The rise of a great power: starting with military industry

Chapter 563: No One Wants Shenzhen Development Bank’s Original Stocks (Updated)

Liu Tao believes that the possibility of this financial crisis triggering the S3 season is very small.

The Soviet Union has made internal jokes more than once or twice and has been ridiculed by European and American countries many times.

As for the United States, Liu Tao even believes that this financial crisis was deliberately created by the U.S. government to fleece the entire world.

He remembered that this economic disaster, which spread from the US stock market crash to the global stock market crash, did not cause the Great Depression like the US stock market crash in 1929. The stock market recovered only a few months after the crash.

More importantly, a few days after the US stock market crash, a large number of institutions sold US dollars, causing the US dollar to depreciate significantly.

This kind of robbing the world's wealth to pay for them has always been something the US government likes to do.

For the United States, as long as the government intervenes well, it can not only squeeze out the bubbles caused by the rise in previous years, but also make economic development healthier. History also shows that after this short-lived US stock market crash, the US stock market continued to rise for more than ten years.

Although there are huge dividends brought by the collapse of the Soviet Union, the fact that the US stock market crash has reaped wealth from all over the world is also an important reason.

The global stock market crash was also triggered by the US stock market crash, which made the already declining economy of Europe even worse.

So based on this judgment, he kept a portion of the profits and bought some stocks of US listed companies at the bottom. He was gambling that the United States would rescue the market and that the effect of the rescue would be good, so he could make another fortune.

Of course, even if the money is lost, it is not a big problem, because the money that has been put into pocket is enough to ensure a huge harvest.

Liu Tao also does not think that this stock market crash will take the United States down, because the dividends the United States reaped from the two world wars were too generous.

The United States is undoubtedly the world's largest economy today, and its GDP and fiscal revenue are the strongest in the world.

The United States has too much wealth, which is enough to allow it to dominate the world for fifty years.

This is because the United States fought two disgraceful wars, otherwise it could probably dominate the world for a hundred years.

"We are going to return to the customs next. Because of the financial crisis, some colleagues are not very optimistic about the shareholding reform of state-owned enterprises and financial reform, and they are a little worried. What do you think about this?" The old man mentioned something.

Although this financial crisis did not affect China, it still had a great impact on China.

China's return to the customs was something that was agreed upon last year.

The price is support for some of the United States' international affairs and increased imports of American agricultural products.

Before, returning to the General Agreement on Tariffs and Trade was naturally a good thing, which meant that foreign trade would be much more convenient and there would be many privileges.

However, during this super Black Monday in the United States, the U.S. stock market continued to fall, causing a stock market crash that spread to the whole world and formed a global financial crisis, which really scared many people in the country.

According to Europe and the United States, China still has many conditions to meet in order to return to the General Agreement on Tariffs and Trade. They have put forward a large number of conditions, including the shareholding reform of state-owned enterprises, financial reform, etc.

As a window and pioneer of reform, Pengcheng issued the "Interim Regulations on the Pilot Program of Shareholding of State-owned Enterprises" to encourage large state-owned enterprises in the Pengcheng Special Economic Zone to carry out shareholding reform. However, the actual effect was not ideal, and there was strong opposition from below.

In May this year, Pengcheng City merged 20 rural credit cooperatives in the city to establish a new Pengcheng Development Bank. The newly established Shenzhen Development Bank originally planned to adopt a joint-stock system and was preparing to publicly offer 795 million shares at a price of yuan per share.

However, after nearly two months of selling Shenzhen Development's shares, the actual progress has been very pessimistic, with less than 3 shares sold.

Later, the Pengcheng Municipal Committee asked Liu Tao for help. Liu Tao asked his various companies and his relatives to buy the shares, and only then were all 795 million shares of Shenzhen Development Bank offered for public sale sold out.

Liu Tao's family purchased 30 shares, Qian Huaqiang's family purchased 20 shares, and Liu Qi's family purchased 30 shares.

"The shareholding system is a new thing in China. It is normal that it is difficult for the general public to accept and recognize it for a while! Especially the state-owned enterprises in the mainland are used to the 'big pot' and 'iron rice bowl'. Asking them to give up the unconditional guarantee of the state will naturally cause a lot of opposition." Liu Tao said, "But since we have made a commitment to the outside world, we cannot give up the reform of state-owned enterprises because of difficulties or fear."

The reform of state-owned enterprises is a long and arduous task, because state-owned enterprises cannot compare with private enterprises in terms of flexibility. Countless state-owned enterprises have been defeated by private enterprises in recent years.

If state-owned enterprises want to regain vitality, they must reform, which is the internal driving force. External commitments are external driving forces.

China has always been committed to integrity. Once a promise is made, it will certainly be carried out and fulfilled.

Communists and Chinese people keep their words.

"Public ownership is the main body, and various ownership economies develop together. This is our basic economic system in China. State-owned enterprises are the main body, and private enterprises are the supplementary ones, and they jointly develop and invigorate the economy." Liu Tao said, "When it comes to the future of the country and the basic livelihood of the people, state-owned enterprises are naturally the main body."

State-owned enterprises have never taken profit as their primary goal, because they actually bear great social responsibilities.

"Financial reform is also imperative. Domestic banks are currently inefficient and immature. We need to carry out financial reform to activate our finance and improve our financial level." Liu Tao said: "I even think that we can learn from Europe, the United States and Japan and develop the stock market."

"Oh? You also recognize stocks?" the old man asked curiously.

In fact, there is a special team studying the Hong Kong stock market, with mixed reviews.

Although the Hong Kong stock market is the most mature stock market in the two sides of the Taiwan Strait and Hong Kong and is even second only to the Japanese stock market in Asia, it is much less standardized than Europe and the United States. Overall, it is still not very mature and has a stronger risk appetite.

"In my opinion, stocks should be used as an investment channel for wealth preservation and appreciation. Interest rates in European and American countries have long been market-oriented and have always been very low. The interest earned by depositing money in banks often cannot even keep up with the growth rate of prices, which means that the money in the hands of ordinary people is actually depreciating! In this case, choosing a stock with good performance for investment can often bring considerable returns! Even if you don't have confidence in your own vision, you can choose to buy various public stock funds and let professional fund managers manage your finances!"

"Of course, the stock market must be regulated, and finance must also be regulated, otherwise all kinds of tricks will be played around with," said Liu Tao.

But he remembered deeply that the domestic stock market is completely different from the world stock market, and investors are completely like leeks in the eyes of the market makers, who are harvested over and over again.

As for why his opinion is so profound, of course it’s because he has also been a leek and been cut!
So much so that he firmly believed in the saying "Stay away from the stock market and cherish your life".

He naturally hopes that the stock market era can be ushered in in China, but it must be regulated, otherwise the same drama will probably be repeated again.

(End of this chapter)