Chapter 72 Xinxin observes the "misplacement of law and crime" of Chinese entrepreneurs

In the 30 years of corporate history, countless entrepreneurs have been sacked, and the voices of grievances and grievances are endless.If you read these cases carefully, you will find a very strange fact that is rarely noticed: some convicted entrepreneurs often commit crimes in the east, but get the crime in the west. The Guan Jinsheng case in the mid-1990s was very impressive. In 1995, Guan Jinsheng, the general manager of China's largest securities company, Wanguo Securities, directed a catastrophe.At that time, the biggest suspense in the treasury bond futures market was whether the three-year treasury bond issued in 1992 would raise interest rates.The scale of this issue of national bonds code-named "327" is 24 billion yuan, which will mature in June of that year. With a coupon rate of 9.5% plus a subsidy rate for preservation of value, every 100 yuan of bonds should be redeemed at 132 yuan when the bond matures. The circulating price on the website is around 148 yuan.At that time, the bank's savings interest rate was 12.24%, and the market generally believed that the return on the "327" national debt was too low. Therefore, it was reported that the Ministry of Finance might increase the interest rate on the "327" national debt.

But Guan Jinsheng didn't see it that way.He believes that the current macro situation is overheated investment, and it is impossible for the central government to take extra money from the treasury to subsidize.Therefore, he ordered Wanguo Securities to short the "327" national debt. However, this time he bet wrong. On February 23, the Ministry of Finance announced to raise the interest rate, and the "327" national debt will be paid at 148.5 yuan. Once the news was verified, the market price of "327" government bonds began to rise all the way.Guan Jinsheng holds a large amount of "327" treasury bond futures contracts, and every 1 yuan increase means that he will lose more than 1 billion yuan.Guan Jinsheng, who was cornered, blushed anxiously.He ordered that the price must be returned at all costs. Wanguo Securities continued to place orders in the market, and there was a tragic strangling battle between the long and short sides, and the market was "bloody".In the last 7 minutes before the market closed, Guan Jinsheng, who had lost his mind, put all his eggs in one basket and placed a total of 211.2 billion yuan in sales orders, forcing the price down to 147.4 yuan.

Guan Jinsheng's crazy behavior finally made the management intolerable.During this day's offense and defense, Wanguo issued a sale order worth hundreds of billions of yuan, which required a deposit of at least 10 billion yuan. It was obviously impossible for it to have such a large amount of capital guarantee, and unscrupulous illegal operations were almost a certainty.That night, the Shanghai Stock Exchange was ordered to announce that after 16:22:13—that is, the moment when Guan Jinsheng used the day order to suppress the market—the subsequent transactions were abnormal, and all transactions of “327” government bonds after that were invalid.Guan Jinsheng, who was trying to snatch food from the tiger's mouth, was finally bitten by the tiger. The situation at that time was that if calculated based on the closing price of 147.4 yuan, Wanguo Securities made a profit of more than 1 billion yuan in the "327" treasury bond futures transaction, while according to the Shanghai Stock Exchange As a result of the subsequent decision, Wanguo Securities suffered a huge loss of 6 billion yuan.

On May 19, Guan Jinsheng was arrested and sentenced to 17 years in prison.Interestingly, people all over the world know that he was arrested because of the "327" national debt incident, but the charges against him were bribery and embezzlement of public funds.The court's criminal judgment accused Guan Jinsheng of taking advantage of his power to accept 294,000 yuan in bribes three times, and also embezzled 2.4 million yuan of public funds for others to carry out profitable activities. "The circumstances of the crime are particularly bad."This stock market tycoon who came out of a small mountain village in Jiangxi was on the verge of failure and was speechless.He did not appoint a defender and refused to be appointed by the court.

Similar to the Guan Jinsheng case, there is another "Godfather of the Stock Market" convicted. Around 1997, Zhang Guoqing, the president of Shenzhen Junan Securities Co., Ltd., who was at the peak of his career, began to consider using MBO to complete Junan’s equity transformation.He is not only the president of the company, but also the chairman of the board of directors, as well as the dual roles of manager and capital representative, so he naturally has the convenience of formulating rules and putting his hands on each other.After ingenious arrangements, the Employee Stock Ownership Association, with Zhang Guoqing and other senior executives holding most of the shares, became the actual controlling shareholder of Junan Securities, with a shareholding ratio of 77%.Junan's move caused a big shock in the financial world, and the management authorities were quite dissatisfied with it.After being audited by relevant departments, Zhang Guoqing was suspected of "embezzling state-owned assets and transferring state-owned assets to private names in disguise."However, what is intriguing is that in the final trial of the court, Zhang Guoqing's charges became "false capital injection" and "illegal foreign exchange evasion", and he was sentenced to 4 years in prison for this.

Among the corporate history materials I have collected, there are many very famous cases of "misplacement of legal crimes": The case of Nian Guangjiu - this "fool" who is famous for his employment disputes will face disaster every time the macro tightening. At the end of 1989, when the private economy became a gray term again, Wuhu City suddenly filed a case against Nian Guangjiu for "corruption and misappropriation of public funds."The case dragged on for two years. In May 1991, Nian Guangjiu was found guilty of hooliganism and sentenced to 3 years in prison.What is even more darkly humorous is that at the beginning of the second year, Deng Xiaoping mentioned Nian Guangjiu for the third time in a southern talk, and he was acquitted and released a month later.

The case of Mou Zhong - this "Don Quixote" in the history of contemporary enterprises has "fooled" countless big projects that made people excited but ended up with nothing. In September 1997, an illegally published magazine supplement suddenly emerged from the ground.It is said that the book was written by "three senior wage earners who once defected to South Germany risked their lives to be hunted down".It described Mou Qizhong as China's biggest liar who "deceived the central government at the top and the local government at the bottom". On the cover of the book, the words that Mou Qiqiong's former lawyer once said were impressively printed: Mou Qiqiong will not die, and the law of nature will not tolerate it. In May 2000, Mou Qi was sentenced to life imprisonment by the Wuhan Intermediate People's Court on the charge of "letter of credit fraud".So far, many legal experts still believe that Mou Zhongzhong's words and deeds are quite debatable, but the identification of him fraudulently issuing a letter of credit is highly debatable.

The case of Shen Taifu - In 1992, Shen Taifu of the Great Wall Electromechanical Technology Development Company raised funds from the whole society in the name of developing a high-efficiency and energy-saving motor, and the annual interest was as high as 24%.Shen Taifu has set up more than 20 branches and more than 100 branches across the country, employing more than 3,000 employees. The main business is advertising, speculation, and fundraising. In less than half a year, a total of more than 1 billion yuan was raised. RMB, with 100,000 investors.The fund-raising storm of Great Wall Company has aroused the serious attention of the central government. The People's Bank of China issued a "Notice" to stop it. However, Shen Taifu sued the People's Bank of China for compensation of 100 million yuan, and held a press conference at home and abroad, causing an uproar in public opinion. .Soon, Shen Taifu was arrested.Although everyone knew that he was arrested for disrupting the central financial policy by raising funds with high interest rates, he was eventually prosecuted for corruption and bribery.The complaint of the Beijing Intermediate People's Court stated that Shen Taifu had repeatedly withdrawn social fund-raising funds from his company's fund-raising department in the name of borrowing money, which constituted a crime of corruption; More than 250,000 yuan, which constituted the crime of offering bribes, the two crimes were punished together, and it was decided to execute the death penalty.

In recent years, the most typical case of "misplacement of law and crime" should be regarded as the sensational Tieben incident. There is no precedent for any reform.Therefore, in an era of change, many reform actions are a breakthrough to the existing system at the beginning, so they are "innately" illegal and illegal.This makes reformers have to take great risks.And when their reform actions are questioned, some in power are often reluctant to respond positively. In fact, in all the periods of great change in human history, "misplacement of law and crime" is almost a common phenomenon.In this sense, the "original sin" of Chinese entrepreneurs is also the "original sin" of this reform era.