Chapter 613 Discussion

Song Yuanping did not go back. He still had many things to talk to Fan Wubing, so the two simply stopped sleeping and stayed at the company headquarters, drinking tea and talking about the stock market.

"Personally, I don't like the domestic stock market. The policies here are too strong, and every stock is filled with cheating techniques. It looks disgusting. Even some policies introduced at the government level. It is also often objectionable, too utilitarian, and does not take into account the feelings of ordinary investors," Fan Wubing told Song Yuanping.

"The market is chaotic and supervision is weak. These are the prerequisites for being a banker." Song Yuanping replied with a smile, "If the market management mechanism is perfect and supervision is strong, we bankers will have nothing to eat."

When it comes to the domestic policy market, the two of them have a common view on this point. They believe that in terms of operation, the domestic stock market is probably unrivaled in the world.

For example, take the 327 Treasury Bond Futures Incident that occurred in February 1995.

327 is the code name for the three-year treasury bonds issued in 1992. The 24 billion yuan 327 treasury bonds matured in June 1995. The coupon interest plus the value-preserving subsidy rate means that every 100 yuan of bonds matures. One hundred and thirty two dollars should be paid. However, the price of 327 treasury bonds has been fluctuating around 148 yuan, because a theory circulating in the market is that the Ministry of Finance believes that compared with bank savings deposit interest rates in the same period, the return of 327 is too low, and it may increase in time. Interest rate, payable at face value of one hundred and forty-eight dollars.

Supporting this statement is China Economic Development Co., Ltd., a wholly-owned subsidiary of the Ministry of Finance that does a lot of 327 varieties. Its chairman is the former deputy minister of the Ministry of Finance. Its successive general managers are all from the Ministry of Finance. The general manager at that time was also the former deputy minister of the Ministry of Finance. Director of the Comprehensive Planning Department of the Ministry of Finance, anyone with a little knowledge of national conditions will follow China Economic Development Bank to do more, at least they will not fight against it.

However, Guan Jinsheng, the general manager of Wanguo Securities Company, disagrees. He believes that asking the Ministry of Finance to spend 1.6 billion to subsidize 327 is undoubtedly a fantasy.

As a result, the Ministry of Finance actually announced the increase in the interest rate of 327 Treasury bonds. Guan Jinsheng was desperate and illegally sold orders worth 140 billion eight minutes before the market closed in the afternoon, causing the price of 327 Treasury bond futures to plummet.

That night, the Shanghai Stock Exchange canceled the last illegal transaction, and Wanguo Securities suddenly lost 1.3 billion.

In this incident, although China Economic Development Zone was the big winner, the profit that flowed into the books was not even 100 million. Where the huge wealth was transferred is still a mystery. The person in charge of this business at China Economic Development and Development Corporation at the time was assassinated in Beijing at the end of that year and almost died. After that, he recuperated for a long time, and his whereabouts are unknown since then.

The 327 incident was the second disaster to affect the development of China's securities market after the Shenzhen subscription certificate incident.

All of them exposed the systemic corruption and chaos in China's stock market, which really touched the nerves of the government for fear of social instability, and greatly hindered the development of new products in the securities market, especially derivatives.

Song Yuanping told Fan Wubing, "In 1996, the Shenzhen stock market had more investment value than the Shanghai stock market. The Shenzhen stock market's price-to-earnings ratio was only eight times, while the Shanghai stock market's lowest price-to-earnings ratio was 26 times. At that time, the two The local government has linked the stock index to the financial center. It seems that whoever's stock market rises faster will be the financial center of the country. Therefore, from the city government to the banks to the exchanges to some securities firms to some listed companies to the local securities media, almost everyone. How open collusion brought the stock market up.”

In the past, the tax revenue and image of the exchanges in both places were valued by the local governments, and it was natural to support and help the stock market. However, this is the first time such a large-scale direct intervention in the stock market has occurred.

In Shanghai, the city leaders directly commanded, and their mobilization speeches were delivered to the securities firms by the editor-in-chief of the Shanghai Securities News. Originally, the only way to encourage the market was to write something full of hints or paraphrase what others said, and it would not indicate the rise or fall of individual stocks. But at that time, they didn't care about anything and allowed brokers to write undisguised articles in newspapers to cooperate with their own stock market making, which was a taboo for running newspapers.

Song Yuanping said, “In order to find a leading stock on the Shanghai stock market that could compete with Shenzhen Development Bank, Shanghai first launched Shanghai Petrochemical, and later launched Liujiazui. The motivation for the speculation in Liujiazui not only came from the imagination of the brilliant prospects of the Pudong Financial and Trade Zone However, one afternoon, six companies sent an announcement of major events, and its distribution plan was much lower than market expectations. At that time, I was working for a newspaper as an editorial board member. Night shift, when I saw this announcement, I knew that Lujiazui would definitely fall sharply tomorrow. But at 7 or 8 o'clock in the evening, we suddenly received a notice from the Shanghai Stock Exchange to take down the announcement that had been put on the page. Some people have informed the Shanghai Stock Exchange and even the government of the stakes. They did not hesitate to change the decision of the company's board of directors in order to make the market soar. This shows the chaos at that time. By the way, the leading stocks confirmed by the government were not recognized by the market. The market still chose Changhong, the color TV king at the time.”

Faced with such a scene, Beijing certainly had to act. As the Shenzhen and Shanghai market exploded again in October 1996, the China Securities Regulatory Commission began to publish a series of notices and comments, warning all aspects of the market not to engage in financing transactions, strictly prohibiting market manipulation, and investigating and punishing institutional violations. According to the People's Daily The editorial appeared on the front page and was read out on CCTV's "News Network" as an exception the night before.

The "Shanghai Securities News" and "Securities Times", which represent the positions of the two exchanges, were so stupid that they ignored this important editorial and did not reprint it in time. Beijing, already disgusted with these two newspapers, suspended two deputy editors for inspection and suspended their status as a designated newspaper for information disclosure by listed companies for a month.

It doesn't matter if you sacrifice a deputy editor. This is something that the media often does, but the latter will cut off the financial resources of the securities newspapers. Without the monopoly of designated information disclosure, the two newspapers will have to close down. From then on, the two securities newspapers began to obediently follow the baton of the China Securities Regulatory Commission.

However, the markets in Shenzhen and Shanghai have already been in a state of excitement. Every time they are suppressed, the stock index can only make a slight correction, and then move forward bravely. The market seems to be numb to the policy negatives that it is most afraid of.

Finally, "Xinwen Lianbo" read out the full text of the special commentator's article "Correctly Understand the Current Stock Market" that will be published in "People's Daily" the next day. The article pointed out that the current rise in the two cities is abnormal and irrational.

As usual, it is a serious matter for a special commentator's article to be published in the "People's Daily". The day before, the management had telegraphed this article to all provinces, municipalities, autonomous regions, and ministries to say hello in advance. This is extremely extreme. Unusual behavior.

The article's harsh tone and sharp words, such as "shooting oneself in the foot" and "removing the 'bad apples' that disrupt market order from the securities market," are all reminiscent of political storms in the past.

The next day, except for one new stock, all 610 stocks and funds fell to their limit, and the next day they all fell to their limit again. At this time, the management felt scared again and hurriedly lowered their profile and talked about how they loved the stock market, that the Chinese stock market was still bright, and so on.

On the third day, after the stock market opened sharply lower, funds entered the market to buy the bottom and stabilize the market.

"In short, the management can do whatever they want, why can't we?" Song Yuanping said to Fan Wubing, "From some aspects, we at least follow the rules of the stock market, and we must pay for both buying and selling. It's better to pay taxes than some people who can make a lot of money just by flipping their mouths up and down, right? It’s taxable!”

Fan Wubing scratched his head and said, "Well, in essence, the so-called bankrolling is nothing more than big funds raising many little vests. There doesn't seem to be anything wrong with this, but the regulators say you are wrong, so you are No, you don't have the ability to defeat others, why don't you just admit defeat? The rules are set by others, and you only have to abide by them. Even if you can find the bug and use it to defeat the boss, they can also clearly stipulate that it is not allowed. Using bugs to fight against ss is still in vain!"

"I'm just not convinced by this, so I want to be the banker myself. I must build a high-priced stock under the eyes of the regulators, and then leave after making enough money. The government puts more emphasis on the regulation of the stock market, but it focuses on It is mainly investment behavior, but it is open to listed companies and intermediaries. What is a listed company? It blindly emphasizes that there should be no thieves and scammers in the store, but sells fake, substandard and counterfeit goods. What does it mean to give it to customers?" Song Yuanping said to Fan Wubing, "Why can others do this but I can't do this?"

"Look, this is just a pointless dispute." Fan Wubing sighed, "It is precisely because the water in the domestic stock market is very muddy that I am unwilling to get involved in it. The affairs of the yamen, you It is impossible to participate in it, so if something goes wrong, those of you who have no backing will be shot. Unless you yourself sell yourself to those big forces, otherwise, what is waiting for you is handcuffs and jail cells. There is no doubt about it.”

Although Song Yuanping felt that Fan Wubing's words were reasonable, he was still a little unconvinced, but thinking that he was about to go to the United States to earn US dollars, and that there was a large amount of funds authorized by Fan Wubing, he thought of his annual salary of 100 million yuan. With a 1% dividend, I feel like my money has unlimited future.

"Haha, it's just a complaint. From now on I am going to make money from American investors!" Song Yuanping smiled at Fan Wubing.

"I hope you can earn more. The more you earn, the more you will share." Fan Wubing nodded and replied, "But don't worry, I have many legal experts over there, and I guarantee that I won't let you Suffered a loss."

Song Yuanping also nodded to express his understanding. After all, safety is the most important thing when you are abroad, and you can always make enough money.