The rise of a great power: starting with military industry

Chapter 666: The Bubble Bursts (Update, please give me a monthly ticket)
Hong Kong.

In the office.

Liu Tao was looking at the profits with a smile on his face.

It was a big deal, and the profits were enough to offset the 300 billion yuan previously spent on highways and high-speed railways.

This time, he is also the main force in shorting the Nikkei Stock Index!
However, when divided into thousands of accounts, it is not so obvious and is far less eye-catching than those large international investment institutions. In order to attract customers, those large international investment institutions publicize their victories heavily, as if they are afraid that the whole world will not know about it. However, Liu Tao chooses to be low-key, to make money in a low-key manner, and to get rich in a low-key manner.

If the Japanese want to hate someone, they should hate Wall Street in the United States and those big international investment institutions, not him.

As for seeing newspapers and television reports about people jumping off buildings every day, Liu Tao did not feel the slightest bit of guilt.

How could a Chinese person feel guilty about making money from the Japanese?

If there is any guilt, it is only guilt for not earning more.

Liu Tao issued an order to put most of the money in the pocket and keep only a portion in the Japanese stock market.

With such a large sum of money, even though he also believed that the Japanese stock market was still some distance away from bottoming out and rebounding, and he remembered that the Japanese stock market bubble burst and fell for several years, he still chose to put the money in his pocket.

Don’t try to earn the last penny!
Just keep a small portion of the money.

Then most of the money that is pocketed belongs to the group, and a very small part belongs to them personally.

However, it will take some time for funds to flow back.

As for what economic experts say, that the Japanese stock market will recover soon, Liu Tao scoffs at this argument.

Because as I recall, this wave of Japanese stock market bubble burst completely, which led to Japan's losing ten, twenty, thirty, forty and even fifty years.

The consequences of the bursting of the stock market bubble this time are very serious.

The first bad consequence is an unprecedented depression in the securities industry. The trading volume in the stock market will be greatly reduced. Securities companies that mainly survive by earning transaction fees will be unable to make ends meet, and their operating deficits will become increasingly larger, leading to bankruptcy one after another.

The second bad consequence is the collapse of the bubble economy, which hit Japan's real economy. During the bubble expansion period, private equipment investment and housing investment had reached saturation, and the growth of government investment had reached its limit. After the bubble burst, the economic situation took a sharp turn for the worse, with equipment investment stagnating, corporate inventory increasing, industrial production declining, and economic growth slowing down. Small and medium-sized enterprises were in a difficult situation, and unemployment increased. As a result, even real estate was not spared. After the bubble burst, it is foreseeable that the decline in Japanese real estate prices will at least fall by half.

The third consequence is a sharp drop in foreign securities trading. Japan's long-term capital surplus will be a watershed, and it will dramatically change from a major capital exporter in the 80s to a major importer. Due to domestic capital shortages, many Japanese tertiary industry companies that expanded overseas in the 80s have withdrawn their capital and fled home.

The fourth serious consequence is also a long-term consequence. When companies enthusiastically turned to direct financing to make huge profits, banks could not stand the loneliness. High-risk companies and non-bank financial institutions eventually became the main financing targets of the banking industry. The bursting of the bubble indirectly led to a crisis in the banking industry, which is also one of the most difficult problems for the Japanese government to solve.

It is foreseeable that once the stock market hits bottom, Japan will experience a long bear market.

If Japan's real economy remains strong and there are no challengers, then relying on the huge annual surplus of Japan's real economy, Japan's economy will improve.

But the problem is that Japan's real economy is not that strong anymore. There are two main reasons why Japan's trade surplus has continued to hit new highs in recent years. One is inertia. The previous investment and brand effect have made this inertia allow Japan to continue to have a trade surplus. The other reason is that the rapid depreciation of the US dollar has caused the unit price of goods to rise rapidly. With the same amount of goods sold, the trade volume naturally rises. In fact, China is developing very fast, and the economic growth rate is very scary.

Since the beginning of reform and opening up, the annual economic growth rate has never been lower than double digits, and has even reached a terrifying growth rate of over 20%.

However, the data released to the public shows that the growth rate is fast, but not that scary.

If you come to China in person and observe carefully, you will definitely find something fishy.

Unfortunately, at this time, there will be no professional personnel coming to China to observe and investigate carefully.

The export volume of Chinese products has increased tremendously and is occupying the global market. In fact, the market share of Japanese products has been declining every year, and the rate of decline is very rapid.

Unlike Japan, whose main markets are in Europe and the United States, China's market is global. It needs the European and American markets, the markets of the vast third world countries, and the markets of the Soviet Union and the Warsaw Pact countries.

It is precisely because of the rapid growth in export trade volume that China has been continuously importing oil, iron ore, copper ore, grain, etc. that Hong Kong's shipping companies are currently making astonishing profits, all because of the freight from the mainland.

Japan has suffered considerable losses in this regard, and another country has also suffered losses invisibly, and that is South Korea.

South Korea’s Han River Miracle came to an abrupt end in the 80s. The shipbuilding industry did not grow as fast as expected, and South Korea’s foreign trade exports were unsatisfactory.

So much so that Thailand is eyeing South Korea covetously and openly states from time to time that South Korea is not worthy of being listed among the 'Four Asian Tigers' and that Thailand should replace South Korea and join the 'Four Asian Tigers'.

It can be said that with the rapid development of China, Japan no longer has any chance, and it is also difficult for South Korea to develop further.

When China develops to a certain stage, it will be a real crushing machine. Relying on its advantages in industrial scale and labor costs, it will be enough to make other countries that want to become industrial countries despair.

It’s a terrifying thing to think about an industrial country with a population of more than one billion.

As long as we keep a low profile for ten years, no one will be able to stop China's revival.

After Liu Tao finished dealing with the matter, he left the office and went to the conference room to hold a meeting.

In the conference room, some people are well-known to many people in Hong Kong and are big shots. Some people are unknown but are real big shots with great power.

For example, the senior party officials in every large company are rarely reported in the news, but these senior party officials have power no less than that of the general manager or chairman. At critical moments, they can even exercise a veto.

It’s just that because Hong Kong implements the "one country, two systems" policy, senior party officials are more focused on party building work, recruiting party members, and carrying out work at the party level, so they are not very famous outside.

Liu Tao convened this meeting to coordinate the dates of the shareholders' meetings of various listed companies to be held in the middle of the year, so as to coordinate his own schedule and announce the time of the shareholders' meeting to the public. In addition, it was to determine what to do at the shareholders' meeting, including the dividend plan.

In order to operate better, some listed companies may not distribute dividends for the time being, or even issue additional shares to raise funds from the stock market. However, if the companies are profitable and have good profits, they should distribute dividends.

(End of this chapter)