Chapter 718
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It was not Zhang Ruiqiang who had looked for Li Mingde. If Zhang Ruiqiang wanted Bing City Machinery Company to be listed, he would not look for Li Mingde. This was because he knew who makes the decisions at this company. It was Feng Yu.
The one who had looked for Li Mingde was Bing City Government Secretary. He needed credits for his promotion. He knew Feng Yu was the main shareholder of the Machinery Company and was the overall in charge.
But when the Secretary called Feng Yu, he knew that Feng Yu was unwilling to get this company listed. So, he looked for Li Mingde, hoping that Li Mingde could persuade Feng Yu. He knew Feng Yu trusted Li Mingde a lot. If not, Feng Yu would also not ask Li Mingde to retire early from the government service and rehired him into the company. Li Mingde was even given shares of the company.
The Secretary also felt that Zhang Ruiqiang would not stop this as the whole Bing City Government will get the credit if this company was listed. If the Secretary got promoted, Zhang Ruiqiang would be able to take over his position. Zhang Ruiqiang had performed well in the past two years and will have high hopes of taking over his position. Moreover, he also had support from the Provincial Government no. 1.
There were also rumors that the Provincial Government No. 1 will be retiring to the backend at the end of the year. At that time, Zhang Ruiqiang will lose his strongest backing in the Provincial Government. Zhang Ruiqiang will not want to be Bing City Government’s Party Secretary? In government service, one wrong step will mean failure.
Li Mingde dare not to offend the Party Secretary, and he could only ask Feng Yu for help.
Tsk. Feng Yu knew that getting listed was the norm for many companies to raise funds. It was better than getting loans from banks and could increase the company’s value effectively.
But Feng Yu does not want to get listed. This was because once the company was listed, his shares in Bing City Machinery Company would be diluted. For the company to be listed, at least 25% of the total shares had to be offered to the public. Then, Feng Yu and his father would be less than 50%.
Of course, after the company was listed, the share prices will rise, and the shares will be more valuable. But that’s only for people who wanted to sell their shares. Feng Yu had no intention of selling his shares.
In Feng Yu’s previous life, many big companies wanted to be listed was not because they want to raise funds. It was because they were invested by venture capital. How does a venture capitalist make money? They depend on selling the shares of the company after they got listed.
The share prices of some good performing companies or companies favored by investors will rise after they got listed. The Venture capitalist could sell off their shares during that period. Sometimes, they might get more than 20 times the returns.
Also, Venture capital normally owns preferred stocks. They do not have voting rights but will get dividends. Also, they get priority in selling their shares.
Some companies got listed was to lower their debt ratio. Many companies had lots of debts, but could still get listed. Once listed, they would be able to repay their debts.
Of course, there was also a great benefit for getting listed now. There were not a lot of listed companies on the stock exchange now. If the company were listed, it would be able to increase its brand awareness and image. But Bing City Machinery Company does not need this. Since Bing City Machinery Company launched its motorcycles, the company had become the leading brand throughout China. All their products were selling like hotcakes.
Many companies that were doing well, especially those companies that were owned by an individual, will choose not to be listed. For instance, Shun Feng Logistics. In Feng Yu’s previous life, many people had tried to get this company listed. They told the owner that he could make much more if the company were listed. But the owner refused as he does not lack money.
Another disadvantage of getting listed was the finances had to be disclosed to the public. This was not because Bing City Machinery Company have any debts or fake accounting. It was because Feng Yu does not want his name to appear in the reports.
Although Feng Yu could not hide his wealth completely, he still prefers to keep a low profile and make money silently.
Feng Yu had wanted to set up a holding company in Hong Kong and then transfer all his shares in the various companies to this Hong Kong holding company. But it was too troublesome. Feng Yu must cough out a large amount to do this.
Current, Hong Kong was still not considered part of China. If Feng Yu were to do this, people would think that he is transferring his assets overseas. Feng Yu had also asked Master Lu for help, but Master Lu could not do anything about this unless Feng Yu sold off all his shares at the market price. If not, the Central Government will step in and stop the transactions.
If this were after 1997, the return of Hong Kong, it would be easier for Feng Yu to set up a holding company in Hong Kong.
Feng Yu thought about this and decided to wait. Also, this was not the right time to get his companies listed. Especially in the Chinese stock exchange. The stock market of China had just started T+1. This was to prevent the manipulation of the stock market.
But this year, China’s stock market was unstable. China had issued a lot of treasury bonds, and many security companies start to manipulate the market. These two years, the market would be bearish, and investors do not have confidence. If a company were to be listed now, the share prices might even fall.
Of course, if Feng Yu really wanted to manipulate the market, no one would be his match. His technical knowledge and financial backings were the top in China.
But Feng Yu does not want to do this. He does not want to get into trouble. Even if he could cover everything up, others might find out in the future and labeled him as a market manipulator. He will be guilty of cheating all other investors of their hard-earned money.
After the company was listed, the management had to do a lot more. Feng Yu felt that Li Mingde and the rest still do not have what it takes to manage a listed company. Although these people could accept new things, their speed and ability to accept new things were not fast enough.
Also, the cost of getting listed was very high. The company needs to hire people to audit the company, hire lawyers, etc. The audit of the company would be more stringent, and every tiny detail of the company had to be audited. It would be more troublesome if Feng Yu were to transfer all his companies shares to a holding company in Hong Kong.
There were pros and cons for a company to be listed. Feng Yu thought about it and felt this was not the time for him to get his companies to be listed.
Feng Yu told Li Mingde to fend off those government officials. He had given Li Mingde some shares of the company, and this was his responsibility. Feng Yu would never get his company listed for the government officials to claim credits.
Especially…… Feng Yu does not know Bing City’s Party Secretary.
Feng Yu told Li Mingde to inform him if he really could not settle this. He will go back to settle this problem.
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It was not Zhang Ruiqiang who had looked for Li Mingde. If Zhang Ruiqiang wanted Bing City Machinery Company to be listed, he would not look for Li Mingde. This was because he knew who makes the decisions at this company. It was Feng Yu.
The one who had looked for Li Mingde was Bing City Government Secretary. He needed credits for his promotion. He knew Feng Yu was the main shareholder of the Machinery Company and was the overall in charge.
But when the Secretary called Feng Yu, he knew that Feng Yu was unwilling to get this company listed. So, he looked for Li Mingde, hoping that Li Mingde could persuade Feng Yu. He knew Feng Yu trusted Li Mingde a lot. If not, Feng Yu would also not ask Li Mingde to retire early from the government service and rehired him into the company. Li Mingde was even given shares of the company.
The Secretary also felt that Zhang Ruiqiang would not stop this as the whole Bing City Government will get the credit if this company was listed. If the Secretary got promoted, Zhang Ruiqiang would be able to take over his position. Zhang Ruiqiang had performed well in the past two years and will have high hopes of taking over his position. Moreover, he also had support from the Provincial Government no. 1.
There were also rumors that the Provincial Government No. 1 will be retiring to the backend at the end of the year. At that time, Zhang Ruiqiang will lose his strongest backing in the Provincial Government. Zhang Ruiqiang will not want to be Bing City Government’s Party Secretary? In government service, one wrong step will mean failure.
Li Mingde dare not to offend the Party Secretary, and he could only ask Feng Yu for help.
Tsk. Feng Yu knew that getting listed was the norm for many companies to raise funds. It was better than getting loans from banks and could increase the company’s value effectively.
But Feng Yu does not want to get listed. This was because once the company was listed, his shares in Bing City Machinery Company would be diluted. For the company to be listed, at least 25% of the total shares had to be offered to the public. Then, Feng Yu and his father would be less than 50%.
Of course, after the company was listed, the share prices will rise, and the shares will be more valuable. But that’s only for people who wanted to sell their shares. Feng Yu had no intention of selling his shares.
In Feng Yu’s previous life, many big companies wanted to be listed was not because they want to raise funds. It was because they were invested by venture capital. How does a venture capitalist make money? They depend on selling the shares of the company after they got listed.
The share prices of some good performing companies or companies favored by investors will rise after they got listed. The Venture capitalist could sell off their shares during that period. Sometimes, they might get more than 20 times the returns.
Also, Venture capital normally owns preferred stocks. They do not have voting rights but will get dividends. Also, they get priority in selling their shares.
Some companies got listed was to lower their debt ratio. Many companies had lots of debts, but could still get listed. Once listed, they would be able to repay their debts.
Of course, there was also a great benefit for getting listed now. There were not a lot of listed companies on the stock exchange now. If the company were listed, it would be able to increase its brand awareness and image. But Bing City Machinery Company does not need this. Since Bing City Machinery Company launched its motorcycles, the company had become the leading brand throughout China. All their products were selling like hotcakes.
Many companies that were doing well, especially those companies that were owned by an individual, will choose not to be listed. For instance, Shun Feng Logistics. In Feng Yu’s previous life, many people had tried to get this company listed. They told the owner that he could make much more if the company were listed. But the owner refused as he does not lack money.
Another disadvantage of getting listed was the finances had to be disclosed to the public. This was not because Bing City Machinery Company have any debts or fake accounting. It was because Feng Yu does not want his name to appear in the reports.
Although Feng Yu could not hide his wealth completely, he still prefers to keep a low profile and make money silently.
Feng Yu had wanted to set up a holding company in Hong Kong and then transfer all his shares in the various companies to this Hong Kong holding company. But it was too troublesome. Feng Yu must cough out a large amount to do this.
Current, Hong Kong was still not considered part of China. If Feng Yu were to do this, people would think that he is transferring his assets overseas. Feng Yu had also asked Master Lu for help, but Master Lu could not do anything about this unless Feng Yu sold off all his shares at the market price. If not, the Central Government will step in and stop the transactions.
If this were after 1997, the return of Hong Kong, it would be easier for Feng Yu to set up a holding company in Hong Kong.
Feng Yu thought about this and decided to wait. Also, this was not the right time to get his companies listed. Especially in the Chinese stock exchange. The stock market of China had just started T+1. This was to prevent the manipulation of the stock market.
But this year, China’s stock market was unstable. China had issued a lot of treasury bonds, and many security companies start to manipulate the market. These two years, the market would be bearish, and investors do not have confidence. If a company were to be listed now, the share prices might even fall.
Of course, if Feng Yu really wanted to manipulate the market, no one would be his match. His technical knowledge and financial backings were the top in China.
But Feng Yu does not want to do this. He does not want to get into trouble. Even if he could cover everything up, others might find out in the future and labeled him as a market manipulator. He will be guilty of cheating all other investors of their hard-earned money.
After the company was listed, the management had to do a lot more. Feng Yu felt that Li Mingde and the rest still do not have what it takes to manage a listed company. Although these people could accept new things, their speed and ability to accept new things were not fast enough.
Also, the cost of getting listed was very high. The company needs to hire people to audit the company, hire lawyers, etc. The audit of the company would be more stringent, and every tiny detail of the company had to be audited. It would be more troublesome if Feng Yu were to transfer all his companies shares to a holding company in Hong Kong.
There were pros and cons for a company to be listed. Feng Yu thought about it and felt this was not the time for him to get his companies to be listed.
Feng Yu told Li Mingde to fend off those government officials. He had given Li Mingde some shares of the company, and this was his responsibility. Feng Yu would never get his company listed for the government officials to claim credits.
Especially…… Feng Yu does not know Bing City’s Party Secretary.
Feng Yu told Li Mingde to inform him if he really could not settle this. He will go back to settle this problem.
It was not Zhang Ruiqiang who had looked for Li Mingde. If Zhang Ruiqiang wanted Bing City Machinery Company to be listed, he would not look for Li Mingde. This was because he knew who makes the decisions at this company. It was Feng Yu.The one who had looked for Li Mingde was Bing City Government Secretary. He needed credits for his promotion. He knew Feng Yu was the main shareholder of the Machinery Company and was the overall in charge.But when the Secretary called Feng Yu, he knew that Feng Yu was unwilling to get this company listed. So, he looked for Li Mingde, hoping that Li Mingde could persuade Feng Yu. He knew Feng Yu trusted Li Mingde a lot. If not, Feng Yu would also not ask Li Mingde to retire early from the government service and rehired him into the company. Li Mingde was even given shares of the company.The Secretary also felt that Zhang Ruiqiang would not stop this as the whole Bing City Government will get the credit if this company was listed. If the Secretary got promoted, Zhang Ruiqiang would be able to take over his position. Zhang Ruiqiang had performed well in the past two years and will have high hopes of taking over his position. Moreover, he also had support from the Provincial Government no. 1.There were also rumors that the Provincial Government No. 1 will be retiring to the backend at the end of the year. At that time, Zhang Ruiqiang will lose his strongest backing in the Provincial Government. Zhang Ruiqiang will not want to be Bing City Government's Party Secretary? In government service, one wrong step will mean failure.Li Mingde dare not to offend the Party Secretary, and he could only ask Feng Yu for help.Tsk. Feng Yu knew that getting listed was the norm for many companies to raise funds. It was better than getting loans from banks and could increase the company's value effectively.But Feng Yu does not want to get listed. This was because once the company was listed, his shares in Bing City Machinery Company would be diluted. For the company to be listed, at least 25% of the total shares had to be offered to the public. Then, Feng Yu and his father would be less than 50%.Of course, after the company was listed, the share prices will rise, and the shares will be more valuable. But that's only for people who wanted to sell their shares. Feng Yu had no intention of selling his shares.In Feng Yu's previous life, many big companies wanted to be listed was not because they want to raise funds. It was because they were invested by venture capital. How does a venture capitalist make money? They depend on selling the shares of the company after they got listed.The share prices of some good performing companies or companies favored by investors will rise after they got listed. The Venture capitalist could sell off their shares during that period. Sometimes, they might get more than 20 times the returns.Also, Venture capital normally owns preferred stocks. They do not have voting rights but will get dividends. Also, they get priority in selling their shares.Some companies got listed was to lower their debt ratio. Many companies had lots of debts, but could still get listed. Once listed, they would be able to repay their debts.Of course, there was also a great benefit for getting listed now. There were not a lot of listed companies on the stock exchange now. If the company were listed, it would be able to increase its brand awareness and image. But Bing City Machinery Company does not need this. Since Bing City Machinery Company launched its motorcycles, the company had become the leading brand throughout China. All their products were selling like hotcakes.Many companies that were doing well, especially those companies that were owned by an individual, will choose not to be listed. For instance, Shun Feng Logistics. In Feng Yu's previous life, many people had tried to get this company listed. They told the owner that he could make much more if the company were listed. But the owner refused as he does not lack money.Another disadvantage of getting listed was the finances had to be disclosed to the public. This was not because Bing City Machinery Company have any debts or fake accounting. It was because Feng Yu does not want his name to appear in the reports.Although Feng Yu could not hide his wealth completely, he still prefers to keep a low profile and make money silently.Feng Yu had wanted to set up a holding company in Hong Kong and then transfer all his shares in the various companies to this Hong Kong holding company. But it was too troublesome. Feng Yu must cough out a large amount to do this.Current, Hong Kong was still not considered part of China. If Feng Yu were to do this, people would think that he is transferring his assets overseas. Feng Yu had also asked Master Lu for help, but Master Lu could not do anything about this unless Feng Yu sold off all his shares at the market price. If not, the Central Government will step in and stop the transactions.If this were after 1997, the return of Hong Kong, it would be easier for Feng Yu to set up a holding company in Hong Kong.Feng Yu thought about this and decided to wait. Also, this was not the right time to get his companies listed. Especially in the Chinese stock exchange. The stock market of China had just started T+1. This was to prevent the manipulation of the stock market.But this year, China's stock market was unstable. China had issued a lot of treasury bonds, and many security companies start to manipulate the market. These two years, the market would be bearish, and investors do not have confidence. If a company were to be listed now, the share prices might even fall.Of course, if Feng Yu really wanted to manipulate the market, no one would be his match. His technical knowledge and financial backings were the top in China.But Feng Yu does not want to do this. He does not want to get into trouble. Even if he could cover everything up, others might find out in the future and labeled him as a market manipulator. He will be guilty of cheating all other investors of their hard-earned money.After the company was listed, the management had to do a lot more. Feng Yu felt that Li Mingde and the rest still do not have what it takes to manage a listed company. Although these people could accept new things, their speed and ability to accept new things were not fast enough.Also, the cost of getting listed was very high. The company needs to hire people to audit the company, hire lawyers, etc. The audit of the company would be more stringent, and every tiny detail of the company had to be audited. It would be more troublesome if Feng Yu were to transfer all his companies shares to a holding company in Hong Kong.There were pros and cons for a company to be listed. Feng Yu thought about it and felt this was not the time for him to get his companies to be listed.Feng Yu told Li Mingde to fend off those government officials. He had given Li Mingde some shares of the company, and this was his responsibility. Feng Yu would never get his company listed for the government officials to claim credits.Especially Feng Yu does not know Bing City's Party Secretary.Feng Yu told Li Mingde to inform him if he really could not settle this. He will go back to settle this problem.
