Chapter 607: Getting on the Crazy Three-Horse Carriage

However, Fan Wubing was also a little curious. If Song Yuanping had a lot of corporate shares, he could wait for them to be listed and circulated, and he would make a steady profit. Why would he mortgage them to others?

From this point of view, there is only one possibility, that is, Song Yuanping and Cui Dingshan invested too much in the disease chicken stock of Kangcheng Technology, otherwise he would never have taken out such a good thing.

"Could it be that you have invested a lot in Kangcheng Technology?" Fan Wubing asked.

"To be honest, for this stock, I not only invested all my cash, but also borrowed 200 million from others. If it cannot be revived in a short period of time, the losses of Cui Dingshan and I will add up to 700 to 800 million. At that time, no one will come to collect debts, and I will jump off the building." Song Yuanping said bitterly.

Fan Wubing still felt a little skeptical, so he asked, "I see that your style is also quite ruthless, but you are not without room for maneuver. Why did you fall so deeply this time?"

"It's mainly because of the estimation of the situation. There is a little deviation. I originally expected that the market should have come out of the trough and started a slow bull trend. But now the US stock market is booming, but the domestic stock market still hasn't improved much. Except for a few individual stocks, most of them are still silent." Song Yuanping replied, "But I can also conclude that the opportunity will not be too far away. At most, within half a year, the market will definitely rise again. At that time, it will be a good time to ship. So now I am in a hurry to raise money everywhere and start to slowly pull up Kangcheng Technology. At that time, with some good news, this sitting will be successfully completed."

After listening to Song Yuanping's analysis, Fan Wubing nodded, thinking that this person's analysis of the general trend is still relatively accurate. Indeed, in just half a year, the market has created an astonishing 5.19 market and started on the road to a bull market.

On May 19, 1999, when the market officially started, it was relatively calm in the morning, but a large amount of funds poured in in the afternoon. That is to say, from that day on, the market continued to rise for a month. In 31 days, the Shenzhen Index rose by 90%, and basically all stocks had a profit of more than 70%. The reason for this rise was that the six policy suggestions submitted by the China Securities Regulatory Commission to the State Council that year were approved.

The mainland stock market has experienced a consolidation market for nearly two years, and the overall situation has been declining. Many stocks and funds have also fallen below the market price one after another.

This kind of decline was rare at that time. What should the China Securities Regulatory Commission do about it? There were two views at that time. One view was that there should be no intervention. The China Securities Regulatory Commission only supervises, and the market is not related to it. However, after careful investigation, research and analysis, the leadership of the China Securities Regulatory Commission held another view, that is, the securities regulatory authorities should not let the decline go, but should take effective policy measures actively, clearly and resolutely to promote the healthy development of the market.

In the view of the leadership,

the capital market is an important part of the socialist market economy. If the market is sluggish, the capital market cannot function. Only when the market develops can it function. In fact, the reason is very simple. If you lose money when buying stocks and get stuck when buying stocks, who would buy them?

The market continues to be sluggish, which makes it difficult for new stocks to be issued, which is not conducive to the function of the capital market, supporting the reform of state-owned enterprises, and establishing a modern enterprise system. Investors are generally stuck and suffer serious losses, which is not conducive to improving people's living standards and protecting the interests of the masses, and at the same time affects investor confidence.

In general, the development of China's capital market requires correct policy support and correct public opinion guidance. Compared with developed capital markets, the domestic capital market has been established and developed for a short time, and the system, mechanism, and legal system are not perfect. If we do not actively and continuously improve them, we cannot promote the healthy development of the market.

Therefore, after weighing the pros and cons, the China Securities Regulatory Commission felt that the government could not use policies to guide and support the stock market. This statement is really not suitable for the domestic situation, so it launched six policies that triggered the 5.19 market.

According to the current policy trend, the submission and approval of this policy will obviously reappear, so Fan Wubing has no doubt that the 5.19 market will appear like the history he is familiar with. There may be some differences in time, but it will definitely not be too different. After all, the stock indexes of the two cities have been consolidating at a low level for two years, and they have reached the critical point where they should explode.

On the other hand, there is no stock market in the world that only falls but never rises. That would be too evil. The government will never allow this situation to happen. After all, the stock market is the barometer of the national economy. If the stock market is always cloudy, then the government’s face problem will not look good. In any case, the rise will definitely explode.

"Corporate shares, um." Fan Wubing nodded, thinking that the value of this kind of thing is difficult to estimate, so he asked, "Which company's corporate shares are they?"

"Xiang Torch, 20 million shares." Song Yuanping said to Fan Wubing.

Although Fan Wubing knew that the chips in Song Yuanping's hands must be very valuable, when he heard him say that these were corporate shares of Xiang Torch, he couldn't help but be stunned for a moment, and then he was a little surprised.

Xiang Torch, one of the three pillars of the Delong Group. I never thought that Song Yuanping actually had 20 million shares of Xiang Torch in his hands. This person really made Fan Wubing look at him in a new light. I didn't expect that he would actually take advantage of Tang Wanxin's success.

Tang Wanxin, a representative of the Delong Group who is very influential in the domestic capital market, also started his family with the Shenzhen subscription certificate incident. At that time, he spent money to hire 5,000 people to take a train from Urumqi to Shenzhen to queue up for the subscription lottery ticket. Each of these people had a small wooden stool and queued for 50 yuan a day for labor fees. They queued for three days. The lottery tickets they received were exchanged for original shares, which made Tang Wanxin a big profit.

He and his elder brother Tang Wanli and others registered and established Xinjiang Delong Industrial Company, which specializes in stock operations in the capital market. They purchased a large number of original shares and internal employee shares of state-owned enterprises in Xinjiang, Shaanxi and other northwestern provinces, and either resold them to financial institutions in Xinjiang or sold them off after listing.

However, unlike other bookmakers, Tang Wanxin has his own business ideals. In his view, the global industrial structure is undergoing a huge evolution, and China is undoubtedly the most important link. Many traditional industries have opportunities for rapid expansion, but due to the backward system and concepts, most Chinese companies are small in scale, with scattered investments and no competitiveness. Therefore, optimizing and integrating it through capital management and revitalizing the stock will be the hope for China's economic take-off.

Tang Wanxin has successively become the largest shareholder of Xinjiang Tunhe, Shenyang Alloy and Xiang Torch, three listed companies, by purchasing corporate shares, forming the so-called "three horses" of the Delong Group.

Then, according to his own business philosophy, he implemented a strategic reorganization of these three old state-owned enterprises. Taking Xiang Torch as an example, this company was originally just an old company that produced spark plugs. Tang Wanxin proposed a large auto parts strategy. First, he acquired 75% of the equity of MAT, the largest brake system importer in the United States, and its nine joint ventures in China, thereby obtaining a certain share of the US auto parts import market, and then controlled an automobile gear company in Shaanxi, becoming a professional domestic leading enterprise in this industry. Immediately afterwards, Xiang Torch issued announcements one after another, and carried out various reorganizations and joint ventures with Dongfeng Motor, Shaanxi Automobile Group, and Sinotruk Group. Finally, Xiang Torch has more than 50 subsidiaries, becoming the largest enterprise in the three industries of gears, spark plugs, and military off-road vehicles in China. It is also the second largest manufacturer of air-conditioning compressors and the largest exporter of automotive brake systems.

Of course, Delong needs a lot of money to complete this series of mergers and acquisitions. Where does the money come from? It depends on speculation.

Delong's skills of manipulating the market are actually very simple. Tang Wanxin raises the stock price step by step by constantly releasing good news and integration and restructuring concepts, and then makes profits from it. Since 1996, the stock prices of Delong's "three horses" have been rising all the way. When the 5.19 market came, the Delong system was even more crazy, running wildly in the Chinese stock market, setting a record of soaring that shocked tens of millions of shareholders.

Later, after three transfers of Xianghuo Torch, the stock price per share rose from 7.6 to 85 yuan after adjustment, and the increase of Hejin shares was 15 times. Xinjiang Tunhe also sent several bonus shares, and the stock price after adjustment rose 11 times.

Three stocks controlled by a dealer all rose more than ten times in five years. The whole country looked at it, and there was no one else. Delong thus created the prominent name of the world's number one dealer. So for a long time, the stock is not good, but the reputation is good, the price is not afraid of high, and the long is effective, which has almost become the only way for Chinese stock investors to make money. The dealers of the Delong Group have made a total profit of more than 5 billion from this kind of dealer activity.

"You also cooperate with Tang Wanxin?" Fan Wubing calmed down after calming down and asked Song Yuanping.

He originally thought that Song Yuanping was fighting alone, but he didn't expect that Song Yuanping could actually cooperate with the more ferocious dealer Tang Wanxin, and also control 20 million corporate shares of Xiang Torch, one of the three horses of the Delong Group. It was really a bit unexpected.

He originally thought that these dealers were playing their own games, but he didn't expect that they actually joined forces. Song Yuanping, who has taken the troika, cooperated with Tang Wanxin. What kind of changes can it bring to the Chinese stock market? This change is really a bit difficult to predict.