Reborn Capital Empire - v2 Chapter 677

Chapter 677 The Solution

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In fact, it is mainly the shares of Alibaba and Baidu that are valuable, with the Nasdaq crisis becoming a thing of the past. The stock prices of eBay, Yahoo, Amazon, and LinkedIn have risen to varying degrees, and Chinese Internet giants have also become optimistic about Wall Street investors. Take Ctrip.com as an example. Its stock price has grown by 43% since it was listed on Nasdaq at the end of 2003 only half a year ago. Sina, Sohu, and CDC, which were listed before, also rose to varying degrees.

Guo Shouyun nodded. Zhang Lei just stepped down as CEO of Hanhua Trust last month. He has been part-time before, so the value judgment of these assets is relatively accurate.

“A total of 23.6 billion Huaxia coins, can Hanhua Bank take out so much money now?”

Commercial banks have many businesses, including industrial loans, commercial loans, agricultural loans, technology loans and consumer loans, not to mention overnight lending, bill discounting, etc. Every business needs capital, so the bank has a lot of deposits, but not much money allocated to a business. 23.6 billion Chinese currency, which is US$3 billion at the current exchange rate. Compared with Han Hua Bank’s total assets of 21 billion US dollars, it is obviously impossible to take out all of it.

“It can only solve one-fifth at most.” Zhang Lei shook his head and said.

“What if it’s ABS?”

“Han Wah Fund can solve 400 million US dollars. If the boss can give a two-month grace period, Han Wah Securities and Orient Securities can sell all these ABS (asset-backed securities).”

Guo Shouyun thought for a moment and then nodded.

“Just do as you say!”

In fact, he can use these assets to go to Phoenix Bank. With Phoenix’s total assets of nearly 600 billion US dollars, he can easily get a full loan of 3 billion US dollars.

However, this part of the assets in the hands of Hanhua Trust is all in Huaxia, and he hopes to use this asset to raise money in Hanhua and Dongfang Group, which can also benefit them. Otherwise, Hanhua and Dongfang will always fall to the Phoenix, which is not the result he wants to see.

“Boss, the loan of 23.6 billion Chinese currency is fine if it is in Hong Kong, and the annual interest is about 1.5 billion. If it is in Huaxia, even if only a part of the funds are issued bonds, I am afraid that there will be an extra 200 to 300 million in interest. “

Hua Xia’s current deposit rate is 7.5%, and the yield from issuing bonds cannot be lower than this. Therefore, whether it is commercial loans or issuance of bonds in Huaxia, it is not a good choice.

By contrast, the U.S. federal funds rate is now less than 2 percent. The money in the bank flows to the market in a ‘rush’, and the price of real estate is the same every day. You can imagine how much less interest you pay on loans here than in Huaxia.

The Hong Kong dollar is pegged to the US dollar, so the deposit and loan interest of Hong Kong banks are also not high.

“Let Dongfang Group earn some money. Otherwise, Chen Yu would be working too hard with a Delong mess. Also, although 45% of Dongfang Group’s shares belong to the four major banks, we are the ones who control it. It’s impossible. The benefits are not given.” Guo Shouyun smiled, “We gave the benefits and made the Dongfang Group make money. As shareholders, the four major banks cannot express nothing at all.”

Zhang Lei also nodded in agreement.

“By the way, have you met the directors sent by the four major banks to the company?”

When Guo Shouyun sold the shares of Hanhua to the four major banks, they proposed the conditions for the formation of the board of directors. In this regard, Guo Shouyun did not object, anyway, he did not regard Hanhua Bank as his private treasury. Just like this mortgage, everything is going by the rules. And only by operating according to the rules, Hanhua has the possibility to grow. Otherwise, who wants to put money in your bank if you want to take it?

“See you! The quality is not bad!”

“That’s good. . . . What about our people?”

Since it is dispatching directors, of course it is impossible for only the four major banks to send directors to Hanhua, and Hanhua also sends its own employees to the four major banks. Moreover, both parties are non-executive directors who are only responsible for supervision, not operation.

“It’s been inaugurated. There’s nothing major that deserves our attention at the moment.”

Guo Shouyun nodded.

“With this money, it should allow Universal to have about 1,000 to 1,500 acres of land in first- and second-tier cities across the country.”

“Are you going to give all this money to Universal?”

“Well! … Now you have seen the dynamics of the domestic real estate industry in Huaxia. I am afraid that if we go too late, all good plots will be occupied by others. Also, land is also a real asset, and when Universal takes over the land, Hanhua Securities will use this batch of land to issue another ABS bond. At that time, it will be able to leverage nearly double its assets.”

“If you don’t think it’s enough, you can continue to use the second batch of land to leverage the third asset!” Zhang Lei said with a smile.

“No need!” Guo Shouyun waved his hand, “The second batch of land has been obtained, and the amount of land we hold in first- and second-tier cities across the country will be around 2,500 mu. Compared with the amount of land hoarded by other real estate companies, this number is not too small. If there is more, I am afraid the government will not be able to explain it. After all, we are hoarding land, not developing it immediately. In addition, unlike other real estate companies, the real estate in the first and second tier cities of Global Real Estate, the income from selling the house can balance the expenditure. I don’t plan to sell the rest of the property.”

Zhang Lei was not surprised by Guo Shouyun’s idea. He is also very clear about the corporate strategy of Global Real Estate.

“Do you plan to develop all of them in accordance with the standards of the four major mansions in the capital?”

“Um!”

“In this case, the number of houses held by Universal Real Estate will probably exceed 10 million!” Zhang Lei said with a hint of exclamation in his tone~www.mtlnovel.com~ Guo Shouyun smiled, “Almost so. Although some land needs to be Commercial. But based on the 30% gross profit of the real estate industry, plus the premium factor after one year, we can leave 12 to 13 million units. After deducting commercial real estate, a part must be subtracted. In the end, it really falls to us There may be about 8 million to 10 million sets in hand.”

He didn’t intend to be like the old Li family, purely to hoard the land and sell it for money. But thinking about the future when it is completed, it will become the world’s largest charter company. Therefore, he will only hoard land for one year, and Global Real Estate will be able to generate a net profit of around 1 billion in one year. With this money, it is definitely not enough to fully develop 47,500 mu of land, but laying foundations is almost enough. And as long as there is this step, the off-plan house can be sold, and then the house can be built step by step until the entire project is completed.

10 million sets of small-sized houses, even if according to the minimum standard, the rent of 1,500 yuan a month and the occupancy rate of 70%, the revenue of Global Real Estate in this area can reach an annual income of about 10 billion yuan. But after more than ten years, the current second-tier cities, the new first-tier cities in the future, how can the monthly rent of a small apartment in the city center be so cheap.

And it’s real estate that’s more valuable than rent.