Back to Ming Dynasty with Industrial Revolution System

Chapter 1755 Stock Exchange
In Beicheng of the capital, the first stock exchange in China was established here, and many companies founded by private businessmen can issue shares on the stock exchange to raise funds from the public.

Of course, in order to prevent people from being empty-handed, only companies that have reported to the government and have potential can issue shares on the stock exchange.

Chu Yun created a term specifically for this kind of business - "listing".

In addition to helping companies raise funds from the public, the stock exchange puts excess idle funds in society into production. At the same time, bonds issued to solve financial problems can also be sold to the public on the stock exchange.

In addition to developing industrial construction, Chu Yun believes that the financial system also needs to keep up in time to ensure that there are enough funds to continuously invest in industrial construction.

The ability of the Netherlands to become a sea coachman is not unrelated to the prosperity of their commercial banks, stock exchanges and other financial institutions. When the East India Company of the Netherlands issued new shares, Amsterdam alone subscribed for more than 300 shares of [-] Dutch guilders.

In this era, Huaxia's capital is stronger. If the silver and gold from the people are mobilized, it will be even worse than that of the Netherlands.

The main reason is that China, as a country with land rights, is too serious about land, and the people are more willing to invest capital accumulation in land mergers rather than expanding reproduction.

Chu Yun forced the nationalization of land and restricted land transactions so that private silver and gold could be put into industry, instead of falling into an endless cycle of land annexation, peasant uprisings, the establishment of a new feudal dynasty, and land annexation.

The stock exchange also exists to serve industry and economic construction.

Chu Yun personally appeared at the ribbon-cutting ceremony on the opening day of the stock exchange, expressing his support for it.

Many wealthy businessmen who made their fortunes from industry and overseas trade appeared on the scene. Some of them founded companies that issued shares on the Beijing Stock Exchange.

If their shares can be subscribed by the public, then they will get more operating funds to expand their factories or trade scale.

In return, they need to disclose financial information to shareholders and pay dividends.

"This time our Western company controlled by the government serves as a demonstration. We newly issued 25 shares, of which our government bought 125% according to the usual practice, and the public bought 5%. The Western company raised about [-] million taels of silver, and the new share price was [-] taels of silver One share." The stock exchange officials reported to Chu Yun about the stock exchange transactions.

"If I remember correctly, when we first formed a Western company, we issued 250 million shares. At that time, each share was only worth 1 tael of silver. After all these years, each share has reached 5 taels of silver. Also That is to say, with the addition of 25 new shares, the market value of the entire western company has exceeded 1000 million taels of silver..."

After a simple calculation, Chu Yun found that the value of Western companies that go to Europe for trade has increased by five times in more than ten years.

Just a very unimaginable thing.That is to say, the investment of those who first subscribed for the shares of Western companies increased by 5 times.

For example, Li Jinde bought the shares of Western Company with 3 taels of silver, and now it is worth 15 taels of silver.As long as he is willing to sell, the 15 taels of silver will be in his hands, and he can also sell it for a price, waiting for dividends from Western companies in the future, or waiting for the stock prices of Western companies to continue to rise before selling.

"In addition to a few government-run companies, there should be a few private companies selling new stocks today, right?" Chu Yun asked.

"Yes, at the same time, there are seven companies founded by non-governmental businessmen that issue shares, involving textiles, grain, and chemicals..." The stock exchange official replied.

"Chemical...Li Jinde's Li's Chemical Industry?" Chu Yun asked.

"Yes, Li's Chemicals issued 5 shares on the stock exchange, accounting for 40%, and each share is worth 4 taels of silver. A total of 20 taels of silver was raised from the public." The official replied.

"That means the total value of Li's Chemicals is as high as 50 taels of silver." Chu Yun couldn't help being surprised.

Li Jinde's development in the chemical industry is not bad, and the shares of Western companies in his hands seem to be less important than the chemical factory company he started for the second time.

Da Yuer, who follows Chu Yun, is a top student in the Department of Economics, and has always served as a member of the Advisory Committee of the Ministry of Accounting. She also participated in the establishment of the stock exchange. companies have been investigated.

She said to Chu Yun: "Before Li's Chemical was listed on the stock exchange, it spun off its core rubber business and established other companies. The business of Li's Chemical is soap, dyes and other light products related to the textile industry. Chemical business. Heavy chemical industries such as rubber and sulfuric acid are in his new company, and he does not want the core business to be supervised by shareholders. The reason he explained is that he is afraid of leaking core business secrets.”

Chu Yun was a little surprised: "It's interesting, what is his new company?"

"Imperial Chemicals Group."

"..."

Chu Yun understood that rubber was Li Jinde's core business, and he didn't use it for financing. He obviously planned to rely on his own funds to maintain the operation of the rubber factory.

I wonder if this newly established "Imperial Chemical Group" can be sold for 100 million taels of silver?

"His handling like this is also in line with the regulations. Some core technologies are not convenient for shareholders to supervise." Chu Yun didn't care.

For example, the arsenal and the Imperial Shipyard are completely government-funded and will not issue shares to the public.

Li Jinde's "Li's Chemical Industry" compared with the other six companies founded by private individuals, Li's Chemical Industry, which only raised 20 taels of silver, ranked last among the seven companies, and few people understand the chemical industry, so it is actually underestimated The value of Lee's Chemicals.The soap and dye industries are also markets with great potential.

There is also a grain storage and turnover company as a grain merchant, which raised 30 taels of silver; Bangladesh Coal Company, which focuses on coal mining, raised 50 taels of silver...

"Boss, they don't seem to understand what is going on with our Li's Chemical. We are only worth 4 taels of silver per share, and the subscription speed is slower than other companies." It is quite a criticism to understand what their chemical industry is doing.

"It doesn't matter, the 40% of the shares we released are the shares of non-core business companies. We have recently invested all our funds in the rubber factory to produce tires. We are really a little tight before we plan to raise 20 taels of silver. They missed the purchase of our Li's Chemicals Opportunity, then it is their own loss." Li Jinde doesn't care, his current main energy is still in the fledgling rubber industry.

(End of this chapter)