The summer of 1994: The Shanghai Composite Index Jedi counterattack

Xu Hong "19 years, experience the Shanghai Composite Index-listening to the story of the Shanghai Composite Index" series four 15 years ago that summer, I really unforgettable. One day in mid-July 1994, known as "the door of the country," the Chinese Academy of Social Sciences Graduate School of doctoral students in the corridor rang a hasty phone ring, the president of the Shanghai Securities Company office calls, told me the article "state-owned Assets business model comparative Study" won the "Universal Securities Cup" Award-winning essay activities The only first prize, the bonus for 20,000 yuan after tax. This good news, really let my family ecstatic, also let the capital Airport road next to occupy less than hundred acres of graduate school added a festive. I was there for a Ph. D. degree in economics.　　This for a poor student, is undoubtedly a timely and xicongtianjiang. The "Universal Securities Cup" essay, which coincided with the Shanghai Composite Index's 1558-point plunge from February 16, 1993 to July 29, 1994 325, has fallen by as much as 79. 13%. In the meantime, the Shanghai Composite Index built a line of defense at 777 points, with more than 30% rebounds in proximity to the point. At that time Qiayu inflation intensified, macro-control tightening, stock market expansion accelerated, the overall market trend downward, so the rebound ultimately have no work to return. February 22, 1994, the Shenzhen Stock Exchange announced the suspension of the IPO.　　After a brief positive response, the market soon fell below the 700-point integer pass and reached 694. March 14, China Securities Regulatory Commission chairman Liu Hongru announced the "Four not" policy, that is, 5.5 billion of new shares not listed in the first half of the year, did not levy a share transfer income tax, public shares and personal shares of the year, not to be merged, listed companies should not disorderly rights, the market short-term rally, the Shanghai Composite 90%, 788 points. But the index quickly plunged into a more violent fall. April 20, the minimum has been to 536 points. May, is basically horizontal plate finishing. June and July, the trend of unilateral decline.　　Small and medium investors have suffered a loss and endured an unprecedented ordeal. In the face of this situation, the Shanghai Universal Securities Company launched, and the China Securities newspaper jointly organized the award-winning essay, in order to attract more people to participate in the discussion, concern about China's property rights reform and capital market development, China Securities Regulatory Commission chairman Liu Hongru as the director of the jury. It is said that thousands of people contribute.　　The title of my prize paper is "Comparative study of state-owned Assets management model", the core idea is to recommend the management of state-owned assets by "entrusting fund management", including developing institutional investors and promoting the circulation of state-owned shares, and implementing the value management of state-owned assets. To this end, the "universal" special in Shanghai Jinjiang Small Auditorium, that is, Premier Zhou Enlai and President Richard Nixon signed the "Shanghai Gazette", held a grand Essay award ceremony and seminar, and invited many celebrities at home and abroad in the financial community to attend. I remember clearly that I was on the same flight to Shanghai with Xiao from Peking University.Professor Burns and deputy editor-in-chief of China Securities Daily, Mr. Schuaya. July 17, 1994, the essay presentation ceremony and academic seminar were held as scheduled. At the meeting, Mr. Tukinson, the President of the nations, said that the rhetoric of "making the world's securities into China's Merrill Lynch, Morgan Stanley" and "Building a Taiwan ' Triangle capital city" is now faintly haunting me. During the dinner, Mr. Guan repeatedly invited me to join the "nations" and hoped that I would preside over the work of the Institute, and I politely declined his gracious invitation, and I want to wait until I get my doctorate. Mr. Guan told me that the gate of the nations was always open to you.　　But six months later, there was a shock of "327 National Debt Futures" incident, Mr Guan was sentenced to 16 years, with the "universal" and "Shen Yin" merged into a "Wanguo." 1996, I graduated from the PBC, the People's Bank of China, engaged in financial legislation and supervision work. In 1998 years, I "went overboard" to the GF Securities Company, was the company chairman Dr. Chen Yunxian sent to Shanghai to work. In Shanghai, I experienced 1999 years of "5 19 quotes", and in May 2001 (June, the Shanghai Composite index reached 2,245 points after the all-time high, all the way to bear, to reach the new historical lows of 998 points) back to Beijing Zhongguancun, engaged in venture capital. But venture capital and capital Market is "one Tengzigou two grasshoppers", due to the capital market downturn, coupled with the Shenzhen Venture board, the day of venture capital is naturally not good.　　In the spring of 2003, "SARS" outbreak, prompted me to return to the university classroom, engaged in securities and futures teaching and research work. The world is hard to anticipate. Shortly after the "Universal Securities Cup" essay presentation ceremony was held, the Chinese securities market changed dramatically. On July 28, 1994, the Shanghai Composite Index lowered its lows and took off at 339 points, down 8. 43%. After falling for a long time, the crash is devastating. Small and medium-sized investors fled in haste, the market is miserable. July 29, the lowest index to 325. 89 o'clock, closing at 333. 92 O'Clock, Deal 4. 8.2 billion. July 30, Saturday, the government issued a bailout policy. The People's Daily published China Securities Regulatory Commission and the relevant departments of the State Council to discuss measures to stabilize and develop the stock market, which is the "three policies", that is to suspend the IPO and listing in 1994, strictly control the scale of listed companies, and expand the scope of funds. The specific meaning of the third one is to develop investment funds, foster institutional investors, and the second is to pilot Sino-Foreign Joint fund management companies, gradually attract foreign funds into the domestic a-share market; third, to selectively finance credit and management of securities institutions.　　The introduction of the "three policies" immediately triggered the Shanghai Composite's Jedi counterattack. On the August 1, the Shanghai Composite Index closed 333 points, with a 394-point jump in the air, 445 points on the day and a 33 rally. 46%. The gap between the minimum 377 and 333 points of the day has become a historical gap that can never be mended. AugustThe Shanghai Composite Index surged 20 on 3rd. 89%; August 5, 21. 37%; August 10, or 19. 1%, volume amplification to more than 10 billion, and July per day 4, 500 million compared to the tremendous changes. One months after the introduction of the three policies, the index returned to 1000 points. October 5, the Securities commission of the State Council decided to abolish "T+0" since 1995, the implementation of "t+1" trading system, the same day the Shanghai Composite Index fell 10.　　71%, announced the end of this round of super blowout, and then the index gradually calm, and the Treasury bond futures market is surging, perilous. The past is like smoke. Looking back on the history of research and operation in capital markets, it dates back to the "Securities Investment Society", which I attended at Renmin University in 1990. Of course, the most influential to me is the 1994 "Universal Securities Cup" essay award. Since then, I know I am afraid that this life can no longer be separated from the capital market. The vigorous practice of capital market has prompted me to keep on learning new financial knowledge and to consider the difficult problems in practice. Inspired by the award, in 1994 and 1995, I presided over the preparation of China's first large investment fund reference book: "Investment Fund Operation Book" (1996, China Financial Press); I am proud to be the world famous fund manager--Dr. Mobuis, president of the Templeton Emerging Markets Fund, USA , inviting me to attend an international symposium on investment funds and to make a keynote speech at the United States, which he told me personally, "This is also the first book in the World." 2009, my painstaking work-"the financial strategy of Great Powers" published.　　Among them, the "Investment fund Operation book" and "investment banking" are invited to the first chairman of the China Securities Regulatory Commission Professor Liu Hongru, this should be attributed to the year "the Universal Securities Cup" essay activities under the fate of the knot. Looking back 15 years ago midsummer, really unforgettable.