Chapter Fourteen Joint Exploration
"Come on, I asked you to speak up, so just say it. Secretary Ding, don't bother taking notes, this is just a casual conversation. It doesn't matter if you say something wrong." Secretary Bao seemed to have noticed Feng Sicheng's concerns and smiled as he told Ding Quanli to put away his notebook, then looked at Feng Sicheng with sincere eyes.
Feng Sicheng saw Bao Secretary set up this framework, and he also knew that if he didn't say something today, it would be inappropriate. Moreover, his purpose in coming was to showcase his talents while providing some ideas for the development of the national securities industry, so when Bao Secretary asked him to speak, it was exactly what he had hoped for.
"Alright then, I'll try to say something. Just like what you said earlier, if I'm wrong, don't blame me." Feng Sicheng smiled wryly as he looked at Bao Secretary.
"Uh-huh, I know, go ahead and speak freely." Looking at Feng Si Zhe getting vaccinated so seriously, Bao Secretary was becoming more and more curious about what Feng Si Zhe would say next.
After clearing his throat, Feng Siche finally spoke up. "Secretary Bao, economic construction requires a large amount of capital. While opening up to the outside world and attracting foreign investment, it is also urgent to start the domestic capital market. The establishment of a stock exchange is imminent. To be honest, for many people who have come out of the Cultural Revolution mindset, setting up joint-stock companies, issuing company stocks, and establishing stock exchanges are simply fantasies, which is essentially taking the road of capitalist society. This raises the first problem, that is, ideology. As things develop and society moves forward, old ideologies must be changed."
As soon as Feng Siche threw out the term "concept", Secretary Bao nodded in approval, "Not bad, well said, continue." As a pioneer of reform, Bao Jingguo was also very aware that although the Republic had not been established for long, it had experienced many things, to the point where many people's current thinking was to seek stability. Seeking stability meant being cautious, but excessive caution would sometimes hinder social development. If this concept did not change, many things would naturally not move forward, and he was deeply aware of this.
"Good." Feng Siche also nodded, and at the same time, he began to think about the framework of language, "I think now the central government must have some controversy over whether to introduce foreign capital banks and whether to establish a stock exchange, but I want to say that the stock exchange must be built. The answer is very simple, the country's development is now centered on economic development, and everything is paving the way for economic development, so the stock exchange will inevitably exist. And I believe that as long as we can unify our thinking, coordinate our work, establish laws and regulations, such as strict company law, securities law, and promote and supervise with legislative institutions, regulatory agencies, and academic units, the problem won't be too big."
Feng Siche gained substantial advice from the later generations on some drawbacks of the 90-year-old stock exchange. Of course, it's better to say that it's not advice, but rather a joint exploration with Bao Secretary. Feng Siche is also very convinced by this, as Bao Secretary himself is like a born economist. Every time Feng Siche comes up with a good idea, Bao Secretary immediately grasps the key point and quickly finds a solution to the problem. It can be said that after a long conversation with Bao Secretary, even Feng Siche himself benefited greatly, because in later generations he was not very concerned about the Shencheng Stock Exchange, and some deep-seated problems he couldn't see before, but now after listening to Bao Secretary's words, he gained a lot of insight.
After a long conversation with Feng Siche, Secretary Bao was also deeply moved. Many new perspectives and ideas put forward by Feng Siche were immediately recognized by him, making his mind flash with inspiration, and many problems that he had not understood before suddenly had the best answers.
"Haha, Feng Sizhe is not simple, a double master's student in economics at Cambridge University has ideas, he has ideas." After a long conversation with Feng Sizhe, Bao Secretary said with some emotion.
"Feng Si Zhe smiled and attributed all the credit to his mother, who is a vice professor of economics at Cambridge University and also runs her own small company. She has gained practical experience and has come to realize some problems with foreign exchanges, such as opaque operations and lack of transparency, which makes it difficult for companies that want to invest or expand their business there. By saying this, Feng Si Zhe not only gave credit to his mother but also subtly mentioned that she has her own company abroad, implying that he will have a steady financial source in the future and won't be subject to criticism from others. In fact, Bao Jing Guo was already aware of this, as someone who is about to become one of the country's leaders, how could he not know about the situation of various families in Kyoto?"
It can be said that with Feng Siche's rebirth of over 20 years, making money has become an extremely simple thing for him. For example, let's just say that at present, without mentioning the Gulf War and how much wealth oil futures can create, just talking about stocks, Feng Siche clearly remembers telling him that on May 21st, 1992, Shanghai Stock Exchange lifted its restrictions on stock price increases, and within three days, stock prices skyrocketed. The index rose from 100 points on December 19th, 1990 to 1429 points, with the Shanghai Composite Index surging 1329% in just one and a half years. Zhongkong Electronics' stock price soared to over 2500 yuan, and Yangzhong Real Estate and other five new stocks almost all rose by 3000%. This is an absolute opportunity for Feng Siche to make a fortune.
At the same time, Feng Siche was even clearer that such an opportunity would only last for five days. After five days, on May 26th, the stock began to plummet and continued to do so for as long as five months. This was the first violent fluctuation in the market, and by August 1992, the stock price had fallen by nearly half. Of course, the five-day period was enough time for Feng Siche to accumulate his original capital, but at that time he still didn't have any intention of developing his career in the stock market; instead, he was waiting for the war profits from his mother's side during the Gulf War.
