Meiling meets Sakura and the others at the park, revealing that she knows all about the Clow Cards and intends to participate in the captures. Sakura, however, isn't interested in competing at all. It begins a long trend of Meiling forever trying to one-up Sakura at a number of things, though she rarely succeeds. Meiling is just as competitive as Syaoran, and indirectly challenges Sakura to a gymnastics competition. It's only after he makes it clear he won't return home without the Cards that Meiling decides she will get involved and 'help', so that he can collect them faster. She reminds him that a fortune-teller in Hong Kong predicted someone else would get them, a reminder that clearly grates on his nerves.
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He explains that he's not going back until he gets the Clow Cards, but she doesn't particularly care about that. Syaoran asks Meiling why she came, and she answers that she was lonely for him. Meiling is quick to add that she is actually his fiancee, and obviously believes Sakura wants to take Syaoran away from her. Terada explains that she is from Hong Kong and cousin to Syaoran. When Meiling enters the room, it's clear that her presence has exhausted him and he is desperate to escape it. When Syaoran enters the room, he's markedly pale and haggard compared to his usual tough-and-healthy look. Syaoran invites the girls over to his place so Sakura can change into dry clothes, but to everybody’s surprise, a Chinese girl enters the apartment and leaps on Syaoran with a hug. Sakura is rewarded with the book and a new card, but accidentally plunges into the river, taking Syaoran with her. Kero reveals it’s the work of the Move card and for the first time, thanks to Move's unpredictable actions, Sakura is forced to rely solely upon her magical senses to catch a card. The book eventually appears outside the library where they meet Syaoran who is also after the book. The book Sakura needs for her book report is missing so Sakura and Tomoyo search the library, but notice the book disappearing and reappearing in different places.
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There, they meet Syaoran who refuses to share a library cubicle with them because his fortune predicted bad luck with women.
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Making a deal with her brother and Kero to help her, Sakura is left with only a book report and meets with Tomoyo at the library. The summer holidays are coming to an end and Sakura still has a lot of summer vacation homework to do.
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Thanks to Syaoran's constant derogatory remarks, Sakura is left feeling upset after a card capture for the first time. He instruct Sakura to use the Shadow card to encage the Thunder card so it could be captured. Syaoran demonstrates his command over elemental magic and calls on thunder god to return the Thunder card to its original form. The same lighting storm for earlier appears and Sakura deploys to battle the Thunder card. Cerberus explains Syaoran is from the Li clan, a famous family of Chinese sorcerers from which Clow's mother came. On the way home, there is a lighting storm, but no rain. He terrifies Sakura with his glares all day and during recess, he demands Sakura to give him the Clow Cards. A new transfer student arrives from Hong Kong named Syaoran Li and is seated behind Sakura. She hears from both Cerberus and Yukito that it might be a "foretelling dream". Sakura has the same recurring dream she had in episode one, specifically focusing on the boy wielding a sword in Chinese clothing.