Original subtitles

Created & Directed by WONG KAR WAI

EPISODE 28

GONE WITH THE WIND

1978

When I met Xuezhi, she was only 20 years old.

She was a tram conductor on Route 13.

"The Flower of Route 13" was her nickname.

She came from wealth, and carried herself like an heiress.

She practiced calligraphy, played Go, and collected stamps.

She was also learning English.

Love.

L-O-V-E.

Love.

I love...

Then what?

She loved "Gone with the Wind".

Borrow "Gone with the Wind" for me.

Sure.

The first time I visited her was to return the book.

Xuezhi.

You're here.

I'm here.

I finished it. You can have it back.

Are you cold?

The plum blossoms. Let me get one for you.

-Let me go. -What are you doing?

Come.

Hurry, my uncle's coming back.

Smell good?

I thought we could be together forever.

But in the end,

the tram reached its last stop, and I found myself alone.

Come in.

That afternoon, Ah Bao prepared to see Xuezhi one last time.

Everything between them had reached its end.

You came by bicycle?

I've come.

And I've seen you.

That's enough.

I'm leaving.

Ah Bao.

Don't touch me, my clothes are dirty.

Ah Bao.

Next time you ride the tram, and run into me,

what would you do?

If I run into you on a tram,

I would say,

I need a ticket.

If I have a monthly pass,

I would say,

monthly pass.

Ah Bao.

Please remember.

On my tram, you never have to pay.

I last saw her in Hong Kong.

Her last words were...

Forget you ran into me today.

Xuezhi clung to Ah Bao.

The air was dense with tangled scent and feeling.

Gently, Ah Bao eased away her hands.

I visited her house before it was knocked down.

It still smelled of camphor.

The plum tree had been removed.

When fate wants to fix someone, it offers no forewarning.

It just strikes.

Overnight, Xuezhi was ensnared in the past.

Time continued without her, and I kept her in my memory.

Everything will pass eventually.

No more 10 years.

No more reunions.

Only letting go.

Careful, tram coming through.

Next stop, Nanjing Road.

January 2, 1994.

Upcoming lotteries were announced for IPO stocks.

"Shanghai Fashion Corp announces IPO"

"Shanghai Fashion Corp will officially go public...

on January 10th, on the Shanghai Stock Exchange as an A-share."

Across eight IPOs, the lottery for certificates of Shanghai Fashion Corp

would be the climactic event.

The whole market was watching.

Mr. Cai's biggest concern was the opening price.

Mr. Bao,

our chairman wants the opening price to be a lucky number.

Because this price will enter our company's history book.

¥11.18. That would be reasonable.

First, it's a bit more than double the offering price of ¥5.40

The initial shareholders will hesitate about buying or selling.

So there won't be too much pressure to dump shares.

Second, the market's cold right now.

The cost of the certificates we bought on the black market

suggests that the market is pricing Shanghai Fashion Corp at ¥11 per share.

Issued by lottery, these "certificates" entitled subscribers to new shares.

Before public trading began,

subscribers could sell their certificates on the black market.

Selling meant playing it safe.

Subscribing meant betting that the stock price would rise.

Besides,

this price sounds like one, one, one, ace.

Very lucky.

This first quarter has seen so much expansion.

Just this week, ¥650 million in newly listed stocks.

The market needs time to digest that.

Let's be conservative.

Open low, go high.

Wait for a substantial turnover.

Let the price flip first.

Shanghai Fashion Corp was profitable in second half of last year.

If the annual report comes out,

and earnings per share is between ¥0.80 to ¥1,

a stock price of ¥20 would mean a price to earnings ratio below 25.

Plenty of room for the price to grow.

Suppose they issue 10 bonus shares for every 10 shares held.

Now that would be amazing.

-Congratulations, Mr. Cai. -Thanks, Mr. Qiang.

"Prosperity flows. Fortune soars."

Originally,

you guys didn't give our small company a second glance,

and allied with Luwan instead.

Even we didn't think we had a chance.

But in the end, we were the ones who made it.

We only collaborate with the leader.

Luwan was the leader.

Now that you won the IPO,

Shanghai Fashion Corp is the top dog.

Mr. Cai, getting listed is only the first step.

If we integrate industry and finance,

then the value will exceed the sum of its parts.

I know Southern has a lot of funds.

You could easily push up our price.

But we don't want the pressure

and scrutiny associated with an inflated valuation.

What I'm proposing is to help Shanghai Fashion Corp's future expansion,

and provide refinancing services.

We can help you issue foreign capital stocks,

or get you listed in overseas exchanges.

That's not something small brokers like WD can do.

Mr. Qiang, let's take it one step at a time.

Right now, our chairman's top concern is the opening price.

What are you aiming for?

Someone suggested ¥10.

That's Mr. Bao, right?

I'm thinking a bit higher.

How much higher?

Try to push to this price.

Is that not too high?

Risk a pawn to take a rook.

Opening day,

Let everyone miss,

then chase.

Morning, Uncle Ye.

You knew I'll be back, right?

I was on my way

to fetch you for help.

Stop it.

I know you.

You're not worried.

I read you like a book.

I should be the one coming to you.

Skip the pleasantries.

Just tell me...

How do you plan to handle this?

You didn't fetch me.

You must have a plan.

I don't want to implicate you.

You...

The Walmart order was your lifeboat,

yet you threw it all away.

I remember you telling me this.

But to me, Walmart was never going to be my lifeboat.

You're ambitious.

Fine.

I'll say no more.

You take care.

The hotel wants our bill paid.

If it comes to it, just leave this gossip place.

Take one step back.

Remember Mei Ping?

Yes?

That day when she came with her gifts...

DECEMBER 31ST, 1993

-Happy New Year. -Happy New Year.

-Happy New Year, Mr. Bao. Heading out? -Happy New Year.

-Is Uncle Ye around? -He went out.

I brought him New Year's presents. I also wanted to tell him I left No. 27.

This is my new company. Uncle Ye said we should collaborate.

Congrats.

Why are you back?

Forgot something.

You have a visitor. I'm heading out.

Uncle Ye, you're back.

I came to see you.

I heard you left No. 27.

You didn't persevere.

I'm still in foreign trade, still learning from you.

These pastries are for you. Happy New Year.

I don't eat sweets anymore. Thanks, and Happy New Year.

I have to go too. See you next time.

They say you're a user, not a friend.

Now I know it's true.

You may be a master.

But sometimes you stumble too.

You want to know what's inside? You'll have to come get it.

I won't ever walk through this door again.

I knew she came with information.

I didn't care.

She taught me a lesson though.

Mr. Bao, want to come in?

It's overcrowded.

Leaving?

Uncle Ye was busy. Maybe next time.

Mr. Bao. Please enlighten me.

Yes?

You've always been cold to me. Do you have something against me?

No, not really.

But you treat your colleagues improperly.

You mean Miss Wang.

She never wronged you.

You wouldn't understand.

You and Miss Wang

have always caught people's attention.

Not me.

I can work harder, no one notices me.

You may not have noticed,

but before today,

you have never spoken a complete sentence to me.

And "Improperly?" I disagree.

Miss Wang steals too much limelight, leaving nothing for everyone else.

Her existence, to someone like me, is poison.

The elevator.

People like me take the stairs.

You take the elevator.

I also used to take the stairs.

Uncle Ye, you put me in the elevator, and made me Mr. Bao,

trying to climb higher, and faster, than others.

These 2 years, I've slipped on the floor.

I've jumped up to the ceiling.

I'm content.

Now I'll take the elevator when I can.

But without one, I'll take the stairs.

I can do both.

Always,

One step back.

Understand?

If doing business is an art,

Uncle Ye's surely a maestro.

Fine.

From 1987 to now,

from floor to ceiling,

Uncle Ye was by my side through it all.

He was my best mentor,

and witness to my journey from Ah Bao to Mr. Bao.

I still remember the first lesson he taught me.

You've heard of the Empire State Building?

Climbing to the top takes a full hour.

Plummeting to the bottom?

Only 8.8 seconds.

In 1987, Yuyuan Tourist Mart launched,

bringing about stockholding reform in Shanghai.

Seven years later, Shanghai Fashion Corp made its big debut.

On listing day, the SSE Index was unpredictable.

With Chinese New Year approaching, institutional investors were inactive.

Most speculators treat Shanghai Fashion as a "wait and see."

I hear this stock has big backers.

Just buy low, sell high. Don't try to get fancy.

Has it started?

In a few minutes.

Mr. Wang, we're standing by.

Sounds good.

-What's today's fund position? -¥150 million on hand.

And are the traders and computers ready?

We ran a test yesterday. No problems.

At the Exchange, we have three trading seats all to ourselves.

Just in case, I also contacted two other brokerages

to provide up to five additional seats to guarantee we can trade smoothly.

We're in position.

The call auction from 9:15 to 9:25 is key.

Make sure my funds are in place.

No room for error.

Don't worry.

What's the bidding price you have in mind?

¥10.88.

110687330 buying Shanghai Fashion, ¥10.88, 5,000 shares.

The first 5 minutes, we watch.

Do nothing.

Let Mr. Bao show how good he is.

100651857 buying Shanghai Fashion, ¥9.50, 10,000 shares.

Still rising. Chase the market.

-Good. -¥10.80

-¥10 in just two minutes. -Pretty good.

Looks like it's still going up.

The price is at ¥10.58.

Mr. Wang, buy a bit if it's below ¥11.

If it goes above ¥11, hold off.

Six more minutes.

Try to keep it steady around ¥10.

Mr. Qiang won't have quit just because he's not the underwriter.

Understood.

We're four minutes in. The price has leveled off.

The current price doesn't matter.

What matters is where the price lands at 9:25 a.m.

That's the real battle.

Who's placing orders now?

Mostly just retail investors. Some of them bigger ones.

Buy Shanghai Fashion!

Let's make our move.

Understood.

Begin.

804534535 buying Shanghai Fashion, ¥12.

Damn, someone's fighting us!

The enemy's on our doorstep.

Look, the price is going up!

Mr. Bao, the price is rising more than expected.

Should we chase it?

Just for a bit. Let's raise our target a little.

What's our cut-off?

I'll tell you.

Let's see if this wild horse makes a run for it.

We'll buy too. We want a piece of that final opening price.

Understood.

110687330 buying Shanghai Fashion, ¥11.74, 10,000 shares.

Watch for WD's bid. They bid, we bury them.

110687330, buying Shanghai Fashion, ¥12.58, 8,000 shares.

804534535, buying Shanghai Fashion, ¥13.80--

Keep pushing it up as planned. Let's bring this market back to life.

110687330 buying Shanghai Fashion, ¥14.88, 10,000 shares.

¥14.52, 100,000 shares.

Shanghai Fashion's taking off!

A whale has entered.

I've never seen such a ferocious opening gambit.

Bao's been slapped.

Don't take our foot off the gas. Keep pushing at this pace.

That'll show

investors are optimistic about Shanghai Fashion's shares.

The price is already approaching ¥15.

Three minutes until the opening price is set.

This is way higher than what Mr. Bao said.

Mr. Cai, it's at ¥15.16.

The hype for Shanghai Fashion is incredible.

I've never seen anything like it.

Mr. Bao, should we keep chasing?

If not, let's hold off on more funding.

He's using other people's money. That's why he's being so reckless.

Shares bought at this price are going to lose half their value.

Since Mr. Qiang likes grabbing shares, let's satisfy him.

We'll sell 500,000 shares at ¥17.74.

Miss, sell half of my shares of Shanghai Fashion at ¥17.74.

Understood.

110687330, selling Shanghai Fashion, ¥17.74, 500,000 shares.

"Total Position: 500,000"

All seats, order in lots of 100,000, and push the price...

to ¥18.88.

All seats, maintain this rhythm and take turns bidding.

804534535 buying Shanghai Fashion, ¥17.84, 100,000 shares.

To ¥18 Well be rich!!

Should we keep chasing, Mr. Wang?

Understood.

That's it.

-¥18.88! -For real?

Someone suggested ¥10.

Mr. Bao's suggestion, right?

I'm thinking a bit higher.

How much higher?

¥18.88.

Keeping your word takes true skill.

Such a high opening price. Their backer must be really powerful.

From here on out, Southern Investments has a foothold in Shanghai.

The dominant buyer today was clearly Southern.

Mr. Bao, prepare for the worst.

For years, Mr. Qiang and I have been rivals.

I haven't lost once.

In the stock market,

whether it's stocks or stock traders,

we can't let our emotions get involved.

He's the one acting emotionally.

Today, he made me suffer in silence. Next time, I'll return the favor.

Mr. Bao must feel great, selling 500,000 shares at ¥18.88!

"Net Assets: 31,887,632.29"

"Total Position: 500,000"

You don't understand.

A company and its backer have a delicate relationship.

If the backer no longer seems reliable,

their bond can fray and give the rival an opening.

Thank you, Mr. Qiang. ¥18.88.

Other Nanjing Road companies couldn't even dream of opening at that price.

And such a lucky number too. Our chairman is overjoyed.

A retail investor named Mr. Bao said ¥10.

An institution named Southern said ¥18.88.

Who's the whale?

Mr. Cai should know now.

More hands make a stronger flame.

Mr. Qiang, please

continue to advise us.

It's tough being on top.

Now let's see how well Mr. Bao protects his position.

Hang Bao up.

Burn him slowly.

Mr. Qiang's blitzkrieg shattered conventional wisdom.

The opening of an underdog stock became a bidding war.

Everyone who missed out was left feeling bitter.

Shanghai's never seen such a fierce fight over who would be the main backer.

Should we give chase?

Move slowly, watch carefully.

After taking on such big positions,

they can't get out so easily.

Southern Investments' triumphant first battle

cemented their reputation in Shanghai's stock market.

Mr. Qiang regained the trust of Shenzhen HQ.

In order to assert his dominance,

over the next five business days,

he mobilized various holding accounts,

sending bullish signals to the market.

Traders responded, and Shanghai Fashion surged to ¥25.

In five days, Shanghai Fashion has risen over 30%.

Just buy it.

Even for fun.

For a new stock's share turnover to exceed 100%,

that means every initial share has changed hands at least once.

I think it can keep going.

Sell 500,000 prize shares to him.

Then,

we hold no more shares.

Retreat when the enemy advances.

Master his moving pattern. Then kill him while he's moving.

I decide to do the opposite.

Engage him in a protracted war.

First step. Forsake the center, occupy the wings.

No territorial spats.No attrition.

Trade space for time.

Lure him deeper.

What's this computer for, Captain Cai?

Right now, when you buy shares, you fill a form at a trading counter,

which becomes an off-floor order, which then goes through a floor broker.

"Tangible trading," we call it.

Modern brokers use what's called "intangible trading."

This computer collects orders randomly into a "tractor account,"

which trades in small batches, like a retail investor.

In reality, all the money comes and goes from a single source.

This smokescreen lets people place trades discretely.

There's immense selling pressure. Should we jack up the price?

We can profit on the way down.

Remember these four words "Short covering is key."

Got it.

New orders. Reversal arbitrage.Short cover.

We sell at the daily high and buy back at the daily low.

Maintain the size of our position.

So we're letting prices fall... Why?

To seize the initiative.

To force out Ah Bao.

Over the next two days,

bearish price trends wiped out Shanghai Fashion's momentum.

Riding rumors of the backer's exit, Southern's tactics dropped the price

to ¥23.80, where it traded sideways for a few days.

If the price rose, they'd sell.

If it dropped, they'd push it back.

For now, wait.

They would trade sideways for three days, drop the price, then repeat.

Such zigzagging strategies bewildered Shanghai's retail investors.

Why the hell is it dropping like that?

Anyone who bought in at ¥25 will be trapped in for a long time.

From ¥18.88 up to ¥25, then back down to ¥18.88.

Is Qiang running out of steam?

Let's hold off and see if he's playing dead.

What's Qiang doing, Captain Cai?

1 million shares sold, averaging ¥19.50.

And then buying them back that day with another account

at an average price of ¥18.80.

In one day, they made ¥790,000.

-All while maintaining his holdings... -That's right.

Normally, we buy low and sell high.

This is my first time seeing someone sell high and buy low.

We used to call this move "helping grandma down the stairs."

Lower the price step-by-step.

Short, then cover it, all while controlling the market.

Helping grandma should be done gently.

The way he's doing it will kill the old lady.

He wants to force us out.

Who says only one person can use this strategy?

We'll secretly join in, and lend a helping hand.

Understood.

-Start the tractor account. -It's tractor time!

Next, we used a tractor account

to follow Southern's movements and buy low.

Got it. We have our orders. Start building our position.

Buy 50,000 shares of Shanghai Fashion in batches.

-Got it. -Begin.

110687330 buying Shanghai Fashion, ¥17.00, 2,500 shares.

"Available Funds"

110687330 buying Shanghai Fashion, ¥17.30...

"Total Position: 6,575,800"

A new position's been established.

Now we wait for the annual report.

Our profit?

Over 15%.

Both of our funds are profiting.

Let's ambush Mr. Qiang, and capture him alive.

With the price dropping like this,

can Shanghai Fashion handle it?

They'll come to me if they can't.

Mr. Bao, it's down to ¥18. The head office calls three times a day.

What am I supposed to tell them?

Don't just make money for yourself. Do something.

I wanted to start low and rise. Southern forced you to start high and fall.

I'm a shareholder too. I'll do what I can.

But I can't support the price by myself. I need your help too.

Nanjing Road's listed companies all performed well this year.

Shanghai Fashion should also give its shareholders a reward.

Their bonus share ratios?

Some 8:10, some 10:10.

Bonus shares come from profits.

Without sufficient profits, we'd be pawning off our assets.

Shanghai Fashion's 100 years old, but it's still a small company.

If you want to change that,

you have to raise share capital, and give shareholders confidence.

In a weak overall market, you have to jumpstart that yourself.

I understand your proposal.

But our final plan will be decided by the board

and voted on by shareholders.

We won't be outdone when it comes to rewarding shareholders.

Captain Cai!

Is it possible for Shanghai Fashion to offer a high bonus share ratio?

Of course it is.

You know what kind of company this is?

What kind?

A future Pierre Cardin collaborator.

A target for foreign acquisition, with strong fundamentals.

-Look at the value investing report. -Wow.

Newspapers don't joke. It's the real thing.

The next few days, Shanghai Fashion's price slowly started to rise.

Rumors stated its annual report would reveal strong profits

and high-ratio bonus share issuance.

You look relaxed today. I take it your investments bore fruit?

We'll see after they ripen.

Mr. Cai, I heard you're issuing,

for every 10 shares held, 5 bonus shares and 5 converted shares.

Mere rumors. We don't have a plan in place.

Our final decision will depend on the circumstances.

You must reward your shareholders,

but also leave room for expansion.

An annual report is an opportunity.

With an alliance like ours,

both good news and bad news can bring enormous profits.

Good point.

Everyone else coming to us

asks for good performance and bonus shares.

Only you, Mr. Qiang, didn't have any demands.

I admire your way of thinking.

What's Mr. Bao been up to?

They haven't made a move, but retail investors have been active.

He's only fooling himself.

Follow the money.

Find out where it's coming from.

Mr. Bao has two funds.

A factory owner named Mr. Ning.

A Taiwanese merchant named Mrs. Lin.

Mr. Bao's managing their funds.

Is this money pooled in Mr. Bao's own account,

or kept in the owners' separate accounts?

Separate accounts. Mr. Bao is trading on their behalf.

First we cut off his arms, then we bleed him dry.

Yes?

Mr. Ning went to the trading counter

and cancelled all standing orders.

He transferred the account

to Southern's Zhejiang office, and sold all the shares.

Cashed out ¥34.1 million. He's gone.

-He also left a message. -What?

"Leave some petty cash

for the Shanghainese guy."

How much did he leave?

Less than ¥200,000.

He sold the shares for ¥34.38 million and took back his principal plus interest.

This is all that's left.

Mr. Ning wants more profit,

so we'll promise him big profits as Shanghai Fashion expands.

Mr. Bao's arrangement with Mrs. Lin all hinges on Li Li's guarantee.

If Li Li backs out, so will Mrs. Lin.

Let Mr. Bao taste

his own "corpse removal".

Hi.

I'll take The Grand Lisbon.

You weren't interested in restaurants.

New day, new rules.

Price is up.

How much?

15%.

Too much.

New day, new rules.

When can we sign?

Anytime.

The call I feared most finally arrived.

I've sold The Grand Lisbon.

Mrs. Lin's shares will transfer to Southern.

¥3 million of the profits will be transferred to your account.

Thank you for telling me.

Then I'll cancel my guarantee.

Without The Grand Lisbon as collateral, Mrs. Lin will cancel the contract.

You'll deal with the consequences.

I can also tell you that you're not the only buyer.

I will fight this my own way.

Win,

2 people win.

Lose,

only one loses.

My whole portfolio: 120 million.

-largely from Mrs. Lin and Mr. Ning.

These funds had to go through WD before they matched me 1:1.

With half of my funds gone, so too was the basis for my leverage.

How big is Mr. Bao's position?

He holds 2.8 million shares.

Based on my calculations,

with his remaining assets, and accounting for our financing,

if the stock price falls to ¥10, he'll be completely wiped out.

Welcome.

Welcome.

Congrats.

Good selling price.

Right timing.

Mrs. Lin, you'll need to talk to Mr. Qiang if you still want The Grand Lisbon.

He'll come to me.

One false step, all false steps.

The capital, so arduously raised, became computer symbols overnight.

Blood and sweat, all for nothing.

That's what killed Mr. A.