Chapter 346 Poverty and Armed Debt Collection

The 26th was Friday, and the securities regulatory agency’s routine press conference had a new spokesperson.

The stock market crash is a self-adjustment of the market's previous rapid rise. It is caused by liquidity fluctuations and investment deleveraging. However, the dividends of financial reforms are released and liquidity is generally abundant...

The new spokesperson was speaking eloquently on the TV screen, while the audience outside the screen was silent. The air conditioner was working hard to blow out cold air, but it couldn't disperse the smoke that filled the conference room.

"Okay, let's officially start the meeting."

The deputy head of the financial stabilization team turned off the TV. Although he did not say anything, everyone present could see the disbelief on his face.

The attitude of the regulatory authorities can be summarized in one sentence - admitting that the recent stock market decline is related to restrictions on leverage allocation, but the problem is not serious, and social capital and private hot money will continue to support the stock market as always.

"The current market panic is causing a stampede and a lack of liquidity. Before discussing whether the province needs to rescue listed companies in the province, we must prevent a systemic liquidity crisis."

The deputy team leader, who has a technical background, emphasized bluntly: "Cash flow, keeping cash flow in hand, is the top priority for maintaining stability and getting through this round of decline safely!"

Liquidity and cash flow, now anyone with a brain knows that this is the only way to survive.

He Yu sat in the corner, slightly absent-minded, looking at the representatives of the provincial branches of the four major banks who were seated on both sides of the head of the conference table. Usually, they did not sit so close to the front.

"The situation is now very clear. For the time being, we cannot rely on the competent authorities to support the stock market. Everyone needs to save themselves."

The economic leader who personally took charge of the stability maintenance team began to speak: "But as the old saying goes, those who save themselves will always be saved by others. On behalf of the province, I will overcome the difficulties with you. First of all, money. Comrades from banks and state-owned enterprises should take stock of their assets and come up with a specific number of funds that can be mobilized at any time."

"I'm not asking you to make a generous donation right now. We need to discuss it in advance."

Listening to the coaxing and persuasion, the representatives of the four major banks twitched their lips. You old man really treat us like children.

Not to mention that there was not a penny to be generously donated to save the enterprises. Just before coming to attend the meeting, the bank was holding a meeting to discuss whether to cut off routine businesses such as inter-bank fund borrowing and holding with small securities firms in the province.

The four major banks still have to consider their social responsibilities and submit reports to their superiors. The joint-stock banks, city commercial banks and credit unions in this province have already verbally notified them to do so!

"Fortunately, today is Friday and we have a two-day weekend to catch our breath. Don't play dumb. Please ask the provincial finance department to take the lead, and then the Jingyue municipal finance, urban investment, and credit union units." The team leader directly named everyone and told them not to escape.

He Yu was thinking about the rather elaborate ranking. From January to May this year, the total local fiscal revenue of the whole province was only over 1 billion yuan. How poor is this?

Not to mention how to avoid the risk of violations when investing in enterprises, even if the financial representatives sitting here attending the meeting were to cook themselves in an iron pot, they would not be able to make any profit.

Not to mention the Jingyue city-level finances. The second speech was made entirely because half of the province's listed companies are concentrated here, and there is also Yunshan Group, an unlisted invisible giant. It would be unjustifiable not to make a statement first.

As for units such as municipal investment companies, credit unions, and securities firms, they are not asked to pay the money. The team leader is clearly seeking the best and the middle.

——I know that you can’t come up with much after searching hard, but at least don’t try to take care of yourself and hold on to the situation and don’t fall behind.

He Yu glanced at the solemn face of a brokerage boss present. This bastard contributed to the limit down of Wogu Agricultural Machinery today.

Last year, when the company went public, he came to us and tried to build relationships with us, thinking that it was difficult for small securities companies in the province to operate and give him some IPO issuance shares. As a result, now he has turned around and added insult to injury, selling off shares and running away.

Most of the dozens of listed companies and financial institutions present had similar small moves. On the surface, they seemed to be in the same boat, but in reality, they had different thoughts and no one trusted each other. There was also a game of rushing to get ahead and trampling on each other.

"Everyone who should speak has spoken. You four gods of wealth, please say something!"

He Yu was just thinking about it when the representatives of the four major banks, who were specially arranged by the team leader to be the last to give them enough time to weigh the issues, looked at each other in surprise. No one wanted to be worthy of the title of God of Wealth.

Although they are all named as the Big Four banks, the province is extremely poor, how rich can they be? Leaving aside various compliance issues, the four banks can only raise 20 to 30 billion in cash at most in two days of the weekend.

The CCB representative glanced at He Yu inexplicably. The end of June was not far from the autumn harvest, and Yunshan Group had billions of cash in their bank account that could be used at any time...

"Clap."

The team leader bent down to empty the ashtray, tapped it on the edge of the trash can twice to shake out the ashes, picked up a plastic lighter, lit a cigarette, leaned back, held the conference table with one hand, and held the cigarette to his lips with the other hand, puffing out smoke.

"Well, let me say a few words."

The deputy team leader coughed lightly to ease the solemn atmosphere: "The risk of a stock market crash is obvious to the naked eye. The number and scale of listed companies in our province are not worth mentioning compared with economically developed provinces, but they have become the leading pillars of various industries in our province."

"Any company that suffers from the risk of a stock market crash will suffer a loss for the entire province's economy. I think all the representatives of the units present here have worked with them extensively and know clearly that I am not exaggerating."

The deputy team leader, who was over 60 years old and had gray hair, sighed deeply and said emotionally: "So comrades, saving them is saving yourselves, and the lips and teeth are cold!"

If the entire province is compared to a big family, this family is very poor.

The patriarch, who was sitting in the main seat with his brows furrowed like a "川" shape, had to forcibly take money out of the pockets of his brothers' foster children in order to save his own children.

The poor have short ambitions and the thin horses have long hair. The stalemate is very embarrassing at this moment. As the old saying goes, a penny can make a hero fail, let alone billions of cash.

"I would like to express my position on behalf of our provincial branch. We are not talking about generous donations. If listed companies in the province need help, our bank will try its best to squeeze out 30 billion yuan." The representative of CCB cut the psychological expectation in half and added after a brief pause: "But there is a prerequisite. There must be a guarantor to take the lead in organizing the syndicate. Otherwise, we will not be able to pass the compliance review of the head office."

"I will take care of this problem and I will make sure you don't violate the rules." The team leader quickly agreed after putting out his cigarette.

All the participants in the meeting could not help but be stunned. After all, no matter how poor the four major banks were, they would not be able to only come up with 30 billion. There must be a lot of potential and price to be discussed!
The representatives of listed companies secretly thought it was a pity that they wanted to share the worries of the team leader, but you couldn't save face, so how could we... Several state-owned enterprises and securities companies were anxious and smacked their lips. They had no problem protecting themselves for the time being, but if they could take the opportunity to get some money from the bank, they would take advantage of it...

The representatives of the remaining three banks felt like they were a group of hungry wolves with their eyes shining. They immediately stopped hesitating and shirking their responsibilities and quickly expressed their opinions one after another.

After piecing together all the pieces, they finally came up with a plan to form a special banking consortium for financial stability worth 150 billion yuan. Shancai Nanshe paid half the amount than expected, and the representatives of the four major banks breathed a sigh of relief.

"It's getting late. I don't have any midnight snacks prepared. Let's all go back."

As he spoke, the team leader stood up and supported the table with both hands: "One last thing, please cooperate sincerely and do your best. If anyone does not consider the overall situation and causes trouble now, I will make him cause trouble until I retire!"

"..."

All the participants in the meeting looked at each other in silence, and left the meeting in a sad manner. At this point, a living person cannot be suffocated to death by urine. In addition to the province's rescue, it is also crucial for each company to show their magical powers.

With the mentality of going to the grave, He Yu made up his mind and decided to go back to the group to ask for money tomorrow. If they don’t give it to him, he will hang himself. He will die unjustly in front of the group’s gate and will never be able to close his eyes!

"Lao He, wait a moment, follow me."

The familiar vice president of Jingyue City Investment chased him from behind, grabbed his arm, and dragged him into a small office without saying a word.

"What does Yunshan have to say about the sharp drop in your company's stock price?"

"..."

"I'm asking you on behalf of the organization. If you don't tell me now, I can only take you to see the team leader."

"How about you ask the team leader to ask our chairman?"

“……” This time it was the deputy general manager of the municipal investment company’s turn to be speechless.

He Yu said sullenly, "After the market closed today, our company's boss rushed back to the group for help, but was sent back by the chief financial officer who said that the amount of funds to be used was too large and required the approval and signature of the chairman, but the chairman was not in the company."

"Where is your young General Manager Xie now?" The deputy general manager of the municipal investment company readjusted his thoughts.

“Maldives or Europe?”

He Yu scratched his hair in frustration: "I called his assistant, and his assistant told me to contact Su He, a partner of Taihe Capital. Su He told me to contact Tang Man of Grapefruit Capital. Tang Man told me to contact Mr. Xie. I want to meet him more than you do!"

"Old He, don't get excited. Calm down a little. The team leader wants to talk to you." The deputy general manager of the Municipal Investment Corporation said soothingly.

…………

"He Yu from Wogu Agricultural Machinery again? Why is this guy so difficult to deal with? Tell him I'm not in the company."

In the Magic City, at the Grapefruit Capital office, Tang Man was so annoyed that she held her forehead with her hand.

"It's not He Yu, it's Vice President Liu from the Institute of Economics of Jiaotong University." He Chuan shrugged and raised his vibrating cell phone to indicate.

Tang Man was hesitant. The Institute of Economics of Jiaotong University was one of the first institutions to react to market risks in this round of stock market crash. The most important thing was that they were located in Shanghai, and if she didn't answer the phone, they could run to Xiyou's office and block the door.

"Great news, the central bank announced a targeted reduction in reserve requirement ratio and interest rate, double reduction!"

The office door was pushed open again, and Zhan Yunping, who was promoted to investment assistant in the securities active investment strategy team at the beginning of the year, rushed in, holding up an iPad in his hand, the screen of which displayed a photo report issued by the Hong Kong media.

A picture was photoshopped of the central bank's decision-maker beating a bear with one hand, implying the defeat of the bear market, and the nonsensical tough guy temperament is fully displayed.

"Have you read the news that the Greek national debt repayment negotiations have failed?"

Tang Man looked at him with disdain, uttered two simple words and pointed to the door: "Get out."

Zhan Yunping was dumbfounded and confused. The failure of the country's debt repayment negotiations literally meant that the money owed would not be repaid. Greece would hold a referendum to decide whether to repay the money owed to the international financial creditors.

If the people decide not to repay their debts, then they are just hooligans and refuse to pay!
If an individual owes money and doesn’t pay it back, the creditor can sue him in court and if that doesn’t work, the creditor can enforce the debt. But if the country owes money and doesn’t pay it back, how can the debt be collected?
Do we have to send the army to collect the debt armedly? Compared with this kind of drama, the creditor is more likely to lose all his money.

Therefore, the central bank's reduction in reserve requirement ratio and interest rate is to hedge against the international financial and monetary risks that may be caused by Greece's debt default, and has nothing to do with the plummeting domestic stock market.

"What's the point of lowering interest rates during a liquidity crisis? Until now, a lot of people are still confused and don't know where the problem lies. It's really nonsensical!" Tang Man was powerless to complain.

(End of this chapter)