Chapter 1201 I Figured It Out
In the central government, Fan Xin naturally understands that many things are not easy to do.
But this time, the Singapore government exposed its fox tail and openly occupied the forefront of the war, which naturally gave him a good opportunity to take action. After all, Fan Heng, influenced by his son Fan Wubing, has always had no good impression of Singaporeans who make a lot of money from China's financial industry.
If you want to deal with the Singapore government, the first thing you can't get around in China is Temasek.
In the past 20 years, Temasek has mainly relied on the investment and business cooperation of its affiliated companies to participate in China's economic development. In the 1980s, its investment was mainly concentrated in real estate, hotel industry and service-related industries. Now its investment areas cover a variety of industries from finance, manufacturing to ports, transportation and logistics, and it has increased its own direct investment.
But after the Asian market began to be cautious about Temasek, whether it can follow the above-mentioned existing strategy requires more delicate operations, especially in personnel layout before business layout.
Now the top management has arranged Fan Heng to sit in Hong Kong. The main thing is to see how Singapore reacts. Will it make some private explanations because of Goh Chok Tong's outrageous remarks?
Chinese enterprises and the government are already familiar with Temasek. These three characters are the transliteration of the Malay word for "seaside city" and the old name of Singapore in the early years. They first appeared on the map brought back by Zheng He during his voyage.
In 1974, Temasek became the name of a sovereign wealth enterprise that Singapore's finances use to control and preserve and increase the value of state-owned assets. As of now, the net value of the investment portfolio managed by Temasek has exceeded 60 billion US dollars.
Before the Asian financial crisis, Temasek could maintain an average return rate of 18%. After the Asian financial crisis, Singapore's economy suffered a severe setback and Temasek was in a difficult situation. Last year, the average return rate fell to 3%.
Last year, Ho Ching, who was then the CEO of Singapore Technologies, was appointed as the new president of Temasek by the Singapore government at the time of the defeat.
Ho Ching is the second wife of Lee Hsien Loong, the son of former Singapore Prime Minister Lee Kuan Yew. Singapore Technologies is an unlisted holding company of Temasek, responsible for engineering, technology, military and real estate businesses.
Ho Ching and Lee Hsien Loong often disagreed. Although Lee Hsien Loong was the Minister of Finance at the time. But he cannot make any unilateral decisions, he is just a member of the team. Lee Hsien Loong was reluctant to let Ho Ching take over as the president of Temasek, because it meant an embarrassing situation. His wife needed to report to him. For this reason, Temasek specially revised the board charter, and Ho Ching reported to a nine-member board.
However, in the second year after Ho Ching joined Temasek. That is, this year, the company is expected to create a profit of 7.4 billion Singapore dollars,
which is 30 times the profit she made in the first year after joining Temasek. It contributed 10% to Singapore's economy.
Ho Ching made a strategic decision for Temasek that now seems to be very important: no longer put the main investment in Singapore, leaving only one-third in Singapore, one-third in Asia, and the other one-third outside Asia. This is a decision that is not easy to understand for Singapore, which was hit hard by the Asian financial crisis and recovered to its current level. After all, every country hopes to retain its investment as much as possible.
Unexpectedly, Temasek's investment in China soon gained historic opportunities and huge returns, among which the most notable one was the Chinese banking industry feast.
Temasek first entered mainland China in the 1980s, with a wide variety of investment projects. But it was not until last year that it really entered China in a big way. Temasek, which actively entered China, quickly seized the great opportunity of China's financial industry reform and participated in the capital feast.
Under some agreement frameworks, Temasek will assist Bank of China in improving its corporate governance. Including recommending a director candidate to Bank of China, in addition to focusing on improving corporate governance, Temasek will use its network in the Asian financial sector to help Bank of China develop talent resources and technological foundations.
The relationship between Temasek and China's financial industry is not just a simple investment. They are also further trying to join hands with China's financial industry to invest in the international market and develop a deeper cooperative relationship.
Although Singapore has been ruled by the People's Action Party for a long time. However, the operations of Temasek and the Singapore Government Investment Corporation are basically not affected by government behavior. Like private enterprises, the board of directors is the highest authority for corporate decision-making. It can be said that the separation of government and enterprises and the market-oriented operation of state-owned enterprises are the key to the success of the Temasek model.
As a state-owned enterprise, Temasek does not rely on the soft budget constraint of government finances. On the contrary. Through corporatization, the company can not only pay taxes to the fiscal system according to corporate standards, but also transfer investment income to government investors based on the rules of owner's equity. Based on the relationship between stakeholders, state-owned enterprises under the Temasek model actually play the role of government control over the financial sector.
A core idea of the Temasek model is to use the government to wholly own holding companies. Through the platform of holding companies, the government invests in enterprises with financial resources, reflecting the rights of the government as the largest stakeholder of enterprises.
Through the influence of holding companies in the boards of directors of various enterprises, the government indirectly controls the economy in the market. On the other hand, the government does not directly intervene in the corporatization of enterprises, nor does it directly intervene in the market. Through the price mechanism, enterprises can make profits in the market. At that time, the profits will be shared through the channels of holding companies, forming a virtuous circle.
Temasek's unique model and successful investment operations in China have objectively cultivated high-level financial talents for China and invisibly served as a training base.
However, these people's business philosophy. It has also been seriously affected by Temasek, which has actually harmed China's national interests.
At this time, Fan Heng had only been in Hong Kong for a day, and news had already come out that despite Singaporean Prime Minister Goh Chok Tong's wild words and aggressive propaganda, Temasek had begun to operate privately. In an attempt to mitigate possible counterattacks from China through donations.
"Journal.com has received news that Temasek and its six Singapore companies plan to donate 20 ventilators for hospitals and two thermal imaging scanners for the Civil Aviation Administration of China." Fan Heng said to his son Fan Wubing, "And He Jing also wrote to Deputy Prime Minister Wu, saying that they were very inspired by the drug addicts' struggle against terrorism and hoped to express their confidence and support for this important task in China."
"Tsk, how much is this worth?" Fan Wu Bing said scornfully, "Let Goh Chok Tong say what he said in reverse, and I will give him two hundred ventilators in return, which is enough for his grandchildren!"
Fan Heng continued, "In addition, they also promised that after the epidemic crisis is basically resolved. Temasek took the lead in launching the largest event in the history of China and Singapore in Shanghai, showing their confidence in China, and plans to invite the United States, the United Kingdom, Global investment representatives from Europe, Australia and the Middle East come together.”
"There's nothing unusual about this. It's just for popularity. I don't need to put in any effort to do it. I can do it even now. I don't see any sincerity or remorse in it. But, what does the higher-ups mean? ?" Fan Wubing asked.
"There are some differences of opinion among the senior management, and they are obviously more seriously disturbed by Xi Yijie." Fan Heng replied, "Probably Goh Chok Tong's former secretary will come to Hong Kong to explain this matter. If the central government feels that it is not appropriate to offend Singapore. , this matter is probably over." Fan Ting frowned and replied, "And it is said that Temasek is planning to use US$1.5 billion in exchange for 5% of Bank of China's shares. It’s not settled.”
"So cheap?! Selling state-owned assets at such a low price!" When Fan Wubing heard this, he immediately jumped up and shouted, "Sell it to me, can I pay you two billion dollars?!"
In fact, Temasek's appetite is indeed huge. Relying on his connections in the mainland and using the pretext that he was proficient in financial industry management, he plundered the equity of several major state-owned banks, but the price was very high. This was something Fan Wubing had heard of in his previous life. When I encountered this opportunity, I naturally wanted to kick Temasek away and go into battle myself.
When it comes to capital, management team, and management experience, how can Temasek compare to Fan Investment Group? Fan Investment Group's annual profit is several times greater than Temasek's total assets. There is no comparability between the two.
Now that Singapore has taken the initiative to break up with China, from now on, China no longer has to think about Singapore when considering these economic construction projects. It simply considers only its own interests. No one can even think about making irresponsible remarks on this. China is actually a big relief. Isn’t that a good thing?
Furthermore, China and Southeast Asian countries only need to deal directly with each other. There is no need to go through ASEAN. The existence of ASEAN has actually become a stage for Singapore to dance and raise its status. In addition to being beneficial to Singapore, it is also beneficial to Singapore. China and other countries don't have much to gain.
Since then, China has quietly put ASEAN aside and dealt directly with relevant countries. This has actually undermined Singapore and reduced the opportunities for this charlatan to commit fraud. This does no harm to anyone. If the Kra Isthmus Canal project or the Myanmar land transportation project can be completed, the feasibility of the United States using Singapore as a base to blockade China will be greatly reduced, and the importance of the United States using the Singapore base will also be reduced accordingly.
As a result, Singapore will not be able to get a good price if it wants to sell its base.
Even if it is sold, the principal purpose of the county is not so much to deal with China, but to deal with the surrounding Muslim countries. Naturally, those countries will understand this. That way. Countries that want to clean up Singapore have their own people, and there is no need for China to say or do anything.
Fan Wubing thought about it for a while and felt that this time the media should take the lead and the economy should take the lead. It would be beneficial to him and not harmful at all to kick Temasek out of China.
What's more, rather than giving away the shares of several major state-owned banks to outsiders, it would be better to benefit oneself. At least it can be sold at a good price and the loss of state-owned assets will be less.
One by one...Today's article: more sent to "one by one continent" (to be continued)