Chapter 2560: The Press Conference

Gentry and household heads from Guangzhou, Nanhai, and Panyu filtered into the academy throughout the morning—some accompanied by family members, others by servants. A fair number of ordinary citizens curious about the Senate's new policies had also come to observe. Outside the gates, sharp-nosed merchants and peddlers had materialized with temporary stalls, eager to capitalize on the crowd. For the Senators' protection, Liu Xiang had transferred personnel from the Guangzhou National Army Saber Squad to secure the entrance. He'd also handpicked several veterans from the old runner corps who had once served at the Guangdong Examination Hall to conduct searches and screen visitors for dangerous items.

These old runners were masters of their craft—seasoned experts at searching examination candidates, their experience vast and thorough. When no one slipped them coin to look the other way, they could sniff out every conceivable cheating device. The trouble was, they showed precious little courtesy to ordinary people. Scholars both dreaded and despised the Examination Hall's notorious "searches." Anyone young or good-looking could expect wandering hands—groping disguised as protocol, liberties taken under official pretense. Their reputation was thoroughly rotten.

When Mu Min recruited these men as security inspectors, she made certain to train them properly. She standardized search procedures with exacting detail: which parts of the body could be touched, with what degree of force, and an absolute prohibition on full-body groping. The goal was to prevent unnecessary disputes before they started.

To handle female visitors, she also recruited several women from among the runners' relatives to serve as inspectors.

Chen Bangyan followed the security officer's directions—raising his hands, turning, lifting each foot in turn. After the inspector confirmed nothing amiss, he was waved through. As he passed, his eyes met the officer's for a brief instant. A subtle nod passed between them, and Chen Bangyan walked briskly on.

After a dry and lengthy policy lecture, Liu Xiang continued:

"Next, let us welcome Senator Ren Youzi, Secretary of the Guangzhou Securities Regulatory Commission, to address the recent Paper Cotton disturbance and take questions from the press!"

Holding a press conference had been the Propaganda Department's suggestion. Besides the Yangcheng Express, Guangzhou now hosted several newspaper offices and magazine publishers.

Some Senators questioned the necessity of multiple newspapers, but the Propaganda Department saw advantages in a diverse press. Indigenous demand for information was running high—whether for promoting literacy, publicizing new policies, or spreading scientific knowledge, more channels could only help.

Most of these publications had Australian backing, the majority having relocated from Lingao. They included established names like Tianshui Living Weekly, Readers' Friend, and Dianshizhai Pictorial. A few were purely private ventures—yes, some indigenous people had already grasped the significance of "newspapers," even if their understanding of "news" and "media" remained hazy.

At a Naturalized Citizen cadre's signal, applause rippled through the hall. A middle-aged man in a white shirt and black trousers walked to the microphone, cleared his throat twice, and opened his mouth to speak. Nothing came out. Frowning, he tapped the microphone. Still dead. The indigenous attendees could be forgiven their confusion, but from the Naturalized Citizen cadres behind the stage came a wave of murmured consternation—fragments of "malfunctioned again" and "this was supposed to be the latest technology" drifting forward.

Ren Youzi turned and beckoned to a young assistant. "Bring the amplifier over—yes, the one you call the 'Big Voice.'"

"Hello, hello. Everyone, please quiet down. Please, quiet."

He spoke while pressing his palms downward in a calming gesture. Gradually, the crowd settled.

"I don't think I came late today." Ren offered a small smile. No reaction from the audience. He shook his head slightly.

"Comrades, greetings. Journalists, greetings. Fathers and elders of Guangzhou, greetings. Today, on behalf of the Senate, I will briefly discuss the administration's views on certain minor fluctuations that recently appeared in our financial market, as well as the measures we intend to take."

"We have observed that some traders and investors have been dealing in so-called Paper Cotton. This is a financial instrument that emerged spontaneously among the populace. We believe the original intentions were good—people wanted to solve the practical problem of locking in future costs and benefits for buyers and sellers, and to promote the long-term development of our planting and textile industries."

Murmurs of agreement rose from the crowd; many heads nodded.

"However, Paper Cotton—this not-yet-standardized, not-yet-mature forward contract—has in practice produced many irrational behaviors, owing to the absence of a powerful intermediary guarantee institution. We observed unrealistic naked shorting, market cornering, excessively high turnover rates, quotes deviating wildly from recent transaction prices, self-dealing, wash trading, reckless leveraging—all of which led some participants with limited capacity to bear losses into, shall we say, tragedy. These are not hallmarks of a healthy market."

"So what conclusion did the Finance Ministry reach after analysis? We determined that this Paper Cotton should have been regulated long ago!"

The audience exchanged glances, then broke into clusters of murmured discussion.

Senator Ren maintained his smile and pressed on.

"Since the Guangzhou Exchange was established, it has successively issued non-preferred stocks and bonds from excellent, efficient enterprises including Nanyang Company, Dabo Shipping, Runshitang, Foshan Steel, and others. This opened a highway for financing the real economy while providing superior investment options for investors. The achievements speak for themselves. The administration affirms them highly—highly affirms them."

"However, this recent wave of private Paper Cotton trading has sounded an alarm. Off-exchange trading without government supervision—though not technically illegal—carries extreme risk. Some investors lacked the capacity for such speculation, yet insisted on borrowing at usurious rates. The results? Catastrophic losses! No choice left but to sell themselves to Nanyang..." He caught himself. "Ah, this selling oneself—it's very difficult to discuss. Previously, we didn't pay sufficient attention to this derivative product. I must offer self-criticism here. We failed to guide everyone's urgent needs onto a path of standardization and specification in time, leading to the current situation. We, too, feel deeply pained."

"Going forward, we will launch a 100-Day Major Action to Crack Down on Illegal Trading, thoroughly cleaning up all unlawful practices. Additionally, we are researching—yes, researching—what exactly? Primarily, how to satisfy everyone's investment needs. I understand Guangzhou is a prosperous, wealthy place; the amount of idle social capital is substantial. So we are also exploring whether, besides bonds, there might be other investment directions. This Paper Cotton incident has actually given us inspiration! At an appropriate time—not immediately, but at an appropriate time—we will launch standardized cotton futures and cotton yarn futures, providing manufacturers and investors with the highest-standard financial derivative services while ensuring the highest level of investor protection. This also actively responds to the administration's call for finance to genuinely serve the real economy."

"Good. That concludes my remarks. Journalists may now ask questions in an orderly manner."

The moment he finished, a bespectacled young man standing near the front raised his hand. Ren nodded, and the young cadre passed him the amplifier.

"Chief Ren, hello. I'm a reporter with Yangcheng Express. What specific regulatory measures does the Senate have planned for the futures about to be listed? When will contract information be announced? Thank you!"

"An excellent question. However, 'about to be listed' isn't quite accurate yet. After all, one cannot grow fat in a single bite. Conditions aren't mature; long-term investigation and preliminary preparation are still required. So we will first launch a simplified 'Prepayment Forward Contract' model with controllable risk. Simultaneously, we will promulgate corresponding Futures Trading Management Regulations—which may later, depending on circumstances, be elevated to law. We will publish a draft version soliciting opinions, and at that time, we will fully consult the broadest range of market participants. Contract information will likewise be opened for feedback. What I can reveal now is this: referencing the Great Song's mature derivative trading experience, combined with local conditions, the framework should guarantee both market liquidity and commodity delivery requirements. Good, next question."

An elegant young woman raised her hand. Ren happily directed the young cadre to let her speak.

"Dear Chief, hello! I'm Xue Xiao, a reporter with Readers' Friend. So happy to meet you again today—I feel truly honored! I'd like to know: what specific aspects embody the 'highest level of investor protection' you mentioned?"

"Ah... um..."

The audience barely suppressed their surprise, watching Chief Ren's eyes roll heavenward as he gathered his thoughts.

"The situation is as follows. First, we will levy a proportional Investor Protection Fund on each transaction. This clause is already in effect for securities trading. Given that derivatives are novel instruments with relatively high risk, we will initially collect a somewhat higher proportion—this also serves to suppress excessive speculation. Second, we will strictly manage investor access, requiring qualified investors with demonstrated experience and risk-bearing capacity before they may trade. Third, we will strengthen investor education, deeply instilling concepts like 'Investment carries risk, trading requires caution, buyer beware' in everyone's minds."

"Thank you so much, Chief, for taking time from your busy schedule to speak with us."

"Next question."

...Honestly speaking, press conferences and Q&A sessions like this had a somewhat performative quality. The main purpose was to familiarize indigenous people with the format, gradually accustoming them to obtaining authoritative Senate information through such events. That said, this particular round of questions hadn't been scripted beforehand—Senator Ren had room for genuine improvisation.

The gentry and wealthy households hadn't truly grasped most of what he'd said. They had, however, heard something of the Paper Cotton affair. Yet contrary to the Senators' assumptions, almost none of the gentry or wealthy heads had actually gotten involved. Rather, it was their housekeepers, servants, accountants, and other underlings—plus various concubines—who had entangled themselves in the speculation. For the established wealthy, such trading was still too bold by half.

From what they could glean, the Senate wasn't opposed to this kind of trading; the words even seemed encouraging. But that came as no surprise—everyone knew the Australians valued money above all else.

(End of Chapter)