Thirty Years of Turbulence - Chinese Enterprises

作者：admin  点击次数：4  发布时间：2026-05-27

Huaxi Village truly completed its primitive accumulation in 1992. At that time, Deng Xiaoping's southern tour speech was published in newspapers and on television. That evening, Wu Renbao summoned the village cadres and held a meeting until 2am. He judged that the national economy would develop greatly, so he ordered the mobilization of all funds and the hoarding of raw materials for three months. Wu Renbao had always insisted on having "neither external nor internal debt" before, but this time he borrowed 10 million yuan from outside for turnover for the first time. How much capital Huaxi Village actually used, how to raise it, and how much money it ultimately earned have always been a mystery. Later, Wu Xiedong only revealed one data: "The aluminum ingots purchased in the village at that time were over 6000 yuan per ton, and three months later they rose to over 18000 yuan per ton

Another action completed by Huaxi Village is to use village run enterprises to enter the tobacco manufacturing industry, which has always been monopolized by the state. Wu Renbao used his influence to specially approve a cigarette named "Huaxi Village", which was produced by Huaiyin Cigarette Factory, distributed by Huaxi Village Baochang Chemical Fiber Company, and then monopolized by Jiangyin Tobacco Monopoly Bureau. Around 1995, Huaxi Village did not need to invest a penny in this alone and could share approximately 20 million yuan in net profit. In 1999, Huaxi Village went public, becoming the first village in China to raise funds on the capital market. Huaxi Village issued 35 million shares and raised a total of 290 million yuan. In 2002, Wu Renbao invested 1.2 billion yuan to build "Beigang" with an annual output of 1.2 million tons in Tangshan, Hebei Province.