Chapter 667 Not That Great

Chapter 667 Not That Great

The current situation is that a group of companies have started to become valuable, but the private company bosses who got rich first do not have the strength to take over too many high-value non-performing assets and then reorganize them.

Those bosses who have finally made a fortune prefer to make quick money, or rely on the government to do low-risk business. This results in a project with a profit margin of only about ten percentage points attracting dozens of companies to bid, and some potential stocks with real room for growth have become hot potatoes in their eyes.

In the past, if one wanted to revitalize large companies that were in financial difficulties, the only option was to try to find funds in the international market, apart from official leadership.

This will prompt the market to further open up, and may further relax restrictions on fund companies, insurance companies, as well as social security, pension and medical insurance institutions, and efficiently use funds to rescue many companies on the market.

Fan Wumian clearly saw the huge business opportunities therein.

There is no need to wait until the subprime mortgage crisis and the financial crisis are completely settled. One can accurately buy a number of "money printing machines" in advance during the economic downturn, and then expand and fatten themselves through the management fees and performance sharing of fund companies, as well as the difference in revenue profits of insurance companies.

If you wait until the market stabilizes before taking action, you will lose the opportunity to make a small profit with a big investment and fish in troubled waters.

During this process, as long as he can earn enough cash flow, Fan Wumian feels that his future days will become extremely comfortable, and the time required to dethrone the current richest man in the world, Bill Gates, will be greatly shortened.

Even though he directly expressed his disinterest in the United China Insurance Group, which was suffering huge losses, during a meeting at a state-owned enterprise, he made a phone call on his way home and asked people to look for other cost-effective insurance companies that were facing operational difficulties and worth investing in.

Even a senior executive named Qi in the family office felt a little helpless after hearing this, and reminded on the other end of the phone:

"Boss, haven't you been taking too big a step recently? It seems that we don't need to acquire a second insurance company. We should just focus on making New China Life a success."

"I read a lot of information a few days ago. Insurance companies that are willing to transfer equity to others at low prices often have a large debt and poor profitability."

"If you want to get more funds, you might as well cancel the restrictions on the suspension of subscription for Boshi Fund and Shanzeiwang Fund in advance, and you can still raise hundreds of billions."

Sitting in the back seat of the Bentley Arnage R, Fan Wumian explained with a smile:
"I have my own plans."

"The fund company mainly helps its clients make money, and only a small part of the profit belongs to me."

"Insurance companies are different. They also have a lot of cash in their accounts. In addition to paying out compensation and paying the agreed benefits of insurance, the difference in other profits belongs to the insurance company. It is equivalent to paying an interest rate lower than the loan interest rate, borrowing money from insurance customers to make money for myself."

"I never paid attention to this aspect before. After I learned about the profit-making methods of insurance companies, I realized that there might be no business in the world more suitable for me. Otherwise, why would I accept all the orders and acquire so many shares of Xinhua Insurance?"

Manager Qi on the other end of the phone was already in his 40s. He graduated from Harvard Business School, which is as famous as Wharton School. After graduation, he worked for Morgan Stanley, State Street, Goldman Sachs and other companies. If he hadn't made enough money and wanted to return to Hong Kong to be with his parents and family, the annual salary of one million Hong Kong dollars offered by Fan Wumian might not necessarily be enough to hire him to work in his family office.

After hearing this, Manager Qi immediately understood Fan Wumian's idea and laughed:

"When the economy is on the rise, you can make money by investing in anything, even junk stocks have a chance to soar. But since you, the boss, have already made the decision to bet on the possible subprime mortgage crisis and financial crisis, you should now completely shrink other businesses."

"Companies such as Zurich Insurance and Shimakoku Meiji Life Insurance chose to sell New China Life Insurance shares to us easily, in large part because they wanted to recover funds to wait out the winter and cut off many non-core businesses that might face crises."

"The idea of ​​using insurance company funds to invest and make profits is good, but the premise is that you can really make money. Even if the mainland economy grows very fast, it is still difficult to avoid the impact of the global financial tsunami. Recently, hundreds of billions of dollars of international hot money have poured into the mainland market. I am afraid that the purpose is to destroy the mainland economy and then reap the profits at a low price."

Fan Wumian had already figured out these principles, and he continued:

"I know very well that if the market has already hit the bottom, or if these companies have no problems, how can I have the opportunity to invest heavily in those state-owned or public-private joint ventures?" "The process of acquiring Xinhua Insurance Group a few days ago was so smooth that it was like a dream. I just gave the China Insurance Regulatory Commission an accurate reply in the morning, and received the approval letter allowing the acquisition in the afternoon."

"Moreover, the mainland stock market has started to overheat recently, which is a good time to adjust positions and re-allocate assets. I will cash out some of the money at high prices and wait and see. Once the storm has passed, as long as I have complete control over the company's decision-making power, I can enter the market at the first opportunity to buy at the bottom. If I act now, I have the opportunity to become the actual controller in one fell swoop. If I act at other times, I may just be a shareholder, which is not very meaningful."

Having worked between various fund companies and investment banks for so many years, Manager Qi also felt that the process of acquiring New China Life Insurance was so smooth that it was a bit unbelievable.

Although RMB 5.99 per share was already considered cheap, many major shareholders took the initiative to reduce the price and offer discounts, using various excuses to stuff New China Life Group shares in their accounts and calling to urge them to draw up contracts as soon as possible.

Manager Qi then asked:

"Boss, are you really that optimistic about the development trend of the mainland economy? If you continue to acquire, you can first get the remaining shares of New China Life Insurance Group. The problem is that you have borrowed so much from the bank. Where will you raise the money next?"

Fan Wumian said without hesitation:

"Rather than predicting the economic outlook, it's more like betting on the country's destiny. If you come to the mainland and take a closer look, you will find out how dynamic the market is. I bet it can push the United States off the throne of world hegemony in the next 20 to 30 years."

"Don't worry about the money. If I come across other targets worth investing in, I can sell my shares in Sanyao Heavy Industry first, and then buy them back through the insurance company when there's a chance."

"Take advantage of the upcoming restructuring of Xinhua Insurance Group. If we acquire other insurance companies, it will be a good opportunity to merge and restructure them. I just went to a meeting to discuss the United China Insurance Group, but the higher-ups want to help it complete financing rather than sell it off directly."

"It was also mentioned that the regulatory authorities could allow small and medium-sized insurance companies to enter the market and raise funds from the market. If they are slow to act, there will be no chance to acquire them. Insurance companies may also be allowed to invest overseas and bring funds to the Hong Kong stock market."

Manager Qi suddenly realized what was going on:
"I don't know about these things yet. Other insurance companies have raised funds and are listed. My boss's Xinhua Insurance should be able to do the same. If they can raise some money, then all problems will be solved."

Fan Wumian did not talk about this topic anymore, and said:
"Mr. Qi, if you are free recently, can you come to Yanjing to help me? It seems that there are rats everywhere recently. When they could make money before, they didn't want to invest overseas, but now they can't wait to take the money out and buy at high prices. I hope to expand my influence and find some experts like advisors to speak for me, and try to suppress this trend."

Manager Qi paused for a long time before replying, "If you are poor, you should take care of yourself. If you are rich, you should help the world."

Fan Wumian was also stunned and said:
"It's not that great, I just don't like a lot of things. Some guys are really too much, I just can't stand it."

The size of the first batch of QDII funds was cut, and Fan Wumian secretly put a lot of effort into it, and thus offended many people invisibly.

Rather than personally saying "you shouldn't invest" and offending some people at home and abroad, it seems safer to find some megaphones to speak for him.

Recently, the trend of overseas investment has intensified. A Shenzhen-based security group plans to invest 200 billion yuan in an unknown Belgian company, and an aluminum group also plans to invest billions of pounds in the British mining company Rio Tinto.

It was as if they were just waiting to be slaughtered, stretching their necks out to get slaughtered. It was hard for Fan Wumian not to suspect that there was something fishy going on. Rather than being a wise man after the event, he would rather nip some obvious problems in the bud.

It is certainly good to learn a lesson from a loss, but if the loss is huge, involving hundreds of billions of RMB, to the point of causing serious damage, then it would be very bad.

As soon as he finished speaking, Fan Wumian suddenly remembered a businessman named Hu who was involved in an iron ore commercial espionage case. Some self-media said that the damage he caused was as much as 7000 billion yuan.

After hanging up the phone, I checked and found that there really was such a person. He was the representative of an Australian iron ore company, and its headquarters was in Shanghai. (End of this chapter)