The Son of Finance of the Great Age

  Chapter 941 Stock Connect

  No one knows why Eric Ben Atz suddenly went crazy and reported his company. For a person with an annual salary of hundreds of thousands of dollars, it is too rare for his conscience to discover this fact. And one of the biggest doubts about the whole thing is that it has been six or seven years since Eric reported the incident, why did he report it now?

  The industry generally believes that there is a conspiracy behind this incident. But when he was interviewed by the New York Times, Eric did not admit that he had any other purpose in beating him to death, but repeatedly emphasized that he could not bear the torment of his conscience. As for whether others believe it, Eric spread his hands and said that he could do nothing about it.

   The black hand behind this incident, Zhong Shi, is currently in Yanjing, participating in a very high-level seminar. The person who presided over this meeting is the highest person in charge of the entire Chinese economy.

  The theme of this economic discussion is "further reform". The specific topics include real estate, steel, foreign trade and export, finance, import free trade zone, tax reform, cultural industry and many other aspects, involving all aspects of the country's economic life. Before Zhong Shi and others came to Yanjing, the entire meeting had lasted for a month.

   Among the people who came with Zhong Shi this time, in addition to the chairman of the Hong Kong Stock Exchange, Li Xiaojia, also included a large number of well-known high-ranking officials such as the director of the Hong Kong Monetary Bureau, the chairman of the Hong Kong Securities Management Commission, and the director of the Hong Kong Administration of Foreign Exchange. As for the meeting here, in addition to the chairman of the Huaxia Suhai Stock Exchange, a series of senior officials from the China Securities Regulatory Commission, the Central Bank, and the Minister of Finance, it can be said that almost all senior officials from both sides in the financial system attended this time. s meeting.

   As a commoner, Zhong Shi was also invited to attend this meeting. Of course, no one disputed this decision, because this decision came from the highest level, and naturally there is some truth to it.

In fact, as Zhong Shi, who participated in the three major crises of Hong Kong's 1998 financial crisis, the US subprime mortgage crisis, and the European debt crisis, he not only survived but also made a lot of profits crazily. Eligible to sit in front of the crowd.

  However, for Zhong Shi, it is unlikely that he will participate in system construction issues. The reason why he was brought in was mainly to let him look at the designed system from the perspective of a speculator, to see if there were any flaws and loopholes in it. If these things are used by people with ulterior motives, then the entire reform will lose its original intention.

"Regarding the exchange rate issue, due to the daily fluctuations in the Hong Kong dollar and RMB exchange rates, I personally think that a settlement fund should be set up between two traders for the settlement of the positions of both parties on the trading day, which is convenient for both parties to trade. It also saves them the cost of exchanging currency.”

  In this conference room, which can accommodate thirty people, senior financial officials from China, including Hong Kong, gathered. The two sides started further discussions on the content of the Hong Kong stock market and the Suhai stock market that had been constructed in advance.

  Out of the window, armed soldiers walk by from time to time. The security here is very tight, which can be said to be impenetrable. After all, everyone’s identity here is of great importance. Every move of any one of them is enough to shake the capital markets of the two places.

"About this settlement fund, it can be operated by a commercial bank, or by the Hong Kong Monetary Authority or the Central Bank's Administration of Foreign Exchange, or even a new fund jointly funded by several commercial banks. How to do it and follow-up The distribution of benefits is yet to be further discussed."

Li Xiaojia continued, "Of course, the current exchange conditions are not impossible. But what I am afraid of is that if the income does not meet the capital's expectations, that is, if it cannot exceed the foreign exchange cost, then it will affect the Suhai market or The Hong Kong market will cause certain positive harm.”

  As the president of the Hong Kong Stock Exchange, Li Xiaojia is positively in favor of the interoperability between the Suhai Exchange and the Hong Kong Stock Exchange. In fact, since he came to power, the Hong Kong Stock Exchange has experienced an unprecedented period of prosperity. This year alone, the funds raised from the Hong Kong Stock Exchange have surpassed the funds raised by the New York Stock Exchange, becoming the world's largest exchange.

Ambitious Li Xiaojia is negotiating with the London Metal Exchange, trying to swallow the commodity trading business of the other party, and in the future develop the Hong Kong Stock Exchange into a heavyweight exchange involving global commodity trading in addition to stocks and derivatives .

  The Prime Minister with a Ph.D. in economics nodded subconsciously, and then scribbled in his notebook, rapidly recording Li Xiaojia's views.

   “A question about regulation…”

The chairman of the Hong Kong Securities Regulatory Commission pondered for a moment, and said, "Whether it is in Hong Kong or the mainland, criminal acts involving the securities industry are criminal offenses. I am not worried about the issue of punishment, but at present both parties have jurisdiction. I For example, if a capital from mainland China commits an illegal act in the Hong Kong capital market, but its legal entity is in mainland China, we have no right to investigate and can only request investigation by sending a letter of assistance. Did it reduce the cost of crime and encourage them to manipulate the market in a disguised form?"

   "I have discussed this issue with our judicial department."

The Prime Minister nodded silently after hearing this, "Indeed, there are jurisdictional issues between the two parties. My personal opinion is that for capital that wants to enter the Hong Kong market, their brokerage firms need to obtain a license to operate the Hong Kong capital market. If there is If there is a problem, the first responsible person will be their broker or legal entity. The most important point is that the credit lists of the two parties can communicate with each other. If there is a suspected crime and evasion, then the capital market of the country Will follow up until they respond."

   "Of course, what I said above is not perfect."

Thinking of this problem, the prime minister has a headache, even he can hardly solve this problem completely, "This is just my personal preliminary suggestion. The specifics need to be further discussed by the judiciary of both parties. I will continue to pay attention to the fight against crime." It can be said that this issue is related to the success or failure of the capital markets of the two places, and neither Hong Kong nor the mainland can take it lightly. Until this issue has a satisfactory result for both parties, our capital market interoperability can be truly implemented. .”

  Although he expressed his determination, the Prime Minister can only talk about it in general because there are still many problems that cannot be resolved on the judicial issue. The following issues have to be resolved by legal experts from both sides.

  After receiving the prime minister's promise, the frowning chairman of the Hong Kong Securities Management Commission nodded silently and said nothing more.

   "Any more questions?"

  The meeting lasted for a whole day, and everyone present was dizzy. Although they were very tired, as the problems were discussed or solved one after another, everyone still had an extraordinary sense of accomplishment.

  However, after half a day, no one raised any new topics, so the Prime Minister threw out such a sentence at the right time, planning to conclude this long meeting with two more sentences.

   "Funds flee!"

At this time, Zhong Shi, who had been silent all this time, raised his arms and said with a stern expression, "There is a very important issue, that is, certain interest groups may transfer large amounts of funds out through the stock market for the purpose of money laundering. One has to guard against it.”

   "Hehe, I thought you couldn't speak!"

  Seeing Zhong Shi finally couldn't help speaking, the Prime Minister touched the tip of his nose with a smile, pointed to Zhong Shi and said, "Our experts have finally spoken."

   Seeing the prime minister make this move, many people also laughed.

  Although they were laughing, they were very emotional in their hearts, because from the beginning to the end, the Prime Minister had a serious face when facing them, with a business-like attitude, without any emotion at all. But when facing Zhong Shi, the Prime Minister was completely relaxed, which made them have to weigh the relationship between the two parties in their hearts.

   "Based on my judgment, I hope that everyone will not take their seats."

  Zhong Shi stood up and said seriously, "After thinking about it, I found that the plan proposed by President Li Xiaojia has loopholes."

"It is a good thing to exchange the funds of both parties in the form of a settlement fund, but there is a very obvious loophole, that is, the funds settled into Hong Kong dollars through RMB can flow freely, which constitutes a capital flight in theory. Possibly. Because Hong Kong is a country, as long as the funds are converted into Hong Kong dollars through corresponding means, they can be moved out of the country openly, and the whole process does not even violate the law.”

"If it were me, I would put a large amount of money into the Hong Kong stock market in the name of investment, and then transfer it through the penny stock market. It is possible for this stock to plummet by 90% in one day. In this case, I can easily The transfer of most of the property can be achieved by colluding with the peripheral bookmakers. From the perspective of the whole matter, I have no problems with settlement funds, Hong Kong stocks, etc., and there is no sign of illegality to check. But the essence of this It’s not investing, it’s money laundering.”

  Hearing Zhong Shi's words, everyone fell into deep thought, even the Prime Minister was no exception.

   Indeed, according to Zhongshi's line of thinking, the whole thing can basically be done flawlessly, and it is not even illegal at all. It seems that the investment failed, but in fact the funds have been transferred out long ago.

   "So how do you think this can be stopped?"

  The prime minister put away his smile, nodded heavily, and asked again, "Or how do you think this situation should be restrained?"

   "Quota!"

Zhong Shi said helplessly, "Develop a daily ceiling, strengthen the access system for capital entry from both sides, and severely crack down on stock market manipulation, but none of these can stop the situation from happening. Personally, I think the best way is, Implement strict foreign exchange controls on institutions and banks participating in the stock market interconnection to ensure that these funds are invested in the market, rather than simple money laundering. As for the specific amount, I think further negotiations between the two parties are required.”

  Whether it is people in Hong Kong or senior officials in the mainland, they all feel headaches about this issue. The reason why they didn't bring it up is because they couldn't think of a good way. For example, quotas, some of them must have thought of this, but no one said it, because it violated the spirit of reform. But now that Zhong Shi said it, many of them breathed a sigh of relief.

   "The other is the issue of the settlement fund. If the limit is implemented, there is no need to establish such a fund."

Zhong Shi continued, "The participation of some banks that have no business in the mainland will only lead to more money laundering activities. My personal suggestion is to position the settlement bank as a bank that is jointly supervised by the Central Bank of the Mainland and the Hong Kong Monetary Authority. In this way, the trend of foreign exchange is incorporated into the entire foreign exchange management system, and the losses caused by capital flight are reduced as much as possible.”

   "I will seriously consider your opinion!"

After taking a deep look at everyone present, the Prime Minister said, "This issue cannot be ignored. This issue should be given the same level of attention as the judicial issue mentioned before. Our reform measures must not become a problem for some people. tool to use."

  He tapped on the table lightly, the sound was not very loud, but it struck some people's hearts like a drum in the evening.

   Thanks to the book friend Oliver Zhuangzhu for voting for the monthly ticket! Thanks to apo11o for continuing to reward! I also saw a little hope of improving my grades. I hope this enthusiasm can continue, and I hope more book friends can support me. Thank you everyone~

  (end of this chapter)