Chapter 109 Youzhou Stock Exchange
At present, the domestic film industry in Longhan is actually developing quite well. Since the screening of the first movie "The Amazing Spider-Man", Meihua Company has established its own film company. Its main task at that time was to provide entertainment for the Youzhou immigrants with a population of several million.

It has been established for a few years and has only made three films, all of which tell the work and life of immigrants in Zhangjiacheng, mainly expressing the happy life of Chinese people who come here.

Now with the support of Paramount, ACM is filming a big production. The main content is that before the founding of the country, ACM and the natives of Madagascar were preparing to join forces to overthrow the brutal rule of the French. After being discovered by the French, they captured the leader of the Madagascar resistance organization, and then ACM sent the Dragon Warrior Commando to rescue him.

Now Longhan Kingdom is in a period of rapid development, the wages of citizens have increased significantly, and the demand for consumption and entertainment is also increasing.

So BMW launched its cars in a timely manner, and Meihua Company also began to vigorously produce movies. Only Zhang Feng's company could meet the needs of the people. Other private companies were still in the early stages of development and had no high-tech content.

However, with this wave of large-scale construction after the founding of the People's Republic of China, other private enterprises have gained development opportunities, and it should not be long before a group of star enterprises emerge.

Zhang Feng also noticed the demand for funds in the market from these private enterprises, which is now a feast for China Merchants Bank and Maple Leaf Bank.

However, these two banks cannot meet the needs of all companies because many companies have no collateral and cannot obtain loans at all. Therefore, the two banks have also started investment business.

Loans are made in the form of company shares, but this brings up another problem, which is that this type of investment is very risky. If the company fails to perform well and goes bankrupt, the bank will also suffer heavy losses. Even if the performance is good, the return on investment is relatively slow, and the bank can only wait for the company to distribute dividends, and there is no good exit mechanism.

Moreover, it was impossible for the two banks to provide loans or investments to all companies. For this reason, Zhang Feng instructed Meihua and Maple Leaf to jointly establish a stock exchange: Youzhou Stock Exchange, abbreviated as Youzhou Stock Exchange, to be located in Yingtian City.

This is a private stock exchange, but it is also supervised by the Long Han Guo Securities Regulatory Commission.

The responsibilities of the Longhang Securities Regulatory Commission include protecting the rights and interests of investors and maintaining a fair, orderly and efficient market environment.

But in fact, the members of the China Securities Regulatory Commission are all senior executives of China Financial Corporation and Maple Leaf Group, which is equivalent to supervising themselves.

Currently, all companies that need to go public have entrusted China Securities and Maple Leaf Securities to sponsor and underwrite their shares.

Sana'a, Yemen.

In the conference room of New Oriental Chinese School in Yemen, Mahmouhong, Hassanping and Awaqiang have had few worries recently.

"What should we do now? Why don't we learn from the companies in Meihua Company and distribute flyers and advertise in newspapers?" said Hassanping.

"This is another considerable expense, and we don't have much money left." Avaqiang said after a sigh.

A few months ago, after the three decided to open branches, they began to work hard to organize them. Due to insufficient funds, New Oriental Chinese School only opened two branches in more than three months. Soon they discovered that competitors had appeared in the market.

"I'll go to the China Merchants Bank to apply for a loan. We need to open branches across the country as soon as possible to seize the market. Advertising is also necessary, otherwise the initial investment may be wasted." Mahmouhong decided.

China Merchants Bank is located in the city center of Sana'a, the capital of Yemen. It is also the tallest building in the entire city. It combines the styles of skyscrapers and Middle Eastern architecture, and is very spectacular.

"Hello, I want to apply for a loan." Mahmouhong walked into the bank lobby and said to a beautiful receptionist.

The receptionists in the lobby of China World Bank are also Yemeni. They dress the same as the women of Longhan Kingdom. Although they are more conservative, they do not need to cover themselves with black cloth or wear veils.

"Okay, sir, this way please." The receptionist took him to a window with less queue to wait.

Soon it was his turn.

"I'm sorry, sir. Your company does not have any assets of its own and cannot provide mortgage loans." The salesperson said after looking at the company information provided by Mahmouhong.

Mahmouhong was not too surprised when he heard this, because he also knew the loan rules of China Merchants Bank, and he was just trying his luck this time.

"Then can I get investment from your bank? I can give 40% of the shares." Mahmouhong changed the topic and asked.

"I'm sorry, sir. Our bank is currently only accepting investment applications from Longhan people." The salesperson answered patiently.

"Oh, okay then." Mahmouhong slowly packed up the company documents on the counter with a heavy face. He was thinking about just going through the immigration process.

"Sir, wait a moment!" Just as Mahmouhong took the documents and prepared to leave, a man wearing a shirt and tie and a latest model of Zhulong watch on his wrist came over.

"Are you calling me?" Mahmouhong turned around and asked after hearing the voice.

"Yes, sir, I am the business manager of the bank. I just heard about the business you want to handle. I have a suggestion here. I wonder if you are interested in listening to it." said the bank manager.

"Of course, if it's good news." Mahmouhong said with a smile.

"I think so. It's like this. A stock exchange will be established in our country soon, and it will belong to Meihua Company. You can bring your company's information and apply for a listing quota. You can also get financing that way. But I can't guarantee whether it will succeed."

The bank manager said, and explained again the role of the stock exchange and the process of applying for listing.

"Thank you very much. I will definitely go to Meihua Securities to handle this business." Mahmouhong said gratefully, although the bank manager just explained why he had to tell him.

If he goes to Meihua Securities to handle the listing business, the bank manager will also receive a bonus commission. You should know that underwriting the stocks of listed companies is very profitable. Not only will you receive high issuance fees, but you can also get the original shares at a low price and cash out after the listing to make another fortune.

Two months later, Longhan Kingdom, Youzhou, Yingtian City.

The Youzhou Stock Exchange is located in a bustling commercial district, next door to the buildings of China Merchants Bank and Maple Leaf Insurance Company. There is also a bronze bull statue ready to run in front of the exchange.

On July 1938, 7, the first stock exchange in Longhan Kingdom was officially opened for business. There were a total of 1 companies listed in the first batch, and the most noteworthy thing was that there was a foreign company among them.

The eight companies are Longhan Guomeihua Railway Co., Ltd., Yingtian Meihua Steel Co., Ltd., Yingtian Yanzhong Packaging Products Co., Ltd., Zhongzhou Wanpeng Building Materials Co., Ltd., Youzhou Yufeng Food Production Co., Ltd., Yunzhong Huajin Garment Co., Ltd., Liangzhou Changhai Fisheries Co., Ltd., and Yemen New Oriental Chinese Training Co., Ltd.

In order to make the Youzhou Exchange successful, Zhang Feng also asked Meihua Company to list its steel company. Everyone knew how profitable the steel company was, but he also let the railway company, which was destined to be unprofitable for a long time, be listed together to balance it out.

There were huge crowds of people outside the exchange at this time. Even if the wide square in front of the exchange was large enough, it would be difficult to accommodate so many leeks, oh no, stock investors.

"Boss Li, what stocks are you going to buy?"

"Haha, let me take a look first. I haven't decided yet."

"Crackle, crackle!" As a burst of firecrackers sounded, a lion dance team began to perform.

After the performance, the director of Youzhou Stock Exchange, the governor of Youzhou, the mayor of Yingtian and other bigwigs came to the door of the exchange and started cutting.

Those standing below were all prominent figures in the entire Longhan Kingdom, including executives of companies under the Zhang Feng family, wealthy businessmen, media, etc.

The director of Youzhou Stock Exchange said, "Hello, everyone. Today is the grand opening day of Longhan Country's Youzhou Stock Exchange. Thank you for your support. I also wish that our Longhan Country's financial market will flourish and get better and better."

When he finished speaking, everyone applauded out of respect, and the heavyweight guests on the stage also began to cut the red ribbons.

The governor of Youzhou also unveiled the horizontal banner of the Youzhou Stock Exchange, which also meant that trading officially started today.

Everyone rushed into the exchange hall.

"Meihua Steel, I want 5000 shares."

"Yanzhong Packaging, give me 10000 shares."

"I want New Oriental, 8000 shares."

Inside the exchange, queues quickly formed in front of several windows, but everyone's quality was still high and no pushing incidents occurred.

As the issuance of new shares was completed, those who failed to buy the new shares could only list them and buy them at a higher price, and the stocks of the eight companies also began to rise.

"Meihua Steel, $1, 2 shares."

"New Oriental, 2 yuan, 5 shares."

"Wanpeng Construction, 2 yuan, 4000 shares."

Meihua Steel went public today and issued 1 million shares, accounting for 20% of the total share capital. The issue price was 1 dragon coin, and the total market value was 5 million dragon coins, equivalent to 5000 million US dollars.

As of today's closing, the stock price is 1.5 dragon coins, and the total market value is 7.5 million dragon coins. Meihua Steel's profit last year was only 3000 million dragon coins, but starting this year, the company's profits will begin to grow substantially.

New Oriental went public today and issued 100 million shares, accounting for 30% of the total share capital. The issue price is 2 dragon coins, and the total market value is 666 million dragon coins, equivalent to 67 US dollars. The company's profit last year was 3 dragon coins.

As of today's closing, the stock price was 4.5 dragon coins, and the total market value was nearly 1500 million dragon coins, more than doubling.

Mahmouhong looked at the scene in front of him with a bright smile. He was wondering whether he should sell all the stocks and continue running the company, but of course this was impossible.

The current trading rules require a lock-up period and also stipulate that shareholders must announce the sale of shares first, and the company must have been profitable in the previous year, etc. Violations will result in a tenfold fine.

With today's listing, China Merchants Securities and Maple Leaf Securities made a fortune. Not only did they receive a considerable commission, but when issuing stocks, only half of each stock was sold at the issue price, and the remaining half was sold at a higher price.

"Meihua Steel's stock price surged 50%, with a market value of over 8 million."

"The stock price of Yemeni company New Oriental tripled, and countless shareholders became rich overnight."

The next day, media newspapers reported the grand occasion of the Youzhou Stock Exchange yesterday, which attracted more companies to consult about listing and more leeks to join the trap.

(End of this chapter)