Following Bai Qi's death, Tang Zihan, upon receiving the news from Ye Longlin, launched a large-scale acquisition of Jūjīng Group's stocks. These purchases were made through individual retail investor accounts, all belonging to members of the Dragon Pavilion.
The hundreds of thousands of Dragon Pavilion warriors, within a single day, injected billions into this endeavor. This capital originated from Baichuan Group, transferred to the Dragon Pavilion's accounts and then distributed to each individual. If their transaction histories were not scrutinized, it would be virtually impossible for anyone to detect that everyone in the Dragon Pavilion held shares in the target company.
Tang Zihan also invested through the company's name, injecting hundreds of billions in just one day. However, the most crucial factor was that Jūjīng Chamber of Commerce currently lacked anyone to steer the ship, a situation they were actively pleased with.
Furthermore, following the news of Bai Qi's demise, Qin Shiyin instructed Jiutian Yunxiao to release information. This announcement spread like wildfire throughout Chang'an and even to other cities, causing Jūjīng Chamber of Commerce's stock price to plummet.
Consequently, they were rendered completely incapable of resistance. Despite possessing a financial department, without core personnel, they dared not make any significant moves against their adversaries, uncertain of the incoming leader's stance.
This presented Baichuan Group with a prime opportunity. After all, negative publicity was always the most effective weapon against a business; any negative news would inevitably lead to stock price fluctuations.
"Over the past two days, we've purchased approximately a trillion yuan in stocks. Many retail shares are still held by Dragon Pavilion members, and their stock prices have fallen. This is the opportune moment for a bottom-fishing strategy, but we must avoid over-purchasing. If we buy too much, it will trigger a stock market rebound. While we could then sell at the peak, it wouldn't align with our long-term objectives," Tang Zihan stated during the meeting. Indeed, injecting trillions directly would cause significant market volatility. Moreover, the Shanghai Stock Exchange had explicit regulations.
For A-shares, a single transaction declaration quantity of 500,000 shares (inclusive) or more, or a transaction amount of RMB 3 million (inclusive) or more, accepted for block trades, is designated for the trading hours of 9:30 AM to 11:30 AM and 1:00 PM to 3:00 PM each trading day. However, securities in a trading suspension state before 3:00 PM on a trading day are not eligible for block trade declarations. Between 3:00 PM and 3:30 PM each trading day, the exchange confirms the executed declarations of both buyers and sellers for block trades.
The transaction price for block trades is determined by the buyer and seller between the day's highest and lowest transaction prices. If there are no transactions for the security on that day, the previous closing price is used as the transaction price. Once the buyer and seller reach an agreement and the stock exchange confirms it, the transaction can proceed.
The substantial volume of stocks they were able to purchase daily was already considered a green light from the Shanghai Stock Exchange. Any more would be unfeasible, even with their approval, as large-volume transactions could easily destabilize the market.
Of course, regulations were later amended to include an extended block trading session from 4:00 PM to 5:00 PM, during which block trade declarations could be accepted. The transactions executed during this period would enter the clearing and settlement process on the following trading day.
Naturally, when purchasing stocks under a company's name, a 25% corporate income tax is generally levied. If a company made 10 million yuan in stock trading profits in a year, the net profit would be only 7.5 million yuan. If this profit were distributed to shareholders, a 20% personal income tax would apply, totaling 1.5 million yuan (7.5 million * 20% = 1.5 million), resulting in an actual personal income tax payment of 6 million yuan.
However, if the company incurred speculative losses, these losses could be used to offset profits from other business operations, providing a tax deduction effect.
For individuals trading stocks, the difference in stock prices, whether profits or losses, is not subject to personal income tax. When holding dividends, companies do not pay corporate income tax upon receiving dividends. However, if the income belongs to individual shareholders, a 20% personal income tax is still applicable.
Individuals who directly hold stocks and receive listed dividends will pay personal income tax at varying rates based on their holding period.
For shares held for over a year, personal income tax is exempted. For shares held for more than one month up to one year (inclusive), a 10% personal income tax is levied. For shares held for less than one month (inclusive), a 20% personal income tax is imposed.
This is the fundamental difference between individual stock trading and corporate stock trading.
"I understand. We will purchase stocks up to the maximum limit permitted by the Shanghai Stock Exchange's green light, but not using our company accounts. Old Xia, you have many contacts in Chang'an; you understand what I mean, right? I will also mobilize the resources of the Murong families of Guodu and Jinling to acquire the opposing company's shares. We will initially drive their stock price to the daily limit, then sell. After selling, the stock price will drop, and we will then buy at the bottom. After a few such cycles, their stock price will essentially be on par with ours," Murong Ye nodded, fully comprehending the matter. Given their backing by the Dark Hall, any error was unacceptable and would lead to significant complications. Ye Longlin had entrusted the company to him, trusting his capabilities, and he could not afford to disappoint him.
Ye Longlin, however, paid no heed to these matters. His sole concern was the movements of the Dark Hall.
"This afternoon, Guo Jinting, a council member from the subsidiary district of Chang'an, visited Jūjīng Group. An hour later, she submitted changes to the legal representative information with the administration. The newly registered legal representative is this Guo Jinting. Here is her profile for your review," Xuan Niao stated calmly, having recovered. It was evident that Guo Jinting was also a member of the Dark Hall.
Ye Longlin did not take the document and said indifferently, "Read it."
"Guo Jinting, forty-two years old, born in the Year of the Ox, a native of Chang'an."
"She entered kindergarten at three and skipped a grade to enter first grade at four, displaying prodigal talent. By twelve, she had reached the ninth grade. She entered high school at fourteen, junior high at fifteen and a half, and university at sixteen. She graduated with a doctorate at twenty. She subsequently joined the largest local enterprises: Tang Corporation, Liao Heavy Industry, and Tiangong Technology. After being promoted to director in these three companies, she resigned. Later, finding life monotonous, she took the civil service examination and became a deputy district chief at thirty, before submitting another resignation. After stepping down, the City Mayor, reluctant to lose such talent, exceptionally transferred her to the subsidiary council. On several occasions, she had opportunities for direct promotion but chose to decline. It now appears she has always been a member of the Dark Hall, which explains her resignations. She is likely a person of significant importance."