Chapter 495 The Stock Market Crash Is Coming, Hello 1997 Great Opportunity
The last trip to Ipoh and Cameron Highlands in Malaysia made Wang Danrong and Dai Junling become good friends.
Dai Junling rented a house in Pasir Ris, which is very close to Changi Village.
After receiving Wang Danrong's call, Li Xiaofan happily walked to Changi Village Market to meet the two of them. He informed Dai Junling about his meeting with her best friend Huang Yishi during this trip to France.
…
The next day, Li Xiaofan went online and found that the management of mainland China seemed to be blowing cold wind on the overheated stock market. They successively issued regulations that were later called "Twelve Golden Medals", which roughly included: "Notice on Certain Issues Concerning the Standardization of Listed Companies' Behavior", "Stock Exchange Management Measures", "Notice on Resolutely Stopping Overdraft Behavior in Stock Issuance", etc.
The sensitive Li Xiaofan probably remembered some major events that were about to happen to mainland stocks in his previous life.
After work on Monday, December 2, Li Xiaofan instructed his secretary Liang Beni to immediately sell all the more than 50 stock fund accounts of three stocks, including Shenzhen Technology, Sichuan Changhong, and Shenzhen Development, which were fully held.
Li Xiaofan found that from the beginning of April 1996 to December 2, the Shanghai Composite Index rose by more than 120%, and the Shenzhen Component Index rose by more than 340%. There were more than 100 stocks that rose by more than 5 times. The two leading stocks, Shenzhen Development and Sichuan Changhong, were even more powerful. Shenzhen Development started at 6 yuan and reached more than 20 yuan today, December 2. Sichuan Changhong started at 7 yuan and rose to more than 27 yuan.
After the sale, the more than 50 stock fund accounts controlled by Li Xiaofan had 230 million yuan in cash, with a profit of nearly 5 times.
At 7 pm on December 15, 1996, CCTV's "News Broadcast" read out the full text of the special commentator article to be published by the "People's Daily" on December 16 the next day, entitled "Correctly Understand the Current Stock Market".
The special commentary article believes that the recent surge is abnormal and irrational. The current operating performance of listed companies cannot support such a high stock price for a long time. The "junk stocks" of a few loss-making enterprises were also hyped up to seven or eight yuan or even higher, and were called "chickens and dogs rise to heaven". It was incredible. Institutional big players manipulated the market. Banks illegally entered the market with funds. Securities institutions illegally overdrew. The news media fanned the flames. Some newspapers, radio stations, television stations, voice stations, stock commentary programs and securities consulting agencies rarely issued risk warnings, but instead blindly clamored, and some even spread rumors and misled stockholders...
The article finally pointed out that in view of the current situation, we must follow the principles of strengthening supervision, increasing supply, correct guidance, and maintaining stability, and further strengthen supervision, implement the price limit system and improve the market information disclosure system, etc....
In fact, as early as December 14, the management had sent this article to various provinces, cities, autonomous regions and ministries in the form of a telegram to give advance notice, but at that time no one knew that it would be publicly published as an article by a special commentator.
After the first broadcast on CCTV at 7 pm on December 15, it was broadcasted 6 times. But the Central People's Broadcasting Station's local news broadcasts at 8 o'clock every night on that day did not broadcast this important article in time. The situation may be that the Central Radio Station did not receive it or did not have time to record it.
But this reflects how hasty the decision to publish this article was...
After the People's Daily published the special commentator's article "Correctly Understand the Current Stock Market", the mainland stock market began to implement a 10% daily limit system on December 16, 1996. Subsequently, the stock market fell to the limit for 4 consecutive days, and fell from 1258 to 867 points in 6 trading days.
Except for the suspended stocks, almost all stocks fell to the limit for 4 consecutive days!
During these four days, the Shanghai Stock Exchange fell by 31%, the Shenzhen Stock Exchange fell by 38%, and more than 120 billion paper wealth evaporated, and stockholders across the country were in mourning.
And Li Xiaofan was lucky to escape this stock market crash.
...
Time flies, and in a blink of an eye, it is 1997, a very important year for Li Xiaofan.
On February 4, the beginning of spring, Li Xiaofan rushed back to his uncle's home in Ningdong County with a lot of gifts to celebrate the New Year with his uncle, aunt and their family.
On the night of February 6, after eating the New Year's Eve dinner, everyone sat on the sofa in the living room to watch the CCTV Spring Festival Gala in 1997, amid the deafening sound of firecrackers.
When the hosts Zhao Zhongxiang, Ni Ping, Cheng Qian, Zhu Jun, Zhou Tao and others who were in their prime came out, Li Xiaofan sighed: It turns out that time is the most precious wealth in the world!
This year's Spring Festival Gala has many programs related to the return of Hong Kong Island. Dong Wenhua sang "Spring Story", Han Lei, Tian Zhen, Sun Guoqing, Zhu Mingying, Sun Nan, Peng Ling and others sang "AD 1997". Everyone presented their own heartfelt wishes for the return of Hong Kong...
...
On February 20, the fourteenth day of the lunar year, the day before the Lantern Festival, Li Xiaofan stayed in Shanghai to handle official business.
That morning, Li Xiaofan got up and prepared for a morning run.
Just as I walked out of the alley, the radio on the street, the "News and Newspapers" program of the Central People's Broadcasting Station at 6:30 in the morning, suddenly filled with mournful music.
The host announced with a heavy heart the news that the great man of a generation, Grandpa Deng, had unfortunately passed away...
Although he was mentally prepared, Li Xiaofan did not remember the specific day. He hurried back to the old villa to listen to the entire "News and Newspapers" program.
At nine o'clock in the morning, in the office of Donghai Entrepreneurship Park, Yang Feiyan came into the office with a stack of documents for Li Xiaofan to sign.
After signing, Li Xiaofan said to Yang Feiyan:
"Feiyan, let's go to the Shenyin Wanguo Securities Sales Department next door."
"Ah, what's going on, Mr. Li, do you want to go stock trading?"
"Well, we'll talk about it after we go."
After hearing this, although Yang Feiyan felt a little puzzled, she was already a little used to the fact that this boss classmate in front of her often made some strange movements.
When Yang Feiyan accompanied Li Xiaofan to the nearby Shenyin Wanguo Securities Sales Department, the sales department was already crowded and bustling, and many Shanghai stock investors were particularly concerned about how the stock market would change today.
Early in the morning, the securities newspapers at the entrance of the sales department were snapped up by everyone.
Many stock investors with heavy positions had no intention of going to work, and took leave to come to the sales department to check the market.
There were several scalpers at the door who were reselling the day's "China Securities Journal" at a high price.
It turned out that because the header of today's "China Securities Journal" was red, after discovering this mistake, the newspapers that had been issued were immediately recalled.
But some newspapers have already been sold, and these sold newspapers are more popular, and some people even sell them at high prices.
The urgent mood of people at the moment can be seen.
But for Li Xiaofan, who currently has more than 200 million yuan in cash in more than 50 stock accounts, he is in a different kind of urgency.
Li Xiaofan and Yang Feiyan walked around the retail hall and the large account room of the sales department and found that most people believed that today's stock market would definitely fall.