Golden Scale [EN]: Chapter 109

“Stop holding back, and teach me all your tricks.” Ru Yun was the only person in the world from whom Hou Longtao could humbly seek advice without feeling resentment.

“It’s simple. Whether you decide to invest or not, both are the right decision.”

“How can that be?”

“Once Honda’s scandal broke, it became a hot potato. Cautious investors wouldn’t touch it. To prevent hasty investments, IIC [International Investment Corporation] first balanced its management, with conservatives and radicals each holding half the power. I believe all the conservatives would disapprove of investing in Honda. So, if you refuse, at least half the people will have no objections, and no one will ever know if your decision was right or wrong because, without this investment, Honda will likely fail.” Ru Yun sat up, leaning against the headboard, her posture very straight, her expression serious. If not for her exposed breasts, she would look like she was formally giving instructions to a subordinate.

“That serious?”

“Yes, I think Honda asking IIC for investment is a risky move, and not a very smart one.”

Hou Longtao didn’t reply. He loved listening to his wife talk eloquently, not only to broaden his knowledge but also because it made him feel incredibly proud that he had won her heart.

“I’ve explained the reasons not to invest. Now, for the reasons to invest. Once this is clear, you should understand why I said it’s a risky move…”

“Dying but not collapsing.” Hou Longtao interrupted her.

“What?”

“Like a centipede, even dead it doesn’t fall. Honda’s foundation is very solid. If we only look at it from the company’s perspective, the scandal in the American branch won’t cause fundamental damage. So, if we can eliminate the negative impact of the scandal on investors’ psychology, our investment will yield significant profits.”

“Continue.”

“We already discussed last time that Honda doesn’t really need IIC’s money. It wants IIC’s reputation. Once the world’s largest investment company shows confidence in it, it can not only offset the negative impact of the scandal but also attract more investors. From this perspective, investment is a good thing for both IIC and Honda, a win-win situation. Why do you say it’s not smart? There are many things I don’t understand.”

Although Hou Longtao hadn’t seen as deeply, Ru Yun was quite satisfied with her lover. “Many things? Ask them one by one.”

“Why doesn’t Honda go to a bank? Our required rate of return is much higher. Famous and powerful banks can also help it rebuild investor confidence.”

“Tell me, what is the essential difference between our investment and a bank loan?”

“If the investment fails, we lose everything. If the loan fails, we can still recover part or even all of the cost from the borrower’s assets. In comparison, the risk of investment is much greater.”

“I’m not sure if there are other factors, but I think Honda wants to deliver a fatal blow this time.” Ru Yun suddenly punched forward, “Investment companies take greater risks, so in the eyes of others, the confidence shown is stronger than that of banks, and the larger the amount, the stronger the confidence.”

“You answered two of my questions at once. Then why is it a bad move?”

“In most cases, it’s not wise to put yourself in a do-or-die situation. If you can leave a way out, you should. If we decide not to invest, the impact on Honda can’t be described as merely adding insult to injury.”

“There are more than just IIC, it can find others if we don’t invest.”

“Wrong. If others don’t invest, it can still find us, but if we don’t invest, it will have nowhere else to turn. IIC is the leader in the investment industry, with the highest success rate in the world. Except for projects eliminated due to excessive risk, most projects we abandon are avoided by others, not because they fear offending us, but because they trust our strong and effective AnalyticTools.”

“Honda Motor Company ranks thirty-eighth in the ‘World’s Top 500.’ It must not be just for show, and should be full of talent. How could it make such a low-level mistake?” Hou Longtao didn’t disbelieve his wife’s deduction, but he still needed to resolve his doubts.

“Given Honda’s current situation, the probability of being accepted for investment is 50% no matter who they ask, except for IIC.”

“Why?”

“I think they considered it from four aspects. First, IIC is the only large investment company in the world that has its Asia-Pacific headquarters in China and has appointed a Chinese person as the chief agent. You may not like what I’m going to say next, but in the eyes of some foreigners, Chinese people are the easiest to bribe, especially since the Japanese had too much success in this area more than sixty years ago.”

“Hmm.” Hou Longtao sat there, seething, his teeth grinding. The enemy was hateful, but the uncompetitive “Chinese” were even more hateful.

“Second, I think Fang Jie played a significant role in Honda’s decision. He probably explained my special relationship with him to Honda’s senior management, and may have even boasted that reconciling with me was a sure thing. With this personal connection, the possibility of investment increased by at least twenty-five percentage points. That’s why they didn’t apply to IIC’s American headquarters in the name of Honda USA, but came to us.”

“I knew he was a dumbass, and you still wouldn’t let me deal with him. He thinks too highly of himself.”

“Not really, haven’t I been handling things officially with you?”

“That’s only a few cents. I know, I know, it’s not about the amount, it’s a matter of principle,” Hou Longtao quickly interrupted Ru Yun, fearing she would refute him. “But I mean, he thought he could get you back.”

“It’s not impossible,” Ru Yun reached out, rubbing the man’s cheek with the back of her hand. “Wasn’t I won over by you, you bastard?”

“Aren’t you insulting me?” Hou Longtao brought his wife’s hand to his lips, kissing it gently, but his expression was quite serious. “We are dragons among men, a match made in heaven. Don’t compare me to that rat.”

“Hehe, right, right, you are a dragon seed, don’t be angry.”

“How could I be angry?” Hou Longtao put the woman’s slender fingers into his mouth, sucking them carefully. “Continue, what’s the third point?”

“The third is the issue of the impact on investor confidence, which we just discussed. IIC is the most effective in this regard. The fourth is the time issue. Maybe Honda really can’t afford to delay. Seven billion, any investment company needs to do thorough due diligence. Time only allows them to take a gamble.”

“Can’t they apply to multiple companies at the same time?”

“It’s not impossible, but how can they ensure that the investment companies don’t know? Honda’s project isn’t a hot commodity that everyone is bidding on. ‘One guarantee, multiple investments’ not only seems insincere but may also be seen as a distrust of the investment company’s capabilities, which is not a good thing.”

“The way you explain it, I don’t think Honda’s decision is a bad move. In fact, it’s their only choice.” Hou Longtao seemed even more confused.

“First of all, in my opinion, the first two aspects are the main factors that led to Honda’s decision. They used ‘commonality’ instead of ‘individuality.’ Secondly, they underestimated the historical factors between China and Japan. Since investing or not investing are both correct decisions, letting a Chinese person make the decision, I think most people can’t resist the temptation to personally destroy a top Japanese company.”

“Sigh,” Hou Longtao shook his head. “You’ve probably been with me for too long. Not all Chinese people are hostile to Japan. Haven’t you seen so many famous scholars loudly calling for Chinese people to abandon narrow nationalism? Haven’t you seen so many intellectuals advocating rational patriotism? Haven’t you seen so many young men and women wishing their mothers were pregnant because they were impregnated by Japanese men?”

“Relax, relax,” Ru Yun gently rubbed the man’s chest with her palm. “Don’t get so excited.”

“Hoo…” Hou Longtao kissed his wife’s forehead. “You know me, national and family hatred, irreconcilable.”

“What about Xiang?”

“I give people a chance to abandon darkness and turn to the light.”

“Hmph, hmph, let’s get back to the main topic. If I give you this case, what would your decision be?”

“Of course…”

“Wait,” Ru Yun pressed a finger against the man’s lips, stopping him from continuing. “No need to consider? You have a decision now?”

“I do.”

“Before you say it, I want you to know a few facts, or rather, a few of my deductions and thoughts. Do you want to hear them?”

“Tell me.”

“After Honda’s problem is exposed, its stock will plummet in the short term. Then, once the news of IIC considering investing in it comes out, the stock will immediately stop falling, but it won’t rebound. Investors will take a wait-and-see attitude, waiting for the next development. If IIC invests, the stock will rise. If it doesn’t invest, the stock will fall again, until it’s delisted, and then it will go bankrupt.”

“That’s not hard to understand.”

“Who benefits from Honda’s bankruptcy? Its factories, equipment, and technology are there, they won’t disappear. Its workers, technicians, middle management, and some senior management won’t lose their jobs. The day Honda collapses, it will be taken over by other large Japanese auto companies the next day. Toyota, Mitsubishi, Mazda, Suzuki, and so on are the most direct beneficiaries. They can not only enrich their teams but also increase their competitiveness because they have one less powerful competitor. Their share of the world auto market will increase significantly. Honda’s demise will not only have no negative impact on the Japanese economy but is very likely to promote it.”

“What about boycotting Japanese goods…”

“This is different from boycotting Japanese goods. Boycotting Japanese goods is aimed at all Japanese products. You won’t buy a Fuji digital camera, and you won’t buy an Olympus one either, right? It treats Japanese products as a whole, weakening their economic interests in China as a whole. But this time, the focus on Honda is on an individual company, just like you only drink Coca-Cola and not Pepsi. If everyone was like you, Pepsi would be miserable, but the American economy wouldn’t suffer any losses.”

“You mean agree…”

“I’m not finished yet,” Ru Yun tapped the man’s nose. “Should you talk about morality when doing business?”

“Morality?” Hou Longtao found the word the woman used a little difficult to understand.

“Business ethics.”

“The business world is like a battlefield, profit represents everything, but I have my own standards. Whether it’s legal or not, as long as it’s not harmful, I’ll do anything. Like Mao Zhengyi, he has exceeded the boundaries of morality, I won’t do that. Like IBM, selling machines to Nazi Germany for the genocide of Jews, even if it’s legal, I won’t do it.”

“What about exploiting legal loopholes?”

“If it’s a loophole, then it’s not illegal. Again, as long as it’s not harmful, it meets my business ethical standard.”

“Sometimes, some agreements are beneficial to both parties, and the benefits outweigh the disadvantages for others, and can even benefit future generations, but because of specific conditions, because of the identities of the parties involved, these agreements are illegal. If there are legal loopholes to exploit at this time, do you think they should be exploited?”

“Why not? The more loopholes, the better.” Hou Longtao was sure that his wife was guiding him, but he was still a little unclear.

“Besides your relatives, how many people can you completely trust?”

“Six brothers, four close friends, ten wives, that’s twenty.” Hou Longtao believed that his greatest achievement to date was this.

“There’s one thing I hope you understand, the human heart is the most unpredictable thing. Complete trust cannot replace self-protection.”

“What exactly are you trying to tell me?”

“I want you to figure this out yourself. Go to Tokyo on October 27th, Fang Jie will discuss the specific details with you.”

“Okay,” Hou Longtao knew this was a test from his wife, and he could put it aside for now. “I’ll give you a formal plan as soon as possible.”

“Actually, the reason I want you to go to Japan is also because of Yu Qian.” Once the official business was over, Ru Yun’s serious expression immediately disappeared.

“Yu Qian?” Hou Longtao had already turned to pin the woman down, but stopped abruptly when he heard her words.

“Although Feng Yun has suppressed her on the surface, her reaction is too abnormal.”

“Yu Qian’s personality is very strange, maybe she really has gotten over me.” Hou Longtao himself didn’t want this to be true; he still didn’t know how to deal with Yu Qian’s matter.

“I hope so, but…” Ru Yun shook her head. “I always feel that she’s being too nice this time. Anyway, there’s no harm in you leaving Beijing for a while. In case she wants to take revenge on you, give her a little time, maybe she can cool down a little bit.”

“No matter what, you’re doing it for my own good,” Hou Longtao put his arm around his wife’s shoulder, stroking her cheek with his left hand, kissing her slowly from her forehead down, past her high nose, and holding her delicate lips. “Chang’e [Goddess of the Moon], one day, I will make you proud of me.”

Ru Yun chewed her mouth outward, her lips constantly touching her lover’s, occasionally sticking out her tongue and twining with his tongue outside her mouth for a few seconds, her right hand on his shoulder, her left hand in his hair. “You already make me very proud, husband…”

Hou Longtao pressed his upper body down, and the woman’s kiss gradually became more intense. He reached into the quilt with his left hand, gently rubbing her soft pubic hair.

“Hmm…” Ru Yun turned her head, her arms around the man’s neck, nuzzling against his ear, her right leg raised and straddling his thigh, hooking him between her legs. “Husband, husband… I want…”

“Are you okay?”

“It’s worth dying for…”

“I’ll make you feel like you’re dying and living.” Hou Longtao grabbed the beauty’s breasts, rolled into her crotch, and knelt with his legs splitting her legs apart.

Ru Yun reached out and pulled the quilt up, covering the two of them tightly.

The big bed began to shake violently, and the lewd sounds of male and female intercourse came from the bulging “tent,” but they sounded a little muffled because of the quilt.

It was completely dark in the quilt. Hou Longtao and Ru Yun could only feel each other with their bodies. Because the air couldn’t circulate freely, it was a little stuffy, but precisely to dispel this stuffiness, their mutual intercourse became even more violent…

At the same time, in a building next door, Fang Jie was on the phone with the Japanese side. “President, the day before yesterday, after I formally submitted the application to IIC, they gave me a reply. Xu Ru Yun will not be going to Japan. Her deputy will be her full representative, responsible for negotiating with us.”

“What!? Xu Ru Yun isn’t coming!? Why didn’t you report it immediately!? You guaranteed me! Baga [Fool]!” A violent voice rang out from the other end of the phone.

“President, please calm down. Xu Ru Yun is not easy to deal with, but I have a major weakness of that deputy in my grasp. With him in charge, the possibility of us getting the investment has greatly increased, even to the point of being a sure thing. I spent a whole day and night without sleep, formulating a relatively mature plan, which is why I am only reporting to you now.”

“Okay, tell me now.”

“Won’t it affect the president’s rest?”

“Baga! What time is it now!”

“Hai! Hai [Yes! Yes!]!” Fang Jie explained his plan…

On Friday afternoon, Hou Longtao had a meeting with Fang Jie in his office.

“Mr. Fang, I think you already know that whether Honda can get the investment this time is entirely in my hands. Tell me your thoughts.” Hou Longtao sat smugly in his large leather swivel chair. He usually wouldn’t say such things or make such expressions in business situations, but facing this man, he couldn’t help but want to “step” on him a couple of times.

“Congratulations to Manager Hou for gaining such trust. I also believe that Manager Hou has the ability to be competent and make the right decision.”

“Hmph.” Hou Longtao was disappointed. Since the other party wouldn’t “fight” with him, he wouldn’t dwell on personal grudges. “Mr. Fang, please give me an introduction.”

“I have already submitted all relevant documents, financial statements, and project plans to IIC.”

“I don’t care about these. The analysts below will naturally study them. I want to know the itinerary after arriving in Japan.” Hou Longtao lit a cigarette but didn’t ask if the other party wanted one.

“On October 27th, I will accompany you on a JAL [Japan Airlines] large charter flight to Tokyo. Your entourage will take ordinary JAL flights on the same day.” Fang Jie stopped there, waiting for the other party to ask questions. Unexpectedly, Hou Longtao didn’t think there was anything wrong with this arrangement. His decision was related to Honda’s life and death, so being valued was expected. “Continue.”

“Oh, oh,” Fang Jie secretly curled his lips. “I will take you directly from the airport to the hotel to rest. The next day, you will meet with my company’s president and shareholders and visit Honda headquarters. There will also be some other activities, visiting factories, laboratories, and the Honda team. Then there will be several consecutive days of presentations. My company’s CFO [Chief Financial Officer] and technical designers will successively introduce my company’s financial situation, investment projects, and market prospects. Finally, we will enter the substantive negotiation stage. All the schedules and materials are ready,” he placed a briefcase he brought on the desk. “They are all here, please review them in advance, Manager Hou.”

Hou Longtao opened the briefcase and saw two neat stacks of 8.5×11 inch photocopied paper, as well as several CDs. Facing so many documents, his head was spinning. Fortunately, Ru Yun was planning everything; otherwise, he would have to look at them for the rest of his life…

Hou Longtao was a man with a brain, and he never followed the rules. After a weekend, he finally figured out Ru Yun’s question.

Dongxing Group was not listed, and all the shares were held by a few people. It belonged to a Closely Held Corporation. Hou Longtao’s six brothers each owned 5% of the shares, Liu Nan’s uncle Gu Quanzhi had 5%, Tian Donghua used coercive means to occupy 1%, and the remaining 64% were all in his own hands.

As soon as he got to work on Monday, Hou Longtao notified the law firm to draft an agreement to transfer 8% of his “Dongxing” shares to He Liping’s name, leaving the remaining 56% to be divided equally among Xue Nuo, Chen Qian, Chen Xi, Situ Qingying, Ren Jingyao, Xiang Nianxiu, Li Angyang, and Zuo Wei, so that after the agreement took effect, He Liping would become the chairman of “Dongxing,” and he himself, from a legal point of view, would have nothing to do with “Dongxing.”

All afternoon, Hou Longtao and Tian Donghua were locked in the conference room of the Guangda Building, discussing the next development plan of “Dongxing.” They hadn’t finished talking until after five o’clock, but because there was something more important to do in the evening, he had to suspend the meeting and continue tomorrow.

As soon as Hou Longtao left, Tian Donghua received a call from Yu Qian.

“What meeting were you having just now? You didn’t turn on your phone, and you didn’t let the secretary transfer calls?” The girl complained coquettishly as soon as she came on.

“I was having a meeting with President Hou. Yu Qian, about the matter you told me a few days ago… are you sure?”

“What’s there to be sure about?”

“Isn’t it a bit too much?”

“Too much? He never loved me, he deceived my feelings, I want to take revenge on him!”

“What about Feng Yun? Can she agree?”

“What can she do when it’s a fait accompli? I’m her niece, can she kill me?”

“But you are after all…”

“Stop talking so much nonsense, help me if you want, otherwise forget it!”

“Of course I’ll help you.”

“That’s fine,” Yu Qian’s tone immediately returned to being娇 [Jiao – delicate, charming] and 嗲 [Dia – affectedly sweet]. “Let’s have dinner together, seven o’clock, the usual place.”

“Okay.” Tian Donghua put down the phone, pacing back and forth in the room, then stood in front of the window for a while, biting the end of his right index finger, pondering for a while, picked up the phone and dialed Long’s cell phone. “Hello, Long, this is Tian Donghua.”

“Brother Hua? What’s up?”

“Do you have any plans tonight?”

“No.”

“Come out for dinner together.”

“Who’s coming?”

“Just me and Yu Qian.”

“Yu Qian?”

“Yeah, after dinner, let’s find a bar or karaoke or something to have fun.”

“Okay, where?”

“Six thirty, below ‘Guangda’, come pick me up, I didn’t drive today.” Tian Donghua said, throwing his car keys on the desk…(Golden Carp is not a thing in the pond) [idiom meaning someone is out of their depth]