In a recent TV program, Chinese economist Lang Xianping held an interview with Guo Meimei , the young woman who is at the center of the Red Cross Society scandal of China, and her mother Guo Dengfeng .
The “Guo Meimei scandal” has been arousing public anger in China since June. The net users shared posts which revealed that Guo Meimei, 20, was claimed to be the “general manager” of the Red Cross Society of China Business system. It seems that she was casually offered with this position by Wang Jun, a family friend of her who runs a commercial authorized by the Red Cross Society of China to run business activities related to charity.
Guo Meimei and her mother are wealthy, and where that wealth comes from has recently been a key question. In the interview with Larry Lang, Guo Dengfeng said that she made millions from trading stocks within few months in the 90s starting with just “tens of thousands of yuan.”
If that is true, it would make Guo Dengfeng China’s shrewdest investor ever, because at that time, most of today’s great financial giants in China were just rookies in China’s financial markets.
For example, Zhou Xiaochuan, former Chairman of the Stock Supervisory Commission and the incumbent Central Bank Governor, was just at the age of 42. He was appointed to China’s National Economic Restructuring Committee and was about to publish his articles on China’s economic reform.
Wang Yawei, China’s top fund manager was just 19 years old and was receiving his bachelor degree in Tsinghua University, he probably has never heard of stocks at his age, not to mention the private fund. If he had known Miss Guo Dengfeng at that time, I believe he will worship Guo as a teacher so that he would not need to work so hard to achieve a success until 2006.
That year, 21-year-old Huang Guangyu, had just started his new business of Gome—-several little stores selling household appliances at that time. He was short of money and experience, but now the Gome’s market value has reached about $ 33 billion.
Lang Xianpin, the interviewer, was also nobody at that time. It was until a decade later in 2004, when he was familiar with most of traditional financial methods to analyze state-owned enterprises in the flow of state-owned assets and finally reached a conclusion that China’s reform was heading to a wrong direction. If he had knew Mr. Guodengfeng at that time, he would have become famous and enjoyed a higher reputation than he does now.
According to the analysis of a netizen, if Mrs. Guo Dengfeng put an average of 1000 yuan into the China’s first five stocks and bought them at a low price and sell them at the peak price, she would have earned a total profit of 550,000 Yuan. Therefore, we cannot but marvel over her magic trading capability.
So, thanks to Professor Lang, we have a chance to know the greatest trader in China’s capital market. Whether you believe it or not, she’s a great miracle. But this miracle does not eliminate the public doubts towards China’s Red Cross Society.
by Xinhong Xia(夏新宏)