Chapter 115: Which business makes money the fastest?
Li Yuanhu has extraordinary passion for China's development and reform cause.
"China has been working hard to restore its status as a party to the General Agreement on Tariffs and Trade. Everyone knows that only this can be considered to be truly joining the global free trade cycle, and this will be a globalization journey without a way out." Li Yuanhu said to Fan Wubing with passion. "Forbes also said that in this world, any accident may happen, and there are very few certain things like China will rise to become an economic power one day. These things are enough to show that the market with the most development potential now is the mainland market, and the most profitable industries are all in the mainland! Or, in the words of foreigners, the region with the most development potential in the next few decades is the Greater China."
Fan Wubing also knows a lot about foreigners' judgment on China's economy. Lawrence Summers, who was then the chief economist of the World Bank and later served as the US government's Treasury Secretary, predicted that according to the purchasing power parity estimate of China's GNP, China could surpass the United States in total output by 2014. This bold prediction naturally caused a lot of shock internationally.
In the mainstream Western media, a new economic term has emerged - Greater China. Louis Clara, senior editor of Fortune, pointed out in an article that money and management experience from Taiwan and Hong Kong are turning the south of mainland China into an industrial engine for the entire Asia.
On a street in southern Asia, Japanese cameras, Reebok shoes, French brandy, Motorola mobile phones and M&M candy are sold in stores. At night, people flock to the karaoke hall, with a large screen coffee bar, and the dim dance hall is filled with young people wearing tights. This is not Hong Kong, but Dongguan, Guangdong. In this place fifty miles from Hong Kong, there are nearly 6,000 factories invested by Hong Kong and Taiwan businessmen, and exported toys, plastics and clothing are constantly coming out from here.
Louis Clara then analyzed that as the economic boundaries between Hong Kong, Taiwan and the rolling South China are becoming increasingly blurred, it is becoming the fastest growing region in the world. The Greater China Region is neither a political entity nor an organized trade zone, but it is connected by the same culture and common desire for development. It integrates Taiwan's technology and financial resources, Hong Kong's international market experience, and the huge land, labor resources, and ambitions in mainland China.
"Great China is a very potential economic force, and Asia is the only one that can compete with Japan. But we must first enter the General Agreement on Tariffs and Trade. Only in this way can we truly integrate into the entire process of globalization." Li Yuanhu said to Fan Wubing with his eyes shiny.
After hearing this, Fan Wubing sneered. Although Li Yuanhu was good at wandering in various relationships and opening up joints, his grasp and understanding of such major policies was pale in comparison.
If the General Agreement on Tariffs and Trade is so easy to do, the government will not need to negotiate with the Americans year after year. As a political bargaining chip, the problem with the General Agreement on Tariffs and Trade is that China and the United States are playing a game. Either the east wind overwhelms the west wind or the west wind overwhelms the east wind, and there is no possibility of peaceful coexistence.
The price China has to pay to join the General Agreement on the WTO is too high. In terms of the current economic situation, the consequence of direct joining is that many industries will suffer devastating blows.
"Mr. Fan, have you noticed the stock market?" Li Yuanhu suddenly asked.
Stock market? Fan Wubing smiled. The domestic stock market has been really in the midst of ice and fire recently.
During his southern tour, Mr. Deng specifically said about the securities industry that he believed that securities and stock markets should be resolutely relaxed and tried the waters. If a mistake could be corrected, but he must not do anything because he was afraid of a problem.
Perhaps it was stimulated by this passage that this year's stock market has been showing an excited trend since spring. In May, the Shanghai Stock Exchange fully liberalized its stock prices, and had previously implemented the daily limit system. Within a week, the Shanghai Composite Index doubled, and the stock price of Yuyuan Mall exceeded 10,000 yuan, unprecedented.
At that time, there was only one trading point in Shanghai like the Stock Exchange, and investors squeezed it out of nowhere every day. So the head of the Shanghai Stock Exchange Office suddenly had a whim and booked a cultural square as big as half a football stadium in Shanghai as a temporary trading place.
In Shenzhen, the stock market is even hotter than it is. Stocks that were not popular in the past few years have now become the treasures that tens of thousands of people compete for, and the issuance of new stocks has to be implemented. The Shenzhen Stock Exchange issued the "New Stock Subscription Lottery Form Sale Announcement", announcing the issuance of 500 million domestic public shares, and the issuance of 5 million lottery forms, with a winning rate of 10%, and each lottery form can be subscribed to 1,000 shares. Subscribers can handle related matters with their ID card. One certificate can spend 100 yuan to buy a lottery form, and each subscriber can hold up to ten ID cards to buy a lottery form.
As soon as the announcement was released, the Shenzhen Post Office was immediately flooded with ID cards flying in like snow. The largest express parcel contained 2,500 ID cards. At that time, Shenzhen had a permanent population of 600,000, and within two days, 1.5 million people suddenly flooded in. The soft train tickets from Guangzhou to Shenzhen were more than 30 yuan, and the black market was sold for 200 yuan.
At that time, many people could not enter the special zone without a border guard license, so local farmers volunteered to lead the way to drill wire mesh for 40 yuan per person.
On the day of the lottery, it was announced that the sale was completed in just two hours. Millions of people rushed in excitedly. Two days and two nights, but few people bought the lottery table. Anger quickly spread throughout Shenzhen, and people who could not control their emotions rushed to the municipal government like a tide. All major roads in the city center were paralyzed, shops were smashed, police cars were burned, and the government dispatched a large number of riot police and brought high-pressure water cannons. The first vicious incident in the Chinese stock market broke out unexpectedly. In the early morning of the next day, the Shenzhen Municipal Government urgently announced that it would issue 500,000 additional subscription application forms. The mayor delivered a TV speech that night, and the situation gradually subsided.
The subsequent investigation showed that there were collective fraud incidents in the issuance of lottery tables, involving more than 4,000 people in the financial system, and many insiders believed that the facts should be far higher than this proportion. The fraud incident had a heavy blow to the confidence of investors. In the next four days, the stock markets of the two places fell sharply, and the Shanghai Composite Index fell almost half.
The unprecedented enthusiasm of millions of investors, the surge in the stock market, and even the fraud incidents in Shenzhen allowed the decision-makers to see the availability of the stock market as a financial tool in the most intuitive way. At that time, the bank savings of the people across the country had exceeded 1300 billion yuan, while the central government's finances were very tight, and it was almost impossible to provide assistance to the capital needs of state-owned enterprises. The storm in the stock market made decision makers suddenly realize that this might be the best way to save state-owned enterprises that have fallen into the quagmire, and the government has no way to do anything and have no blood to pass.
"In the past, some small companies listed and raised funds in Shanghai and Shenzhen. Now the situation has changed, and many large state-owned enterprises are going to go public." Li Yuanhu suggested to Fan Wubing, "If Mr. Fan has a lot of spare money and has no place to spend it, the stock market is a very good investment place. As long as you take the lead, you can only make a stable profit and not lose money."
Fan Wubing smiled and shook his head, "You don't know how much money I have. In my opinion, the mainland stock market is still a small pool and cannot withstand big troubles. In fact, I only returned to China after the US stock market and the Japanese stock market have made great achievements. Now I mainly want to do some business and do something that benefits the country, the people and make money."
After hearing Fan Wubing's words, Li Yuanhu was a little disappointed. It turned out that Fan Wubing couldn't look down on the money in the stock market! According to his idea, as long as he invested hundreds of millions of dollars, it would double or double in a year or two, wouldn't that be a very generous profit? It seems that people are really incomparable.
"Actually, if you are unwilling to get involved in the domestic stock market, there is another way to make money the fastest." Li Yuanhu hesitated for a while and thought of a business that was very suitable for Fan Wubing to do.
"Oh, what is it?" Fan Wubing really wanted to hear what Li Yuanhu had to suggest.
After thinking about it, Li Yuanhu said to Fan Wubing, "I am a person who often pays attention to current affairs and likes to carefully consider some sensitive issues. Therefore, I have noticed a phenomenon recently. It can be said that because of the emergence of a person, a storm of acquiring state-owned enterprises in China. Has Mr. Fan also paid attention to this person?"
Oh, Fan Wubing knew what Li Yuanhu meant as soon as he heard it. Isn’t it just the Huace Company established by the Indonesian Chinese businessman and overseas capital?
If you want to say that Fan Wubing still has a certain understanding of this person. This person has no management experience and no actual technology. All he has to do is to acquire the company and then list it overseas, obtain a generous amount of profit and quit it. The profits obtained are rolling into the next target company, so that he can make his capital more like a snowball.
However, for those state-owned enterprises he acquired, there is no other benefit except for the changes in the system.
Chapter completed!