LightNovesOnl.com

Extraordinary Genius Chapter 888

Extraordinary Genius - LightNovelsOnl.com

You're reading novel online at LightNovelsOnl.com. Please use the follow button to get notifications about your favorite novels and its latest chapters so you can come back anytime and won't miss anything.

Extraordinary Genius


Chapter 888 - Get listed


Feng Yu rubbed his chin and thought for awhile. "Actually, there is still a solution that might be against theregulations. However, it is definitely useful.


Against the regulations? Zhang Ruiqianghesitated. At his age, he still can move upwards. If he violates any laws, hiscareer might end even if he had achieved results.


But Zhang Ruiqiang thinks again. He mightnot be the one who violates the regulations. Why did the province appoint a.n.a.lmost retired Deputy Provincial Governor to head the state-owned enterprisereforms? The leaders must be worried about this.


If necessary, use extreme measures to solvethis problem, and if anything goes wrong, someone else will be the scapegoat.


"What's the solution? Tell me."


"Two words, get listed!" Feng Yu smiled andreplied.


"Get listed? You are saying we get listedon the stock market?" Zhang Ruiqiang asked puzzledly. What solution is this?


This brat mentioned about violating theregulations. Does he mean that getting those enterprises listed illegally?


"That's right. The companies can getfinancing after getting listed. Why so many of the state-owned enterprisescannot be reformed? It's because they don't have money. Why can't they developand grow? It's because they don't have good equipment. In conclusion, they haveno money. After getting listed, they will raise enough funds to get newequipment, technology, and repay their debt. They will also have enough moneyto get enough resources. The price they have to pay is only giving out somedividends to the shareholders and lesser authority."


The capital market is the companies'financing platform, and it's beneficial for the companies' growth and protectsthe country's interest.


State-owned companies' reforms cannot beseparated from the capital market. The funding, reformation and loan model isnot wrong, but it's too limited.


The higher-ups are still very conservativetowards this reform. Especially on the privatization of state-ownedenterprises.


To Feng Yu, rather than letting these state-ownedenterprises depending on the government for funding every year, they shouldsell them to private ent.i.ties. This way, the government can recover some moneyand still get taxes every year, instead of spending money to feed them. What'sthe point of keeping these money-losing state own enterprises?


These are not essential enterprises, andthere's no difference between state-owned and private. For instance, ahandkerchief factory. Why can't the government sell it to a private ent.i.ty?Convert it to a shareholding and then let the state-owned officials interferewith the factory's operation? It will still be the same as before. If there issomeone in the state-owned enterprise who can bring the factory out of theircurrent situation, this factory will not be in this pathetic state.


Those useless leaders in the state-ownedenterprises should be transferred away, demoted, and get salary cuts. Whoeverthat is unhappy, investigate them. None of them are clean in the first place.


But now, the government is still stuck withthese state-owned enterprises. They did sell some state-owned enterprises inthe past, but the civilians and workers felt the state-owned enterprise'sleaders are selling away the government's a.s.sets and have taken benefits fromthe buyer illegally.


Did the leaders really get benefits fromthe buyer? Of course, but not all leaders will get any under table deals. Some leaderssold the state-owned enterprises to solve this problem.


Feng Yu also have to bear someresponsibility for what's happening right now. All the leaders in the provincesaid. Look at Bing City's reformations. Bing City Machinery Company, Bing CityPharmaceutical, etc. After their restructuring, its profits, taxes, and valueincreased, and the city government did not spend much.


Even the big enterprises in Bing City cando this, why can't these small enterprises be successful?


Sometimes, reforming a large enterprise iseasier than changing a small enterprise. Large enterprises are more compet.i.tive,and small enterprises might not even export their products out of the city, letalone the province or overseas.


Zhang Ruiqiang was deep in thoughts afterhearing what Feng Yu said.


Getting listed is a good solution. Afterthe enterprise is listed, it will still be under the government's control. Thiswill stop those people from objecting, and there will be funds to clear thedebts. Most importantly, the government doesn't need to spend money!


"Tell me the details. How are we going todo this?" Zhang Ruiqiang asked.


"Simple. Just merge companies in the sameindustry, fulfill the listing conditions, and then apply to be listed!"


"Fulfil the listing's conditions? ZhangRuiqiang was confused.


"Merge the quality a.s.sets, remove thosenon-performing a.s.sets, and apply for bankruptcy."


"Wait. Why are you talking about bankruptcyagain?" Zhang Ruiqiang interrupted.


"Fine. We can also do without applying forbankruptcy. We need to create something that will attract people to invest in.For example, those electronic factories and semi-conductor factories, youmentioned earlier. If their technology fits the criteria, I can give them someorders to produce parts for Aiwa's Mobile Phone. This way, there will be investorswho think this enterprise is profitable and invest in it."


"After they invested, the investors willnot be satisfied with the enterprise's profits, and they will hope thisenterprise will get listed. This is where you need to make some changes to theaccount, like stating the enterprise does not need to repay their debts in the next3 years, etc. This way, the enterprises will need the requirements to belisted." What Feng Yu said is getting venture capital.


"What?" Zhang Ruiqiang is shocked. "You areasking us to forge our accounts?!"


"It does not necessary to be fake. You allcan just don't include some of the enterprise's debt in the account. There arelots of loopholes you can make use to get listed."


Feng Yu sighed. China still does not have theGrowth Enterprise Market. In his previous life, the Growth Enterprise Marketwas introduced next year and only targeted high-tech enterprises. But theGrowth Enterprise Market had started in Hong Kong. The companies that can't belisted in China can choose to get listed in Hong Kong.


In Feng Yu's previous life, many companiesthat did not meet the listing requirements managed to get listed, and this isbecause the government had interfered. If others cannot do this, we can, aslong as we can answer to the shareholders.


"Are there other options?" Zhang Ruiqiangfrowned and asked.


"Yes. You can buy a sh.e.l.l company or getlisted through the backdoor. That means you can acquire a listed company'sshares and use your a.s.sets to merge that that listed company. After that, you reissueshares and use the fund collected to develop those enterprises."


Zhang Ruiqiang was getting giddy from FengYu's suggestions. "Alright, alright… do you have anything simpler?"


"If there is a simple solution, thegovernment would have thought of it. But there is still one more solution whichmight work. Change the hiring procedures of the managers and replace all currentmanagement staff. Let the new professional manager have full control over theenterprise and offer him high salaries and shares, in exchange for him to comeup with strategies to turn the company over. There are lots of people like this,and it is up to you all to find them."


Feng Yu said and saw Zhang Ruiqiang lookingat him. Feng Yu laughed. "Which enterprise can afford to hire me? Even if theycan afford, do you think I will work for them?"


Actually, Feng Yu has no confidence inmanaging a company. He knew himself well, and managing a small company is fine.But he can't handle a large enterprise.


"I am not talking about you. Your companieshave such managers, right? Lend us some of them."


"Don't even think of this! Those uselessenterprises want to poach my people? My men, who are capable, have my companies'shares. Those that do not have company shares and still holding managementroles are young managers, and we are grooming them. You can poach people, butdon't even think about poaching my people! If not, the province can forgetabout getting my donations in the future!" Feng Yu almost jumped up from hisfrom the sofa.


d.a.m.n! I am offering you suggestions, andyou want to use my ideas on me?!


Translator's notes:


Capital markets


https://en.wikipedia.org/wiki/Capital_market


Growth Enterprise Market


https://en.wikipedia.org/wiki/Growth_Enterprise_Market

Click Like and comment to support us!

RECENTLY UPDATED NOVELS

About Extraordinary Genius Chapter 888 novel

You're reading Extraordinary Genius by Author(s): 穷四. This novel has been translated and updated at LightNovelsOnl.com and has already 1263 views. And it would be great if you choose to read and follow your favorite novel on our website. We promise you that we'll bring you the latest novels, a novel list updates everyday and free. LightNovelsOnl.com is a very smart website for reading novels online, friendly on mobile. If you have any questions, please do not hesitate to contact us at [email protected] or just simply leave your comment so we'll know how to make you happy.