Chapter 141: Preparing to Start Stock Trading

December 9th was originally an ordinary day, but for the financial circles of Nanjing and even the entire country, it was of great significance. This day marked the establishment of Nanjing Securities Company, signaling the formalization of Nanjing's capital market and heralding the entry of the domestic economy into the modern economic era.

Nanjing Securities Company was located on Nanyang Avenue, not far from the Nanjing Municipal Committee and City Government. The plaza in front of the securities company was bustling with activity. Various prominent figures from Nanjing attended the inauguration ceremony, where speeches were made by Nanjing's Secretary of the Municipal Party Committee, Lu Xiong, and Mayor Chen Yunfei. The essence of their speeches was to express hope that the establishment of the securities company would contribute to Nanjing's development and open new opportunities for national reform and opening up.

After Lu Xiong and Chen Yunfei delivered their speeches, they unveiled the plaque for Nanjing Securities Company. The ceremony was marked by the sound of fireworks and the performance of dragon and lion dances. The atmosphere was festive, akin to a New Year celebration, and the inauguration ceremony concluded amidst this jubilant ambiance.

Following the ceremony, Lu Xiong and Chen Yunfei returned to the Municipal Committee and City Government offices. Zhou Ming and Du Peng congratulated Luo Han, saying, "Congratulations, Manager Luo, on becoming the first Vice President of the Securities Company. You are now the top figure in the Nanjing securities market!"

Facing Zhou Ming and Du Peng's congratulations, Luo Han responded with modesty, "Consultant Zhou, Young Master Du, please don't make fun of me. I don't deserve to be called the top figure in the Nanjing securities market in front of you. If anyone deserves that title, it should be Consultant Zhou. This position should rightfully belong to you."

"I'll pass on that. I just want to quietly make money and be a capitalist. This kind of work is better suited for you," Zhou Ming said.

Zhou Ming, Du Peng, and Luo Han walked into the securities company. The layout inside was similar to that of a bank. Although it was far from the real trading exchanges, it was adequate for the current pilot phase.

After touring the securities company, Luo Han hesitated and said to Zhou Ming, "Consultant Zhou, everything is ready for the securities company, and the government has issued many related regulations. The securities inspection team is also attached to the legal office. However, there are only two stocks listed for trading at the moment. Could that be too few?"

Zhou Ming understood Luo Han's concern. Currently, only two stocks were listed for trading in the securities company: Nanjing Development Bank and Jinpeng Industrial. This was a result of the combined efforts of the three of them. Nanjing Development Bank was self-explanatory, while Jinpeng Industrial was a newly formed joint-stock company created from integrating their real estate company and Nanjing Nightclub. As Hua Shao had pointed out, both the securities company and the listed stocks were essentially a solo act. Luo Han was worried that without more stocks, it would be difficult to activate the securities market and fulfill the city's expectations.

Zhou Ming patted Luo Han on the shoulder and said, "Don't worry. The capital market has a certain magic to it, especially at this time."

Luo Han looked at Zhou Ming, not entirely understanding what he meant. Zhou Ming continued, "Vice President Luo, before the securities company was established, I discussed with Mayor Chen and Director Zhang to temporarily not introduce the mechanisms for price limits on stocks."

"I understand that the price limit mechanism is to curb speculative behavior with stocks rising or falling sharply. But with only two companies listed, is there really any risk of speculation?" Luo Han questioned.

"That's why I say you're underestimating the magic of capital. Remember what a great figure from abroad once said? With an appropriate profit, capitalists become bold. With a 50% profit, they will take risks; with a 100% profit, they will trample on all laws; with a 300% profit, they will commit any crime, even risking death," Zhou Ming said. "I'm not saying that we Nanjing people are capitalists, but people's pursuit of profit is inherently the same."

Luo Han was skeptical of Zhou Ming's words. Zhou Ming didn't elaborate further, as despite being advanced for his time, his perspective was still limited compared to future insights.

The first day passed uneventfully. By the end of the day, the trading volume at the securities company was only a modest one million yuan. Compared to the hundreds of billions traded daily in later times, this volume was nearly negligible. In fact, most of the trading activity was driven by government officials' encouragement. There was hardly any spontaneous trading.

The next day, without government mandates, the trading volume plummeted to a dismal eight thousand yuan, despite Luo Han extending the trading hours. 

On the morning of the third day, when Zhou Ming and Du Peng came to the securities company to check the situation, Hua Shao arrived with the same company chairmen from their previous dinner.

"Young Master Du, Consultant Zhou, good morning. I heard that your trading volume was quite disappointing yesterday. Should I come to help you? I could buy a share or two, just to show my goodwill!" Hua Shao provocatively said.

Zhou Ming was uninterested in Hua Shao's antics. Hua Shao then addressed the company chairmen, "See? This is the so-called securities company, barely trading any shares. They're just putting on a show, and it's of no value. It's better to rely on yourselves rather than count on these guys to do anything useful."

Zheng Yi, Chairman of Ye An Shares, agreed with Hua Shao, "Hua Shao is absolutely right. Here, no one understands stocks. They think they can become stock experts just by visiting Port City. Their ambition to replicate foreign securities markets is unrealistic and likely to fail."

Wang Lian, Chairman of Yuanda Shares, added, "Yes! It's fortunate we didn't list our shares here. Otherwise, we'd be in trouble!"

Listening to these scathing remarks, Du Peng's temper flared, and he retorted, "Do you people even know how to speak properly? We've been working hard to build our own securities market, and you're not only offering no help but also mocking us. A bunch of shortsighted, petty individuals—what right do you have to criticize us?"

Hua Shao stepped forward and said, "Young Master Du, don't be so angry. They're just speaking the truth. Look at this so-called securities company; it's really a mess."

Sighing, Hua Shao continued, "Although I didn't grow up in the same high society as you, we both grew up in the Red Wall of Beijing. I advise you not to associate with unreliable people. Some are just scoundrels using you for their own gain. Don't fall for their schemes."

Zhou Ming told Hua Shao, "Hua Shao, it's your prerogative to target us, but stirring up discord is pointless."

"Stirring up discord?" Hua Shao sneered at Zhou Ming. "Consultant Zhou, you overestimate yourself. I'm just speaking plainly. I don't need to use such tactics on someone like you."

Du Peng said, "Hua Shao, who I choose to be friends with is my business. Age-wise, I'm not much younger than you. I have my discernment. Please, show some respect."

Hua Shao responded, "Is that so? Then I'll see just how discerning you are, Young Master Du. Don't let it be the case that this securities company collapses, and you end up taking the fall for it."

"You won't have to wait long to find out. We'll see in a few days," Zhou Ming said.

"It seems Consultant Zhou is quite confident!" Hua Shao said mockingly. "But I don't understand where this confidence comes from."

"Hua Shao, if you read more and understand the capital markets abroad, you'd know where my confidence comes from," Zhou Ming replied.

Hua Shao looked at Zhou Ming with a half-smile and said, "I'll see how long you can keep up this arrogance. By the way, I should let you know that the central government has been monitoring Nanjing's securities company. They're already aware of the poor performance and are discussing when to shut it down. I'm eager to see your expression when the company is ordered to close."

"You'll probably never see it," Zhou Ming said.

Hua Shao snorted and left with the four company chairmen. Watching them leave, Du Peng fumed, "That guy is too arrogant!"

On the other side, Luo Han expressed his concerns, "Consultant Zhou, if Hua Shao really tries to sabotage us and prevents other companies from joining, it will be very difficult for us to operate."

Zhou Ming reassured him, "Vice President Luo, don't worry. Didn't I tell you? At the start, stock trading is essentially a solo act by the lead player. But once the stocks become hot, there will be a flood of followers wanting to buy in. We might even struggle to accommodate everyone in our small trading hall."

Zhou Ming paused and added, "In fact, I believe that having no buyers now is beneficial. The longer the pressure, the more explosive the eventual release of energy."

Zhou Ming then asked Du Peng, "How are our preparations coming along?"

"The funds are all in place, including the five million Hong Kong dollars you transferred from Port City. We're ready to

 begin anytime," Du Peng replied.

"Okay! Then we can start stock trading!" Zhou Ming said. "The coming week will be extremely intense!"