Returning wealthy individuals develop their hometowns and become rich in the 1980s

Upon hearing Chen Dong's words, many knowledgeable ministerial leaders and financial experts in the audience gasped in surprise.

The so-called "FT account," "offshore foreign currency certificate of deposit," and "macro-prudential management" proposed by Chen Dong are all crucial systems in China's financial opening up in later generations. The ministerial leaders and financial experts present found Chen Dong's proposals to be logically sound, to hit the nail on the head, and very suitable for China's national conditions at that time.

After listening to Chen Dong's words, Wu Nansheng's eyes flashed with extreme shock and admiration. He put down his pen, leaned forward slightly, and stared intently at Chen Dong, who was standing on the podium.

"Your idea of ​​'offshore foreign currency certificates of deposit in the special economic zone' is quite bold!"

Wu Nansheng's voice rang out again in the quiet conference room, "Using interest rate advantages to attract foreign investment and using account segregation to prevent risks, but Comrade Zai Dong, have you considered whether your Tuocheng's pool of liquidity can withstand a severe upheaval in the international financial market, or malicious short selling?"

The old man's insights were unique. Chen Dong had made these points based on decades more knowledge and understanding than those present. However, after listening, the old man asked these questions directly: if Chen Dong could not solve these problems, the offshore financial trading center in Tuocheng would still be difficult to establish.

This is the most crucial test!

Facing Wu Nansheng's sharp gaze, Chen Dong did not back down at all. Instead, he revealed a confident smile. He knew that his old leader was giving him the final, most challenging question.

Once this hurdle is overcome, the plan will be completely secure.

"Old leader, every reform carries risks, but the biggest risk is not daring to reform!"

Chen Dong's voice was firm and resolute: "We will not only build firewalls, but also introduce internationally advanced risk control models. More importantly, we have the backing of national credit and the sincere patriotism of overseas Chinese in Southeast Asia. As long as we treat them sincerely and provide them with stable expectations and reasonable returns, this massive torrent of capital will become a powerful engine driving China's economic take-off!"

Wu Nansheng slammed his hand on the table and shouted, "Good! Well said! Reform and opening up requires daring to explore and experiment. Without a spirit of facing difficulties head-on, how can we forge a path through adversity!"

Wu Nansheng's statement was like a final decision, completely dispelling all concerns. Everyone present smiled and applauded. Ding Zhuo, Zhou Haimin, and others were so excited that their faces turned red and their hands clapped until they were red.

As Chen Dong finished speaking and stepped down from the stage, the symposium came to an end. People in the large conference room began to leave, while Chen Dong was invited to a small office by Wu Nansheng, with Ding Zhuo accompanying him, along with several other financial experts who had come with him.

In the small conference room, the secretary brought in tea and left. Wu Nansheng leaned back in his chair, smiling at Chen Dong. "When Comrade Ding Zhuo forwarded your proposal to me, I read it three times. The first time, I thought you were too bold. The second time, I thought you were overthinking things. The third time, I thought you hadn't thought enough."

"You've only thought about how to use the funds after they come in, but you haven't considered what to do when they leave. Capital is profit-driven. What if the rate of return on investment in Tuocheng drops one day? All this money will rush out, and how will you deal with that?"

Previously, Chen Dong had only explained and answered questions about risks. Now, Wu Nansheng asked what would happen if the rate of return on investment decreased in the future and all the money rushed out of the country.

Faced with Wu Nansheng's soul-searching question, Chen Dong did not rush to answer. After thinking for a while, he said, "Old leader, I have thought about this question many times. Capital pursues profit, which is only natural."

"If the rate of return on investment declines one day, this money will indeed flow out, but we can use the system to close that door a little, but we can't close it off completely."

Chen Dong took out another document from his briefcase and respectfully handed it to Wu Nansheng with both hands. It was a supplementary plan for "counter-cyclical adjustment". Wu Nansheng took the document, flipped through it, and his brows relaxed slightly.

Chen Dong looked at Wu Nansheng and said slowly, "The core of the offshore finance pilot program is not to allow capital to flow freely in and out, but to allow capital to flow within a controllable range. It's like a dam; it's not about blocking all the water in the river, but about regulating the flood peak, letting the water out when needed and storing it up when needed."

"The same applies to the offshore financial pilot program. What we want to build is a gate, not a wall. When the international market is good, we will open the gate wider, and when the international financial market is turbulent, we will close the gate smaller. The approval authority for entry and exit is in the hands of the People's Bank of China."

Wu Nansheng put down the documents, looked at Chen Dong, and there was something indescribable in his eyes. It wasn't scrutiny, but rather appreciation. He didn't interrupt Chen Dong and waited for him to continue.

"Mr. Wu, we also need to establish a multi-level risk early warning system. We will set early warning indicators from multiple dimensions such as international capital flows, exchange rate fluctuations, cross-border capital flows, and local asset prices. Once an early warning is triggered, the regulatory authorities can take measures in advance to control the risk in its infancy."

Chen Dong paused for a moment, then continued, "This system can refer to the Hong Kong Monetary Authority model, but the size of the mainland is incomparable to that of Hong Kong, so we need to be more cautious than them."

Wu Nansheng smiled and nodded, then personally took out a cigarette and handed it to Chen Dong. "Anything else?"

Chen Dong was flattered and accepted the cigarette that Wu Nansheng personally handed him. He lit Wu Nansheng's cigarette with a Zippo lighter before lighting his own and taking a puff. "Although we initially exempted them from reserve requirements, as the Tuocheng Offshore Financial Trading Center gradually stabilizes, we will have to implement a risk reserve system, especially for foreign investment from Europe and America."

"When offshore funds from Europa and America come in, a certain percentage must be set aside as a risk reserve, which is then handed over to the People's Bank of China for unified management. In the event of a large-scale capital outflow, this money can be used to stabilize the market and prevent a stampede effect."

"At the same time, leverage ratios must be limited. The investment leverage of offshore funds cannot exceed the regulatory limit to prevent risks from getting out of control due to excessive leverage."

As a capitalist who earned a master's degree in finance from Harvard University, Chen Dong was all too familiar with America's 'tidal' nature. America's capitalists had made a fortune through this tactic, and Chen Dong had to prevent his painstakingly built offshore financial trading center from being targeted by America's capitalists.

The so-called "dollar tide" refers to the Federal Reserve's policy of cutting interest rates and implementing quantitative easing when America's domestic economy is sluggish. This is not America being generous and giving you money, but rather the first step in her plan, and it has always worked.

Once international assets recover and domestic inflation in America picks up, the Federal Reserve in America will slam on the brakes and aggressively raise interest rates.

If you don't obediently withdraw the hot money that was released at this time, the interest alone will be enough to make those capitalists suffer.

Meanwhile, the companies and assets whose investments were withdrawn face increasing pressure to repay debts, and stock and asset prices plummet. At this time, the shameless American capitalists come to you with green dollars and smiling faces.

A single round of interest rate cuts and hikes can allow your hard-earned company to be sold off at a bargain price!