Chapter 55 Looking for Someone to Bridge the Gap

Shanghai Finance University off-campus commercial street.
A semi-private booth in a coffee shop.
After detailing the internship specifics, Tao Yu'ang glanced at Lai Weijie, Xu Zhiruo, and the other students, then asked, "Does anyone else have any questions?"
"Senior Tao Yu'ang, you mentioned earlier that the internship period is three months. What is the conversion rate for a full-time position?" Lai Weijie took the lead in asking.
"Around 20%," Tao Yu'ang answered without hesitation.
Securing an internship slot was merely passing the first hurdle. To successfully convert and stay at Huaxin Securities, everyone had to rely on their own capabilities.
Back then, Tao Yu'ang entered Huaxin Securities for his internship through Yue Shuxue's family connections. Even with mediocre internship performance, he was still able to stay on smoothly—that was the advantage of having a background.
To make it far in the financial sector, one either needed exceptionally outstanding personal competence or an extremely profound family background. Otherwise, one had no choice but to sell one's looks.
This was also why the financial circle either kept its scandals hidden away or, once exposed, reached an explosive level comparable to the Korean entertainment industry.
"Ah???"
"With ten of us going for the internship, only two will ultimately stay? How cruel!"
"This kind of nearly perverted elimination mechanism—truly living up to Huaxin Securities. Those who manage to stay are bound to be the cream of the crop!"
"Then it's over. He Jing is guaranteed 100% to take one slot, leaving the nine of us to fight for the other. The elimination rate is 88.89%!"
"How hopeless!"
Faced with an elimination rate of 88.89%, students like Lai Weijie and Xu Zhiruo felt a sense of despair; it was simply too brutal.
"You've got it wrong." Tao Yu'ang first shook his head, correcting them, "It's not just ten people competing. Your competitors also include students from elite universities in the Yangtze River Delta such as Fudan and Zhejiang. I estimate there will be over forty people in total."
"Ah, this..."
"So many people?"
"Goodness!"
For a moment, they did not know whether to grieve or rejoice.
If the total number was forty, a 20% conversion rate meant eight people would be converted. If luck was on their side, only one person from their group would be eliminated. But if fortune failed to smile upon them, they might all be wiped out entirely.
At that moment, a post from Tianya Forum flashed through Lai Weijie's mind. It was a discussion rating the strength of the Heavenly Soldiers and Generals in *Journey to the West*, and one of the popular replies went like this:
[You are born in a different world brimming with spiritual energy. It just so happens that you are immensely gifted and blessed with extraordinary destiny, eventually becoming the strongest being in that world, ascending to the Celestial Realm, only to find yourself standing in the 71st row of the hundred thousand heavenly soldiers and generals. Just as you stretch out your neck to see who is causing havoc in Heaven, you don't see anyone at all—only a pillar-like staff blotting out the sky coming straight toward you.]

"The competition is too cutthroat. Can I even make it through?" Lai Weijie was already losing confidence.
To secure the internship spot alone, he had already shelled out 65,000 yuan to Zhang Yang.
Now, facing the heavyweight battle of conversion and contending with top students from other universities, he genuinely had no idea how much more money he would have to spend.
The others felt similarly apprehensive. They had not expected that after battling their way through all the hurdles, the elimination rate at this stage would still be so astonishingly high.
Among the nine students, Xu Zhiruo remained relatively calm.
Her desire to break into the top ten of the simulated trading account was mainly driven by the assumption that Zhang Yang would also make the top ten. That way, the two of them could not only be classmates but also colleagues, and who knows, their relationship might even progress further in the future.
Yet upon learning that Zhang Yang had failed to enter the top ten, the appeal of Huaxin Securities plummeted dramatically for her. She was now contemplating whether she should simply give up this slot.
"Beep—beep—"
Tao Yu'ang's phone emitted a notification chime.
"Once you all go back, you can prepare yourselves well and enjoy these final university days." Tao Yu'ang was an experienced senior who understood the bewilderment of fresh graduates. After offering this word of comfort, he checked the QQ messages on his phone.
"Zhang Yang?"
Seeing the sender's name, he paused momentarily before quickly tapping it open.
[Zhang Yang]: Senior Tao Yu'ang, are you free? There is something I would like to consult you about.
[Tao Yu'ang]: I am. I'll be wrapping things up here shortly. Wait for me at the underground parking garage of Shanghai Finance.
He replied swiftly.
Following that, Tao Yu'ang did not say much more to Lai Weijie, Xu Zhiruo, and the others. After a few perfunctory pleasantries, he left.

Shanghai University of Finance and Economics.
Underground parking garage.
Owing to modern history's humiliating past, Chinese universities were frequently equipped with air-raid structures—either proper air-raid shelters or underground parking lots suitable for daily use.
After leaving Bao Xingwei's office alone, Zhang Yang sent a message to Tao Yu'ang, intending to inquire about margin financing companies.
In 2009, leveraging positions was no simple matter. Although the law already supported securities firms in engaging in leveraged margin trading, no brokerage had yet stepped up to be the first to eat the crab. Investors who wanted margin financing had to turn to off-market financing institutions.
Off-market financing institutions carried a distinct risk: encountering an unregulated company could result in one's funds being embezzled as the operators absconded.
This was because off-market financing required transferring money directly into the counterparty's corporate account. For instance, if you brought 200,000 yuan to leverage a 5x position, you first needed to sign a specific leverage ratio contract with the other party, then wire your 200,000 yuan into their designated bank account. Finally, based on the contract terms, they would deposit your 200,000 yuan alongside 800,000 yuan of financed capital—totaling one million yuan—into a designated securities account.
It is worth noting here that the financed securities account was not operated directly by the client either; rather, it remained in the hands of the financing company. If a leveraged client wished to place an order, they had to communicate with the financing company's liaison manager first.

Precisely because of these various restrictions, some unscrupulous financing companies would use simulated trading platforms to hoodwink clients. Once the company reeled in a larger sum of money, they would simply pack up the funds and vanish without a trace.
Finding the right financing company was crucial, which was why Zhang Yang sought out Tao Yu'ang.
Having spent nearly a decade immersed in the financial sector, the man shouldn't be so inept that he couldn't even point out a reliable financing firm.
"Junior."
In the vast and quiet parking lot, Tao Yu'ang's voice was exceptionally distinct.
He walked over quickly toward Zhang Yang and took the initiative to ask, "You reached out to me so urgently—did you run into some difficult problem?"
"I want to leverage my position and would like Senior Tao to recommend a financing company to me." Zhang Yang did not beat around the bush, stating his intention directly.
"Leverage your position?"
Tao Yu'ang looked slightly surprised, then advised, "Can you wait a bit longer? I have reliable internal news that Huaxin Securities will launch an on-exchange financing channel next March, and you only need 500,000 yuan in capital to unlock the permissions."
"Off-market financing companies carry extreme risks, and their annual interest rates are also exorbitant, generally above 20% or even reaching 30%. Even if I step in to negotiate personally, the absolute lowest I can get is around 13%."
An annual interest rate exceeding 20% was no different from borrowing usurious loans to play the stock market.
In Tao Yu'ang's view, anyone daring enough to leverage stocks at this juncture was essentially a reckless gambler.
Had it been anyone else, he would have been quite willing to make the introduction; acting as the middleman would have netted him a 3% to 5% kickback.
Yet Zhang Yang was different. Tao Yu'ang shared a business partnership with Zhang Yang. If Zhang Yang suffered a margin call and jumped from a building, who would write market research reports for him?
Ever since the two of them reached the "Co-creation Agreement," the latest two plagiarized research reports he submitted had thoroughly pleased the senior executives of Huaxin Securities' Shanghai branch, who were already preparing a dedicated promotional column just for him.
"I don't want to miss this recovery bull market, so I sincerely hope Senior Tao can make the introduction." Zhang Yang was well aware that this recovery bull market would last until July, entering a technical bear market in August; he had to seize the opportunity.
"You..."
Tao Yu'ang hesitated, but eventually relented. "Tomorrow—tomorrow morning, I'll come to the school to pick you up, and then we'll make a trip to Hangzhou."
He feared that if he refused, Zhang Yang would go look for a financing company on his own, and should he inadvertently stumble upon a scam firm, the losses would far outweigh any gains.
"Alright, I'll get my preparations done."
Zhang Yang agreed readily.