Chapter Summaries

As Forbes prepared to publish its 2019 China Rich List, Zhao Chen learned its editors estimated his wealth at $15–16 billion, placing him around fifteenth. He signed an asset confirmation but said he cared about Henglong and Era Vanguard’s long-term value, leaving Forbes to assess him using public filings.

• Liu Mingyu told Zhao Chen that Forbes estimated his wealth at $15–16 billion, largely based on Era Vanguard’s holdings and Henglong’s stakes, and expected him to rank fifteenth.
• Zhang Qingxue questioned Forbes’s valuation because it did not fully account for pledged shares or Tesla leverage, while Liu Mingyu explained the editors’ methodology.
• Liu Mingyu presented Forbes’s asset confirmation form, and Zhao Chen signed it without changing the data, telling Forbes that rankings meant nothing to him compared with long-term value.
• Chen Xi said the ranking could help Henglong’s partners and investors, but Zhao Chen insisted Henglong’s credibility did not need Forbes’s endorsement.
• Lin Shicheng told Zhao Chen that the SEC had directed Forbes to rely only on publicly disclosed filings, while short sellers awaited the list’s release.

The Forbes China Rich List ranked Zhao Chen fifteenth with an estimated fortune of US$16 billion, drawing intense attention to his age and investment record. At Zhengfa University, the dean arranged to name a scholarship after Zhao Chen in recognition of his annual RMB5 million donation for ten years.

• Forbes China released its rich list, placing Zhao Chen fifteenth with US$16 billion at age 23.
• Bloomberg, Reuters, CNBC, and Chinese financial media reported Zhao Chen’s ranking and examined how his investments had built his fortune.
• Investors on Snowball and Futu compared Zhao Chen’s purchases of Wuliangye and Tesla during market downturns.
• Zhengfa University alumni shared an old photo of Zhao Chen, while the dean reflected on Zhao Chen’s recent campus visit.
• The dean instructed the office director to name the university’s scholarship the Zhao Chen Law Scholarship after Zhao Chen agreed to donate RMB5 million annually for ten years.

After Forbes ranked Zhao Chen among the world’s wealthiest people, he refused interviews and issued a brief statement saying rankings meant nothing to him and that he cared about Henglong and Era Vanguard’s long-term value. That evening, he told Su Wantang that his wealth had cost him the chance to live as an ordinary person, a loss he accepted as his own choice.

• Liu Mingyu prepared security measures at Henglong Group’s headquarters while reporters gathered outside to seek Zhao Chen’s response to his Forbes ranking.
• Zhao Chen told Chen Xi to issue a statement emphasizing long-term value and directing that he would make no further public responses to wealth rankings.
• The statement spread through financial media and sparked debate on Weibo, while Zhao Chen stayed off social media.
• Liu Mingyu instructed staff to refer all media inquiries to the official statement as reporters left the headquarters.
• Zhao Chen told Su Wantang that wealth was a result of sound decisions and that he had willingly given up the rights of an ordinary person.

Zhao Chen convened Henglong Group’s board to revise its investment decision-making rules and distribute major investment authority to a new committee. The amendments passed unanimously, establishing checks, documentation, and restrictions on committee members’ ties to investee companies.

• Zhao Chen opened the board meeting and proposed transferring authority over investments exceeding 500 million RMB per transaction from the Chairman’s Office to a seven-member Investment Decision Committee.
• Song Zhongping requested that committee members submit written opinions on major investment proposals, and Zhao Chen agreed to add the requirement.
• Xu Yong and Sun Zhengping advocated equal voting rights for independent members, and Zhao Chen approved the change.
• Wu Hongyuan proposed a secretariat to verify investment data, and Zhao Chen appointed Chen Qiming its first secretary-general.
• Shen Jue proposed barring committee members from paid positions at Henglong investee companies during their terms and for a period after leaving office, and Zhao Chen agreed to include the restriction.
• Liu Mingyu read out the revised provisions, and the board approved them unanimously.

At Henglong’s board meeting, Shen Jue questioned whether Zhao Chen would truly accept the Investment Decision Committee’s authority and whether the group could withstand another short-selling attack. Zhao Chen pledged to follow the committee’s decisions and outlined institutional defenses, leaving Shen satisfied as the meeting adjourned.

• Shen Jue asked whether Zhao Chen was prepared to let Henglong operate independently of his judgment and accept the Investment Decision Committee rejecting his proposals.
• Zhao Chen said he would not privately pressure committee members or reintroduce rejected proposals, because Henglong needed to function without him.
• Shen Jue asked whether Henglong could defend itself against another short-selling attack without relying on Zhao Chen’s personal assets.
• Zhao Chen described Henglong Capital’s liquidity reserves and potential collateralized credit, while Zhang Qingxue detailed negotiations for a $300–400 million standby credit line requiring independent committee authorization.
• Shen Jue accepted the safeguards, and Liu Mingyu adjourned the meeting as the directors prepared to leave.

Shen Zhiyi chose a senior adviser role in Henglong’s Legal Department over a lucrative offer from a top law firm, insisting her position rest on her professional abilities rather than her relationship with Zhao Chen. Zhao Chen approved her appointment and assigned her compliance work, leaving her set to begin the next day.

• Zhao Chen declined media interview requests and replied to Shen Zhiyi that they could discuss her future at home that evening.
• Shen Zhiyi showed Zhao Chen the law firm’s blank-salary contract and Henglong’s defined job description, explaining why she chose Henglong.
• Zhao Chen recalled Shen Zhiyi’s sharp advocacy in their university moot court and told her he trusted her to identify legal red lines.
• Zhao Chen signed Shen Zhiyi’s job description, directed Zhang Qingxue to process her contract, and assigned her work on disclosures and Bubble Mary’s listing documents.
• Shen Zhiyi said she would submit her prediction about stricter share-reduction rules and prepared to start work the next day.
• Zhao Chen assured Shen Zhiyi that she had earned the job on her own merits, and she left for bed.

Shen Zhiyi began work as Senior Counsel at Henglong and proved her ability during her first project, reviewing Bubble Mary's listing documents. Su Wantang welcomed her into Henglong’s work, and Shen affirmed that she wanted to be Zhao Chen’s comrade in arms and become Henglong’s Legal Director.

• Zhang Qingxue prepared Shen Zhiyi’s onboarding documents and assigned her to review Bubble Mary’s listing prospectus.
• Shen Zhiyi challenged a proposed change to Mololoy’s IP licensing revenue disclosures, prompting the underwriters’ lawyer to supplement his legal opinion.
• Zhang Qingxue praised Shen Zhiyi’s work and assigned her to follow up on a cross-border guarantee document for Nvidia.
• Su Wantang prepared the foundation’s first-phase charitable project plan, with a budget of two hundred million RMB, for launch that afternoon.
• Su Wantang told Shen Zhiyi she belonged at Henglong, and Shen Zhiyi said she wanted to be Zhao Chen’s comrade in arms rather than someone he protected.

Su Wantang asked Zhao Chen to let her resign as his assistant so she could devote herself to the Henglong Charity Foundation. Zhao Chen supported her transition, approved the foundation’s first projects, and committed to increasing its funding after the first phase passed inspection.

• Su Wantang told Zhao Chen she wanted to leave her assistant position and focus on the Henglong Charity Foundation.
• Su Wantang recalled how she had stood by Zhao Chen through Henglong’s growth and clarified that she was not leaving the company, but choosing her own path.
• Zhao Chen asked what the foundation needed, and Su Wantang said it needed time to carry out its work properly.
• Su Wantang presented the foundation’s final project draft, which aimed to show children in rural western China how solar panels generated electricity.
• Zhao Chen approved the draft and instructed that funding rise to five hundred million the following year if the first phase passed inspection.
• Su Wantang left Zhao Chen’s office, saying she did not regret either her time at his side or her decision to follow her own path.

Chen Xi reported Henglong Capital’s strong year-end gains on five A-share holdings, bringing cumulative unrealized gains above 11 billion yuan and Henglong’s net assets close to 21 billion. Zhao Chen approved continuing to hold the stocks and instructed Liu Mingyu to distribute the annual report to the directors before the year-end board meeting.

• Chen Xi presented Zhao Chen with the verified year-end figures for Henglong Capital’s five A-share holdings, which gained about 8.3 billion yuan in unrealized value during the year.
• Chen Xi explained that Henglong’s net assets had risen to nearly 21 billion yuan, driven mainly by investment gains rather than real estate profits.
• Zhao Chen signed off on the report and directed Henglong Capital to continue holding its five stocks.
• Chen Xi advised Zhao Chen that new energy shares could be repriced, baijiu could keep recovering, and consumer healthcare holdings retained their growth potential.
• Zhao Chen approved sending the draft annual report to the directors and told Chen Xi to have Liu Mingyu distribute copies before the year-end board meeting.

Zhao Chen reviewed Henglong Capital’s successful investment in Bubble Mart after its Hong Kong listing and reaffirmed that Henglong would remain a long-term shareholder. Wang An’s personal letter thanked him for supporting the company, leaving Bubble Mart poised to expand its IP business with Henglong at its side.

• Zhao Chen reviewed Bubble Mart’s valuation report and noted that Henglong’s 31.2% stake was worth about RMB9.2 billion, roughly fourteen times its original investment.
• Zhao Chen read Wang An’s update that Mololoy had met its annual sales target early and that new product lines were in development.
• Zhao Chen wrote that Bubble Mart’s future lay in building an IP value chain and that Henglong would remain patient.
• Zhang Qingxue delivered Wang An’s personal letter thanking Zhao Chen for his support and confirming that Bubble Mart had gone public.
• Zhang Qingxue explained the post-listing lockup and Wang An’s wish that Henglong remain the second-largest shareholder.
• Zhao Chen promised Henglong would not sell any shares and would support Bubble Mart as it expanded its IPs and global licensing.

Zhao Chen reviewed Green Energy Technology’s full-capacity production and Tesla supplier confirmation, then advised Zhou Bingcheng to focus on scaling reliable deliveries. He also noted Yunnan Agriculture Group’s planned listing and left its investment to grow on its own.

• Zhao Chen reviewed Green Energy Technology’s report, which valued Henglong’s 32% stake at about RMB 11 billion after the company’s material entered Tesla’s Megapack supplier directory.
• Zhao Chen called Zhou Bingcheng, congratulated him on the full-capacity production line, and told him that Dening Times and Bidiya would approach the company themselves.
• Zhou Bingcheng recalled watching the reactors run at full capacity and said he now understood Zhao Chen’s belief that real technology would be properly valued.
• Zhao Chen warned Zhou Bingcheng that the next challenge was ramping up capacity and maintaining yield and delivery reliability as Tesla orders grew.
• Zhao Chen reviewed Yunnan Agriculture Group’s expected listing and projected stake value, wrote “Let it grow on its own,” and sent the report to Chen Qiming for filing.

At Henglong Group’s year-end board meeting, Shen Jue reviewed the company’s shift from real estate to investment and the institutions built to govern it. The meeting ended with Zhao Chen thanking her, and Shen Jue paused at the door after saying she had only done what the second-largest shareholder should do.

• Zhao Chen opened the meeting by outlining the year-end review and inviting the directors to discuss the company’s outlook.
• Song Zhongping reported that Henglong had completed its exit from real estate, and Chen Wei presented the final report and described her new responsibilities.
• Shen Jue reviewed Henglong’s recovery and argued that its most important transformation was moving from Zhao Chen-driven decisions to institution-driven governance.
• Zhao Chen credited the board and staff for the company’s progress and thanked Shen Jue for reinforcing institutional safeguards.
• After the meeting, Shen Jue told Zhao Chen she had only done what the second-largest shareholder should do, then paused near the door.

Zhao Chen explained that Henglong's true net assets were close to RMB 45 billion after accounting for three major hidden assets, though the market had not fully priced them in. He left the meeting confident that the investments would continue to prove their value as the company patiently nurtured them.

• Zhao Chen reviewed Henglong's book net assets of approximately RMB 21 billion and explained that its A-share holdings held about RMB 11 billion in unrealized gains already reflected in the books.
• Zhao Chen listed hidden assets including Henglong's stakes in Bubble Mary and Green Energy Technology, plus its 20% stake in Yunnan Agriculture Group, whose combined unrecorded value exceeded RMB 23 billion.
• Zhao Chen estimated Henglong's true net assets at nearly RMB 45 billion and said upcoming market catalysts could lift its share price beyond its current valuation.
• Zhao Chen said Henglong's investments had grown through patience rather than speculation and urged the board to keep nurturing them.
• Wu Hongyuan shared a Buffett quote about planting trees, and Zhao Chen thanked the board members for helping build Henglong.
• Zhao Chen stayed behind after the meeting, reread the quote, and left the darkened room.

Zhao Chen set out a financial defense plan for Henglong, ordering its share-backed loans cleared, a dedicated cash reserve established, and a standby credit facility arranged. The banks could provide roughly RMB 3 billion to RMB 4 billion in emergency credit using Henglong Capital’s investments, while Zhao Chen’s personal Henglong shares would remain untouched.

• Chen Qiming reported that Henglong had about RMB 700 million remaining across four share-backed loans, and Zhao Chen ordered all of them repaid before the end of the year.
• Zhao Chen directed Henglong Capital to keep at least RMB 1.5 billion in immediately available cash, segregated from the group’s operating funds.
• Zhang Qingxue outlined a standby credit facility backed by Henglong Capital’s stakes in Bubble Mary and Green Energy Technology, estimated at RMB 3 billion to RMB 4 billion.
• Zhang Qingxue confirmed that the facility would not require Zhao Chen’s personal shares or a major shareholder guarantee, and Zhao Chen called it a permanent defense against future short-selling attacks.

Zhao Chen and Chen Xi reviewed Henglong Capital’s investment strategy, assigning roles and plans to its six existing sectors while identifying emerging fields for future research. Chen Xi agreed to prepare research frameworks for humanoid robots, controlled nuclear fusion, and brain-computer interfaces in the first quarter of next year.

• Zhao Chen explained that Henglong’s six holdings shared a strategy of entering promising industries during downturns, and Chen Xi said the approach depended on identifying valuable sectors in advance.
• Zhao Chen outlined plans to hold Bidiya, Tongce Medical, Pianzaihuang, Fenjiu, Wuliangye, and Bubble Mary, support Green Energy Technology’s growth, and reassess Yunnan Agriculture after its listing.
• Zhao Chen identified Bidiya, Green Energy Technology, and Bubble Mary as Henglong’s main growth engines, with its healthcare and baijiu holdings serving as stabilizers and Yunnan Agriculture as a catalyst.
• Zhao Chen tasked Chen Xi with researching humanoid robots, controlled nuclear fusion, and brain-computer interfaces without investing in them yet.
• Chen Xi promised to prepare research frameworks for the three sectors in the first quarter of next year and discuss which deserved deeper due diligence.

Chen Wei completed the final handover and closeout report for Henglong Real Estate after the company sold its last homes and withdrew from the sector. Zhao Chen assigned her new responsibilities, and he described Henglong Real Estate as graduating rather than closing its doors.

• Chen Wei inventoried the empty Haoyu · Riverbank Garden sales office and sent Zhao Chen a photo captioned “All units now sold.”
• Chen Wei handed the remaining sales office assets to the property manager and confirmed the final key transfer and security withdrawal arrangements.
• Chen Wei delivered Zhao Chen a report documenting Henglong Real Estate’s exit, including seven sold-out projects and no handover disputes, unfinished developments, or unpaid construction wages.
• Zhao Chen told Chen Wei she would manage existing group assets and coordinate engineering work for the Philanthropic Foundation’s campus renovations.
• Chen Wei reaffirmed Henglong’s commitment to quality, and Zhao Chen wrote that Henglong Real Estate was “graduating.”

Zhang Qingxue briefed Zhao Chen on proposed stricter A-share reduction rules and presented a contingency plan for Henglong Capital’s holdings. Zhao approved the plan and ordered the Legal Department to develop operational measures within three months.

• Zhang Qingxue brought Zhao Chen a draft plan after attending a regulatory symposium on proposed share reduction rules.
• She explained how advance disclosures and tighter sale limits could affect Henglong’s five A-share positions, especially those near the 5% threshold.
• Zhang Qingxue proposed reallocating holdings among SPVs, setting reduction priorities, and arranging counterparties for block trades and negotiated transfers.
• Zhao Chen approved the plan and assigned the Legal Department to lead work with help from the Investment Department.
• Zhang Qingxue told Zhao Chen that Henglong’s institutional safeguards would prevent a repeat of his earlier need to pledge shares during a margin call.

Zhao Chen received Lin Shicheng’s confirmation that the SEC had closed and sealed all cases involving Era Vanguard, clearing a major regulatory obstacle. He left the matter settled and invited Shen Zhiyi to dinner.

• Lin Shicheng emailed Zhao Chen the SEC’s confirmation that all reviews of Era Vanguard were closed and archived without penalties or restrictions.
• Zhao Chen forwarded the letter to Zhang Qingxue and Chen Xi, then declined Zhang Qingxue’s suggestion to announce it under Henglong Group’s name.
• Lin Shicheng told Zhao Chen that the sealed SEC record could also benefit any future HSR review by the FTC.
• Zhao Chen thanked Lin Shicheng for his work and reflected on the end of the regulatory scrutiny and short sellers’ attacks.
• Zhao Chen messaged Shen Zhiyi that the cases were settled and invited her to dinner.

Su Wantang and Shen Zhiyi completed year-end reviews showing how they had grown into independent leaders in their respective roles. Their work pointed toward expanded responsibilities next year, as Su proposed increasing the foundation’s budget and Shen took charge of a legal follow-up.

• Su Wantang presented the foundation’s annual report, documenting its programs in 23 counties and 37 schools, 180 million RMB in spending, and a 100 percent implementation rate.
• Su told Zhao Chen she planned to expand the foundation’s work by bringing new energy education into rural school materials, and described how children at a school in Bijie had made their own Energy Corner.
• Shen Zhiyi submitted her detailed legal work report, and Zhang Qingxue assigned her independent responsibility for the follow-up on Bubble Mary’s cornerstone investor lock-up clauses.
• Su and Shen met by the elevators and walked out of Henglong Headquarters together through the winter rain.
• Zhao received Su’s proposal to raise next year’s budget to 500 million RMB and Shen’s message that she had completed her review and would not join him for dinner.

Henglong Group announced that all shares held by Zhao Chen had been released from pledge and its entity-level interest-bearing debt had been repaid. Zhao Chen and Shen Zhiyi reflected on the crisis that nearly cost him control, as they walked along the river.

• Liu Mingyu announced that Zhao Chen's Henglong shares were free of pledges and the group had no entity-level financing debt.
• Chen Qiming delivered confirmation letters from four investment banks showing that all pledged financing had been repaid and the share pledges canceled.
• Liu Mingyu told Zhao Chen that Henglong's share price had risen steadily after the announcement and explained the company's approved response to media questions.
• Zhao Chen told Shen Zhiyi that Henglong would no longer face the risk of losing control through pledged shares.
• Shen Zhiyi showed Zhao Chen the hand-drawn chart on which she had circled the Tesla liquidation threshold of 178 and marked the price's recovery.
• Zhao Chen returned the chart to Shen Zhiyi, and they continued walking together along the river.