Chapter 163 Conclusion

at if these ordinary newspapers from Exeter reached China, the reaction would be tremendous. It represented a fundamental clash between two cultures. The idea of his scandal being blown out of proport...Chapter 163: Conclusion

The financial director of Penglixin Aviation Group is named Peng Li Xin. During this period of restructuring within the group, if such issues are not addressed, they could lead to numerous hidden problems in the future, gradually eroding and corrupting the internal environment into a negative atmosphere. In an environment where unofficial rules prevail, I believe your father would also feel uneasy.

Su Cen's intimidation of Director Peng was not just empty threats; he called his father to explain the entire incident in detail.

From the other end of the line, Su Licheng, who was in his study, pondered and said, "If this matter is true, it definitely needs to be investigated. I will report this issue and handle it according to proper procedures."

"It's useless, Dad. Only by publicly declaring your stance might you have the determination to thoroughly investigate this matter. Wu Shimiao and her colleagues alone do not constitute evidence; even those who were present at the scene may hesitate to provide proof. Only when Su Licheng shows his willingness to intervene would Wu Shimiao’s colleagues feel less reluctant to offer their testimony."

"Su Cen, you also know that this is during a critical period of internal restructuring within the aviation group. Stability takes precedence over everything else. Some issues should be handled discreetly to avoid giving others the impression that we are only here to take advantage of other companies. This could affect the perception and operations of the newly formed airline," Su Licheng mused before continuing, speaking frankly to his懂事 son. As a major shareholder in Tannan Airlines through Dawu Construction's investment, there will be relative control and significant influence over Chunan Airlines. With the board of directors of Aviation Group fiercely protecting their vested interests, this expansion process should proceed cautiously, gradually achieving its goals. If we act prematurely, might the strong stance of Dawu Construction provoke a backlash

For Peng Li Xin at his level, proper procedures pose no threat; with his authority in the aviation group over many years, suppressing these controversies would be effortless.

"Dad, if I say that Peng Lixin has issues, do you believe me"

"This child, what you say, how can your dad not believe it Of course there are problems. Some internal documents have passed through my hands, and I've seen some things, but these matters involve deeper issues, and he hasn't left any obvious clues behind, making it hard to make judgments."

"What kind of internal documents Is 'triple party wealth management' widely prevalent in the aviation group with Peng Lixin as the main contact"

Su Licheng was already accustomed to Su Cen's ability to pinpoint key issues while studying at Nan University. The financial reports of Chunan Airlines that Su Licheng received clearly recorded that due to its industry characteristics, Chunan Aviation Group had a substantial cash flow and an inherent need for capital turnover. As early as 1999 to 2001, the aviation group expanded its entrusted wealth management scale year by year through their finance company, actively seeking value growth in stocks, funds, and bonds. Their usual method was later widely known: providing opportunities for certain billionaires with secret financial sources through triple party wealth management.

Tripartite wealth management acts as the group finance, involving powerful background "market sharks" in securities firms through a collaborative agreement.

Upon receiving confirmation from his father, Su Cen can further validate his initial inference about Zhang Lixin's contact with Jian Hua.

It is evident that South-Central Aviation Group is treated as a massive source of capital for these powerful entities and the channel to borrow funds. These huge sums often bypass portfolio investment, being concentrated to manipulate large stocks, engaging in fierce battles in the market to clean up before drawing numerous small fish into ruin.

Behind all this, there must be the figure of Jian Hua, a domestic financial tycoon who has ascended to master status, whom Su Cen met at a bar.

Su Cen's knowledge of the past is limited. Yet Nan University indeed is a treasure trove; what he learns here makes it almost effortless for him to make judgments since it’s merely from an ordinary person's perspective before his rebirth. He can only delve into valuable clues in his mind. In the future, South-Central Aviation Group should have undergone restructuring around this time, with minor chronological differences. However, as the reorganization was led by Chengdu Municipal Party Committee and Government, Dageng Construction became involved.

This means Su Cen may have overly subjectively assumed that after Dageng Construction's involvement in the post-reorganization South-Central Aviation Group, it could alter its future of massive losses or decline.

In reality, this outcome not only will occur but is inevitable!

At that time, South-Central Aviation Group would find itself embroiled in a series of scandals and hidden rules, even involving the suicide of an air stewardess, with misfortune piling up. Crucially, those orchestrating this, Chengdu Municipal Party Committee and Government along with Dageng Construction, cannot escape responsibility, adding a dark chapter to Wang Bo's political career, while Su Licheng would inevitably make decision-making errors due to this incident, potentially triggering interventions from the board of directors at Dageng Construction and regulatory authorities.

Given the current situation, if South-Central Aviation continues to incur losses in the future, Dageng Construction will be drawn into this black hole, finding it hard to extricate itself. Most importantly, massive loss of state assets would not bode well for Su Licheng's position as general manager at Dageng Construction.

The root cause of all this lies not only in the chaotic and corrupt management of aviation group but also in the failure to actively improve its business structure while seeking capital operations through funds, leading to such consequences.

At the heart of it is an ideology, a systemic issue rooted in the mindset of the entire aviation group's management team.

Su Licheng stopped Su Can's series of explanations. In the end, he pondered and said, "So you saw Jian Hua interacting with Peng Lixin. There are two key points here: Han Tang Securities and Century Securities have always been the securities firms that Minister Peng主導的資金業務所接觸的證卷商，兩個，“南航空集團上市公司的資金也在二十億左右，要是詹化在背後的話，這個手筆的確很有可能。”

According to Su Licheng, the main contact for specific agreements with Chuan South Aviation Group was primarily between two securities firms.

The first is Han Tang Securities, and the second is Century Securities.

Behind both of these securities firms, Jian Hua's presence could be seen. Su Can instantly felt the energy and influence of this person through his observation. He was called a master-level financial expert in the Yangtze River Delta region and an influential figure during the era when capital ruled, and there must be strong reasons behind it.

The implementation by Chuan South Aviation Group is an active financing behavior initiated by securities firms. Although Jian Hua is a master of capital operations, this does not mean he can always make accurate judgments. Moreover, with numerous resources at his disposal, he can be ruthless and decisive when necessary to preserve himself. The practice of allocating internal funds within the aviation company for securities firms to manage their finances and profit from secondary market trading is actually highly undesirable.

Therefore, Su Can extracted fund holding data for 2000 and 2001, then used dynamic panel data he learned in economics to build a research variable model.

This process wasn't complex; it was like applying mathematical formulas, simple yet requiring time to establish the model with rigorous arguments.

To this end, Su Can even read some advanced economics books that wouldn’t be covered until his third year. Over the next week, Su Can immersed himself in the library daily and downloaded financial reports of major holdings from certain investment websites to study how changes in heavy stock positions by Han Tang and Century Securities affected stock price volatility.

From others' perspective, apart from a few missed classes, Su Can was almost always found deep within the library. Even Tang Wu's dormitory roommates were praising his diligence recently.

This indirectly caused several girls to invite Tang Wu for afternoon study sessions at the library, directly increasing the number of people in the library lobby by one grade level. The sight of these lightly smiling girls left many males mesmerized and spellbound. Su Can's model was somewhat intricate but resembled writing a joint economics paper with two or three people for his peers. Like those term-end assignments professors at Nan University assigned.

However, based on Su Can’s abilities, he could barely manage to complete this alone. With some assistance from Tang Wu to fill in gaps and provide support, although the model was somewhat rudimentary, it still needed more theoretical backing to pass scrutiny by professors at Nan University. Nevertheless, for Su Can, even though it was a basic framework, it was clear and straightforward.

The following steps were relatively simple. Even the top economics students at Nankai University could understand his intentions. If Tang Wu were to take charge, Su Cen estimated that she would create a model more concise but equally sophisticated.

Su Cen divided the sampled data into variables such as number of funds holding shares, stock return rate, fund shareholding ratio, stock turnover rate, quarterly changes in shareholding proportion, market value of tradable stocks, and stock price volatility. Through regression analysis with explanatory variables, he found that the coefficient for the number of funds holding shares was negative. This means that under control of all other variables, an increase in the number of fund holdings did not significantly reduce equity fluctuation risk.

The change in quarterly shareholding ratio had a positive relationship with stock price volatility, indicating that even during bullish market conditions, large-scale fund shareholdings not only failed to stabilize prices but also increased fluctuations in the stock market. This suggested that securities investment funds were still operating irregularly and exhibited significant herd behavior.

This further proved the irrationality of investments and the generation of bubbles. Using knowledge and theories learned at Nankai University, combined with fragmented recollections from his later life, Su Cen had a theory before him that could shake the entire field of economics but would also be dismissed by academic scholars during debates.

Based on the current two major securities firms as benchmarks, if they actively finance at high costs to establish positions and heavily hold shares, it was akin to drinking poison for immediate relief. Following this, a downward market trend would only exacerbate their predicaments.

In 2003 or 2004, when the overall market collapsed, these securities firms無疑會瓦解這條食物鏈參與者的所有幻想。

在這種情況下，疏離航空運營主業，將改善財務狀況歸結於資本運作的航空集團，陷入钜額虧損境地也就不是天方夜譚了。

當蘇燦將這個結論提供給蘇理成。蘇理成在董事局會議上提出。要求航空集團解釋財務公司存款為何在零一年低驟減，這裡麵還有冇有財務管理漏洞，有冇有“拆東牆。補西牆”的模式？到是引發了一陣震**”南航空集團董事局三分之一的獨董，無一人知道集團內部理財失利的事實，可以知道蘇理成拋出的這番話力量多大。

於此航空集團諸多高層都有意見，彭部長更是以“高層信不過，大不了辭職”用作威脅，這一招以退為進的確有效，引發了幾方勢力的大碰撞，更讓集團內部隱約傳出要清洗老乾部權益無法保障讓人心惶惶的說法，一些機長群體更是打算以停飛罷工為威脅。

直到這一步，蘇理成蘇燦也清楚。彭立新隻是其中一個節點，這裡麵牽扯的各路涉水之深，儘管是占膨倪的大格建工和市委市政府主導。也不一定就能坳得動這背後的某些龐大抱團勢力。

彭立新如驚弓之鳥，但也孤注一擲。抱定了在大佬護估下，蘇理成動不了他這等元老的死抱大腿心態。

In such a situation, for an aviation group that shifted away from its core business operations and attributed financial improvements to capital manipulation, falling into huge losses was not unrealistic.

When Su Liceng presented this conclusion to Su Licheng, Su Licheng brought it up in the board meeting, demanding the aviation group explain why their finance company deposits sharply decreased in 2001 and whether there were any financial management loopholes or practices like "borrowing from Peter to pay Paul." This sparked a significant reaction. Given that none of the independent directors representing one-third of the Nanshan Airlines Group's board knew about the internal investment losses, it highlighted the strength of Su Licheng's statements.

Many high-level executives in the aviation group had objections. Minister Peng even threatened to resign if he was not trusted by senior management, which effectively caused a major confrontation among several factions and rumors within the company that old cadres' rights would be undermined due to a potential purging of older members.

At this point, Su Licheng and Su Cen were clear that Peng Lixin was just one node in a web where many vested interests were deeply involved. Even with the backing of Grand Construction and the municipal government, it might not be enough to counteract these powerful coalition forces behind the scenes.

Peng Lixin acted like a scared bird but also made an all-or-nothing gamble, clinging to the protection of influential figures while assuming Su Licheng wouldn't dare touch an old-timer like him.s the reason why this final day was so adorable.In comparison with Wang Weiwei and Lin Zhoudance's unrestrained behavior as they roughhoused with a bunch of people, Lin Luoran from Su Cen's group calm...