Tang Wanxin, the head of Delong, was the most prominent boss in the capital market in the 1990s. Old investors born in the 1950s, 1960s and 1970s should all know this name. "A stock does not have to be good, but virtue will lead to a reputation; the price will not be afraid of high prices, and prosperity will lead to success." This is the highest praise given to him by investors. More than 20 years ago, he made great changes in the stock market. In just 16 years, he went from having nothing to being in charge of 120 billion assets. He was praised by everyone, but fell from the altar and was imprisoned for 8 years.

Now that Tang Wanxin has been released from prison, what is his current situation?

1. The first pot of gold for business geniuses

Tang Wanxin was born in 1964 in a family of border cadres in Urumqi, Xinjiang. There are five siblings, and Tang Wanxin is the youngest.

In 1981, 17-year-old Tang Wanxin was admitted to the Department of Industrial Economics of East China Petroleum Institute. However, his ideal was to be a theoretical physical scientist and inventor, which was far from each other. Therefore, one and a half years after enrolling, Tang Wanxin He dropped out of school and returned to Urumqi to repeat his studies. In 1983, he was admitted to the Xinjiang Petroleum Institute. He dropped out of school again in 1985. He was not interested in the boring study life. This time he determined to be a great businessman.

In December 1986, Tang Wanxin raised 400 yuan and opened a "Friend" color printing shop next to the People's Park in Urumqi. He often used a military kettle to make steamed buns while giving instructions to a group of young people. country.

Tang Wanxin earned 600,000 yuan from opening a color printing shop. 600,000 yuan was an astronomical figure for ordinary people in that era, but it was far from satisfying Tang Wanxin's ambition. His interests were too wide-ranging.

Since then, he has run a lock factory, which closed down because he did not have a production license; he has researched satellite TV receivers, but the technicians were poached; he has run a feed factory, acted as an agent for the Xinjiang artificial hair business, and even I went to the remote Taxkorgan County to contract a hotel...

After repeated defeats and defeats, he tried many industries and struggled for more than 3 years. Tang Wanxin owed more than 1 million.

He called his creditors together: "If you can trust me, give me a chance. If you can't trust me, send me to prison."

1991, 27 years old Tang Wanxin's fortune turned around. His computer management company suddenly made a profit of 1.5 million by acting as an agent for Stone printers in large oil fields in Xinjiang. The first thing he did was to pay off all the debts and pay the creditors some interest. As a result, he won a good business reputation.

In 1992, Tang Wanxin waited for the opportunity to earn his first pot of gold. Deng Xiaoping delivered his Southern Speech, and the Chinese stock market began to experience a blowout. In August of the same year, the Shenzhen Stock Exchange announced the issuance of 500 million domestic public shares, and issued 5 million lottery forms. The winning rate was 10%, and each winning form could subscribe for 1,000 shares. .

Tang Wanxin saw the opportunity and hired 5,000 people to queue up in Shenzhen to receive the subscription lottery form. Then he exchanged the lottery form for original shares and made a huge profit. From then on, Tang Wanxin gave up the industry. , became obsessed with the stock market, which is the fastest way to make money.

After returning to Xinjiang, he, his elder brother Tang Wanli and others registered and established Xinjiang Delong Industrial Company, specializing in stock operations in the capital market.

They purchased a large number of original shares and internal employee shares of state-owned enterprises in Xinjiang, northwest and other regions, and then resold them to financial institutions in Xinjiang, or waited until they were listed to sell them for cash.

The most successful one was when they acquired 10 million legal person shares of "Northwest Bearing" for 10 million yuan. A few months later, they made a net profit of 30 million yuan. The Tang brothers made a lot of money in the stock market. Get a lot of money!

In 1994, Tang Wanxin successively raised 300 million yuan from Hainan Huayin International Trust and Investment Company and China Rural Development Trust and Investment Company through the treasury bond repurchase business. With this considerable amount of funds, the Tang family The brothers built their financial empire and established an opportunity to flex their muscles in the financial industry.

2. Integrating the industrial and asset industries, the troika ran all the way

In 1996, Tang Wanxin, who had become a prince in the northwest region, moved Delong's headquarters to Beijing. The so-called "delong" "Whoever conquers Beijing and Shanghai will win the world", he wanted to realize his strategic plan. Inspired by the company's think tank team, he put forward Delong's core concept of "creating new value in traditional industries".

He claimed that he would optimize and integrate traditional enterprises with small scale, dispersed investment, uncompetitiveness, and backward systems and concepts through capital mergers and acquisitions to become the largest private enterprise in China.

He did what he said. When he entered Beijing, Tang Wanxin acquired 10.19% of Xinjiang Tunhe's equity, and soon increased his capital and shares to become the largest shareholder;

June 1997 , Tang Wanxin purchased another 29.02% stake in Shenyang Alloy and became a controlling shareholder of the company;

In October 1997, Tang Wanxin purchased another 25.71% stake in Xiang Torch and became the controlling party.

People in the world call it the "Old Three Shares" or the "Troika". On the one hand, Tang Wanxin carefully managed his physical enterprises, and on the other hand, he firmly controlled the three old stocks and began to build positions. By constantly releasing good news and using the concept of integration and reorganization, he raised the stock price step by step, and then dumped stocks to make profits. These three stocks have all risen more than 10 times within six years, and Delong is called "the No. 1 stock in the world" by investors.

Tang Wanxin’s ideal is to effectively combine industry and capital industry, so that the two complement each other and shine, but he ignores that his behavior is actually a double-edged sword, which hurts the enemy and also hurts the enemy. Digging his own grave: If he wants to build positions, raise stock prices, and carry out large-scale industrial integration, he must rely on a large amount of funds as support. Although the profits of his companies have been greatly increased after integration, they are far from satisfying the moral standards. Most of these gaps are supplemented by bank loans and high-interest private equity funds.

Tang Wanxin took advantage of the loopholes in the capital market at that time and used two methods to raise funds:

First, the listed company first loaned the funds needed for the next merger and acquisition to the bank. After the merger is completed, the acquired company at the next level will borrow from the bank, which in turn will be guaranteed by the listed company. These companies guarantee each other and make repeated pledges.

The second type, under the guise of mixed business operations and entrusted financial management, uses its securities companies to attract funds from enterprises with an annual income of more than 50 million and individual investors across the country, promising to provide 3% to 22 % profit. In interest alone, Delong has to pay 3 billion yuan every year, and the cost of maintaining a high stock price is also 1 billion yuan, totaling 4 billion yuan.

Through a series of operations, it seems that the company's scale is constantly expanding and its profits are constantly increasing, but in fact Tang Wanxin has always been short of money.

3. Zhongke’s “fire” affected Delong

In December 2000, Luliang’s “Zhongke Department” incident broke out, the stock market entered a panic, and Delong was also As a result, its most important financing platform, Jinxin Trust, once had an unpaid gap of 4.1 billion yuan.

In order to cope with the financial crisis, starting from 2001, Tang Wanxin held a "position meeting" on time at 3 p.m. every day. Each financial institution wrote the degree of crisis, data and positions of the day on the blackboard, and then Tang Wanxin made decisions based on the risks. The degree determines which position solves which crisis, down to every dollar.

In June 2002, Tang Wanxin got involved in several local commercial banks, trying to obtain funds in the name of various projects and related companies after joining the bank's board of directors.

A series of operations did not successfully solve Delong's capital problem. As a result, Tang Wanxin pledged Delong's best asset, Hunan Torch, to the bank with 100 million legal person shares. Within half a year, all legal person shares of Delong's listed companies were completely mortgaged.

The dilapidated house was hit by continuous rain again, and the media would always waste no time in beating the "dog in the water". In March 2004, some media reported "Delong's capital chain is tight", saying: Delong has transferred most of its funds It has put pressure on each of its stocks. Due to the shortage of funds, don't expect it to protect the market for these stocks. Now they are all running out with all their strength. Negative news quickly spread across major websites.

4. When the general trend passes, where is the once powerful hero now?

April 3rd was Tang Wanxin’s 40th birthday. With a heavy heart, Tang Wanxin held his last high-level meeting and called on his employees to help themselves. They all bought Laosan shares, 10,000 shares for department managers, and 10,000 shares for ordinary employees. 1000 shares. But the disaster still came as expected. Once the dominoes collapsed, everything was irreversible. 10 days later, Alloy shares took the lead to fall to the limit, and the third largest stocks fell across the board. The lost market value dropped from 20.68 billion yuan at the peak to 5.006 billion yuan, evaporating overnight. 16 billion. Previously, Tang Wanxin used bankrolling methods to take away an average of 500 yuan from China's 30 million shareholders. What should not be taken will eventually be returned.

Creditors rushed to Delong's headquarters in Beijing and Shanghai from all over the country like crazy, saying that they must capture Tang Wanxin.

At this time, Tang Wanxin left all diplomatic matters to his eldest brother Tang Wanli, and he himself asked for help from everywhere. He was low-key and rarely appeared in public before, and had almost no dealings with local governments. However, due to the situation, Tang Wanxin stepped into the door of the China Securities Regulatory Commission for the first time, and also negotiated with domestic and foreign financial institutions such as Goldman Sachs and China Minsheng Bank, but to no avail.

All the investment equity in Delong’s hands was either pledged or sold. Public prosecutors and law enforcement agencies in more than 10 provinces and cities have seized Delong’s assets and prepared arrests. Dozens of banks have sued Delong. Tang Wanxin What's more, everyone will kill him if he gets it. Who dares to be the taker?

On May 29, Tang Wanxin was forced to leave Myanmar, but the case had alarmed the central government. Beijing set up a working group to deal with the Delong incident, and the Ministry of Public Security also set up a special 706 task force to investigate Delong’s criminal behavior. .

On July 18, Tang Wanxin took the initiative to return to China. It is said that Tang Wanxin’s first words after getting off the plane were: I will be ready to go in when I come back. Ten years later, I will still be a good man! Subsequently, Tang Wanxin was placed under residential surveillance.

In April 2006, he was sentenced to 8 years in prison and fined 400,000 yuan for "illegal absorption of public deposits" and "manipulation of securities trading prices."

This genius with a wide range of interests insisted on learning foreign languages ??every day while serving his sentence, and also applied for the correspondence course archeology major at Peking University. He may have forgotten that twenty-five years ago, he once determined to be a He was an inventor, but later became a businessman, and now he wants to study archeology. It is really unpredictable.

Since Tang Wanxin’s case involves many complexities, the lawyer’s legal fees alone cost 2.65 million, and the Tang family could only contribute 1.2 million. The rest were solved by Tang Wanxin’s friends in Xinjiang. A follower of Tang Wanxin My brother who has been with me for many years said: I have already rummaged through everything, Wan Xin really has no money.

"Anything that gambles with our lives must be the most exciting." This is a famous saying of Tang Wanxin. He has a farm in Yumin County. There is a large plaque hanging in the conference room, which reads: " There are four big words: "I am the only one who respects me".

This self-centered entrepreneur once owned 120 billion in assets, more than 500 companies and 300,000 employees, and was determined to enter the world's top 500 companies. In the end, he could not afford 2.56 million in legal fees, and his glory was just a straw. After a dream, I woke up and was in jail, and I was also sick. Is it true that life should be spent risking all one's life for dreams, or should it be dull?

Dozens of banks and thousands of companies, large and small, suffered heavy losses due to Tang Wanxin’s involvement. Many entrepreneurs left their hard-earned money to Tang Wanxin and ended up losing everything. Reports at the time said , the most serious of which was Zhejiang Naais Group, amounting to 600 million yuan.

Li Xueqin, chairman of Jiangsu Yaxing Bus, even went on a hunger strike to collect debts. In Delong's conference room, 56-year-old Li Xueqin burst into tears and banged his head on the conference table. He said: If I can't get the money back, I will die to save Yaxing's 6,000 employees. It’s so sad!

In addition, there are more than 100,000 individual investors, and the local government has paid for their losses.

Tang Wanxin’s business talent is undeniable. Take Tunhe, Xinjiang, for example. After integration, it has developed from a cement factory with mediocre profits to the world’s second largest tomato paste manufacturer, exporting concentrated tomato paste. The volume accounts for 17% of global trade volume, and at the same time solves the employment problem of 100,000 farmers in Xinjiang.

Lao Sangu later became an important industrial platform of the Delong Group. Until the collapse of Delong, it was still favored by the asset and industrial circles.

But it has caused such heavy losses to so many banks, companies, individuals and local governments. I wonder if Tang Wanxin has ever regretted it.

Tang Wanxin entered the public eye again in 2020 when the China Securities Regulatory Commission issued a "Penalty Decision". Tang Wanxin was warned by the China Securities Regulatory Commission because, as the actual controller of Steyr, Knowing and concealing matters related to financial fraud, several other people were also warned. It seems that Tang Wanxin is still struggling in the stock market.

Postscript: High profits are bound to be accompanied by high risks. I can’t help but think of the P2P investment and financial management platform a few years ago, which caused so many people to lose their money. In fact, we have learned from the past, making money It’s not easy, you need to be cautious in investment and financial management!