Once foreign capital enters and disrupts the market, it can cause a collapse, even destroying perfectly good companies. Or, a company might suddenly become someone else's overnight. Just like Huahong Group's Nissan and Toyota ventures, within the rules of the game, massive amounts of capital triggered their equity crisis. Otherwise, they'd be asked to buy back their shares. Do they have the money? If not, the shares become someone else's. Cultural enterprises that have worked hard for decades can easily change hands under the onslaught of capital.
While taking notes of what Xing Baohua said, Professor Meng pondered for a moment and then asked, "How can one find their own set of rules?"
“You have to experience this firsthand to learn from the pain and correct your mistakes. Don’t play the T+0 trading model, and definitely don’t allow unlimited price increases. Otherwise, we won’t even have our underwear left.” Xing Baohua spread his hands.
If Xing Baohua remembers correctly, when the stock trading market was being tested back then, it seemed to have been learned from Hong Kong. It used the T+0 trading rules for real-time buying and selling, and there was no concept of price limits.
After many lessons, I finally learned to set up a one-way trading mode, which only allows buying long and not short, and requires trading the next day.
If rice were to be spun off into a separate company and listed on the stock exchange, the competition would likely be fierce.
With prices soaring and then plummeting, it's no wonder foreign capital is seizing this opportunity to gang up on rice.
To maintain their shareholding, they continuously invest funds, using methods such as share buybacks and other measures. Not only does this make the company very large, but it also ties up capital, making it unable to move for the time being.
It feels good to bully others, and it feels good to be bullied. You always have to pay the price for what you've got.
Therefore, Xing Baohua avoids listing his company if possible. Going public means getting beaten up. If it were a T+1 trading system, well, that would be more profitable, with security and potential for price limits?
Xing Baohua can snap his fingers and take them down one by one, whether it's a one-on-one fight or a group brawl, he can make them suffer.
Without the daily price limit, Xing Baohua felt that even his heart couldn't take it.
They chatted until after 10 p.m., then Xing Baohua took Professor Meng home, saying that they should keep in touch. Su Ya then followed him back to the hotel.
On the way back to the hotel, Su Ya said to Xing Baohua, "We are preparing to list on the stock exchange in China, and Professor Meng is one of the advisors."
“If you have the chance, come in and attend a seminar with him to learn something. Rice is facing some difficulties right now. If it can’t weather these crises, it will only be able to survive in China,” Xing Baohua said.
"What's wrong with the rice?" Su Ya asked worriedly.
"It's nothing. The rice industry is developing too fast, and we've encountered some envious competitors, mostly foreign ones. We can't beat them openly, so we have to resort to underhanded tactics. It's perfectly normal for them to fight us like this. Don't worry, I can handle it," Xing Baohua patted Su Ya's hand, comforting her.
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