Video Game Empire

In the future Hong Kong stock market, listed companies with Chinese-funded background are divided into two categories, namely red-chip stocks and h-shares. "What the two have in common is that the main business of these companies is located in the domestic market. The biggest difference between them is that red-chip listed companies are generally registered in Hong Kong and are bound by Hong Kong laws; while H-share listed companies are registered in the mainland and are bound by domestic laws.

Most of the early red chip stocks were Chinese-funded companies established in Hong Kong in China. They achieved backdoor listing by acquiring small and medium-sized companies in the Hong Kong stock market, and then carrying out business transformation and asset injection. Li Xuan slapped his head and proposed that he is willing to guide enterprises in the SAR to go public in the Hong Kong photobook market, but it is not easy to implement in practice.

For example, the Huaqiang Electronics Company he chose was actually a backbone enterprise under the Guangdong Electronic Industry United Company. The management power was in the hands of the provincial government, and the SAR government could not control it at all. Moreover, even if Huaqiang Company is willing to go public in Hong Kong, the domestic accounting system is completely different from that of Hong Kong, and the mainland has not even promulgated the "Company Law", so how to win the trust of Hong Kong investors is still a problem.

Therefore, the H-share listing plan will not work at all. In contrast, the red-chip listing is more practical. Because listed companies are registered in Hong Kong, they are subject to Hong Kong laws and regulations, which at least reassures investors.

In fact, there is already a similar precedent in the Hong Kong capital market. For example, as early as 1984, Xinqiong Group, a joint venture established by Bank of China and China Resources, became the first Chinese-funded listed company after acquiring the troubled CANNY Electronics.

certainly. Since Xingqiong Group was originally registered in Hong Kong, it was actually just an ordinary business acquisition with a Chinese background. In contrast, companies registered in the mainland. If you want to achieve a listing on the Hong Kong market curve by acquiring a Hong Kong-listed company, you still need to get approval from the relevant domestic departments.

However, the great man said that reform and opening up is to cross the river by feeling the stones and have the courage to try. The SAR government even had the idea of ​​launching an independent currency, and even printed the banknotes, but it was only because of changes in the domestic and foreign economic situation. In the end it was over.

Compared with these crazy reforms, the central government's approval of companies to go public in Hong Kong for financing is just a pediatrician! What's more, there is an extreme shortage of foreign exchange in the country. There is no reason why this method of borrowing money from Hong Kong stockholders to develop a business should be rejected.

"Little Wang, what's your plan next? Shall we go to dinner together later?" Li Huolin patted Wang Shi's shoulder and asked with a smile.

"Brother Li, let's wait until we return to the SAR. Then let go of the belly and have a good meal! The prices in Hong Kong are too expensive. There is no taste in my mouth anymore." Wang Shi shook his head and smiled bitterly.

Hong Kong's Asia Securities Company held a special counseling session on shareholding reform for enterprises in the SAR. Because the venue of this meeting is located in Hong Kong, and Asia Securities is responsible for food and accommodation. Therefore, regardless of whether there is a will in this regard, the CEOs of various enterprises in the SAR are very willing to come.

Because after the meeting, at least there is a chance to have a good stroll in Hong Kong. Don't look at the deep sea SAR and Hong Kong close at hand, but in the 1980s. Even if these state-owned enterprise executives want to visit Hong Kong, it is by no means an easy task.

The real theme of this meeting. In fact, it is to invite domestic companies to go public in Hong Kong for a briefing. Although Wang Shi got an invitation, he also came over to open his eyes. But he is actually very clear that with the current capital of Modern Scientific Instruments, it is simply not eligible to come to Hong Kong for listing.

As analyst Wei from Asia Securities said when introducing the relevant situation, the most convenient way to list in Hong Kong is to acquire a small listed company. But even small-cap stocks in the Hong Kong stock market usually have a total share capital of more than HK$100 million.

And Shekou Accounting Firm made an asset appraisal for Hyundai Instruments last year. The company's total assets are less than 15 million yuan, and it is impossible to complete the feat of snake swallowing elephants.

"Brother Li, I heard that you Huaqiang Electronics have the idea of ​​listing in Hong Kong. This is the first one in the country!" Wang Shi complimented with a smile.

The former general manager of Huaqiang Group, Yang Guangsheng, was promoted to the Provincial Electronic Industry United Company as a member of the Party Committee two years ago. Li Huolin, who was then the deputy manager of Huaqiang Electronics Company, took over successfully. Huaqiang Electronics Co., Ltd. is definitely one of the most popular state-owned electronics factories in the deep-sea special zone in recent years, which makes Li Huolin, the general manager, also of great beauty.

You must know that the TV factory jointly established by Wreath Shop and the company has an annual output of 700,000 TV sets. Among them, 400,000 units are for export and 300,000 units are for domestic sales. Since this joint venture is responsible for the production of TV sets for American companies, the TV sets produced on the product line are all mid-to-high-end products for the domestic market.

In the electronics industry, the profits of mid-to-high-end products have always been much richer than those of low-end products. The 300,000 TV sets sold by Huaqiang Company for domestic sales are no worse than imported products in quality. Given the current strong demand for TV sets in China, the profits created by these 300,000 TV sets for Huaqiang Company are at least equal to the profits of other TV manufacturers producing 50,000 to 600,000 black and white TV sets or small-sized color TV sets. .

And the remaining 400,000 TV sets for the company's OEM can bring huge foreign exchange to Huaqiang. The reason why Wang Shi knew Li Huolin was precisely because Hyundai Instruments Company had transferred foreign exchange from Huaqiang Electronics Company several times before.

For most import trading companies in Shenzhen, the level of foreign exchange ability completely determines the size of the company's business scale. For example, Hyundai Instruments usually imports various electronic products from Hong Kong according to the needs of the domestic market. However, the currencies paid by domestic merchants are all RMB, while imported products need to consume foreign exchange.

At present, the domestic foreign exchange reserves are extremely scarce, and it is impossible for ordinary companies to apply for a large amount of foreign exchange from the foreign exchange administration. Therefore, the only workaround for everyone is to transfer from other companies with foreign exchange surpluses. Wang Shi is for foreign exchange. I had gone to Li Huolin many times before, and the two became acquainted when they came and went.

"It can't be said that our Huaqiang company has such an idea. In fact, it is from the Dongfang Group, which is a joint venture with us. There are considerations in this regard! I will not hide from you, Xiao Wang, the business of the joint venture factory is so prosperous now, it is entirely dependent on it. The support of the Oriental Group. So we really can't refuse their proposal!" Li Huolin encouraged and showed a somewhat helpless expression.

"Brother Li's job is not easy! But if you can come to Hong Kong to issue stocks, it will definitely be a good thing. The money received here is all foreign exchange!"

There have always been rumors in the deep sea city. Li Huolin's former general manager Yang Guangsheng was a member of the party committee without any real power. It is said that it is because of filth with foreign parties.

"Since the leader has assigned me to this position, no matter how difficult the work is, I must resolutely complete the task!" Li Huolin said with some restraint.

"Haha, it's still Li Ge's splendid festival!" Wang Shi said so. In fact, I was a little unconvinced.

Orient Group's reputation in Shenhai City is not only good. Instead it's very good! Cooperating with them is actually very simple, as long as you follow the rules of the game that everyone has negotiated in advance. Only someone like Yang Guangsheng who thought he was a veteran would be hit with blood.

"Since Xiao Wang, you said to go back to the deep sea to meet again, then I will invite you to dinner in a few days! I have to ask analyst Wei a few questions, so I will talk to you here for the time being!" Li Huolin saw that he just told everyone Ms. Wei Min, who was in class, was not far behind, so she waved to Wang Shi and said.

After Li Huolin finished speaking, he stopped and put on a continuous warm smile. Wait for the lady behind to come over. Wei Min is a senior analyst at Asia Securities Company, and this time he is in charge of this group of corporate executives from the mainland. Explain the various situations of the Hong Kong capital market.

Don't look at how Li Huolin didn't care much about the listing when he communicated with Wang Shi just now, but his heart was actually very hot. Before he came to Hong Kong, Weng Boming, the foreign deputy manager of the joint venture TV factory, had inadvertently mentioned to him that if the joint venture company could be listed in Hong Kong, then the management of the company would definitely pay wages according to the Hong Kong salary standard.

Although Huaqiang Electronics Co.'s benefits are very good, Li Huolin, the general manager, is actually paid by grade. No matter how profitable Huaqiang Electronics is, it belongs to the state. Li Huolin's salary is not much higher than that of the executives of other state-owned companies. On the other hand, Li Huolin has relatively little courage, and he does not dare to do such illegal things as corruption and bribery. At most, he just eats, drinks, and wipes a little of the company's oil.

According to the relevant regulations of the state, the joint venture shall formulate the salary system for the Chinese and foreign managers according to the principle of equal pay for equal work. However, the foreign personnel get real salary, and although the nominal salary of the Chinese personnel is very high, in fact, what they actually get is not the same thing at all!

So don't look at Weng Boming's salary on the salary slip, it's not as high as Li Huolin's, but in fact Li Huolin's salary is less than one-tenth of the other party's. What's more, in addition to the wages offered by the joint venture factory, Weng Boming can also receive a generous subsidy from Dongfang Group.

According to Weng Boming, the general manager of a Hong Kong listed company has a minimum annual income of several hundred thousand Hong Kong dollars! Li Huolin was completely tempted after hearing this figure. If Huaqiang Electronics Co., Ltd. was listed in Hong Kong and could really get such a high salary, then he would naturally do his best!

"Ms. Wei, you just said that by acquiring a listed company in Hong Kong, and then injecting the assets of a domestic company into the listed company, the parent company's registered location can be moved to Hong Kong! So, will the new company's salary system after listing also change? Refer to Hong Kong's standards?" The first question Li Huolin asked the Wei analyst was that it was about his own interests.

"It depends on the specific situation. For example, Huaqiang Company, where Mr. Li works, achieved a curve listing by acquiring a Hong Kong listed company. After Huaqiang Company's assets were injected into the listed company, it became a wholly-owned subsidiary of the newly listed company.

However, it is still a mainland company, so all positions in Huaqiang still apply to the mainland salary system. And if after the company completes the acquisition, Mr. Li, as a major shareholder, holds a major position in a Hong Kong listed company, then the Hong Kong company will definitely apply the Hong Kong salary system! "Wei Min smiled at Li Huolin and explained very methodically.

Li Huolin immediately understood what the other party meant, and his heart fell back into his stomach. According to the news he has inquired before, many Chinese-funded companies in Hong Kong are paying salaries according to Hong Kong's salary standards, rather than just like the domestic joint venture companies, which are just a mirror image. After Li Huolin got the results he wanted, he was even more motivated to go public!

In fact, the reason why Dongfang Group wants to promote domestic enterprises, especially large state-owned enterprises like Huaqiang Electronics to list in Hong Kong, is also out of consideration of its own interests. Because under the Sino-foreign joint venture model, the foreign team has limited control over the joint venture factory. Especially like the Oriental Group, they don't like to use technical monopoly to deliberately stifle their partner's neck.

When the Oriental Group cooperates with domestic enterprises, the most troublesome problem is that the governance of domestic enterprises is extremely irregular, and it is usually governed by people rather than regulations. Therefore, it is undoubtedly the best choice for Dongfang Group to let domestic companies go public in Hong Kong and use Hong Kong's corporate system to restrain them.

And if it is in the mainland, the domestic management has the home field advantage. However, after listing in Hong Kong, the situation just reversed. With the influence of Oriental Group in Hong Kong's capital market, there are various means to counteract it!

Not to mention how Li Huolin will take the initiative to promote the listing of Huaqiang Electronics in Hong Kong after returning to Shenhai City. After Wang Shi participated in this counseling meeting, he also felt that it was very rewarding. In fact, as early as a year ago, he had already started to promote the joint-stock reform of Hyundai Instrument Company.

The original action of Hyundai Instrument Company has been strongly supported by the leading group for the reform of the deep-sea municipal system. However, due to the interference of the parent company SDG, this joint-stock system reform work had to be interrupted later.

Before Wang Shi came to Hong Kong, he heard a gossip. It is said that Secretary Li of the Municipal Party Committee has a very tough attitude towards the shareholding system reform. He has personally met with the top leaders of many municipal state-owned enterprises, including the Special Development Corporation, to do ideological work.

In this way, the joint-stock reform plan of Hyundai Scientific Instruments may soon be released by SDG. Therefore, many of the contents that Wang Shi gained today have great reference significance for the company's next share reform work.

Of course, ~www.readwn.com~ means of capital market financing, in fact, is not limited to listing this way, other such as issuance of bonds is also a good choice. After listening to today's counseling session, Wang Shi was also a little excited. For a company like Hyundai Scientific Instruments, which is engaged in import trade, as long as there is enough foreign exchange, it is not very difficult to make money.

You must know that the company's gross profit is usually more than 30%. As long as you can borrow foreign exchange, it is not a problem to pay that interest! Of course, Wang Shi's concerns are not without it. It is not easy to issue foreign debts in the first place. If all kinds of materials are prepared, and a lot of cost is spent, but in the end the bamboo basket is empty, the loss will be huge!

In addition to the risk of failing to issue bonds, the risk of RMB depreciation is something that has to be considered in advance. For example, the People's Bank of China suddenly announced that the exchange rate of RMB against the U.S. dollar was adjusted from 2.8 to 3.3, and the loss of Hyundai Instruments in the exchange rate was more than 4 million yuan.

If the People's Bank of China cuts the exchange rate again during the company's borrowing period, it will definitely be a major blow to Hyundai Scientific Instruments! However, these are things that can be considered slowly in the future. The main purpose of Wang Shi's coming to Hong Kong this time is naturally not to listen to the counseling meeting on the shareholding reform, but to have another important task! (To be continued.)