When Simon received the message from Chen Qing, relayed through A, it was still Friday evening, June 27, on the East Coast of North America, which was 13 hours behind China. At that moment, Simon happened to be attending a financial circle gathering in Manhattan's Upper East Side.
They were celebrating the initial victory in Thailand.
George Soros was standing across from Simon, holding a glass of champagne.
After A whispered the message in Simon's ear, Simon didn't hide anything from Soros's inquiring gaze and said directly, "It's news from China, about Hong Kong."
Soros immediately raised an eyebrow.
Simon's good relationship with China was well-known. Today, the Thai government had just raised the white flag, and with the handover ceremony on July 1, it was obvious why China would reach out to Simon at this critical moment regarding Hong Kong.
Seeing Soros's expression quickly turn into a knowing smile, Simon continued, "George, close out your positions on Hong Kong soon. Consider it a favor I owe you. And if you want to make that favor even bigger, you can make a few public statements at the right time."
Simon's directness forced Soros to drop his playful demeanor.
In fact, given the $3 billion the Westeros system had invested in the Quantum Fund, as the major backer, Simon could have simply issued a command, and Soros would have had to comply. After all, Soros was just a fund manager managing other people's money. While he could maintain a strong, independent stance with other investors, he didn't have the same confidence with the young tycoon in front of him.
Now, with Simon offering a favor, Soros couldn't afford to be ungrateful.
However, Soros didn't agree immediately. Instead, he said, "Simon, you know Washington wants to teach Hong Kong—or more accurately, Beijing—a lesson this time."
Soros's financial maneuvers wouldn't have been possible without the tacit approval of the U.S. government.
Just like in 1992 with the UK, a staunch ally.
If other Wall Street firms had dared to attack the British pound without any communication with Washington, they might have been arrested to protect the interests of an ally.
Soros's current actions also aligned with the broader interests of the U.S. government.
Simon, however, shook his head. "George, those guys in Washington don't get it, but you think I don't? This operation in Southeast Asia is just a quick profit for us. In the long run, the biggest beneficiary will actually be China."
The 1997 Asian financial crisis had devastated the once-prosperous "Four Asian Tigers" and "Four Little Dragons," with some economies taking years to recover. After these economies were crippled, the West needed a replacement, and that benefit fell squarely on China.
Soros, of course, understood this logic but replied, "That's true, Simon. I just don't understand how you seem to know so much about everything?"
As he spoke, Soros couldn't help but recall 1987.
In the public's memory, Soros's rise to fame came in 1992 with his attack on the British pound, and his peak was in 1997. However, for Soros himself, the failure during the 1987 stock market crash was the most unforgettable. At that time, the Quantum Fund was less than $3 billion in size, and he lost $800 million in one battle.
Ironically, due to the zero-sum nature of index futures, a significant portion of that $800 million loss might have ended up in the hands of the young man standing before him.
And then came the rapid rise of the Westeros system.
Even with the ongoing decline of the Nasdaq, Simon's personal net worth still hovered above $1 trillion. As for Soros, even if everything went smoothly with the Southeast Asia operation and he took his 20% cut of the profits, his personal wealth would struggle to reach $10 billion.
Comparing the two... there was simply no comparison.
Simon had heard similar inquiries countless times over the years and deftly deflected, "Well, you know, there's a mental hospital in Watsonville, south of the Bay Area, that's been converted into a wellness retreat. It's quite expensive. I did have a moment of enlightenment there. George, if you're really curious, you could try staying there for a while."
Soros, who hadn't expected a serious answer, simply chuckled and changed the subject. "Simon, I can agree to your request, but I feel like I'm getting the short end of the stick. The favor you owe me can't compare to the favor China owes you, right?"
"Maybe," Simon shrugged. "But here's the thing, George. China's favor is huge, and I can handle it. You, on the other hand, might not. A favor you can't handle might end up being useless. My favor, however, is just right for you."
Simon's blunt assessment of Soros's limitations left the older man with no choice but to concede. "Alright, fine. Let's do it your way."
Simon added, "And about making that favor bigger?"
Soros looked at Simon. "Wouldn't it be more effective if you made a public statement yourself?"
"George, let me teach you an interesting Chinese idiom."
Soros wasn't sure he wanted to learn but had no choice. "Go on."
"It roughly means, why use a sledgehammer to crack a nut?"
"..."
"There's one more thing," Simon continued without changing the subject. "About South Korea. Since you're giving up on Hong Kong, why not shift your focus there? The more, the better."
This was something Simon had been considering for a while.
Regarding Hong Kong, Simon's initial plan was to stay on the sidelines if no one reached out to him, letting Soros stir up trouble. But if someone did reach out, he would use the opportunity to earn a significant favor.
Then there was South Korea.
In the past, Soros hadn't gained much from Hong Kong, so it made sense to shift more resources to South Korea.
Although South Korea was the last country in Asia to be attacked during the financial crisis, its economy suffered just as much as the other heavily affected nations. On the other hand, attacking Southeast Asian currencies had the added benefit of allowing speculative capital to scoop up assets in those countries at bargain prices. Simon had no interest in assets from Thailand, Malaysia, or Indonesia—his target was South Korea.
Soros didn't hesitate and nodded, then tentatively asked, "Simon, does this count as a second favor?"
"Of course not. This is just a suggestion. If you're not interested, forget I mentioned it."
Soros couldn't just ignore Simon's advice.
In fact, he took it very seriously.
Once again, he thought back to 1987. If Simon Westeros was talking about South Korea, then betting in that direction would undoubtedly be profitable.
With the matter settled, Simon wasn't in a hurry to notify China. He continued mingling at the party.
After all, this was like hiring a locksmith.
In his past life, he'd often seen news stories about people who forgot their keys and called a locksmith. They'd agree on a price, but when the locksmith arrived and opened the lock in seconds, the customer would immediately feel cheated. "You charge $100 for a few seconds of work? That's outrageous!"
So, Simon didn't respond for several days, waiting until the weekend had passed and a new week began.
On Tuesday, July 1, amidst the lively Hong Kong handover ceremony, Independence Day also held its premiere in Hollywood.
Meanwhile, as the new week began, Thailand, which had bought itself a weekend buffer, had failed to reach any agreement with the International Monetary Fund (IMF) regarding a bailout.
Thus, the storm continued.
The Thai baht continued to plummet for several days, dragging down the entire Southeast Asian region. The Philippines, Malaysia, Indonesia, and Singapore were all affected, with their currencies depreciating and their stock and bond markets crashing.
Hong Kong's stock market wasn't spared either, suffering a week-long decline.
During this time, Chen Qing, clearly under pressure from certain parties, contacted Simon several times. It wasn't until Saturday, July 5, that Simon finally gave a positive response. Not only that, he arranged for Soros, who was planning to visit Asia soon, to make a detour to Hong Kong for a high-level secret meeting.
Simon maintained the stance of a staunch ally throughout the process, never making any demands.
After all, the most expensive things are free.
By not asking for anything in return for such a significant favor, Simon would inevitably gain even more in the long run.
While Southeast Asia was in turmoil, North America, though affected, hadn't yet reached the worst of it. One of the recent hot topics among the public was the release of Roland Emmerich's latest sci-fi blockbuster, Independence Day, on July 4.
Since Daenerys Entertainment's recent release, American Pie, had come out just two weeks earlier, Simon, despite knowing the potential of Independence Day, didn't deliberately suppress it.
With a $90 million production budget and $50 million in marketing expenses from MGM (though, as a co-production, some of that was likely inflated—this was Hollywood, after all), the film's actual marketing budget was still over $40 million.
It opened on 3,382 screens.
Thanks to its excellent reviews and explosive special effects, Independence Day earned $19.36 million on its opening day, surpassing even Twister.
Over the three-day Independence Day holiday weekend, despite competition from three other major releases, Independence Day still managed to pull in $61.73 million. By the end of its first full week, the film had grossed $91.07 million, making it the highest-grossing opening of 1997.
With such a strong start and an 8.7 rating from critics, Independence Day was almost guaranteed to hit $300 million domestically.
The success of the first co-production, Species, during the Easter season had already made many envious. Now, with Independence Day becoming a cultural phenomenon, many investors were inquiring whether Daenerys Entertainment planned to launch a second round of co-productions.
On the other hand, even though Independence Day's success helped push the North American box office to a high of $230 million for the week, the film's dominance inevitably impacted Daenerys Entertainment's earlier releases.
Internally, Daenerys Entertainment didn't have any major issues with this, but some media outlets, always eager to stir the pot, couldn't resist making snide remarks, implying that Simon had handed a potential $600 million global blockbuster to someone else.
What a spendthrift.
Simon simply ignored the noise.
The logic remained the same.
Over the years, if Daenerys Entertainment hadn't actively pursued collaborations, it might not have broken through the monopoly of traditional Hollywood studios to rise to its current position.
Sometimes, sacrificing some local interests for the bigger picture was necessary.
For example, after Independence Day's massive success, Simon did consider launching a second round of co-productions.
Unlike the first round, which was more experimental, this time the targets would be more specific, focusing on investors with the potential or desire to break into Hollywood. Additionally, the funding scale would be larger, further absorbing capital and cutting off the possibility of potential competitors rising in Hollywood.
Turning his attention to China.
At Jinshu.
After a month on the air, thanks to Simon's personal involvement in the show's planning and relentless promotion, Super Girl's ratings in Jiangsu Province had soared above 70%, and its national recognition was growing rapidly.
At first, Simon was puzzled by Super Girl's ratings.
The once-phenomenal My Fair Princess had peaked at a 63% rating in mainland China in 1998. If Super Girl was hitting over 70%, wasn't that even more impressive?
After some research and considering the state of China's television industry at the time, Simon realized the truth.
China's TV ratings system was still highly irregular. Super Girl's ratings were being tracked by local agencies in Jiangsu, and with the show's popularity, some inflation was inevitable. Still, based on Jinshu's own market research, Super Girl's ratings in Jiangsu were indeed very high. Even if the 70% figure was slightly inflated, it wasn't by much.
Secondly, compared to My Fair Princess, there was another factor: not all provincial TV stations in China had satellite coverage yet. This would only happen over the next year or two.
As for My Fair Princess, it achieved its 63% rating after multiple provincial TV stations began broadcasting it simultaneously via satellite.
It was indeed a cultural phenomenon.
As for some of the exaggerated ratings claims in news reports, they didn't hold up to scrutiny.
If we're talking about rating miracles, forget Journey to the West from decades ago. Just look at Yearning from 1990, which reportedly achieved over 90% ratings. If we go by these public figures, Yearning was the real miracle.
Ultimately, China's TV market was rapidly evolving. While My Fair Princess's success was undeniable, Super Girl's success was equally undeniable.
As for Simon, the takeaway was to have Chen Qing help facilitate the establishment of a professional joint-venture ratings research agency in China.
Most importantly, the Westeros system would hold a small stake.
After all, China's ratings agencies were a miracle in their own right.
Simon had looked it up: Sofres Group, a rapidly expanding market research giant, had only made $120 million in revenue over the past year, earned through diligent data analysis and market research in over a dozen countries. In contrast, some of China's domestic ratings agencies later turned the ratings business into a multi-billion-yuan industry.
Now that was business genius.
While others sold data to businesses, TV stations, and advertisers, making a modest profit after jumping through hoops, China's agencies cut out the middlemen and sold directly to TV producers.
Brilliant.
As for companies like Enlight Media, no matter how established they were, if they couldn't afford to buy ratings, they'd have to quietly exit the TV market.
Simon's move to secure a stake was a preemptive one, and he had no illusions about making money from it.
The waters were too deep.
He just hoped that in the future, Jinshu's own productions wouldn't have to pay for ratings—or at least get a discount. Simon was always happy to adapt to local customs, especially when it benefited a giant like Jinshu Media.
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