Chapter 705 Preparations before the Oil Crisis

Chapter 705 Preparations before the Oil Crisis

Chapter 705 Preparations before the Oil Crisis

"Ocean ship?" Brad's eyes lit up;
Since the closure of the Suez Canal in 1967, the global shipping market prices have skyrocketed, making all kinds of ships a top cash cow, and all shipping and cargo companies have made a lot of money;
In recent years, due to the moderate transfer of the industrial chain and the increase in the number of ships, the profit of shipping has declined, but compared with normal times, the profit is still much higher;
For ordinary small banks, this kind of movable ship mortgage would be very troublesome, because if there is a problem, it would be very difficult to recover this non-real estate. But for large American banks, it is not a problem at all. Given the current status of the United States, if any court issues an order, most of the core ports in the world will cooperate in seizing the ship. This is completely different from banks in small overseas countries.

Yang Wendong said: "Yes, I also have a number of oil tankers, container ships and four large bulk carriers, all of which can be mortgaged."

Brad calmed himself down and asked, "How much money does Mr. Yang need to pledge?"

"5000 million US dollars, the more the better." Yang Wendong said slowly.

In fact, the value of his ships is still more than 100 million US dollars, but after all, they are not real estate. Even if American banks are willing to accept mortgages, the amount can't compare with some stable buildings and shopping malls. This is also the norm for global banks.

Brad thought for a moment and said, "This amount of money is very large. We also need to carefully check your company's ships and your company's operating performance."

"No problem, I will arrange for someone to send the information over." Yang Wendong nodded, and then said: "But my ships are still at sea, and they have their own targets. They can't gather in New York Harbor. I can only ask your people to go to the corresponding ports for inspection, but they are basically near Europe and North America, and a few are in Asia."

The economy in Asia is developing very fast, but the global economic core is still in Europe and the United States. Relatively speaking, it is much easier to get funds back when doing business with European and American companies. Therefore, Changxing Shipping, or other Hong Kong shipping companies, mainly focus on trade with Europe, the United States and Japan, and less on Southeast Asia.

Brad smiled and said, "That's no problem. In fact, if we send someone to check it out, we should find a third-party professional. People in our bank don't understand these professional things."

"Okay, I hope to have a result on this matter within a month. No matter how much the money is, I hope to loan it out as soon as possible." Yang Wendong said again.

Brad asked: "Mr. Yang, I need to ask you something. Do you need so much money for Best Buy? Isn't this too much? And it's not urgent, right?"

Even if there is a mortgage, the bank still needs to know where the loan funds are going. This is also a form of risk control. If the direction is low-risk, the bank will be relieved, and the borrower can even appropriately lower the price because of the low risk. Otherwise, the interest rate may be high or even the loan may not be granted.

Yang Wendong smiled and said, "No, I plan to invest this money in the stock market."

"With so much money, which company do you want to invest in?" Brad thought it was normal. The US stock market has been on an upward trend in recent years. No matter who you are, you want to participate a little, even they personally invest in stocks.

Yang Wendong said: "I plan to invest in some oil companies. The global economy is developing very well now, and the demand for oil will inevitably increase. In addition, there is still a certain degree of instability in the Middle East, and oil prices may increase, so I want to invest a little."

No one could predict the oil crisis, and this was true for many oil giants in Europe and the United States, because in their minds, they could manipulate the Middle East at will;
In the 50s and 60s, the Middle East had no control over the price of its exported oil. Instead, the purchase price was controlled by the Seven Sisters oil giants under European and American countries, which was less than $2 per barrel. Later, when the Middle East crisis broke out, the Middle Eastern countries fought hard for it many times and it took several years to raise the price to around $3.

In the eyes of European and American countries, purchasing oil from the Middle East is a charity to the Middle Eastern countries. No one will buy oil from the Middle East except them. Even if countries in Asia, South America and other countries need oil derivatives or various fuels, they will not buy them directly from the Middle East because they do not have an oil industry chain in their own countries and can only buy refined oil from Europe and the United States.
But they never thought that the binding is mutual. The Middle Eastern oil cannot be sold if it is not sold to Europe and the United States, but without the Middle Eastern oil, where can Europe and the United States buy it?

When prices were pushed down to the point where there was almost no profit, coupled with the political crisis, the Middle Eastern countries finally decided in October this year to impose an oil embargo on Europe and the United States. The first oil crisis broke out, and Europe and the United States also experienced the pain of oil shortage for the first time. The internal industrial system collapsed, and inflation spiraled, causing an economic crisis that affected the world.

For Yang Wendong, a time traveler, the only pity is that there are no oil futures, otherwise he could make a lot of money. Now he can only make a profit indirectly by purchasing some oil field company stocks. Before this, he also arranged some idle funds from Europe and the United States and part transferred from Hong Kong to buy stocks, but now he is preparing to make one last big move.

"An oil company? It's relatively stable. As long as there are no other questions, the loan should be approved. We can negotiate the specific amount later." Brad was relieved when he heard that it was an oil company's stock.

Oil is the most stable demand in the world, and there are only a few large oil companies in the world. You cannot say that you will make money by buying their stocks, but you will definitely not lose a lot.

Yang Wendong nodded and said, "Okay, my people will cooperate with you in New York City at any time. Please check my ship as soon as possible." After the oil crisis, the shipping industry will suffer the first blow. Theoretically, the value of the collateral may become insufficient, but as long as you still have the stocks of the oil field companies in your hands, the total value can be increased;
Therefore, this matter has almost no risk, but can make a lot of money. There is no need to wait for the oil crisis to end, just wait until the oil price is high and then sell it, and you may get huge profits. In this way, he will have strong funds for the expansion of many businesses in the United States, especially Best Buy and KFC, and he will not need to rely so much on banks.

Of course, if you can borrow money, you should borrow money, but you must also leave room for yourself and cannot rely solely on banks. Only in this way can you develop more calmly.

After negotiating the cooperation with Citibank, Yang Wendong left its headquarters and came to the headquarters office of Changxing Financial Group's US branch;
"The view here is really good, better than the Kang Lok Building in Hong Kong." Yang Wendong stood at the corner office, where the view was the best, with a view of nearly 270 degrees.

Lin Youqi smiled and said, "This World Trade Center is now one of the tallest buildings in New York and even in the United States. Our floor is on the 88th floor, which is much higher than the Connaught Building. The scenery in New York is also much better than that in Hong Kong, especially the various buildings."

"Yes, there are too many of these buildings." Yang Wendong nodded: "But with the development trend of Hong Kong, sooner or later, it will be like New York, with skyscrapers everywhere."

In this world, no one could have imagined that Hong Kong would become the world's top building in the future, and even its housing prices would be ranked first in the world for many years. Although for ordinary people, this is not a good thing; but it is enough to illustrate the strength of its economic development.

However, the prerequisite is actually that the mainland reforms and opens up, otherwise the upper limit in Hong Kong will not be very high.

Lin Youqi said: "If this is true, then Changxing Real Estate Company will definitely become one of the largest real estate companies in the world. In New York City, although there are many real estate companies, there are no giants like Jardine Matheson and Changxing Real Estate."

"There is too much capital in these big cities, so there won't be such a strong monopoly." Yang Wendong smiled and said, "Besides, Europe and the United States generally have property taxes, and the upper limit of real estate companies is limited."

In the early years, Hong Kong was known as one of the world's three largest real estate developers because there was little overseas capital in Hong Kong in the early days, so any few companies could hoard a large amount of land. Later, as the value of land increased, the value of giants like Hong Kong also rose, easily surpassing many other real estate companies in the world.

In other parts of the world, there is property tax, so the development of real estate companies is greatly restricted.

Lin Youqing smiled and said, "Yes, the real estate market in Asia is much stronger than that in Europe and the United States now."

"Let's not worry about what's happening in Asia for now. You should reach a cooperation with Citibank as soon as possible. No matter how much loan Citibank can provide, get it first, and then buy the stocks we agreed on before." Yang Wendong continued.

Before the oil crisis, you could just buy stocks of oil field companies with your eyes closed. If you didn’t understand the industry and it was inconvenient for you to participate, it might be better to buy stocks of oil fields.
Lin Youcheng agreed: "Okay, Mr. Yang."

After arranging matters in the United States, Yang Wendong returned to Hong Kong from New York;

By the end of July, Yang Wendong once again came to the industrial park of Changxing Industrial in Kwun Tong and entered a large warehouse.

Wei Zetao, who was standing next to him, said, "Mr. Yang, here are the plastic pellet raw materials I have in stock. There are all kinds of them. This is just one of the warehouses. There are another six in other places."

"How long will this be enough to meet the needs of our group?" Yang Wendong asked.

More than half a year ago, Yang Wendong ordered Wei Zetao to stockpile plastics, because plastics are also petroleum derivatives, and the surge in oil prices will inevitably affect the supply of plastics;

This is also how he prepares for the upcoming oil crisis from many aspects.

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(End of this chapter)