Treasury bond 327 incident-Introduction: China Treasury bond futures trading started on February 28th, 1992. 327 is the code name of treasury bond futures contract, corresponding to the 3-year treasury bonds issued in June of 1992 and 1995. The total amount of bonds issued is 24 billion yuan. After 1994 and 10, the People's Bank of China raised the interest rate of savings deposits with a term of more than three years, and resumed the subsidy for deposit preservation. The uncertainty of the rate of value-added subsidy provided space for the speculation of treasury bonds futures, which became increasingly hot, in sharp contrast to the depressed stock market at that time. In February of 1995, the contract price of 327 has been hovering between 147.80 yuan and 148.30 yuan. On February 23rd, the Ministry of Finance announced the payment of 327 treasury bonds 148.50 yuan. On February 23, after the opening, it was covered up by many favorable factors, and it had already reached 15 1.98 yuan. Then Liao Guofa, an ally of all nations, suddenly became a bull, and the 327 national debt rose by 2 yuan within 1 minute, and rose by 3.77 yuan after1minute! Every time the national debt rises 1 yuan, the nations will lose more than one billion! At 4: 22 pm, Kong Fang Wan Guo Securities Company suddenly launched an attack. First, the price was blown from 15 1.30 yuan to 150 yuan with 500,000 people, then to 148 yuan, and finally to 147.40 yuan, with a huge selling order of 7.3 million people. The face value of this 7.3 million bill is 1.46 trillion, which is close to 1/3 of the gross national product of China 1.994! At 1 1 in the evening, the Shanghai Stock Exchange officially ordered that all the transactions of 327 varieties after 16: 22 and 13 seconds on the 23rd were abnormally invalid, which was not included in the settlement price, volume and position of the day. After this adjustment, 540 billion yuan of treasury bonds were traded on the same day, and the closing price of 327 varieties on the same day was the last transaction before the violation. This means that the loss of IWC Securities is as high as 6 billion yuan. In view of the bad influence of the "327 national debt violation incident", on May 17, China Securities Regulatory Commission issued the "Emergency Notice on Suspending the Pilot Trading of China's National Debt Futures", and the opening of the national debt futures market ended only two years and six months. China's first financial futures product died. —————————————————————————————————————————————————————————————— 1992 65438+ 10 was renamed as China Economic Development Trust and Investment Company, referred to as "Zhongjingxin" or "Zhongjingkai". Its business has expanded to self-operated businesses such as credit, securities and industrial investment. "Zhongjingkai" is famous in the industry for its enterprising and brave style, and the most beautiful battle in Zhongjingkai is the 1995 327 treasury bond futures incident. This thrilling battle ended with a great victory by many parties represented by the Economic Development Bank. Economist Han Zhiguo said: "China's economic development is a special undertaking. The Ministry of Finance and Government is responsible for the regulatory power of the government. According to common sense, it is impossible to run an enterprise. In the case of running a business, it is reasonable to participate in the trading varieties such as 327 treasury bonds futures, otherwise there will be suspicion of insider trading. " The judgment of China Economic Development Bank affects the judgment of many parties, and the trend of the subsidy rate for value preservation at that time coincided with the judgment of China Economic Development Bank, which had to leave a question in China capital market. Since then, Changhong's rights issue in August of the same year and the recent Yinguangxia incident have made Zhongjing famous. After 327, Zhongjing drove away a "descending passage". Trust business and real estate investment are sluggish, and securities underwriting business often becomes almost unprofitable because of vicious competition. During the period of 1997, CDB's external payment fell into crisis several times, with a debt of 7.8 billion yuan. In June 2000, with the approval of the State Council, China National Economic Development Bank became one of the first reserved central trust and investment companies, and after rectification, it was handed over to the Central Financial Work Committee for management. The company divested its industrial investment to China Investment Co., Ltd., and the credit assets have been "simulated entrusted" to the asset management headquarters for further collection. 2. Guan Jinsheng's short position: Guan Jinsheng, head of Shanghai Wanguo Securities, 1988. In February, Guan Jinsheng was responsible for establishing the first securities company in Shanghai. During his tenure, the primary market underwriting business of IWC accounted for 60% of China's total share, and the secondary market brokerage business accounted for 40% of the national total share. The American and British authorities rated IWC as the largest securities company in China. Guan Jinsheng flaunted the banner of "the world of securities, the kingdom of securities", claiming to make the world the Nomura and Merrill Lynch of China. 1994 proposed that all countries should "enter the top ten securities firms in the world in 2000". However, after the national debt 327 incident, the nations were seriously damaged and were quickly reorganized. 16 July 16, Shen Yin merged with other countries. 1April 1995, Guan Jinsheng resigned. On May 19, 2009, Guan Jinsheng was arrested on charges of embezzlement and misappropriation of more than 400,000 yuan of public funds, but he did not violate the futures trading rules. 1February 3, 997, Guan Jinsheng was sentenced to fixed-term imprisonment 17 years. 3. Change from short selling to long selling: The Gaoling brothers, the head of Liaoguofa Liaoguofa, were one of the big speculators in China's early capital market, and stocks, futures, bonds and capital lending were everywhere. 1995' s "327 national debt incident" made Liao "a blockbuster". On February 23rd, 1995, I got the news of "327" discount first, and immediately changed from short to long. 4. "The youngest boss of the global exchange" Wei was born in 1955, a native of Xiaoyi, Shanxi, and graduated from Shanghai University of Finance and Economics. 1983- 1989, Director of Audit; 1at the end of 990, the Shanghai Stock Exchange was established, and Wei became the founder and first general manager of the Shanghai Stock Exchange. After the "3.27" incident:1September, 99515th, the Shanghai Stock Exchange held a board meeting to remove Wei from the post of general manager of Shanghai Stock Exchange; 1996, founded Meng Xin group as the chairman; In April 2000, he became the CEO of 158 Hairong Securities Network. —————————————————————————————————————————————————————————————— On the 27th, only 7,000 lots were closed, while 327 lots held more than 3 million lots. On February 28th, the Shanghai Stock Exchange once again stressed that positions exceeding the prescribed standards would be forced to close positions, and the closing price was determined with reference to the weighted average closing price on the 27th and 28th, which was about 1, 5 1 yuan, and the transaction was active. Closing positions on 28th 1.4 million, and 327 national bonds accounted for more than 85%. On March 1, the agreement was postponed for another day, and the amount of liquidation on that day reached 800,000 yuan. Although there was no special closing time on March 2nd, the closing positions of 327 varieties still reached 250,000. After several days of liquidation, the position has been greatly reduced. Guan Jinsheng's former secretary said: After the 327 incident, it happened that Shanghai Dongguang Finance Radio started broadcasting, and Guan Jinsheng, who was still on the stage, was also listed as an invited object to attend the opening ceremony. When Guan Jinsheng arrived at the meeting, the ceremony had already begun, all the guests were seated and no one greeted him. In full view, Guan Jinsheng stood for five minutes. The last overseas brokerage representative can't stand it. He stood up to greet him and made room for him to sit down. This embarrassing situation didn't last long. In March, the National People's Congress and the Chinese People's Political Consultative Conference were held, and the firepower suddenly rose. There was a lot of anger, among which economist Dai's words were fierce: recently, there was speculation in Bahrain Bank in Britain. Almost at the same time, a similar incident happened in China. Shanghai Wanguo Securities Company engaged in securities speculation and lost 654.38+0.6 billion yuan. According to China's current laws, corruption can be sentenced to fixed-term imprisonment, corruption of 40 thousand yuan can be sentenced to fixed-term imprisonment, and corruption of more than 654.38+00 thousand yuan can be sentenced to a bullet. Then, what kind of punishment should be given for speculating karate with a speculative amount of 654.38+04 billion yuan? The Shanghai Stock Exchange declared the transaction invalid, which caused the problem of how to deal with the original losses of all countries, that is, all countries must go bankrupt. In this case, some people proposed to protect state-owned enterprises and not let all countries go bankrupt. Since then, with the help of local finance, IWC has been merged into Shen Yin, another local securities company in Shanghai. This is the later Shenyin Huanqiu Securities Company. Wei, former general manager of Shanghai Stock Exchange, shocked the securities and futures circles in China. Under the mediation of the arbitration organ, the liquidation was agreed on February 27 and 28, but the effect was not satisfactory. March 1, forced liquidation. The situation is just clear and it is worth holding two sessions. The accountability of "March 27 incident" has become the focus of NPC deputies and CPPCC members. Later, the Commission for Discipline Inspection and the Ministry of Supervision of the CPC Central Committee, together with the China Securities Regulatory Commission, the Ministry of Finance, the People's Bank of China, the Supreme People's Procuratorate and other relevant departments, formed a joint investigation team, conducted an investigation for more than four months with the cooperation of the Shanghai Municipal Government, and made a serious treatment on this basis. Global Securities Company was reorganized, and Chairman Xu Qingxiong and Vice Chairman and President Guan Jinsheng resigned at the same time. Guan Jinsheng was jailed. Liao Guofa, the second protagonist of the "327 Incident", was presided over by the Gaoyuan and Gaoling brothers from Shenyang. After the "327 incident", in order to recover huge losses, in March, he tried to turn over a profit and continued to speculate on the "329" variety in the bond market, resulting in losses again. The Liao case is not only a violation of securities and futures, but also a serious crime such as financial fraud, involving tens of billions of yuan. After the "327 Storm", the exchange adopted measures such as increasing the margin ratio and setting up a price limit board to curb the speculative atmosphere of treasury bonds futures. However, due to the particularity of treasury bond futures and the economic situation at that time, the transaction was still turbulent, and a 3 19 storm was brewing on May 10 of that year. On May 17, China Securities Regulatory Commission decided to suspend the trial of treasury bond futures trading because China did not have the basic conditions to carry out treasury bond futures trading at that time. At this point, China's first financial futures product died. The "327 Incident" is only two days away from the Bahrain incident that triggered the Asian financial turmoil. The "327 Incident" also clearly exposed that China's internal and external monitoring capabilities for high-risk markets are quite inadequate. There are three specific reasons for the "327 incident": First, the launch of futures business is quite hasty, which not only lacks experience, but also lacks corresponding regulatory laws and regulations. More importantly, it lacks the necessary understanding of market risks. Second, the speculative atmosphere in the treasury bond futures market is extremely strong, and illegal market making, excessive positions and insider trading are quite serious. Individual brokers engage in vicious speculation and deliberately violate the rules, but lack supervision. They can even make tens of millions of transactions in a short period of time, with no corresponding margin and no immediate warning mechanism. Third, the news about the interest rate increase and discount of 327 coupons was the fuse that triggered this incident. From a historical point of view, the "327 incident" did not detonate the financial crisis like the Bahrain incident, which was a blessing in disguise. References:/view/view/2243126.htm.