Chapter 1005 Professional Shareholders
What is going on?
I appreciate the unique and weird system of Japan, a weird country, which will always lead to weird things.
No one would believe that such a serious thing as doing securities investment and being a shareholder in Japan could actually evolve into an immoral and gray profession.
The first prerequisite for people in this industry is to have a certain amount of financial resources in order to buy and hold stocks of multiple companies.
Therefore, the barriers to entry are not low and the personnel composition is also very complex.
From Yakuza who rely on community organizations to nouveau riche who work alone.
As for what I have to do every day, I attend the shareholder meetings of various companies, express serious questions or opinions, or interfere with the proceedings of the meeting.
The purpose is to be a troublemaker so that he can charge management fees from the companies he holds shares and extort benefits.
They targeted the corporate management's fear of getting into trouble, seized on various shortcomings in corporate operations, used this to put pressure on the company, and used professional and intellectual violence. They were dubbed by Japanese society as The name of "professional shareholder".
To put it bluntly, the behavior of these professional shareholders in collecting benefits from the company can be regarded as intimidation and extortion.
Essentially, it is a case of using the power of shareholders to interfere with the normal operation of the company.
They succeeded repeatedly because they understood that the management was afraid of "difficulties in the future" and did not dare to report the crime to the police.
This kind of evil behavior was prevalent throughout the 1960s. At that time, most Japanese companies would determine the amount of payment based on the other party's level.
Even when those professional shareholders who are like little gangsters come to "visit" during the Ghost Festival or the end of the year, most Japanese companies pay them with "travel expenses".
In fact, at that time, Japanese companies had received instructions from the police and often discussed countermeasures on "how to expel professional shareholders." Unfortunately, the results were not great.
Later in the 1970s, as this situation worsened, Japanese companies finally became united in disgust, and finally found ways to fight against professional shareholders.
First, Japanese companies have adjusted their company rules and regulations and decided not to have external independent directors from now on.
Second, in order to reduce the number of external shareholders, many small and medium-sized enterprises have also followed the example of large enterprises in the chaebol system and started cross-shareholdings with each other using business relationships as a link.
Third, in order to prevent those shareholders and reporters who deliberately cause trouble to make things difficult for corporate management, hundreds of listed companies will even tacitly choose to hold shareholders' meetings at the same time.
It is this way of teaming up between companies to keep warm that basically blocks the room for professional shareholders to make profits.
However, there is no absolute in everything, there are always some individual exceptions.
For example, listed companies with small and medium-sized market capitalization like Hanwa Kogyo have the most obvious weaknesses.
Especially when a business encounters difficulties and its market value drops sharply, it is easiest for outsiders to take advantage of it.
If there is no internal unity, once the stocks held by outsiders are enough to affect the appointment of board members, or the change of actual control candidates of the company.
Then such shares are valuable, and you can still get certain benefits.
It is conceivable that from the perspective of Hanwa Kogye.
Suddenly I discovered that after the market value of my company experienced a sharp decline, an outsider holding as much as 3% of the shares appeared in the shareholder list.
Especially a foreigner.
It is normal to have concerns about this.
At this point, Ning Weimin finally understood that the co-author regarded him as a hooligan like a professional shareholder.
"You mean that Hanwa Kogye regards me as a dangerous person with ulterior motives? Then you still say it doesn't matter?"
"Because I know very well who you are. This It's just a misunderstanding. Your investment returns are so huge, and all the stocks you hold are soaring. How can you still do such a thing? It’s just a meal.”
“That’s true. But I feel very bad. Being suspected of bad motives without any reason is an insult to my character. . ”
“I understand your troubles. Of course your dissatisfaction is justified. This kind of thing is not pleasant for anyone, let alone a person of your status.”
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Director Sagawa nodded in agreement, fully understanding Ning Weimin's dissatisfaction.
Not only was the flattery very good, but Ning Weimin also heard something interesting from the words he said.
“However, because of this, once the misunderstanding between the two parties is clarified, the other party will feel deeply guilty, right? After all, the other party does not trust you first. This is also a kind of disrespect, and you cannot let your suffering be in vain. You have such unreasonable suspicions?”
“Huh? What do you mean?”
Maybe he is worried that Ning Weimin, as a foreigner, does not understand Japanese euphemisms this time. Sagawa also took the risk.
He deliberately came closer, then lowered his voice and whispered like a dog-headed military counselor.
"If you still want to continue investing in Hanwa Kogyo, there is something I should tell you. Although Hanwa Kogyo's annual financial report profits have increased sharply, there is almost no change for their president Kitashige-san. There are also different opinions within Hanwa Industrial Co., Ltd. about completely abandoning the traditional main business and investing all the company's resources in financial investment. "
"Last month. When Hanwa Kogyo held a shareholders' meeting, I heard that a company veteran questioned him on the spot, which even caused a dispute between the two groups. In this case, President Kitashiro of Hanwa Kogyo wanted to talk to you. When we met, it was obvious what the other party was worried about. This is actually an advantage for you. "
"I mean, even though you are not a professional shareholder, you will not be concerned about it. What kind of unreasonable request does Hanwa Kogyo make? But on the other hand, we can also use this opportunity to reassure the president of Hanwa Kogyo and establish a certain relationship with him. In fact, they will not refuse it from that perspective. I will definitely express my deep gratitude to you for your kindness. Then won’t you have the most reliable source of information in the future? In fact, you will not be at a disadvantage if you meet the other party..."
Depend on! Pretending to be mysterious!
After all, the guy who co-authored it was trying to persuade him to engage in insider trading!
Ning Weimin was both angry and funny.
Xin said, how can I use such despicable means?
But when he thought of his trolley suitcase and the Tan Palace Restaurant that was about to open, his heart moved.
Although Sagawa's suggestion is poor, it is right in principle.
After all, the other party is the president of a listed company. There is definitely no harm in getting to know each other and talking things over.
Even if there is no possibility of cooperation, at least you don’t have to worry about breaking other people’s taboos or being troubled by others.
While thinking deeply, Ning Weimin heard Sagawa say again, "President, there are a few more words, and I think it is my duty to remind you. Although you are innocent in this matter, you are completely clear about it. But. If you refuse to meet the other party, there may be something bad for you..." "What? Who would be bad for me? You are..."
Ning Weimin was shocked again. He didn't expect to hear a vague threat from Sagawa's mouth.
However, this time he got it wrong again.
Because Sagawa had a flattering look on his face and tried his best to express his feelings, he looked like a pitiful loyal dog.
"President, I absolutely have no ill intentions. Although my words may sound a little offensive, I really just want to give you a kind reminder and consider you wholeheartedly. What I want to say is, Japan The unspoken rules of the securities market. On the surface, Japan's securities industry is very standardized and is promoting financial liberalization. But in fact, there are many unfair insiders. 'Prudent measures' are one of them... ..."
"Prudent measures?" Ning Weimin frowned in confusion and repeated this special term.
Based on his intuition, he already had a hunch that what Sagawa was going to tell him was something very important.
Sure enough, Sagawa's next explanation was as expected.
"Yes, the so-called precautionary measure. To put it simply, it is a specific measure specifically targeted at foreigners. There is an unwritten tacit understanding among Japanese securities firms that if a listed company whose equity is acquired If there are unfriendly suspicions about the purpose of foreigners acquiring equity, and the securities company supports it, a special investigation can be initiated, and during the investigation period, the securities company has the right to stop the customer's trading of the stock. Holding this stock will be completely frozen by the securities company, and trading cannot be resumed until the investigation is completed."
These words made Ning Weimin shudder and his heart suddenly trembled.
If nothing else, the stock market is changing rapidly, and if you are not careful, you can miss good opportunities and cause losses.
If the stocks you buy on the open market may no longer be available for trading at any time, what are you going to do as an investor?
Isn't this just being a hooligan?
"What? Doesn't this violate the principle of fair trading of stocks? The essence of securities trading is that you can buy and sell at any time?"
"That's right. Indeed. It’s unfair, but there’s no way around it. This is the objective status quo of Japan’s securities industry. I can even reveal some more specific inside information to you about Oji Paper, a listed company, right? Dissatisfied with the fact that a few Hong Kong people took advantage of the low corporate value to acquire a large number of shares, they went through our Nomura Securities, Daiwa Securities, Nippon Securities, Yamaichi Securities, as well as eight companies including Wako, New Japan, Nippon Kanye Kakumaru, and Okazo Two securities firms jointly froze a total of 12% of Oji Paper's shares held by five Hong Kong investors. The so-called investigation has been going on for several years. So far, the shares of these five people have clearly made profits. It’s huge, but it’s still impossible to trade.”
Ning Weimin couldn’t imagine how a Japanese securities company could have such a damaging trick and dare to blatantly violate the world’s prevailing financial rules.
Don’t be afraid of ten thousand, just be afraid of the unexpected.
If this trick is used on him one day, he will have to be forced to death.
"What's the reason? There must be a reason for the securities company to do this, right?"
Ning Weimin suppressed his displeasure and asked.
The answer Sagawa gave almost made him get angry.
“Malicious hoarding!”
"Malicious hoarding? Are you kidding? This excuse is too perfunctory. How could the people of Hong Kong agree? They will definitely sue, right?"
"Yes. You were right, they left Legal approaches are of no use. Neither the Tokyo Stock Exchange nor the Japanese courts will support the claims of a few foreign investors. In fact, the Japanese securities market is essentially a corporate club that exists only for convenience. This is the general consensus among Japan's upper class that the company is just raising funds, so no matter what, you should agree to Hanwa Kogyo's request and meet with President Kitashiro. Otherwise, it will make the other party suspicious and think there is something wrong with you. "
Sagawa's words revealed the helplessness and cruelty of reality, and immediately blocked everything Ning Weimin wanted to say.
He can't even help himself whether to see her or not. This is too cowardly.
But he was angry and it was hard to get angry.
After all, Sagawa meant well, not to mention that this phenomenon was not caused by him.
He should be grateful if someone can remind him to avoid this potential risk that is very likely to happen.
If all this is true...
After being silent for a while, Ning Weimin couldn't help but complain.
"Is it because I don't agree to meet that your sales department will do this to me? If so, how can I invest with confidence? It's really troublesome! I might as well just sell it All stocks, stay away from the Japanese securities market!”
Of course he was speaking out of anger.
Japan’s economic bubble has just begun.
How could he be willing to give up such a once-in-a-lifetime meal?
How can we give up eating because of choking?
But Sagawa didn’t know this.
He thought Ning Weimin was telling the truth, and immediately regretted it so much that his intestines turned green.
Why did he spend so much time spitting?
Not in a hurry is to gain the trust of customers.
But if it goes too far and scares the customers away, then it will be counterproductive.
For this reason, Sagawa broke out in sweat again, forced a smile on his pale face, and quickly changed the subject in an attempt to redeem himself.
"President, I understand your concerns very well. But you don't need to worry too much about this matter. The reason why I remind you is not to say that this will definitely happen. It is just a possibility. I hope you can be prepared. And maybe what I just described is not comprehensive enough. In fact, listed companies also need corresponding conditions to propose self-cautionary measures, and ordinary companies are not able to do this.”
"The reason why Hanwa Kogyo has this possibility is that it has its own special characteristics. First, its main business is steel manufacturing, which is the basis of all industries and is an industry of major concern to the Japanese government. Secondly, its main business is steel manufacturing, which is the basis of all industries. , Hanwa Industrial has a very close relationship with Yamaichi Securities. All of Hanwa Industrial's financial investments have always been traded through Yamaichi Securities. According to the analysis of its financial report data this year, the scale of funds has exceeded 50 billion yen at least. Securities are driven by sufficient interests to firmly support Hanwa Industrial."
"But in the same way, we at Nomura Securities attach great importance to high-quality customers like you, even if it is due to the cooperation of the securities industry. We at Nomura Securities will not be willing to blindly sacrifice our clients for the benefit of others, especially me. As your exclusive stock broker, I will never betray your trust and will do my best to maintain it. Your interests. In fact, I am disclosing these things to you to eliminate worries and hidden dangers."
"Do you think this is okay? I will accompany you. Let's go meet with the other party. I can represent you in person and try my best to prevent this from happening. I promise you that the final result will be satisfactory to you. Strive for the opportunity and let me work for you."
At the end, Sagawa also came up with Dogeza.
He slipped out of the sofa onto the carpet and knelt down directly. This was so sincere.
(End of this chapter)