Spring Breeze Twenty Years

Chapter 592 Stocks

Xiao Liu said, "If you're making money, why don't you send some home? Your parents are working so hard they're barely surviving. If you weren't making money, I could understand, but if you really are, aren't you just like an animal? No letters, no money, no parents—how can you survive? How did you grow up like this? Do you even have the money to go abroad?"

Xiao Wei said, "Didn't you guys chip in some money for your classmates' families?"

Xiao Liu said, "We've managed to get by, but how much power do we really have? We can only manage for a short time, not forever."

Xiao Hong said, "Oh, let's not talk about other people's business. What does it have to do with us? Are we leaving tomorrow or not?"

Xiao Wei glanced at Xiao Hong, thought for a moment, and said, "Let's go, I'll go get someone to buy the tickets." He walked to the bedside, picked up the phone, and called the front desk to ask them to buy four plane tickets to Guangzhou.

A few minutes later, the waiter knocked on the door and came in to collect Xiao Wei's letter of introduction and work ID. Before 1993, you had to have these to buy a plane ticket. However, unlike in the 1970s and 80s, there was no longer a requirement that you had to be a cadre at the county or regimental level or above. All restrictions were lifted after 1993.

Back then, airline tickets were all handwritten. The ticket itself was a thin printed cardboard cover with a red, illuminated Tiananmen Square on the front, featuring an airplane trailing a white line. Below were the words "Civil Aviation Administration of China" and the ticket number. Inside the cover, flight information was filled in by hand. Accompanying the ticket were a three-part handwritten receipt and a baggage tag, used for reimbursement.

By the late 1980s, the rank of the person taking a flight was no longer mandatory, but a stamp from a unit at the county or regimental level or above was still required. Airfares at this time were much more expensive than in the early to mid-1980s, rising from tens of yuan to hundreds of yuan, averaging around seven or eight hundred yuan. By 1992, there were no tickets priced below one thousand yuan.

Before the 1970s and 80s, airplanes were similar to trains, with tables between seats and seven or eight kinds of drinks, including Moutai and beer, and customers could order food. In the late 1980s and early 1990s, the tables were removed, and the seats disappeared. The planes became increasingly crowded, alcoholic beverages were no longer available, the variety of drinks decreased, and the food became unpalatable fast food.

These days, you get free gifts when you fly, like steel spoons, metal airplane models, or other souvenirs.

The waiter left, and Xiaohong asked, "Didn't you say you were going to Chongqing?"

Xiao Wei said, "I just remembered, we still need to buy a car, right? If I don't buy one, Chen Hui will strangle me! Oh well, it's rare for them to like something, let's go buy the car first. Old Xia didn't get anything from start to finish, he just got a Xiali and gave it back to Xie Xiaolong."

Xiao Liu said, "How about we go to Hainan? I have a classmate there."

Xiao Wei asked, "You took a private car? How are you getting it back?"

Xiao Liu said, "Now there are foreign cars everywhere in the country. People with a little money try every means to get one as a status symbol. How do they get them? Whether they're smuggled or not is just a matter of official pronouncements, so what's there to worry about? However, I can't guarantee that they can actually get one. Nowadays, most smuggled cars are Japanese, because they sell well."

Xiao Wei shook his head and said, "Forget it, seven hundred thousand isn't too expensive, and it's more reassuring to buy from legitimate channels."

Xiao Liu said, "I heard from my classmate that land speculation in Hainan is incredibly profitable right now, and lots of people have made a fortune. Don't you want to give it a try?"

Xiao Wei paused for a moment, then asked, "What is land speculation?"

Xiao Liu said, "It's about buying land, buying it from the government, and then reselling it a few days later."

Xiao Wei said, "You think you can make money like this? Whoever took it on must be an idiot. Why didn't they just go to the government themselves?"

Xiao Liu said, "Do you think just anyone can find the government? Besides, good locations are limited. You can't just buy them whenever you want, can you? I heard that land over there appreciates really fast. The price changes every day. What you buy for 100,000 today might be worth 500,000 in 30 to 50 days."

Xiao Wei asked, "So how much did your classmate earn? Did he make any money?"

Xiao Liu said, "He's just like me, a low-level clerk. He doesn't even have any capital, so how can he earn money?"

Xiao Wei shook his head: "That's unreliable. If land prices really rise like you say, won't they skyrocket in a few years? What use will that land be then? Will anyone be able to afford the houses built on it? You're not as reliable as buying stocks."

The Shanghai Stock Exchange has been established for over half a year now, right when the old eight stocks are at their peak, and shares are extremely hard to come by. For ordinary people in inland areas, they have no idea what stocks are, but ordinary people in Beijing, Shanghai, and Guangzhou are already all involved in stock trading. These past few days, a few of us have been wandering around and have heard a lot of people discussing stocks.

Xiao Liu: "I'm telling the truth. So many people have made a fortune in Hainan, how could this be faked? Besides, even if you can make money from stocks, can you even buy them?"

The old eight stocks were truly in high demand and short supply at that time; there was no market for them, and no one was willing to sell. It wasn't until the following year, 92, when the Shanghai Stock Exchange listed another fifty stocks, that this situation was alleviated. This is the world-famous subscription warrant incident.

Back then, there weren't any securities regulatory commissions or banking regulatory commissions; the stock exchange was managed by the People's Bank of China. Because there were too many stock speculators and several major incidents occurred, the People's Bank of China finally decided to issue subscription certificates. Anyone wanting to buy stocks had to first buy a subscription certificate, then participate in a lottery; only those who won could buy the stocks. This deterred a large portion of stock speculators.

Unexpectedly, because there were so many listed stocks, the subscription certificates became guaranteed to be issued, causing a surge in their popularity and making a fortune for many people. Back in 1992, a subscription certificate that cost 30 yuan was being traded for over 10,000 yuan. A hundred consecutive certificates ultimately yielded a profit of over 500,000 yuan. By the time subscription certificates were issued again in Shenzhen, Zhenjiang, and Xiamen, they were extremely difficult to obtain, and the profits had significantly decreased.

Xiao Wei chuckled a few times, looked at Xiao Liu and said, "That thing is like buying lottery tickets and waiting to win. You have to stay here every day. I could do something else with that time." Xiao Liu rolled his eyes. You're so great if you can make money.

Xiao Hong said, "Why don't I hear anyone talking about stocks in Fengtian? What exactly are stocks?"

Xiao Liu said, "You really haven't heard of it?"

Xiao Wei said, "I've never heard of it either. I hadn't heard of it before coming to Shanghai."

Xiao Liu said with a look of disdain, "You guys are really something. Let me teach you something. China's first securities exchange was established in Fengtian. Got it? It was established in 85, and it's been more than five years now. The establishment of the Shanghai Stock Exchange was initiated by our Fengtian Exchange Market. Its predecessor was the Jing'an Securities Trading Department, which was hosted by our Fengtian Exchange Market."

Xiao Wei and Xiao Hong stared at Xiao Liu in disbelief. Xiao Liu, feeling smug, started to gloat. He took out a cigarette, put it in his mouth, and said to Xiao Wei, "Here, light one for me, I'll explain it to you properly."

(End of this chapter)