Chapter 758 Using HSBC

After coming out of the Chinese Bank, Yin Jun felt relaxed.

Shen Bi is indeed Shen Bi, he is so domineering in everything he does.

He didn't say anything, "Our board of directors needs to study it." After making the decision, he directly asked Yin Jun to prepare detailed information.

As for the amount of the loan, Shen Biming said that as long as Yin Jun takes out the two major assets of Qilin Culture Company and the New Territories B Land Exchange Rights Letter, HSBC can handle the US$2 billion loan he requested.

Of course, within Kirin Culture Company, the three core assets of Kirin TV, "Kilin Weekly" and Transformers toys cannot be divested.

Yin Jun readily agreed, but he smiled bitterly in his heart.

HSBC took away all the most valuable things in one fell swoop. The remaining shares and assets were really not qualified for a $500 million loan from Xiangjiang Commercial Bank.

Even the most valuable 14.6% stake in Cheung Kong Group is worth around US$150 million at most.

Although "Qilin Daily" is now the largest and most influential newspaper in Hong Kong, it has not made a profit so far and is still suffering losses. A valuation of US$50 million is considered good.

Fortunately, Xiangjiang Commercial Bank does not care about everything.

After Yin Jun went to explain the situation, Chen Youhan agreed to the US$500 million loan more readily than Shen Bi.

At first, he said that he could just use Cheung Kong Group shares as collateral, but Yin Jun knew the dangers of the banking and financial industry, so he put all his property, including the mansion at No. 20 Shih Hsien Road, in Heung Kong Commercial Bank.

Since he was so helpful, he couldn't harm Chen Youhan because of his negligence.

Moreover, Yin Jun made up his mind that as soon as he had money turnover, he would immediately replace the money of Xiangjiang Commercial Bank to prevent Xiangjiang Commercial Bank from falling into crisis.

Why does Yin Jun think so seriously?

In fact, this is due to the internal Xiangjiang economic research data of Goldman Sachs and **** that he bought at a high price some time ago.

Investment banks such as Goldman Sachs release some important economic data and outlook every year, but a lot of more in-depth information is generally not made public. If you are not familiar with it, you cannot buy such information.

When Li Chaoren talked about the conversion of Huangpu Shipyard into commercial real estate, the prices of industrial land, non-industrial land, residential land, etc. that Yin Jun told him were obtained from this information.

In addition, after collecting the information a few days ago, Yin Jun felt that there was another aspect that deserved special attention, and that was Xiangjiang's financial industry.

As of December 31, 1980, there were a total of 113 banks, 1,033 branches, and 302 deposit-taking companies in Xiangjiang. Yumin Finance Company, which was exposed by "Kilin Daily" in November, was one of them. Deposit-taking companies are all business offices of foreign banks in Hong Kong. They just do not have a banking license, so they use this method to do business.

If you do some careful calculation, you will find that in such a small place as Xiangjiang, there are actually 415 banking institutions in total, which is really jaw-dropping.

In the history of the world, there has never been a place with so many banks operating.

In particular, the area of ​​Xiangjiang is only more than 1,000 square kilometers. With such a density, it is ranked first in the world.

Of course, if you look at the scale, there are only about 50 large-scale banks and depository companies in total, and the rest are not large in scale. Some banks even only have one or two branches.

In a few years, when giants such as HSBC, Standard Chartered Bank, China Banking Corporation, Industrial and Commercial Bank of China, and Nanyang Commercial Bank begin continuous mergers and reorganizations, and when the deposit-taking company model is loosened, the number of banking and financial institutions in Hong Kong will increase. The number has been reduced to around 120, which is still two-thirds less than the current 415.

Do you think Hong Kong needs so many banking and financial institutions?

Of course not!

Generally speaking, five or six banks with hundreds of branches are enough for the people of Hong Kong.

But why are there so many financial institutions in Xiangjiang and why can they still survive?

the reason is simple.

Many of them are not engaged in simple bank deposit and loan business, but many financial derivatives businesses, and even financial investment and speculation businesses.

Xiangjiang, one of the financial centers in the world, has various influences that can radiate throughout Asia.

This is quite impressive. Even after so many years of hard work, Singapore has not been able to snatch this position away from Hong Kong.

But in this era, in the early 1980s, so many banks and deposit-taking companies did not rely on as many various investment and money-making methods as in the future. They mainly relied on the jaw-dropping Land market and real estate speculation.

Compared with 20 years ago, the industrial land in Xiangjiang has increased by 280 times, non-industrial land has increased by 74 times, and residential land has increased by 82 times. It is obvious who is driving this.

Banks and deposit-taking companies, etc., play a very shameful role in this and are very important promoters.

On the other hand, the continuous and crazy rise in land prices and housing prices in Xiangjiang has also brought more banks and financial institutions to settle in Xiangjiang, wanting to get a share of the pie, which is why there are such a huge scale of 415 financial institutions.

Such a deformed financial model must bring extreme chaos.

For example, illegal loans, illegal deposits, misappropriation of reserves, participation in land speculation, etc. They are not preparing to do these things, but are already doing them, and they are getting more and more crazy and outrageous.

Therefore, when land and real estate encountered a crisis in the next two years, banks and financial institutions simply could not survive, triggering rounds of bankruptcies. Hundreds of companies closed down in one go. It was really disappointing. shocking.

With such a major premise, you will know why Yin Jun is so cautious about loans from Xiangjiang Commercial Bank.

If Yin Jun does not find a better source of profit in the next two years, then the US$500 million loan may not be repaid, which is a potential threat to Xiangjiang Commercial Bank.

Therefore, even to keep Chen Youhan, who has always supported him, Yin Jun had to work hard to make money and repay the loan.

In contrast, HSBC has no such concerns.

Let alone US$2 billion, if you lend another US$2 billion, it will have no impact on them.

There are 415 banking and financial institutions in Xiangjiang, right?

But HSBC alone accounts for half of the deposits in Xiangjiang. Do you think it is awesome? It's so awesome! !

Unless Hong Kong collapses, no one believes that HSBC will collapse. Therefore, in any financial crisis or bank run, there is never a long queue of cash withdrawals at the door of HSBC. Instead, HSBC pays for it every time. Go bail out the banks.

Therefore, Yin Jun received a large loan from HSBC partly because they were the only ones who could lend so much and had the guts to lend so much to Yin Jun; on the other hand, it was because cooperating with HSBC definitely brought great benefits. of.

HSBC's status in Hong Kong is not comparable to that of Hong Kong Commercial Bank.

This status is not only reflected in their strong financial strength, not only because they are one of the three note-issuing banks, but also mainly reflected in their influence on government financial institutions.

There is a famous saying in Xiangjiang.

Hong Kong is not in the hands of the Hong Kong government, but in the hands of HSBC and the Jockey Club.

Most of the Jockey Club's influence lies in the government's budget and its huge social network.

As one of the note-issuing banks, HSBC's influence is even more brutal and is directly reflected in all financial-related matters.

They can influence all financial policies and financial regulations in Hong Kong, including stock market affairs.

This is simply the Federal Reserve Bank of Hong Kong!

No, even more powerful than the Federal Reserve!

Yin Jun knew it.

Five years later, Hutchison Whampoa acquired Heung Kong Electric Group, which was not in compliance with the regulations. However, with HSBC on the side, the Chief Secretary of Hong Kong did not make a public offer for Cheung Kong Group.

Two years later, Hutchison Whampoa split off the non-power business of Heung Kong Electric to form Jiahong Company, but increased its shareholding from 23% to 53%, seriously exceeding the 35% red line stipulated by the Heung Kong stock market, but it was also exempted from public offer.

Subsequently, Li Chaoren made another beautiful move, increasing his shareholding in Cheung Kong Group to 37%. At the same time, Cheung Kong Group increased its shareholding in Hutchison Whampoa to 36%. These two made a sensation in Hong Kong. The Hong Kong Stock Exchange and other institutions also pretended to be fools in their shareholding increase plan and were exempted from public offers.

This is the strength of Li Chaoren, this is the power of HSBC!

Would you like to try someone else?

I'll beat you down immediately!

It is precisely because of the example of Li Chaoren that many super-rich people in Hong Kong later followed his example and exchanged terms with HSBC Bank to obtain their own illegal stock holdings and strengthen their control over the group.

The more shares they occupy, the more places they can operate, and the more they can control the fluctuations of the stock at any time.

Only ordinary investors and stockholders at the bottom are suffering.

Yin Jun will never defraud these ordinary people of their money.

However, if one of your own companies is listed in the future, you can increase your controlling stake through HSBC, which is a great thing.

Many people say that Yin Jun has a strong desire for control, and this is actually true.

He doesn't want the story of big capital driving away entrepreneurs to happen again in his company 30 years later.

What's more, there is no second person in this world who knows how to achieve success better than Yin Jun.

If you want Chinese entertainment to become an existence that can compete with Hollywood, young people can only rely more on their own decisions!

…

(I originally wanted to write 10,000 words today, but I really couldn’t. I’m sorry!)