Chapter 696 Cashing Out and Overseas Listing Issues
On May 18, 1999, the fifth day after the embassy was bombed, Fan Wubing arrived in New York.
Today the Nasdaq index closed at 2,577 points, an increase of nearly 17% from the 2,200 points at the beginning of the year, but investors' enthusiasm has not diminished at all.
In fact, due to the impact of the EU's intervention in Kosovo and the impact of the economic crisis in Southeast Asia, hot money from these two places began to continue to flow to the US market, thus causing a surge of hot money in the US stock market. In a short period of time, as The Nasdaq market, where high-tech stocks gather, has gathered trillions of dollars in financial speculation and investment capital, and the current total market value of the Nasdaq market has exceeded three trillion U.S. dollars.
"What is the driving force to maintain a market that continues to rise?" Song Yuanping talked to Fan Wubing. "It may be the profit growth of listed companies, currency inflation, changes in supply and demand relationships such as currency supply and liquidity. , investment concepts change, or a large amount of money enters the stock market, or the value of cyclical fluctuations returns, or the group goes crazy. Looking at the current situation of Nasdaq, I think the main thing is the influx of hot money and the madness of the group.”
Fan Wubing nodded slightly and smiled, holding the coffee cup in front of him and slowly turning it on the table.
The headquarters of Fan Investment Group in New York is located on the top floor of a more than 70-story business building about one kilometer away from the World Trade Center. Standing in front of the floor-to-ceiling windows, you can clearly see the situation on the opposite side. But compared with the World Trade Center Twin Towers, although my building is considered a nearby high-rise building, it is still inferior.
The World Trade Center is one of the most important masterpieces of the famous architectural artist Yamasaki. It covers an area of 16 acres and is composed of seven buildings. Among them, the Twin Towers are two buildings with the same appearance and a height of 100 The ten-story twin towers are about 412 meters high.
The center's main business is to control international trade such as import and export. It is responsible for the development of U.S. international trade, accounting for 15% of U.S. import and export trade. In addition to trading companies, there are also public and private institutions such as transportation companies, communications agencies, banks, insurance companies, and customs. All activities related to trade and ports are concentrated here. There are about 1,200 companies in the center. It has more than 50,000 employees and 80,000 visitors every day.
In this world's leading high-rise building, there are also 22.2 restaurants, cafes and fast food bars as well as three large parking spots. The most famous of them is the World Restaurant, which is the same height as the observation deck. You can dine here. You can have a panoramic view of Manhattan, which is very pleasant.
Seeing Fan Wubing looking at the World Trade Center opposite with a smile, Song Yuanping said with a smile, "I was a little surprised at first. Why doesn't a company as big as Fan Investment Group move into the World Trade Center? But just think about it. I’m relieved. I won’t be able to get to the top when I get there. I guess Fan doesn’t want to be stepped on by others, right?”
"Ha ha,
There is some truth in your opinion, but it is not the key point. If you want to know why, wait two years before reading this. Fan Wubing laughed and said to Song Yuanping.
Song Yuanping felt a little baffled after hearing Fan Wubing's words. He couldn't help but take another look at the Twin Towers opposite, but he didn't feel that there was any sign of a change in the Feng Shui opposite. Why did Fan Wubing say so firmly that he would wait two years before watching? From what he said, it seemed that the feng shui of the Twin Towers would come to an end in two years, which was really strange.
The building where Fan Investment Group is now located is also good. The environment here is good and the scenery is good. The only shortcoming is that the twin towers are too popular and obscure the brilliance of other buildings. If it is over there If it can be pushed down, the effect will be completely different.
"By the way, how much money has been cashed out so far?" Fan Wubing asked casually.
In the room, in addition to Song Yuanping, there were also several senior executives of the company based in New York. After hearing this, someone replied, "Including investments on the Nasdaq market, the current cash-out funds have exceeded US$500 billion. , You must know that the original investment in this part was only more than 40 billion, which can be said to be a huge gain. The remaining more than 300 billion US dollars are planned to be gradually cashed out within six months. "
Fan Wubing nodded and thought that in half a year, this part of the funds will probably grow to 600 billion U.S. dollars. If he gradually cashes out, he will probably be able to get back around 500 billion U.S. dollars. This investment in U.S. stocks can be said to be a big investment. Despite the complete victory, the financial management efficiency of American companies still deserves recognition.
In fact, when Fan Wubing left the United States, he did not have such a large amount of funds. However, he later engaged in several speculations and the funds snowballed, leading to the scale he has today. Counting all the investments he has made around the world, Various real estate resources and mineral resources, and his own assets distributed in other regions are about 200 billion, which means that his total assets after cashing out can now exceed 1200 billion US dollars.
This achievement is indeed something to be proud of. In comparison, Bill Gates's considerable assets are just over 80 billion US dollars at this time. By the peak next year, they will probably be able to break through At the 100 billion US dollar mark, this was already his richest time, and he never exceeded the data at this time.
The so-called world's richest man, at his richest, was not even one-tenth of Fan Wubing's assets.
"What instructions does Mr. Fan have for the development after the withdrawal of funds?" Everyone is very interested in Fan Wubing's later layout. After all, the decision of a super-rich man can often change the world's economic structure.
Fan Wubing touched his nose and said, "For the time being, the main focus is still on investing in mineral resources in various places. Whether it is non-ferrous metals, oil and natural gas, or coal and iron resources, we need to invest heavily. The investment limit in this area is 500 billion US dollars. It is enough to reach this level. This is a means of long-term profit. It is safe and secure, and much more stable than the stock market."
Although it is not far-sighted, it is certain that mineral resources are becoming increasingly scarce. In addition, everyone's attention is now focused on the stock market and high-tech companies, and hot money has gone to the United States. It is extremely far-sighted to buy the bottom of the mineral resources market now. By the time everyone reacts, it will be unprofitable.
In fact, Fan Wubing invested in Australian iron ore with this in mind.
There are a lot of mineral resources all over the world, and a lot of money needs to be invested, but the profits are huge and the room for appreciation is huge. It is the best way to increase value and preserve value. Fan Wubing does not want to put such a huge amount of money in the stock market, and finally turn it into a pile of waste paper. Even if it is invested in the real estate market, it is not the most reliable guarantee.
"In addition to the mineral resource market, I think the telecommunications industry is also worth investing in." Song Yuanping proposed to Fan Wubing, "Although the telecommunications industry in developed countries is mature, it is still operating at a low level in China or in some developing countries. If we can choose some countries for equity cooperation, I believe the returns will be very generous."
Fan Wubing is very sure of Song Yuanping's proposal. In fact, he prefers to invest in the telecommunications industry in Russia and Mexico. The future evidence of these two countries is relatively stable, and as Song Yuanping said, their telecommunications industry is about to enter an era of stable development, and the market prospects are excellent.
But there are also some problems here, that is, how to deal with the Russian market, which requires negotiating conditions with the highest authorities. When Fan Wubing thought of this, he felt that while Yeltsin was visiting China, he should rush back to meet the Russian president who was about to retire due to illness, and then take some time to get close to Putin and discuss this matter.
Russia is now at a critical moment when it needs to introduce a large amount of foreign investment. If I, a big money sponsor, go there, I believe it will be very popular. After all, the attitude of the international community towards Russia is relatively repressive now. If they want to get investment from the West, they need to pay a higher price, which is far less costly than cooperating with me.
Then Fan Wubing mentioned the arrangement of the overseas listing of the three major portals. After all, it is the best time to go public and hype the concept of Chinese network portals. It is difficult to reach the current level at any other time. Moreover, if it is listed at this time, it can be sold before the bubble of Internet stocks bursts. After the bubble bursts, when the stock price is running low, it can repurchase shares, which is the most appropriate.
If a company wants to be listed on the Nasdaq small capital market, it can apply to the United States as long as it meets three conditions and one principle; the prerequisite is that the company is engaged in biochemistry, biotechnology, medicine, technology (hardware, software, semiconductors, network and communication equipment), franchising, manufacturing and retail chain services, and has been economically active for more than one year, and has high growth and development potential.
The second is that the net value of tangible assets is more than US$5 million, or the net profit before tax in the most recent year is more than US$750,000, or the pre-tax income in two of the last three years is more than US$750,000, or the company's capital market value is more than US$50 million.
In addition, after the SE review is passed, there must be more than 300 public shareholders, and a holding company can be established abroad. The original shareholders must have more than 300 people to be listed. The so-called public shareholding, according to the US Securities and Exchange Commission manual, the number of shares held by public shareholders must be more than a whole share, and a whole share in the United States is the basic circulation unit of 100 shares.
As for a principle, it is the principle of good faith. A popular slang in Nasdaq translates to any company can be listed, but time will prove everything. This means that as long as the company applying for it adheres to the principle of good faith, it is only a matter of time before it is listed, but time and good faith will determine everything.
The Nasdaq market in the United States is divided into two markets, one is called the national market and the other is called the small capital market. The national market is divided into two types of companies, one is profitable companies and the other is unprofitable companies.
As far as the national market is concerned, the net asset value of profitable companies is required to be more than 4 million US dollars, and the net asset value of unprofitable companies is required to be more than 12 million US dollars. After-tax profit requires profitable companies to have a net income of 400,000 US dollars in the latest fiscal year or two fiscal years in the previous three years, and there is no net income requirement for unprofitable companies.
Regarding the public shareholding, any company, no matter where it is listed and circulated, must consider the public shareholding. Generally, according to international practice, the public shareholding should be more than one-quarter.
Without sufficient public shareholding, there will be no good liquidity, and the market price will be very low. Once the market price is low, no company is willing to trade or can trade stocks in your market. If this is the case, your market cannot be used.
Of course, the domestic Securities Law stipulates that companies must meet three consecutive years of profit records and a total share capital of 50 million shares before they can go public. For a startup company, it is very difficult to meet the first two conditions. That is why everyone wants to go public on Nasdaq. This is the reason. Relatively speaking, the listing conditions there are much more relaxed.
The institutional defects and malpractices in the capital market in mainland China have continued for many years, which not only frustrated the financing function of the main board market, but also curbed the survival and development of innovative small and medium-sized enterprises, becoming the biggest bottleneck for the combination of mainland high-tech enterprises and social capital.
High-tech enterprises have their own financing characteristics. Although the US Nasdaq has set a model for it, domestic senior officials have always had doubts about it, which has made the launch of the domestic GEM a thunderbolt without a drop of rain.
This year, the Nasdaq market is in full swing, and a large number of new wealth myths such as Microsoft and Yahoo have come into being. Hong Kong, separated from Shenzhen by a river, is also making intensive preparations to officially launch the GEM at the end of the year.
Not long ago, the State Council issued the "Decision on Strengthening Technological Innovation, Developing High Technology, and Realizing Industrialization", which stated that it would cultivate a capital market that is conducive to the development of high-tech industries, give priority to supporting qualified high-tech enterprises to enter the domestic and international capital markets, and set up a high-tech board in the current Shanghai and Shenzhen Stock Exchanges at an appropriate time.
This decision of the State Council is regarded as a landmark beginning of the mainland's preparation for the GEM. Although the Shenzhen Stock Exchange and academia have already discussed this several times before, the launch of the GEM has always been a long way off.