"As long as I save my life, I will still be a good man after 10 years."
Such overconfident, even slightly arrogant words, came from what Tang Wanxin, a generation of stock gods, said in an interview during his imprisonment.
Tang Wanxin, this name is familiar to many friends who speculate in stocks. The former stock god, the myth of the stock market created by him is still remembered today.
So why did he go to jail? Why was he so confident that he thought he could make a comeback?
- Courageous and insightful, the more frustrated and courageous, Tang Wanxin started from scratch to build a capital empire
Tang Wanxin was born in 1964 in Urumqi, Xinjiang, to a family of border cadres, the youngest of five brothers and sisters. In the spring of 1986, Tang Wanxin, who had graduated from the university, stood at the beginning of his grand career. I started a lot of small business, but most of these entrepreneurial explorations ended in failure.
At the age of 17, Tang Wanxin was admitted to the Department of Industrial Economics of East China Petroleum Institute, but he dropped out of school a year and a half and returned to Urumqi to re-study. In 1983, Tang Wanxin was admitted to the Xinjiang Petroleum Institute. At a time when there was a boom in college business, the Petroleum Institute opened a farm in Jimsar County, but it was losing heavily.
It is said that Tang Wanxin, a student, introduced himself to the school and was allowed to be responsible for "taking care of" the farm, which was Tang Wanxin's first business career. Tang Wanxin, 20, did not create a miracle, and the farm soon fell to the ground. At the end of February 1985, Tang dropped out of school for the second time and officially entered the business path.
Tang Wanxin
Tang Wanxin's "first bucket of gold" is to rely on the "friend" color expansion society 20 years ago. His money-making method is only a small façade in Wushi, and he will send the color rolls he received to Guangzhou to get them and print them back to Urumqi. Tang Wanxin soon earned 600,000 yuan.
Tang Wanxin is basically a self-employed person who has repeatedly struggled and struggled repeatedly. Tang Wanxin chased every opportunity he saw, and what he gained was experience, not real wealth.
In 1995, Tang Wanxin established Xinjiang Delong International Industrial Co., Ltd. He led delong's growth from a small company on the northwestern frontier into a financial and industrial empire that once controlled more than 120 billion in assets.
In May 1992, Xi'an began the shareholding system transformation, Tang Wanxin aimed at this opportunity, borrowed 50,000 yuan from Zhao Shiping, and went to Xi'an alone to buy and sell the subscription rights in the process of shareholding system transformation. ”
This is undoubtedly a bold move. For Tang Wanxin, this was even a key moment to leave. Because since then, he began to dabble in the capital market and gradually developed.
In Wuhan, after Tang Wanxin peeked into the doorway of financial institutions, he shrewdly discovered the loopholes and tricks in them, and he began to boldly carry out treasury bond repurchase transactions, and repurchased treasury bonds with huge funds of 300 million yuan from Hainan Huayin Trust and ZhongnongXin respectively. This was Tang's first big gamble.
Later facts showed that this kind of gambling became one of the time bombs that detonated Delong in the future. Coincidentally, Wuhan also became a place where the Tang Dynasty was imprisoned in the future.
Xi'an's corporate stock trading market brought Tang Wanxin "tens of millions of wealth". He bought the legal person shares of more than ten companies such as precision alloys, Shaanxi Five Cotton, Xi'an Jinhua, Xi'an Minsheng and Shaanxi Jiefang at a low price in Xi'an, resold them to Xinjiang and Shenzhen, and made a profit of "50 million to 70 million yuan" in less than a year.
As the founder of the "Delong Department", Tang Wanxin has established financial and industrial empire assets of more than 120 billion yuan. Once upon a time, Tang Wanxin's myth of wealth creation became a specimen of the times; his business ideals of industrial integration and financial mixing were considered by many economists to be the "highest realm" of capital management.
However, it is such a commercial giant with unlimited scenery, but it was subsequently exposed to contract fraud, backdoor listing and other illegal acts of its company.
- Greed is not enough snake swallowing elephants, crazy acquisitions lead to difficulties in capital turnover
In the business world, it is difficult for anyone to guarantee that every penny they make will be obtained, but all big entrepreneurs who are bigger and stronger definitely have a bottom line that will never be touched, and they are well aware of the consequences of their trespassing. Tang Wanxin is a bottomless entrepreneur, and his bottomlessness eventually sent him to prison.
Delong department
In 1996, Tang Wanxin, who was not satisfied with simple stock and bond trading, started the idea of acquiring a company. His first target was Xinjiang Tunhe Company, which became the largest shareholder of the company by frantically increasing its stake, and then he set his sights on Shenyang Alloy and Xiang Torch.
Since then, Tang Wanxin has begun to fly the "Imperial Aircraft Carrier" of Delong on the edge of policies and laws and regulations.
In 2000, Tang Wanxin settled in three other companies in the same way. In 2003, the financial empire of the Delong department reached its peak and became a private enterprise with assets of 120 billion yuan. However, the operation of these companies accounts for the vast majority of delong's capital use, resulting in the inefficient use of delong's funds.
Structure diagram of the Delon system
In 2004, these companies finally could not support and ended in bankruptcy, when Tang Wanxin, who was 40 years old at the time, was also formally arrested for three crimes, including illegally absorbing public deposits, manipulating securities trading prices, and embezzling funds.
- Illegal means of 9 months to profit 500 million-700 million, Tang Wanxin regrets
Under the storm of the central government's clean-up of the financial order, the original major shareholder of Jinxin Trust wanted to change the equity of Jinxin Trust. Tang Wanxin, who was generous, once again opened up various joints and acquired a 30% stake in Jinxin Trust through the Tunhe Curve in Xinjiang. When the equity has not yet been delivered, Tang Wanxin can't wait to lead Wang Hong and other Delong elders to enter jinxin trust.
Tang Wanxin continued to exert the Dafa of Tengnuo and used jinxin trust to raise funds in violation of regulations. Delong raised between 500 million and 700 million yuan in just 9 months through illegal methods such as misappropriation of funds, bonds, bond custody notes and other illegal methods.
In a later interview, Tang Wanxin once said, "I feel afraid, afraid, helpless, although I have resolved this crisis, but it is a bigger poison." ”
Over time, Tang Wanxin even believed in the myth of "industrial integration" that he had made up, and the Delong industrial system could probably bring profits of 600 million yuan, however, Tang Wanxin's cost of protecting the stock market would be 1 billion yuan a year.
It's a game that was destined to be a domino from the start, and finally entered its final and most watchable stage.
Data show that from 1997 to April 14, 2004, Tang Wanxin and others used their own funds and some entrusted financial funds to use 24,705 shareholder accounts, concentrated their capital advantages and shareholding advantages, and adopted methods such as continuous trading, self-purchase and self-selling, etc., to buy and sell the old three stocks for a long time, causing abnormal fluctuations in the prices of the three stocks and seriously disrupting the order of the securities market.
During this period, Xinjiang Delong and Delong International bought the "old three shares" for an amount of 67.836 billion yuan, and the value of each stock market was 11.314 billion yuan According to the calculation principle of the moving average method, the cost of remaining shares was 16.230 billion yuan, and the total accumulated profit was 9.861 billion yuan.
In an instant, the Delon Empire fell apart.
Throughout the history of Tang Wanxin and Delong Group. Tang Wanxin's capital operation ability temporarily dumped many entrepreneurs and many financial figures, and the "Delong Myth" he created was once the pride and model of China's private enterprises. The disintegration of the "Delong Chariot" is a concentrated embodiment of the outbreak of legal risks in enterprise mergers and acquisitions and reorganizations, and it is also a prominent embodiment of Tang Wanxin's contempt for criminal legal risks.
Delong internal and external repair of the comprehensive control of the "old three shares" method, is a set of a set of various illegal methods, internal transactions, market manipulation in one of the model, Tang Wanxin but this method to the extreme, at the end of 1996 to acquire Jinxin Trust, only to solve the Delong short-term payment crisis, greater hidden dangers followed.
- When the dust settled, Tang Wanxin was convicted and imprisoned, ushering in 8 years in prison
On April 29, 2006, in what is said to be the largest financial securities case since the founding of the People's Republic of China, Tang Wanxin was sentenced to eight years in prison and fined 400,000 yuan by the Wuhan Intermediate People's Court for illegally absorbing deposits from the public and manipulating the price of securities transactions. Xinjiang Delong (Group) Co., Ltd. and Delong International Strategic Investment Co., Ltd., the three core enterprises of the Delong Department, were each fined a hefty fine of 5 billion yuan for "manipulating the price of securities transactions", and Shanghai Youlian Management Research Center Co., Ltd. was fined 300 million yuan for "illegally absorbing deposits from the public".
If Tang Wanxin chooses to continue to do his own business, and then take out some money to make serious investments, with his wisdom, although the speed of wealth accumulation may be a little slow, but the second half of his life will certainly be prosperous, but he is eager to achieve success, only want to take shortcuts to make money.
In the 18 years of development of Delong, Tang Wanxin has provided a large number of experiences, lessons and practices for the development of China's private enterprises, which are very rare and can be used as references, especially his practice, which will still affect and warn Chinese enterprises for a long time.
On December 17, 2004, Tang Wanxin, a central figure in China's business community in recent years, was formally arrested on suspicion of illegally profiting from the false absorption of public deposits and manipulating securities trading prices, and was immediately escorted by train from Beijing to Wuhan. The 40-year-old man's life may have been bleak.
It has been rumored that after his release from prison, Tang Wanxin had secret contacts with the old department of the core of the former Delong department to help his old department formulate an investment strategy, and it seems that he intends to re-establish a relationship with the intention of making a comeback. There are also rumors that Tang Wanxin has long been mindless about the capital circle, no longer interested in coming back, and after returning to hiding, he has invested all his energy in the ocean and immersed himself in the study of fishing technology.
He started from scratch, from the owner of the photo shop to the capital tycoon of the storm, from the good name of the good village to the imprisonment of the disease. After a moment of scenery, there is a permanent loneliness.
"Dance hall song stage, the wind is always flowing, the rain blows the wind." Tang Wanxin is only a small past in the vicissitudes of history, for himself, the ups and downs of life, the true taste of which only he can best understand; and for the people of the world, it is Wang is Kou, and he can only be commented on.
Good or bad, life can be so magnificent, enough!