Chapter 213: Business is business, everything is for profit

Chapter 213: Business is business, everything is for profit

Chapter 213: Business is business, everything is for profit

Yang Wendong was not surprised after hearing this and said, "I understand Mr. Liao's request, but in the past few years, I have borrowed nearly 2000 million Hong Kong dollars from your bank. I cannot repay such a large amount of money immediately."

In previous industrial expansions or real estate investments, Liu Chongxing always gave high loan amounts;
Although the interest rate is a bit higher than that of other banks, for businesses that use leveraged finance to make money, the amount is more important than the interest.

Therefore, Yang Wendong has always authorized as much cooperation as possible with Liao Chong Hing Bank, and Liao Chong Hing Bank is always willing to lend money when there is collateral.

At the beginning of this year alone, Changxing Real Estate lent more than HK$700 million to purchase a large amount of property land in Kwun Tong. Together with other collaborations, the total amount is close to 2000 million.

Liao Liewen said: "Mr. Yang, although I am not very clear about the internal data of Changxing Industrial, I know the general situation after so many years of cooperation.

Your factory's products are sold all over the world, and the profit margin is far higher than that of ordinary factories in Hong Kong. I also know that you have the ability to do this, so I hope Mr. Yang can help us with this because of our many cooperations in the past."

"If I can help, I'm definitely willing to help." Yang Wendong nodded and said, "But Mr. Liao also knows about my investment plan for the 2000-person industrial park in Kwun Tong. For this project, I borrowed HK$ million from HSBC just for the land and subsequent land leveling.

In the real estate sector, the market has been down recently. Not only has the Liao family's property suffered heavy losses, but my side is not much better. You also know my investment in the real estate market in the past year or so, and this does not include some properties that are in cooperation with other banks.

As for shipping, I have bought eight ships. According to my internal planning, I will need to purchase new ships in the future, which will also require a lot of funds. "

The first two things are true. Judging from the account books, Changxing Group is under great pressure. If Changxing Industrial did not have strong profitability, Yang Wendong would not have acted so aggressively even if he was a time traveler. Having money in the future is one thing, but if risks are not well controlled, big problems may arise now.

As for the shipping cargo ships, he and Shipping King Dong had a tacit understanding and did not announce the price of purchasing from the United States. Outsiders did not know it. According to the general price of second-hand ships, 7 ships would cost at least nearly million Hong Kong dollars.

"Mr. Yang, even you have no way to help?" Liao Chuangxing was not sure about the specific situation of Changxing Group, so he could only beg in a low voice.

Besides, even if others have the ability, they are not obligated to help you.

It sounds nice to say that they had cooperated many times before, but no one asked anyone for anything in return. It was just a normal business behavior. Yang Wendong obtained more funds, but Liao Chongxing Bank also received higher interest.

Yang Wendong paused and said, “Mr. Liao, there has never been a bank run like the one at Liao Chong Hing Bank today in Hong Kong;
But similar situations have already occurred overseas. You should know that at this time, no one dares to invest money in it. The risk is too great. "

Liao Liewen nodded and said, "I know, so I didn't expect Mr. Yang to use his own funds to help me. I just hope that we can end our previous cooperation and you can return the funds to me urgently."

"Mr. Liao, the reason why depositors are running on the bank now is because Liao Chongxing Bank can't take out the funds it has already lent out." Yang Wendong shook his head and said, "But it's the same here. I have invested the money you lent me in various projects. In a short period of time, I can't cash it out."

Liao Liewen said nothing more. This was indeed asking too much. Besides, both parties had a contract. As long as the borrowing party repaid the principal and interest normally according to the contract, there was no obligation to return the funds in advance.

Yang Wendong added: "Mr. Liao, you can actually sell my loan business directly to other banks. I can agree to this. It won't be a big loss for me. I can just change banks and repay the loan."

Liao Liewen smiled with a hint of helplessness and said: "My father has approached many banks, but they either don't want to help or the prices they offer are too low for us to accept."

"Under normal circumstances, it can actually be sold at a good price. Not to mention making money, but it shouldn't be a big loss." Yang Wendong took a sip of tea to moisten his throat, and then continued: "But you are in urgent need of funds, so this situation is bound to happen."

Among colleagues, the greatest kindness would be to just gloat over others' misfortunes, watch the fire from the other side of the river, and not add insult to injury.

As far as Yang Wendong knows, Liao Baoshan's style of doing things in his early years offended a large number of his colleagues.

There is actually a certain tacit understanding among banks in Hong Kong regarding the setting of interest rates. The interest rates of large banks are slightly lower, while the interest rates of small banks are slightly higher. In this way, everyone has their own fixed group of customers and can make money.

However, Liu Chong Hing Bank itself is quite large in scale and offers higher interest rates than small banks, which naturally offends its peers. In addition, when Liu Baoshan was interviewed, he often made sarcastic remarks about those banks that stick to business rules and control risks, so naturally his network became worse and worse.

Even some sincere friends tried to persuade him to control the risk and not invest so much of depositors' money in real estate, but he met with cold sarcasm in return.

All I can say is, you will suffer from self-inflicted suffering.

Liao Liewen nodded and said, "Yes, if it really comes to this, who will be willing to help?"

Yang Wendong smiled faintly and said, "Mr. Liao, if it was Hang Seng that had this problem today, would Liao Chong Hing Bank help?"

"No." Liao Liewen said after thinking for a while.

Yang Wendong added: "So everyone is just for their own benefit. If you want others to help you, you must give them benefits.
The premise for those banks to lend you money is that they can make huge profits from it. Otherwise, no one will help you, especially since they themselves may also bear some risks.

After all, they did not conduct a detailed review of the loan business of Liu Chongxing Bank, and you can't wait. In this case, if I were another bank, I would also be very cautious. "

Given the risk management attitude of Liao Chong Hing Bank, who knows how many pitfalls there were in its previous loan business?
As long as other banks have their heads straight, they will not buy these loan businesses at will, otherwise they may end up hurting themselves.

"Mr. Yang's analysis is correct." Liao Liewen actually knew the previous operating style of his own bank. Although he had been managing risks and had a certain degree of control, outsiders did not know about it.

Putting themselves in his shoes, their bank would not purchase the loan business of other banks without a detailed review. Then he asked, "Mr. Yang has a good eye. Do you have any good ideas for the current situation of my Liao Chongxing Bank?"

"It is impossible to sell bank lending business at a reasonable price." Yang Wendong replied: "The only way is to sell some products that are more acceptable in the market.

These products are easy to cash out because they are more acceptable, and they also meet your bank's urgent need for cash. At the same time, the prices are relatively stable, so even if you lose money, it won't be as bad as the loan business, where you lose everything."

Liao Liewen naturally understood what he meant and asked, "Mr. Yang, are you talking about the real estate of my Liao family?"

Yang Wendong nodded and said: "Yes, or if you have some stocks of high-quality listed companies, that's also OK. These are assets that are easy to cash out in the short term." From ancient times to the present, banks have always loved real estate because its volatility is limited. As long as there is no major economic crisis or ZZ, there will be no big problem.

Even if there is an economic crisis, in the long run, in a normal economy, housing and land prices will fluctuate and rise.

The security of the stock market is a little worse, but banks are happy to accept stocks of high-quality companies.

Liao Liewen sighed and said, "We have thought about this as well. My father has also tried to sell the property, but the price is different from what Mr. Yang expected, and it is also very low."

Yang Wendong said: "It is definitely low. The Hong Kong real estate market is currently in a low period. In addition, there will definitely be people who take the opportunity to lower the price. But it is much better than selling your loan business, right?
And as far as I know, your Liao family is only selling some non-core real estate businesses. To be honest, these real estate businesses are not bad, but under the current market conditions, it is impossible to get a good price. "

Liao Liewen nodded and said, "That's true. It's indeed much better than the bank. So it seems that my father was right to be optimistic about real estate. It will be more useful at a critical moment."

"Real estate is indeed like this, that's why I focus on investing in real estate." Yang Wendong said with a faint smile.

If there were problems with Changxing Group today, then if he wanted to sell his factory, he probably wouldn't be able to get any price at all. Even the most valuable patent would definitely be sold at a low price.

But real estate properties, like half of the "gold" characteristics, have a fixed market price. If they are discounted to a certain level, many people will buy them.

Even shipping, which is more profitable than real estate in this era, does not have this characteristic of real estate.

"Mr. Yang, do you also want to acquire the property of my Liao family?" Liao Liewen paused and asked again.

He is not a fool. Yang Wendong did not treat him like a plague like the others did. Instead, he sat down and chatted with him at ease. They also brainstormed together to find a solution to the problem of Liao Chong Hing Bank. There must be an ulterior motive for that.

However, this is normal. From a business perspective, if Changxing Group had major problems, as a lending bank, it would certainly have to protect its own interests to the greatest extent possible, and might even add insult to injury.

This is how the business world is, there are no friends, only interests.

Yang Wendong nodded and said, “Yes, I don’t have that much money to help you, but if I can acquire your property, I can mortgage it to other banks.

As for the price, I won't lower it too much, just a little lower than the market price. I'm not trying to take advantage of someone's misfortune. Mr. Liao is also from the banking industry and knows that this kind of emergency loan will definitely cost some extra money."

Normal short-term emergency acquisitions are definitely cheaper than normal prices, and this is also the norm.

But no one knew that he had already applied for a loan from HSBC and Standard Chartered Bank in advance. Of course, he had to have real estate as collateral to get the money.

As for why he didn't take the opportunity to lower the price, one reason was that if he was the same as others, the Liao family might not necessarily choose him first. Even if he could lower the price by 20% to 30% today, it would be nothing compared to the several or dozens of times increase in the price of these high-quality properties in the future.

Secondly, it is also for the sake of one's own reputation in the future. When partners encounter problems and urgently need funds, one can conduct transactions with normal business behavior and help business friends recover. This can also be considered a good story.

"Okay, I'll arrange for someone to deliver the Liao family's property information this afternoon." Liao Liewen then said, "If Mr. Yang is interested in any property, he can directly ask us for the price."

It is no exaggeration to describe the Liao family today as lying on a sticky board ready to be slaughtered.

It would be great if there was someone who was willing to trade with his family at a lower price than normal.

"Okay, then I'll wait." Yang Wendong nodded. In fact, he knew a lot about the Liao family's assets, but the specific situation still required more accurate information.

At noon, Yang Wendong invited Liao Liewen to have a meal, and then he left because he wanted to persuade other bank clients. Although the probability was very small, there was no other way at this time.

At two o'clock in the afternoon, people from Liao Chong Hing Bank brought the relevant information, and Yang Wendong called Zheng Zhijie to look at it together.

Zheng Zhijie said: "Mr. Yang, most of these data are the same as what I checked before.

The most valuable thing for the Liao family now is the piece of land in Central last year. They spent 500 million Hong Kong dollars to acquire it. This was because of the Liao family. They needed land in Central to build a new headquarters. The Hong Kong government allocated this piece of land to them for economic considerations. "

Yang Wendong also saw this most eye-catching information and said with a smile: "Of the plans for a 25-story building, 9 floors have already been built. It was originally planned to be completed by the end of this year and we could move in and start work next year. Now it seems like a dream."

The headquarters where they went to observe the bank run before was the present one, but the one in the current data is the future one. The location of this building was the former site of the Chinese National Products Company in Central.

After Liao Baoshan bought the land, he planned to build a 25-story building.

In this era, 25 floors is considered high.

Zheng Zhijie said, "Mr. Yang, this building has a great location. According to the original plan, the total area after completion will be 36 square feet, and there will be a large shopping mall underneath, which is very suitable for the future headquarters of our Changxing Group."

"Well, it's not bad." Yang Wendong nodded.

As the business gradually increased and his company became famous in Hong Kong, owning a top-notch building in the core location of Central became a symbol of status.

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(End of this chapter)