Shen Fang glanced at Jin Tianxia.
Jin Tianxia smiled and said, "This is my property."
Shen Fang nodded and smiled, "President Jin Tian, you're too kind, making such a fuss."
"Of course, Mr. Shen is my most honored guest, this is the most basic courtesy."
Shen Fang smiled without saying much, showing that he was indeed very polite.
The customers nearby all turned their curious eyes to see what important person had come and why such a big gambling event was being held.
Jin Tian then escorted Shen Fang into the room.
"Chen Sang, I won't bother you any longer. See you at 7 p.m.
Shen Fang nodded: "Then I won't see President Jin Tian off."
Jin Tianxia waved his hand, saying, "You're too kind."
Jin Tian left, and Shen Fang looked at Shen Kun, Wang Haibo and his five disciples, a slight smile playing on his lips.
"Did they arrive at multiple points?"
Wang Haibo smiled and said, "Boss, we arrived three days ago. The warehouse has been built as you instructed."
Shen Fang nodded.
"To be honest, I don't want to travel around like this, but global stock markets are rising this year. In 2004, apart from the Shanghai and Shenzhen stock markets, almost all stock investors around the world were making money."
The domestic A-shares market is simply phenomenal.
Wang Haibo and others also looked frustrated. Logically speaking, the stock market had been restructured, and things should be moving in a positive direction. But the domestic A-shares market...
According to statistics released by the International Federation of Stock Exchanges, the performance of all members from November 2003 to August 2004 was as follows: New York Stock Exchange rose 15.4%, London Stock Exchange rose 9.2%, Tokyo Stock Exchange rose 9.9%, Hong Kong Stock Exchange rose 18.4%... Shanghai Stock Exchange (SSE Composite Index) fell 4%, and Shenzhen Stock Exchange (SZSE Composite Index) fell 7.9%. However, why did the Shanghai and Shenzhen stock markets suffer such a severe decline in 2004, when global stock markets were generally rising, while A-shares continued to climb globally?
The performance of the Shanghai and Shenzhen stock markets in 2004 was exceptionally poor. From January to December 2004, the Shanghai Composite Index fell from 1497.04 points to 1266.50 points, a drop of 15.40%; the Shenzhen Component Index fell from 3479.80 points to 3067.57 points, a drop of 11.96%. The 1300-point level, considered a rock-solid support, was breached several times during that year.
Besides A-shares, global stock investors are making money.
Globally, 80% of stock market investors made money, but in the Shanghai and Shenzhen stock markets, 95% failed to profit. Statistics show that in 2004, 80% of Hong Kong stock investors reported making money from the stock market. In New York, investors achieved a return of 11.4% from diversified stock portfolios, with some even reaching 18%.
However, investors in the Shanghai and Shenzhen stock markets generally failed to make money, and many suffered significant losses. Small and medium-sized investors in the Shanghai and Shenzhen stock markets experienced substantial losses in 2004: 79.34% suffered losses, 15.33% broke even, and only 5.33% made a slight profit. Among those who lost money, 34.75% suffered losses exceeding 50%, 32.20% suffered losses between 30% and 50%, and only 11.02% suffered losses below 10%.
Wang Haibo said he really didn't understand it.
Chen Guo'er continued, "Wall Street is having a lucrative year, while Shanghai and Shenzhen securities firms are reporting losses. It's not just them; professionals who make a living from the stock market, such as managers and securities staff, are also experiencing vastly different circumstances. Compensation experts predict that Wall Street's average bonus in 2004 will increase by another 10% to 15% on top of the 25% increase in 2003."
It's important to understand that for those working on Wall Street, year-end bonuses constitute a significant portion of their annual income, far exceeding their base salary. Some investment banking executives earn an average salary of $200,000, while their year-end bonuses exceed twice that amount.
However, the mainland securities industry faced a crisis in 2004, with rumors even circulating in September that half of the securities firms would go bankrupt. The income of securities professionals plummeted; those who used to eat abalone and shark fin soup were now reduced to porridge.
Shen Fang poured himself a glass of whiskey: "The stock market is not only about allowing investors to share in the fruits of corporate growth, but also about providing companies with financing channels and optimizing resource allocation. However, the sluggish performance of the Shanghai and Shenzhen stock markets has led investors to regard financing as the 'culprit' for the continuous decline in the stock market, and their resistance to new share issuance is exceptionally strong."
"Currently, besides the issue of the stock returning to its original state and complying with the rules again, there are two other issues."
Firstly, current investors are still paying the price for past mistakes. Firstly, they are paying for the "5.19" market rally and the "capital-driven market rally of 2000"; secondly, they are paying for overpriced shares. For example, when Sinopec issued its A-shares in July 2001, the offering price was 4.22 yuan per share, while its H-shares were issued in Hong Kong at only around HK$1.3 per share. Currently, Sinopec's A-shares closed at 4.36 yuan, and its H-shares are priced at around HK$3.2. The same company, just because of different initial costs, resulted in completely different returns for investors.
Secondly, the structural problems within the A-share market contribute to this situation. Although the overall market fell by 13.87%, many speculative stocks, ST stocks, and stocks previously manipulated by large investors experienced declines far exceeding that. However, many small and medium-sized investors hold these types of stocks. This is a significant reason why, in 2002, when the Hong Kong stock market index fell by 15%, 31% of investors still profited, while in 2004, when the A-share market experienced a similar decline, 95% of investors suffered losses. According to calculations of the A-share ST sector index, over the past three years, the ST sector index has fallen by approximately 33% annually.
In fact, A-share prices are moving in the right direction, indicating that there were unreasonable aspects to the previous A-share pricing. It also shows that the current market price movement is beginning to get on track.
"The A-shares market will eventually rise, but our main focus remains on Hong Kong stocks, US stocks, and Tokyo stocks. We'll enter the A-shares market once it stabilizes."
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