Zhongshan Public Utilities Faces The Test Of Crisis

On June 1, Zhongshan Public Utilities (SZ. 000685) announced that the company had important matters to be verified, and the trading was suspended on May 31. Almost at the same time, the media disclosed that Li Qihong, Mayor of Zhongshan City, was taken away by the Central Commission for Discipline Inspection for being suspected of economic crimes, and the reason for the investigation may be suspected of insider trading in stocks, and the company involved is Zhongshan Public. On June 2, Sun Yat sen Gong announced again that, because Chairman Tan Qingzhong and General Manager Zheng Xuling could not perform the duties of Chairman and General Manager for the time being, in order to ensure the normal operation of the company, Zheng Zhongqiang, the director, was authorized to exercise the duties of Chairman on behalf of Tan Qingzhong and exercise the duties of General Manager on behalf of Zheng Xuling. However, the announcement did not explain why Tan and Zheng could not perform their duties temporarily. In the following days, the media reported a large number of "insider trading cases" in 2007, and the reason became clear. Before the news broke out, its share price had fallen sharply. Some fund company managers pointed out that it might be because someone had obtained the news in advance and shipped. China's capital market "insider trading cases" are always emerging in endlessly. Compared with other insider trading cases, the case of Zhongshan Public Utilities may not have its uniqueness, but only one of many cases. However, from the perspective of the development of China's water industry, the public event in Zhongshan, with environmental water as the main business, has sounded a "alarm bell" for the healthy and long-term development of the industry.

From the perspective of global enterprise development, most enterprises that can grow into market influence have a lot to do with their leaders. For example, when it comes to the pioneering shares of domestic water industry leaders, most people will think that it is a "good boy". Let's look at the chairman of Zhongshan Public&mdash& mdash; Resume of Tan Qingzhong, who used to work at the People's Bank of Shaoguan City, and later served successively as the deputy section chief of Industrial and Commercial Bank of Zhongshan City, the general manager of Zhongshan Branch of Guangdong Industrial and Commercial Bank Trust and Investment Company, the general manager of Zhongshan Securities Business Department of China Huarong Trust Company, the general manager of Guangdong Securities Management Department of China Huarong Trust Company, and the general manager of Zhongshan Business Department of China Galaxy Securities, Deputy General Manager of Asset Management Headquarters of China Galaxy Securities Company, Deputy General Manager and General Manager of China Galaxy Fund Management Company; He is currently the chairman of Zhongshan Public Utilities Group Co., Ltd. From his resume, his qualifications and background are closely linked with the financial market. Time Weekly article&mdash& mdash; The Zhongshan Public Insider Trading Survey: The Ghost Tan Qingzhong Desperate Capital Crazy Trip pointed out that the constantly presented facts seemed to imply that the man who emphasized that he was "not an expert in capital operation" was actually an "invisible capital player" who "lacked industrial experience and the company operation was based on the capital operation he was familiar with".

According to the announcement issued by Zhongshan Public Utilities on June 2, the company successfully acquired 100% equity of Chang'an Futures on May 30. Some media reported that its next investment target may be GF Huafu Securities Co., Ltd. It can be seen that its operation in the financial market is strong. Zhongshan Public Utilities, with public utilities as its core, shows its unique love for the financial market. However, enterprises that deviate from their main business will always go astray. A well-known expert in the industry revealed to the reporter of China Water Network that it is rare to see the chairman of Zhongshan Public Utilities at the water industry event attended by senior executives in many industries. He said that Tan Qingzhong was not a professional in the water industry, nor had he entered the circle of the industry. He was focused on capital operation, and did not really study how to do a good job in the water industry. When the financial market situation is good, relevant companies will benefit handsomely. The shock of the financial market may lead to the rupture of the company's capital chain. The development of the water industry needs the support of continuous capital flow, and the risk of indulging in the capital market is self-evident.

As a media in the industry, China Water Network believes that the crisis ridden Zhongshan Public Utilities has brought a warning to the industry: China's water industry needs the participation and dedication of professional and dedicated water enterprises. On the one hand, for the water industry with capital precipitation, it needs a large amount of stable capital flow support, and financing through listing is the capital source for long-term development of enterprises, so enterprises should be encouraged to take a healthy way of financing through listing. On the other hand, the water industry is related to the national economy and the people's livelihood. Its healthy development needs responsible enterprises and enterprises that can sink down to do business. It is hoped that the public event in Zhongshan can give enlightenment and warning to enterprises that have listed or are preparing to list in the industry. Focusing on professional work is the way for healthy and long-term development of enterprises and industries. It is also hoped that Zhongshan Public can get out of the shadow of this adverse event and become a truly healthy listed water company.