Risk in Chinese Word Being Viewed as a Combination of Two Characters: Danger and Opportunity

Risk in Chinese word can be viewed as a combination of two characters: danger and opportunity, representing the coupling of risk and reward lies at the core of the risk definition. In other words, risk brings uncertainty of challenge with real possibility of rewards or loss.

I come from a family that successfully demonstrated risk can bring rewards. My grandfather, like thousands of other intellectuals, was forbidden to study during Cultural Revolution but he took risks by insisting studying at every night, although farm work already exhausted him in day time. He later became the chief economist in Bank of China and led negotiation on some of China’s greatest foreign investment projects because of his strong English and rich knowledge in finance. My mother quitted her stable job in state-owned enterprise to start her desktop sales business when few Chinese even knew what computer is. She later was recognized as a national top seller and her clients covered half of mainland China.

That was their generation. And now I keep the legacy in my life, which is quite different from my family’s but brings more challenges.

My journey in finance started with end of my dream to be a professional basketball player. After suffered a severe leg injure in an intramural game in which I was rewarded MVP, I decided to open a brokerage account and invest my first own asset, 5000 RMB MVP prize, into stock market, which I was always fascinated with. For several weeks, I became an avid student of stock trading. After a few readings and several sample financial analysis, I confidently bought 200 shares of a new-issued company specialized in petroleum and natural gas services because the company’s low P/E ratio and monopoly status in industry. My confidence was further encouraged by my grown account in first several weeks. Believing that it was only a matter of holding the stock long enough to realize the huge upside price move, I aggressively leveraged my account by persuading my mother to invest more on my account. My profit and elation were short-lived, however, as the price broke down below half of my entry price in one week. My position was blown out and there were only couple hundred RMB left after I returned my borrowing.

Despite being knocked out of box for a while, I never stopped thinking about stock market. Passionate about investing and determined to advance in finance field, I made a plan and poured myself into it again. Realizing that both my fundamental analysis and technical analysis were insufficient for successful trading, I built investment book library to develop both skills, and further created a stock selection system which combined both skills. Noticing that liquidity, which was solely driven by several big players in the market, can mostly explain future price movement, I actively tracked money flows in each industry. Doubting that some auditing work, such as marking assets to market, could be subject to easy manipulation, I attended advanced accounting courses to gain the knowledge for my own judgments and paid visit to several listed companies to investigate myself when possible. Accomplishing that stock market was policy-driven in China and investors were placing bets on the political side, I did library-type research and talked to everyone I could find who had experience to have a clear picture of both “visible and invisible hand” behind market. My painful loss helped me completely refined my techniques and thoughts.

Six month after my last trade, I successfully made a pitch and raised 50,000 RMB from several investors, including two of my professors and dean of my college. To my investors’ surprise, my initial investment was a recently issued cement company with small amount of outstanding shares. At that time, bull chips stocks represented leading edge of Chinese stock market and most Chinese investors were timid about small companies because of high embedded uncertainties. Even my father, an experienced manager in a securities company, worried about my decision. To verify the financial data and gain first-hand information, I visited this company and talked to its production manager in my spring break. To estimate the company’s sales, I spent one week in front company’s warehouse to count the shipment. To calculate the cement demand in local, I talked local government official to know infrastructure project. in front of By applying technical and fundamental skills, combined with detailed analysis of political and economic context of stock market regulation, the annualized return of my portfolio is more than 50%. At the same time, I am also in charge of investment fund for school’s investment club and taught my classmates investment skills by using live example. Impressed by my performance, I was immediately recruited as an equity analyst by a securities company after graduation and set precedent to get promoted to an assistant portfolio manager only one year later. To pursue an international experience in financial industry, I took another adventure to come to US.

Despite financial failure in my first big stock investment, the learning experience transcends the money and served as the genuine turning point in my life. Like my family, I successfully proved that risk brings great reward and learn that, despite the loss I may experience, the only true danger is ignoring loss with no plan.
In addition, there were some signs indicating that several securities companies were actively involved in trading this stock. The trading volume and turnover went abnormally high. as the central government worried about losing control of capital market to municipal government and made some heavy-handed interventions. Securities companies was afraid of heavy penalty and rushed to clear out their holdings and

At Chicago Booth, team work and collaboration are applied insider and outside of classroom. Identify what you believe is the greatest asset you will bring to a team here at Chicago.
I'll say again that the reason Chicago asks this question is to learn about how you work *on a team* - a small group of people working toward a common goal. They're not looking for an "I did this, I did this, I did this" individual-achievement kind of essay - after all, that's all about you, not the team. Describing the details of a project is less important than describing *how you get things done* on a team and *why you do things that way* on a team. What role you play on a team and which one you do best: high-level overview person, or low-level detail person? the person who spurs the team forward, or the person who makes them pause to consider the direction they're going? the one who causes creative tension to keep everyone's thinking fresh, or the one who calms tensions and resolves conflicts between team members and brings harmony to the group? are you particularly good at handling political issues within the group, or cultural issues, and are able to approach each team member according to each one's strengths and motivations? There are many aspects to working within a group of people; at which one aspect are you at your best, and can you provide a quick example showing that while explaining why you do things that way? The admissions committee wants to come away from reading this essay knowing how you would fit within a business school class team or project team. (If I went to your place of work and asked someone about your role on a typical team, about what your best team quality is, what would they say? What incident would they use to show that?)