Interview With Mr. Yu Gang, One Of The Chief Managers Of The Stock Exchange Of China

In 2020, China's capital market will be established in 30 years.

The capital market has experienced many stages of development from a young and mature capital market.

On December 18, 2018, Yu guogang, one of the main organizers of Shenzhen Stock Exchange and former deputy general manager (legal representative), won the title of "reform pioneer" as "practitioner of capital market development".

In 1983, Yu guogang was sent to Japan to study securities and securities trading because of his Japanese major and knowledge of Finance and securities. In November 1988, the Shenzhen Municipal Government's leading group on capital market was set up to set up the Shenzhen Stock Exchange. Yu guogang became Zhang Hongyi, vice mayor of Shenzhen and leader of Shenzhen capital market leading group.

Yu guogang, as the leader of the expert group, led his colleagues to translate more than 2 million words of foreign securities materials in less than half a year, learned from the laws, regulations and business rules of overseas securities markets, and took the lead in drafting important documents such as the articles of association of Shenzhen Stock Exchange, which laid the institutional foundation of Shenzhen Stock Exchange and promoted the standardized development of China's securities market.

In addition, Shenzhen stock exchange is still in the leading position in the world in terms of stock exchange's synchronous operation.

In the most weak period of the capital market, Shenzhen stock market suffered the first serious stock disaster since its establishment. Shenzhen stock market fell for nine months in a row. On April 22, 1991, there was no transaction. Under the leadership of the Shenzhen Municipal Party committee and municipal government, the management organization represented by Yu guogang took a series of measures to rescue the market and fought side by side with Jin Ming, the person in charge of "Shenzhen stock market regulation fund" To stabilize the "deep development" of leading stocks, drive the market upward, restore the confidence of investors, and make the Shenzhen Stock Exchange "avoid premature death".

This 70 year old man participated in and witnessed the development of China's capital market from scratch, from small to large, from regional to national development. He impressed us most with his preciseness, carefulness and generosity.

On the day of the visit, we informed Mr. Yu guogang that we had arrived at the community through the security guard. After going upstairs, there are three pairs of slippers for us to change. The interior is very tidy and spotless. On the white wall of the living room, there are several mounted historical materials, calligraphy and paintings. The calligraphy and painting are all made by Mr. Lao, and there are also Japanese messages about China's capital market. Tea table, corner also placed a number of green plants, delicate and neat, green to drop. In his spare time, the old man would play an accordion and sing two verses.

Although he is old and thin, he is still vigorous and energetic. He has an excellent memory. He can remember the details of history clearly. The interview is getting better and better. When he talks about the exciting places, he often uses his hands to compare them.

"We're very small, securities." When talking about preparing for the establishment of the Shenzhen Stock Exchange and promoting the "four modernizations", Yu guogang concluded, "this is the pride of the Chinese people. As the party concerned at that time, under the leadership of the Shenzhen Municipal Party committee and government, we did what we should do and did our best."

On April 29, 2020, the registration system reform of gem was officially launched, and Shenzhen Stock Exchange also entered a new stage of reform. Yu guogang is eager for the future of the capital market. In his opinion, Shenzhen's high-tech enterprises are in the forefront of the country, and the CSRC has also issued 12 reform and development measures, "I believe that our market will be better and better, and we will be able to truly build China's capital market into a booster to promote high-quality economic development. I believe that China's capital market can fulfill its historical mission and make greater contributions. ".

The birth of Shenzhen Stock Exchange

Today, Yu guogang is very grateful to Li Hao, the then Secretary and mayor of Shenzhen Municipal Committee, who proposed to establish the Shenzhen Stock Exchange.

In May 1988, Li Hao came back from an inspection tour in Britain and decided to establish the Shenzhen Stock Exchange. Prior to this, Shenzhen had already had the first publicly issued stock in China in 1983 - Shenzhen Baoan. Since 1987, Shenzhen has had Shenzhen development, Shenzhen Vanke, Shenzhen Jintian, shenanda, shenyuanye and other stocks, which are traded over the counter, but the Shenzhen Stock Exchange has not yet been established.

Zhang Hongyi, deputy mayor of Shenzhen Stock Exchange, immediately established the preparatory work under the leadership of the Shenzhen municipal government. Yu guogang, who had gone to Japan to study securities and securities trading, was immediately recruited by Zhang Hongyi as the leader of the expert group and Zhou Daozhi as the deputy leader.

Yu guogang and Zhou Daozhi have translated more than 2 million words of overseas securities information in less than half a year. Zhang Hongyi organized experts from all over the world to draw lessons from these overseas laws and regulations, and conducted more than ten demonstrations and finalization. In addition, the internal rules and regulations of the Shenzhen stock exchange were added later, forming the "compilation of information on the preparation for the establishment of Shenzhen Stock Exchange", referred to as the "blue book".

It was not until the Shanghai Stock Exchange announced its "opening" at the end of 1990. With the support of Li Hao, the Shenzhen Municipal Party committee and municipal government made use of the special policies and flexible measures given by the central government to the special economic zone to let the Shenzhen Stock Exchange take the lead in centralized trading on December 1, 1990, which laid a solid foundation for the establishment of China's capital market. On April 16, 1991, Shenzhen Stock Exchange obtained the approval document issued by the people's Bank of China with the approval of the State Council, which is compared to the "birth certificate" in the industry.

21st century: how long is the preparation for the Shenzhen Stock Exchange? Have you encountered any special difficulties in the preparation process and how to solve them?

Yu guogang: no rules, no square. First of all, we worked out the draft rules and regulations. On September 8, 1989, Zhou Daozhi, deputy group leader and I wrote the request for instructions on the establishment of Shenzhen Stock Exchange, which together with the draft regulations and articles of association, was submitted to the municipal government for approval. Those laws and regulations are basically finalized. On November 15, 1989, the Shenzhen municipal government issued the reply on Approving the establishment of Shenzhen Stock Exchange. You see, this is the speed and efficiency of Shenzhen.

When Wang Jian and I were in charge of the Shenzhen Stock Exchange's preparations in May 1990, we went to Shenzhen Stock Exchange to complete all the preparatory work. At that time, the financial secretary of the people's Bank of China, Mr. Jin Tai, said that this was the name of the people's Bank of China.

Why does he say sensitive? Because at that time, you were going to build a stock exchange, which was once regarded as a symbol of capitalism. So director Jin Jiandong suggested that we change our name to Shenzhen stock market.

I don't accept it. For example, my name is "Shenzhen Stock Exchange", which is translated into English as Shenzhen Stock Exchange. You can get me a Shenzhen stock market. I translate it into Shenzhen stock market. Foreigners really don't understand it. The world is called exchange, right? So he came back without criticizing us.

21st century: then how did this difficulty be solved?

Yu guogang: on November 22, 1990, Secretary Li Hao took mayor Zheng Liangyu, Vice Mayor Zhang Hongyi, and President of Shenzhen Special Economic Zone Branch of the people's Bank of China to the preparatory group of Shenzhen Stock Exchange. As soon as Secretary Li Hao arrived at the door of our conference room and did not wait to sit on the sofa, he said, "today we are here to make a decision."

Of course, I know what board he is going to take. We have reported to him that there were various drawbacks in the over-the-counter trading at that time. For example, the market was not transparent, the 12 securities departments were in disorderly competition, the prices were not unified, the information was not unified, the insider trading was prevalent, and the illegal transfer of ownership In order to cure the Shenzhen stock market, we must run the Shenzhen Stock Exchange which has been prepared for a long time as soon as possible, and let the "old five stocks" of Shenzhen stock market enter the Shenzhen stock exchange for Centralized Trading (but at that time, the establishment of the Shenzhen Stock Exchange was not approved, and there was a certain controversy whether the Shenzhen Stock Exchange should be opened or not).

On that day, Secretary Li Hao, mayor Zheng Liangyu and vice mayor Zhang Hongyi worked in the preparatory group of Shenzhen Stock Exchange and listened to our report on the preparatory work. At that time, Yota bought and sold, and then we made a bid. This is a good bid for everything. Then the computer screen, large screen display is the market trading simulation of the actual situation, see everyone out of mind.

Then Secretary Li Hao said, "look, everything is ready. Why not open it? However, he also knows that there are different opinions within us. It is necessary to take risks to open a business, but if we do not, there may not be a Shenzhen Stock Exchange. Therefore, Secretary Li Hao made a decision: Shenzhen stock exchange took the lead in centralized trading on December 1, 1990. On April 16, 1991, with the approval of the State Council, the people's Bank of China issued a "birth certificate" to the Shenzhen Stock Exchange. Figuratively speaking, the Shanghai Stock Exchange is "take the birth certificate before giving birth", and the Shenzhen stock exchange is "take the birth certificate after the husband and child".

Why adhere to the "four modernizations"

In his career, Yu guogang not only established the Shenzhen stock exchange with Wang Jian and other old colleagues under the leadership of the Shenzhen Municipal Party committee and government, but also made him very proud of the fact that he promoted the simultaneous realization of "four modernizations" in Shenzhen Stock Exchange, namely, computerization of trading, paperless settlement, satellite communication and no lobby operation. This far sighted decision also makes the Shenzhen Stock Exchange's stock trading system technology level still in the leading position in the world.

On November 26, 2019, the Pakistan stock exchange chose Shenzhen Stock Exchange in the computer automatic matchmaking trading and market supervision software auction and bidding trading provided by global suppliers, and the two sides signed the agreement on upgrading the trading and monitoring system. This is the first time that Shenzhen stock exchange technology system competes with the world's top system suppliers in the international arena and wins, opening the way for China's securities technology system to go abroad.

21st century: Computerization of trading, paperless settlement, satellite communication and no hall operation are important milestones in the technical progress of Shenzhen Stock Exchange. What makes you insist that the "four modernizations" must be realized in Shenzhen Stock Exchange?

Yu guogang: first, the computerization of trading is to learn from Nasdaq in the United States, but the Shenzhen Stock Exchange has gone further than it. Why do you say that? NASDAQ trading, although it can only reveal the U.S. market, can not be computerized. Inspired by it, what we have implemented is computer automatic matchmaking, as well as satellite communication system for market disclosure, transaction returns and information disclosure. Shenzhen Stock Exchange has the world's leading computer trading speed. (the new generation trading system officially put into operation in June 2016 in Shenzhen Stock Exchange) can handle more than 300000 orders in one second, that is to say, with your eyes blinking, our computer system now gives you 300000 securities transactions.

Second, there is no hall operation, which is also similar to that of NASDAQ. Since the establishment of NASDAQ in 1971, there was no hall operation, but it is only a national automatic quotation system.

Third, no paper delivery. Because when our expert group translated the materials in 1988, I knew that the Singapore stock exchange had realized paperless trading and settlement as early as 1987. Because Singapore is too small, 680 square kilometers, and it is short of resources, so every time it issues stocks, the cost of printing paper stock is high, and it does not want to increase expenses. It uses paperless electronic accounting, which is more convenient, and is not afraid of stealing, losing or robbing. So when we translate materials, we aim at paperless operation, write it into the trading system of our Shenzhen Stock Exchange and apply it.

Fourth, satellite communication was invented by Wang Hou, chief engineer of Shenzhen Stock Exchange. When Shenzhen Stock Exchange serves the whole country, the most difficult thing is information transmission. At that time, there was only one X.25 data exchange network and special telephone line. The quality of this X.25 data exchange network was very unstable.

Wang Hou, my assistant and chief engineer of Shenzhen Stock Exchange, thought hard. One day, he looked at the blue sky from his window and gave him an idea: we can use satellites as our communication tools. I asked him to go to the Beijing Aerospace Center to find the Fifth Academy of Astronautics, which is specially responsible for satellites. If the two knowledge are integrated together, we can get this thing out. Later, the Shanghai Stock Exchange also used our satellite communication technology. Therefore, I have no shame to say that the "four modernizations" of the Shenzhen Stock Exchange are really our own inventions with the help of foreign advanced achievements.

21st century: How did the "four modernizations" come about and what efforts have been made?

In the process of "four modernizations" in the stock exchange of Yushun, however, it is not possible for us to design one model in Shenzhen.

We started centralized trading on December 1, 1990, using gestures and bidding on the board. Until later, when the stock market came up, it was impossible to do it by hand. The mayor also asked me to tell me that securities dealers and registration companies worked overtime every night until midnight. They could not do it by hand. They had to use computers.

At that time, we didn't need to use the large computer 486 and the large-scale computer 486 when we bought the large-scale computer and the Internet. However, the market has developed rapidly, and by the beginning of 1993, the computer network could not afford it. What should I do? This requires upgrading computers and communications.

At that time, Zhang Hongyi, the vice mayor of Shenzhen Special Economic Zone, planned to spend two hundred million yuan of the revenue of Shenzhen Municipal Government in 1993, instead of paying 5 billion yuan of the revenue of Shenzhen Municipal Government in 1993.

First of all, we have inspected the seven western industrial countries. The United States, Europe and Japan basically use the American large-scale computer -- tandem computer. We conclude that since the old stock exchanges use it, we are sure that its performance is good, and the hardware is OK. What about software? In the name of Taiwan's cross-strait securities and futures seminar, he was specially invited to attend the Taiwan Strait legal affairs seminar in 1993. So during the meeting, I visited lingqun computer company in Taiwan.

During the global stock market crash in 1987, the trading volume of Taiwan Stock Exchange exceeded that of New York Stock Exchange for a few days. I decided that the computer trading system developed by lingqun computer company for Taiwan Stock Exchange had passed severe tests, was safe, and had enough space for development. Even though Shenzhen Stock Market developed rapidly, its capacity would be no problem in at least 5 to 10 years I have a clear idea of this. I can say that I am quite sure of both software and hardware.

From February 8, 1993, the contract was signed in April, and the tandem automatic matchmaking and trading system was officially launched on July 28. It was only a few months, which was really the speed of Shenzhen. At that time, we invited lingqun computer company, not to let them write software for us, but to let him train the personnel of Computer Department of Shenzhen Stock Exchange, just like learning English, to start writing from ABC. Therefore, from PC to mainframe computer, to the 5th generation of trading system of Shenzhen Stock Exchange, all software is written by ourselves.

The action of saving the city from dangers

Yu Gang was also known as the master of Shenzhen stock market in 1991.

In the 1980s and 1990s, the stock was still a new thing, and the common people didn't know enough about its risk, which made a few stocks soar to the sky high price by the investors flocking in.

In order to regulate the overheated stock market, Shenzhen Stock Exchange stamp duty was born. During this period, the Shenzhen municipal government launched a series of measures to rectify the Shenzhen stock market. There is no stock market that can only rise but not fall. At the end of November 1990, the price of Shenzhen development stock rose to 120 yuan per share on the white market and 240 yuan on the black market. The stock prices of Shenzhen Vanke, shenjintian, shenanda and shenyuanye all began to fall. With other reasons, the Shenzhen stock market showed a bear market in early September 1991. The fall lasted for nine months. Among them, on April 22, 1991, the market panicked to the extreme. On that day, there was only selling but no buying, and the transaction was zero all day.

"At this time, the Shenzhen Stock Exchange was like a 9-month-old baby. From December 1990 to early September 1991, the stock market fell for nine months, just like a nine month old baby with nine months of diarrhea. If you say that according to the natural growth resistance, if you dehydrate, you will die. " Yu guogang described the scene at that time.

In order to save the newly born baby of Shenzhen Stock Exchange, at the emergency moment when the Shenzhen municipal government held five rescue meetings one after another, and there was still no institution willing to contribute to the rescue of the city, Yu guogang took Dong Guoliang, who was the supervisor of Shenzhen Stock Exchange at that time, and rushed to Li Hao's house overnight. Li Hao made a decision to ask Shenzhen investment management company and Shenzhen International Trust and investment company to provide 100 million yuan each The "stock market regulation fund" entered the market to carry out the first government rescue work in the history of China's securities market.

21st century: how do you operate in the specific rescue process?

Yu guogang: on September 7, 1991, Shenzhen stock market regulation fund entered the stock market. At this time, Shenzhen development fell to 13.75 yuan, which was very miserable. Vanke, Jintian, anda and Yuanye fell even worse. We saved three days and held the exhibition to 13.95 yuan. However, at this time, some big speculators feel that there is a force to prop up the market. They find that they have such a large amount of money to throw out. As soon as they throw it out, someone will pick it up, and then throw it out and pick it up again. They have a feeling. Small shareholders don't know, so they start to play tricks.

We're pulling up and they're going down. Why? They want to buy cheaper stocks, and later the rescue is successful. The stock price goes up, and they make more money. Why don't the municipal government burn all the money out of the stock market in a few days?

So, they played tricks, and I also used my brains and skills. I communicated with two reporters from Shenzhen Special Economic Zone Daily and wrote a short article under the pseudonym of Yu Jiayuan (homonym for "one family's words"), saying that Shenzhen stock market was like a river bank burst and could not be saved.

If he doesn't save the stock market, he will continue to write a short story. I went back to rescue the market again, until September 29, and entrusted the Shenzhen hair exhibition to 14.95 yuan.

At that time, there were only two days off for national day. The stock market salon held a meeting in Litchi park. At that time, litchi Park was opposite to Shenzhen Stock Exchange. They were in meetings there and they said, "stupid! Let's kill each other and keep the stocks of Shenzhen development company so low. I don't know who bought so many cheap stocks. After the resumption of the national day, we will kill them and get them back. " Later, this word spread to my ears. What I want is this result. If you all kill me, will the stock market rise?

In addition, we have done technical treatment before this. When Vanke resumed trading on June 28, I first cancelled the "tight hoop curse" of Vanke, that is, the price limit, and then the "tight hoop curse" of the remaining four old stocks was also cancelled. After the resumption of the market on October 3, SDB increased by more than 1 yuan in one day. In a few trading days, SDB increased from 14.95 yuan to 26 yuan. In a few months, Shenzhen development stock rose to more than 30 yuan per share.

21st century: you have expressed your hope that the Shenzhen Stock Exchange will become a first-class international exchange. What preparations should be made for the Shenzhen Stock Exchange to leave your goal?

Yu guogang: in Shenzhen, first, there is the Shenzhen Stock Exchange, a multi-level capital market integrating the main board, the small and medium-sized board and the growth enterprise market. This is a wheel. Second, the number of high-tech enterprises in Shenzhen ranks first in China, which is also a wheel. Our two wheels, one capital market and one high and new technology, will go forward together with each other. In addition, we will take the Dongfeng registration system. The innovation train of Shenzhen will be longer and faster, and Shenzhen will make greater contribution to the country.

From May 18 to 19, 1993, the second general meeting of Shenzhen Stock Exchange was held and 259 members attended the meeting. On behalf of the general manager's office of Shenzhen Stock Exchange, I reported the medium and long term plan of Shenzhen Stock Exchange at the meeting, which was unanimously approved by all members. In elaborating on the development goals of the Shenzhen Stock Exchange, I pointed out that the Shenzhen Stock Exchange will be built into a first-class stock exchange in the Asia Pacific region with a relatively high degree of modernization, strong radiation capacity, in line with the international market. Today, it seems that this goal has been basically achieved. I think the Shenzhen Stock Exchange should learn from international successful experience in the operation of listed companies, securities rules and regulations, accounting and auditing standards and so on. At the same time, we should firmly hold the bottom line of no systemic financial risks.

Although China's stock market is not perfect, it is an emerging market full of opportunities and hope and is developing rapidly. The CPC Central Committee and the State Council attach great importance to the reform and development of China's capital market. The CSRC has also issued 12 reform and development measures. I believe that our market will become better and better.

Just now I have said so much, that is to say, don't be afraid of difficulties. We should see the bright future and the future. Although the outbreak of new crown pneumonia has brought certain impact to us, China's long-term and basically good economic situation has not changed. Therefore, we should be optimistic about China's stock market. China's stock market is promising.