Traveling through the sword to engage in military industry.

It happens silently and no one expected that this wave of personnel transfers would be the beginning of a new era.

Ren Zhong thinks it is difficult to recruit talents without any restrictions, but there is a way to find talents among outstanding young people and cultivate them.

Now, not to mention other companies, the number of employees in the companies under the Liming Group alone has already exceeded one million. Every year, thousands of young college students and graduate students choose to join the Liming Research Institute and its affiliated companies.

In terms of talent enrichment, the Liming Group says it is second, and no other company dares to claim to be first.

With more than 100,000 high-end researchers, the Dawn Research Institute is a behemoth. Because it has such a large talent base, Ren Zhong gives priority to selecting and training talents from within its own system.

Xue Xiaofeng is just the first example, and the next ones will be the second and third.
Hong Kong, in this world of swordsmanship, due to the rapid rise of Southeast University, the Oriental Pearl is taking off even faster.

By the 60s, Hong Kong had become one of the most prosperous cities in the Far East.

Due to its open financial policy, Hong Kong is also one of the top financial centers in the Far East. The abundant capital here can accept companies from all countries in the world to apply for listing here, as long as they meet the conditions of the Hong Kong Stock Exchange: three ones, revenue exceeding 1 million US dollars, profit exceeding million, and establishment time exceeding one year.

As long as you accept Hong Kong's unified accounting standards, you can apply to be listed in Hong Kong.

This rule seems simple, but in fact, if a company wants to meet this standard, it has no chance at all unless it has grown to a certain scale after several years of operation.

In smaller countries, it is even difficult to produce a company that can achieve a revenue of 100 million US dollars. However, under such harsh conditions, the Hong Kong Stock Exchange has gathered thousands of listed companies, basically absorbing most of the new generation of companies in the Asian server area and nearby Oceania. Although the conditions are much higher than other places, financing and monetization here are much better than stock markets in other places.

Here, no matter how big the company is, it will not worry about insufficient financing. The funds here are connected to the entire world of Liang Jian. As long as there are targets worth investing in, they will be sought after by funds here.

Due to the free inflow and outflow of funds, it is one of the favorite places for international capital, and is known as one of the world's three major financial capitals along with New York and New York.

Most of the companies listed here are from Dongda. After entering the mid-50s, billions of US dollars were raised here every year to develop various industries in Dongda, which greatly alleviated the problem of initial capital investment for Dongda companies.

It indirectly became a wing for Dongda's industrial takeoff. Of course, Dongda's listed companies also developed rapidly, and most of them became companies that grew tenfold or even twentyfold, bringing investors generous dividend returns and stock price increases.

The flexible agreement reached between Dongda and John Bull granted the Pearl of the Orient a special open port status, thus ensuring that funds from the world of Sword and Fairy could be cleverly integrated with Dongda through this port city. The first companies to develop were freight companies focusing on shipping.

Shipping giants including the Zhang family in mainland China and the Chen family in Southeast Asia, after completing their early primitive accumulation, turned their companies into independent listed companies by listing in Hong Kong, and continued to expand their fleets through stock market financing, thus almost monopolizing the Asia-Pacific shipping market and occupying most of the East-West trade shipping.

It can be said that during the development of Dongda University in the 50s, the Hong Kong securities market provided Dongda with the tens of billions of US dollars of financial support that it most needed.

It was the huge success of Hong Kong's financial development that gave rise to the idea of ​​establishing a second stock exchange within the University of Tokyo.

"Brother Ren, we have discussed a new plan to build a stock exchange within Dongda University. See if it is suitable." Staff Officer Ye found Ren Zhong with a simple plan for the construction of a new stock exchange.

Regarding this knowledge, Staff Officer Ye sought Ren Zhong's advice frequently during the development and standardization of the Hong Kong Stock Exchange, which enabled him to transform the Hong Kong Stock Exchange from a chaotic financial market dominated by speculation into a formal and orderly one of the largest financial markets in the world.

It laid a solid foundation for the development of Hong Kong after its early return, and made this Pearl of the Orient a true bridge for economic and trade exchanges between the East and the West, which was much more successful than it was at John Bull.

It can be said that its status is even more prominent than that of Hong Kong in the main world.

After all, in the world of Bright Sword, after a brief estrangement after the war, John Bull and Dongda quickly established a partnership through cooperation in agriculture, Rolls-Royce and other areas. Both sides have gained huge benefits from the cooperation. Now Airbus Aviation Group has become a popular company that European countries are scrambling to join.

In order to expand the European aviation market, Dongda Yandu Aviation Industry and Rolls-Royce, the two major shareholders of Airbus Group, are now negotiating on how to list Airbus Group to encourage European countries to join the world's top five aviation groups. However, the biggest controversy now is whether to list on the financial market in the Fog City or in the Hong Kong financial market.

After all, this is probably the largest financial financing activity in the world in the past decade, and it has a significant impact on the financial markets of both places.

It can even be said that it is a major weight in the competition between the Fog City and Hong Kong for financial status. Both sides are still coordinating on what the final outcome will be.

The development history of Hong Kong's financial market just illustrates the success of Ren Zhong's decision to define Hong Kong as an international free financial port against all odds.

Therefore, although Ren Zhong is apparently a leading figure in the science and technology community of the University of Tokyo, this does not obscure the fact that he also holds an equally high status in the financial community of the University of Tokyo.

Ren Zhong took over the plan from Staff Officer Ye and glanced through it for a while. Although the plan was simple, with only more than ten pages of introduction, most of the rules and ideas came from a replica of the Hong Kong Stock Exchange, except that the trading venue and funds were almost all from within the country.

The reason why I didn't say all of them is that in the rules of this stock exchange, only funds from Hong Kong investment funds are eligible to declare a certain amount of money each year to enter this exchange to open an account and buy and sell stocks according to the fixed exchange rate between the domestic currency and the US dollar. In addition, the securities users of this exchange are limited to domestic legal persons and adult users.

In terms of fund management, Ren Zhong introduced the Hong Kong Stock Exchange's custodian bank solution, as well as the securities dealer agency trading and on-site trading red vest seat system, which basically aligned with most of the rules of modern stock exchanges.

Unlike the Hong Kong Stock Exchange, the requirements for listed companies have been greatly lowered. For corporate revenue, the annual revenue must exceed 3000 million on average for three consecutive years, the profit must exceed 500 million, and the average annual growth must reach double digits. Relatively speaking, after a large number of high-quality domestic companies have been listed in Hong Kong, the remaining growth companies now have the opportunity to obtain funds through this new stock exchange.

In Ren Zhong's opinion, the current design is equivalent to the domestic Growth Enterprise Market, but there is no restriction that only high-tech enterprises can be listed.

In terms of delisting, several rigid delisting conditions have also been introduced:
Continuously low prices: If the closing price of a company’s stock is less than 30 yuan per day for 1 consecutive trading days, the exchange has the right to require the company to delist.

Continuous losses: If a company incurs audited cumulative losses for three consecutive financial years and the company's shareholders' equity is less than 50% of the company's initial listing, the exchange has the right to require the company to delist.

Failure to disclose financial reports on time: If a company fails to disclose financial reports within the prescribed time, the exchange has the right to suspend trading of the company's shares and require the company to make corrections within the prescribed period. If the company fails to make corrections within the prescribed period, the exchange has the right to require the company to delist.

Serious violations: If a company has committed serious violations, such as financial fraud, insider trading, etc., the exchange has the right to force the company to delist.

Insufficient Floating Shares: If the floating shares of a company’s stock are less than 24% of the total share capital for a period of 25 consecutive months, the exchange has the right to force the company to delist.

Through these mandatory rigid delisting conditions, companies with poor fundamentals, insider trading and financial fraud are directly dissuaded from delisting.

In this regard, the rules of the Dongda Stock Exchange are consistent with those of the mainland.

"I personally agree with opening another stock exchange in the mainland. With the current development and accumulation in the country, we already have a group of relatively wealthy classes and a group of private entrepreneurs. In terms of total volume, the amount of capital accumulated in society is already very large. Our previous informal financing and shareholding development model lacked a formal transaction monetization channel and was indeed a bit unsuitable for economic development under current conditions." Ren Zhong said to Staff Officer Ye after reading it.

In the past, when running a business, there were actually many ways of financing. The largest part of these was the issuance of various bonds. The infrastructure construction of Dongda University is inseparable from the shadow of bond issuance.

"However, in terms of the review of company listings, our system should be more stringent, and we should use a variety of means to confirm listing materials. In particular, for financial fraud, not only should there be lifelong accountability, but there should also be specific clauses to constrain and restrict the openness, fairness and impartiality of the review of listed companies. For domestic companies, we must verify through several official channels. In terms of local social insurance payment registration, tax conditions, and the calculation of actual corporate purchase, sales and inventory data, we must use a combination of social third-party audits and listing review spot checks to conduct comprehensive verification." Ren Zhong hates company fraud, so he made special emphasis on this aspect.

After all, interests move people's hearts, and no one can stop the change of people's hearts.

Only by plugging as many loopholes as possible in the system can we achieve orderly development in this matter.

There is no need to worry about some rotten fruits, as long as there is a way to identify them and discard them.

Ren Zhong's view on stock market fraud is zero tolerance and lifelong accountability. No matter whether it is a listed company or a third-party auditing agency, once fraud is discovered, they will be investigated immediately and the relevant responsible persons will be banned from the securities market for life. As for the company's major shareholders and legal persons, they will be treated the same. Not only will they be banned from the securities market for life, but they will also be included in the financial institution's list of dishonest persons, and will be completely banned from financial financing.

Ren Zhong felt that this matter might kill a group of entrepreneurial talents, but he would never sympathize with such unethical entrepreneurs, nor did he need to.

In the huge melting pot of the securities market, if the rules cannot punish those who commit fraud and speculation severely, then chaos in the financial market will emerge in an endless stream in the future. In this regard, Ren Zhong can learn a lot of lessons from the development history of the stock markets in many countries in the main world!

Those bloody lessons all show that driven by huge financial interests, human nature cannot stand the test at all, and only heavy blows can curb these chaos.

Of course, Staff Officer Ye attached great importance to Ren Zhong's opinion. While listening to Ren Zhong's opinion, he suggested that Ren Zhong provide some reference suggestions and opinions in this regard, and incorporate these contents directly into the draft of the future exchange.

This is no small matter. Everyone hopes to make the plan as perfect as possible before opening up this market.

In fact, although the development of the Hong Kong Stock Exchange has been relatively smooth so far, it has experienced many ups and downs in the past decade or so since it was taken over, and even major incidents such as the temporary closure of the entire market. Fraud and insider trading are not uncommon. Fortunately, the system was relatively complete from the beginning, and once discovered, it would strike hard to crack down on these unorthodox practices.

In addition, a large number of high-quality enterprises in Dongda are the mainstay of the Hong Kong Stock Exchange. Investors as a whole have obtained considerable returns by investing in the Hong Kong stock market. Therefore, in the development history of the Hong Kong Stock Exchange, it has maintained a high growth rate every year, attracting a large amount of funds from the world of Liangjian, and in disguised form entering into the industrial development and construction tide of Dongda.

The main purpose of the current stock exchange in Tokyo is to activate the domestic accumulated funds over the past decade. Although Tokyo’s domestic funds do not seem to be a big deal judging by per capita data, in terms of bank savings balances, Tokyo is already one of the top five financial powers in the world!

With a GDP of more than 5000 billion, savings have exceeded 3000 billion. Although it is not worth mentioning on a per capita basis, if you consider the total amount, it is already a total amount of funds of over billion US dollars.

There are already certain financial basic conditions for developing the domestic capital market. In addition, telephones are now becoming popular in cities. In cities at the prefecture level and above, the penetration rate of household telephone users exceeds 30%. In the absence of the Internet, the objective trading conditions for remote transactions relying on telephone orders are basically in place.

After Ren Zhong and Staff Officer Ye perfected the entire plan, the Magic City Exchange officially opened! (End of this chapter)