Chapter 305: Stupor and Confusion

"Chairman Su, have you heard about the internal strategic report recently released by our Huaxia Strategic Investment Fund?"
Wu Jianlin asked.
"Oh, I've heard about it. I heard the report's conclusions have garnered significant attention from several high-level leaders?"
Su Hao knew, of course, that it was an internal report that could put immense pressure on the nation's highest economic decision-making bodies.
The report's core message was singular:
The current investment returns of the sovereign wealth fund are no longer keeping pace with the strategic needs of future development!
"Yes, to the outside world, our performance is dazzling.
But for ourselves, this is undoubtedly a chasm we must overcome."
Wu Jianlin's voice was steady, yet a hint of weariness was undeniable.
"If we cannot thoroughly innovate our investment model, following the current growth curve, we will gradually lose our strategic initiative in future great power competition."
The Chinese sovereign wealth fund is indeed growing, but not fast enough.
This chilling conclusion is the harsh reality facing the Huaxia Strategic Investment Fund.
In fact, the Huaxia Strategic Investment Fund's investment team is already among the world's best.
There's a saying circulating in financial circles: "There are no ordinary people in the Huaxia Strategic Investment Fund; they're all pillars of stability."
But even these "pillars of stability" can't break through the growth ceiling of the existing model.
"We advertise that our cumulative annualized net return over the past ten years has exceeded 6%, which sounds impressive, right?
But that's just the figure after smoothing out all the peaks and troughs!
The reality is, while we've earned over 15% in some years, we also suffered losses exceeding 8% during last year's global market turmoil!"
Li Donglai added, his tone filled with deep helplessness.
"Moreover, our current achievements are based on an ideal model where the global economy is relatively stable, and we can achieve an average annual compound return of 5%."
In other words, if the external environment changes drastically, the growth of my country's sovereign wealth fund could very well stagnate, or even suffer consecutive losses. The consequences…
could wipe out decades of accumulated wealth and disrupt long-term national plans.
"We believe that now is our last chance, our last golden window of opportunity," Wu Jianlin said gravely.
"You mean, if we don't reform now, it will be too late?"
"Yes! But the problem is, so-called reform means breaking away from all the successful path dependencies of the past few decades and embracing enormous uncertainty!
In our vast and intricate system, how many people dare to sign that document and shoulder this historical responsibility?"
This is the biggest deadlock in the reform of sovereign wealth funds.
Everyone knows where the root of the problem lies, and everyone knows that a thorough reform is needed.
But no one dares to truly lead this reform.
Because everyone knows that once the steady old path is abandoned and radical new strategies are attempted, failure would shake the very foundation of the nation's economy—a responsibility no one can bear.
"This is the strength of our system, and also its burden," Li Donglai sighed.
"We can concentrate our resources to accomplish great things, but precisely because of this, every decision must be flawless."
"The desire to 'avoid mistakes' has overshadowed the pursuit of 'breakthroughs,' leaving us struggling at this critical crossroads."
The topic became incredibly heavy.
"We've tried many methods, experimented with various combinations of financial instruments, and diversified risk globally…
But these are ultimately just stopgap measures!
Without changing our fundamental investment philosophy, we will never escape the growth bottleneck, nor will we escape this fate of being swept along by global market cycles!
We will be unable to provide the most solid 'ammunition depot' for the nation's long-term development!"
Behind the growth bottleneck lies the peak of globalization's dividends and an increasingly complex geopolitical environment.
The path to supporting a soaring dragon through increasingly fierce international competition is becoming increasingly difficult.
"This is an internal analysis report we've compiled. Take a look, and you'll understand how severe the situation we face is."
Wu Jianlin handed over a thick report.
"After repeated internal discussions, we've finally reached a conclusion: Fanghuan Investment is creating an immortal achievement in financial history!"
"What we admire is not just your astonishing returns, but also the stability you maintain regardless of market cycles!
We're thinking, if we could learn your company's investment philosophy and analytical logic, wouldn't it...
potentially solve this problem at its root?"
Li Donglai nodded:
"What we're pursuing now is no longer simply increasing the long-term annualized return to a certain level.
What we yearn for is to transform the dramatic fluctuations of -8% to +15% annually into a smooth, stable, and upward-growing curve!
Even if the annualized return is only 7%! As long as it's stable!"
"We can completely reverse the passive situation and win a huge strategic buffer for the country!"
7% annualized return.
To ordinary investors, this might not seem like a remarkable expectation.
But don't forget, they manage trillions of yuan!
At this scale, to be able to escape the enormous influence of the global market and achieve stable growth is already a miracle in itself!
The problem is, they can't create this miracle themselves.
"What we want to learn is Fanghuan Investment's entire investment philosophy.
How you analyze macroeconomic trends, what models you use to predict risks, and how you make the final investment decisions...
As long as you are willing to share these valuable techniques, we can discuss any conditions!"
For Su Hao, an annualized return of 7% didn't seem like a difficult task.
However… his intuition told him that the global market was in a state of stagnation…
“Even some directional advice would be helpful!
We come with the utmost sincerity and urgency, and we humbly request Chairman Su’s guidance!”
Wu Jianlin’s voice softened, his volume low, but each word was clear and forceful, radiating sincerity.
What a pity… Su Hao sighed inwardly.
What “technique” did he have to teach others?
Fanghuan Investment never relied on complex algorithms and models to analyze data like other companies.
They made investments using a simpler, and more absolutely reliable, method.
—His intuition.
If he had to teach them anything, it would only be suggestions based on his "intuition."
"Um, if I may be so bold as to ask..."
Su Hao, who had been silent all along, finally slowly raised his head.
The two bigwigs opposite him perked up at the sight, immediately leaning forward like students awaiting guidance, listening intently.
Meeting their expectant gazes, Su Hao finally spoke slowly, posing a question that instantly stunned them:
"A sovereign wealth fund...
Can...
short it?"
"...Huh?"
In an instant, the faces of the two leaders of the nation's financial behemoths were filled with an indescribable...
dumbfounded confusion.