My Realistic Simulation Game

Chapter 104 A Proclamation Against the Plains, A Deceptive Empire (Bonus Chapter for "Consuming Knowledge")
Qin Yuan ignored Fang Minghai's expression.

Instead, he took a piece of paper and began to write a report in his mind, combining the article from his previous life with all the information he had found.

A report that shocked Shenzhen, Hong Kong, and the entire Chinese financial community.

Qin Yuan sat down at the table and began to write.

He then wrote a title and a subtitle.

Just as I put pen to paper, a gasp rang out.

"Eight...eight pieces of irrefutable evidence?!"

Standing to the side, Lin Shishan was looking at what Qin Yuan had written, her eyes filled with astonishment.

Fang Minghai was looking at the documents when he heard the commotion. He immediately turned his head to look over, and what he saw made him gasp and his eyelids twitch wildly!

[Main Title: Deep Wilderness: A Fraudulent Empire Beneath a Glamorous Mask – A Warning to All Investors]

[Subtitle: Dissecting the Eight Ironclad Evidences of Fraud by Shenzhen Yuanye (000005), the "King of Shenzhen Stocks," and Debunking the Bubble of Capital Myths]

Just those two lines of text were enough to make Fang Minghai's eyelids twitch.

As a Hong Kong businessman, he knew all too well what this meant!

In mature capital markets, if a listed company is found guilty of even one or two serious frauds, it can be enough to bring about its downfall!

Eight irrefutable pieces of evidence? This is an accusation of nuclear bomb level!
"Brother Qin, what's going on?" Fang Minghai asked in a low voice.

As Qin Yuan wrote, he said, "It's nothing, just writing a proclamation against Yuan Ye!"

"A proclamation demanding the surrender of the wilderness?"

Fang Minghai was startled. He forgot about the pleasantries, moved closer to the table, and eagerly looked at what Qin Yuan was writing.

However, he found that his reading speed couldn't keep up with Qin Yuan's writing speed!
Qin Yuan seemed to have a plan in mind all along, and his pen flew across the paper without pausing at all!

The handwriting is strong and powerful, and the structure is extremely clear:
Shenzhen's stock market is experiencing a surge of activity.

The new darling "Jianlibao" is about to emerge, and everyone is eagerly anticipating its arrival.

However, in this land where hustle and bustle intertwines with dreams of wealth, a star once crowned with the title of "King of Stocks" and adorned with the halo of one of the "Old Five Stocks"—

—The capital empire that Shenzhen Yuanye Industrial Co., Ltd. (Shenzhen Yuanye, 000005) has been meticulously constructed, but is outwardly glamorous yet inwardly rotten. It is time for its true colors to be completely exposed!
We are not making baseless accusations or spreading alarmist rumors.

After in-depth investigation and evidence collection, it was found that Shenyuanye and its actual controller, Peng Jiandong (also known as JAMES DONG PENG), had woven a systematic network of fraud since the company's inception. The audacity of their methods and the severity of their actions can be regarded as a "textbook" of early fraud in China's capital market.

But the so-called "myth" of its stock price is nothing more than a mirage built on quicksand.

We hereby expose their main fraudulent practices to the world, hoping that investors will be vigilant:
Ironclad Evidence 1: Fake Foreign Investment, Real Control – Runtuo Company's "Painted Skin"

Shenzhen Yuanye claims to be "the first listed Sino-foreign joint venture/wholly foreign-owned enterprise," but its core foreign shareholder, "Hong Kong Runtao Industrial Co., Ltd.", is actually a shell company registered in Hong Kong by Peng Jiandong using other people's names.

This was Peng's scheme of "borrowing the tiger's power," using the Hong Kong capital of Guanghuanxing to manipulate the company, and concealing the flow of funds and the transfer of benefits outside of supervision, laying the groundwork for his subsequent embezzlement.

The so-called "foreign capital" is actually a puppet show directed and performed by Peng himself!
Ironclad Evidence Two: Fake Capital Injection, Spinning Off Money Without Investment
Shenyuanye's repeated "capital increases and share expansions," especially the one in May 1988 when Runtao increased its capital to 3 million (accounting for 71.43% of the shares), was a complete scam!

The funds were deposited into Yuanye's account by a third party entrusted by Runtao, and then immediately transferred back via the same route.

Such "account transfer games" blatantly trample on the bottom line of the Company Law regarding shareholder contributions, and the authenticity of their registered capital is completely lost!
Peng Jiandong seized absolute control of the company out of thin air by creating something out of nothing.

Third irrefutable evidence: Adjusting accounts to increase value, creating a false sense of prosperity.

The "expansion" of Shenyuanye's net assets did not stem from its operations, but rather from two absurd "accounting adjustments for appreciation":
September 1988: A single resolution by the board of directors resulted in an increase in value of 2754 million yuan for 12 properties out of thin air!

Three of the projects are still under construction, and for the other three, only deposits have been paid but no property rights have been obtained! Is this magic? Is it fraud?
1989: Using the same trick again, the value of 14 "real estate" properties was increased by more than 4500 million!

Even more astonishing is that five of these items were completely missing from the books! Such "financial tricks" of "creating something out of nothing" completely shatter accounting principles and business ethics!

Fourth piece of irrefutable evidence: State-owned preferred shares become "victims" of usurpation.

The huge "assets" that were adjusted and appreciated twice totaled more than 7250 million yuan, most of which were forcibly transferred to Runtuo Company as additional capital!
The original state-owned shareholder, Xinye Garment, was induced to switch to "non-participating preferred shares" and only received symbolic compensation (40 yuan).

This is a blatant case of "cuckoo taking over the nest," a systematic plunder of state-owned assets and the rights and interests of minority shareholders by exploiting loopholes in the system and regulatory gaps!
Fifth irrefutable evidence: Using external forces to undermine reforms and engage in illicit activities while maintaining the company's "shell company".

When Xinye Garment wanted to withdraw, relevant departments, in order to save face for the shareholding "pilot" program, coordinated its conversion into preferred shares, with the intention of preserving the reform achievements.

Peng Jiandong, however, saw this as a golden opportunity and used the retained "shell company" resources to facilitate his subsequent equity transfers and financial fraud.

This tactic of "using someone else's strength against them" is a desecration and exploitation of the original intention of reform!
Sixth piece of irrefutable evidence: A clever escape, foreign nationality serves as a "firewall."

Peng Jiandong was well aware of the principle of "a cunning rabbit has three burrows":
In May 1989, during a critical period of preparations for the company's IPO, Peng quietly moved to Australia.

This clandestine act is nothing more than building a legal firewall in advance to seek protection for his possible crimes!
Why would a controlling shareholder who cares deeply about the company's development choose to retire and change nationality when the company is at its peak?
Ironclad Evidence Seven: Cashing out at high prices and frantically seizing the people's wealth.

Between June and September 1990, as Shenzhen Yuanye's stock price soared amid fervor and skepticism, Peng Jiandong, through channels such as Runtao which he controlled, frantically resold 1843 million legal person shares to the public!

After obtaining a huge amount of cash, he immediately purchased a US$560 million waterfront mansion and a HK$4400 million Japanese-style garden villa (adjacent to Li Ka Shing) on ​​Hong Kong Island.

This is not about sharing the benefits of development, but rather a blatant act of draining resources and fleeing!

If one truly has confidence in the company's future, why would they be in such a hurry to cash out and leave on such a large scale?

Eighth piece of irrefutable evidence: Regulatory warnings indicate that this situation didn't arise overnight.

The market is not oblivious:

In October 1990, Shenzhen issued a decree prohibiting civil servants from speculating in stocks and repeatedly adjusted the rules on daily price limits.

In November 1990, the housing and construction unit conducted a systematic investigation of the properties in the field and found some clues.

These routine measures are clear evidence that regulatory authorities had anticipated the risks.

Qin Yuan's pen moved swiftly and skillfully, perfectly weaving the evidence provided by Yangcheng Dachao and the information he possessed into these eight pieces of irrefutable proof!

The logic is rigorous, the chain of evidence is clear, and every word is sharp and incisive, hitting the core issue!
No regulation?

Qin Yuanbian is fabricating regulations to deter the market and also to give face to the regulatory authorities.

Fang Minghai, standing to the side, was terrified, cold sweat pouring down his forehead!

In his mind, this was by no means a proclamation against the wilderness.

This is clearly a death sentence for Fukahara!

A bombshell that could detonate in the entire Shenzhen capital market and even the national capital market!

Looking at Qin Yuan's focused and aloof profile, only one thought remained in his mind:
A storm is coming!

However, at this moment, Qin Yuan's gaze also turned to him.

"Mr. Fang, could you please do me another favor?"

Fang Minghai had no idea what Qin Yuan was thinking, but upon hearing this, he immediately said, "Brother Qin, whatever you need help with, as long as it's within my capabilities, I'll definitely help."

Qin Yuandao said, "Send this article to Hong Kong Island and let the media there report on it extensively."

This is the first punch in a combo!
(Second bonus chapter, please vote with monthly tickets)

(End of this chapter)