We are all reborn, who wants to be the richest man?
Chapter 299 Bait
Suffering a loss, not worth it?
Luo Nianzhong was ready to let these two major consortiums take a 'big advantage'.
"Far East Group is preparing to issue 30 billion US dollars of ten-year bonds. I don't know if Fuji Bank and Sumitomo Bank are interested."
Thirty billion US dollars in bonds, this is the heavy bait Luo Nianzhong gave them.
It was so big that they had to bite the hook, and they did so without hesitation and regardless of the consequences.
The economic core of island countries has always been very simple, driven by these consortiums, and the key to these consortiums is banks.
Speaking of the citizens of the island country, you may think that they are very open-minded, but the reality is that they are very conservative.
When everyone earns money, they deposit it in the bank, and the bank lends the money to companies. This also facilitates the control of the island country's government.
The government of the island country controls the economic circulation speed of the island country by using interest rates, which means telling the major banks when to lend more money, when to lend less money, and in which direction to lend more money. This is the window guidance mechanism.
This control mechanism has always been very stable, but the father of the beautiful country refuses to do it.
Beautiful country, when I see that your island country's economy is developing so rapidly, but the financial market exchange rate is so tightly controlled, how is this possible?
A low exchange rate is controlled by the government. You have to learn from my beautiful country and you have to open up the financial market. Otherwise, how can I make money in your financial market, right?
Due to pressure from beautiful countries, the island countries gradually began to open their financial markets in the late 70s and early 80s, that is, in the past few years.
This has also led to its bond market becoming more and more open. In other words, companies no longer need to go to banks to borrow money, because it is cheaper to issue bonds in the bond market than bank loans. It saves trouble, so they all go to issue bonds.
The business of banks in island countries is very simple, that is, deposits and loans. However, the central bank has window guidance for these banks and has KPI indicators.
For example, in order to regulate the economy, the central bank brings in all banks.
"Well, this month there are hundreds of billions of yen quota, and you banks must lend me one cent.
Next month I will give you hundreds of billions depending on the situation and continue to lend."
Big companies and good companies are not short of money. If you want to invest, you don’t know what to invest in, because these consortiums have been involved in all walks of life.
The bank has no choice but to catch someone on the street and ask, sir, do you need a loan? Do you need to know more about financing?
In this way, banks can only find companies and individuals with poor credit to lend to them, as long as you have a mortgage. This is also an important reason why the bubble in the island country has blown up so fast and so big.
This is also the reason why these US$30 billion loans are so attractive to the two major consortiums.
Compared with companies with poor credit, Far East Group is an extremely good customer. It is the kind of customer that would laugh out loud even dreaming about lending money.
The most important thing is that once these 30 billion US dollars are released, KPIs for several years will be available, let alone one month's KPIs. The next operations will be too flexible.
If you are more ruthless, you can use part of the US$30 billion KPI to exchange interests with other consortiums.
"Brother, I heard that you are worried because you didn't complete your KPI?
It doesn't matter, I'll help you, you're an absolutely high-quality customer, as long as you sell me some equity in that industry, or license that technology to some company in my consortium.
Leave the rest to me, absolute one-stop service to ensure your satisfaction.”
Don't think this is a joke. During this period in history, it was the banks' money losses that forced them to lend wantonly and massively, which led to the bubble crisis.
As a result, it was difficult to turn around, and even they themselves joined in the drumming and passing flowers game.
"Mr. Luo, are you sure? As far as I know, Far East Group doesn't seem to be short of money, right?
Not only is there no shortage of money, there should be a large amount of cash flow available."
Shozo Hota is right, Far East Group does have sufficient cash flow, but all that money is useful.
The key point is that if I borrow 100 yuan, I only need to pay back 50 yuan in ten years. This 100 yuan can be leveraged to make a lot of money during the borrowing period. Why don't I borrow it?
If I weren't afraid of scaring you and alerting the government, I would not refuse anyone who comes, and I would borrow as much as you want.
Now we borrow 30 billion U.S. dollars and convert them all into Japanese yen to enter the island country’s stock market and property market.
Ten years later, when the yen appreciates by more than 50%, only half of the current yen can be exchanged for billion U.S. dollars and returned to you.
As for the interest generated, compared with the price difference of US$15 billion and the profit earned by US$30 billion in these ten years, it is not enough to describe it as a drop in the bucket.
How great would it be to wait until the 97 financial crisis and use your money to acquire your company?
So this is a big move made by Luo Nianzhong. When the outcome is decided, the Luo family will become the first external consortium in the island country.
It’s a delicious treat with poison inside.
"There is a lot of cash flow in the Far East, but it has already been put to use. The establishment of satellite cities in the New Territories requires us to use a lot of funds."
This is not a secret. As long as you know a little bit about it, you will know this situation. Luo Nianzhong's reason is quite reasonable.
"It seems that Mr. Luo's Far East Group has big plans to make."
We are all smart people, and they can accept the New Territories' explanation, but it is not like this.
Regardless of any project, no matter how large the investment is, it will be supported by loans. New Territories Construction spent several billion to support it. This is still a large-scale construction situation.
Aoki Daisuke saw that Luo Nianzhong had something big to do next, but he didn't know what it was.
He didn't know that he would soon know about Luo Nianzhong's big move, and the entire Fuji Consortium would benefit from it.
Luo Nianzhong did not answer Daisuke Aoki's words, smiled, picked up the cup and tasted the tea.
Seeing this, Aoki Daisuke and others didn't ask any more questions. The five of them looked at each other and showed no intention of avoiding Luo Nianzhong.
"Mitsui has contributed a lot to the Ministry of Finance on this project. Although it has not been decided yet, that is its external attitude.
Internally, many people are inclined to give the Roppongi urban renewal project to Mitsui."
Hatoyama Weiichiro, who had been sitting here silently, was the first to speak this time.
"It seems that they agree with the Mori family? Do you want Mori Building Co., Ltd. to become Mitsui's leader in the real estate industry?"
"It should be that Mori Taiyoshiro is said to have reached some kind of agreement with the Mitsui family.
The Mori family joins the Mitsui Consortium, and Mori Taiyoshiro's eldest son will win the Mitsui family's daughter.
By then, Mitsui Fudosan and Mori Building Co., Ltd. will become the largest real estate developers and landlords in the island country.
However, these are all rumors, and neither company has expressed its position on this. From this point of view, the Mitsui Foundation's efforts to help the Mori family get this project this time should be the basis for this cooperation between the two parties."
Marriage and integration are normal things within the consortium.
Although the Mori family is not a top wealthy family, it is not a small family either. Before getting involved in real estate, the Mori family was running a grain business. Otherwise, where would Mori Taiyoshiro get the capital to plunge into the real estate industry without the help of foreign capital? To create such a huge family fortune.
Later generations felt that this real estate tycoon, known as the man who owned Asia, created an empire by himself.
Now it seems that there is something going on here.
No wonder Mori Building has been able to obtain so many major commercial projects in island countries, and it must be inseparable from the Mitsui family.
"The Mitsui Foundation? It just so happens that I'm here to teach Sony a lesson."
Luo Nianzhong's sudden interruption made everyone else frown, not because Luo Nianzhong interrupted them, but because they were worried that Luo Nianzhong would break the current balance of the island country.
Cooperation and confrontation is how big companies in island countries get along now.
For example, in the semiconductor industry, they cooperate under the arrangement of the Ministry of International Trade and Industry to conquer various semiconductor technologies, but each has its own small ideas.
With the strong support of the Ministry of International Trade and Industry, it is not a big problem to break through the technological blockade based on current technological development. Therefore, the most important consideration for this alliance from the first day is their respective development plans after the project is successful.
However, no matter how several consortiums fight against each other, they are limited to the commercial level and the peaceful level, in order to protect the basic base of the island country from new entrants.
Now I don’t know what the lesson Luo Nianzhong said will turn into in the end. If the situation escalates and turns into a clique, then the uncertainty about the future is something that none of the five people want to see.
But this is someone else's business, and they really can't ask more questions now.
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