“Manager Feng, all the contracts are signed. We have not missed out any employees.”


    Li Mingde called Feng Yu to report on his progress. This was because, from January 1st this year, China’s Labour Law had been inforced. Allpanies must sign contracts with their employees and must contribute to the social security system.


    When thisw was announced, Feng Yu asked Li Mingde to quickly sign official contracts with all their employees. This was to prevent them from overthinking.


    However, Li Mingde said there was no need for them to do so. Everyone in thepany trust Feng Yu.


    Feng Yu knew that Li Mingde was bootlicking, and all the employees trust Li Mingde more. But Feng Yu still insist Li Mingdeplete the contract signings as soon as possible. He must also exin all the terms in the contract and must not hide anything from the employees.


    The Machinery Company must also pay the social security for all the employees, including those at their branch factories, on time.


    Li Mingde still does no know about the benefits of paying social security. The government will be taking care of all the retired employees instead of thepany. This would help thepany save lots of money.


    Because this was the first year thew had started, those workers who were nearing retirement have the option of paying a lump sum and then still enjoy retirement funds. Of course, this lump sum payment to social security will be borne by thepany and not the worker.


    When Li Mingde announced this news, all the employees were overjoyed. Although they kept saying they trust thepany and Li Mingde, all of them were still worried thepany will not take care of them after their retirement.


    Now, the country promises to take care of them, and they have no more worries.


    Bing City Machinery Company was one of the fastestpanies among all big enterprises toplete the contract signings. Somepany’s leaders were still trying to dy. They wanted to wait until the end of the year. But they did not know thatte payments can incur interest. The interest rates were the same as the banks. The business owners felt that they could have better use for this amount, and the returns will inevitably be higher than the interest incurred.


    But Feng Yu’spanies do not need to do this. All of hispanies had sufficient funds. If Bing City Machinery Company needs to get a bank loan, all the bank managers in Longjiang province will be queuing up at Li Mingde’s office and will try to give their best offer.


    The past two years, the higher-ups had given high targets to the banks for giving out loans. To hit the target, banks simplified their loans procedures.


    Now, the banks hadpleted the mission given to them by the higher-ups, and some banks had even loaned out more than the target. But now, the banks faced a series of problems. Manypanies and individuals were unable to repay their loans!


    The banks had lots of bad debts and cost the banks to suffered massive losses.


    But if the banks loan money to Bing City Machinery Company, they do not need to worry. All of them knew how profitable Bing City Machinery Company was and their products were sold all over China and were even exported to Russia.


    Even if Bing City Machinery Company could not repay their loans, the banks could also recover the debts from auctioning their assets. But Li Mingde rejected all the offers from the banks as thepany does not need any loans.


    If Bing City Machinery Companyck funds, Feng Yu could just inject some money into thepany. Of course, the City will not agree to it as this will dilute their shares. This was a goodpany, and the City does not want their shares to be diluted. Another way was to list thepany on the stock exchange.


    Since the stock exchange was set up in China two years ago, there was an increase in the number of listedpanies. Thesepanies wanted to raise funds for their developments. One of the more sessfulpany was Changhong.


    Changhong was already listed, and Feng Yu knew that they share prices would skyrocket after they got listed. They amassed a substantial fund from the market and expanded their factories, R&D facilities, and marketing.


    Currently, Changhong had be the leader in China’s domestic TV brands. No otherpanies could threaten them of this status in China.


    The Provincial Leaders of where Changhong was located also start to promote Changhong. This was also considered the Province’s achievement. Apany like Changhong had appeared in their province, and how can they not make use of thispany?


    But Feng Yu remembered that Changhong was only sessful for these 2 to 3 years. The management of Changhong will be making a grave mistake soon and resulted in thepany to go downhill.


    Changhong was too confident of their 21-inch color TV and felt this will be mainstream TV in the market. Now, the 21-inch color TV might seem to be the mainstream TV and Changhong had China’s most advanced technology in this field. Their manufacturing cost was also the lowestpared to other foreign MNCs.


    But in another 2 years, the TV will be bigger. 25 inches, 29 inches, 32 inches, 34 inches, and even 42 inches TVs start appearing in the market. All TV manufacturers start to manufacture bigger TV to meet market demand.


    However, Changhong still insists on producing 21 inch TV and did not lower their production. As a result, their TVs were unsold and stuck in their warehouse.


    This was the turning point of thepany, and Changhong fell from being the domestic market leader to number 2. Their cing continues to drop to number 4, etc.


    But now, all these still have not happened yet. Changhong was still able to make lots of profits for the next 3 years.


    The local government was jealous of manypanies’ sess. They realized thatpanies do not need to get loans and could still be able to raise funds and develop quickly.


    Also, after thepany was listed, thepany’s value would increase as the share prices increases. This way, a sessfulpany will appear in the province or city governed by those local authorities. Apany that was worth 100 million might be 300 million RMB after getting listed. The local authorities could brag to their higher-ups and try to get the credit.


    Look, this listed XXXpany was set up when I was in charge of the city. Thispany was only worth 100 million RMB, and now, it’s worth had increased by several folds. The higher-ups will think that this person was good at business. This was the time when the Chinese government emphasizes on the economy. The higher-ups will surely groom this person.


    So, there were arge number ofpanies that were listed. Many of thesepanies did not even reach the minimum requirements of being listed. But this was not important as the local government will help them/ Furthermore, there were lots of loopholes in thews. The number ofpanies getting listed on the stock market had increased by more than 10 timespared to the previous year.


    Some of these listedpanies had grown after being listed, and the investors all made money. But there were manypanies whose shares did not move after they got listed. Somepanies had raised arge sum from the stock market, but all their funds disappeared. The local government had taken the money away, or thepanies’ leaders ran away with the money.


    But no matter what, all the local government felt that getting thepanies under their jurisdictions to be listed on the stock exchange was one way to show the higher-ups how sessful they were. All the local governments wanted more listedpanies to appear.


    Li Mingde was also summoned by his leader for a talk. He wanted Bing City Machinery Company to be listed on the stock exchange!


    This was also one of the reasons why Li Mingde called Feng Yu. He needed Feng Yu’s help.