Chapter 91: Inside Information

Over the next few days, Zhu Daodong, along with Dong Jinhai, Hou Feng, and Hu Zhengqing, toured Shanghai to inspect feed equipment. The three machinery factories that Li Yang had found for Zhu Daodong were all top-ranking in the feed equipment industry, but their quotes were relatively high. Zhu Daodong also found two medium-sized factories, whose quotes were lower, but the quality was somewhat lacking. Therefore, Zhu Daodong decided to focus on the three factories recommended by Li Yang. Although it would cost more now, it would save on maintenance expenses in the future, and Zhu Daodong knew how to do the math.

Despite the current tight budget, he insisted on using the best equipment. Each of the three factories had its own strengths, so the final decision on which factory's equipment to use was left to Dong Jinhai, which was also the reason he was invited to Shanghai.

While Dong Jinhai was comparing the three factories in detail, Zhu Daodong had some free time. It was the 19th, the first day of the Industrial and Commercial Bank of China (ICBC) stock subscription certificate sales, so he went to various ICBC branches to check the sales situation. Zhu Daodong mainly wanted to understand the sales of the stock subscription certificates. Although Li Yang would provide the data in the evening, seeing the situation firsthand would help him make the best judgment.

Zhu Daodong visited about ten ICBC branches. The situation at each bank was similar: the counter sales were not very active, with no queues, but they were not cold either, and there was no issue of unsold certificates. It was the first day, so many people might still be观望 (watching and waiting).

However, Zhu Daodong could not afford to wait. The stock subscription certificate sales period was only ten days, and once this opportunity passed, it would not come again.

In the evening, Zhu Daodong met with Li Yang. The first thing Li Yang said was, "Today, we sold over 180,000 subscription certificates."

"Over 180,000? Is that good or bad?" Zhu Daodong asked. "Does that include my 100 certificates?"

"Of course, here they are." Li Yang handed a stack of stock subscription certificates to Zhu Daodong.

The stock subscription certificates were beautifully and intricately designed, with a gold-embossed cover and a core made of four different colored carbon copy papers, possibly the latest printing technology. The core recorded Zhu Daodong's name, ID address, ID number, and the shareholder account number he had just applied for. On the back cover, it was printed in large letters, "Stock market involves risks; enter with caution."

"Thank you." Zhu Daodong carefully put away the subscription certificates. This was his first investment, and he hoped for a good return.

"I should be the one thanking you. Your 100 certificates count as my performance, and I get a one percent commission. I'll treat you to dinner tonight," Li Yang said with a smile.

"Didn't you plan to buy some yourself?" Zhu Daodong asked.

"I have no intention of that. Spending 30 yuan on a piece of paper isn't worth it. By the way, Zhu Daodong, I remember your family situation is just average. Now you're spending 3,000 yuan at once. Did you earn a lot after starting work? Or are you the corrupt deputy township head?" Li Yang shook his head. If he had the money, he would spend it on consumption, shopping, or dating, not on stock subscription certificates. He was very curious about Zhu Daodong's financial situation. Working in a township, one could earn at most a few hundred yuan a month, and to take out 3,000 yuan without hesitation, even he would feel the pain.

"Deputy township head, far from being a township head. But I did earn some extra money. Otherwise, with my salary, I could only stare. Li Yang, I advise you to buy some, at least ten. This is an opportunity," Zhu Daodong nodded.

"I'll pass. I'm not interested in stocks," Li Yang firmly refused. There was a gambling element to it. Selling over 180,000 certificates in one day, and over a million in ten days? What would the chances of winning be? With this money, he'd rather have more fun.

"Alright, I won't force you. By the way, where is the Shanghai Economic System Reform Office?" Zhu Daodong asked. The current regulatory body for the Shanghai stock market was the Shanghai Branch of the People's Bank of China and the Shanghai Economic System Reform Office. The Shanghai Branch of the People's Bank of China was easy to find, as it was on the map, but he couldn't find the Economic System Reform Office.

"It's in the municipal government. Why are you asking about the Economic System Reform Office? You're not going to run there just for 100 stock subscription certificates, are you?" Li Yang laughed exaggeratedly.

"I just want to gather some information," Zhu Daodong smiled mysteriously.

"Do you have a connection in the Economic System Reform Office? I haven't heard of any of our classmates being assigned there," Li Yang asked. He knew Zhu Daodong's connections in Shanghai very well. Apart from himself, there were two other classmates, but their relationship with Zhu Daodong was not very close, so he wouldn't go to them. Besides, those two classmates didn't work in the Economic System Reform Office.

Li Yang had no idea that Zhu Daodong's "gathering information" was really just "listening." Knowing the addresses of the People's Bank of China and the Economic System Reform Office, Zhu Daodong had two more tasks to do each day. Before 8 a.m., he would go to the Economic System Reform Office outside the municipal government. Every morning, various meetings were held at the Economic System Reform Office, which was the perfect time for Zhu Daodong to eavesdrop. Although he was outside the municipal government, about 100 meters from the Economic System Reform Office, he could still hear the voices inside by focusing his hearing to the maximum.

Before work ended, he would go to the People's Bank of China. Every afternoon, the Shanghai Branch of the People's Bank of China held a meeting to summarize the day's activities. For other matters, Zhu Daodong would let them pass through one ear and out the other, but he was particularly interested in stock subscription certificates. Whenever he heard anything related to these five words, he would pay close attention and try to catch every word.

During these days of stock subscription certificate sales, the term "stock subscription certificate" frequently appeared in various meetings at the Economic System Reform Office and the People's Bank of China. This indirectly increased Zhu Daodong's workload. Although he only needed to find a suitable place to sit outside the municipal government or the bank, the distance was close to his limit, making him feel very tired every day.

Three days passed, and Zhu Daodong did not hear any real inside information. During these days, the ICBC's daily sales of stock subscription certificates hovered around 200,000. Now, Zhu Daodong could confidently predict that the sales in the coming days would not deviate much from 200,000. This allowed him to know the approximate sales volume a few days in advance, which was a crucial piece of data.

This key data would help Zhu Daodong determine his next steps. The total sales of stock subscription certificates would be around 2 million. Although this number sounded large, there would be over a dozen stocks listed this year, and a winning subscription certificate could buy at least 100 shares of stock. With his 100 certificates, if just ten were drawn, he would not lose money; it would just be a matter of how much he would earn.

In the middle of these days, Zhu Daodong visited the Shanghai Zhongzheng Machinery Factory, which Dong Jinhai had chosen. Dong Jinhai believed that the feed processing equipment produced by Zhongzheng Machinery Factory was the most suitable for the Shulinling Township feed factory. Therefore, Zhu Daodong went to Zhongzheng Machinery Factory to sign the contract.

A set of feed processing equipment with an annual production capacity of 30,000 tons from Zhongzheng Machinery Factory was priced at 195,000 yuan, which was already above Zhu Daodong's expectations. However, considering the advanced nature of the equipment, he finally decided to go with Zhongzheng's equipment.

When signing the contract with Zhongzheng Machinery Factory, the other party required a 50% advance payment. This time, Zhu Daodong had Hou Feng bring 100,000 yuan to pay the advance. However, Zhu Daodong decided to pay a smaller advance, only 30%, which was less than 60,000 yuan. Considering that Zhu Daodong was a government official and a deputy township head, Zhongzheng Machinery Factory finally agreed to his request.

"Deputy Township Head Zhu, the contract is signed. Should we go back now?" Hou Feng did not understand why Zhu Daodong wanted to leave 20% of the advance payment, but the final decision on the feed factory and the farm was his, and the old party secretary had said to follow Deputy Township Head Zhu, so he did not ask about it.

"No, we need to stay a few more days. Director Dong, this trip to Shanghai has been a great success, and I really appreciate your help. Accountant Hu, you should accompany Director Dong to tour the city tomorrow. Director Dong has done us a great favor, so buying some Shanghai specialties to take back would be a gesture of our gratitude from Shulinling Township," Zhu Daodong said. There were still two days left for the stock subscription certificate sales, and he would not leave now.

Hu Zhengqing accompanied Dong Jinhai to tour Shanghai, while Hou Feng stayed at the hotel, as he still had over 40,000 yuan, which he needed to be cautious with. Zhu Daodong, however, continued to shuttle between the various ICBC branches, the People's Bank of China, and the Economic System Reform Office. On the second-to-last day, Zhu Daodong heard a real piece of inside information, which suddenly made him decide to buy a large number of stock subscription certificates!