Chapter 248 Lu Feng’s True Purpose
"Lv Feng, what do you mean?" The young man representing the Financial Bureau spoke.
This man was in his early thirties and appeared very powerful. He sat next to Wei Linchang, an expert from the People's Bank of China. Among the six people, his status was second only to Wei Linchang.
"You are the one who called for regulation, and you are the one who created the problem. We are now trying to clean up your mess, but this is your attitude?"
"What is this person's name?" Lu Feng asked.
In fact, he had already seen the list of the temporary supervisory team. The person's name was Cai Yue, a top student in the Finance Department.
"Don't worry about my name. I'm asking you now. What exactly do you mean by what you just said? Are you trying to say that we are deliberately making things difficult for you?"
Facing his challenge, Lu Feng did not get angry, but glanced at everyone calmly and said: "Dear leaders, Zhongbo is aware of the possible problems with this model, so it actively seeks supervision in order to protect the interests of all investors. However, seeking supervision does not mean that we really have problems at this stage. If you come with such an attitude, I think it would be better to just issue an announcement and let the trading center close down."
Everyone was stunned.
Since the establishment of the temporary group, they have indeed been pushing this matter forward with a leadership attitude. The starting point is that Zhongbo has encountered major problems and they need to solve them.
But, is there any problem with Zhongbo Trading Center now?
Obviously not! Not only that, but it is also working very successfully, as everyone can see.
Cai Yue wanted to say something, but Wei Linchang held him down. "Director Cai, Lu Feng is right. We are here to treat diseases before they occur. We can listen to their demands first. After all, we don't know much about them."
As an expert of the People's Bank of China, Wei Linchang's status is far higher than that of the others, which is related to the People's Bank of China's transcendent status.
"Thank you for your understanding, leader." Lu Feng nodded to express his gratitude and continued, "Then let's talk about the four requirements of supervision."
"Among them, we agree very much with the first point. Handing over funds to the settlement center can ensure the safety of users' funds, and handing over data to the Beijing Stock Exchange can prevent data leakage and related staff from using data to make profits. But have you ever thought about the necessity of the third regulatory requirement, since all funds and data have been handed over?"
"Without access to core data, the platform staff are just ordinary service personnel after all. All they can do every day is to issue announcements, conduct appraisals, and enter and exit the warehouse. Why can't they participate in transactions?"
"This trading model is about equality for everyone. After all, isn't it just an ordinary trading software that lowers the investment threshold for ordinary people to prevent them from being cheated? Now, the platform staff are inferior. I think the starting point is wrong."
"As long as the data is not in our hands, why can't the platform staff do business on their own platform? Even securities practitioners have the right to trade, right? Or do the leaders not trust the regulators' ability to maintain confidentiality and think there is a possibility of leakage or conflicts of interest with the platform staff?"
Wei Linchang frowned.
The others also looked at each other.
Their starting point is good, but Lu Feng's point of view is irrefutable.
These two points are indeed contradictory. Without core data, there is no difference between the platform staff and ordinary members. Even the data that Lv Feng can see is the same as that of ordinary people.
Why bother?
"So what do you mean?" Wei Linchang suddenly realized that the young man in front of him was different from the market merchants he had met before.
When facing these official representatives, he did not show the slightest fear. Instead, he was neither humble nor arrogant. He discussed the issues based on facts and convinced them with reason. More importantly, his views were sharp and he was able to find loopholes.
What a talent indeed!
“My meaning is very simple. We hand over all the funds and data completely. The daily transaction data disclosure is sent to our editors by the regulators. We only do simple publishing and explanation work. In this way, the purity of our service can be fully guaranteed.”
“But at the same time, we must ensure that platform staff can participate in any form of transactions just like ordinary investors.”
Wei Linchang hesitated for a moment, then nodded and said, "What you said makes sense. I'll write it down and we'll discuss it further after the meeting."
"Okay! Thank you, leader!" Lu Feng expressed his gratitude and said, "Now, let's talk about the second point, unconditional and regular opening of positions to ensure normal circulation on the plate and in the market. I think this is difficult to achieve, at least with the current staffing and structure, it cannot be achieved for the time being."
"I agree with the purpose of doing this. But we have to consider the workload. Now, there are only dozens of varieties on the market, so it is indeed possible to do so, but what if the number of varieties reaches hundreds or thousands?"
"We open warehouses at regular intervals every day. Once the market price fluctuates greatly, a large amount of goods will definitely rush in that day. How can we ensure that these goods can be disposed of in a timely manner?"
"The model of the trading center is different from that of Yichen Interactive in that it is pre-identified, and the quality of the collection is guaranteed by the trading center. In addition to identification, each entry into the warehouse requires filling out the relevant warehouse receipt and entering relevant data before the entry into the warehouse for trading."
"If we want to meet the timeliness requirements, we need at least a thousand staff members. The cost alone is hard to sustain."
Lu Feng calculated that according to their idea, with so many people, the venue and personnel expenses that need to be paid every month would be at least tens of millions.
How can we survive with hundreds of millions of dollars in personnel expenses every year?
Can the platform guarantee long-term high profits? Obviously it is difficult, especially when it has to constantly extract water to pay for additional expenses.
Wei Linchang was completely stumped. He turned around and looked at the experts around him.
"It's really difficult," someone said. After all, they have to consider economic benefits when taking on the job of supervision.
It's not charity!
Originally, the regulatory team should have been on the stronger side in this meeting, but judging from the current situation, they are at a disadvantage instead.
The reason is simple: they are also laymen in this model.
The disadvantage of laymen leading professionals is that too many things are taken for granted.
"Ms. Liu, what do you think about this?" Wei Linchang saw that the other people also kept their heads down and remained silent, and had no way to solve the problem, so he couldn't help but look at Liu Jiajia.
On the contrary, in their view, Liu Jiajia is closest to the market and represents the market.
"How to solve this problem doesn't seem to be something we regulators need to consider, right?" Liu Jiajia said with a smile.
"This falls within the scope of service. As for how to solve the manpower problem and optimize the process, I think Zhongbo should take the lead."
A word to awaken the dreamer.
As soon as Liu Jiajia finished speaking, Wei Linchang's eyes lit up.
"Yes, our goal is to reduce the price difference between the market and the physical market. As for what should be done in the middle, the operation still needs to be done by Zhongbo. Mr. Lu can come up with his own ideas."
"It's actually very simple." Lu Feng smiled, "Delegating the authority to identify and store the products to the first-level agents."
Wei Linchang thought about it and felt that it was somewhat feasible, but there was still a problem. "How can we ensure the ability of the first-level agent and the safety of the goods?"
"The pre-warehousing system can solve the problem." Then, Lu Feng proposed a solution to the problem, which was recognized by Wei Linchang.
The two sides finally reached a consensus on the second regulatory requirement. When Lu Feng picked up the letter again and set his eyes on the fourth point, everyone subconsciously straightened up.
Know that the highlight is coming!
Sure enough, Lu Feng's voice became low.
"I don't know who came up with the fourth point. You must be kidding me." Lu Feng sneered and said bluntly, "If I put out a billion yuan in margin to guarantee the interests of all investors and ensure that they will never lose money, then there is no risk at all. What is the point of supervision?"
This really doesn't stand up to scrutiny.
Who knew that this time, Wei Linchang did not speak, but turned to look at Cai Yue.
After all, the other points were raised by people related to their industry, but the Financial Bureau, which raised the last point, has nothing to do with this industry.
Facing Lu Feng's doubts, Cai Yue did not compromise at all, but said calmly: "One billion is a guarantee at this stage, not a guarantee for the future. We have no way of knowing how big the problem is before we take over."
"Anyway, from the perspective of safety, I want to guarantee it 100%. We can ensure that every step after the takeover is legal and compliant, but we cannot guarantee things before the takeover. This is the role of 1 billion yuan."
Lu Feng looked at him and asked with a smile: "Director Cai, do you know how much money Zhongbo can make every year according to the current situation?"
"With 60 million, the daily transaction fee is about , which is about million a year. Of this, % is the commission of the agent members, which is about million left."
"After the Financial Bureau and the Beijing Stock Exchange intervened, they had to share 50% of the profits according to the regulatory configuration, which means that our gross profit was only about million."
"The platform currently has a total of 80 people, and the average monthly personnel expenditure is between 100 and million. Let's calculate it as million per year."
"At best, Zhongbo will get 10 million."
Lu Feng stared at Cai Yue and suddenly asked another question.
"Does the leader know how much the annual interest would be if one billion yuan was deposited in a bank for more than five years?"
"Based on the Agricultural Bank's large-amount loan of , it is 3600 million per year."
Lu Feng did not continue speaking, but the point he wanted to make was already very clear.
Working so hard, losing more than 2000 million a year!
This is Lu Feng’s economic account.
Cai Yue's face was as gloomy as water. For supervision, safety is indeed the first priority, but what about a private enterprise?
If this business is destined to lose tens of millions every year, then what's the point of doing it!
For a moment, everyone's eyes fell on Cai Yue.
Cai Yue's mouth twitched, and he gritted his teeth and said, "If that's the case, then there's nothing to discuss. Unless the Financial Bureau withdraws, there's no room for negotiation on this condition."
Everyone instantly realized that this so-called regulatory requirement was probably not something Cai Yue could control.
There is a higher level behind the scenes giving the order.
Wei Linchang had never expected this result. The first three items were about to have results, and he could have a good explanation, but now he encountered an unsolvable problem.
In the conference room, you can hear a pin drop.
After a long while, Wei Linchang coughed a few times and said to Cai Yue, "Director Cai, how about we communicate again?"
This is a euphemism, meaning that Cai Yue should communicate with the higher-ups so that this matter can be moved forward.
"How about this!" Lu Feng suddenly spoke, attracting everyone's attention.
The representative from China and Bolivia, who had been silent all this time, suddenly turned around and stared at Lu Feng.
They were somewhat puzzled as to why Lu Feng had raised the level of confrontation right from the start today, and now that the negotiations had reached a dead end, it was even more confusing.
But they all knew that building a trading platform was Lu Feng’s dream, and he absolutely wanted to push it forward.
This is full of contradictions and weirdness.
Liu Jiajia looked at Lu Feng with a look of disappointment, wondering what he could come up with next.
"This is an unsolvable problem." Lu Feng sighed and said helplessly, "As a private enterprise, Zhongbo must consider the company's profitability and survival. Since the Financial Bureau has a rigid requirement and we can't change it, we can only look for opportunities from other parties."
Everyone is puzzled.
Lu Feng looked at Wei Linchang and suddenly smiled and said, "Mr. Wei, why don't you give Zhongbo a chance?"
Wei Linchang was very confused and asked, "What does Mr. Lu mean? Just tell me directly."
He really wanted to push this matter forward as soon as possible. After all, it would benefit all parties.
But now the Financial Bureau's requirements are stuck, leaving him helpless. After all, they are two different systems, and he can't say anything.
"What I mean is, can the People's Bank of China, the Financial Secretary and the Postal Administration give us the authorization to recover some of our losses?"
"Ah?" Wei Linchang was stunned for a moment, and quickly realized what Lu Feng wanted.
The most first-hand supply channel! The agency qualifications of the three major issuing institutions! It has always been firmly held at the top, especially by the Li family.
Lv Feng smiled and said, "It is indeed difficult for us to bear the loss of tens of millions a year, but as you know, Mr. Wei, Zhongbo has developed to this point and is fully capable of taking on some sales tasks from the three major issuing agencies. We will not lose to any company or agency already in the market."
What Lu Feng said was the truth. With Zhongbo's current capabilities, sales would definitely be no problem. If the collections were put on electronic trading, it would be even more advantageous.
However, after so many years of solidification, the top-level supply channels have long become a tool for certain families to make money without doing anything.
What Lu Feng needs to do now is to pry this stone slab.
"Mr. Lu, this matter involves too many things. I'm afraid we can't give you an answer." Wei Linchang said.
"It's okay. This is just the first negotiation. Take your time."
(End of this chapter)
"Lv Feng, what do you mean?" The young man representing the Financial Bureau spoke.
This man was in his early thirties and appeared very powerful. He sat next to Wei Linchang, an expert from the People's Bank of China. Among the six people, his status was second only to Wei Linchang.
"You are the one who called for regulation, and you are the one who created the problem. We are now trying to clean up your mess, but this is your attitude?"
"What is this person's name?" Lu Feng asked.
In fact, he had already seen the list of the temporary supervisory team. The person's name was Cai Yue, a top student in the Finance Department.
"Don't worry about my name. I'm asking you now. What exactly do you mean by what you just said? Are you trying to say that we are deliberately making things difficult for you?"
Facing his challenge, Lu Feng did not get angry, but glanced at everyone calmly and said: "Dear leaders, Zhongbo is aware of the possible problems with this model, so it actively seeks supervision in order to protect the interests of all investors. However, seeking supervision does not mean that we really have problems at this stage. If you come with such an attitude, I think it would be better to just issue an announcement and let the trading center close down."
Everyone was stunned.
Since the establishment of the temporary group, they have indeed been pushing this matter forward with a leadership attitude. The starting point is that Zhongbo has encountered major problems and they need to solve them.
But, is there any problem with Zhongbo Trading Center now?
Obviously not! Not only that, but it is also working very successfully, as everyone can see.
Cai Yue wanted to say something, but Wei Linchang held him down. "Director Cai, Lu Feng is right. We are here to treat diseases before they occur. We can listen to their demands first. After all, we don't know much about them."
As an expert of the People's Bank of China, Wei Linchang's status is far higher than that of the others, which is related to the People's Bank of China's transcendent status.
"Thank you for your understanding, leader." Lu Feng nodded to express his gratitude and continued, "Then let's talk about the four requirements of supervision."
"Among them, we agree very much with the first point. Handing over funds to the settlement center can ensure the safety of users' funds, and handing over data to the Beijing Stock Exchange can prevent data leakage and related staff from using data to make profits. But have you ever thought about the necessity of the third regulatory requirement, since all funds and data have been handed over?"
"Without access to core data, the platform staff are just ordinary service personnel after all. All they can do every day is to issue announcements, conduct appraisals, and enter and exit the warehouse. Why can't they participate in transactions?"
"This trading model is about equality for everyone. After all, isn't it just an ordinary trading software that lowers the investment threshold for ordinary people to prevent them from being cheated? Now, the platform staff are inferior. I think the starting point is wrong."
"As long as the data is not in our hands, why can't the platform staff do business on their own platform? Even securities practitioners have the right to trade, right? Or do the leaders not trust the regulators' ability to maintain confidentiality and think there is a possibility of leakage or conflicts of interest with the platform staff?"
Wei Linchang frowned.
The others also looked at each other.
Their starting point is good, but Lu Feng's point of view is irrefutable.
These two points are indeed contradictory. Without core data, there is no difference between the platform staff and ordinary members. Even the data that Lv Feng can see is the same as that of ordinary people.
Why bother?
"So what do you mean?" Wei Linchang suddenly realized that the young man in front of him was different from the market merchants he had met before.
When facing these official representatives, he did not show the slightest fear. Instead, he was neither humble nor arrogant. He discussed the issues based on facts and convinced them with reason. More importantly, his views were sharp and he was able to find loopholes.
What a talent indeed!
“My meaning is very simple. We hand over all the funds and data completely. The daily transaction data disclosure is sent to our editors by the regulators. We only do simple publishing and explanation work. In this way, the purity of our service can be fully guaranteed.”
“But at the same time, we must ensure that platform staff can participate in any form of transactions just like ordinary investors.”
Wei Linchang hesitated for a moment, then nodded and said, "What you said makes sense. I'll write it down and we'll discuss it further after the meeting."
"Okay! Thank you, leader!" Lu Feng expressed his gratitude and said, "Now, let's talk about the second point, unconditional and regular opening of positions to ensure normal circulation on the plate and in the market. I think this is difficult to achieve, at least with the current staffing and structure, it cannot be achieved for the time being."
"I agree with the purpose of doing this. But we have to consider the workload. Now, there are only dozens of varieties on the market, so it is indeed possible to do so, but what if the number of varieties reaches hundreds or thousands?"
"We open warehouses at regular intervals every day. Once the market price fluctuates greatly, a large amount of goods will definitely rush in that day. How can we ensure that these goods can be disposed of in a timely manner?"
"The model of the trading center is different from that of Yichen Interactive in that it is pre-identified, and the quality of the collection is guaranteed by the trading center. In addition to identification, each entry into the warehouse requires filling out the relevant warehouse receipt and entering relevant data before the entry into the warehouse for trading."
"If we want to meet the timeliness requirements, we need at least a thousand staff members. The cost alone is hard to sustain."
Lu Feng calculated that according to their idea, with so many people, the venue and personnel expenses that need to be paid every month would be at least tens of millions.
How can we survive with hundreds of millions of dollars in personnel expenses every year?
Can the platform guarantee long-term high profits? Obviously it is difficult, especially when it has to constantly extract water to pay for additional expenses.
Wei Linchang was completely stumped. He turned around and looked at the experts around him.
"It's really difficult," someone said. After all, they have to consider economic benefits when taking on the job of supervision.
It's not charity!
Originally, the regulatory team should have been on the stronger side in this meeting, but judging from the current situation, they are at a disadvantage instead.
The reason is simple: they are also laymen in this model.
The disadvantage of laymen leading professionals is that too many things are taken for granted.
"Ms. Liu, what do you think about this?" Wei Linchang saw that the other people also kept their heads down and remained silent, and had no way to solve the problem, so he couldn't help but look at Liu Jiajia.
On the contrary, in their view, Liu Jiajia is closest to the market and represents the market.
"How to solve this problem doesn't seem to be something we regulators need to consider, right?" Liu Jiajia said with a smile.
"This falls within the scope of service. As for how to solve the manpower problem and optimize the process, I think Zhongbo should take the lead."
A word to awaken the dreamer.
As soon as Liu Jiajia finished speaking, Wei Linchang's eyes lit up.
"Yes, our goal is to reduce the price difference between the market and the physical market. As for what should be done in the middle, the operation still needs to be done by Zhongbo. Mr. Lu can come up with his own ideas."
"It's actually very simple." Lu Feng smiled, "Delegating the authority to identify and store the products to the first-level agents."
Wei Linchang thought about it and felt that it was somewhat feasible, but there was still a problem. "How can we ensure the ability of the first-level agent and the safety of the goods?"
"The pre-warehousing system can solve the problem." Then, Lu Feng proposed a solution to the problem, which was recognized by Wei Linchang.
The two sides finally reached a consensus on the second regulatory requirement. When Lu Feng picked up the letter again and set his eyes on the fourth point, everyone subconsciously straightened up.
Know that the highlight is coming!
Sure enough, Lu Feng's voice became low.
"I don't know who came up with the fourth point. You must be kidding me." Lu Feng sneered and said bluntly, "If I put out a billion yuan in margin to guarantee the interests of all investors and ensure that they will never lose money, then there is no risk at all. What is the point of supervision?"
This really doesn't stand up to scrutiny.
Who knew that this time, Wei Linchang did not speak, but turned to look at Cai Yue.
After all, the other points were raised by people related to their industry, but the Financial Bureau, which raised the last point, has nothing to do with this industry.
Facing Lu Feng's doubts, Cai Yue did not compromise at all, but said calmly: "One billion is a guarantee at this stage, not a guarantee for the future. We have no way of knowing how big the problem is before we take over."
"Anyway, from the perspective of safety, I want to guarantee it 100%. We can ensure that every step after the takeover is legal and compliant, but we cannot guarantee things before the takeover. This is the role of 1 billion yuan."
Lu Feng looked at him and asked with a smile: "Director Cai, do you know how much money Zhongbo can make every year according to the current situation?"
"With 60 million, the daily transaction fee is about , which is about million a year. Of this, % is the commission of the agent members, which is about million left."
"After the Financial Bureau and the Beijing Stock Exchange intervened, they had to share 50% of the profits according to the regulatory configuration, which means that our gross profit was only about million."
"The platform currently has a total of 80 people, and the average monthly personnel expenditure is between 100 and million. Let's calculate it as million per year."
"At best, Zhongbo will get 10 million."
Lu Feng stared at Cai Yue and suddenly asked another question.
"Does the leader know how much the annual interest would be if one billion yuan was deposited in a bank for more than five years?"
"Based on the Agricultural Bank's large-amount loan of , it is 3600 million per year."
Lu Feng did not continue speaking, but the point he wanted to make was already very clear.
Working so hard, losing more than 2000 million a year!
This is Lu Feng’s economic account.
Cai Yue's face was as gloomy as water. For supervision, safety is indeed the first priority, but what about a private enterprise?
If this business is destined to lose tens of millions every year, then what's the point of doing it!
For a moment, everyone's eyes fell on Cai Yue.
Cai Yue's mouth twitched, and he gritted his teeth and said, "If that's the case, then there's nothing to discuss. Unless the Financial Bureau withdraws, there's no room for negotiation on this condition."
Everyone instantly realized that this so-called regulatory requirement was probably not something Cai Yue could control.
There is a higher level behind the scenes giving the order.
Wei Linchang had never expected this result. The first three items were about to have results, and he could have a good explanation, but now he encountered an unsolvable problem.
In the conference room, you can hear a pin drop.
After a long while, Wei Linchang coughed a few times and said to Cai Yue, "Director Cai, how about we communicate again?"
This is a euphemism, meaning that Cai Yue should communicate with the higher-ups so that this matter can be moved forward.
"How about this!" Lu Feng suddenly spoke, attracting everyone's attention.
The representative from China and Bolivia, who had been silent all this time, suddenly turned around and stared at Lu Feng.
They were somewhat puzzled as to why Lu Feng had raised the level of confrontation right from the start today, and now that the negotiations had reached a dead end, it was even more confusing.
But they all knew that building a trading platform was Lu Feng’s dream, and he absolutely wanted to push it forward.
This is full of contradictions and weirdness.
Liu Jiajia looked at Lu Feng with a look of disappointment, wondering what he could come up with next.
"This is an unsolvable problem." Lu Feng sighed and said helplessly, "As a private enterprise, Zhongbo must consider the company's profitability and survival. Since the Financial Bureau has a rigid requirement and we can't change it, we can only look for opportunities from other parties."
Everyone is puzzled.
Lu Feng looked at Wei Linchang and suddenly smiled and said, "Mr. Wei, why don't you give Zhongbo a chance?"
Wei Linchang was very confused and asked, "What does Mr. Lu mean? Just tell me directly."
He really wanted to push this matter forward as soon as possible. After all, it would benefit all parties.
But now the Financial Bureau's requirements are stuck, leaving him helpless. After all, they are two different systems, and he can't say anything.
"What I mean is, can the People's Bank of China, the Financial Secretary and the Postal Administration give us the authorization to recover some of our losses?"
"Ah?" Wei Linchang was stunned for a moment, and quickly realized what Lu Feng wanted.
The most first-hand supply channel! The agency qualifications of the three major issuing institutions! It has always been firmly held at the top, especially by the Li family.
Lv Feng smiled and said, "It is indeed difficult for us to bear the loss of tens of millions a year, but as you know, Mr. Wei, Zhongbo has developed to this point and is fully capable of taking on some sales tasks from the three major issuing agencies. We will not lose to any company or agency already in the market."
What Lu Feng said was the truth. With Zhongbo's current capabilities, sales would definitely be no problem. If the collections were put on electronic trading, it would be even more advantageous.
However, after so many years of solidification, the top-level supply channels have long become a tool for certain families to make money without doing anything.
What Lu Feng needs to do now is to pry this stone slab.
"Mr. Lu, this matter involves too many things. I'm afraid we can't give you an answer." Wei Linchang said.
"It's okay. This is just the first negotiation. Take your time."
(End of this chapter)
