Reinventing the Millennium.

Chapter 722 Fang Zonggao's Theory (Two in One)

The atmosphere in the road show conference hall became... brighter because of Mr. Fang's answer to Xiangjiang's value.

If it is said that at the beginning, many Hong Kong investors were in the mood of watching the excitement, and then they became solemn as they witnessed the influx of mainland power, and then the president moved the questioning session and were eager to try, then now it is the other party who always shows up. Dyer triangle to respond to the question with admiration.

This person who can compete with the Li family is not as reckless, simple, and narrow-minded as the media gossips.

Mundell's Triangle, also known as Mundell's Impossible Triangle and Trinity Paradox, to talk about this is often to talk about the classic MF model, IS-LM-BP model, but today, Fang Zhuo's intention to mention it is to use this framework To explain the value of a window from the perspective of economic theory.

Independence of monetary policy, free flow of capital, and stable exchange rate, American economist Paul Krugman said that a country can only choose two out of three.

According to this statement, there is no doubt that the mainland is independent of monetary policy and exchange rate stability.

And Xiangjiang is exchange rate stability and free capital flow.

After drawing the triangle, Fang Zhuo deliberately pointed a corner with his finger, and said "free capital flow", which means that Xiangjiang is different from the mainland, and the two out of three are a powerful supplement to the economic development of the mainland.

Mainland: That's right, I didn't choose "free flow of capital", but I still have the place of Xiangjiang.

Hong Kong: That’s right, I pegged the exchange rate between the Hong Kong dollar and the U.S. dollar, and I will passively follow the Fed’s interest rate hikes or cuts, but I still have the mainland behind me.

Just look at the mainland or Xiangjiang, they are all two out of three.

But looking at Huaxia as a whole, Xiangjiang, an international financial center, is a window to the outside world. Its "free capital flow" has enabled Huaxia to almost realize the three elements of the Mundell Triangle, which is an important value statement.

As proof, at this moment, many Xiangjiang investors have thought of the data mentioned in President Li's previous speech.

——In 2005, the top ten companies that came to Hong Kong to go public and raise funds were all mainland companies.

——There are a total of 335 mainland companies listed in Hong Kong, accounting for 30% of the Hong Kong stock market.

——The total market value of Hong Kong stocks in 2005 was 8.26 trillion, and the total market value of mainland companies was close to 3.2 trillion, accounting for nearly 40%.

The international financial center attracts global capital. It not only makes Xiangjiang prosperous, but also undoubtedly is the primary market for mainland enterprises to raise international capital.

In this way, the answer to "Xiangjiang value" is fully expressed in only one sentence.

Sitting on the stage, Fang Zhuo noticed that many people smiled at him, and he smiled back. They were still very alert and very good.

As for those investors who have thoughts or even doubts in their eyes, there is nothing to say, as long as their thinking is not on the same frequency.

Fang Zhuo reached for his teacup and continued to respond to the question: "The threat of hollowing out this industry..."

He took a sip of tea, just in time to see that President Li looked at him with doubts in his eyes, as if he was saying—is this the end of the Xiangjiang value?

Fang Zhuo was slightly startled, President, why do you look at me like this?

He quickly cast his disrespectful eyes away, and said, "Actually, the threat of industrial hollowing out should not be that you are asking here, or that you all have an answer in your heart."

"The four pillars of Xiangjiang are finance, trade and logistics, professional and industrial and commercial services, and tourism. These are all developed from the original solid manufacturing industry."

"I think the United States is a good object of comparison. I spend a lot of time in the United States, and there are often concerns about industrial hollowing out and financial hollowing out. However, the United States and Xiangjiang are different."

"Although it has a trend or phenomenon of hollowing out the industry, it still has a lot of advanced technology and core technology. Take Boeing as an example. Its aircraft are assembled all over the world, but it still makes the biggest profit."

"Xiangjiang is different."

Fang Zhuo said: "I have noticed that the Hong Kong administration has paid attention to this issue. In the previous 98 policy address, it was mentioned that 'to become the world's leading city in the development and application of information technology, especially in e-commerce. and leadership in software development'."

"This is obviously Xiangjiang's self-salvation in the industry."

"Subsequently, Mr. Li Zekai built the 'Silicon Valley of Hong Kong' Cyberport is also a corresponding effort."

"It's just that it is regrettable that this year is already 2006. After 8 years, the development and transformation of urban industries does not seem to be optimistic."

Fang Zhuo shook his head, and started to answer the last question about GDP in the same way. He pondered: "The GDP of inland cities..."

However, this time, it was interrupted by questions from investors below, and many people raised their hands to signal.

Fang Zhuo didn't mind being interrupted, so he ordered a beautiful one casually.

"Mr. Fang, you talked about the hollowing out of Hong Kong's industries. How do you think we should deal with this threat?" the pretty investor asked earnestly.

Although I had prejudices in my heart before, but seeing that this person really has opinions, those emotions that were difficult to explain have long since disappeared.

Xiangjiang Roadshow is a very interesting place, sometimes too much emphasis is placed on the performance of roadshow executives and the company itself is ignored.

Once a very powerful company came to Xiangjiang Roadshow, but the founder was not good at words, so the company suffered a cold reception.

Similarly, when Fang Zhuo showed such a wonderful demeanor, investors couldn't help laughing at it.

"I don't really want to talk about this issue, because many issues are not discussed, and you can't ask me here today, and I can change it after a few words." Fang Zhuo was more straightforward, and he still expressed his own point of view, " But to be honest, I think there are still some sacrifices and pains to meet the challenge."

He took a sip of tea, moistened his throat, and said: "It's not that Xiangjiang has never encountered similar opportunities in the past. I will not comment on Mr. Li Zekai's Cyberport. As far as I know, the founder of SMIC, Mr. Zhang Rujing, Mr. Zhang, He came to Xiangjiang when he was choosing the site, and there was a 'Silicon Harbor Project' at that time, why didn't it come to fruition in the end?"

"SMIC settled in Shanghai, and today, in just a few years, it has become one of the largest wafer foundries in the world, driving a very brilliant semiconductor industry in East China."

"It is a pity that Xiangjiang missed such a good opportunity for transformation."

"There are people who can see the problem, and there are people who can solve the problem, but they can't solve it in the end. It doesn't make much sense for us to sit here and talk about it today."

Fang Zhuo's outspokenness silenced the scene.

Those who wanted to ask questions did not raise their hands.

Fang Zhuo waited and observed for a while before returning to his own answer: "As for the GDP development of inland cities, they still have a long way to go. It will be a long process to catch up with the size of Xiangjiang. Because I have confidence in the country's economic development, so , I believe I can see the day when the GDP of mainland cities surpasses that of Xiangjiang.”

After saying this, he suddenly smiled: "After all, I'm quite young, but because I'm young, I don't know if it will be too long."

Because young, it seems too long words can also be seen.

The silent atmosphere in the conference hall loosened up a little.

Fang Zhuo nodded off the stage, indicating that he had finished answering, and then turned off the microphone.

Talk about the value of Xiangjiang, discuss the hollowing out of industries and criticize the response, and express confidence in economic development.

After Mr. Fang finished answering, everyone either recollected or thought about it, and no one raised their hands to ask questions for a while.

Fang Zhuo drank his tea slowly, flipped through the documents, and waited for the road show to continue.

President Li glanced at Mr. Fang, a little hesitant to clear his throat into the microphone.

Fortunately, investors still cherish such a rare communication opportunity, and they quickly reacted and continued to ask questions.

However, the problems from small to large have returned to small, and everyone's questions have become the business of the Bank of China.

Fang Zhuo didn't answer any more questions, but just quietly listened to the answers of the executives of Bank of China, and President Li became more calm with the buffer in the middle.

The roadshow was delayed an hour from its scheduled end.

All in all, the performance of the Bank of China team can be regarded as orderly.

When the announcement was over, many investors immediately stood up and rushed forward. Some came to exchange greetings and business cards with President Li, but more came to chat with Mr. Fang.

After dealing with the wave of investors from Xiangjiang, the executives of mainland companies who were invited to help also bid farewell to President Li and President Fang. Everyone is actually very busy. business.

President Li responded with a sincere smile, while Fang Zhuo expressed his gratitude to almost everyone without any scruples.

The targeting before the start of today's road show was quite obvious. They had made an appointment but broke it temporarily. They came to the scene but tacitly sat on one side of the seat and left half of the room open. Fortunately, there were no problems during the whole process.

It wasn't until 08:30 in the evening that we arranged for everyone to answer the reporter's supplementary questions, and then we could have dinner.

A small stove where President Li and Mr. Fang ate alone.

When he got here, he finally couldn't help asking: "Boss Fang, what happened to the Mundell triangle?"

Fang Zhuo explained, and in more detail, he moved President Li's thinking frequency with himself, and then talked about the American economist Paul Krugman. He once predicted that the Asian economy might break out of a financial crisis. He also said in 01 that Oil prices will skyrocket.

And, Krugman has recently called attention to the potential risk of a sharp rise or fall in U.S. house prices.

His remarks and judgments on housing prices are mentioned in the research report of the MIGA Fund.

President Li listened carefully to Mr. Fang's explanation, and only then did he know why many Xiangjiang investors had different attitudes before and after.

Fang Zhuo got excited and talked about Modern Monetary Theory (MMT), saying that this needs to be understood critically.

President Li listened for a while and asked, "Mr. Fang, it sounds like you have studied these things?"

"Not to mention, boss, I have a MIGA fund under me, at least I need to know how they are going to lie to me." Fang Zhuo said with a smile, "Before I was in New York, I specially invited a professor of economics from Columbia University to teach me Things, I just happened to use them today."

President Li praised: "Mr. Fang, you are too modest."

Just as Fang Zhuo wanted to be more modest, a call came in from his mobile phone, but it was a person who had saved his number and never contacted him.

Li Zekai.

Fang Zhuo showed the phone screen to the leader, saw his equally surprised eyes, and then connected the phone.

The reason why I have this number is that I left it when I met Yike at the road show last time when I came to Xiangjiang.

"Mr. Fang, long time no see, he looks even better." Li Zekai said.

"Mr. Li hasn't even seen me, so how do you know he's more elegant?" Fang Zhuo laughed.

Li Zekai said with a smile: "I heard about the road show of the Bank of China, and I heard that Mr. Fang mentioned the Cyberport. I think Mr. Fang may have misunderstood me. The Cyberport has made a lot of profits rather than losses. "

"Well, I believe that." Fang Zhuo said.

Li Zekai went on to explain why he thought Cyberport did not meet expectations.

Fang Zhuo listened for a while, and found that he really called to explain Cyberport.

When the phone call ended, Fang Zhuo smiled at President Li and said, "Little Superman specifically explained his Cyberport to me. I just chatted casually, but I'm quite sensitive. nor."

President Li frowned: "Does the Li family still have a grudge?"

Fang Zhuo shook his head, didn't judge, it didn't matter.

As the dinner was drawing to a close, another unexpected phone call came in from the administrative leader of Xiangjiang.

Fang Zhuo was a little strange. After communicating for a while, he found that the other party was explaining the complicated reasons for the failure of the Silicon Port project. This time, the other party invited himself to be a guest at the administration.

He talked about the content of the phone call with President Li again, feeling a little baffled: "Did I overreact? I didn't talk too much, didn't I talk too much? It shouldn't be considered criticism, but just regret. "

President Li is quite meaningful: "Mr. Fang, is it possible that your influence is greater than you imagined?"

Fang Zhuo was stunned: "Is it because I became a director of Bank of China?"

The two looked at each other and laughed loudly.

Regardless of Xiangjiang's reaction, Roadshow was a success.

President Li was in a good mood, and talked about tomorrow's media interview arrangements, and asked Mr. Fang for his opinion.

"Media interviews are all process-based things, step by step." Fang Zhuo said.

President Li asked, "I mean, why do you behave like Mr. Fang today?"

Fang Zhuo thought about it and replied: "Leader, since the road show is okay, as long as there are no problems with the media interview, I don't have any special experience."

President Li nodded with some regret, and he didn't force it. People like Mr. Fang are indeed rare to see.

……

On February 2, President Li saw the media's report on the Bank of China's road show yesterday before he was interviewed by reporters.

——Mr. Fang drew a triangle on the stage, and the investor smiled off the stage.

——The Roadshow of Bank of China was a great success!
——President Fang slammed Cyberport, bluntly saying that Heung Kong has lost the opportunity for transformation!

——If it was Mr. Fang who came to Xiangjiang, would the Silicon Harbor project have been successful?

——Leave Boss Zhang, leave Boss Fang!
Obviously it was a report on the road show of Bank of China, but it mentioned Fang Zong more than Bank of China.

Looking at the latest Hong Kong media reports, President Li sighed, this is indeed... Mr. Fang is more influential than he imagined.

(End of this chapter)