Chapter 27 Article Thirteen DeLong: The Fate of the Financial Dinosaur

In the past 30 years of Chinese business circles, there have been two famous capital tycoons successively. The former is Mou Zhong of South Germany, and the latter is Tang Wanxin of Delong.Their entrepreneurial careers and experiences of ups and downs are quite different, but there are some similarities: their Chinese zodiac signs are both "Dragon", a full 24 years apart; their hometowns are both Wanxian County, Chongqing; locked up in a local jail. Tang Wanxin was born in a branch family in Urumqi, Xinjiang.After graduating from middle school, he was admitted to two universities but dropped out before finishing both.He has no interest in studies and seems born to be a great businessman.While studying, he once volunteered to run a school-run farm, but the business failed miserably. In December 1986, Tang Wanxin raised 400 yuan to open a "friend" color printing shop at the side gate of the People's Park on Tuanjie Road, Urumqi.It quickly became a stronghold for business youth in Urumqi.They wear thick military cotton clothes every day, while making steamed buns in military steel pots, while talking loudly.Tang Wanxin made some money in color printing, and then went to start a lot of industries: a lock factory he ran closed down because he didn't have a production license; he went to develop satellite TV receivers, but the technicians were poached later He founded a feed factory but lost a lot of money; he acted as an agent of artificial fur business in Xinjiang, which made him unable to make ends meet; he even went to the remote Taxkorgan County to contract a hotel, but the result was also unsuccessful.In just three years, he has also set up a noodle factory, a small chemical factory, a service department for extracurricular reading materials for students, a clothing store, a software development company, an advertising agency, and a consulting center for studying abroad.Tang Wanxin's safari personality, who is good at hunting and neglects intensive farming, has been fully exposed at this time.He has a strong interest in business, but the excitement is very easy to shift. He is born with a gambler's nature and a resilience of repeated defeats.

Because of all the troubles, Tang Wanxin owed more than 1 million yuan in debt.He called the creditors together and said: "If you can trust me, give me a chance; if you can't trust me, then send me to prison." In 1991, 27-year-old Tang Wanxin suddenly turned around. A computer operating company he founded, By acting as an agent for Stone printers, he actually made 1.5 million yuan in one breath in the business of some large oil fields in Xinjiang.The first thing he did was to pay off the debts one by one, and pay a sum of interest.Tang Wanxin's commercial reputation was thus established, and many creditors later became his subordinates.

In 1992, Tang Wanxin did a major event that changed his fate.At that time, after the publication of Deng Xiaoping's speech on the South, there was a wave of enthusiasm for accelerating reforms across the country, and the Chinese stock market experienced a blowout. In August, the Shenzhen Stock Exchange announced the issuance of 500 million domestic public shares, and the sale of 5 million lottery sheets, with a winning rate of 10%. Each lottery sheet can subscribe for 1,000 shares.Tang Wanxin, who had tried his luck in Haikou and Shenzhen, immediately felt that this was a good opportunity to make a fortune. He spent money and invited 5,000 people to line up in Shenzhen to receive the subscription lottery form in the name of going out for a while.At that time, 1.5 million people flooded into Shenzhen at once, and finally caused a riot of moderate size. "Tang Wanxin's Troop" should be regarded as the subscription team with the largest number of people.Each of these people had a small wooden stool, and they lined up to receive 50 yuan labor fee a day, and the line lasted for three days.From then on, Tang Wanxin "feeled that today is true and yesterday was wrong", and turned from starting a business to becoming obsessed with the stock market with "the fastest money coming in".

After returning to Xinjiang, he and his eldest brother Tang Wanli and others registered and established Xinjiang Delong Industrial Company, which specializes in stock operations in the capital market.They bought a large number of original shares and internal employee shares of state-owned enterprises in Xinjiang, Shaanxi and other northwestern provinces, and either resold them to financial institutions in Xinjiang, or waited until they were listed and sold them for cash.Once, they bought 10 million legal person shares of "Northwest Bearing" at a price of 10 million yuan, and made a net profit of 30 million yuan a few months later.It was a crazy age, and being good at discovery and boldness made a generation get rich quickly.

If reselling stocks gave Tang Wanxin a glimpse of the palace of the capital market, then his testing of the treasury bond market allowed Delong to complete primitive accumulation in the true sense.Since the early 1990s, the Ministry of Finance has introduced the underwriting and underwriting policy for government bonds. For quite a few years, most of the government bonds were underwritten by dozens of securities intermediaries. An unofficial treasury bond circulation market, and the over-the-counter treasury bond exchange in Wuhan was the largest and most active trading platform in China at that time. In 1994, Tang Wanxin successively raised 300 million yuan from Hainan Huayin International Trust and Investment Company, which we will see traces in the Brilliance case, and China Rural Development Trust and Investment Company through the treasury bond repurchase business.

It was also relying on this large amount of capital that Tang Wanxin began to build his financial empire.