclosing the fund use, repayment source, and pledge-release timeline.
• Sun Zhengping questioned whether the cross-border transfers complied with mainland regulations, and Chen Xi presented documentation from Lin Shicheng and Zhang Qingxue.
• Zhao Chen confirmed that he would continue paying HK$200 million annually to compensate the listed company until the announced compensation period expired.
• The directors approved the follow-up plan, and Zhao Chen assigned Liu Mingyu to draft the Supplementary Explanation and Song Zhongping to proceed with the Xiyong plot.

After the board meeting, Zhao Chen arranged an unrestricted media briefing to address scrutiny of Henglong and Era Vanguard. He approved an open invitation for journalists to ask anything and resolved to answer candidly about breaking his promise to pledge his shares.

• Zhao Chen asked Liu Mingyu to organize a media briefing, not a scripted press conference or investor relations event.
• Liu Mingyu reported that more than a hundred journalists had registered, including reporters from overseas media outlets.
• Zhao Chen welcomed all interested media and ordered that every journalist be allowed to ask questions without advance screening.
• Liu Mingyu asked how Zhao Chen would explain pledging more than 300 million shares after promising not to.
• Zhao Chen said he had pledged his shares to raise funds to protect Era Vanguard and increase holdings in undervalued assets, and would pay HK$200 million annually as compensation.
• Zhao Chen approved sending invitations and promised not to dodge any question at the briefing scheduled for October 12.

Zhao Chen held his first domestic media meet-and-greet since his identity became public, answering questions about his broken promise, Era Vanguard, Henglong, and his investments. He ended by saying his wealth let him keep doing what he wanted, rather than what others wanted him to do.

• Liu Mingyu checked the venue and event equipment before Zhao Chen arrived with Su Wantang and took the stage.
• Zhao Chen invited reporters to ask anything and explained that he had pledged Henglong shares to protect Era Vanguard and investors, promising to compensate the listed company 200 million Hong Kong dollars annually.
• Zhao Chen dismissed the importance of his Bloomberg title and described Elon Musk as his trusted partner, while saying Bitcoin had provided the foundation for his investments.
• Zhao Chen defended his decision to protect Tesla and said short selling was neither right nor wrong, because investors acted on their beliefs about the company's fundamentals.
• Zhao Chen told a young reporter that wealth let him afford to lose, withstand doubts, and continue doing what he wanted.

Zhao Chen announced Henglong Group’s five-year shift toward technology and consumption, focusing on new energy and AI computing infrastructure, and revealed a billion-yuan charity foundation. He left the reporters with a pledge to fund the foundation himself and invited them to scrutinize its spending and Henglong’s progress.

• Zhao Chen introduced Henglong Group’s five-year plan to become an industrial investment group driven by technology and consumption.
• Zhao Chen named the new energy industry chain and AI computing power infrastructure as Henglong’s two core sectors and outlined plans to expand investment in both.
• Zhao Chen announced that he was establishing the Henglong Charity Foundation with an initial contribution of one billion yuan and said its first major project had trained several thousand rural teachers.
• Zhao Chen explained that he founded the charity to give children from limited-resource families opportunities through education, and said the foundation would accept no outside donations.
• Zhao Chen asked reporters to scrutinize the foundation’s expenditures and hold him accountable for Henglong’s five-year plan, prompting applause.

Zhao Chen’s media briefing boosted confidence in Henglong Group, raised its share price, and drew interest from overseas investors. A report about a teacher supported by the Henglong Charity Foundation moved him to preserve her letter as evidence of the foundation’s work.

• Major domestic and overseas media reported on Zhao Chen’s five-year strategy and charitable contribution after his first public appearance since returning to China.
• Henglong shares closed at HK$104.5, up about 2.5%, as board members and analysts discussed the company’s valuation and Zhao Chen’s credibility.
• Liu Mingyu told the directors that two leading New York asset managers and an Asian sovereign wealth fund had booked research visits.
• Xinhua News Agency reported on foundation-supported teacher training, and Su Wantang told Zhao Chen that a teacher in the report planned to pursue postgraduate study and keep teaching in her village.
• Zhao Chen asked Su Wantang to place the teacher’s letter in the foundation’s permanent archives and kept the report in his desk.

Su Wantang and Zhao Chen reflected on the meaning behind his remarks about education at the press conference. The chapter ended with the two sharing a quiet moment in his office as a new message about Nvidia’s filing waited on Zhao Chen’s phone.

• Su Wantang told Zhao Chen that a video of his press conference remarks had received more than twenty million views on Douyin.
• Su Wantang recalled Zhao Chen’s nights studying at Zhengfa University and said she understood that his remarks came from his own experience.
• Zhao Chen told Su Wantang that his education had given him the confidence to face failure, and that returning to the office to think quietly with her mattered more than the attention he received.
• Su Wantang rested her hands on Zhao Chen’s shoulders, and he placed his hand over hers as they sat together in the sunlight.

Zhao Chen accepted Zhengfa University's invitation and returned to the Law School to speak with students about his years there and the path that led to his success. After the talk, he and Shen Zhiyi walked through campus together, leaving the university beneath the ginkgo trees.

• Shen Zhiyi delivered the Law School dean's invitation to Zhao Chen, who agreed to speak without a lectern or presentation and share his experiences as a student.
• Zhao Chen and Shen Zhiyi arrived at Zhengfa University on October 18, where Dean Zhou welcomed him as an alumnus.
• Dean Zhou introduced Zhao Chen to a packed lecture hall without listing his titles or achievements.
• Zhao Chen spoke informally about his journey and urged students not to let their majors limit their imagination or let imagination replace professional knowledge.
• Zhao Chen and Shen Zhiyi walked through the campus after the talk, and Shen Zhiyi reflected that what had carried him forward was what he learned in the classroom.

Walking away from Zhao Chen’s lecture at Zhengfa University, Shen Zhiyi recalled how his sharp insights first caught her attention and how his legal and economic studies shaped his investment decisions. She pledged to return with him as his partner and told him that being a Zhengfa University graduate was the identity he should be proudest of.

• Zhao Chen asked Shen Zhiyi what she had been thinking about as they walked toward the campus gates.
• Shen Zhiyi recalled Zhao Chen’s analysis of the real estate industry in a 2016 class and said his certainty first made her notice him.
• Zhao Chen and Shen Zhiyi remembered how they grew closer through their investments and his insights about Bitcoin and blockchain.
• Zhao Chen explained that his legal and economic studies taught him to assess risk before making bold investments.
• Shen Zhiyi promised to join Zhao Chen for his annual lecture at Zhengfa University as his partner and said he should be proudest of being its graduate.

Henglong's shares climbed above HK$100 as regulators accepted its compensation safeguards and investors reassessed its assets. Zhao Chen ordered an announcement about repaying the controlling shareholder's share-backed financing early, setting up another potential boost to the share price.

• Henglong's share price reached HK$102 and its market capitalization approached HK$56 billion.
• Liu Mingyu reported that the Hong Kong Stock Exchange had concluded its review with no further inquiries, provided the annual compensation was paid on time.
• Chen Xi said institutions were buying Henglong shares and explained that its investment assets and unlisted holdings supported further valuation gains.
• Zhang Qingxue reported that Bubble Mary's listing hearing had been approved, while Chen Xi described Green Energy Technology's new financing valuation.
• Zhao Chen instructed Liu Mingyu to prepare an announcement that the controlling shareholder's share-backed financing would be repaid in full ahead of schedule before year-end.

After Henglong announced that Zhao Chen would repay all pledge financing early, its shares rose above HK$110 and its market capitalization passed HK$60 billion. The Stock Exchange issued a warning but no further sanctions, closed the case, and Zhao Chen ordered the reply published in full.

• Liu Mingyu published Henglong's announcement that Zhao Chen would repay all outstanding pledge financing principal and interest early using his personal assets.
• Henglong shares climbed through HK$110 as a long-term foreign fund supported the price, and the company closed at a market capitalization above HK$60 billion.
• Liu Mingyu brought the Listing Committee's formal reply to Zhao Chen, and the committee warned Henglong and Zhao Chen but imposed no further disciplinary sanctions and closed the case.
• Chen Xi and Zhang Qingxue explained that the warning was less severe than a public censure and reflected the Stock Exchange's acceptance of Henglong's remedial measures.
• Zhao Chen instructed Liu Mingyu to publish the Stock Exchange's reply in full.

The Stock Exchange closed its case against Henglong with a warning but no censure, prompting analysts to raise their valuations and the share price to climb. With regulatory uncertainty reduced, Zhao Chen identified Bubble Mary's December 11 listing as Henglong's next major hurdle.

• Liu Mingyu uploaded the Stock Exchange's case closure announcement, and Huatai and China International Capital Corporation issued bullish reports with target prices of HK$118 and HK$122.
• Chen Xi reviewed the reports as Henglong opened at HK$111.5 and sustained buying pushed the share price toward HK$112.
• Zhao Chen and Zhang Qingxue noted that Yunnan Agriculture's pending IPO and other unlisted assets were not yet reflected in brokerage valuations.
• Morgan Stanley upgraded Henglong to buy, while UBS said the company was developing a transparency premium.
• Chen Ke asked Liu Mingyu to circulate the research reports to the board, and Zhao Chen told Su Wantang that Bubble Mary's listing was the next hurdle.
• Zhao Chen said Bubble Mary's listing was set for December 11 and could raise the fair value of Henglong's 31.2% stake from its book value of 650 million to more than HK$10 billion; Henglong closed near HK$112.