Investment Life

CHAPTER 25

For most people in China, May 21, 1992, was just another bland day, but at this time, for the people of Shanghai, particularly the stock market investors in Shanghai, it was a fascinating and passion-filled day because on this day, the Shanghai Stock Exchange announced a full liberalization of stock prices.

Early in the morning, Chen Yuanming left his hotel room and walked down the street to the conference room set aside by Shenyin Securities for investors from rich and influential families or investors worth over a million yuan. The hotel where he lived was not far from that large conference room. However, after walking for ten minutes he saw a turbulent surge of excited shareholders. It seemed that everyone was unanimously waiting and preparing to rush onto the trading floor after the market opened to desperately fight for a chance at another stock market rally.

Chen Yuanming was not surprised by such fanaticism. You should know that starting from April 13, each percentage increase or decrease on the stock market and each cancellation of restrictions on the low end of the market, was accompanied by a big wave of gains. In this manner, the Shanghai Stock Exchange Index broke through the 400-point mark on April 14th and soared to 623 points on May 20th. Now that the stock market was fully liberalized, as long as you had a little understanding of stocks, it would not be difficult to imagine how amazing the Shanghai Stock market appeared.

But was such a change acceptable to everyone?

With a trace of emotion, Chen Yuanming walked into the big conference room where he had been staying for the past two months.

"Yuanming!"

As soon as he stepped through the door, a voice called out to him. Chen Yuanming looked up and saw Xiao Yun striding towards him.

"How can you be late today?!" A strong shoulder embraced him violently and led him into the room. "Look! No one in this room could sleep today. Even that Lao Sun arrived at half past seven."

Lao Sun was a real estate agent based in Zhejiang and was among the league of million-yuan investors. However, he was usually busy with his own business and did not often visit the large conference room. But today, he was here early! It seemed that as long as one was not stupid, you would be present today. Chen Yuanming exhaled softly, this was truly the current craze.

This large conference room was originally the hotel's presidential suite. Now it had been divided into seven or eight areas that were partitioned with flower pots and screens to provide privacy yet still allow the members of the various large families to communicate. Each compartment was equipped with leather sofas, coffee tables, bookshelves and a large-screen color TV.

You should understand that computers in 1992 were still legendary gadgets, and stock trading relied on manpower. Therefore, color televisions which could relay instant market information as well as traders dressed in red vests were the most convenient operating tools. In this large conference room, there were four red vests from Shenyin securities present. This was extravagant enough for an era where securities companies were short on personnel.

After taking two or three steps, Chen Yuanming and Xiao Yun entered their own box and settled on the sofa together. At this time, it was only a few minutes before the stock market was to open and the members of the big families who had just been chatting dispersed one after another to pay attention to the numbers that will soon appear on the TV. Xiao Yun bowed his head, lowered his voice, and asked, "How is it? How much will the market rise today?"

Half a month ago, Xiao Yun had wanted to sell his stocks. However, from the end of April to the beginning of May, all the newly listed shares had increased in value several times. In addition, with the current market situation, if he had sold them at that time, he did not know how much he would have regretted his actions.