Chapter 432: Concerns of the Top Management
Chapter 432: Concerns of Senior Management
At the end of 1996, the stock market plummeted, and angry investors teared up the People's Day.
What’s more, the country’s stock market has neither a bull market nor a bear market. It is a pig (zhu) market. Boss Zhu seemed very calm about this. Don't use curse words when you curse!
Reform is the adjustment of interests. If there are fewer interests, people will be scolded when they have leisure. If you have too many benefits, it’s too late to make money, and you don’t have time to say thank you.
For the whole year, GDP grew by 9.6%. The national economy has successfully achieved soft growth, suppressing inflation while maintaining rapid economic growth. Foreigners know their stuff, and they are frightened that China has passed this critical moment. They think Boss Zhu really deserves the Nobel Prize in Economics.
It was also in this year that the country's steel production finally exceeded the 100 million tons mark, ranking first in the world.
At this time, the U.S. economy was not called a new economy. Since the 1970s, Keynesian theory had failed, and the stagflation problem of high inflation and low growth had been plaguing the governments of various developed countries.
Therefore, China's economic success has received extremely high praise internationally. At home, few people in the economics community have questioned the success of China's economy, and the domestic economics community has been jokingly said that ten people can come up with eleven different opinions.
Since 1993, China's economy has been like a thin pony, pulling a cart at high speed under the influence of stimulants. If it does not stop as soon as possible, once the drug wears off, both the horse and the cart will crash. fall.
But how can we stop this thin horse without suffering a myocardial infarction? Domestic leaders have no successful experience and the lessons of failure are just around the corner. The governance reforms that began at the end of eight years have certainly brought the inflation rate from 18% to 18%. 8 dropped to 3.1 percent in 1990, but the economic growth rate also dropped from 11.3 percent to 3.8 percent.
The three-year inflation rate is 14.7%, approaching the highest record in 1988. The common people have once again had the urge to buy goods, and the phenomenon of hoarding US dollars, gold and high-quality durable consumer goods has become increasingly common.
The car had already stepped on hard in the second half of 1993. But the situation in 1994 looked even worse. GDP growth rate fell by one point. The inflation rate jumped more than six points to 24 percent. The record was set in one fell swoop.
The old method of issuing orders is certainly effective. But it is both taxing and only effective for a short time. Boss Zhu decided to use market means to regulate the economy. He summarized the experience of the economic ups and downs in the 1980s and tried to control the bubble economy. In order to maintain sufficient economic growth, Soft 6 has become his clear policy.
The so-called soft touch 6. That is, the economy should not drop all of a sudden.
Regulation should be carried out gradually. Why was inflation worse in 1994 than in 1993? Because that's the way to soft land 6. There won’t be immediate results. Inflation will continue for some time because the heating trend has been eased.
Monetary tightening completely cuts off the source of funds for speculation and real estate bubbles. However, basic production, especially normal production in poverty-stricken western regions, is guaranteed. Macroeconomic control will cause overheated and excessive funds concentrated in coastal areas to flow back to their original places. This approach both reduces inflation and maintains necessary economic growth.
At that time, falling prices coincided with tight corporate liquidity and declining investment. As a result, differences in the economic community began to become apparent. Economists represented by Wu Jing~ and Liu Guoguang advocated continued tightening. Another group of economists, represented by Li Yining and Dong Fu, believe that the economy has become colder. Advocate for loosening monetary policy. Others have proposed expanding infrastructure investment to stimulate demand. Boss Zhu’s opinion is that we still need to prevent overheating. He also publicly criticized Li Yining. It is proposed to continue to be moderately tight. Prevent overheating and prevent resurgence of inflation.
The results of soft landing are obvious to all. Of course, there are also regrets about local problems. For example, the food issue was not handled well. As a result of the reform of the fiscal and taxation system, Dazhou areas benefited more. The financial situation of backward regions has deteriorated. Finance is too concentrated. Financial instruments are too tight. Private finance has been completely shut down. Rural finance has clearly gone too far. Also, the commercialization reform of state-owned banks is very correct. But the reform of state-owned enterprises has not kept up. Therefore, we have to be open to state-owned enterprises in terms of loans. This has compromised banking reform.
At the Christmas company party at the end of 1996, Fan Wubing summarized the work of Fan Investment Group and believed that this year's income, development and expansion were gratifying, and the assets of the entire group had improved. The relatively large growth has become the biggest winner of the domestic economic adjustment in 1996.
Although financial policies have tightened, many companies have been affected, and the pace of development has been forced to a halt, but it is good news for Fan Investment Group. Fan Wubing is most in need of funds, so he has invested in the company during the year. A large amount of investment has increased domestically, and its companies have also developed in depth, investing more than 20 billion in development funds in one year.
Along with the vigorous development of the enterprise, the group's gross profit increased rapidly.
The profits have exceeded 40 billion, and this only refers to domestic enterprises.
In just a few years, Fan Investment Group has grown into a giant among domestic private enterprises.
Since Fan Wubing returned to China in 1991, he has been engaged in a five-year battle to gain a foothold in China's economy. It can be said that he has finally succeeded.
During this period, Qin Rushan, the boss of Hong Kong Minghui Industrial, met with Fan Wubing in private more than a dozen times to arrange matters related to entering the Hong Kong stock market. During these six months, Fan Wubing continued to invest tens of billions of dollars. He learned about the Hong Kong stock market and futures market, and purchased some high-quality real estate for operation.
The sources of this batch of funds were all from abroad entering the Hong Kong market, so the domestic side did not know much about it. However, Qin Rushan's intensive meetings with Fan Wubing finally attracted the attention of relevant parties.
Therefore, Jiang Lue, the Minister of Security who had not seen him for many days, finally approached Fan Wubing.
Fan Wubing received Jiang Lue and his subordinates at the headquarters of his company. After serving tea, Fan Wubing asked, "It's obviously not okay for the minister to come to our company, right?"
"Get me something to eat first. What's the point of drinking tea?" Jiang Lue and Fan Wubing didn't show up and wanted to eat directly.
"Isn't that right? As a leading cadre, do you have a reason to let the common people eat? If the Central Commission for Discipline Inspection finds out about this, will you still be in your job?!" Although Fan Wubing said this with a smile, he ordered people to go A banquet has been arranged.
"The Discipline Inspection Commission can't control us." Jiang slightly snorted.
Although the Ministry of Security is just an organization organized by ordinary ministries, its power is a bit enviable. The powers of the Central Commission for Discipline Inspection and theirs overlap, but they are generally parallel to each other. Therefore, Jiang Lue is not very fond of the Central Commission for Discipline Inspection. people.
Food and drinks were served soon. Now Fan Investment Group has its own dedicated hotel, which is very convenient for eating.
Jiang Lue greeted his people to start eating, and then said to Fan Wubing who was watching them eat, "Are you very close to Qin Rushan recently?"
"In business, of course there are comings and goings -" Fan Wubing replied noncommittally.
"Isn't it just as simple as doing business?" Jiang Lue used chopsticks to pick up the red eel shreds and asked with great suspicion, "We think you are injecting a large amount of capital into the Hong Kong stock market. Who is Qin Rushan? He is just in the Hong Kong stock market. We understand this situation. "
Fan Wubing nodded and said, "So what? Hong Kong is a free port, and the flow of funds is not restricted. To put it bluntly, the stock market is an open casino, and we people are the guests who gather for gambling. Can we just wait and see if we can open a casino?" Don’t you want to be a guest?”
"The guest is bullying the host, and the senior management is worried that you will scare others." Jiang Lue stated the purpose of his trip.
Fan Wubing smiled and said that tens of billions of dollars of funds suddenly poured into the Hong Kong stock market, which would naturally cause some disturbances. Fortunately, Qin Rushan was still doing things calmly at this time. It took him more than half a year to put this matter into perspective. More than 10 billion US dollars were spent and dispersed, but it didn’t look very eye-catching.
However, Qin Rushan's frequent flights to the mainland obviously attracted the attention of both the Hong Kong and mainland governments. Following the clues, it was not difficult to find Fan Wubing behind the scenes.
The Hong Kong Monetary Authority also has its own considerations. Although the British are leaving, Hong Kong's prosperity and stability must still be maintained. This is not only the wish of the majority of Hong Kong people, but also the wishes of Hong Kong's major families and financial groups. Therefore, if there is any disturbance in the stock market, everyone's sensitive nerves will become tense.
In particular, all the major families are flirting with the mainland government, and they must have some private dealings. Everyone mentioned the need to maintain the prosperity and stability of the Hong Kong market. In fact, they want to ensure that their respective interests can continue to be recognized after 1997. and stable development.
At this time, Fan Wubing suddenly stepped in. Even the local financial groups in Hong Kong were surprised by such a large amount of funds.
Although they can't afford to offend Fan Wubing, it should be more pragmatic to pass the news to Fan Wubing through the mainland's top management. Therefore, Jiang Lue's visit this time actually represents the opinions of the top management, hoping that Fan Wubing will learn from the Hong Kong stock market. Get out.
"What the top management means is that Hong Kong people govern Hong Kong, and I hope you will not interfere in it." Jiang Lue said to Fan Wubing.
Fan Wubing touched his forehead and said, "This is so irresponsible.
The four words "Hong Kong people governing Hong Kong" are not a panacea and cannot be used everywhere. "
Regarding this point, Fan Wubing feels very unhappy. Even if the major families in Hong Kong want to rush to carve up Hong Kong's economic sphere of influence after the handover, the British are still in charge after all, right? At this time, you are using the mainland government to suppress me, are you afraid that my mood is not good enough?
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