Late February 1984.

Lin Qi made an appointment with Li Fuzhao at his villa in the mid-levels of Hong Kong. Although Li Fuzhao is a tycoon in the Hong Kong securities industry, he is not too rich after all.

In Hong Kong, where money is respected and money can do whatever you want, Li Fuzhao is obviously not a high-grade figure with Lin Qi. Even if you give face and call him the godfather of securities, that's what it is.

Invite Li Fuzhao to his home for tea, this securities tycoon has come upside down.

Because, Lin Qi is a potential customer of the Far East Club, and the customer is God. The development of the Far Eastern Group will mainly be due to attracting a large number of Chinese-funded enterprises to go public, winning by quantity, and in the end, surpassing the Hong Kong Stock Exchange in scale.

"Mr. Lin, there is no problem with the listing of a new venture publishing company in principle, as long as your information disclosure complies with the rules of our exchange, you must disclose the annual report at least once a year, and it is best to disclose the semi-annual report and quarterly report, and find a qualified investment bank for listing counseling, it should be no problem. The fastest speed, it can be launched within this year. Li Fuzhao smiled and said, "However, why doesn't Mr. Lin consider listing some more promising companies? For example, Xinfei Electronic Technology Company, VCD and CD are very popular, and if they are listed, they may become stars in Hong Kong's capital market!"

"Let's test the water first!" Lin Qi smiled and said, "Besides, the market is relatively sluggish now, and companies with too big physique can't sell for a price!"

"That's right!" Li Fuzhao said with a smile, "We in the Far East Group will welcome Mr. Lin's high-quality enterprises to go public at any time." ”

The listing of the new venture publishing company is only the first step, and the follow-up plan is to gradually spin off and list its non-core businesses.

The Hong Kong market is mainly chosen for listing, because although the Hong Kong market is relatively small now, there is a lot of room for development in the future, and the Hong Kong system is conducive to the financing development of listed companies. Even if the scale of financing at the beginning of the listing is not large, it is possible to raise funds on a large scale during the bull market by seizing the right time in the future. Financing a few more rounds of capital, the development speed is far faster than normal operation several times faster!

For example, the NASDAQ listing in the United States does not seem to have a high threshold, but most companies can only issue shares for the first time to raise funds, and if they want to issue additional shares in the future, the review difficulty is relatively high.

In particular, it is more difficult for non-U.S. companies to raise funds for the second or third time. Therefore, many Chinese investors initially regarded the United States as the first choice for listing, but later the companies listed in the United States regretted it, not only because Americans are not familiar with many Chinese companies, so they gave valuations much lower than those of their American counterparts. For example, a company doing the same business has a profit of $100 million for a listed company in the United States, and a listed company in China also has an annual profit of $100 million. However, the growth and brand of the U.S. company are more accepted by U.S. investors, so it is possible to give a valuation of $3 billion, while another Chinese company, although it has a certain brand awareness in the Chinese market, the U.S. investor is not a consumer of its products, so it may have the same performance or even better growth than its U.S. counterparts, but only has a market value of $1.5 billion. This kind of discrimination is quite common, not that there is racial discrimination in the market, but simply because the market really does not know about the company.

It is precisely for this reason that the core market of start-up publishing companies is Hong Kong, and in the future, even if they expand their business to the entire Chinese market, and even around the world. However, the Hong Kong market is certainly at the core. Local investors in Hong Kong may also be consumers, and by consuming the products of a listed company to conduct "grassroots research" to understand the company's market competitiveness from the products, in essence, this is a very simple research. Suppose a company's products are said to have a high market share, but investors cannot confirm the authenticity of the information they receive or whether the information is comprehensive. Then, it is necessary to verify that it is necessary to use the company's products by yourself, if it can really impress consumers and have certain advantages compared with the products of its peers, then the new promotional information may be true. Otherwise, a company's product feels bad, although it may not mean that its performance is fake, but at least, it can show that it is not trustworthy.

To put it simply, the financial reports disclosed by many companies in Hong Kong may not be true, because the supervision of the exchange and the Securities and Futures Commission is relatively nonsense, and only when the scam is completely exposed and causes huge damage to the market will investors realize what is going on. And many companies that are obviously deceived and disgusted, even if there is a hint of signs, but the Hong Kong Stock Exchange and the Securities and Futures Commission will not be too serious about getting to the bottom of it.

It is mainly up to investors to discover thousands of companies by themselves, and the need for self-discipline of listed companies. This mechanism, which is a free market that is more thorough than that of the United States, does not interfere with the government, so there are many problems.

The Hong Kong Securities and Futures Commission and the stock exchange opened the market to order the delisting of Lao Qian, which will take more than 30 years to come, but the clean-up is not too active. It can only be said that measures will be taken after it is discovered that it is indeed a money-making company, rather than a preconceived suspicion of a company and then an investigation.

This is so because Hong Kong's stock market boom is not based on local investors. Later, the scale of Hong Kong's financial market gradually expanded, mainly because of institutional investors. As an institutional investor, you have a large number of professional financial personnel, and you can exclude the vast majority of companies with problematic financial statements just by analyzing their financial statements.

The vast majority of scammers and scammers, the financial statements cannot be done seamlessly, and they can always judge whether their business is normal by comparing their financial statements. Moreover, even if some institutions issue some short-selling reports and analyze some companies with financial problems, they will be insulted by low-quality investment in the market, and they do not think that the fraudulent companies are the culprits that harm their losses, but that the institutions that expose the fraud are the main culprits.

Therefore, even if institutions have these high-quality short reports, they either short arbitrage based on their own analysis, or they sell such reports at a high price. You know, most of the value analysis reports are very cheap, after all, as long as you have imagination, and then based on the existing financial reports, no matter how low the quality can write a bunch of optimistic analysis reports, but most of these reports are worthless information garbage.

And well-founded short selling reports are often very expensive. Because, through a large number of financial analysis and comparison with the same industry, as well as the flow given by many financial institutions. It's like solving a case, clearing the fog little by little, and finding the answer close to the truth.

If half of the optimistic analysis report is close to the truth, it is very good, and most of it is the imagination of the people who reported it. Then, many short selling reports are mostly based on reality.

All in all, Hong Kong is institutionally protecting stronger companies and institutions, not vulnerable investors, and money can do whatever it wants, although not 100% correct, but under normal circumstances, money does do whatever it wants, and the law is not even biased in favor of the weak but in favor of the rich.

Lin Qi doesn't plan to learn that kind of trick of thousands of shares, after all, playing that kind of small way, how much money can you cheat? What Lin Qi wants to do is to raise funds in a dignified and upright manner, to make a big pattern, not only to simply ask for it, but also to win with ordinary small investors, as long as those small and medium-sized investors are not high-eyed and low-level speculation all day long, if they hold it for a long time, Lin Qi has a great certainty, so that investors who hold their own company's shares can get huge returns.