My fintech empire.

Chapter 1197 [The foreshadowing laid five years ago finally broke out]

Less than ten minutes after Fang Hong left the temporary headquarters of Oriental Express, a piece of news related to the capital market scared the A-share investors. Was the Federal Reserve going to raise interest rates? No.

Instead, it was a document from the village on "Opinions on leveraging the role of the capital market to serve the national poverty alleviation strategy." The release of this document made the capital market uneasy and investors were stunned.

Influenced by this news, when the A-share market opened on Monday, September 9, the three major stock indexes opened with a sharp drop. The Shanghai Composite Index broke through the 12-point integer mark during the session, falling to a low of 3000 points, with the deepest drop of -2999.93% and closing down -2.51%.

The Xinzheng 50 Index was also dragged down, falling -2.54% to close at 1818.72 points. This large negative line basically confirms that there is no hope of hitting the previous high in the near future, and it has entered the second bottoming stage.

This article from the village scared the capital market, causing panic in the market and capital outflow.

In the comment sections of stock forums and major communication groups, investors are always complaining and criticizing.

[There are nearly 600 impoverished counties in the country. If there are three companies in each county, that means there are 1800 companies. Add to that the 800 companies waiting in line, how many new stocks will come up to grab the money?]
[Have you studied Financial Markets, Securities Investment, and International Finance seriously? The so-called financial market refers to the trading market of financial products, and finance refers to the flow of monetary funds, the general term for currency circulation, credit activities and related economic activities. The lifeblood of the financial market is credit. If you don’t keep your word, hehe…]
[There are good companies in poor areas, and they still line up to invest. Maotai was not born in developed provinces and cities. The stock price has risen from 31 to more than 1800. Does it need support? If there are no good companies, do we need to use some rotten fish and shrimp to help them grow?]
[I am really scared. People who don't understand the financial and securities markets are messing around. Poverty alleviation is completely correct. I don't object to this. Monetary transfer payments are very good. Isn't it good to let the developed coastal areas help the remote and backward mountainous areas in the interior? How can the capital market, which is purely economic and financial, be directly involved?]
[If this continues, the 70 trillion yuan capital market will be in chaos. We should resolutely follow and support the country's strategic deployment, but we should not directly connect it like this. This is completely a forced move to please the higher-ups.]
[That is, the country says it wants to develop education, so why don’t you let all 985 and 211 universities go public? Why don’t you let all Hope Primary Schools go public? The country wants to protect people’s health, so why don’t you let all hospitals go public? Is it possible to implement the country’s policies and strategic deployments in such a mechanical, rough, and docking manner?]
[I have come to realize that this opinion is a political document, not a capital market or financial market document. Investors have discovered that you really don’t understand finance, and they are all scared and can only sell their stocks and leave.]
[Have you forgotten the bloody lesson you learned before, the farce of the Lantian Company in the impoverished old district? Do you want to repeat such a thing?]
[To make the financial capital market solid and upward, so that the 1.5 million stockholders in the country can get real returns, like the old lady in Magnesium, who made tens of thousands of dollars when she was young and became a millionaire at the age of . This is the right way, and it will directly and indirectly help people in poor areas.]
[Just want to say, God is watching what you do.]
[Isn’t it good to invest in the New Securities 50 Index? I don’t even care about the main board next door now.]
……

This incident sounded the prelude to the subsequent decline this month. The rebound lasted for a few days, and then on September 9, the stock market fell again. The Shanghai Composite Index broke through the 26-point integer mark again with a large negative line of more than 2 percentage points.

The second bottom of the Xinzheng 50 Index also fell to 1778.58 points today.

The main reason for the sharp drop in the market is that the central bank has withdrawn a huge amount of funds today, liquidity has tightened, and the scale of financing for new stock issuance continued to increase last week, putting pressure on the market.

Another important factor is that the recent boom in the real estate market has also withdrawn some funds. At present, the domestic major asset classes are experiencing a fierce market situation between the stock market and the real estate market, and the real estate market is very hot now.

Last month, among the 70 large and medium-sized cities in China, only 4 cities saw a month-on-month decline in the prices of newly built commercial housing, 64 cities saw a month-on-month increase, and 2 cities saw no change. Among the month-on-month price changes, the highest increase was +5.6%. Influenced by the expectation of rising housing prices, more and more investors are enthusiastic and can't help but enter the market with their money.

……

In the afternoon, stay at Jingxinju Villa.

Tian Jiayi is reporting to Fang Hong: "Today Hua Yu gave me a document about Huayang Group. They continue to increase their holdings of Wan Ke's shares. They currently hold a total of 21.76 billion shares, accounting for 19.72% of the company's total share capital, becoming the second largest shareholder. In addition, Qunxing holds 5.37 million shares of Wan Ke, accounting for 4.86% of the company's total share capital. This means that our Qunxing Group has now become the largest shareholder of Wan Ke."

This year's capital market is particularly lively. Insurance funds raising their stakes is one of the major dramas staged this year, and Wan Ke A is the protagonist of this "palace fight" drama.

Boss Yao's Baoneng Group bought 24.24% of Wan Ke's shares in one year and became the largest shareholder. Wan Ke's leader, feeling threatened, had a conflict with him, and the friendship was overturned. Hua Run, Wan Ke's previous largest shareholder, began to support Wan Ke, but later turned to the Baoneng Group.

When the market and media focused on the "barbarian" Boss Yao, the rapidly rising real estate giant Huayang Group suddenly emerged and made a brilliant debut. It continued to increase its holdings of Wan Ke A in a big way, buying and buying all the way to becoming the second largest shareholder of Wan Ke, which caught everyone off guard.

It was at this time that people were shocked to find that Boss Yao had been cut off by someone. The current largest shareholder of Wan Ke A should actually be Qunxing Capital, because Qunxing Capital still holds 4.86% of the shares.

The close relationship between Huayang Group and Qunxing Capital is well known in the industry. The combined shareholdings of these two companies are 24.58%, exceeding that of Boss Yao's Bao Neng Group.

This equity dispute can be described as a fight between gods, with galaxies also involved, making the complexity of the entire incident soar exponentially.

Tian Jiayi looked at Fang Hong and couldn't help asking, "When you pushed Wan Ke A to sign the bet five years ago, did you expect the situation today to happen? You've laid a deep ambush..."

Fang Hongyun said calmly: "Don't get the cause and effect wrong. It is because of this gambling agreement that the current situation has come about, but the seeds I bought are not the real cause of this situation. It should be attributed to the greed of the Wan Ke management team."

Hearing this, Tian Jiayi's thoughts couldn't help but go back to five years ago.

Five years ago, Wan Ke carried out a huge new share issuance financing plan. At that time, Qunxing Capital held Wan Ke’s shares, accounting for about 4.7% of the total share capital and was also a legitimate major shareholder.

At that time, Wan Ke was about to hold a shareholders' meeting. Tian Jiayi clearly remembered that Fang Hongran was the one who arranged it and took the opportunity to get in touch with other shareholders. As an excellent real estate company, the company's ROE index was less than 15%. Other shareholders were actually very dissatisfied, so they easily hit it off.

At that time, he joined a group of shareholders at the shareholders' meeting to put pressure on Wan Ke's management, either to reorganize the board of directors or to sign a "performance betting" agreement with the shareholders.

The general content of the agreement is that if Wan Ke's management team can raise the company's ROE index in the next three years, their senior management team will receive a huge bonus, but if the ROE index does not rise, the bonus will be directly deducted from the salaries and commissions of their senior management team.

Under pressure, Wan Ke's management team signed the "betting agreement" and started to work hard to achieve results. As a result, the ROE index was really raised by this team. In 2013, Wan Ke's ROE index exceeded the 20% mark. According to the betting agreement, generous bonuses were given to the senior management team every year.

At this point, it can be said that it is a "two-way race", a perfect situation for both you and me. But then something that Wan Ke's management did laid the seeds for today's equity battle.

……

(End of this chapter)