Reborn Tokyo Golden Age.

Chapter 503 Big Trouble

In 89, Bush was elected president of the United States. Nixon and Gorba visited China one after another, and China officially opened its door to the country.

Also in this year, Neon's stock market reached its peak, and the Nikkei index once hit 38957 points. This number has increased nearly four times since 85.

The daily trading volume of the Tokyo Stock Exchange is 8.8 trillion yen, which is 1.8 times higher than that of the New York Stock Exchange across the ocean.

The total market value exceeds 600 trillion yen, accounting for more than 30% of the global stock market.

In other words, one-third of the wealth of listed companies around the world is concentrated in Neon. There is no doubt that this number is artificially high.

The market value of Neon listed companies is generally overvalued, and at least half of them are bubbles, which of course includes companies under Shirakawa Holdings.

The simplest example, SIC, which has just completed its listing in BeiMi, has a market value of only about US$80 billion.

Although it is likely to rise in the future, 80 billion U.S. dollars converted into Japanese yen is only one trillion yen.

If SIC were listed in Tokyo, its market value could at least double or triple.

SIC's reputation in Neon is obviously much louder than in North America, and it is at the peak of the Neon bubble.

Investment institutions and investors will follow a well-known company like SIC without thinking.

Maybe there will be a scene like the listing of NTT, a sacred stock, because of its state-owned background and the booming development of the communications industry.

After the original Telecom and Telephone Corporation was split into NTT, it was robbed by investors as soon as it went public. The highest price of a single share was 318 million yen.

Yes, one stock sold for 318 million yen, which is definitely an unprecedented record in the history of the neon stock market.

At the beginning, the Ministry of Finance decided to put 186 million stocks into the market, with an initial price of 30 to 40 yen.

As a result, before it was officially released, 119 million yen was charged during the subscription stage by the underwriters.

After the official issuance, the stock price soared by 40 yen that day.

In the next two months, NTT's shares soared to 318 million yen, even pushing the entire Nikkei Index up 22.4%.

Because there were too many people applying to buy stocks at the beginning of the issuance, NTT limited each person to purchase one share, and they could purchase it with their ID card.

As a result, before listing, NTT received 1085 million applications, which is about 10% of the Neon population.

The calculation of ordinary people is very simple. If you win a new stock with a state-owned background, you will definitely make a profit without losing money.

Based on the calculation of more than 100 million new shares, as long as the stock price rises by 30% on the first day, you can earn hundreds of thousands of yen.

In this day and age, the annual income of a family is only about 350-400 million yen.Of course, people flocked to make a month's worth of money in one day.

People think that NTT is a benefit specially given by the government to stock investors, so how could it possibly fall?
So as long as any company buys a stock of NTT, it will invite relatives and friends to have dinner together to celebrate.

Many wives who line up at the entrance of NTT to fill out application forms every day will secretly wipe their tears if they are not selected in the end.

This is the legend of NTT’s legendary stock, and it is also a spectacle that only appeared in the bubble era.

Although SIC is not as well-known as NTT in the public mind, it relies on so many years of operation and the good reputation of Shirakawa Holdings.

It is unrealistic for SIC to increase tenfold like NTT, but it is still possible to increase it by two or three times.

However, its market value in North America is only about 80 billion US dollars. This is because it is as famous as Intel and the market value is reflected in the optimistic attitude of Wall Street.

It can be seen that at this time, the people of North America and the people of Neon had completely different attitudes towards the stock market.

This is also the reason why Subaru’s market value reached three trillion yen even though it was clearly experiencing a business crisis.

The entire Neon stock market is in a bull market, and as long as it doesn't go bankrupt, the stock price won't fall.

Shirakawa Holdings spent a lot of money to become Subaru's largest shareholder. The investment of US$90 billion is indeed very high.

But there is no way. If we don't take action at this time, Subaru will fall into the hands of giants like Toyota.

As Neon has the largest market value, US$90 billion is not difficult for it.

As for entering the market after the bubble?Have you ever seen an automobile group go bankrupt because of the bubble burst?
Impossible, the automobile industry has always been a high-quality asset.Even if Subaru's business is not doing well, there is no shortage of buyers.

Therefore, if Baichuan Holdings wants to enter the market, even if the current market value is in a bubble, he must take action, otherwise there will be no such opportunity in the future.

All of this is closely related to the stock market and the swarming of retail investors.

Of course, the reason why Neon people are keen on stock trading at this time is also inseparable from the various policies of the Neon government.

With the continuous reduction of interest rates in the past few years, bank deposit interest rates have basically remained at around 0.26%.

The interest on this deposit is almost zero.At the same time, the government also levies an Aboriginal tax on residents' deposits, ranging from 5% to 15%.

Originally this was a measure enacted to target the wealthy from tax evasion. However, before the bubble, people generally had the habit of saving money.

Nowadays, as interest rates have dropped to extremely low levels, middle-class families have no choice but to move their money into the stock market or real estate market in order to avoid taxes.

This is one of the reasons why middle-class families are now keen on stock trading. Later, as the returns in the stock market get higher and higher, everyone will naturally continue to invest money in it.

As a result, with the nationwide support, by the end of 89, the stock market had reached a new height that was unique in history.

Also because of the inflated stock market, many companies can obtain the funds needed for operations by going public. At this time, bank loans become dispensable.

What should I do if the bank cannot lend money?Of course, the target is to shift to small and medium-sized enterprises and individual users.Real estate developers, in particular, are banks' largest and best customers.

In the end, bank money entered the real estate industry through these channels, or into the pockets of small and medium-sized enterprises and individual users.

And what do small and medium-sized enterprises and individual users do with the money from bank loans?

The answer is obvious and easy to see, stock trading!Real estate speculation!
Since the appreciation of the yen has made exports unfavorable, small and medium-sized enterprises have encountered a crisis, and Neon has had no time to upgrade its domestic industry.

At this time, most companies can only use some short-term practices to maintain profit growth, and stock trading is the magic weapon to maintain performance.

As of this year, nearly half of Neon’s 1654 listed companies are engaged in investment and financial management business.

Because everyone is keen on the stock market, the export economy at this time has long become a negative growth driver that is holding back.

The performance reflected in corporate financial reports is basically driven by stock market investment.

Even giants like Panasonic have invested as much as 1.1 trillion yen in financial wealth management products.

Yakult, which is famous in later generations of the Chinese dynasty, is not willing to give in too much. Its investment in the financial business department also started in the hundreds of billions.

At this time, the number of hundreds of billions of yen is really just a set of numbers for many neon companies.

Lo and behold, financial companies throughout Japan were influencing each other at this time.

A large amount of bank money flows into real estate, and a large amount of corporate money flows into the stock market.

The prosperity of the real economy is highly bound to asset prices.Once asset prices collapse, there is a chain reaction.

Isn’t the neon government clear about all this?If nothing else, at least the Ministry of Finance is very clear about it.

Especially the newly appointed Mie Yasuno, he sees all the magical aspects of neon.

He hated inflation so much that he watched the price of neon more than quadruple from 70 to 89.

As for the increase in land prices, let alone four times, it can be ten times!
Can this be tolerated?Mie Noyasu, who has a strong personality, dares not even give the chief carp face, so how can he care about the Ministry of Finance?

The several Bank of Japan presidents before him were all "horse boys" of the cabinet's economic policy.

But who is Mie Noyasu?He is a ruthless man determined to make the Bank of Japan independent of the Ministry of Finance.

This time, he wants the Ministry of Finance to become the "horse boy" of his own economic policy, and he wants to lead the Bank of Japan to start suppressing inflation.

So he began to formulate a series of policies to reduce inflation before he was even a full month old after taking office.

The first of these was the yen's interest rate hike at the end of December, from 3.75% to 4.25%.

It seems that the rate hike will be the same as before, only about 0.5%.

But please note that only two months have passed since the last interest rate hike.

The three consecutive interest rate hikes in more than half a year are just like the rapid and violent interest rate cuts in 86. The Bank of Japan's operations are still impatient.

In addition to raising interest rates, the Ministry of Finance has also cooperated in issuing a series of policies to restrict financial investment.

For example, it stipulates requirements to control the total amount of financial loans, and major commercial banks must increase the review of financial loans.

With the introduction of this series of policies, not to mention Beidu Bank, which had been wary for a long time, even many credit institutions felt something unusual.

However, the dream is charming, and not everyone is willing to wake up from this glitz.

These credit institutions, including many banks, are unwilling to link the Bank of Japan's interest rate hikes with the stock market.

Are they slow to respond?Did they really not see the connection?Or maybe it's not that they can't think of it but they dare not think of it?
We know that running a red light is dangerous, but we are not afraid if we run the red light together hand in hand.

Therefore, the current public has not paid any attention to the impact of the Bank of Japan's interest rate hike policy. Everyone is even discussing whether the Nikkei Index will break [-] points next year.

However, it is not that no one noticed the current neon bubble at this time. Economist Yukio Noguchi wrote an article in a financial newspaper, "The current rise in land prices is a bubble."

However, his advice fell on deaf ears in Neon China, and many economists fiercely criticized it.

Nomura Securities even ran advertisements in media around the world to refute the doubt that "Tokyo's stock price is too high."

Almost the entire Japanese securities industry believes that "as far as Japan is concerned, there is no gravity in the stock market."

Of course, not everyone listened. The current Minister of Education, Culture, Sports, Culture, Sports, Science and Technology Gentaro Nakajima smartly began to clear out the stocks and securities under his name.

Because of being with Bai Chuanfeng, he was able to understand the inside operations of many banks and securities institutions.

The conservatism of Beidu Bank and its securities institutions in business has always puzzled him.

He also asked Bai Chuanfeng in a roundabout way why he acted like this. Most of the time, the latter dealt with the situation by saying "just to be on the safe side".

However, when I saw the warning from economists in the newspaper today, I was reminded of the abnormal behavior of other domestic financial institutions and companies.

In particular, these financial institutions are also busy dealing with a large number of non-performing debts in addition to stocks.

Nakajima Gentaro realized that the various corporate governance that were still functioning before have basically lost their effect now.

Breaking out in a cold sweat, he suddenly realized that Japan was going to be in big trouble.

(End of this chapter)