Chapter 25 Tang Wanxin and his affairs

Tang Wanxin was once a well-known name in the capital market, but how many people still remember it today? He started from scratch, from a photo shop owner to a powerful capital crocodile, from a good name in a good village to being imprisoned and sick.After the momentary scenery, after that is eternal loneliness. Yes, "Dancing pavilions and singing platforms, the wind is always blown away by the rain." Tang Wanxin is just a small past in the sea of ​​history. For him, the true meaning of life with ups and downs can only be understood by himself; As far as the world is concerned, in the end it is the king or the Kou, and they have to let others judge.But no matter whether it is good or bad, life can be so magnificent, enough!

Although he is no longer in the "jianghu" now, at least we can still tell a "legend" about him in the "jianghu". Tang Wanxin, born in 1964 in a branch cadre family in Urumqi, Xinjiang, is the youngest of five siblings. In the spring of 1986, Tang Wanxin, who had not graduated from university, stood at the starting point of his ambitious career.I started many small businesses, but most of these entrepreneurial explorations ended in failure. In 1995, Tang Wanxin established Xinjiang Delong International Industrial Corporation. In 1997, Delong successively controlled three listed companies including Alloy Investment, Xiang Torch, and Xinjiang Tunhe.Later, on this basis, it controlled more enterprises covering tomato paste, cement, auto parts, flax, potassium salt, tourism, beverage, entertainment, seed industry, agricultural materials supermarket, etc., becoming the largest private industrial group.

Delong under his leadership developed from a small company located in the northwest border to a financial and industrial empire that once controlled assets of more than 120 billion.Forbes ranked 27th among the top 100 richest people in Mainland China in 2002. On December 17, 2004, Tang Wanxin, a core figure who has been in the business world in recent years, was formally arrested for publicizing the crimes of absorbing public deposits in a disguised form and manipulating securities trading prices for illegal profits. He was immediately escorted by train from Beijing to Wuhan.According to the data released by the relevant departments of the State Council, the total debt of the Delong family is as high as 57 billion yuan, including 4 billion yuan in the financial sector and 23 billion yuan in industrial debt.There are about 200 Delong holding and shareholding companies, including 5 listed companies; Delong controlling and related financial institutions include 7 securities companies, 3 trust investment companies, 2 leasing companies, 4 city commercial banks, and 2 insurance companies company.

Even though the ending is like this, people who are familiar with Tang Wanxin have given positive comments on his personal character: success in life, failure in business.According to informed sources, during the 18 years of Delong's development, Tang Wanxin did not seek profit for himself. "He wanted to do something. If he wanted to make money, he would have split the money and left as early as 2000." It is for this reason that his brother still needs to raise the legal fees for defending Tang Wanxin. Vigorous grassroots family history: "I just want to be a national hero!"

At the age of 17, Tang Wanxin was admitted to the Department of Industrial Economics of East China Petroleum Institute, but dropped out after one and a half years and returned to Urumqi to repeat his studies. In 1983, Tang Wanxin was admitted to Xinjiang Petroleum Institute.At that time, there was a business boom in colleges and universities, and the Institute of Petroleum opened a farm in Jimsar County, but suffered serious losses.Allegedly, as a student, Tang Wanxin recommended himself to the school and was allowed to take charge of "managing" the farm—this kind of thing could only happen in that particular era.This is Tang Wanxin's first time in business. The 20-year-old Tang Wanxin did not create a miracle, and the farm soon suffered a crushing defeat. At the end of February 1985, Tang dropped out of school for the second time and officially entered the business path.

Although Tang Wanxin's family history is said to be "what to do to make money", according to Delong's people, Tang Wanxin's "first pot of gold" came from his "friend" Caikuoshe 20 years ago.His way of making money seems very simple, but there is a small store in Urumqi, which collects the received lottery papers and consigns them to Guangzhou. After getting them, they print them and send them back to Urumqi.Tang Wanxin soon earned 600,000 yuan. From then until 1992, Tang Wanxin was generally a self-employed individual with repeated setbacks and setbacks.Tang Wanxin once said that during this period, he successively affiliated with the Urumqi City Association for Science and Technology to operate computers and feed additives, and affiliated with Tianshan Company, a subsidiary of the Tuanjie Road Sub-district Office in Urumqi, to operate a konjac noodle factory, etc.

And its actual scope is wider, including color expansion, trade, clothing, bicycle locks, satellite receivers, artificial fur, hotel management, aviation clubs, feed additives, computer typing business card making and copying, extracurricular tutoring materials for college and middle school students, jade cloud Processing, chemical industry, software development, overseas consulting, computer sales, etc.; during the period, success or failure fluctuated. There were happy moments when I got "the first million in my life", and there were life-and-death moments when the bank owed 1.8 million yuan and was sued to the court. .

Apparently, Tang chased every opportunity he saw, and what he gained was experience, not actual wealth.Until May 1992, when Tang went to Xi'an to look for business opportunities, what he brought with him was still 50,000 yuan in borrowed funds. Delong's dream of imperial industrial integration: "In another 3 to 5 years, Delong will enter the world's top 500." It was the legal person stock trading market in Xi'an that brought Tang Wanxin "tens of millions of fortunes".He bought the legal person shares of more than ten companies including Precision Alloy, Shaanxi Wumian, Xi'an Jinhua, Xi'an Minsheng, and Shaanxi Jiefang at low prices in Xi'an, and resold them to Xinjiang and Shenzhen, making a profit of "50 million to 70 million" in less than a year. Yuan".Later, Tang moved to the "primary and a half markets" (issued and unlisted stocks) in Xi'an, Shenzhen, Qingdao, Beijing, Shanghai and other places.

Relying on the huge profits of the "primary and a half market" of stocks, Tang Wanxin started again on the new platform. In 1992, Xinjiang Delong International Industrial Corporation and Urumqi Delong Real Estate Company were successively established.This was the starting point of Tang's career, which was later called "Delong Line". In the spring of 1997, Delong held a famous "Dayuan Conference" in Beijing.The meeting determined that Delong's next strategy will shift from "project investment" to "industry investment" and "create new value in traditional industries" through industrial mergers and acquisitions.And around this time, Delong acquired the listed company Xinjiang Tunhe, and at the same time indirectly controlled Tianshan Cement.On the one hand, through Tianshan Cement’s acquisition of cement assets in Tunhe, Xinjiang, and intensive related operations, Xinjiang’s cement industry has been integrated; industry".

At the same time, Delong Holding Alloy Investment, a listed company in Shenyang, has become China's largest manufacturer and exporter of electric tools through a series of integrations; holding Hunan Torch, a listed company in Hunan, injected it with the "big auto parts" strategy, Promoting its growth from a single-species production of "spark plugs" to one of the largest exporters of auto parts in China; at the same time, upward integration and a heavy blow in the heavy-duty truck industry, making Xianghuoju the largest heavy-duty truck manufacturer in China in one fell swoop .

With the rapid expansion of a series of industrial fields, the total assets controlled by Delong soon exceeded 20 billion yuan.In just a few years, it broke into the public eye at an incomprehensible speed and unimaginable scale. While Delong is expanding in the industrial field, its eyes have never left the financial field: because every time it enters an industry or enterprise through acquisition and integration, it is inseparable from Delong's own "superior financial skills", and banking, securities, etc. , trust companies, leasing companies and other financial platforms. Therefore, for many years, Delong has been trying to legally bring different financial institutions under its command: Jinxin Trust, Xinjiang Financial Leasing, Shanghai New Century Leasing, Islamic Trust, Deheng Securities, Hengxin Securities, etc.; in June 2002, Delong Long began to participate in some city commercial banks.In addition to low-key financial intermediation for "industrial merger integration", another purpose of this move is to try financial mixed operation under the conditions of the Chinese market. The collapse of the troika in the stock market: "Deron ignored the rationality of the process in the process of pursuing benefits." Tang Wanxin's life image is unkempt. He doesn't like to wear a suit or tie, and he doesn't even accept interviews, participate in public events, or take pictures at will.This "something" principle added a bit of mystery to Tang Wanxin.Under the framework of the huge Delong Empire, most of the capital operations behind it are unknown, but what has been standing in the eyes of everyone is undoubtedly the "Troika of the stock market" that has created the Delong brand-alloy Investment, Hunan Torch and Xinjiang Tunhe, they can survive the big bear market for three years, and they are called the "myth" of the stock market.It is understood that in 1998, a well-known trader "Hua Rong" in the industry held a "trader" training class that specifically talked about Delong's mode of being a dealer - the baton.At that time, the institutional households and large households sitting in the audience were also blushing.At that time, it was the initial period when Delong took over Tunhe in Xinjiang. Almost everyone in the rivers and lakes had a source of information, but few people could keep up with the sky from the bottom.To put it bluntly, no one can bear the Delong-style crash-style "washing", and few people can be more than 30% quilt, and still have the confidence to persist until the stock price doubles. It is this kind of difficulty with the village and the money-making effect of Changzhuang that make the Delong brand stronger.Many people handed over funds to Delong willingly. In the era when entrusted financial management business was prevalent, Delong's reputation sounded more reputable than many institutions.It is precisely because of this that the entrusted funds received by Delong have also expanded rapidly. Many large institutional funds are frequent customers of Delong. During the heyday, the return rate of funds was as high as 97%. Everyone knows that Delong is controlling the market, but few people know that Delong has prepared 24,705 shareholder accounts for the three "signature stocks", and Delong controls more than 40,000 shareholder accounts.This is also a small point that makes traders "look up" to Deron.Some brokerages have 2,000 or 3,000 accounts, which is great. In comparison, Delong is obviously building a huge "project" for the troika. At the end of 2003, the circulating market value of the three stocks increased by 37.34 times, 26.71 times, and 26.70 times respectively, and the total market value reached more than 20 billion yuan. In 2003, Delong's snowball reached its peak, becoming the private capital group with the most listed companies and the largest market value in China, and the speed of the troika has not slowed down at all, and the momentum is fierce. Tang Wanxin himself is also proud of the spring breeze, and was once elected as the vice chairman of the China Federation of Industry and Commerce , with the potential of a red-top capitalist.But the undercurrent has been surging, and Tang Wanxin has not been able to fundamentally resolve any of Delong's three fatal crises. Tang Wanxin has two teachers, Wang Mingfu from Junan Securities and Ning Gaoning from China Resources. The former is a smart man, a white wolf with empty hands, and he will leave without playing in the industry and making money.The latter is a standard "red-top industrial capitalist" who works solidly for the country and has unlimited capital, which is justifiable.Tang Wanxin's banker skills are mastered at a high level, and the heart of the industry is also close to that of Ning Gaoning.But at the current level of China's capital market, there are only two ways to catch up with the state capital in the industry with only the skills of a banker and a private body: one is to completely transform into a state capital, and the other is to follow an evil path.Tang Wanxin has worked hard, and he has "worked hard" in both aspects.For the former, he was elected vice-chairman of the China Federation of Industry and Commerce, and for the latter, he published an article in the People's Daily.But as a private capitalist, he still left more efforts to the latter, and the latter is no different from a bomb that may detonate at any time.Facts have proved that Tang Wanxin is not a master of EOD, which just constitutes his third biggest crisis.Tang Wanxin learned to become Wang Mingfu, and got a bad reputation as a banker, but he failed to become Ning Gaoning, so he was still regarded as an opportunity operator rather than an industry integrator.After the "Zhongke incident" in December 2000, public opinion suddenly pointed the finger at Delong, and "Delong is a banker" became a prominent headline in hundreds of media. In April 2001, Lang Xianping, a professor at the Chinese University of Hong Kong, bombarded him. Delong ("New Fortune" published the article "The Chinese Model of "Delong Family" Family Enterprises" written by Lang that month) became a symbol of the wave of doubts in this period.After that, Delong's Jinxin Trust suffered a run on it.But Tang Wanxin unexpectedly kept silent about it, pretending to be mysterious, and he seemed to let the rain and the wind blow, and I would stand still. And all that Delong did was for one purpose, to create a brand and attract more funds to maintain the continued operation of the entire huge empire, because the profits brought by its industrial integration were far from keeping up with the speed of its expansion. But no matter how big the artificially piled snow mountain is, it will melt one day.Delong went too fast, but also went too far: due to excessive investment in the industry of non-listed companies, including excessive investment in financial institutions, including excessive maintenance of stock prices, Delong has held too much money.That is to say, almost since Delong entered the bank, the tension in the capital chain has reached the time to face up to it and adjust it.However, due to various reasons, the adjustment did not come as scheduled.The myth was finally shattered, and Tang Wanxin's ideal of becoming a top 500 company collapsed in the bear market. The tragic ending: "As long as I save my life, I will still be a good man when I come out 10 years later!" Tang Wanxin's dream is to use the leverage of the capital market to expand the industry through industrial integration.For this reason, Tang's team has controlled and participated in a number of securities companies, trust companies, city commercial banks, financial leasing companies, and insurance companies in just a few years, completing the layout of a huge financial empire. Crazy illegal financing provides the channel. Anyone who is familiar with the stock market knows that in order to complete Tang Wanxin's "baton" operation mode, there must be sufficient and continuous funds to support the stock price.With the inflow and outflow of entrusted wealth management funds, the stock price was gradually pushed up, and it was simply impossible for Delong to solve the income from the funds.Capital once helped Tang Wanxin and his Delong empire expand rapidly, but the financial empire built by capital without a "foundation" eventually dragged down Delong. From the end of 2000 and 2001, the successive collapses of Zhongke Entrepreneurship and Yian Technology made Delong's customers smell "dangerous" one after another, and Yin Guangxia's financial fraud exposure also made Tang Wanxin's "industrial integration" story very firm. people start to wake up.The "China's No. 1 Village" that has been calm has never felt the tension before, and the undercurrent of run pressure is one after another in Delong. Since 2000, Delong's monthly support and other costs have reached hundreds of millions of yuan, and the long bear market has also doubled the pressure on Delong. After three years of buying financial assets to plug holes, "China The first village" finally couldn't bear it anymore.On April 13, 2004, the thrilling dive began.By May 25, the market value of the "old three stocks" had evaporated by 16 billion yuan.Today, when you look at the K-lines of these individual stocks, you can really feel the tragedy at that time. After the crisis broke out, the Tang Brothers attacked everywhere, and successively negotiated rescue plans with Minsheng Bank, American Mechanical and Electrical Fund, JP Morgan, Goldman Sachs China and other companies, but all failed. On May 28, 2004, Tang Wanxin and Tang Wanchuan disappeared.The latter fled to Canada and has not returned yet, while Tang Wanxin fled to Myanmar. On July 18, 2004, Tang Wanxin voluntarily returned to Beijing to surrender, and was subsequently placed under residential surveillance at Beijing Zhongyuan Hotel.During that time, Tang Wanxin was still seeking a central enterprise to take over Delong's assets, but after the central-level consortium learned more and more of the truth, no one dared to touch Delong's hot potato.In the end, Huarong Asset Management Company took full custody of Delong's industrial and financial assets.Tang Wanxin's dream of the Delong Empire was completely shattered by himself after 18 years. On April 29, 2006, the Wuhan Intermediate People's Court sentenced Tang Wanxin to a total of 8 years in prison and a fine of 400,000 yuan for the crime of illegally absorbing public deposits and manipulating the price of securities transactions. While serving his sentence in Caidian Prison in Wuhan, Tang Wanxin helped the garment factory affiliated to the prison to turn losses into profits, with an annual profit of 2 million yuan. He performed "contributory service" and was later "bailed for medical treatment" during the Beijing Olympics.Media personnel who have reported on the Delong case many times before believe that even if Tang Wanxin is "bailed for medical treatment", no matter from the subjective or objective point of view, he will not have too much contact with the outside world, and he does not want to be paid attention to by the media.But he didn't take it seriously. A person who used to work in the former Delong Department of Deheng Securities also revealed recently that after Tang Wanxin was released from prison, he has re-established contact with some old departments and may make some strategic investment reports. Behind the scenes directing. But the good times didn't last long, and under the pressure of all parties, the relevant judicial departments could only ask Tang Wanxin to return to prison to serve his sentence.A generation of stock market heroes can only continue to wait quietly... In fact, Delong Empire is by far the largest, fastest growing, and most powerful enterprise in China's financial industry.Tang Wanxin's strategic thinking could be said to be original at the time, which made many people amazed.His success has allowed many small and medium-sized enterprises to see a way to grow rapidly.As a Chinese capital tycoon, his ability can be said to be beyond doubt. Perhaps his only shortcoming is communication ability. "Do things according to market rules, and maintain a close relationship with the government." No matter how big a company is, it needs government support. He must know this truth. Perhaps there is a lack of common methods, and I am not convenient to disclose many inside stories.All I can say is that if he still has the chance, I believe he will make a comeback and make a comeback. Salute, great hero.