We are all reborn, who wants to be the richest man?

Did Suichuan raise funds for transportation development? Yes, but it was not borrowed from Far Eastern Bank, but it was indeed raised with the help of Far Eastern Bank.

Of course, there will definitely be a fee for this.

There is a lot of money in Hong Kong Island, and many people want a stable income and want to leave some security for their children and grandchildren.

So Luo Nianzhong asked Far Eastern Bank to launch an alternative fund, which is a long-term return investment.

The form is more like a trust, but it is operated in the form of a fund, is not closed, and has additional income every year.

The Far Eastern Bank used itself as a guarantee to raise social funds and invest them in infrastructure construction in the north.

This money is rebated every year at a fixed exchange rate over a long period of time, but the key is to make it last over a long period of time.

For example, for Suichuan’s transportation loan, there is no limit on the loan period, and the total repayment amount is the factor that matters when it expires.

A total of HK$18.6 billion will be used to build a highway connecting provincial roads. Suichuan will use the income from mining and highway fees as collateral, and the total repayment amount will be HK$40.2 billion.

Investors in Hong Kong Island are very satisfied because the returns are relatively generous and most importantly, stable.

The money is expected to be repaid in 15 to 20 years. It is a rare stable project and will have no problem outperforming inflation.

Suichuan is also very satisfied. Is the interest rate high? Not at all.

Because interest rates in the mainland are higher now, if this money is borrowed from a local bank over a 20-year period, the total interest will definitely exceed 40.2 billion.

The key is the time cost. Once the transportation is opened up and the leading mining funds are settled, it will drive a large amount of industrial economy and attract investment.

They have already set their sights on Kirin Battery. The raw materials are available here, and it will definitely be more cost-effective to build a factory on site to produce batteries.

"This infrastructure loan has received a lot of response, and many people are asking whether it will be available in the future."

Infrastructure Fund, but Hong Kong people prefer to call it Infrastructure Loan.

"Did a lot of people react? What do you think?"

What does Du Huilian think? He has already taken action.

“I have formed an examination team and flew north to investigate two days ago.

Because of the project in Suichuan, the first stop was arranged to be Jiangxi.

According to the feedback, this infrastructure loan is very promising.

Not to mention other places, according to the information obtained from the Leading Group, Jiangxi alone has a lot of mineral resources, but many places have inconvenient transportation or small-scale mineral resources and have not been developed.

From the perspective of social and economic development, the price of energy will definitely rise in the long run. Because we stipulate the repayment amount rather than the contract period, there is no such thing as a loss.

As long as the transportation is opened, these minerals will be developed by someone, and it will be a good project."

As he spoke, Du Huilian took out a document and placed it in front of Luo Nianzhong.

"These are some good projects. As long as the price of minerals does not jump, there will be no problem in using minerals as collateral. However, we still need to conduct on-site surveys in the local area for specific details."

Luo Nianzhong didn't even look at it. He knew that there were many such projects. If worst came to worst, he could still build a highway to make a profit.

This is a good way to keep your funds under your control. Although it is not your own money, the direction of the money is controlled by Far East.

"It's up to you to decide. I have no opinion."

This time, Luo Nianzhong came to the Exchange Square not for this matter, but for Hong Kong Island’s credit system.

Credit is a very important thing. Whether it is trade between merchants, or trade between countries, debt, or currency support, to put it bluntly, it is all a credit issue.

Therefore, many markets have to close to European and American capital, and the bottom line is that the countries can no longer repay their debts.

The country would rather hand over its core industries to foreign capital than default on its debts. You can imagine the importance of credit.

A country may be doing well because its industries are controlled, but if its credit defaults, all the people’s money will become a piece of waste paper and the entire country’s economy will collapse.

Of course, Hong Kong’s credit crisis is not caused by the city of Hong Kong, but comes from personal credit.

Credit cards are an unavoidable topic in the capitalist world.

The average wage per capita in Hong Kong Island is quite high, so Hong Kong residents lead a stress-free life.

But people are greedy by nature, and Hong Kong people are more likely to gamble.

The Hong Kong stock market has been booming in recent years, and countless people have used their credit cards to invest in the stock market.

But the stock market is a bull market. No matter how big the bull market is, there will always be companies going bankrupt every day, and there will always be unlucky people.

Then it’s very simple, the deadbeat debtor is created.

"We need to establish a credit system for Hong Kong Island. We cannot rely on the Hong Kong government, we can only rely on ourselves."

Why can't we count on the Hong Kong government? It should be the British who are the most likely to cash out and become deadbeats.

These people were perfectly packaged and then borrowed money from various Chinese banks.

Britain doesn't care whether they live or die, as long as the money returns to Britain.

This is also a major reason why Chinese banks have high debt ratios and are prone to bankruptcy.

Without a sound financial system, their reach would not be able to extend to Europe and the United States.

If he is packaged and said to be a British aristocrat, people will believe him. Chinese banks are too easily deceived.

What are the various funds in the north? The origin is the Ponzi scheme.

In the 1980s and 1990s, Ponzi schemes were most prevalent in Southeast Asia.

There is another reason. Luo Nianzhong wants to reduce the investment enthusiasm of Hong Kong citizens by establishing a credit system.

Investing is good, but overheating is not what Luo Nianzhong wants to see.

An economic crisis would cause a large number of families to be broken up and people to die in Hong Kong, and he would not allow this.

How much money can the asset companies get for a 100 million yuan bad loan? or yuan.

Some people ask, why don’t banks just give debtors a reduction of 300,000 or 500,000 yuan? Isn’t that more cost-effective than selling at a low price?

But this involves the issue of compliance of the process. If the bank directly gives you a reduction, it is a loss of assets and no one is willing to bear this crime.

Neither state-owned enterprises nor private banks can do this. This is bad debt and it concerns whether a manager can keep his job.

It’s different if it can be sold. It can be sold in bulk, and the overall account book will be profitable, which is an opportunity for managers.

It can also be replaced by a more advanced term, which is reform.

Another point is that if these debts were easy to obtain, the price wouldn’t be so low.

Basically, he has become an old lazy man and it is difficult for him to make a comeback.

This is a social burden, and Luo Nianzhong does not want too many of them in Hong Kong Island.

"So you mean we should follow the example of the United States and magnify the meaning of credit infinitely?"

"Yes, that's exactly my idea. We want to develop a credit system that suits Hong Kong Island based on the credit system of the United States."

What is the credit system of the United States? In a word, everything is based on credit.

In the United States, if you want to live a normal life, you must maintain a good credit record.

This is a complete credit system with a maximum score of 850 and a minimum score of 300. As long as a person's credit score is lower than 300, he or she will not be able to get education or do business, even rent a house or find a job.

There are many homeless people in the United States. The reason they live on the streets is not because they have no money, but because their credit records are bankrupt.

Once your credit record is ruined, it will be extremely difficult to make a comeback and live a normal life.

And many ignorant people are still bragging, saying that the rag pickers in the United States are very rich.

There is no denying that they are rich, but they would rather live a normal life, a life with a family and a job.

Instead of living under a bridge every day, you have to spend any money you have, otherwise you might be robbed.

In addition to renting a house and working, credit points are reflected in all aspects.

For example, when you take out a loan to buy a house or a car, your credit score determines your interest rate.

The higher the score, the lower the interest rate on the loan.

In fact, the richer you are, the higher your credit is and the lower the loan interest rate is.

Because those with high credit scores are wealthy and not short of money, banks will be more willing to lend you money.

"This is a large system and it will take time to establish a credit model for the whole of Hong Kong."

“It doesn’t matter, if one month is not enough, then three months, if three months is not enough, then half a year.

We can launch first and then perfect it.”

Du Huilian nodded to show that he understood. Establishing credit points is not difficult, but the difficult part is data collection.

This requires collecting a lot of information including credit card swipe records, fund flow records, company operation records, salary records, litigation records, etc. of everyone in Hong Kong.

But these are not a problem for Far East Bank. Far East is the settlement bank of Hong Kong Island. As long as you are a Hong Kong resident living in Hong Kong Island, you can use bank cards or credit cards.

No matter which bank it is, Far East can retrieve the records.

"What you said is in line with the reality of Hong Kong Island?"

This is what Du Huilian wanted to ask most. He wanted to know what Luo Nianzhong meant.

“It’s very simple. Credit scores can be graded, and each level of credit score should be reflected not only in the credit limit, but also in various benefits.

For example, the problem of queuing in public hospitals and the amount of welfare coupons issued, we can even ask Far Eastern companies to cooperate and give certain discounts on water, electricity, shopping, etc.

At least Hong Kong citizens should be willing to adapt first and then get used to it."

Du Huilian smiled and said, "You're overthinking this. There are a large number of immigrants in Hong Kong Island now. These people are immigrants from developed countries and they will not be averse to this credit process."

This is the best way. A person with high debt cannot have a high credit score. With actual benefits as bait, I believe the debt ratio will drop quickly.