Chapter 169 – News that were brought forward
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Feng Yu was holding a copy of
It’s really been brought forward!
Feng Yu had a hunch that he had slightly influenced some of the histories. Although his investment was not a lot, it greatly affected the 3 provinces in the northeast region.
Stocks from a rural area were selling faster than the southern coastal regions. Luckily for Feng Yu, this did not attract the attention of those economists.
The development of Bing City in this life was not in-line with the actual history. It did not decline from an industrial city into a backward city as rapidly as his previous life and the GDP was not having declining growth for consecutive years. In fact, Bing City’s economic growth was rising and catching up with Shen City.
The economic experts had studied Bing City and found that a few old state-owned enterprises had undergone so changes. For example, the Motor Factory had worked with a private entity and started to produce plastic fans. This was a turning point for the factory. Later, it worked together with the Aviation Factory to develop a popular humidifier which penetrated Europe, United States, and Asia's home appliances market, bringing in huge profits.
The success of the Motor Factory had also helped other Bing City’s factories such as the Plastic Factory and other related industries factories. Their profits also increased rapidly and were doing better than their previous peak.
The development of other textile mills, clothing factories, and other light industries was also rapid. According to their studies, it was because these factories had bought a batch of low-cost but advanced equipment from the Soviet Union, which had revolutionized their production techniques. This made them become one of the top factories in China.
Among these factories, the Machinery Company was the most impressive. This company was ranked one of the lowest in China and the furthest their product sold was to Liao Province. Although it was not making a loss then, but there were not many profits either. Their primary markets were the 3 agricultural provinces in the northeast region, but their earnings were miserable.
However, since the restructuring of the Machinery Company last year, the importation of advanced machinery from the Soviet Union and the investment from a Hong Kong businessman and the City Government, there was a total change. From one of the lowest ranking factory, it became one of the top company in China. The agriculture equipment it produced were sold throughout the nation and their profits improved by leaps and bounds!
Everyone had thought that this company was specializing in agriculture equipment and they did not expect this company to import motorcycle production lines and technologies from the Soviet Union. They heard that the production machines were still in the process of calibration and testing. Before year-end, their own brand of motorcycles will be in the market!
Not only in Bing City. Many cities in Longjiang province and even the neighboring areas started to use machinery and technologies from the Soviet Union. This increased the capabilities of these factories and the rapid growth of their economies.
The experts had noticed that they had underestimated the potential of this region. They had not expected this region to prosper again. When they investigate further, they also found out that 2 years’ ago, the Treasury Bonds trading in this region was on par with the southern coastal provinces.
Because of the Treasury bonds and the volume of shares sold in the region currently, the experts started to wonder if the people from the northeast region had a natural flair for trading in the financial market, or they were just rich and were willing to invest in the financial market?
If even the financial markets of the rural provinces from the northeast regions could be so popular, that means that the whole population understood the Treasury Bonds and maybe the people were ready for the opening up of the financial market to catch up with the economies of the developed nations!
Those economists all agreed that it was time to release news of the setting up of the stock exchange to stimulate the market and to encourage spending. They wanted to see if the stock market would progress in the direction they predicted.
Feng Yu read the papers and knew that the stocks were going to rise. Even though they had bought the shares not too long ago, everyone in the company was nervous. This was especially so for Li Shiqiang.
The staffs in Tai Hua Trading had used their life savings to invest, and even if they lost this gamble, Feng Yu had promised them that he would pay them back. A few hundred RMB was nothing to Feng Yu.
But Li Shiqiang was different. He had bought over 10 million RMB worth of shares, and most of them were using loans. He even loaned twice and owed 2 banks.
To Tai Hua Trading, this amount was nothing but to Wind and Rain Logistics, it’s an enormous amount!
Wind and Rain Logistics had started to make profits, but the profits were low. The following 2 months there might be more business as the harvesting of the crops had just been completed. But the profits from these businesses were nothing compared to the loans.
Just the monthly interest from the loans was killing Li Shiqiang. Why were the Hong Kong bank charging interests so much higher than ICBC?
Feng Yu had told him that the shares they bought would not lose money and would rise at the end of the year. But 2 months had passed, and there were still no signs of the shares rising. How could he not be nervous?
He had left Tai Hua Trading to set up his own logistics company. If he lost in this investment, then he might need to go back and work at Tai Hua Trading.
Almost every few days, Li Shiqiang would go to the securities counter in the bank to check the prices of the shares. But every time he was disappointed. There were no changes to the prices of the stocks he bought!
Today he went to the bank again and got the same answer. From the eyes of the girl at the counter, Li Shiqiang knew that she was pitying him.
Back at his company, Li Shiqiang sat in his office and lit a cigarette tiredly.
Someone knocked on his door, and he asked that person to come in. What’s wrong again. Every little thing also need to consult him? What’s the use of hiring these people?
“Brother-in-law, you are smoking again? My sister is pregnant and didn’t you say you are going to quit?” Feng Yu laughed and asked.
Li Shiqiang looked up at Feng Yu and then look down and carry on smoking.
“Brother-in-law, here. Look at the papers.”
What? Read papers? Why do I need to read the articles?
Li Shiqiang took the papers from Feng Yu and scanned the headers of the articles. XX leader visited XX factory, what’s so special about his news? He flipped the papers, and the reports were all similar.
When he was about to put down the newspaper, he suddenly saw the word stock. This word was like a magic curse to him and immediately capture his attention.
He patiently read the article, and he became elated.
Feng Yu had told him before if China was going to set up a stock exchange to encourage the trading of financial products, then that will be the time the value of their stocks rises.
This was the
If the stock exchange is set up, then all shares will rise?!
Li Shiqiang looked up and excitedly asked: “Xiao Yu, is this what you had told me before?”
Feng Yu laughed and nodded. He also did not expect this to happen so fast.
Li Shiqiang jumped up and swing his fist in triumph. I won! I had won this bet!
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