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Published at 29th of October 2019 05:00:08 AM
Chapter 718
It was not Zhang Ruiqiang who had looked for Li Mingde . If Zhang Ruiqiang wanted Bing City Machinery Company to be listed, he would not look for Li Mingde . This was because he knew who makes the decisions at this company . It was Feng Yu .

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The one who had looked for Li Mingde was Bing City Government Secretary . He needed credits for his promotion . He knew Feng Yu was the main shareholder of the Machinery Company and was the overall in charge .

But when the Secretary called Feng Yu, he knew that Feng Yu was unwilling to get this company listed . So, he looked for Li Mingde, hoping that Li Mingde could persuade Feng Yu . He knew Feng Yu trusted Li Mingde a lot . If not, Feng Yu would also not ask Li Mingde to retire early from the government service and rehired him into the company . Li Mingde was even given shares of the company .

The Secretary also felt that Zhang Ruiqiang would not stop this as the whole Bing City Government will get the credit if this company was listed . If the Secretary got promoted, Zhang Ruiqiang would be able to take over his position . Zhang Ruiqiang had performed well in the past two years and will have high hopes of taking over his position . Moreover, he also had support from the Provincial Government no . 1 .

There were also rumors that the Provincial Government No . 1 will be retiring to the backend at the end of the year . At that time, Zhang Ruiqiang will lose his strongest backing in the Provincial Government . Zhang Ruiqiang will not want to be Bing City Government’s Party Secretary? In government service, one wrong step will mean failure .

Li Mingde dare not to offend the Party Secretary, and he could only ask Feng Yu for help .

Tsk . Feng Yu knew that getting listed was the norm for many companies to raise funds . It was better than getting loans from banks and could increase the company’s value effectively .

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But Feng Yu does not want to get listed . This was because once the company was listed, his shares in Bing City Machinery Company would be diluted . For the company to be listed, at least 25% of the total shares had to be offered to the public . Then, Feng Yu and his father would be less than 50% .

Of course, after the company was listed, the share prices will rise, and the shares will be more valuable . But that’s only for people who wanted to sell their shares . Feng Yu had no intention of selling his shares .

In Feng Yu’s previous life, many big companies wanted to be listed was not because they want to raise funds . It was because they were invested by venture capital . How does a venture capitalist make money? They depend on selling the shares of the company after they got listed .

The share prices of some good performing companies or companies favored by investors will rise after they got listed . The Venture capitalist could sell off their shares during that period . Sometimes, they might get more than 20 times the returns .

Also, Venture capital normally owns preferred stocks . They do not have voting rights but will get dividends . Also, they get priority in selling their shares .

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Some companies got listed was to lower their debt ratio . Many companies had lots of debts, but could still get listed . Once listed, they would be able to repay their debts .

Of course, there was also a great benefit for getting listed now . There were not a lot of listed companies on the stock exchange now . If the company were listed, it would be able to increase its brand awareness and image . But Bing City Machinery Company does not need this . Since Bing City Machinery Company launched its motorcycles, the company had become the leading brand throughout China . All their products were selling like hotcakes .

Many companies that were doing well, especially those companies that were owned by an individual, will choose not to be listed . For instance, Shun Feng Logistics . In Feng Yu’s previous life, many people had tried to get this company listed . They told the owner that he could make much more if the company were listed . But the owner refused as he does not lack money .

Another disadvantage of getting listed was the finances had to be disclosed to the public . This was not because Bing City Machinery Company have any debts or fake accounting . It was because Feng Yu does not want his name to appear in the reports .

Although Feng Yu could not hide his wealth completely, he still prefers to keep a low profile and make money silently .

Feng Yu had wanted to set up a holding company in Hong Kong and then transfer all his shares in the various companies to this Hong Kong holding company . But it was too troublesome . Feng Yu must cough out a large amount to do this .


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Current, Hong Kong was still not considered part of China . If Feng Yu were to do this, people would think that he is transferring his assets overseas . Feng Yu had also asked Master Lu for help, but Master Lu could not do anything about this unless Feng Yu sold off all his shares at the market price . If not, the Central Government will step in and stop the transactions .

If this were after 1997, the return of Hong Kong, it would be easier for Feng Yu to set up a holding company in Hong Kong .

Feng Yu thought about this and decided to wait . Also, this was not the right time to get his companies listed . Especially in the Chinese stock exchange . The stock market of China had just started T+1 . This was to prevent the manipulation of the stock market .

But this year, China’s stock market was unstable . China had issued a lot of treasury bonds, and many security companies start to manipulate the market . These two years, the market would be bearish, and investors do not have confidence . If a company were to be listed now, the share prices might even fall .

Of course, if Feng Yu really wanted to manipulate the market, no one would be his match . His technical knowledge and financial backings were the top in China .

But Feng Yu does not want to do this . He does not want to get into trouble . Even if he could cover everything up, others might find out in the future and labeled him as a market manipulator . He will be guilty of cheating all other investors of their hard-earned money .

After the company was listed, the management had to do a lot more . Feng Yu felt that Li Mingde and the rest still do not have what it takes to manage a listed company . Although these people could accept new things, their speed and ability to accept new things were not fast enough .

Also, the cost of getting listed was very high . The company needs to hire people to audit the company, hire lawyers, etc . The audit of the company would be more stringent, and every tiny detail of the company had to be audited . It would be more troublesome if Feng Yu were to transfer all his companies shares to a holding company in Hong Kong .

There were pros and cons for a company to be listed . Feng Yu thought about it and felt this was not the time for him to get his companies to be listed .

Feng Yu told Li Mingde to fend off those government officials . He had given Li Mingde some shares of the company, and this was his responsibility . Feng Yu would never get his company listed for the government officials to claim credits .

Especially…… Feng Yu does not know Bing City’s Party Secretary .

Feng Yu told Li Mingde to inform him if he really could not settle this . He will go back to settle this problem .

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