raknovel Chapter 105 The Old Dog Who Came to the Door Gets Bitten
Chapter 105 The Old Dog Who Came to the Door Gets Bitten
The last trading day of February!
The chill of tight liquidity has finally reached the very bottom, and only when belatedly realizing it have the stock market investors fully awakened, they were already frozen stiff and unable to move.
The Hang Seng Index stood there, overwhelmed by a deluge of sell orders that crushed buy orders. Countless pending orders propped up a false sense of prosperity, making the index seem meaningless at this moment.
With only a few transactions being completed each day, Chen Guanjiang simply suspended Kowloon Club from trading and began to address internal issues first.
Looking at the thousands of bewildered faces in the trading hall, Chen Guanjiang said in an unusually cold tone, "Former chairman Chen Pufen illegally approved a large number of brokerage licenses..."
As soon as he finished speaking, whispers arose in the trading hall.
Chen Guanjiang's next words caused an even bigger uproar: "Of the 1037 brokerage licenses approved so far, 737 have been revoked, leaving 300..."
"300? Not even half."
"Isn't this too much recycling? It will affect stock trading!"
"This is utter chaos!"
“…………”
Even before the "Four Clubs Era," the Hong Kong Club had only 60 brokerage licenses, which had become the foundation for the family's succession and they would never give them up.
Unable to obtain a brokerage license, Li Fuzhao took a different approach and directly established an exchange, thus initiating the chaotic "Four Exchanges Era" and becoming the trigger for this stock market crash.
In fact!
One exchange with 60 brokerage licenses, allowing only Englishmen and highly educated Chinese to trade stocks, is sufficient.
However, to expand stock trading to a level that everyone can participate in, 60 brokerage licenses are far from enough; 300 brokerage licenses would be sufficient to meet all stock trading needs in Hong Kong.
In fact, Chen Guanjiang believes that 300 brokerage licenses are too many, and the 2.5% commission for stock brokers is far too high.
The American NASDAQ completed its electronic securities trading in 1971, using computer and telecommunications technology to achieve electronic pricing and stock trading.
Electronic quotes are clear at a glance, including the number of pending orders following the quote. Both buyers and sellers know at what price the orders will be executed, rather than relying on what the brokerage firm says.
Not only has the practice of handwritten quotes on blackboards without specifying the number of pending orders been eliminated, allowing brokerages to arbitrarily mislead clients about transaction prices, it has also significantly reduced transaction costs.
It can even break the limitations of time and space, and participate in and refer to changes in global securities markets.
Increase market transparency by disclosing real-time transaction information and reducing the adverse effects of information asymmetry.
Brokerage firms charge commissions as high as 2.5%!
Services include: blackboard pricing, margin financing, fractional share registration, self-regulation, and settlement and taxation.
But what's the reality?
Only a very small number of brokerage firms offer all of the above services; the vast majority of brokerage firms conceal information such as price quotes, illegal financing, fractional share trading, embezzlement, and non-compliance with registration requirements.
How can brokerage firms charge a high commission of 2.5% if they operate in this way?
The main culprit behind this stock market crash was the large-scale opening up of financing to foreign capital. The fact that the four commissions promoted the listing of a large number of unqualified companies was also an accomplice. Brokerage firms' illegal operations were equally to blame.
By cracking down on illegal brokerage firms, eliminating middlemen who profit from price differences, and normalizing and making stock trading more transparent, Chan Kwun-kong, as the president of the Kowloon Board of Directors, has made significant contributions to the Hong Kong stock market.
What price will the Kowloon Club use to buy back license plates?
"Yes, what's the price? I applied for the license with a loan."
“…………”
Looking at the commotion below, Chen Guanjiang coldly said, "Whatever price you bid, Kowloon will buy it back at the same price."
"Impossible! Don't even think about it! I disagree!"
"I refuse to sell the license without HK$60."
"Trying to forcibly take it back? You'd better be prepared to face a lawsuit!"
“…………”
For powerful and well-connected brokerage firms like Doc Rivers, Jardine Fleming, and Rothschild & Co., any of the four exchanges would proactively offer them a license.
However, most brokerage firms lack the resources to engage in stock trading on the exchange; they can only apply for a brokerage license from the exchange itself.
The Kowloon Club's inaugural membership fee is HK$5!
The HK$5 fee is not only a license fee but also a security deposit. If the brokerage firm mishandles the matter, the exchange has the right to confiscate the security deposit.
Of course, the HK$5 was just held in Kowloon Club's account. Whether they could actually apply for a brokerage license still depended on Chen Pufen's connections, which is why brokerage licenses were being speculated on for HK$30.
The extra HK$25 did not end up in the Kowloon Club's account; it naturally flowed into Chen Pufen's personal account through various channels.
now.
If Chan Kwun-kong wants to take back the brokerage license, even someone with a brain should understand that it's impossible to refund the premium. How can they accept losing HK$25 out of thin air?
After they finished arguing, Chen Guanjiang chuckled and said, "I'm not discussing this with you, I'm informing you! You certainly have the right to sue me, but I also have the right to sue you."
The trading hall fell into a deathly silence.
The Kowloon Club possesses all historical transaction records since its inception. Once the accounts are checked, their illegal operations will be immediately exposed, and they will not only face the revocation of their brokerage licenses but also imprisonment.
Including Wardore, Jardine Fleming, and Rothschild & Co., every brokerage firm—not one of them—dares to say they have a clean record.
However, the law does not punish the masses.
The Hong Kong government will not shut down all brokerage firms, but only if the stock exchange does not expose their secrets.
With the stock market crash imminent, investors will inevitably lose control of their emotions. If the exchange exposes the inside story of illegal operations, they will become tools for the Hong Kong government to use to vent the anger of investors.
"Chairman Chen! How about 15? I applied for the license with a loan. If you take it away like this, I'm doomed..."
"I have elderly parents to support and young children to raise. Please, have mercy and give me a way to survive. Just return the 17 yuan to me..."
"I really didn't earn that much money! Giving back 5 is worse than just killing me!"
“…………”
Those who plead poverty, play the victim, or resort to coercion simply cannot accept this outcome, because most people used the money to purchase brokerage licenses through various mortgage loans.
The license is gone, but the loan is still there. The bank doesn't care whether they have a license or not. If they can't repay the loan, they will only take away their collateral, and they will go bankrupt and lose everything, just like those stock investors.
"What does this have to do with me?"
Chen Guanjiang deliberately steered the conversation, saying, "I didn't sell you the license plate. Go find whoever sold it to you!"
Li Fuzhao and Hu Hanhui, who were helping to keep things under control, were speechless. This guy never missed an opportunity to take down Chen Pufen.
At an internal meeting calling on the Hong Kong government to intervene in the market, the banking syndicate and various stock exchanges were coerced into jointly filing a lawsuit against Chan Po-fan.
Now, the scandal has ignited a brokerage firm, leading to the bankruptcy of hundreds of people and creating a deficit of at least HK$100 million, which is blamed on Chan Po-fan.
Chen Pufen is likely to be very busy from now on; troubles will keep piling up and he'll be getting a lot of pain.
These people usually don't dare to attack Chen Pufen, but if the bank forces them to take the house, that's a different story.
"Chairman Chen, no! I... I didn't buy my license through the Kowloon Club."
"Mine too! I bought it through Longxing Finance, but the company has already been deregistered."
“…………”
Kowloon Society is, after all, a company, so Chen Pufen would certainly not use a personal account to receive payments; he would inevitably use a shell company to slowly extract the money.
Moreover, some licenses were not obtained through Chen Pufen, but were purchased at a higher price from other license speculators. How should this mess be settled?
After thinking for a moment, Chen Guanjiang said, "If you have the ability to get your money back, the Kowloon Society can release the transaction information and even provide legal aid if necessary. If you don't have the ability, there's nothing I can do. Meeting adjourned!"
By returning the HK$5 that served as both the founding license and the deposit, Chen Guanjiang believed he had already done more than enough.
Based solely on their illegal stock trading operations, Chen Guanjiang was able to reduce their margin deposits to zero and forcibly revoke their licenses.
After all, what Chen Guanjiang should do is save the market, divert the trouble, and lead the Kowloon Club to grow stronger, not offend all the agents with unknown backgrounds all at once.
Retaining 300 licenses is a way to gradually screen applicants; those with ability, background, and resources can stay, while those with none of these will be eliminated.
…………
Kowloon Club, General Manager's Office.
Li Fuzhao said with no small amount of envy, "Ah Jiang, you're really decisive! You cut two-thirds of the agents without hesitation!"
The Far East Club and the Gold and Silver Club also wanted to cut some brokers, but they couldn't, not because they were unwilling.
The business is large and complex, and the establishment of Far East Club and Gold and Silver Club required the support of certain individuals. The brokerage license is a feast of dividing up the pie.
People in the arena involuntarily.
Some brokers, driven by personal gain, have caused chaos in stock trading, which is detrimental to the exchange, but the chairman is unable to address the issue for various reasons.
Chen Guanjiang currently does not have overly complicated interpersonal relationships, so he can certainly carry out sweeping reforms, which is something that the Far East Association and the Gold and Silver Association are destined to be unable to do in the short term.
"A swift and decisive move!"
Chen Guanjiang said with a forced smile, "I'll have to trouble Uncle Zhao and Uncle Hui to help me determine who can stay and who can be dismissed."
"Of course, of course..."
When Li Fuzhao was six years old, his father carried him to and from the Hong Kong Stock Exchange, where he learned to trade stocks. He is a professional in business administration and a certified public accountant, and has been active in the Hong Kong stock market for many years.
Hu Hanhui obtained a brokerage license and established Yongfu Securities Company before Li Fuzhao, and later used it as a springboard to establish Jinyinhui.
The two are the presidents of the exchange and have an excellent understanding of brokerage firms, making them the perfect people to help audit poorly performing brokerage firms.
Of course, the list will be reviewed again by the banking syndicate and the Securities and Futures Commission, not to follow their opinions, but simply to go through the motions.
After all, Li Fuzhao and Hu Hanhui didn't want to offend anyone, and those who were qualified to obtain brokerage licenses must have some background. If necessary, Chen Guanjiang would have to step in and remove them.
"Mad Dog! I know you're in there, get out here!"
"You said you wouldn't bother me if I handed over the Kowloon Society..."
"Chen Guanjiang! You treacherous scoundrel, come out here..."
“…………”
Chen Pufen was stopped by the bodyguards and kept shouting and cursing outside the door, which made him seem very rude. You could tell that his anger was genuine, or it might be a tactic.
"Let him come over!"
Chen Guanjiang disregarded the presence of the two presidents and let the former president in.
Ignoring the two association presidents watching the show, Chen Pufen glared at Chen Guanjiang with bloodshot eyes and said viciously, "Crazy dog, did you leak information about that mother and child to the Hong Kong government?"
"How could that be? You're my uncle!"
Chen Guanjiang poured him a full cup of tea, chuckled, and said, "I swear on my life, even if you lied to me about applying seal oil, you'd still be slouch afterward. Chen's son doesn't lie to Uncle Chen!"
“…………”
Upon hearing this, Chen Pu knew that the information must have come from the mad dog.
That woman was not Chen Dacai's wife, and that child was just an illegitimate child. Even he didn't know about it for so many years, so how could Chen Guanjiang know?
Moreover, he only mentioned the mother and child, without saying anything else, yet he's already confessed without being asked.
Chen Pufen barely managed to refrain from splashing tea on Chen Guanjiang's face, but he didn't generously accept the teacup either. He gritted his teeth and said, "Do you have any other ways to mess with me?"
"Absolutely not!"
“…………”
After the internal meeting to lobby the Hong Kong government to rescue the market ended that day, someone revealed the contents of the meeting to him, including Chan Kwun-kong's suggestion to jointly file a complaint against him.
At today's Kowloon Club meeting on market rescue and rectification, someone also revealed relevant information to him. You can't believe a single word that this mad dog says.
"You're very good, very good..."
Chen Pu was powerless to stop this blatant act of thuggery.
Chen Guanjiang did hand over the evidence against Chen Dacai and the antenna stock, but deliberately concealed the mother and son that Chen Dacai had hidden, which became the sharp blade that nailed him to death.
Now, the mother and son have been reported to both the Hong Kong government and the Hunter family, and both sides are vying for the HK$300 million in illicit funds that were transferred out. The question of who Galicia Bank should transfer the money to has become a major problem.
The Hong Kong government needs this money to fill the hole in the antenna stock, and the Hunt family also needs this money to make up for their losses.
While contacting the British Commonwealth, they also contacted the United States. If nothing unexpected happens, the money will eventually be used to compensate the Hunter family, since Latin America is America's backyard.
The embezzled money went out, but the hole remained. Even if the mother and child were extradited back and Chen Dacai was exterminated, the hole still couldn't be filled because there was no money.
but…
Chairman Chen Dacai is penniless, while founder Chen Pufen is wealthy. By thoroughly investigating Chen Dacai and that woman, we can eventually find clues related to them.
"Wait until I catch my breath, you wait for me." Chen Pu finished his tea, suppressing his anger.
Although the two sides had been locked in a life-or-death struggle since the Kowloon Club was seized, they did not expect that Chan Kwun-kong's three-pronged attack would come so quickly and fiercely that they were almost bitten to death by this mad dog while struggling to cope.
Once I catch my breath, I'll play with this mad dog for a while and settle all the scores with him, including the grudges from losing the Kowloon Club.
"Why?"
Chen Guanjiang was quite surprised and said, "Uncle Chen, are your methods really that amazing? You were able to recover even after that?"
"No problem, wait for me."
Having spent more than half his life in Hong Kong, Chen Pufen believed he had a deep understanding of the British and thought that paying some price wouldn't necessarily lead to his complete elimination.
"Uncle Chen is indeed as strong as ever. It seems I should give him a boost." Chen Guanjiang refilled his teacup.
"Alright! Come on then! Talk is cheap!"
"I definitely won't let Uncle Chen down!"
“…………”
Li Fuzhao and Hu Hanhui exchanged a glance, then raised their glasses in tacit agreement, knowing they were in for a good show.