Chapter 318: Crazy Borrowing Money to Buy Land
Hang Seng Bank had previously loaned 3000 million yuan, and Wang Yuanchao was planning to go to Hang Seng again to ask for more loan quota.

There is also the Bank of East Asia, which was the only Chinese bank that was not affected by the banking crisis in 65 because they did a good job in risk control.

Isn't this a good opportunity to chat with Li Fuzhao about the stock exchange? Don't bother two people with one thing, let him help blow the whistle as well.

Wang Yuanchao said:

"I have buildings and land that are backed by real money as collateral! How can the bank not make money?"

Li Fuzhao said:

"Don't borrow too much, or you won't be able to pay it back."

Wang Yuanchao waved his hand:
"If you can't pay it back, just take back the building and land. Housing prices are rising now, and every day of delay is a waste of money, which makes people feel sad."

Li Fuzhao smiled and said:
"Then I'll go back and say hello to my cousin. The Bank of East Asia has always been cautious."

Wang Yuanchao said:

"It doesn't matter if you pledge less, but if possible, please help me pledge more. Once I cash out, I will have money to develop production and benefit the citizens of Hong Kong, right?"

Li Fuzhao pondered for a moment and said:
"There is no business in the world that only goes up and never goes down. Mr. Wang still has to quit while he is ahead."

Wang Yuanchao said:

"How high has this risen? We haven't even reached the price in 65!"

Li Fuzhao's heart moved:
"So Mr. Wang's judgment is that the price will definitely exceed that of 65?"

Wang Yuanchao said:

"That's natural!
Look, in 65 years, Hong Kong's GDP has exceeded NT$100 billion and its population is 350 million!
In 68, Hong Kong's GDP exceeded NT$150 billion and its population was 380 million!
As money increases and people increase, the housing problem will surely become increasingly acute!"

Li Fuzhao had never made such statistics. He counted the number of companies and the scale of capital in Hong Kong over the years, as well as the loan data of the Bank of East Asia. After listening to Wang Yuanchao's analysis, he felt that there was great potential in real estate.

But he still firmly believes that no matter how the housing prices rise and fall, the only business that will never lose money is to earn commissions by running a platform.

So he said:
"I'll go back and talk to my cousin and try to support Wang Sheng!"
-
Wang Yuanchao went to see Hang Seng General Manager Li Guowei again.

In addition to borrowing 3000 million from Hang Seng, he also bought 40% of Qingzhou Cement's shares through Hang Seng, so the cooperation was far more in-depth than with several other Chinese banks.

Li Guowei was surprised when he heard the purpose of Wang Yuanchao's visit.

"Mr. Wang has already borrowed such a huge amount of money, and he wants to borrow more. Is he planning to buy Xiangjiang?"

Wang Yuanchao smiled and said:
"If Lisheng can lend me enough money! My mortgages are all fully collateralized, and the risk to the bank is very low."

Li Guowei shook his head and said:

"We also need to pay attention to the loan-to-deposit ratio in bank management. Hang Seng Bank died once before and was able to survive only after being sold to HSBC.

Wang Sheng has such an appetite. It seems that Wang Sheng's assets are indeed of high quality. How about I give you another 1000 million yuan limit?"

1000 million, isn't this just giving money to beggars? The land price in Tsim Sha Tsui is now 1 yuan per square foot!

1000 million only buys a 1 square foot plot of land. How big is the plot? It is about 30 meters by 30 meters. Of course, this is the most expensive plot of land in Kowloon.

Central and Causeway Bay in Hong Kong Island are even more expensive.

On the contrary, the buildings on the land do not seem so expensive.

Wang Yuanchao said:

"What if I use the shares of Qingzhou Cement as collateral? Construction is in full swing everywhere now, and cement is in short supply. This asset should be more valuable, right? It's also a listed company of John's."

Li Guowei smiled and said:
“It’s not about collateral.

Mr. Wang, we just want to control the risks.

Your funds are used to buy buildings and land. If there is another crash like in 65 or the scenery like in 67, even if we have so many collaterals, we will not be able to cope with the withdrawal of depositors’ cash.”

Wang Yuanchao certainly knew this truth. He just wanted to make as much money as possible. He said with some annoyance:

"You can't just sit there and watch without making money, right? How about this, can I entrust your bank to issue a wealth management product to customers for a period of 3 years, with an annual dividend of 8 points and a lump sum repayment upon maturity? How about that?"

Li Guowei felt that this young man was indeed unrestrained in his thinking, and he had to be patient and say:
"Mr. Wang, if there is such a good thing, the citizens will just wonder why our bank doesn't buy it ourselves?

Our bank does not buy, but instead calls on others to buy. Everyone will only suspect that our bank has run out of money and this is a disguised high-interest financing.

After all, we can’t explain to our customers what our loan-to-deposit ratio should be, right?”

Since he was a big customer of Hang Seng, he gave some considerate advice:
“In fact, this is what the stock market is about.

We can raise funds, right?

I think Li Fuzhao has talked to you about this, right?
If we Chinese had our own stock exchange, these financial difficulties would actually be easily dealt with.

In fact, now you are already the largest shareholder of Qingzhou Yingni. If you combine all your shares, maybe you can make good use of Qingzhou Yingni's stock?"

Wang Yuanchao's 40% of Qingzhou Yingni shares are operated using different accounts. Once the shares are combined, he will immediately become the largest shareholder.

There is a gap from the absolute controlling stake of 51%, but there is no problem with relative controlling stake. Because major resolutions of the shareholders' meeting require two-thirds of the shareholders to vote. If Wang Yuanchao opposes, the other shareholders' votes will never reach two-thirds!

Among the remaining shareholders, most are Johns, and there are also many Chinese. If Wang Yuanchao breaks in as a major shareholder and demands a shareholders' meeting, the issuance of additional shares may not be approved, but taking the chairman's seat and refusing dividends will definitely be no problem.

Many small shareholders regard the dividends from the shares as inheritance! That is why they do not sell it to the public. After all, there is only one large cement plant in Hong Kong.

But the key point is that Qingzhou Yingni will be listed in Hong Kong, and the general public is not qualified to speculate in its stocks. Otherwise, what is the point of Li Fuzhao?
When he first set his eyes on Ying Ni in Tsing Chau, he was actually also eyeing other people's land reserves, the land of old factories in Kowloon, and the land for warehouses in Hong Kong Island.

He shook his head and thought that it was not feasible to use Qingzhou Yingni to raise funds.

However, he could use Qingzhou Yingni for expansion to hoard land. He had been eyeing other people's land resources in the first place, so he could hoard more land. He would have a share in it anyway.

So he said:
"Thank you Mr. Li for your reminder, this is indeed the way to go!"

Li Guowei smiled and said:
"You're welcome. If you have other business needs in the future, Hengsheng will always be open to you."
-
Wang Yuanchao finally found Shen Bi.

This person's support is the most impressive.

Moreover, Shen Bi did what he said. The first batch of 5000 million yuan was in place very quickly. After that, he was only worried about whether Wang Yuanchao could manage the business well.

As long as we dispel the other party's doubts and get the remaining 5000 million, or even more...

Shen Bi was surprised to learn that he also had shares of Qingzhou Yingni. The annual dividends alone were a considerable amount, which was a stable cash flow.

"Mr. Wang, how many of your assets do you still have that you don't know the true face of?"

Wang Yuanchao knew that the other party said he was a hidden talent! Although he was working hard to learn Chinese. He smiled and said:
“I really can’t bear to miss such a great opportunity to make money.”

Hang Seng is worried about the loan-to-deposit ratio, but HSBC has no such worry.

They can print their own money!

As long as the collateral is valuable, it is money! There is no such thing as not having enough money.

Shen Bi, who was originally worried that Wang Yuanchao would take so many loans at once and wanted to observe for a few more months, immediately smiled and said:
"Then there is no problem with HSBC. We can continue with the previous 1 million limit!"

Suddenly, another 5000 million yuan loan came, and Wang Yuanchao exclaimed that it was worth it. His stocks were not worth so much money at all, and the main purpose was to let Shen Bi see his strength. This was 40% of the shares of a listed company!

What Shen Bi was interested in was not the value of the stocks, but the ability of Wang Yuanchao. Wang Yuanchao's loans were all collateralized, so he was not worried at all.

The only people he can personally appear in are the promising talents he values.

As long as the seedlings are good, he will definitely support them vigorously!

It's too monotonous to just take out a loan to buy a house or land.

"So Mr. Wang, have you ever thought about becoming the chairman of the board of directors of Qingzhou Yingni?

A major shareholder like you is fully qualified to do so.

And I will help you too!"

To be honest, Qingzhou Yingni is not at all proactive nowadays and is just living off its monopoly on Hong Kong's cement production.

If they are not proactive, they don't need to borrow money from HSBC. If they don't borrow money from HSBC, how will HSBC make money?

And if a restless, oh no, aggressive boss like Wang Yuanchao joins the game, the game will definitely expand rapidly.

Although Shen Bi had not been with Wang Yuanchao for a long time, he had always paid attention to his situation and even personally attended the ribbon-cutting ceremony for the opening of his film company. This man just liked to spend money everywhere, and it seemed that he had made a lot of money!
Shen Bi's words were like the devil's whisper, piercing directly into Wang Yuanchao's heart.

Wang Yuanchao was planning to operate a cement factory to expand and hoard land.

With this person's help, we will definitely be more powerful!
Although there are financing restrictions for controlling a listed company, that is the current predicament and will definitely be beneficial in the future.

As for Shen Bi’s idea, he probably knew that he really wanted performance, otherwise he would not have sold Jardine Matheson to Li Chaoren at a discount, and the down payment was lent to Li Chaoren by HSBC, which was equivalent to giving it away for free!!!
Of course, we must give people something in return.

Wang Yuanchao has always been a person who cherishes friendship!
Moreover, now, Shen Bi is only the director of the loan department and the deputy general manager. He is far from being the HSBC boss whose words are law!
"Director Shen, I won't say much to thank you. I will thank my friends for their help with practical actions.

I never let down my friends’ friendship.”

Looking at Wang Yuanchao's burning gaze, the words "thank you", "friends", and "friendship" struck Shen Bi's eardrums heavily, and he understood them.

I understand both meanings!
This Chinese guy wants to make friends with him!

Whether you can be Shen Bi’s friend is not something that can be said, but depends on your actions.

Very good, the other party said that there will be practical action.

Then he will have to wait and see.

So Shen Bi laughed:
“I like to work with smart people, and I like to make friends with smart people even more.”

As for whether you are a smart person, a partner or a friend, it depends on how smart you are.

Wang Yuanchao also laughed:
"Time will prove everything."

(End of this chapter)