Chapter 532: Preparation Before the Storm

Li Yueshi returned to Fushan to report to Wang Weidong that she went to the small book to inspect the export of second-hand cars.

"I went to the country of Xiaobenzi to talk to the president of Autorec in detail, and he welcomed us to buy second-hand cars in Xiaobenzi." Li Yueshi said.

Developed countries are now encouraging the export of waste household appliances, waste paper, waste plastics, and so on.

These things are cumbersome, they cause a lot of pollution in the process, and it is better to export them for money, and then they can be re-imported after they have been processed in poor countries.

When such garbage products are exported, those developed countries even reduce tariffs and subsidize them.

The same is true for second-hand cars, which are not far from being scrapped, and exports can not only generate income but also eliminate the pollution problem in the process of scrap steel smelting.

Now that Japanese steel companies are gradually reducing their steel smelting output, they have stakes in iron ore in Australia and Brazil, and they can make a lot of money by exporting iron ore to other countries.

"Autorec is able to export hundreds of cars every month, all of which have been rigorously tested and have absolutely no problems with performance. Now the stock is always maintained at about 1,000 vehicles, and if we purchase a large amount, they can temporarily increase the number of vehicles. Li Yueshi continued.

"I think of it this way, we can buy a batch of one-third of seven or eight thousand or even ten thousand dollars of high-end used cars. The remaining two-thirds are low-end cars of two thousand, or even more than a thousand dollars. Of course, dozens of second-hand motorcycles with large displacement will be imported! People in the great northern countries love this kind of thing! Wang Weidong said.

"I went to their depot to see the second-hand cars they have kept now, and the second-hand cars of more than 1,000 dollars are all cars with a mileage of more than 200,000 kilometers and have been purchased for more than 10 years. However, the performance is okay, and there is absolutely no problem with driving it for another two or three years! Li Yueshi said.

"That's enough, we don't make much money, and we will sell it to them at a ten-percent markup!" Wang Weidong said.

"Boss, when are you going to Japan?" Li Yueshi asked.

"It's already October, and the port of Vladivostok is about to freeze, so we can only wait until March next year." Wang Weidong replied.

After talking about this matter, Wang Weidong asked about the fluctuation of the stock price of Red Star Beer.

From the beginning of '96, China's stock market rose all the way to October, and the Shanghai Composite Index doubled.

Decision-makers felt the overheating of the stock market and began to suppress it.

Since October, the top management has successively issued the "Notice on Several Issues Concerning the Regulation of the Behavior of Listed Companies", "Measures for the Administration of Stock Exchanges", and "Notice on Resolutely Prohibiting Overdraft in Stock Issuance".

It's like a parent teaching a disobedient child a harsh punishment.

But I didn't expect that this time the child became disobedient and not as docile as before.

The Shanghai Composite Index fell by only 10% before turning around and continuing its upward gains.

"When the document was first issued, Red Star Beer fell by two or three points, but it has risen back in the past few days, and it has risen by 12% compared to the original stock price." Li Yueshi replied.

"Miss Li, don't take this matter as a trivial matter! The three documents issued by the top management this time did not achieve the purpose of extinguishing the fire in the stock market, and other measures must be introduced in the future until the stock market turns from hot to cold. Wang Weidong said.

Li Yueshi didn't quite understand what Wang Weidong said. She grew up on Hong Kong Island and went to England to study the free market.

Whether on Hong Kong Island or in the UK, there is generally no intervention in the rise and fall of the stock market, but rather a laissez-faire attitude.

"After you return to the Shanghai market, you have to calculate immediately whether there will be a danger of liquidation if the stock price of Red Star Beer falls by 50%." Wang Weidong said.

If the price of the stock falls significantly, then the value of the shares pledged at the bank will also fall significantly.

In order to prevent themselves from losing money, banks will ask companies to increase their collateral. However, if the value of all the shares in the hands of the shareholders of the listed company who pledged the shares is less than the bank loan, the bank can only take coercive measures, and the shareholders will lose control of the company.

"Boss, according to what you said, predict that the stock price will fall by 50% in advance for a stress test, which is too high, I think 20% or 30% is enough." Li Yueshi said.

"No, at least 50%! We should prepare sufficient funds in advance, and when the stock price falls sharply, we will enter the market to buy the shares of Red Star Beer and pull up the stock price. Wang Weidong said.

"Okay, I'll do it when I get back." Li Yueshi said reluctantly.

"Miss Li, not only Red Star Beer, but also Sunning, which is listed on Hong Kong Island, will also undergo such a stress test." Wang Weidong further demanded.

"Also stress test by 50%?" Li Yueshi asked in surprise.

"Yes, be prepared!" Wang Weidong replied dryly.

"Boss, you're too careful, aren't you? How can the price of a stock drop so much? Li Yueshi said.

"Be careful not to die, if you are not careful, you will not die this time, and you will definitely die next time! You must be meticulous in doing what I say. Wang Weidong instructed.

After sending Li Yueshi away, Wang Weidong called Song Yu again.

"Xiaoyu, how is the matter I asked you to inquire about?" Wang Weidong asked.

"The effect of the document issued this time is not obvious, and there will be policies at the end of October at the earliest. How can the power of capital be an adversary of the state? In the end, you will definitely lose! Now the heat of the stock market will definitely be suppressed! Song Yu said.

"I really hope that the document issued in October has already worked, and it is better for the stock market to remain moderate now, otherwise the policies introduced by the top management will only be more and more fierce in the future!" Wang Weidong said.

"Of course, if Tai Chi is not good, then use the strong Vajra palm, if the Vajra palm is not good, then use the Seven Wounds Boxing!" Song Yu said on the phone.

Li Yueshi didn't understand, but Wang Weidong and Song Yu fully understood that in this country, power will never bow to capital.

Song Yu hung up Wang Weidong's phone, then walked out of the peony garden and got into the car and drove to the city.

This time he went to the peony garden to see the progress of the construction. The 105 villas have reached the end of the handover, and the other villas only exist on the drawings, Wang Weidong, Song Yu, Ou Xiaoyang, they decided to push back the construction period of the peony garden as much as possible, and the longer the time, the better.

When Song Yu drove past the gate of the dance academy in a car, he couldn't help but turn his head and glance at the gate.

Before partnering with Wang Wei and Xiaoyang in Eastern Europe, Song Yu, a little bee, lingered near the dance academy.

Three or four young and beautiful girls passed by the car, and their crisp laughter was like silver bells.

One of the girls had shawl hair, big bright eyes, and an innocent smile on her snow-white face.

Song Yu couldn't help but step on the brakes and look back, he said to himself: "It's really beautiful!" ”

(End of chapter)