1988: Back to the human world for a few years

Chapter 643: Long and Short Explosion
Since the name contains the word "white stripe" and the time was in the early 1990s, it is naturally directly related to the famous triangular debt.

In fact, if you have read the previous content of this book carefully, you can easily see that the reason why Yang Mo was reused and then promoted rapidly like a rocket, and even had an extraordinary influence on the local administrative system and even on the administrative system with close industrial ties with him, is closely related to the triangular debt problem that swept the country, had a huge impact on future generations, and is even still existing.

(More than a thousand words deleted in the middle)

………………

Well, some things just need to be briefly explained.

Back to the topic…

What the hell is the so-called “black market for IOUs”?

Simply put, there are too many IOUs in various places, which has given rise to a very primitive and crude trading market, which is somewhat like a native securities trading market.

After all, an IOU is a written promise to pay unpaid bills, which is somewhat like a security. Therefore, it has a certain trading value and even speculation value. Some IOU holders are also eager to recover funds and stabilize cash flow by selling IOUs, which is quite similar to the commercial bills of later generations.

But what is really interesting about these indigenous stock exchanges is that their trading scope is often cross-regional.

For example, there was a large-scale black market for IOU transactions in Nanchang, Jiangxi Province. According to the recollections of relevant personnel who participated in the investigation of triangular debts, IOUs from almost all provinces in the country could be bought in Nanchang at that time. The varieties of IOUs in some provinces were so rich that they could even be subdivided into counties and districts by administrative regions, and into purchasing and catering consumption levels by type.

But this is not the point.

The key point is that since the market is filled with IOUs issued by companies from all over the country, they have a certain level of support and endorsement, and there is a certain possibility of redemption. Based on this, the IOU black market in various places has gradually formed a relatively systematic IOU trading system.

Since it has gradually become a system, the types of IOUs circulating on the black market are naturally quite complete...

........................

Time goes back to April 4, seven days before Wei Hongjun had a phone call with Yang Mo.

Jinling.

Somewhere in the city, in a place that looked like a farmer's market, hundreds of people in different clothes were walking around densely, gathered in felt tents, and whispered to each other about something unknown.

This is one of the main second-hand markets for white-slip transactions in East China. This kind of black market exists all over the country, and the one in Nanchang is just the largest.

The only difference from the past is that a few months ago, the brokers jumping around here were all crowding into the IOU area of ​​the resale administrative system, but recently, corporate IOUs in the East China region, especially in Jiangsu Province, have suddenly become popular.

"Boss Qin, let's make a fortune. Do you still accept IOUs from Jiangsu? I have a batch of IOUs from companies in Taizhou. Can you show them to me?"

After the broker in front came out of the felt tent with a happy face, a man in a leather jacket quickly went in.

The thin man in the felt tent looked at him with a smile, said nothing, and just stretched out his right hand.

Upon seeing this, the man in the jacket immediately opened his briefcase and handed over a stack of printed catalogs… Currently, a considerable number of IOUs have to wait until buyers are found before the bills are delivered. Therefore, unless the brokers buy those IOUs first, they will always only bring a list when negotiating business with their peers.

The thin man took the catalog and scanned the contents at a glance.

泰州第二农机厂，1984~1991应收货款421.3万元，分拆价格2角5分，打包价2角。

泰州兴隆器械厂（减速机），1988~1991应收账款247.6万元，分拆价格3角，打包价2角5分。

靖江丰顺水产养殖公司（蟹），1989~1991应收账款87万元，分拆价格1角五分，打包价1角2分；
泰兴佳佳兴五金厂，1986~1991应收货款42.9万元，分拆价格1角3分，打包价1角2分。

Xinghua No.5 Machinery Processing Plant...

After spending a minute going over the contents, the lean man sneered, "You're asking for a few cents at a time. Tang Xiaoliu, are you crazy about money?"

The jiao and fen here refer to the discount of the transaction price.

Two cents means the transaction is completed at 20% of the total amount of the IOU, and 1 cents and 2 cents means the transaction is completed at 12% of the total amount of the IOU.

Although this price is a relatively fair price for later generations, after all, when dealing with non-performing assets in later generations, they are generally resold at 20% off. Even for bank bad debts, it is rare to be less than 10% off.

But the problem is that it is the early 1990s, and your company is a local state-owned enterprise IOU with little bottom-line support. Let alone 20 cents, even 10 cents is too high.

In fact, as the problem of triangular debt management progresses slowly, in the secondary market, the transaction price of IOUs of medium and large state-owned enterprises at the municipal level is often around one dime, while the transaction price of IOUs of enterprises at the county level is good enough to be sold at around six cents to recover funds.

So according to the current market conditions, the price quoted by this man in the jacket named Tang Xiaoliu is indeed a bit high.

Unexpectedly, after hearing this, Tang Xiaoliu just laughed and said, "Boss Qin, don't be angry. I'm not quoting a random price."

"East China, which suffered a flood only last year, is different from other places. Isn't the country now vigorously carrying out post-disaster reconstruction?"

"I heard that post-disaster reconstruction is not as simple as just repairing roads and houses. It also requires industrial adjustment and support. We need to make great efforts to transform and upgrade the key enterprises in the disaster area so as to restore the economy of the disaster area as soon as possible."

"Hehe, Boss Qin is also a smart man. He naturally knows what the word [support] means."

"To be honest, if it weren't for the fact that these companies in Jiangsu have not been able to fully resume work for various reasons, and the national industrial adjustment and restructuring plan has not been finalized, the funds allocated in the early stage would not be enough for those companies to maintain the living expenses of their employees, so they would have to throw out some historical IOUs to recover funds... Otherwise, let alone 2 cents, even if it was 5 cents, you might not be able to buy it."

At this point, as if afraid that the skinny man in front of him would not believe him, Tang Xiaoliu leaned forward and lowered his voice: "Boss Qin, we are all acquaintances. I am not talking nonsense. Recently, some of the IOUs for key enterprises in East China in Nanchang and Shanghai have soared to 3 cents. It seems that it will soon exceed 4 cents... Many people have started to collect IOUs like crazy!"

The thin man naturally knew that the people Tang Xiaoliu was talking about were the powerful brokers from all over the country...or it would be more accurate to say private securities firms.

He smiled noncommittally and said, "East China is so big, the country may not be able to take care of it all at once. This kind of thing is hard to say... Tang Xiaoliu, you only say nice things, but as far as I know, there are also many people who have seized or locked up some companies' IOUs through various channels, just betting that those companies' IOUs cannot be cashed!"

Like all stock markets, if there are those who chase the rise, there must be those who sell at the fall. The area affected by the disaster in East China last year was too large. Given China's current financial situation, even if it wants to restore the economy and production in East China to the best of its ability, there are still areas where it cannot do so.

Having been in this circle for a few years, Tang Xiaoliu naturally knew this truth, and he grinned again: "So, that's why corporate IOUs in Jiangsu are so popular recently, right?"

"Jiangsu, especially the central and southern Jiangsu regions, are the main aid areas for Dezhou in Qilu. With nearly 10 billion yuan of aid from Dezhou as a guarantee, the recovery work in these areas, including Taizhou, is more guaranteed..."

"It is said that once the infrastructure in these areas recovers to a certain level, Dahua will intervene in the industrial recovery and adjustment work in parts of central and southern Jiangsu, and will even integrate the three trade routes of Central Asia, Northeast Asia, and Shandong-Shanghai... With such a good future outlook, the value of the IOUs of local backbone enterprises will naturally rise."

Corporate IOUs, especially those from medium and large local state-owned enterprises, are more than just accounts receivable; if the industry undergoes restructuring and reorganization, or if there is mixed-ownership reform, these IOUs can also be used as assets to convert into shares.

Of course, whether bad debts are recorded as non-performing assets or recorded as ordinary accounts receivable actually depends mainly on the company's own debt-resolving ability.

Unfortunately, Dahua Company is well-known. Although its overbearing style and the four-level value circulation system of city-county-township-village that it advocates are disliked by many people, it has an extraordinary ability to reallocate resources and resolve debts.

Therefore, as long as they can be included in the relevant industrial cooperation system by Dahua Company, although these companies' IOUs cannot be guaranteed to be 100% redeemed, it will not be difficult to redeem % to % through resource coordination and replacement.

Although it is impossible for Dahua Company to include all the backbone and potential enterprises in central and southern Jiangsu into its support system, now that its main focus areas have been identified, the possibility of successful debt repayment for enterprises in places such as Taizhou is always much higher than that in other regions, right?

Therefore, it is normal that the prices of IOUs from key and potential enterprises in these regions have been rising in the black market.

Seeing Tang Xiaoliu's confident look, the thin man's eyes flashed with a strange color, and then he laughed: "Since the prices of corporate IOUs in central and southern Jiangsu are rising in the black markets everywhere, I can't break the rules... The quick hand wins the slow hand, let's get the real evidence of these IOUs first, otherwise, both of us will get nothing."

These words clearly told Tang Xiaoliu that he accepted the offer.

Hearing this, Tang Xiaoliu was immediately overjoyed: "Okay, Boss Qin is really straightforward. I'll trouble you to prepare the contract today. After signing, I will take the train to Taizhou in the evening and hand over all the IOUs and actual documents... It will take at most five days. Wait for my good news!"

........................

At this time, in a building not far from the IOU black market, a group of people were busy.

A young man wearing a navy blue suit and gold-rimmed glasses walked into the hall and clapped his hands: "Everyone, put down what you are doing for now!"

"According to Assistant An's instructions, the situation has changed and we need to enter the closing phase ahead of time."

"so……"

The young man looked around at everyone expressionlessly and said, "Everyone here, if you know how to write a contract, go find the finance department later."

"Anyone who doesn't know how to open a contract is not allowed to stay in the company office these days!"

"Whether you go home to sleep or go out to maintain customer relations, it's all up to you, but there is only one rule... For the next week, you are not allowed to show up at the company and disturb other people's work!"

As soon as these words came out, some people started to whisper. The young man ignored them and said to himself: "Attention, those who stay, from now on, we only have one week to operate, and I only have one request... All the company's money and goods are all in!"

"Assistant An said that the company can keep 20% of the profits... So, if you want to get rich, you should use all your tricks!"

The whole hall was suddenly plunged into a frenzy of excitement. Everyone knew very well what a 20% profit would mean if they sold the bills in their hands.

But it is obvious that although a 20% profit is enough to make ordinary staff crazy, some people are very dissatisfied with the new manager who has just taken office for less than four months.

At that moment, a middle-aged man walked up to the young man and lowered his voice: "Manager Zhao, all in? The IOU market is unpredictable, what if you lose?"

The young man pushed his glasses modestly and said, "Lose? With me personally checking, there's no way you can lose!"

The middle-aged man sneered: "It's easy to say. I know that Manager Zhao is a top student who studied abroad, and I also know that you have been engaged in futures trading in Hong Kong before, but... Hong Kong is Hong Kong, and the inland is the inland. What works in Hong Kong may not work in the inland."

The young man stared at him for a moment, then suddenly smiled and put his arm around the middle-aged man's shoulders, then walked towards the manager's office: "It seems that Director Feng has no confidence in me!"

"What if I tell you that the trend has already taken shape and I plan to personally take over and use the assets that user A has placed in the company as a deposit for user B to play the next game?"

"The company gets commissions from the business, and they have to pay us a handling fee for every step they take... Haha, as long as the assets keep flowing, it can snowball, and there are so many branch cash flows to supplement and cover it up, do you think we will lose?"

"Besides, this is Assistant An's instruction, which is directly related to the success or failure of President Wei's plan... If you think it's unreasonable, why not report it to Assistant An or President Wei?"

Hearing the names of Wei Hongjun and An Sze, the middle-aged man shuddered, but smiled awkwardly: "But there is no need to hire so many people, right? The company has other businesses. If we recruit all the people, what will happen to the rest?"

The young man looked at him with a smile and said, "There is no other way. The domestic conditions are not met. Not to mention the Internet, even communication is not convenient. So we must take advantage of the strength of numbers;"

"Besides, how can we entrust bulk orders if we don't have enough people?"

“How to disperse addresses without batch delegation?”

“How can we ensure that we can build momentum and get the snowball rolling in the shortest possible time without dispersing the addresses?”

Seeing the middle-aged man speechless, the young man patted him on the shoulder and said, "During tomorrow's trading peak, I will have my subordinates short at K467, ​​and then go straight to 630. I will have everyone place an order at 568, opening 1.75 times, and then entrust 591 flat... As for the specific operation plan, Director Feng will have to work overtime tonight."

Hearing the young man number the IOUs based on his work habits in Hong Kong, the middle-aged man felt a toothache and asked anxiously, "568? Isn't it too high? The increase is so sharp, I'm afraid others won't follow!"

After saying that, he looked at the young man with some doubts: "More importantly, 591 is not the highest investment... What about the other 9 points?"

The young man smiled strangely: "If you want to set up a game, you can't take all the benefits. If you don't leave 9 points of space, how can you let others enter?"

"As for whether the increase is too drastic and will scare off other people... Hehe, Director Feng, it seems that you are still a little too naive about human nature!"

The middle-aged man's eyes twitched, but he snorted coldly: "Why leave space for others to enter? With President Wei here, do we need to give face to others?"

The young man looked at the middle-aged man in front of him with some pity and shook his head slightly: "Of course we don't need to give face to others, but the problem is that what Mr. Wei values ​​is not such a small price difference, but the IOUs themselves;"

“So, if we don’t allow other people to enter the market, how can we play the long and short double explosion, and how can we maximize the real profit!?”

Long and short positions exploded!!!

The middle-aged man's face suddenly changed when he heard this...

4 month 9 day.

In the black market for IOUs in various places, the prices of IOUs from 17 key enterprises mainly engaged in machinery manufacturing and light textile industries in Zhenjiang area in southern Jiangsu Province suddenly began to fluctuate wildly.

早上9点15分的白条行情从已经非常夸张的4角2分2厘开始异动，14点25分拉盘结束后，报价来到了4角7分5厘的高点，仅仅只是一天时间，这17家骨干企业的白条报价就被爆拉超过了12%。

………………

4 month 10 day.

Affected by yesterday's crazy market surge and some seemingly plausible internal rumors, the prices of IOUs of more than 374 medium and large enterprises in central and southern Jiangsu also soared. Although the increase was as sharp as that of the 17 companies yesterday, the short-term peak was once pulled up to more than 10%.

What’s interesting is that more than 374% of the IOUs that were pulled were from companies in the textile and machinery manufacturing sectors. This seemed to confirm the truth of the rumors, and immediately made many private securities firms that had been waiting to see what was going on start to stir up trouble.

………………

4 month 11 day.

As a large number of buyers entered the market, the package purchase price of the IOUs from these 347 companies on the black market soared to a high of 5 cents.

Although this quotation is exaggerated, if these enterprises are really included in the key support list, then they have sufficient debt repayment capacity to guarantee it. As long as it does not exceed the psychological red line of 7 cents, it is worth it no matter how high the quotation is.

………………

4 month 12 day.

Seeing that the prices of these companies' IOUs on the black market were rising all the way, even approaching the level of 6 cents, a large number of private securities firms could no longer sit still.

They had no idea where the big dealers in the market came from, who could push up the prices of these IOUs to nearly three times their original prices in just a few days.

You have to know that based on the current quotations, the price of IOUs from these hundreds of companies has exceeded 20 billion!
Which madman is buying things at such a high cost?
But as the news spread through some unofficial channels, everyone suddenly realized... People are scanning IOUs at such a high cost in order to prepare for the next step of mixed-ownership reform of shares. With the policy's debt-paying bottom-line guarantee, as long as it is not too exaggerated, people don't care at all how much discount they get those IOUs that can be converted into equity assets, they will scan as many as they can!

This rumor was very convincing. After the Southern Tour speech, the wind direction suddenly changed, and some people began to become active.

They don’t know what these high-ranking guys are thinking, but they know that what they really care about is never the little money in their pockets.

Therefore, the private securities dealers, who would face the prospect of exceeding their capital limit if they continued to follow up, gritted their teeth and simply used all their magical powers to find those companies overnight and directly bought the IOUs at a price of 5 to 5 cents... Due to the lag in information and the unspoken rules in the black market, those companies did not know that the package price of their IOUs had soared to more than 5 cents today. Faced with the 6 cents offer that far exceeded their psychological expectations, most of the companies delivered the IOUs on the spot without hesitation.

Although this operation almost exhausted the funds of those private securities firms, and even required them to borrow a lot of money from other institutions, turning them directly from intermediaries into sellers of goods, everyone believed that it was still worth it.

Now that the IOU is in his hands, he has the final say on the price. I believe that as long as it does not exceed the psychological high voltage line of 7 cents, the big dealer who appeared out of nowhere will definitely accept it.

The price difference was nearly 2 cents. Even if they had to pay a large amount of interest and handling fees, they would definitely make a fortune from this super large order with a total value of billions.

Besides, there are not only bullish players, there are also bearish players!
In the black market where the system and gameplay are actually quite sound, many people can still make a profit even if the price drops slightly.

Although the concept of hedging has not yet entered China, Chinese people have always liked to prepare for both situations. There are quite a number of private securities firms that go long on one side and short on the other.

........................

4 month 9 day.

In the black market for IOUs in various places, the prices of IOUs from 17 key enterprises mainly engaged in machinery manufacturing and light textile industries in Zhenjiang area in southern Jiangsu Province suddenly began to fluctuate wildly.

早上9点15分的白条行情从已经非常夸张的4角2分2厘开始异动，14点25分拉盘结束后，报价来到了4角7分5厘的高点，仅仅只是一天时间，这17家骨干企业的白条报价就被爆拉超过了12%。

………………

4 month 10 day.

Affected by yesterday's crazy market surge and some seemingly plausible internal rumors, the prices of IOUs of more than 374 medium and large enterprises in central and southern Jiangsu also soared. Although the increase was as sharp as that of the 17 companies yesterday, the short-term peak was once pulled up to more than 10%.

What’s interesting is that more than 374% of the IOUs that were pulled were from companies in the textile and machinery manufacturing sectors. This seemed to confirm the truth of the rumors, and immediately made many private securities firms that had been waiting to see what was going on start to stir up trouble.

………………

4 month 11 day.

As a large number of buyers entered the market, the package purchase price of the IOUs from these 347 companies on the black market soared to a high of 5 cents.

Although this quotation is exaggerated, if these enterprises are really included in the key support list, then they have sufficient debt repayment capacity to guarantee it. As long as it does not exceed the psychological red line of 7 cents, it is worth it no matter how high the quotation is.

(End of this chapter)