Chapter 31 Doom Run: The Big Game Without Moderation

The questioning of Deron began in the spring and summer of 2001.At that time, the "Chinese Science Department" incident had just ended, but the stocks of the "Delong Department" reached their highest prices under the support of Tang Wanxin's bloodshed. In April, Shenzhen's "New Finance and Economics" magazine published a large-scale research article chaired by Lang Xianping - "Delong Family: "Family-like Enterprise" Chinese Model", which exposed the mysterious "Delong Family" to the world for the first time . Before that, despite Deron's fame, almost no one had figured out how it worked.Tang Wanxin is extremely low-key. He has never been officially interviewed by the news media, and even his public photos are very rare.Before "New Finance and Economics" published the article, he had not participated in any large-scale business forum.Even until April 25, 2004, Tang Wanxin was "insulated" from government departments outside Xinjiang. He did not visit or meet with any regulatory department including the China Securities Regulatory Commission.This is a person who likes to operate behind the scenes, is extremely confident in himself and loves face.

Lang Xianping’s investigation revealed to the public for the first time the corporate structure of the “Delong Group”, and clearly described the path of Delong’s profit from the capital market: taking advantage of the split shareholding status of China’s stock market, through very low prices Receive state shares or legal person shares to realize control of a listed company, and then continue to create good investment news such as mergers and acquisitions and reorganizations-the investment amount is not very large, and it is difficult to achieve economies of scale.At the same time, choosing the wonderful distribution method of high bonus shares did not allow shareholders to get a penny of cash, but it promoted the rise of stock prices.In this process, the bankers obtain huge profits from the secondary market.Lang Xianping concluded that: "Delong's money-making model is rudimentary, and its rate of return is much higher than the general model of family businesses in other parts of Asia."

In the two months after Lang Xianping’s research article was published, the Chinese stock market experienced three consecutive rounds of sharp falls. The Shanghai Stock Exchange Composite Index fell all the way from 2,245 points to 1,300 points.At this time, the Delong model has faced serious doubts, and the regulatory authorities have begun to intervene in the investigation. It has been labeled as "shady", "black-hearted banker", and "financial predator".In order to avoid the overall collapse of the "Delong family", Tang Wanxin had to grit his teeth to prop up the stock price.So "retribution" appeared. Everything he got from the stock market was returned to the stock market dollar by dollar, and he was forced to post more funds, which eventually included all Delong and his personal assets.

In 2002, on the surface, this was the fastest expansion year for Deron.The huge investment projects proposed by it are like flares with amazing energy, and they explode one after another, making the Chinese business community so bright that they dare not stare at them. In May, Delong established Denong Supermarket Co., Ltd., announcing an investment of 10 billion yuan within 5 years, and completed the layout of setting up 10,000 agricultural supermarkets in 10 major agricultural provinces. By then, a huge and modern supermarket will be built in the vast rural areas of China. , Efficiently operated agricultural materials distribution network.

In July, Xiang Torch issued consecutive announcements, announcing that it would build a heavy-duty vehicle empire.It has established joint ventures with Chongqing Automobile Group and Shaanxi Automobile Group, two of the most important professional manufacturers of heavy vehicles in China, and established Dongfeng Off-Road Vehicle Company with Dongfeng Motor Group.This shows that Delong will transform Xianghuoju, a professional manufacturer of auto parts, into a complete automobile company.Some experts predict that to realize the goal proposed by Delong, it will need to invest 6 billion to 10 billion yuan.

In September, Delong established Animal Husbandry Investment Co., Ltd., intending to invest 2.5 billion yuan to develop vast natural pasture resources in Xinjiang and build three major industrial bases of "North Slope of Tianshan Mountain, Ili River Valley, and Southern Xinjiang Oasis", and eventually form grass It has become a leading enterprise in China's dairy industry with a large-scale industrial chain that simultaneously develops milk, meat, leather and medicine. In November, Delong Tourism Group was formed, envisaging the integration of Minsk Project in Shenzhen, Kanas Lake in Xinjiang, Grape Valley in Turpan, Jinggang Mountain, Longhu Mountain in Jiangxi and Huangguoshu in Guizhou, etc., to become the most scenic resource in China Tourism "aircraft carrier", the total investment of this project is 3.5 billion yuan.

Every two months, Delong starts a project worth billions or even tens of billions of dollars.This year's Tang Wanxin can't help but remind people of the young man in Urumqi 14 years ago. He has wrinkles on his face and a slightly fat body. His work location has also moved from remote Urumqi to Beijing and Shanghai.However, this is still the man from Northwest China who has not changed his temperament, likes to fight on multiple fronts, and doesn't care about risks. The only difference is that the scale of the project after 14 years has been magnified thousands of times, or in other words, the risks and consequences have also increased. Only a few thousand times.In hindsight, Tang Wanxin was either "telling a story" with ulterior motives, or he was an entrepreneur who never learned to give up.

In November 2002, Tang Wanxin's elder brother Tang Wanli was elected as the vice chairman of the All-China Federation of Industry and Commerce. He announced to the media: "Delong will enter the world's top 500 within three years." In December, Delong Group moved to Pudong, Shanghai. Delong Building in prime location.In the eyes of outsiders, Delong is at the peak of its glory at this time. It claims to control assets of 120 billion yuan, has more than 500 enterprises and 300,000 employees, and has been involved in more than 20 fields. It has become China's largest private enterprise group.

In fact, Deron is terminally ill. Tang Wanxin's last struggle was trying to directly enter commercial banks in local cities.It is less and less likely for Delong to obtain loans from large commercial banks, while there are more than 100 domestic city commercial banks with total assets of 550 billion yuan and deposits of 450 billion yuan; if he can enter, Delong will truly form a A consortium model in which industrial investment and finance are closely integrated, and it is possible to completely whitewash itself. In June 2002, Delong controlled Kunming Commercial Bank through six shadow companies, becoming a major shareholder with a total shareholding of nearly 30%. In September, it contributed capital through Xiang Torch, accounting for 11.73% of the total share capital of Zhuzhou City Commercial Bank after capital increase and share expansion.At the same time, it also involved Changsha City Commercial Bank and Nanchang City Commercial Bank.In less than a year, Delong has successively reached agreements on holding or participating in shares with commercial banks in at least six cities.In fact, the asset quality of many commercial banks is not good, it can even be said to be very poor, but Deron is not picky.Tang Wanxin's purpose is actually two: First, after joining the bank's board of directors, he can use the names of various projects and affiliated companies to obtain funds from them.Later facts also proved that this was true. The amount of loans that Delong obtained from a city commercial bank in Shandong reached 4 billion yuan.Second, speculate on the concept of equity participation in finance in the stock market to support and stimulate the "Delong" stocks that have shown signs of weakness.

By the summer of 2003, Deron's financial difficulties had not been fundamentally improved. After October, the financial institutions under its umbrella have almost no new funds, and the "financial behemoth" is facing the fear of dying.At this time, Tang Wanxin became the only loan officer in Delong who still had "loan credit". He traveled around day and night, and borrowed as much as 5 billion to 6 billion yuan from others. The house leak happened to rain all night, and misfortune began to befall the Tang family. In April, Tang Wanxin's second brother, Tang Wanping, suffered a cerebral hemorrhage during a negotiation. After being rescued, he became a serious patient who could not continue to work. In July, Tang's mother, who was suffering from advanced liver cancer, died suddenly due to a cerebral hemorrhage. His filial son Tang Wanxin was greatly mourned and could not work for dozens of days.And he himself was diagnosed with coronary heart disease, cerebral thrombosis and other diseases when he reached middle age.In order to save Deron, he presided over 6-12 fund scheduling meetings during the day, received or entertained debt collectors from all over the country at night, and worked an average of 15 hours a day.During this period, Tang Wanxin talked to his close subordinates many times about a strange incident when he was young. An expert once predicted that he would have a "big disaster" when he was 40 years old.He said that he wanted to quit the business world before the age of 40 and go to Xinjiang to be a leisurely hunter.

However, the situation at this time had deteriorated to the point where he could not control himself. In December, he pledged 100 million legal person shares of Hunan Torch, the best asset in the "Delong family", to the bank. In the next six months, all legal person shares of listed companies in Delong's hands were mortgaged.The most ridiculous news is that in Hurun's "Top 50 Capital Controls in 2003", Delong Tang still ranks first among the top companies with a listed company's market value of 21.7 billion yuan. In March 2004, some media were the first to report "Delong's capital chain is tight", saying that "Delong has put most of its funds on its various stocks. A few stocks supported the market, and now they are all running out with all their strength."This negative news spread like a virus quickly on various domestic websites. On April 3, the last all-level high-level meeting in the history of Delong was held in a dull atmosphere. The meeting decided the last "self-help action": mobilize all employees of Delong Organization to buy "old three shares", department managers 10,000 shares, 1,000 shares for ordinary employees.Tang Wanxin said sadly: "This hurdle has passed, and Delong will have a better future. If we can't pass it, everyone will never have the opportunity to sit together for a meeting." His eyes were on the leader who never bowed his head to admit defeat.That day happened to be his 40th birthday, and many people couldn't help but think of that black prophecy. The real disaster officially started 10 days later.First, the alloy shares took the lead in lowering the limit, and then the "old three stocks" fell across the board. Within a few weeks, the stock market wiped out all the miracles and paper wealth created by Delong in the past five years, and the market value in circulation has risen from the peak of 20.68 billion. The yuan fell to 5.006 billion yuan on May 25, 2004, and nearly 16 billion yuan evaporated overnight.A year later, the popular song "Hey Brush" was previewed on Delong: "Take mine and send it back to me, eat mine and spit it out for me," the record in "Sparkling Red Star" became Into the dialogue at this time. A few months ago, the creditors who enshrined the Tang brothers as gods rushed to Delong's headquarters in Beijing and Shanghai like crazy, and the public security departments in various places were also caught up in the news. People, to die is to see a corpse."Tang Wanxin frequently changed his office and residence, and all external negotiations were handed over to his elder brother Tang Wanli. On April 22, Li Xueqin, chairman of Jiangsu Yaxing Bus, who entrusted 70 million yuan of funds to Delong Financial Management, went to Beijing on a hunger strike to beg for money.He told the media reporter: "If I can't get the money back, I will die to thank Yaxing's 6,000 employees." In a small conference room, 56-year-old Li Xueqin burst into tears and wailed loudly, banging his head on the conference table, The scene was very miserable.Tang Wanli's inner moral defense was completely overwhelmed. He said tearfully to the reporters present: "I really can't take it anymore. Li Xueqin gave me too much stimulation. After this incident, Delong will never do financial affairs again." gone." Just when Tang Wanli was exhausted, Tang Wanxin was looking for help everywhere, and he stepped into the gate of the China Securities Regulatory Commission for the first time.This agency allegedly monitored Delong all the year round and formed a 1,500-page audit report, but for some unknown reason, it never interfered with it.Tang Wanxin has also negotiated with domestic and foreign financial institutions such as Goldman Sachs, Minsheng Bank, etc., but it is difficult to achieve results.All the investment shares in Delong's hands are either pledged or sold. The public security departments of more than 10 provinces and cities have seized Delong's assets and prepared to arrest people. In Shanghai alone, 1.3 billion yuan of assets were frozen. Banks have sued Delong. On May 29, seeing that the general situation was over, Tang Wanxin left for Myanmar.The case finally alarmed the central government. Beijing set up a working group headed by Wu Xiaoling, deputy governor of the People's Bank of China, and Xie Ping, director of the Financial Stability Bureau, to deal with the Delong issue. The Ministry of Public Security set up a "706" task force to investigate related crimes.According to preliminary calculations, the total bank loans of the "Delong family" are about 16 billion yuan.However, the organizational structure of this "financial monster" is too large and intricate, involving 320,000 related employees and more than 100,000 individual investors. In the whole world, no one other than Tang Wanxin can fully sort it out.Therefore, letting the player return to China became the only feasible solution. On July 18, Tang Wanxin, wearing a T-shirt and still sporting his iconic moustache, appeared at the Beijing airport.Xie Ping and Li Lu, director of the Economic Bureau of the United Front Work Department, went to the airport to pick him up. He was immediately taken to Tiancong Pavilion, Zhongyuan Hotel, Beijing for residential surveillance. At that time, Tang Wanxin was almost "everyone said he could be killed".He actually agreed to return to China, which was beyond the expectations of many people.This also shows that this person dares to take responsibility and values ​​loyalty.Tang Wanxin worked day and night at his desk in the hotel, and took out a stack of more than 30 centimeters thick "The Overall Solution to the Delong Problem by Marketization".He has always stubbornly believed that Delong's ideas and achievements in industrial integration cannot be questioned, and his fault is that the high debt ratio has caused a financial crisis.Therefore, only a financial institution needs to centrally manage Delong's debts and assets, inject a certain amount of funds, and divest some of the corrupted assets, and everything can be restored to normal.This seems to be a plan that has the least impact and minimizes losses. However, this is actually a "cover up" approach. Delong has so many illegal operations, related transactions, and more than 500 companies. The inextricably messy pattern formed with hundreds of financial institutions in dozens of places makes it difficult to conduct a one-time "overall solution".Shortly after he handed over the plan, the government decided that Huarong Asset Management Company, which specializes in dealing with non-performing assets, has full authority to manage all Delong's claims and debts.After that, the Sanlin Group of the Lin Shaoliang family, the richest Chinese man in Indonesia, tried to take over Delong. After detailed investigations and rounds of negotiations, they failed to reach a cooperation agreement.Huarong Asset Management finally decided to disassemble Delong for retail sales, which meant that Tang Wanxin's carefully implemented strategy of industry-finance integration and the so-called "industrial value" formed were wiped out. The final outcome of Delong became a tragedy of "all people pay the bill". The "old three stocks" with slightly better quality were divided up one by one. , Shanghai Volkswagen and more than 20 auto companies competed for it, and finally Weichai Power of Shandong succeeded.Many trust, leasing, securities and other financial companies under Delong have been suspended for rectification or closed down one after another. Many creditor banks and thousands of large and small companies that have entrusted Delong with financial management have suffered heavy losses.In order to maintain social stability, the government decided to protect individual investors. The amount of creditor's rights is 100,000 yuan as the limit. Those above this number will be purchased at a 10% discount, and those below this number will enjoy full purchase. As for the financial commitment, Xinjiang alone paid 1.38 billion yuan.