I'm back in 1990

Chapter 83: The Debate

They had admired the moon, recited poems, and finished eating everything they brought. The six of them patted their bottoms and decided it was time to return to their lodgings, since this place, no matter how nice, was not their own territory.

Huang Xiaochuan and Ding Yi walked at the back, discussing the stock issue that they had debated that afternoon.

Huang Xiaochuan knew far more about this issue than Ding Yi and Wu Duo.

In fact, Huaxia Securities started by learning through trial and error. Capital markets in other countries around the world have been developing for hundreds of years, while the development of China's stock market has only just begun.

Therefore, the Chinese stock market has grown amidst various discussions and debates, from the nature of the stock market to its role.

From stock market operation procedures to the emergence of corresponding regulations, these issues have all sparked discussion and controversy.

The development of China's stock market over the next few decades could fill a million-word book. Establishing a comprehensive and sound financial securities system was the country's original vision and plan. However, since we started the securities industry from scratch, we could only learn from some Western experiences. But when we put these experiences into practice, we found that they were not suitable for China's national conditions.

Therefore, in the development of the Chinese stock market, there will always be various problems. Discovering and solving these problems is the purpose of reform.

It is precisely because of these imperfect regulations that some unscrupulous people have taken advantage of the loopholes to manipulate the stock market and exploit investors.

Perhaps influenced by the afternoon's debate and the alcohol of the evening, Ding Yi, a staunch supporter of the country's development of the securities industry, talked incessantly to Huang Xiaochuan about his many views and opinions.

"Xiao Chuan, do you know? Our country has been poor for too long. If we want to develop, we not only need to attract foreign investment, but also utilize private capital to invest in and develop our domestic enterprises. If you're afraid of everything, you might as well stay home and take care of the kids."

"To be honest, my uncle was in charge of the share reform of several companies listed in Shanghai, so I know much more about these stocks than Wu Duo does."

"Putting aside other things, at least this is a new attempt, seeking a new direction for development for many Chinese enterprises."

"Xiao Chuan, do you know? Many of our domestic enterprises are teetering on the brink of collapse due to the impact of foreign products. My dad says this is the growing pain that comes with transitioning from a planned economy to a market economy."

"But I disagree with that view. Why should there be growing pains? Are our domestic companies really that worthless? Not necessarily, right?"

"Therefore, I support the shareholding system reform. This is the only way to inject new vitality into enterprises. With funds, they can do more and better compete with outsiders."

Ding Yi's words tonight made Huang Xiaochuan look at him with new respect.

Although he is a student, he cares deeply about his country and the world; this is the kind of ambitious young people in China. However, Huang Xiaochuan also discovered that this guy's family background is extraordinary; the things he talks about are things that ordinary people would never have access to.

Huang Xiaochuan believes that Ding Yi still suffers from the problem of a young person's incomplete perspective. Admittedly, according to Ding Yi's idea, it is entirely correct for a company to raise the funds needed for its development by issuing stocks.

However, he forgot an important factor.

According to Huang Xiaochuan, Yanzhong Industrial and Feile Acoustics, two of the old eight listed companies, basically had no real business. Did these companies really use the funds they raised to develop their businesses?

The idea was good, but later on, many investors did not take the development of enterprises as their responsibility. Instead, they were keen on making money from the stock market and harming investors. There are countless reports of this in later generations.

But these things haven't happened yet! Since that's the case, why not take this opportunity to experience the money-making power of the old-fashioned stock market? Anyway, it's raining and I'm just killing kids, so I might as well do something else.

After Huang Xiaochuan returned to his dormitory, the latest chapter of "1990 I'm Back" was released! He washed up, went to bed, and started calculating his current financial situation. Including the 5,000 yuan in cash given to him by his uncle for entertainment expenses, he currently had about 24,000 yuan.

This amount of money should be enough to buy some stocks, but Huang Xiaochuan doesn't know what the current prices of these stocks are.

But being a man of action, he decided to go to the Jing'an stock brokerage tomorrow to check out the market. After making his decision, he turned off the lights and went to sleep, completely ignoring the displeasure of Hao Zhidu and Zhang Gaolei, who were playing chess. But what could Huang Xiaochuan do? He was the light-keeper of dormitory 222!

Huang Xiaochuan also had a dream in which Sister Xiang gently stroked his face. It was so nice! But why was the pressure getting stronger and stronger?

"Huang Xiaochuan, Huang Xiaochuan, get up quickly!" Wu Duo kept patting Huang Xiaochuan's face, urging him to get up.

Huang Xiaochuan rubbed his sleepy eyes and realized that the person who slapped his face was Wu Duo. He then complained, "Squad leader, what are you doing so early in the morning? You're up earlier than the chickens, are you some kind of landlord Huang Shiren?"

"Didn't you tell me last night when we were admiring the moon that we'd go for a run together this morning?"

Huang Xiaochuan slapped his forehead: "Damn, I completely forgot."

I was so focused on stocks last night that I completely forgot about this.

They got up, washed up, and changed clothes in one go. The two of them went to the track and ran ten laps, which was exactly four kilometers.

While running, Wu Duo, like Ding Yi, brought up the topic of yesterday's debate again.

That means he still opposes the establishment of a national financial market. He believes that stocks are a capitalist thing and should be avoided at all costs.

"Xiao Chuan, do you know? Stocks are like Pandora's box. Once you open it, disaster may be waiting for us."

Huang Xiaochuan knew that many people shared Wu Duo's ideas, but their thoughts would change as the financial market matured.

Therefore, Huang Xiaochuan said: "In fact, there are many benefits for companies seeking to go public, and it is also of great benefit to my country's economic reform."

"This pilot program has at least confirmed that funds can be raised through market financing channels to solve the problems of business difficulties."

"You know without me saying it, how many of our companies are now stuck with unsold products due to outdated industrial technology, and they have to rely on loans from the government to pay wages."

"Is this a sustainable solution? Are we just going to watch these businesses slowly go bankrupt? What will happen to the hundreds of millions of industrial workers?"

Huang Xiaochuan's series of questions left Wu Duo deep in thought, unable to answer.

In this era, university education connects theory with practice. When explaining textbook content, teachers often use current or past events as case studies to encourage students to think independently about the problems involved and how they would solve them.

Therefore, it is common for students to argue about various issues in classrooms or dormitories. This shows that each student is thinking seriously and has their own independent way of thinking.

Huang Xiaochuan's words made Wu Duo fall into deep thought. Yes, without financial reform, how could the predicament of enterprises be broken? The country has been impoverished for too long, and it doesn't have the capacity to support all enterprises now; it can only rely on pilot programs to find a way out for these enterprises.

Huang Xiaochuan continued, "Currently, this is an experiment to see if companies can raise funds through stock issuance to upgrade their industrial technology, and how well the public accepts stocks. How will we know if it's feasible without trying? As it stands, the feasibility is quite high. You'll see, the next step will be to increase the amount of companies raising funds through stock listings, and more companies will join in."

Having finished talking, the only goal left for this morning was the last lap, and the two of them maintained a steady pace to complete the final lap.