The rise of a great power: starting with military industry

Chapter 564: Further Reform Pace
The stock market, also known as the stock market, is a place that provides stock trading services.

Including the issuance of stocks, trading of stocks, delisting of stocks, etc.

The stock market can be divided into the primary market and the secondary market. The primary market is the stock issuance market, and the secondary market is the stock circulation market.

Any major economy in the world, as long as it follows capitalism or learns from Europe and the United States, has a stock market.

Those who are pursuing socialism are all learning from the Soviet Union. The Soviet Union originally believed that the stock market was a product of capitalism and a bad thing. Therefore, there was no stock market in the Soviet Union at all, let alone a "crash" or stock market crash.

The same is true for China, which has not set up a stock market so far.

However, China has long been allowing state-owned enterprises to go public in Hong Kong to raise funds and thus obtain development funds.

For China, which is undergoing reform and opening up, the stock market is naturally very important, because this is learning from Europe and the United States. With a stock market, companies can obtain financing by going public and have funds for development.

Even after the reform and opening up, China's economy has developed rapidly, changing with each passing day, especially the supporting industries driven by Panshan Group, which can be said to have developed extremely rapidly.

Panshan Group is developing rapidly, and its supporting factories are also developing rapidly.

Panshan Group invested in the construction of high-speed railways, highways, reservoirs and hydropower stations, thereby driving the rapid development of steel, cement, gravel, sand, mechanical and electrical, etc.

However, China's state-owned enterprises, or both state-owned and private enterprises, are still very short of funds.

Even though several Hong Kong banks controlled by Liu Tao have developed lending businesses in the mainland and can issue a lot of loans every year, it is still far from meeting the needs of society.

If there is a stock market, then raising funds from it will be an important channel.

Liu Tao also has some understanding of the Chinese stock market.

It can be said that the reform of state-owned enterprises is a heavy topic, but it is not possible without reform of state-owned enterprises.

The old man smoked a cigarette.

The current situation is much better than it was at the beginning.

Although there are many problems and tough issues, the general trend is on the side of reform.

The reform of state-owned enterprises requires funds as well as talent. Otherwise, the funds allocated will be quickly squandered, and there will be no good progress in the reform of state-owned enterprises.

Just like the Panshan Machinery Factory back then, the successful reform was due to the soul figure Liu Tao.

In recent years, the development of Panshan Group has solved a lot of difficulties for the country. Its development in the southwest alone has driven the development of the entire southwest, making the southwest develop very quickly and ranking among the top in the country.

The foreign trade of Panshan Group has earned a large amount of valuable foreign exchange for the country, so that China does not have to worry about insufficient foreign exchange in external exchanges.

China does not lack RMB, what it lacks is foreign exchange!
Panshan Group does business with several countries in South America, and as a result, it imports a large amount of grain, iron ore, beef, mutton, etc. from South America to make up for the domestic shortage. Panshan Group also does business in Africa and obtains mining and oil resources through legal means. Even because of Panshan Group's actions in Southeast Asia, China's situation in Southeast Asia has greatly improved, and it has friendly countries such as Myanmar, Thailand, Laos, and Cambodia.

It can be said that China's situation in Southeast Asia has greatly improved, and it can smoothly cooperate with its neighboring countries for mutual benefit and development.

The Panshan Group made a move in the South Asian subcontinent, which suddenly turned the situation on the border around.

Moreover, Panshan Group has played a vital role in the stability of Hong Kong. It is the stabilizer of Hong Kong and has enabled the country to have enormous space in Hong Kong.

Panshan Group has earned a lot of wealth overseas and invested heavily in domestic infrastructure, whether it is the construction of reservoirs and hydropower stations, the construction of the Beijing-Kowloon Railway, the Beijing-Shanghai Railway, or the construction of the Shenyang-Haikou Expressway. This not only builds infrastructure, but more importantly, solves the resettlement of veterans after the streamlining of the troops, and plays a role in social stability.

Just this year, Panshan Group pushed for the approval of four major hydropower station projects on the Jinsha River, and the Three Gorges Project was officially launched.

The amount of money that needs to be invested here is huge.

All these funds were provided by Panshan Group, helping the country to reduce its financial burden.

"Speak more carefully!" said the old man, smoking a cigarette.

Liu Tao said: "Leader, this is what I think. If we want to succeed in the shareholding reform, we need to start from two aspects! The first aspect is to establish a professional securities company to temporarily act as the sole agent for all stock transactions. When the time is right in the future, we will establish a real securities trading market!"

"The second aspect is to promote a group of high-quality enterprises to carry out shareholding reform first. And I think these pilot projects do not necessarily have to be limited to the narrow scope of state-owned enterprises. Township enterprises are also an important part of China's economy. Moreover, compared with state-owned enterprises, township enterprises not only have less historical burdens, but also face a more dangerous living environment. Therefore, they are also motivated to reform." Liu Tao expressed his suggestions.

"The Hong Kong Stock Exchange has limited capacity for listing. How many state-owned enterprises can be listed in Hong Kong? Two or three state-owned enterprises a year, and only 20 to 30 state-owned enterprises in ten years are listed in Hong Kong." Liu Tao said: "We still have to delve deeper into the mainland and further expand the scope and depth of reform. The Hong Kong market is limited, but the mainland with a population of one billion is a huge market with unlimited potential."

"As for Hong Kong, we can use Hong Kong as a window, a bridge, and act as a transit station. In the future, we can promote the integration of Hong Kong and Shenzhen, and even eventually build it into the Guangdong-Hong Kong-Macao Greater Bay Area. However, for the entire China, just one Guangdong-Hong Kong-Macao Greater Bay Area is not enough. We need more engines as engines of economic development," said Liu Tao.

Whether it is the current Hong Kong, the Hong Kong-Shenzhen integration that is currently being worked on in theory, or the Guangdong-Hong Kong-Macao Greater Bay Area in the future, it is always a small place compared to the vast China.

The Guangdong-Hong Kong-Macao Greater Bay Area alone is far from enough.

If China wants to develop rapidly, it will inevitably need more engines.

Therefore, reform in the mainland is fundamental, because this is a huge market with a population of over one billion and unlimited potential.

It is true that the country is now mainly focusing on foreign trade and working hard to make money.

But in the final analysis, it is impossible to rely solely on foreign trade.

Because walking on one leg is unstable, you need to walk on two legs, and developing the mainland market is also a top priority.

Finally, a dual circulation of foreign and domestic markets will be formed, and the initiative will be firmly in our own hands.

(End of this chapter)