They are all reborn, and the grandson is still a spare tire

Chapter 669 Early Warning Mechanism

Considering that there was still business to do tomorrow, Yao Yuan did not dare to be too indulgent this night.

Even so, he still enjoyed all the happiness and experienced what it means to be debauched and immoral.

In the blink of an eye, it was already the next morning.

At about 11:30 in the morning, in the conference room of the Ministry of Finance.

At this point, the meeting is coming to an end.

The theme of today's meeting is to discuss the implementation of the Sino-US cooperation agreement previously signed on Hong Kong Island, as well as the current status and development trends of the international financial market.

Participating in this meeting were Minister Xie and Yao Yuan, as well as leaders from the China Banking Regulatory Commission, China Securities Regulatory Commission, other economic and financial authorities, and some top experts and scholars in related fields.

Seeing that the meeting was about to end, Yao Yuan suddenly spoke up again.

"Dear leaders, taking advantage of this meeting, I would like to make a suggestion here, and everyone can discuss it."

Following his words, everyone looked over with curiosity.

The next moment, Minister Xie smiled and said:

"Xiao Yao, tell me what good suggestions you have. Everyone wants to know about it."

Yao Yuan nodded slightly to Minister Xie, then smiled and said:

"Okay, Minister Xie, my suggestion is for those companies we list on Hong Kong Island and New York."

"I think it is necessary to establish an early warning mechanism, supplemented by necessary market value management measures, to prevent people from maliciously shorting overseas listed companies, especially state-owned listed companies."

"As we all know, there is no price limit for Hong Kong stocks. There are many penny stocks. A considerable number of listed company stocks have very low activity. The daily trading volume is only a few million, or even less than a million."

"This gives some speculators an opportunity to take advantage of it. With only a small amount of money or stocks, they can knock the stock price to the floor in an instant. This kind of thing happens from time to time in Hong Kong stocks, mostly in the late trading."

"For example, if a stock with a stock price of five yuan has a low daily trading volume and almost no one pays attention to it, it will undoubtedly be the best sniper target. Using this late-market raid, the stock price may be able to drop 99% in an instant. , becomes five cents per share.”

"In this case, the listed companies have no time to react. By the time they react, the market value of tens of billions has been wiped out. If this is a state-owned enterprise listed overseas, no one can bear the responsibility."

Before he finished speaking, everyone at the scene was frightened, and there was an exclamation of surprise immediately.

"Ah! Five yuan instantly turned into five points. This is too cruel!"

"The market value of tens to tens of billions has disappeared in the blink of an eye. Indeed, no one can bear such responsibility. If it is a state-owned enterprise, the person in charge may be put in jail."

Everyone started talking, and they all felt frightened.

The next moment, the chairman of the China Securities Regulatory Commission suddenly said:

"Yao Yuan, the situation you mentioned does exist in Hong Kong stocks. It often occurs in those penny stocks that cost a few cents or a few cents. The market value of these penny stocks is often very small, only a few hundred or tens of millions of Hong Kong dollars."

"It can even be said that this is a way for many penny stock companies to make money. They first drive the stock price to the floor, then form a partnership, then raise funds, and then do it again, over and over again, and keep harvesting."

"The companies we list overseas are generally of good quality and not small in size. It is basically impossible for them to become penny stocks. This kind of thing should not happen to our overseas listed companies, especially state-owned listed companies."

Yao Yuan looked at the chairman of the China Securities Regulatory Commission and said with a smile:

"Chairman Shang, you are talking about normal market conditions. The current international financial market environment is not normal. We must treat special circumstances with special treatment."

"After the outbreak of the global financial crisis, almost all stocks will plummet. When the vast majority of investment institutions and individuals suffer heavy losses and are deeply trapped, the activity of many stocks will decline sharply."

"Once this situation occurs, some stocks that were originally actively traded will become less interested, which will give opportunities to some short sellers and speculators, as well as some people with ulterior motives."

"Through sneak attacks at the end of the trading day, they can easily knock off 99% of a stock's price, from five yuan to five yuan. However, if a stock rises from five yuan to five yuan, it will increase a hundred times, which is very difficult in the short term. accomplish"

"What's even more frightening is that the main goal of some speculators may not be profits in the stock market, but the equity pledged by major shareholders to the bank, which is the controlling stake of this listed company."

"In the context of the global financial crisis, many listed companies will encounter operating difficulties. It is a normal method to use equity pledges and borrow money from banks to maintain the company's normal operations."

"If someone focuses on the equity pledged to banks by these overseas listed companies, especially the equity pledged overseas, the trouble will be big. In order to protect their own interests, foreign banks will definitely sell the equity as soon as possible to stop losses."

"hiss!"

There was a gasp of air in the conference room, and everyone was shocked by the situation Yao Yuan described.

Immediately afterwards, the conference room was filled with excitement and everyone started talking.

"Yes, this situation does exist. Since the end of October last year, the number of equity pledges in listed companies has begun to rise rapidly. We must pay attention to this issue."

"Not to mention foreign banks, even our domestic banks will liquidate their positions as soon as the pledged equity reaches the warning line to ensure the interests of the bank."

"If certain foreign financial institutions or individuals covet the controlling rights of an overseas listed company, they can indeed create panic and carry out sneak attacks in a financial crisis environment."

"There is also a possibility that they simply want to attack our overseas listed companies. They first borrow securities to wipe out the market value of tens of billions of listed companies, and then raise funds at a low level to repay the bonds. They will undoubtedly make a lot of money."

While there was a lot of discussion, everyone's expressions became quite solemn.

Including Chairman Shang, some leaders, experts and scholars who had not taken it seriously before have also realized the seriousness of the problem.

After discussing and thinking for a moment, Minister Xie suddenly asked:

"Yao Yuan, your suggestion is very good and timely. It has sounded the alarm to all overseas listed companies. We must prevent this kind of thing from happening."

"Since you made this suggestion, you must have some countermeasures. Let's talk about it. How can we establish this early warning mechanism to avoid being attacked by some people with ulterior motives?"

Following Minister Xie's words, everyone looked at Yao Yuan.

Yao Yuan nodded to Minister Xie, thought for a moment, and then came up with his solution.

"The global financial crisis is imminent. Under such circumstances, everyone must be prepared to live a hard life, and the same goes for many overseas listed companies."

"To ensure safety, overseas listed companies should try to avoid using equity pledges to borrow money from foreign banks to maintain company operations."

"If you have to borrow, it's best to borrow equity from a domestic bank, so that the meat rots in the pot and you won't make it easier for outsiders."

"Hahaha"

There was a burst of laughter at the scene, and everyone laughed

"The meat rots in the pot. This is a good saying. It is true that outsiders cannot be given advantage in vain."

Minister Xie said with a smile.

After the laughter subsided, Yao Yuan continued:

"For some high-quality overseas listed companies, we at Jiuye Investment Group can consider providing low-interest loans with partial equity pledges. No matter what the situation, we will not liquidate the pledged equity, and we will not become shareholders at the worst."

"In this way, it not only solves the difficulties of some overseas listed companies, but Jiuye Investment can also transfer overseas investment income to the mainland in this way without causing any impact, and the benefits are quiet."

"The most important thing is that we must incorporate all high-quality overseas listed companies into an early warning system and monitor changes in stock prices at all times. Those junk listed companies are not included in the protection."

"We can use computer technology to monitor the stock prices of overseas listed companies in the early warning system at all times. Once the instantaneous decline of a certain stock exceeds the warning line, the stabilization fund will immediately intervene to maintain the stability of the stock price."

“This warning line can be set between negative 20% and 30%, and the minimum cannot be lower than negative 40%. This is the liquidation line for many equity pledges.”

"In this way, we can hold on to the stock prices of these high-quality overseas listed companies without investing much money, and gain time for the listed companies to respond so that they can regain their lost ground the next day."

"When the stock price returns to its original position, or basically stabilizes, the stabilization fund can make a profit and exit. The scale of this stabilization fund does not need to be large, a billion US dollars is enough."

Hearing this, everyone's eyes became brighter and more excited.

Yao Yuan's fantastic ideas made everyone even more amazed.

At this moment, Minister Xie patted Yao Yuan on the shoulder happily.

"Yao Yuan, your proposal is great and worth studying carefully."

"It seems that today's meeting will be extended. Let's discuss this issue carefully."

Following Minister Xie's words, the meeting was extended for nearly two hours.

The impact it brings is very far-reaching!