Chapter 1 Ceo of the Hong Kong Stock Exchange

As the CEO of the Hong Kong Stock Exchange, Zheng Yongwen wasn't having an easy time.

This year, the world was shrouded in the shadow of economic recession, and the market was already sluggish. On December 31st of last year, the Hang Seng Index still had more than 15,000 points, but now it had fallen below 10,000 points, with only 9,400 points remaining.

Like 5s Asset Management, it could only be said that his luck wasn't good enough, running into a bear market shortly after its founding.

At this moment.

Zheng Yongwen sat at his desk, tentatively asking:

"You attended the mainland's WTO entry event a few days ago? That's probably the only good news for the Hong Kong Stock Exchange in recent months. Hong Kong's real estate companies are plummeting, fund companies are selling off real estate stocks, and the mainland's China Eastern Airlines' stock price has fallen from one Hong Kong dollar to sixty cents. Yesterday, the entire market's turnover was only 5 billion Hong Kong dollars, and the tourism industry has also been greatly affected. The market needs to boost confidence. I've looked around, and no one is more suitable than you."

After listening, Su Yehao feigned ignorance and asked in surprise, "You don't want me to take over, do you?"

"More or less. Don't you like bottom-fishing the most?"

"But bottom-fishing also depends on the timing. The entire US stock market is frozen. When it opens, it will definitely plummet, and the Hang Seng Index may plummet again. The tourism industry is indeed miserable. My Ganghao Tourism has cancelled about one-tenth of its orders. Tourists are afraid to fly, so it's strange that the stock price of companies like China Eastern Airlines doesn't plummet."

As soon as Su Yehao finished speaking, Zheng Yongwen scolded with a smile:

"Stop it. Such a good opportunity to bottom-fish is right here. The next few years may not be as cost-effective as now. I just want you to say a few words of praise in the media. I'm not asking you to lie through your teeth. The current market is suitable for investment, but a bunch of people are just scared."

Fiddling with the hourglass on his desk, Su Yehao continued, "If you put it that way, then I'm definitely willing to help. Let's wait until this weekend, when the US stock market is about to resume normal trading, to avoid further decline in the Hang Seng Index."

"Okay."

Zheng Yongwen came to Su Yehao today mainly to discuss this matter. He continued:

"What about the fund companies? Your 5s Asset Management is very influential in Hong Kong now. If you are willing to support them, they should follow suit. The entire exchange's capital liquidity is too low. The water has been drained. It's not that people don't have money, but they're just afraid to invest."

"Do you think there are many investors as smart as me? But I don't blame them for being shortsighted. They're really scared by the Zhuang Jia (market makers) harvesting them. They would rather chase highs to earn a little money than seriously study whether a company is excellent from the perspective of value investing."

Turning the hourglass over again, Su Yehao said calmly, "It's still the same sentence. The trading market is not fair enough. Even if Buffett comes, he will be slaughtered. Your penalties for violations are not strong enough. How can investors have confidence?"

After listening, Zheng Yongwen sighed helplessly, "This is not something I can handle alone. The situation is already much better than before the Hong Kong Stock Exchange's restructuring."

As the CEO of the Hong Kong Stock Exchange, Zheng Yongwen's power is quite large, but he is also subject to various constraints.

Some Zhuang Jia are unscrupulous, leading to the emergence of many so-called "demon stocks," with prices rising and falling sharply, harvesting retail investors and running away, which is similar to so-called "Ponzi schemes." It only depends on who is unlucky in the end, and in whose hands it collapses.

The repeated occurrence of such incidents inevitably dampens investors' enthusiasm.

Don't look at Su Yehao's lazy appearance, his mind is moving quickly. He suddenly asked, "When are you going to the North for exchanges?"

"...Exchange what?"

"Attend meetings, congratulate the mainland on joining the WTO, the new era should have a new atmosphere, such as personally making a trip to Si Jiu Cheng (Beijing), suggesting opening up channels for mainland investors to invest in Hong Kong, or further strengthening the promotion of QDII funds. My QDII fund product, shorting the Hang Seng Index, has successfully outperformed the market, which shows that it has certain advantages."

As soon as Su Yehao finished speaking, Zheng Yongwen took a few deep breaths.

The so-called performance was earned by shorting the Hang Seng Index, which was tantamount to rubbing salt in his wounds. As the CEO of the Hong Kong Stock Exchange, it would be strange if he was happy.

Opening a drawer and opening a cigar box.

Zheng Yongwen threw a cigar to Su Yehao, placed an ashtray, and asked, "Is the QDII fund quota that the mainland approved for you not enough?"

"For the time being, there is only a limit of 1 billion RMB, which is currently a pilot project, so it's certainly not enough. A batch of good companies are coming out to list, and I don't want them to be taken advantage of by foreign investors in the end. If they are listed on our Hong Kong Stock Exchange, and the channels for mainland investors to invest in Hong Kong are opened as soon as possible, then it will definitely increase the enthusiasm of those companies to list in Hong Kong, which is also very beneficial to you."

Rarely hearing good news, Zheng Yongwen immediately became energetic, personally lighting a cigar for Su Yehao, and said, "But the flow of funds in the mainland is restricted, and there is a transition period for the World Trade Organization, so it may not be easy to strive for mutual access between the two places in a short period of time."

Once the investment channels are opened, it will greatly supplement the capital liquidity of the Hong Kong stock market, attract more high-quality companies to list, and also expand the influence of the Hong Kong Stock Exchange, further consolidating Hong Kong's advantage as a global financial center.

The benefits are obvious, and as for the disadvantages, there are almost none for the Hong Kong Stock Exchange itself. Local shareholders and listed companies are also happy to see it, and it is indeed worth a try.

Su Yehao replied:

"Don't ask me, I just have an idea, the specifics still need you to study and discuss. If you can only open accounts through designated securities companies, the mainland can manage the securities companies well, and the funds are still strictly supervised, and then set an investment threshold, what impact can this have? Currently, mainland shareholders have no confidence in the market. The so-called prevention is better than cure. As long as there is a complete plan, I don't think they will object, which happens to be in line with the wave of economic globalization."

Nodding, Zheng Yongwen was lost in thought.

It wasn't that no one had mentioned this matter before, but in terms of actively promoting it... the degree of importance was obviously not enough, mainly attracting funds from the European and American markets.

Given the situation of the Hong Kong Stock Exchange, introducing new funds is undoubtedly a solution to overcome difficulties, which is quite beneficial to the development of the Hong Kong Stock Exchange.

Since the restructuring of the Hong Kong Stock Exchange, it is essentially a company, just with a slightly special business. This year, the market is sluggish, and the Hong Kong Stock Exchange's own stock price is approaching the issue price. As the CEO, Zheng Yongwen is also under great pressure, having to consider other listed companies and the opinions of investors.

Including the shares indirectly held through 5s Asset Management, Su Yehao's shareholding ranks first among all shareholders of the Hong Kong Stock Exchange. Even if only considering this point, Zheng Yongwen needs to take his views into account.

After discussing the topic of introducing mainland investors for a while, Su Yehao agreed to split the Sihai Casino (Four Seas Casino) separately and list it separately at a certain time.

He was busy eating alone before, but now he doesn't have enough funds to support so many projects at the same time, and new opportunities continue to emerge. It is expected that in the next few years, including Google, Sihai International, Maotai Winery, etc., will be moved out for financing and listing. Whichever company lacks money will be listed first...