Chapter 1590 The Prince Was Angry and Was Exiled to Africa
Because Jiang Xueying handled the situation properly and spent a lot of money to calm investors' anger, investors did not vent their anger on the stock exchange. Instead, they were deeply moved and felt that they were trustworthy and worthy of entrusting their wealth to them.
Looking back over the 200 years of the Ming Dynasty, or even over the 2,000 years of all dynasties, has there ever been such a responsible organization that takes it as its mission to protect other people's property instead of just deceiving people into investing their real money?
What else is there to say? Buy, buy, buy!
After the Dashilan Exchange opened, the previously plummeting stock prices quickly rebounded.
The news spread to Suzhou and Guangzhou. Although the investors there were watching from the sidelines, they still had increased confidence in the stock exchange. A large amount of idle silver poured into the securities market, and the prices of individual stocks in the market also rose accordingly.
A crisis that was big enough to destroy the entire securities market was avoided without any danger.
When the news reached Luzon, Master Zhao, who had been living in fear and had used it as an excuse to skip sleep and even asked his wives to return home early, finally put his mind at ease.
He knew that many people would think he was overreacting, or even too cautious, but that was because they had too few wives... oh no, because they had never seen the horror of irrational investment behavior in the financial market.
In the early period of the long history of financial development in the West, three iconic bubble economic events broke out: the Dutch tulip bubble, the British South Sea bubble, and the French Mississippi bubble. Without exception, they all caused devastating blows to the country's securities market, so that the people were afraid of the ropes after being bitten once, and lost confidence in all financial innovations. It took several generations to recover.
Coincidentally, the company involved in the South Sea Bubble in the UK was also called "South Sea", which shows how important it is to have a good name. Mr. Zhao was unwilling to believe in evil, and he almost fell into the evil of the South Sea Company...
The South Sea Bubble incident brought great shock to the UK and caused countless people to lose their fortunes. For example, the famous Sir Niu Zi Niu was one of the victims. He made a small profit of 7,000 pounds when he first entered the market to buy South Sea stocks, but after leaving the market with a profit, he saw that the stock price continued to soar, and he felt that he had left too early. He then invested all his wealth again, but ended up losing 20,000 pounds and leaving the market, directly losing all his fortune.
In his later years, Lord Niu, who went bankrupt and was forced to eat grass, left behind the famous saying, "I can calculate the movement of celestial bodies, but I cannot predict the madness of human beings."
In the financial market, confidence is more precious than gold. And anything that concerns people's hearts is particularly unreliable. Especially in the early stages of the financial market, it is more appropriate to say that the people gathered in the market are speculators rather than investors. In such an impetuous casino, the development of events is often irrational and counterintuitive, which can easily cause stampedes and even an avalanche that destroys the entire market.
For example, the stock market in the twelfth lunar month is in trouble. Logically, the surge in the stock price of Nanhai Group is good for the entire market. However, this is not the case because there are too few market participants and the amount of capital in the market is limited. The price of a stock has surged dozens of times in a short period of time, which is often at the expense of other stocks.
Moreover, the strong stocks such as Xishan Group and Lugouqiao Group have accumulated too many profits over the years. Many investors have made profits of dozens of times, but they are still reluctant to take profits because they are still bullish. But once a downward trend appears, they will inevitably flee in panic, and then the stampede will happen...
Even for Nanhai Group itself, there are huge risks. The stock price has been pushed to the sky in a short period of time. Once there is negative news, it will fall to pieces.
Although this time, a disastrous consequence was avoided, the lesson was profound. Zhao Hao must not tolerate the culprit, otherwise there is no telling what kind of trouble will happen in the future.
Therefore, he ordered the Jiangnan Group's Board of Directors, the Inspection and Supervision Commission, and the Special Operations Department to form a joint investigation team to conduct a strict review of the parties involved in the "La Yue Stock Market Trouble".
After more than half a year of investigation, the final report showed:
First, Nanhai Group’s motives were not pure. Although it had met the basic conditions for listing, under the premise of sufficient self-owned funds and loose credit lines, the purpose of issuing new shares was not to raise funds for the development of the group, but to raise money from the listing! That is why they designed an installment payment plan that could push up the stock price.
Second, Jiangnan Securities did not strictly control the process. It also violated Article 5, Paragraph 1 of the Securities Market Management Measures (Interim): "Any financial innovation should be cautious, and after Jiangnan Securities conducts a thorough investigation and forms an opinion, it can be implemented only after it is submitted to the Strategic Decision-making Committee for study and approval." Therefore, there are serious violations.
Third, Xishan Group director Zhu Shimao and others stormed the Dashilan Exchange and forced staff to suspend trading. Although this objectively prevented the situation from escalating, it seriously violated the relevant regulations that "listed companies shall not interfere with the normal operation of the exchange."
In addition, during the investigation, it was discovered that Liu Zhengqi, vice president of Jiangnan Bank and chairman of Jiangnan Securities, had accepted banquets from Liang Qin, vice chairman of Nanhai Group, several times, frequently visited brothels, and accepted expensive gifts.
Based on this, the Jiangnan Group Board of Directors imposed the following penalties:
It is recommended that Nanhai Group and relevant responsible persons be banned from the securities market for a period of five years.
It is recommended that Liang Qin be removed from his position as vice chairman of Nanhai Group; Liu Zhengqi be removed from his position as vice president of Jiangnan Bank and chairman of Jiangnan Securities...
It is recommended that Xishan Group and Zhu Shimao and other responsible persons be fined a total of 1 million taels of silver, and that the responsible persons be banned from the securities market for five years.
In the not-too-long history of Jiangnan Group, such severe punishment is very rare, which shows that Mr. Zhao is really angry this time.
Afterwards, he published a signed article in Jiangnan News entitled "Correctly Understand the Role of the Securities Market and Make Every Effort to Maintain Financial Order and Stability", and required all middle-level and above management levels of the group's companies to organize special studies to prevent such incidents from happening again.
Now in the entire southeast, the consequences of displeasing Mr. Zhao are probably more serious than displeasing the emperor. Liang Qin and Liu Zhengqi, the main responsible persons for this incident, were naturally in a state of panic. Not only did they take the initiative to make self-criticisms in public, they also published their self-criticisms in "Jiangnan News", and even donated 500,000 taels of silver each to make up for the group's losses.
This earned Master Zhao the favor of allowing them to meet in Yongxia City.
~~
As soon as he saw Zhao Hao, Liu Zhengqi knelt down and cried for forgiveness.
Liu Zhengqi was also willing to take risks. He slapped his face until it was swollen, and swore to heaven that it was just a normal social interaction and that he would never dare to accept bribes. He begged the young master to give him another chance.
Hmm, this scene seems to have happened before? Yes, otherwise I wouldn't be so skilled.
Seeing how desperate Liu was, Liang Qin had no choice but to kneel down and beg. Otherwise, wouldn't it make him look too ignorant?
Zhao Hao then asked them to stand up, saying that they were all veterans of the group and had made great contributions. But the group was now growing in size, and they had to punish any violations, otherwise they would be doomed.
But past contributions cannot be ignored, and you are also first-time offenders, so I cannot condemn you all at once. Let's put it this way, the group is going to send a plenipotentiary representative to Goa and Cairo respectively. You two are suitable in all aspects, would you consider working abroad?
However, these two places are tens of thousands of miles away from China, and life there must be difficult. I will go back and think about it before making a decision.
What else is there to consider? The two of them were most worried about being kicked out of the group. In today's Southeast, that means being abandoned by the mainstream. Even if you have a fortune, your life will be meaningless.
On the contrary, as long as they are within the system, it doesn't matter if they are marginalized for a while. Moreover, they are all senior executives of the group, and they know that as the group develops, the weight of Portuguese and Ottoman affairs will only become heavier, so there is no need to worry about being completely forgotten, and they will come back sooner or later.
The two of them immediately expressed their willingness to travel thousands of miles for the young master. Not to mention Goa and Cairo, even going to Africa would be no problem...
Zhao Hao had to remind them that Cairo was in Africa.
Both of them turned green when they heard this...
Zhao Hao had to comfort them again, saying that Cairo is in North Africa and the conditions are actually quite good. Even though Goa is in India, it is actually hotter than Cairo.
The two men's faces turned even greener. Well, it turns out that this is not a good place.
There's nothing to choose from, so just do whatever you think is appropriate.
So Zhao Hao sent Liang Qin to Goa, India, to be responsible for liaison with the Portuguese.
Liu Zhengqi was sent to Cairo, Africa, to be responsible for contacting the Ottoman nobles and the Mediterranean merchant group there.
~~
Finally, Zhao Hao ordered Tang Youde to go to Beijing on his behalf and give Zhu Shimao and others a good scolding.
However, only a few brief mentions were made about their disruption of the financial market order, and the focus of criticism was on the fact that Xishan Group was not enterprising and only knew how to sit back and enjoy the fruits of its labor.
It is true that Nanhai Group used some means, but the reason why the stock price soared twenty times in three days is because they were aggressive and performed excellently, which made people see their bright future and unlimited possibilities!
Your Xishan Group started the earliest and has the most capital, but you don't think about making progress and just sit back and enjoy the benefits... Well, you can enjoy the benefits for hundreds of years. But after so many years, apart from making Xishan Cement and poaching craftsmen from Liulichang to make glass, you haven't made any achievements.
No wonder investors vote with their feet as soon as better stocks than them appear!
What a shame! Are northerners really inferior to southerners?
The coal bosses were finally awakened by the scolding. They had no choice but to wake up. Nanhai Group was only temporarily banned from listing, and its normal business was not affected! As the most important core asset of Jiangnan Group, Jiangnan Bank will still spare no effort to support them, and their development will not be affected at all.
If Xishan Group does not make changes, the gap between the south and the north will only get bigger and bigger. When the ban is lifted upon expiration and Nanhai Group is re-listed, the scene of "twelfth month stock market difficulties" will probably be repeated!
The Xishan Group, which learned from its mistakes and then became more courageous, finally stepped out of its comfort zone of making money without doing anything, and began to earnestly implement the "Tangshan Strategy" that Mr. Zhao had prepared for them a few years ago!
p.s. I feel much better after sleeping for more than ten hours. At least my brain can work. I will continue writing...
(End of this chapter)