Xinhua News Agency, Jinan, April 17th　Title: Small speculators claim to have invested 1 million yuan and earned 1 million yuan-revealing the speculation behind "garlic is cruel"

　　Xinhua News Agency "Xinhua Viewpoint" reporters Yuan Junbao and Liu Jinhui

　　Recently, "garlic you malicious" once again. According to the investigation of Xinhua Viewpoint reporters in Jinxiang, Shandong, Zhongmu, Henan and other major garlic producing areas, the decline in output and market supply and demand are the decisive factors of this wave of "garlic you are ruthless" market, but there are also many speculators who add fuel to the flames.

　　In the eyes of speculators, garlic market is like a casino. If you bet right, you can get rich overnight and return home in a luxury car; If you make a mistake, you will lose everything, and the debt collector will make it difficult for you to return home. Speculators influence prices through various means. Some small speculators bluntly said that "they invested 1 million yuan this year and almost earned 1 million yuan", and the funds of large speculators even exceeded 100 million yuan.

　　"Once in heaven, once in hell" is a big casino speculator with funds exceeding 100 million yuan.

　　"The world garlic sees China, and China garlic sees Jinxiang". In Nandianzi Garlic Market on Jincheng Road in Jinxiang County, hundreds of garlic brokers gather every day. It is known as "Garlic Wall Street" in the industry, and the garlic price in the whole country and even the whole world is dominated by it.

　　Jinxiang is one of the main garlic producing areas in China. The garlic in Jinxiang and several surrounding counties and cities accounts for more than half of the garlic production in the main garlic producing areas, and the inventory is more than 60%. Here, it is no secret that "garlic is fried". Sometimes a batch of garlic is changed hands several times without moving in the cold storage. Driven by the "garlic you are malicious" market, many investors become rich overnight.

　　"I invested 1 million yuan this year and almost earned 1 million yuan." Lao Cheng, a garlic merchant in Mamiao Town, Jinxiang County, said that he is only a small family, and the funds of more than 10 million yuan are considered medium, and some large families have funds of over 100 million yuan. Lao Cheng saved 200 tons of garlic last year, which was about 5 yuan/kg at the time of collection, and this year’s selling price was about 12 yuan/kg. Excluding the storage cost of 1 yuan per kg, he earned almost 5 yuan per kg.

　　Mr. Sun, a garlic investor in Linyi, Shandong Province, regretted not investing in garlic this year. "A friend earned 4 million yuan and just drove back a Mercedes-Benz with more than 1 million yuan two days ago."

　　It is understood that in July last year, when jinxiang garlic began to purchase and put into storage after harvest, the price was about 4.7 yuan/kg, but it reached 12.8 yuan/kg in mid-March this year, up 170%. "The highest price this year has exceeded the high point in 2010." Yang Guihua, executive director of Jinxiang Garlic Industry Information Association and secretary general of China Garlic Industry Information Alliance, said. 2010 is the year when "garlic is cruel" was widely known.

　　Huge profits also mean huge risks. The price of garlic peaked in 2010, 2012 and 2016, while it was lower in other years. Especially at the end of 2008, the price of garlic once fell to only a few cents or even a few cents a catty.

　　Zhongmou county, Henan Province is also an important garlic producing area. Mao Xiaoan is a garlic broker in zhongmou county, and has been working for 20 years. "I lost almost all my money in 2008, and I didn’t pay off the loan until last year." He said. Lao Cheng also told reporters that in 2012, the price of garlic fluctuated greatly, and he lost more than 600,000 yuan. Half of the money invested is your own, and the other half is raised by relatives and friends.

　　In 2012, a foreigner named "Zhu Laosan" came to Jinxiang. "At that time, he brought hundreds of millions of yuan of funds. As a result, after a large number of purchases, the price rose rapidly in the short term but fell quickly, but lost more than 100 million yuan." An industry insider in Jinxiang County said.

　　In the eyes of some garlic merchants, investing in garlic is gambling. Although they know that there are huge risks, garlic merchants still enjoy it. "If you earn money, you want to earn more, and if you lose money, you want to make money."

　　"Fried garlic" such as "stock trading" runs through the whole cycle of production, warehousing and sales.

　　According to Cui Xiaona, an agricultural product analyst at Zhuo Chuang Information, there are three reasons for this round of garlic price increase: First, the output has declined; Second, the demand for domestic demand and exports has not decreased or even increased; The third is hype. "In 2014, the national output decreased by about 8%-10%. The heavy snow and cold wave at the end of 2015 and the beginning of this year aggravated the expectation of garlic production reduction this year."

　　In the eyes of most garlic merchants, market supply and demand are the most fundamental factors that determine the price of garlic. "There are more garlic, and it is difficult for you to fry again." However, they also admit that speculation has played a role in fueling the flames, intensifying the fluctuation range of prices, and "anything can be used" in the process of speculation.

　　"At present, traditional business is not easy to do. Some big speculators, such as some real estate developers in Northeast China and Shanghai, who hold capital, have a hand of 30,000 to 40,000 tons. When there was less garlic on the market in March and April of the following year, they began to drive up the price and create the expectation that the price of garlic would rise sharply. " Liu Shaochen, president of zhongmou county Refrigeration and Preservation Association, said.

　　The reporter’s investigation found that the general expectation of garlic production reduction this year was the initial factor of garlic price increase, but in the process of news dissemination, some of them were exaggerated or even artificially used. "At that time, in the garlic exchange group, some people released news of garlic production in some areas, but it was later confirmed that it was not so serious." A garlic operator in Jinxiang said that especially at the end of February this year, garlic merchants held a fresh-keeping industry conference in Shandong. The data from the meeting said that the national inventory was only 600,000 tons. Since that day, garlic has started a "crazy rise" mode.

　　In addition to making a fuss about the true and false news, according to many insiders, in the process of price manipulation, big garlic merchants have many means, one of which is to buy and sell themselves, create price illusions, and guide other garlic merchants to follow suit; Second, when preparing for shipment, we bought it at a higher price, but the actual purchase volume was small, and at the same time, we secretly signed a large number of orders for shipment. "It is very similar to stock trading, and various methods and means are used, even more." An industry insider said.

　　According to industry insiders, in recent years, in order to ensure the source of garlic, garlic merchants have generally begun to "secure land" before garlic goes on the market, that is, to buy future garlic in advance at a certain total price. "Gambling garlic has run through the whole cycle of garlic production, warehousing and sales."

　　When does Garlic City Casino close?

　　Although the price of garlic has skyrocketed, for many garlic farmers, the direct benefits are few. Chen Dongfeng, a garlic farmer in Yuzhuang Village, Wang Pi Town, Jinxiang County, said that he had to put it in storage before September of the previous year. The price he sold was 4.4 yuan/kg, and it didn’t matter how it rose after that. All the people who made money were fried garlic.

　　With the listing of new garlic in various places, the price of jinxiang garlic has dropped to about 8.4 yuan/kg. Experts in the industry said that the most fundamental thing to reduce the skyrocketing garlic is to stabilize the planting area and output, and on this basis, increase the release of authoritative information, increase market transparency and reduce the space for speculation.

　　It is understood that Jinxiang County has introduced garlic price insurance to promote the enthusiasm of garlic farmers. Yang Guihua said that the insurance price is determined by the average price in previous years, planting cost and other factors to protect the interests of garlic farmers. Chen Dongfeng and other garlic farmers said, "This is a good guarantee for us."

　　Some insiders believe that it is difficult to identify and supervise garlic speculation. On the one hand, there are still different views in the industry on whether the phenomenon of hoarding goods and reluctance to sell goods belongs to market behavior or artificial manipulation; On the other hand, even if large merchants are United, it is difficult for relevant departments to grasp specific evidence.

　　How can we reduce hype? Yang Guihua and others believe that authoritative information release should be increased to reduce unreasonable expectations. Some insiders suggest that on the basis of standardization, futures trading should be moderately carried out to achieve an effective balance of multiple short positions, so as to stabilize the price of garlic.

　　　　According to Caijing, Teng Wancui, member of the Standing Committee of Xiangxi Autonomous Prefecture, Hunan Province, and Minister of United Front Work, was "double-regulated" by the Hunan Provincial Commission for Discipline Inspection on October 24 due to serious violations of discipline such as illegal fund-raising. Up to now, 113 cadres of party and government organs, enterprises and institutions have been investigated for the alleged "illegal fund-raising incident in Xiangxi".

　　The early withdrawal of officials caused the fund-raising chain to break.

　　　　The reporter was informed that Teng Wancui was taken to Changsha for investigation by the Hunan Provincial Commission for Discipline Inspection more than 10 days ago, and her husband Liu, who works for Xiangxi Agricultural Bank, was also investigated. According to informed sources, Teng Wancui’s main problem is to participate in illegal fund-raising and withdraw principal and interest in advance, and the amount of fund-raising is huge. In addition, Teng Wancui is also suspected of taking bribes and participating in mine management.

　　　　In recent years, a number of enterprises in Xiangxi have long used the promise of high interest returns as bait to attract private funds, involving thousands of fund-raising households, absorbing more than 10 billion yuan, and a large number of government officials participated in fund-raising In mid-2008, some government officials involved in fund-raising got the information and withdrew the principal and interest in advance, which triggered the fund-raising chain to break.

　　　　Since then, in less than half a month, some financing enterprises in Jishou City, the seat of Xiangxi Prefecture, have taken away at least 1 billion yuan, and most of them have broken their capital chains. Worried that it would be difficult to recover the principal, on September 3 and 4, more than 10,000 fund-raisers gathered twice to contain the Xiangxi government and the railway station, and then the police force was used to calm down. Since then, fund-raisers have blocked the Xiangxi government twice.

　　Conceal and lie when being investigated.

　　　　The reporter was informed that during the investigation by the Hunan Provincial Commission for Discipline Inspection and the task force of the Provincial Supervision Department, Teng Wancui had serious intentional concealment and false reporting when explaining that he, his spouse and his children participated in illegal fund-raising in Xiangxi.

　　　　According to the reporter’s understanding, Teng Wancui is mainly suspected of participating in the illegal fund-raising of Xiangxi Rongchang Group and Jishou Guangcai Real Estate Development Company, and is closely related to these two enterprises, and Teng Wancui once paid more attention to Guangcai Real Estate Company.

　　　　Teng Wancui was born on December 22, 1959 in Fenghuang County, Xiangxi Prefecture, Hunan Province. She was a native Tujia female cadre and ranked fourth in the Standing Committee of Xiangxi Prefecture before the incident.

　　　　According to the relevant personage of Xiangxi government, Teng Wancui is bold by nature and good at approaching leaders. Teng himself was recruited into the Grain Station of Fenghuang County Grain Bureau in his early years and later turned into a cadre. Since then, Teng, as a female cadre of ethnic minorities, has been sent to South-Central University for Nationalities to study, and later served as a member of the Party Committee, office director and theoretical teacher of the Party School of Fenghuang County Committee, and has since embarked on a career. Since December 2002, he has been promoted to the Standing Committee of Xiangxi State Committee and Minister of United Front Work.

　　　　People close to the task force revealed to reporters that Teng Wancui was also suspected of taking advantage of his position to accept bribes; Participate in mining and tourism project development, and obtain illegal benefits from it.

　　　　In fact, Teng Wancui is only one of many party and government officials suspected of illegal fund-raising. In mid-October, the preliminary investigation results released by the Hunan provincial government showed that 113 cadres of party and government organs, enterprises and institutions had participated in fund-raising, among which quite a few were party and government officials at or above the county level.

　　More than half of Jishou’s families participate.

　　Many residents sell houses to raise funds.

　　　　Private fund-raising in Xiangxi has been going on for some time, but large-scale fund-raising began in 2002. By 2008, illegal fund-raising reached a fever pitch, with monthly interest generally above 8%, and some enterprises even as high as 10% to 12%.

　　　　According to the analysis report released by the People’s Bank of China Xiangxi Autonomous Prefecture Sub-branch in July 2008, by the end of June 2008, the scale of private lending in the autonomous prefecture was nearly 7 billion yuan, accounting for more than half of the total loans of financial institutions in this region in the same period.

　　　　At present, the Xiangxi government has sent a working group to conduct liquidation of 12 enterprises with large illegal financing. A police officer involved in the investigation of illegal fund-raising told reporters that it is conservatively estimated that the total amount of illegal fund-raising may exceed 10 billion yuan.

　　　　On September 4th, Jishou Municipal Government issued a notice to register the fund-raising situation, and set up 28 fund-raising registration points in the urban area to check the fund-raising situation. The urban population of Jishou City is less than 200,000, and more than half of the families have participated in illegal fund-raising. In eight counties under the jurisdiction of Xiangxi, such as Longshan, Fenghuang, Guzhang and Huayuan, illegal fund-raising is also quite serious.

　　　　In addition to the above-mentioned key financing enterprises, the local public security organs are still investigating more small financing enterprises. According to police sources, "the financing amount of these investigated financing enterprises is about 200 million yuan, and some of them have been found to be suspected of fraud."

　　　　Illegal fund-raising has a great influence on all aspects of Xiangxi. The reporter learned in Ganzhou New District of Jishou City that the Xuantan community, which has the highest amount of illegal fund-raising, has raised more than 100 million yuan. Many residents even sell houses to raise funds and borrow money, and their lives are in a difficult situation because of no return of principal and interest. (Reporter Ouyang Hongliang)

Editor: Li Xian