[LeTV's response to recent false rumors: On September 9 (Friday), LeTV's A-share listed company 'LeTV' suffered a short-term decline in its stock price amid the overall sluggish market performance, triggering some unfounded rumors in the market.

In response to irresponsible and malicious smears such as LeTV's financial fraud, tight capital chain, and founders cashing out, the company has launched an in-depth investigation and collected evidence. Legal measures will be taken to protect the rights and interests of the company and investors - LeTV, September 9. 】

Early Saturday morning, LeTV's official Weibo account released a clarification, along with a statement with the official seal of a law firm, which I don't know what it is.

He Chuan crooked his eyes and enlarged the picture to look at it for a long time, then asked in confusion: "Is this a lawyer's letter? The content only has the client but no recipient. Who is LeTV going to send it to?"

"Yes, yes, boss. You see, the main players are some self-media and individuals who spread rumors." Zhou Wei, a young man with half-dark skin, joined in the fun.

He Chuan sipped his coffee and suddenly realized: "Oh, that would require sending many copies. Let's not talk about it. If anyone of you spreads rumors and slanders LeEco online, please delete it immediately to avoid risks. Be careful about lawyer letters. Email fees are payable upon delivery."

"Can what the analyst said be considered a rumor?" Zhou Weiyi said sternly.

Then came some incomprehensible words, such as market analysis and positive bearishness, which made several colleagues burst into laughter, and the office was filled with a happy atmosphere...

What a coward! Yesterday, Mr. Xie specifically named and accused LeEco of using the goodwill of Grapefruit Capital for gambling, causing LeEco's stock price to plummet 7%. As a result, he spent a whole day holding back and came up with a fake statement without even a positive response.

The effect of a lawyer's letter is like a black man speaking in a motorcycle accent: Don't look at me as a nice guy, if you step on my landmine I will be very difficult to deal with, I am angry, I am really angry.

In the financial industry, judging people by their abilities is a basic traditional skill. For top institutions like Grapefruit Capital, the weaker the opponent, the more excited they are.

There has never been a saying that if someone respects me one foot, I will respect them ten feet. If you take the initiative to retreat one foot, I will try to make you retreat three feet. That's how I show my professionalism!

[In May, I said that Xiaomi was anxious about LeTV making mobile phones, and now another one has jumped out, Meizu is also anxious. God is watching what we do, and the more anxious they are, the more it shows that LeTV is doing the right thing! Thank you friends for your concern and competitors for your attention. LeTV will continue to move forward unswervingly until it reaches the end. ]

A screenshot of WeChat Moments popped up in the gossip group, in which Jia Yueting reposted LeTV's Weibo statement with a caption.

Zhang Zetian kept Xie Jingxing's teachings in mind, got along well with the entire venture capital business department of Xiyou, and often provided first-hand information on the latest cutting-edge gossip, making her very popular.

"Blurring public attention away from the main point of view."

He Chuan did not eat melons heartlessly as usual. He keenly grasped the key points and searched Baidu for the past of Jia Yueting and Xiaomi's quarrel, and briefly read the ten most searched news on the homepage one by one.

Executives from both sides cursed each other by name over competition in the mobile phone and TV businesses.

However, Jia Yueting himself only mentioned "certain friendly competitors" at an offline investor meeting. Now he is looking through the accounts and dragging Xiaomi into the water, trying to muddy the waters by defining Mr. Xie's public remarks as competition in the mobile phone business.

It's true, it seems like a small effort to achieve a great result. Otherwise, it is reasonable to speculate that LeTV must have some serious operational problems.

It seems soft but firm and decent, but in fact it avoids the key points everywhere. It makes sense that Boss Jia can fool so many believers into suffocating for his dream. He is a master at manipulating public opinion.

"Get ready. The meeting room will be open in 20 minutes. No communication devices are allowed. Please keep confidentiality in mind."

After receiving the notice from Tang Man, He Chuan immediately clapped his hands and emphasized discipline. Given the domestic market environment, it was the first time for everyone to short sell seriously.

Without experience, we can only work together and grope our way forward, and everything must be carried out according to the highest standards.

…………

"Thank you for your hard work on Saturday. Let's get to know each other."

On the other side, in the Taihe Capital meeting room, the three parties were seated. Su He introduced in a serious manner: "On my left is the legal team of AllBright Capital Markets, and on my right is the audit team of Deloitte Capital Markets."

"Our project is 'An investigation report on the active short selling of LeTV.com'. I think this is the first time for everyone to do this, but the research itself is familiar to everyone."

She raised her wrist to check the time. "Today is September 9th. By October 26th, the day before the stock market opens, we have 10 man-hours to complete this project. It shouldn't be difficult."

"..."

The team leader of AllBright Law Firm was a partner with thick eyebrows and big eyes. When he heard this, he suddenly felt a chill in his waist, a feeling of suffocation, and his face turned blue and red.

For ten days, he went without food, water or sleep. Not to mention the mules in the production team, he had to be compared with the black slaves at the bottom of the cabin. They had to be of South African breed!
Su He didn't care about all this. She hadn't closed her eyes since she received the short-selling plan framework personally formulated by Xie Jingxing early this morning.

Just because of one sentence, two groups of people, Xiyou and Taihe, ran this project at the same time. With sufficient funds to match priority resources, they were free to play their roles as long as they were efficient, not caring about the process.

The so-called not caring about the process, training black slaves is only the basic level.

"First, the Deloitte team is responsible for LeEco's financial report."

Su He began to divide the work. What meaningless nonsense! Even Bao Fan couldn't hold back his sarcasm at a rotten company like LeTV, which showed how unscrupulous the financial situation was.

If you randomly pick an auditor who has been in the industry for five or eight years, you will be able to find a lot of problems just by looking at the public annual reports, but you will not be able to find any evidence.

When a large company goes bankrupt, it actively introduces a third-party audit team to cooperate. It may take half a month to sort out the bad debts, let alone an external investigation.

Of course, this is also the reason why the Deloitte team was hired at a high price. As a top accounting firm, they have sufficient network resources.

It doesn't matter if there is no solid evidence. LeTV's competitors in the same industry provide relevant clues, upstream and downstream suppliers provide related cooperation rumors, and even unnamed righteous people reveal information.

Whether it was buying off a commercial spy or making up stories, Su He only wanted to analyze that LeTV would be finished sooner or later. As for the compliance and risk control risks, Taihe was fined money, but LeTV lost its life.

If you don't have this inhumane spirit, you will never be able to do anything in finance or short selling.

"Second, the market research is mainly carried out by AllBright. Third, Taihe's team is responsible for combining the company's research with on-site visits to upstream and downstream partners to obtain real data."

Su He was very confident and arranged the tasks according to the framework set by Xie Jingxing. This part required solid evidence, but it was also possible to make up stories.

Short-selling research reports essentially have no legal effect, or in other words, the underlying logic of short-selling is to make the market collectively deny the true value of an asset.

If a piece of stone is generally recognized to be worth 1 billion yuan, then it is worth 1 billion yuan; otherwise, if it is generally recognized to be worthless, then it is worthless.

Boss Jia is a habitual braggart. LeEco executives have low education and are not good at managing the company. There is evidence of financial fraud and a history of illegal operations.

You can write anything you want, as long as one of them touches on market sentiment and makes investors feel that LeTV is not worth its current share price, it will be a success.

The partner leading the team at AllBright gradually calmed down. The work was a bit urgent, but the logic and direction of the work were fine. It was a typical routine of Bridgewater Associates, a professional short-selling fund in Europe and the United States.

Find a company that looks very weak and dead, and relies on capital operations to survive, draw the target and then shoot the arrow.

The final result is correct, the reverse process is completely correct, and it is very reasonable!
…………

"Inferring from the results, the domestic short-selling mechanism can be effectively used."

In the meeting room of Grapefruit Capital, Zheng Zhe, manager of the quantitative trading department, who was temporarily called back to the company for a meeting, gave a suggestion based on his expertise: "Can we start with LeTV stocks and borrow securities?"

"Go to a broker?"

Tang Man looked down at the computer thoughtfully. The general framework of the short-selling plan formulated by President Xie mentioned a similar method.

Zheng Zhe hesitated a little: "The risk is relatively high. I don't know what my peers think of LeEco."

"Wait a minute, I'll call Mr. Xie."

Tang Man picked up her cell phone and walked out of the meeting room. He Chuan and others were confused and at a loss.

"The domestic short-selling mechanism is imperfect, and short-selling transactions for individual stocks only involve securities lending."

Zheng Zhe explained considerately: "In addition, securities lending has not been fully popularized. Fortunately, LeTV... should have started the securities lending business at the end of last year."

"The logic of short selling is, for example, you borrow 30 LeEco shares from me and sell them at the current market price of 15 yuan. When the share price of LeEco falls, you buy shares from the market at yuan and return them to me."

He paused briefly and continued as simply as possible: "This way you make a profit of 15 yuan. On the other hand, if the LeEco stock price goes up and you buy the stock and return it to me at a price higher than 30 yuan, you will lose money."

“There is a cap on the amount of stock that can be borrowed, and the amount is fixed.”

He Chuan added with a squinting eye, "How could these clumsy secondary market workers really think that the primary market doesn't require any brains and has no barriers to entry?"

Zheng Zhe didn't take it seriously and just smiled with satisfaction. It was good that he had a brain, so he wouldn't have to waste time on popular science.

The key to short selling lies in the "source of securities", that is, who has LeTV shares willing to lend them out, securities firms and major shareholders.

There is no need to say much about the latter. The former is optimistic about LeTV and naturally holds a considerable number of shares on hand.

"It doesn't matter what our peers think, we are bearish."

Tang Man returned to the conference room in a few minutes and announced the latest instructions: "Put aside the short-selling report for now, mobilize all your connections, and go out and find LeTV's 'securities source'. No matter how many are willing to trade, Xiyou will take them all!"

"Now?" He Chuan blinked his eyes.

Tang Man asked back: "Why don't you go home and take a nap?"

"Ahem, hey, Lao Sun, do you have any LeTV stocks at Juntai Securities? Can you lend them to us?"

"Steven, you don't hold any LeEco shares. Their business is in terrible shape? Well, please ask other brokerage firms for me. I'll treat you to a meal later."

"It doesn't matter if there are few sources of securities. Even a mosquito leg is meat. Did you see what Mr. Xie posted on Weibo yesterday? Alyssa, stop it. He is robbing people with a 7% interest rate. There is no inside information. LeEco is doing well and has a promising future."

"Brother Jie, we have been friends for many years. When have I ever lied to you? Our securities department makes regular investment decisions and believes that a short-term drop in LeEco will not affect your long-term investment at all. Don't raise the price and interest rate."

"You know a small shareholder of LeEco who has a batch of restricted shares? Restricted shares are fine, uh, we are bearish in the long term. You think too much, it has nothing to do with personal grudges... What, you don't want to do short selling anymore, you want to sell it directly to us? Irene, tell me the truth, these restricted shares are yours, right?"

The phone in the office kept ringing, and all the employees were talking nonsense, trying to deal with the nonsense on the other end of the phone.

Tang Man folded his arms across his chest and raised his eyebrows in triumph, listening to the risk of a bearish LeEco share price spreading to the market at a speed faster than a train. (End of this chapter)