Chapter 41 Construct the "Chinese Science Department"

Zhongke Entrepreneurship was founded by Mr. K in Beijing in July 1999, with a registered capital of 30 million yuan, all of which he earned from the hype of Kangda.Mr. K, who has been hanging out in Beijing for a long time, is very superstitious about the company name with the prefix "中", which sounds a bit like a state-level enterprise.The reason why it is called "Zhongke" is because the chairman he hired was the deputy director of the high-tech research and development center of a public institution directly under the Ministry of Science and Technology.With this relationship, he often boasted that Zhongke’s entrepreneurship “has the background of the Ministry of Science and Technology”.Mr. K, who won a big victory in the first battle of Condal, is now ambitious. He is determined to create a "Chinese science department" composed of a number of listed companies.Warlords during the Republic of China were often referred to as "clans", such as Feng Clan, Anhui Clan, and Dian Clan, which represented an interest group with mutual interests and shared life and death.Mr. K, who is well versed in history, used it creatively in the stock market, with a domineering momentum.

When Mr. K entered the listed company, he did not collect money bit by bit from shareholders in the secondary market like Zhu Dahu did in the past, but aimed at the company's state-owned assets authorities and purchased legal person shares from them. Such a transaction cost Naturally lower and not regulated by any department.In a sense, it is the unique shareholding structure of the Chinese stock market that gives speculators like Mr. K room to maneuver. In March and July 2000, he transferred the legal person shares of Zhongxi Pharmaceutical held by the Pudong Xinghuo Development Zone United Company twice, becoming the largest shareholder of the company. In June, he purchased 9 million shares of Shengli shares held by Junan Securities Co., Ltd., and became the fourth largest shareholder of the company; shareholder.

In just four months or so, Mr. K made frequent moves and impressively completed the project of building the "Department of Chinese Sciences".These companies have characteristics similar to those of Condal: they are small-cap stocks in the stock market due to their small stock market; their operating performance has been poor for many years, and the state-owned asset management authorities have lost interest in them; their industrial characteristics are clear, and they have room for speculation. Mr. K’s acquisition of these companies and manipulation of stock prices naturally required a large sum of money. At this time, he and Zhongke Ventures were already well-known in the securities circle, and they seemed like a legendary master who could turn stones into gold.At this time, it was no longer difficult for Xiaoding to find funds for him, and Zhongke Entrepreneurship can be described as a bustling business.Xiaoding also admitted in court in the future: "The people who gave money lined up in a long line, so that investors with less than 10 million yuan were turned away." In order to snatch the eye-catching transaction volume and intermediary agency fees, the latter searched for money for Zhongke Entrepreneurship, and the financing amount exceeded a staggering 5.4 billion yuan.In this way, a very rare and huge chain of interests full of sinful temperament was formed around the "Chinese Department of Science and Technology". Mr. K's financing method is very similar to international private equity funds, but this kind of behavior violates relevant laws in China. Even Mr. K himself admits, "If those financing agreements are presented, they must be witnessed and signed. All lawyers are going to jail.”However, almost everyone involved is determined to take the risk and regard the law as nothing.These people are knowledgeable and proficient in legal provisions, and all of them are top elites in this commercial society. However, under the temptation of huge interests, all of them have broken through the bottom line of their professional ethics.In this sense, the formation of the "Chinese Department of Science" and the success of Mr. K can be said to be a great shame to the Chinese securities industry.

When the equity was in hand, the funds were in place, and the accomplice structure was formed, Mr. K and Xiao Ding started their banker operations.Its method is almost the same as that of Condal: constantly releasing good news about asset restructuring, and pushing up the stock price on a large scale.And one of its reorganization methods is the arrangement and combination of companies in the department controlled by him. In July 2000, just after he acquired Zhongxi Pharmaceutical, he hastily announced that Zhongke Pioneering, Zhongxi Pharmaceutical and other companies established a wholly-owned company to start an advanced cancer treatment instrument-Neutron Afterloading Therapy Machine (Neutron for short) The production and sales of knives), and later announced that the two companies will jointly build the "China E-Commerce United Network", forming a large alliance of 18 enterprises with different ownerships, creating a large-scale cross-regional and cross-border network platform, and building a " A highly innovative super e-commerce building".In addition, he also declared that Zhongke Entrepreneurship will form a "China Feed Industry E-Commerce Investment Co., Ltd." with a company named Hainan China Net, which is naturally also a company registered and established by Mr. K himself; Huge sums of money are spent on the development of alfalfa projects that have the dual benefits of preventing quicksand and drug development.The irony is that, except for the alfalfa project, which has invested 1 million yuan, the above-mentioned major projects that are shining with gold are all castles in the sky, and none of them have ever been implemented.

However, these wave after wave of favorable reorganizations are like stimulants one after another for ordinary shareholders who don't know the truth, so the stock prices of China Science and Technology Ventures and related companies skyrocketed.Even Zhu Dahu, who has been immersed in the stock market for many years, has to admire Mr. K's manipulative skills. He was only in charge of "locking positions" and trading in the secondary market during the whole process. It will go up, and it will be unstoppable, which has never been encountered before."This phenomenon shows that more and more stock investors have rushed into Zhongke to start a business, and the "chicken stock" that was a year and a half ago actually flew up to the branch and became a glamorous and pretty phoenix.

Later, Xiaoding described their operating skills in court: "After the stock market value doubled, we used Zhongke Venture as a pledge to buy Laiwu Iron and Steel, Maanshan Iron and Steel, and Shirbao Thermal Power to increase these stocks. After increasing the market value and selling it to make money, they will further speculate on the stocks of Zhongke Ventures by liquidating their positions and knocking against them. Because the prices of stocks such as Laiwu Iron and Steel Co., Ltd. and Shirbao Thermal Power are low, Lu Liang hopes to use them to earn money to repay the financing interest, and hopes to gradually replace them. Out of the "financing" of Zhongke Entrepreneurship, we finally took Zhongke Entrepreneurship as our own. According to Lu Liang's instructions, we used restructuring methods to release good news for Laiwu Iron and Steel, Maanshan Iron and Steel, and Suibao Thermal Power, and made money from the secondary market. Luliang then To plan and encourage large institutions such as Beiguo Investment, Yunnan Hongta, and Shandong Electric Power to acquire these listed companies."

When Mr. K wanted to manipulate the stock price, the securities media and the so-called financial research institutions became his most important allies.Zhongke Entrepreneurship has been listed as one of the 10 stocks with the least investment risk by China Securities Journal for 26 consecutive months, and it has been ranked first for a long time. "Securities Weekly" listed it as a big bull stock that can be assured of long-term holdings.As a result, Mr. K became famous, and countless enterprises and local governments asked him to be an investment consultant; he traveled to various cities every day, often appearing in Shanghai in the morning, in Beijing in the afternoon, and returned to Shenzhen in the evening.

He is very proud of his talent as a banker. In an interview, he commented on himself: "Because it has continued to rise, and there is almost never a day of decline, so no one has lost money on it. This banker has become a stock market. A typical representative of 'Shanzhuang', highly respected by market professionals." During this period, Mr. K and "Chinese Science Department" almost became synonymous with stock rises, as long as he looked at any stock more, he would immediately There is a reaction in the stock market.He started to buy the tradable shares of Suibao Thermal Power at a price of about 22.35 yuan. As soon as the news came out, the stock price jumped all the way, reaching a peak of 38 yuan.The acquisition cost of the "Chinese Department of Science" was about 80 million yuan, and the profit from this round of stock price rises reached 50 million yuan.For a while, he took a fancy to Laiwu Steel, believing that its H-beam production line has long-term growth potential. In fact, he has never been to Laiwu Steel, nor has he had direct contact with the company's management.As a result, as soon as his comments appeared in the newspapers, Laiwu Iron and Steel Co., Ltd. even ate several daily limit boards.

The most exaggerated thing happened on February 18, 2000.That day was the wedding day of Mr. K Lu Liang.The day before, he jokingly said to Xiao Ding, "Can you give me a special gift?" Xiao Ding smiled knowingly.At this time, Xiaoding was already the "No. 1" super trader in the Chinese stock market. Every day, he would command more than 70 traders from all over the country to control the stocks of the "Chinese Science Department" with "scientific and precise" methods. ups and downs. On the 18th, the closing price of Zhongke Venture just stopped at 72.88 yuan.The miraculous Xiao Ding gave the boss a gift that others thought was jaw-dropping in his own way.It can be seen that this group of people has really played with the stock price to the point of doing whatever they want.