Chapter 9 International Finance News initiated the doubts to Yang Bin

Yang Bin’s Mysterious Disappearance caused the stock slump of Euro-Asia Group. On July 1, 2002, Yang Bin accompanied Argentinean businessmen to North Korea to inspect the environment of Pyongyang suburb for setting up cow raising base and milk power processing plant.
On July 9, Li Fang, a reporter from International Finance News went to the headquarters office of Euro-Asia Group in Holland Village, requiring for interviewing Yang Bin. But Yang Bin was in Pyongyang at that time. Bian Shoujie, the President Assistant in charge of advertisement and news of the Group, could not tell where exactly Yang Bin was. Theoretically, in charge of the advertisement issues, Bian could receive the reporter warmly, simply answering his questions, accompanying or finding someone from the reception office to accompany him to visit Holland Village, because there were well cultivated Holland flowers in the four square km of glass greenhouses open to public, such as moth orchids, gerbera, and vegetables, such as tomatoes, and color cayenne, etc. Spores breed room was modern high-tech agriculture in China and young technicians from North Korea were studying there. However, Bian Shoujie was inconvenient for reception and there was no other person, so the reporter has to wait on a sofa on the third floor for a long time. Helplessly, Lin Fang had to leave the building and wandering in Holland Village alone. Lin asked the security guard: “Yang is really not in Holland Village?” The answer was “He left Shenyang a few days ago.” Therefore, Lin Fang’s article titled Suspected of tax evasion and under investigation? China’s “No. 2” Magnate is Missing appeared in the Shanghai edition of International Finance News and www.people.com.cn. From the short article written by Lin, he had not meet any superior manager in Holland Village and had not interview relevant tax department or land management department in Shenyang for the tax evasion issue, so he just sensationalized the news. There was only one sensational sentence: “Yang Bin, Chairman of Board of Directors of Hong Kong Euro-Asia Agricultural Stock Co.,Ltd. (Netherlands nationality) mysteriously disappeared. Sources said he left Shenyang on July 10." This one sentence was enough to terrify the shareholders and investors of Euro-Asia Agricultural. Moreover, the identity of International Finance News as branch of People's Daily (East China edition) ad the position of www.people.com.cn made the news seem true. All of a sudden, this news has drawn domestic and overseas media attention.
Later, a reporter of Southern Weekly went to Holland Village and then published a fatal article. Dr. Wu Yong, Consultant of Japan’s China Venture Stock Co., Ltd. told me that many reports from Japanese TV channel gathered in two conference rooms in the office building of Euro-Asia Group for interviewing Holland Village, but nobody received them. It was too bad to describe. Later, Japanese reporters blamed Holland Village on the internet for this event. Dr. Wu Yong asked me:” Why didn’t Yang Bin send people to receive the reporters?” Zhou Xiang, Director of Reception Office of Holland Village and I could only shake our heads and bitterly smiled!
On July 11, the news that “Yang Bin went to unknown destination” and “mysterious disappeared” discovered by Lin Fang, reporter of International Finance News, was published. On that day, the stock price of Hong Kong Euro-Asia Agricultural plummeted 11.22% since the opening of stock market, dropped to HK$ 2.175, closed at HK$ 2.275, slumped n by 7.14%. Yang Bin told me that he lost HK$ one billion due to the article published by International Finance News.
On July 12, International Finance News published another report written by Lu Ke in Shanghai, titled A mysterious phone disclosed the whereabouts Yang Bin, and the Euro-Asia Agricultural shares slumped. It said in this article that “concerning the whereabouts of Yang Bin, there are many versions in Euro-Asia Group. According to Sina, on July 11, on the telephone, a Mr. Lin said that Yang Bin was in North Korea for a study and a Mr. Liu in President Office of Euro-Asia Group said that Yang Bin went to Japan for business and would be back on the day after tomorrow, that was, he would come back to Shenyang on July 13; and a Hong Kong media reported on July 11 that Euro-Asia Agricultural Secretary said that to Yang Bin was out for business and would be back in the morning of July 12 and met with Hong Kong's fund managers.” “The mysterious man calling us told that it is impossible that Yang Bin is in North Korea.”
Where has Yang Bin gone to? North Korea? or Japan？Or as said by www.people.com.cn and International Finance News that “Yang Bin is probably still in Shenyang?” There were a lot of versions at that time. The confused and imagined reports came from the various replies from different departments of Holland Village and resulted in Suspected of tax evasion and under investigation? China’s "No. 2" Magnate is Missing. This was also a failure of Yang Bin in public relations. Yang regularly went to North Korea to participate in negotiations on the “Pyongyang agricultural base” and “Sinuiju Special Administrative Region”, which required confidentiality and this was understandable. If he planned the work concerning public relations in advance and told the staff to speak with one voice, as well as receive the reporters properly, such serious mistake could be avoided. But Euro-Asia Group did not adopt the modern enterprise management model, and Yang Bin had never paid attention to the public relations and media work, appointing a person with no experience in charge of this job. So it was not surprising that the crises ultimately occurred.
On July 11, Yang Bin was informed in Pyongyang that the article “Yang Bin’s mysterious disappearance” written by Lin Fang was published in International Finance News, which caused the stock slump of Euro-Asia Agricultural. Zhao Yongchu, one director of Euro-Asia Agricultural asked Yang Bin to return immediately, because the fund managers would arrive in Shenyang by air at the same evening.
At 10 am on December 12, Yang Bin left Pyongyang, leaving his work unfinished, hurrying back. Shi Jun, Zhou Xiang and I went to Taoxian Airport to pick him up. At this moment, the shareholders and fund managers of Euro-Asia Agricultural have arrived in Holland Village, waiting for Yang Bin to explain and to make countermeasures. At 11:00 am, Yang argued with fund managers for two hours, explaining the business of the company and its future development.
On July 12, Yang Bin flied back from Pyongyang to Shenyang. At the same day, Hong Kong Daily News reported that: “Mainland media reported yesterday that Euro-Asia Agricultural Chairman Yang Bin, on suspicion of illegal land use and tax evasion, may have been investigated by relevant department. And he mysteriously disappeared days before. The information caused stock slump of Euro-Asia and resulted in slumps of other private enterprises.” “Many magnates listed in Forbes China's top tycoons are publicly criticized by Premier Zhu Rongji because of tax evasion. Relevant tax departments have begun special investigation on these private enterprises.”
On July 14, Yang Bin arrived to participate in the press conference especially held by Euro-Asia Agricultural.
Hong Kong’s Economic Daily published a brief report titled “Yang Bin appeared to refute the rumor, saying he was healthier”. The report said: "We appreciate everyone's concern and I do not mysterious disappear. I am healthier and my spirit is better.” “On the press conference yesterday, Yang Bin talked with the media for nearly an hour. Although he did not really speak his mind, the clearest point is that Yang Bin is not really missing.”
On July 16, Hong Kong Economic Daily said that “Euro-Asia Agricultural said Yang Bin has no intention of the reduction of the shares, so there can be no RMB one billion Yuans loans.” The article said that “Euro-Asia Agricultural (0932) yesterday (15th) again held a phone conference to explain to the fund managers. The stock prices dropping in continuous two days finally stabilized.”
However, Guangdong’s Guangdong-Hong Kong Information published on July 16 an article signed by Tian Chuan and Chen Sheng, doubting the press conference held by Euro-Asia Agricultural in Hong Kong. It was said that” Euro-Asia Agricultural (0932 • HK) held a press conference in Hong Kong yesterday afternoon, trying to clarify the reports of the disappearance of the Chairman of the company not long ago. Yang Bin also attended the press conference and answered the reporters’ questions, so the reports about Yang Bin’s disappearance were obviously not true. But why 'play missing’, and what is the support of Euro-Asia in agricultural growth were not clearly and positively answered.”
On July 16, another domestic media, Beijing Modern Commercial Daily published an article, directing at Holland Village “for illegal land use and tax evasion.”
On the same day, a reporter from Southern Weekly belonging to Southern Daily arrived at Holland Village, but the reporter was criticized for a few hours. As the reporters repeatedly explained the influence of Southern Weekly in the whole nation, Bian reported to Yang Bin on the phone and said that the report would be positive. Yang agreed that at about 5 pm, he would be interviewed at the corridor of Swan Lake while fishing. At about 11 that evening, Yang Bin asked me for a talk in his villa. Y Yang complained that Bian asked the reporter from Southern Weekly for an interview, asking old questions such as land permits, taxation, housing, loans and project funds, annoying me. I had nothing to say to Yang Bin’s complaint.
The article of Southern Weekly resulted in another stock slump of Euro-Asia Agricultural. Afterward, Yang Bin talked to the people close to him that: “One article of International Finance News made me lose one billion and Southern Weekly made me lose another 300 million. Newspaper reporters can never be offended.” At the same time, Hong Kong Sing Pao Daily News published a short article, saying that Yang Bin would invest on casinos in North Korea. Hong Kong's Ming Pao Daily News called Yang Bin and asked whether the casinos would be invested. Yang answered: “That is impossible.” And he criticized the rumors as “very outrageous.” But this short article caused another stock slump of Euro-Asia Agricultural of 15 35%, closed at 1  82 Yuans. Yang Bin lost another HK$300 million.
Yang Bin lost HK$1.6 billion due to a few articles of the media. So Yang began to review his information policies, but it was too late, the wave of reports on the “land, taxation, agricultural income, loans, project payment arrears," and so on flooded. In a certain sense, the well-prepared media accelerated the overturn of "Yang Bin myth”. Zeng Zimo from Phoenix TV first interviewed Yang Bin at the time that the domestic media questioned Yang Bin initiated by International Finance News and the overseas media also took part in. Hong Kong's Ming Pao Daily News published on July 19 that: Land for Yang Bin’s Holland Village is not permitted, reported by mainland media.
Ming Pao Daily News was an influential media in Hong Kong and Southeast Asian. Therefore, the report in this newspaper greatly influenced Euro-Asia Agricultural Stock Company. The report was not long, cited in the following:
Last week, International Finance News attached to People's Daily reported that the Revenue Department sent people to investigate the Shenyang Euro-Asia Agricultural (0932) Chairman Yang Bin for the problems of tax evasion and illegal land use. Following that, reporter of Southern Weekly attached to Southern Daily said that he went to Shenyang to investigate and quoted officials from municipal planning and land and resources bureau to confirm that the land of Holland Village was not permitted to use. In addition, the report pointed out that because of funding problems, the Holland Village project has been in a state of suspension since the end of last year.
Reporters tried to contact people in charge of Holland Village, but up to now, we have not contacted yet. Quoted words by Deng Song, deputy director of Shenyang Planning and Land and Resources Bureau, Yang Bin got the land permit and approved by superior officials. But the Holland Village project was not approved by planning department.
The report quoted Land Management Department officials that at present, Holland Village was repairing the procedures and would pay “hundreds of thousands Yuans” of state-owned land fee.
Main contractor of Holland Village was Nantong Third Construction Engineering Company. The report quoted Shen Mochong, general manager of Nantong, the funds was not in place and a large amount of project funds were in arrears. Shen Zhida, one of the construction company said that the project was suspended since the end of November last year and most workers withdrew.
According to the report, the amount owed was “at least 100 million Yuans”. Last year, Mayor and Sectary of Municipal Committee of the CPC of Haimen, Jiangsu, where Nantong Third Construction Company locates, came to Shenyang, but they returned with no money. Shen Mochong said, it was indicated in the contract that in case of arrear, property of Holland Village would be taken for the arrears at cost.
The report of Ming Pao Daily News attracted the attention of Hong Kong shareholders and readers also attracted Phoenix TV for Euro-Asia. This was a famous TV channel in Hong Kong. Hong Kong and Southeast Asia audiences concerned about politics and finance always choose Phoenix Satellite TV. And programs of this channel had already launched in the mainland, which were also liked and concerned about by domestic audience.
The crew of Phoenix TV arrived at Holland Vilalge in Shenyang on July 20. The famous emcee Zeng Zimo was arranged to interview Yang Bin. I remember at that evening, Yang Bin asked me to talk with him in his villa. He often called my villa after 11 pm when there was no visitor and I was sometimes waken up. He sent his driver to drive me to his residence to talk, even sharing the TV programs. He liked the documentaries on modern advanced weapons and American films of the shootout. During the chat on that day, he told me that Phoenix TV would interview him and asked me to participate tomorrow and take care of the reporters.
At 9:00 am on July 21, the three members of Phoenix TV came to Yang Bi’s office on the third floor of Euro-Asia office building. There were two men responsible for photography and sound recording and one young, beautiful girl. Later I knew that the people in charge of photography and sound recording were transferred from Beijing reporter station and the girl was from Phoenix Satellite TV, Hong Kong. She is Zeng Zimo, emcee of Phoenix Infonews Channel. The two men were busy laying out camera, lighting, cable…I sat on a sofa talked with Zeng Zimo. She is the Beijing native, a town fellow of mine. Her parents were teachers in a famous university in Beijing. Her family name is Zeng. And the name was from from Zeng-tse, Confucius, Mo-tse in the era of Spring and Autumn. She graduated from high school and went to university. As freshman, she got actually the city's only 660 points in "TOEFL" test. Later, she was admitted by the famous Dartmouth in the United States. After graduation, she was once an analyst in Manhattan's well-known international investment firm of Morgan Stanley, and completed many projects, including her own obsessing Sina battle, which she won from Goldman Sachs. Later, Zeng Zimo gave up the good job and came to Phoenix TV to be an emcee of Infonews Channel, mainly in charge of financial programs. She has the United States finance qualifications and experience of Morgan Stanley analyst, so it was easy for her to be a financial emcee. Later, in the evening of October 3, I met her and her Phoenix crew at Yang Bin’s residence in Holland Village. There were also three members, Zeng Zimo, a lady and a male photographer. This evening, Yang Bin personally cooked to treat them. This should be the last hospitality Zengzi Mexico and his party. This should be the last time for Zeng Zimo to meet Yang Bin. After Yang Bin was taken away by the police in Shenyang, I was particularly concerned about relevant reports on the Phoenix Satellite TV, watching financial programs presented by Zeng Zimo. She was different from other emcees, and she was very professional. Later, I heard that she was a good writer and a talented lady.
When she interviewed Yang Bin in the morning of July 21, I shot the interview and recorded their conversation. Because Phoenix TV is a relatively serious and responsible television media, so the reports shall be more objective and calmer. There would definitely no following, fickleness and forges like some newspaper reporters. Here I reproduce the conversation between Yang Bin and Zeng Zimo as follows:
Zeng: I want to chat about reports about your disappearance of the report. I would like to know when heard of this kind of reports?
Yang: Around July 10. At that time, I was on business and vacation in Japan and North Korea. Somebody called and told me that I was missing. I had planned to postpone the return date, but I had to return in the end. In about two days after I returned, there were calls from everywhere, particularly from my relatives, friends, some funds and reporters. I listened to about 500 to 1000 calls. This may be many peoples concern on me.
Zeng: Just now you said that you heard about your disappearance on the 10th, but I remember that, International Finance News first reported your disappearance on July 11.
Yang: Then it should be on the 11th, I remember the wrong date.
Zeng: What was your first reaction on hearing the news? Immediately rush back?
Yang: I was not willing to rush back at that time, because I have my own things to do, because I feel that I am after all a sincere person, because I have not disappeared. I called back, and a lot of people did not believe that, thinking my voice was false. Later, the managers of my company in Hong Kong and the mainland all advised me to return as soon as possible, so I gave up the important foreign appointments and returned.
Zeng: Where were you at that time, on business or on vacation, in North Korea or in Japan?
Yang: I went to several places, the first place is Japan, I also went to North Korea, on business while on vacation.
Zeng: So you business part was about Euro-Asia Industrial or Euro-Asia Agricultural?
Yang: About agriculture.
Zeng: I heard that you immediately met some fund managers after you returned, especially the four mysteries mentioned by International Finance News. So the first is about land-use right, according to International Finance News, it seems that your original land transferring certificate indicates that the land use is not comprehensive land use, but only for agricultural use. There seems to have changed a lot?
Yang: This is because many reporters may know little about our land condition. There are old and new land laws in China, our land of Holland Village is before December 31, 1998, when the old law was adopted. And the nature of our land can be changed at any time. Here are some certifications for you. Many people say that we are illegal. The first land certificate is issued by People's Republic of China, it is legal; as for the real estate, we have legal procedures. (Showing materials). This one is issued by Planning department, approval by Shenyang Planning department; the second is for real estate, project purpose approved by the Construction Committee; the third is project construction permit, including land permit. So we say that our procedures are completely legal, not illegal as some people said.
Zeng: It is clearly indicated in the procedures that the land use is comprehensive land use?
Yang: Yes, it is comprehensive land use.
Zeng: But I find some media, particular Hong Kong Ming Pao Daily News, reporting that, they seem to call a Zhang in Shenyang Land Bureau. According to this Zhang, they had investigated the land use since last year but it is complicated. So what is the detailed condition?
Yang: I think it is normal for some national authorities to investigate on the land, and the investigations are not against us, they are against more than 100 enterprises in Liaoning Province.
Zeng: International Finance News also referred to another question, that is, in the entire process of Holland Village construction, you have got a large amount of loan from the bank. But I also find that there is no liabilities in Euro-Asia, i.e., there is no liability in the listed company. So is the part of liabilities in Euro-Asia Industrial?

[Photo: On July 21, 2002, Zeng Zimo, emcee of Phoenix TV went to Holland Village to interview Yang Bin for the first time. Photo was taken by Guan Shan]
Yang: As an enterprise, it is not surely good if it is not in debt. It is normal for an enterprise to have liabilities of 30-40 percent. Our liabilities are controlled between 30-40 percent. We have loaned from ICBC, Shenyang branch.
Zeng: But this loan is in the name of the Euro-Asia Industrial?
Yang: It is in the name of Euro-Asia Industrial, real estate and part of Industries.
Zeng: Because there is a lot of news, even International Finance News is not talking about the debts; they are talking that if the company has the ability to repay. I seem to recall that one article sad they walked around on the construction field and many security guards also confirmed that a large part of the house has not sold yet, so I do not know if you are capable of returning the loan.
Yang: I can show you our real estate after the interview. Because our real estate has not been completed yet, in this condition, we have sold 30%, and the other 70% will be finished at the end of the year.
Have: When will you finish the estimation of sales of real estate?
Yang: I think we probably have the real estate of US$ 100 million.
Zeng: Can you reveal the amount of the ICBC loan? Because there are a wide variety of different guesses, some saying it is 350 million, and there are a number of other figures, so we feel very confused.
Yang: The total amount of the loan from ICBC is probably more than 400 million Yuans.
Zeng: Basically, the 400 million are all used in real estate? »
Yang: Yes, most are used in real estate.
Zeng: Apart from that, I think we are also concerned about the tax issue. Because recently, there are a lot of controversy on the personal income tax of many Chinese tycoons, and a considerable part of the reasons for your disappearance revealed by relevant reports is tax evasion, saying that you ran away to escape these problems, then would you please explain the tax issue?
Yang: Last year I was considered as the second magnate by the Forbes 100 magnates. This year, our nation conducted investigations on the magnates, and I am also investigated, it is normal.
Zeng: For you and for the company, when do you start to be investigated?
Yang: Twice, in March and July this year.
Zeng: It has been confirmed that there is no problem?
Yang: I think there is no problem.
Zeng: You judge from the results of the two previous surveys?
Yang: If there is any problem, I cannot be allowed to Hong Kong. In case of tax evasion, how it might be that I am free to leave the country?
Zeng: So now the company you invested enjoys some of the tax preferential policies?
Yang: Euro-Asia Industrial is a Netherlands-invested enterprise, mainly engaged in real estate. Euro-Asia Agricultural is an overseas-invested enterprise listed in Hong Kong. The former is still in the construction period, there is no income tax issue; the latter is listed in Hong Kong, the policy in China is called exempted for three years and halved, so according to the law, we begin to pay tax in 2003.
Zeng: As an individual, what is the situation of your personal income tax?
Yang: I am Dutch; if I leave the Netherlands for more than 180 days and I have no income from Euro-Asia Industrial Co., so there is no personal income tax. Euro-Asia Agricultural is a Hong Kong company; the income tax shall be paid in Hong Kong.
Zeng: If one day Euro-Asia Industrial in the Mainland begins to get profits, for its income tax and your personal income from Euro-Asia Industrial, what kind of means will you adopt to pay the income tax? Is it possible that like many of the tycoons to lower your personal wage and adopt a legal and reasonable to evade the tax? Or you will adopt some different means?
Yang: If the income tax of the enterprise is more, the personal income tax will be less. Now many tycoons in the world, including Li Ka-shing, many also do so.
Zeng: Let’s get back to the disappearance. In the whole incident, a place attracted our attention, which is North Korea. North Korea itself s very mysterious because it is closed and there are rumors that Yang Bin invested in a gold mine in North Korea, even in the market, I also heard someone said that the U.S. investment company may be frightened because the relation between the U.S. and North Korea is tense. So would you like to explain?
Yang: I went to North Korea for many times. It is very difficult to export China's fruit and vegetable to Japan, but they can be directly exported to Japan in the Korean peninsula. So in order to occupy the Japanese market, we went to North Korea to survey for several times.
Zeng: For North Korea, in fact, the rumors are not only about the gold mine. On July 11, the Hong Kong Sing Pao Daily News published such an article, and I just have a similar article on hand, saying that the boss of Euro-Asia Agricultural is going to run a casino in North Korea and has been approved by North Korean government. So what is the truth?
Yang: I think this is all rumor. I went to North Korea for many times; I was a business-minded person, I am very clear for what to invest. And I simply know nothing about the gaming industry, so how can I invest that?
Zeng: What do you think of the background of this event? Is it possible that some on planned the whole event?
Yang: I do not want to comment before I get more information. Moreover, I regret for being awarded the second magnate. I remember that my grandmother told me before she died that: "In future, how superior you are or how much money you earn, you should hide yourself.” I did not quite understand at that time, now I understand, and I think we entrepreneurs must hide ourselves.
Zeng: For many people in China, you may become famous overnight. Just as you mentioned, what did you do before ranking in China’s richest?
Yang: I went abroad in 1987 to the Netherlands. After the completion of my study, we engaged in apparel trade with China and Western Europe.
Zeng: How did you find these opportunities? Because an article on the Internet spreads recently, describing the ways of the magnates getting rich. The first way for you is fast-shoot. For example, you entered the Polish market, but you may be faster than others, did you recognize that this market will open?
[Photo: On July 21, 2002, Yang Bin was interviewed by Zeng Zimo, emcee of Hong Kong Phoenix Satellite TV, in his office in Holland Village, Shenyang. Photo was taken by Guan Shan]
Yang: At that time, Poland has just opened, Lech Walesa came to power. It took 15 years for negotiations on China's entering into WTO. They didn’t negotiate. They entered into WTO in one day. So they released the defense. We seized this opportunity.
Zeng: Did you experience some bitterness or some failure when you were engaged in textile trade in Western Europe or Eastern Europe? Because we heard that many people, the Chinese people doing business in Eastern Europe have all kinds of stories, so what is your story?
Yang: We had a hard time doing business in Eastern Europe, mainly security problems. Later, we gave up because we were not secured.
Zeng: I heard that it was the first enterprise you registered in Poland, so is it a pity to give up?
Yang: No, no.
Zeng: If we can choose once again, knowing that there are risks, would still choose to do that?
Yang: I think there are different phases for everybody.
Zeng: Then taking the money with you, at that time… I am not quite sure, you brought the money back to China to invest?
Yang: No, I returned to the Netherlands.
Zeng: You began the Holland Village project since then and chose Shenyang. So why did you choose Shenyang?
Yang: There were several aspects to consider. Because in China we inspected the greenhouse investment, and it is not proper in the place south of the Yellow River, so the greenhouse shall be in the cold areas; secondly, leaders in Liaoning Province and Shenyang City have close relationship with me, so they did everything to persuade me to choose Shenyang.
Zeng: I would like to mention a person's name, because there are many overseas media particularly concerned about the relationship between you and Bo Xilai, Mayor of Liaoning Province. Of course, the relationship between the two of you may be private, but because many overseas media have special attention on this, many overseas investors also have special attention on this?
Yang: Holland Village is the largest foreign-funded enterprise in Liaoning Province, with the largest scale. So it is necessary for Mayor Bo to be concerned about, but we have no relations in private.
Zeng: When you started your investment in Liaoning, Bo Xilai was in Dalian and you have some investment in Dalian. You knew each other at that time?
Yang: We had a Euro-Asia Agricultural in Dalian.
Zeng: Then did you enjoy any preferential policy because of this? For instance, I have seen discussions in some media, such as the loans of Euro-Asia Industrial. And many people are guessing that you get preferential policies because of the private relationship between you and Mayor Bo Xilai?
Yang: I have not loaned a penny since Mayor Bo came to Shenyang.
Zeng: You know that your first bucket of gold earned, and in the process of capital accumulation process, do you think there is no illegal act? You are completely innocent?
Yang: We can say that our entire development is to start from scratch, the process of development, perhaps there may be this or that the problems that society should not wear colored glasses, some small problems put it to enlarge and expand.
Zeng: Some materials say that there are some negative influences. May be we can find from the stock price of Euro-Asia Agricultural since its list. The several major fluctuations were responding to some news, but the biggest impact was on January 2 this year, the first trading day after New Year. Your stock price fell more than 20 percent. One of the reasons you have just mentioned is that Zhang Huaqiao asked the shareholders to sell. The other reason is an article in Far Eastern Economic Review article, so I would like to ask you then explain some questions in the article. One is the association traction announced at the end of last year, many investors think that the association traction is for the listed company to buy assets from major shareholders, and then the major shareholders can cash in. So would you like to explain?
Yang: We asked many senior managers to spend 30 million to buy the building. You can visit to the office building to see if it is worthwhile.
Zeng: There are also some greenhouse issues(land for greenhouse)？
Yang: Land for greenhouse is all bought in the name of Euro-Asia Industrial. It needed a lot of money. So we rent Euro-Asia Industrial to Euro-Asia Agricultural, which is the only association transaction. But the price was assessed by the U.S. assessment company instead of our company.
Zeng: Euro-Asia Industrial now, you seem to have mentioned before that you hope in the future, it will be listed in Nasdaq, or listed in the United States, some people might guess, for example, you are not the CEO, and your other whereabouts. So you mainly focus on that or on the real estate?
Yang: No, no, I know nothing about real estate. We have our own general manager in real estate.
Zeng: So what is the purpose if Euro-Asia Industrial?
Yang: Considering there lacks tourism projects on the northeast, I personally would like to leave something to the society.
Zeng: How much is the estimated sum of investment on real estate, or Euro-Asia Industrial?
Yang: Estimated 1.8 billion in tourism.
Zeng: At that time, the 1.8 billion included Agricultural and Industrial?
Yang: Industrial is my own. Agricultural is not only in Shenyang, it is everywhere at home and abroad. The amount of investment on Industrial is large. The real estate is finished and we now mainly focus on the theme. Taking into account the impact of some foreign countries, we decided to transfer a part of the shares to foreign investors.
The interview with Yang Bin by Zeng Zimo was not done without any letup. There were several short pauses for Yang Bin to answer important long distance phone calls from Hong Kong and abroad and for Yang Bin to have a smoke. Yang Bin was a smoker who never stopped stopping, and he only smoked “555” cigarettes.
When the interview was close to the end, Zhao Yongchu, director of Euro-Asia Agricultural asked me out and handed me a copy sent from Yixing Financial Public Relations Company, which was the short article published by Hong Kong's Sing Pao Daily News, titled Yang Bin to be North Korea Casino Tycoon. The short article was Cantonese, and the following is the translation:
Yang Bin, Chairman of Euro-Asia Agricultural (932), who was disturbed by negative news recently, said on Sunday that he went to North Korea and Japan for “commercial secrets.” What do you think is the secret? An old friend told me privately that Yang Bin went to North Korean to invest in casino. We heard that the plan has been approved by the North Korean government and he got a piece of land!
How much is the investment? The old friend said there was no specific plan, which is because Yang was tied Holland Village project, and there are not sufficient funds on hand. So by the end of May and early June he will went to Taiwan in hope that he could find Taiwanese investors. He has been helped by Taiwanese, which is not yet known.
In fact, Yang Bin is so capable that he could be approved by North Korea, which is more conservative than China, for opening a casino. He knows that casinos can help create employment opportunities for economic development. But the potential customers for the casino in North Korea are people from the mainland, and the Chinese government will not be pleased, no wonder that Yang dare not publicize this issue.
Yang Bin liked gambling, but he would not run a casino. I had asked him, and he said that a casino could earn a lot without any loss. But the as the future chief executive of Sinuiju, he could not engage in business, let alone running a casino. "In the future, I can not even go to the casino!” There was a tone of pity.
Zhao Yongchu called me out to ask whether the interview with Phoenix was over. I said “It is over.” He said that the article Yang Bin to be North Korea Casino Tycoon caused another stock slump for Euro-Asia. Was it proper that Yang Bin should give an answer to Phoenix on this issue? I came back and asked Yang Bin out to discuss with Zhao Yongchu. Hearing that, Yang returned to office and told Zeng Zimo about the Sing Pao Daily News. Then Zeng asked the casino issue.
Thank God, “Fundamental Law” was finally finished
Media at home and abroad, especially Hong Kong's media, almost focused on every move of Yang Bin every day. The stock of Euro-Asia Agricultural stock kept down, he was very annoyed. But he had no way to vent. The domestic news media gathered in several hotels around Holland Village and they went to Holland Village from time to time, hoping to get some information about Yang Bin.
Premier Zhu Rongji went to Liaoning for inspections. It was reported that Zhu asked Yang Bin and Holland Village. A director of Shenyang Municipal Government personally came to Holland Village and met Yang Bin, saying that the superior wanted a resume of Yang Bin. Yang did know why, but he had to write a detailed resume to the director.
Some time ago, State Administration of Taxation and land planning departments to Liaoning, together with provincial and municipal tax, land planning departments came to investigate the problem concerning Holland Village. They were still in Shenyang, pressing on with their work.
All these news made Yang Bin depressed and annoyed. However, he had to pretend to be normal to others and managers of the company.
And the Sinuiju Fundamental Law had not finalized yet. So Yang Bin asked North Korea for the signing date of the contract. Finally, North Korea told him that North Korea delegation would come to Shenyang recently.
On August 3, the North Korea delegation led by Kim Dongkyu arrived in Shenyang. There were only seven or eight members, less than all previous delegations, but they were the most capable and the most superior.
On the day that North Korea's delegation arrived Holland village, Yang Bin hosted a dinner in the tropical rain forests glass hall of Swan Lake. The number of members of Yang Bin delegation was also the least, only including seven or eight members, such as Yang Bin, Ma Ning, Weng Yongxi, Tong Lianfa Wang Huidong, Wang Nuo and Guan Shan. The members absent were Luo Weijian, Zhou Fangsheng, Li Su, Yang Dayong, Cui Yang, etc.
The meeting was scheduled from August 4 to August 13, covering ten days. In the afternoon of August 14, the North Korea delegation would leave Shenyang to Pyongyang by air.
There were two groups respectively on “Fundamental Law” and “the Agreement”. The discussions were on and off. The key was to determine the content and text of the two legal documents.
Yang Bin and Ma Ning were in charge of the “Agreement group”.
Kim Dongkyu as chief delegate of North Korea and another two representatives participated in the group.
The “Agreement group” mainly focused on the several issues concerning the future economic construction of Sinuiju. During the discussion to the port construction, Man Ning came to ask Wang Nuo in the Law group to take part in their discussion. Because Wang Nuo was in charge of port planning, and he was China's famous harbor design experts. They asked Wang the details, such as scale and prospects of port construction, how much money needed, how to invite investment, which is the main potential investors. While discussing investors, somebody suggested some well-known Hong Kong investors could be involved.
About the new constructed port on Daji Island, Wang Nuo said that he had never been there before and knew little about the site situation, such as location, sea water depth, sea water flow, road condition, etc. So he could not estimate the investment and speed for the construction of the port. He could only give a brief introduction according to the general design and construction rules in China.
But later, North Korea arranged Wang Nuo and others to go to Daji Island for a site inspection.
Wang Nuo said to me later: “On September 10, Yang Bin and I were Pyongyang, waiting for the approval of Basic Law of Sinuiju Special Administrative Region. North Korea informed me to go to Daji Island for a site inspection for the port construction. Vice Chairman Gui Shenghai of North Korea and a North Korean female translator accompanied us. They drove a Mercedes Benz car. Qiao Shengli and I went there on another Mercedes Benz car. We left Pyongyang at 4:00 am and arrived at Daji Island, North Pyongan at noon.
“Local government officials have already been informed by Pyongyang, waiting for us at the crossing to Daji Island. The local chairman welcomed us and brought us to the flat and deserted island. We went to the dam facing the sea, which was a sea dam of more than ten km made by stone. Now there were many large interlocking openings, which were obviously destroyed by sea water.
“The local government officials led us to a high pavilion on the island, where there was a picnic. We were treated by local seafood. Vice Chairman Gui asked them to bring out beer and sandwiches from the trunk of his Mercedes Benz. They both prepared lunch, so we talked while eating.
“The local chairman introduced that the island originally belonged to Tieshan Peninsula. The entire flat island occupied 50 square kilometers. In order to make more cropland, they spent years building the connection dam between the peninsula and the island, rod and sea dam. The hundreds of thousands of acres of saline-alkali land were transformed into endless paddy fields. General Kim Jong II especially came to visit after the completion. However, a few years ago, the natural disasters, non-stop heavy rain, flooding, wind swept across the waves, destroyed the sea dam. The entire island was flooded with seawater and rain water, and the paddy fields were destroyed. After the water receded, there only left saline-alkali land. What a pity that hundreds of thousands of acres of cropland was destroyed! In order to restore, we have been going on for more than two years in reconstruction, but our local human and material resources are limited, so we have made little progress.
“Local government officials were very glad to know from Vice Chairman Gui that a harbor would be constructed here. When introducing the conditions of the coast, they said that the general sea water depth near the island was 20 meters, and the further from the island, the deeper.”
Wang Nuo thought that the natural conditions of Daji Island were good, which was a natural harbor. It could be constructed into a port available for cargo ship of 10,000 tons. And waterfront industries could be developed on the fifty square km flat land, or even the entire industrial zone could be established here. Daji Island had a bright future. A completely closed freeway of 30 km could be constructed, which could directly reach Sinuiju.
Participants in the “Fundamental Law” group were Tong Lianfa, Wang Nuo and others. And the North Korea representatives were Vice Chairman Hsu Ming-kui and others accompanied and translated by Kim Ki-Xiu, Pak Song Ho and so on.
North Korea’s representatives put forward three issues to amend:
A. The airspace and marine belt of Sinuiju do not belong to the SAR; the civil aviation and maritime transport can make use of airspace and marine belt.
B. Power of final adjudication, death penalty in particular, shall belong to the Central Government.
C. Designs of the regional flag and emblem.
Professor Tong Lianfa thought:
A. There was no doubt that the airspace and marine belt belong to the nation. But the convenience for the region to use airspace and marine belt shall be ensured. The special would cooperate with foreign civil aviation and foreign shipping companies, which required the smooth of aviation and shipping.
B. Power of final adjudication shall belong to the special region. There shall be a Court of Final Appeal in Sinuiju. This was an international practice.
C. We had reviewed two sets of the regional flag and regional emblem designs. One set of red, blue and the other set of blue. We thought the blue one was better.
Wang Nuo and Tong Lianfa thought that there was an article about culture in the revised version of North Korea’s Fundamental Law, which expressly stated that "unhealthy culture shall be banned". They disagreed with this article. Tong and Wang believed that the term "unhealthy" was not accurate. There were different cultures and different understandings in different countries and for different peoples. Since it was a Special Administrative Region with market economy, many foreign cultures, including Western culture, shall be allowed to exist. Therefore, North Korea was advised to delete this provision.
After listening to the explanation of Tong and Wang, Vice Chairman Hsu understood and agreed to delete this article.
Afterward, Professor Tong said to me: “The North Korea representatives are very serious on the final revision and text of Fundamental Law.”
“Yes, in the past, they just talked about the content. But now they are working on sentences. So they are serious.” I said.
“It seems that they will hand the revised version to their Parliament for review. The approval of the special region is just around the corner!” Tong Lianfa said with emotion.
“President Tong, do you think it will work this time?” Wang Nuo asked.
“Definitely.” Tong nodded.
The three of us believed that “everything is in order except what is crucial”! The “crucial” was the approval of the supreme conference of Democratic People's Republic of Korea.
Thank God, after months of efforts, the “Fundamental Law”was basically finalized. The “Fundamental Law” was finally finished.
We were all relaxed, feeling easier.