Chapter 622 Mergers and acquisitions suffered setbacks
After finishing 18 holes of golf, Wang Yaocheng and Mo Yuxuan sat side by side on the golf cart and drove all the way to the center of the club. They asked casually in the car: "Brother Yuxuan, how are HSBC's risk control preparations?"
Mo Yuxuan replied; "HSBC has always strictly enforced lending disciplines. The credit threshold is much higher than that of American banks. The entire internal body has gone through two rounds of detailed screening. The proportion of problematic subprime loans and non-performing debt itself is very low.
, involving approximately US$6.96 billion in North America, of which less than US$2 billion were subprime loans.
We took serious action on the bank supervisors and credit departments involved. This part of the subprime loan non-performing asset package was resold to Bank of America, with a withdrawal of US$660 million and an asset write-down of US$1.27 billion.
For this reason, more than 400 bank employees have been dealt with, most of them have been fired or transferred, and a few have been demoted and have their salaries reduced. It can be said that HSBC does not have a subprime loan problem."
"Well, that's right, we have to prepare for a rainy day."
"Boss, are we overreacting? Such a small amount of subprime loans, accounting for a little more than 3‰ of bank loans, is actually harmless."
"Brother Yuxuan, financial discipline is discipline. The rules that are explicitly not allowed to be violated are the red lines. You must keep the red lines and never cross them. Anyone who dares to disobey will have his job ruined, no matter how talented he is.
Don’t forget, the century-old Barings Bank in the UK collapsed because of a trader. The lesson is profound.”
"Indeed."
Mo Yuxuan is a veteran who has been in the business world for a long time. Nowadays, all enterprises at the consortium level have carried out large-scale management of non-performing assets. The non-performing assets screened out are dealt with as they should, and written down as they should be written down.
Chen Shi, director of the consortium's audit department, led his men around to conduct inspections. Once problems are discovered, they will be dealt with seriously and will never be allowed to be listed in the current accounts.
Such a big move cannot be justified by strict financial discipline alone.
Mo Yuxuan pondered for a moment and asked, "Boss, did you smell something?"
"Brother Yuxuan, do you still remember Rey Dalio, the manager of Bridgewater Associates?"
"Of course I remember. This guy made a big fuss about the Mediterranean Manor last year, and the consortium could only respond positively. Rey Dalio has not stopped for more than a year, peddling his own theory of the financial crisis everywhere.
It’s become a joke on Wall Street now!”
At this point, Mo Yuxuan was suddenly startled, turned his head and looked at Wang Yaocheng and said, "Boss, could it be..."
"Um."
Wang Yaocheng nodded calmly, looking at the mountains in the distance and said, "The storm is about to come! There are already many signals proving that Rey Dalio is not unfounded and threatening, but the world
The economy is really in trouble."
The golf cart arrived at the center of the club. Wang Yaocheng and Mo Yuxuan immediately got out of the car, looked around at the beautiful scenery, sighed slightly, and continued;
“Recently, New Century Financial Corporation of the United States issued a fourth-quarter profit warning, indicating that the company’s participation in subprime loan asset transactions may result in significant losses.
American International Group AIG and Wall Street investment bank Merrill Lynch also issued similar performance warnings, targeting subprime loan asset transactions.
What does this mean?
This shows that the subprime mortgage crisis may be about to explode. Since 2001, the Federal Reserve Bank of the United States has raised interest rates 17 times in a row, which may be the straw that breaks the camel's back.
The game of beating the drum and passing the flowers around can no longer be played. As the president of HSBC and a senior senior person in the banking industry, Brother Yuxuan should know how deep the subprime loan pool is?
This involves tens of trillions of dollars of wealth, and almost the entire Wall Street is involved, as well as Swiss banks, German banks and British banks in Europe. The ones that have emerged so far are just small fish. As the situation develops, it is possible that
The prehistoric giant crocodile hiding under the water will also be involved.
According to public information;
In the second and third quarters of 2007, large-scale housing defaults occurred across the United States.
When the loan preferential period ends, those old blacks with weak payment ability, South American immigrant groups, and low-income people with precarious jobs cannot repay their mortgages and have no choice but to default.
In a situation where the market economy is in good condition, these subprime credit groups have overestimated their future income and their solvency. Wall Street's financial games have inflated the entire bubble bigger and bigger, further amplifying risks...
…
Haha, sweet dreams will eventually wake up, and when this huge financial chain starts to break from the root, everything will be irreversible."
these words
It was like thunder exploding in Mo Yuxuan's heart. Just looking at the terrible consequences, he was shocked that the ground was deserted.
This is really terrible.
"Boss, this..."
"Even if there is a one in 10,000 possibility, we must respond with 100% attention. Judging from the current situation, the possibility of a financial crisis has exceeded 30%, which is already very high. I have instructed the Hong Kong Guanfengyun Economic Research Institute
The center conducts in-depth analysis and derivation on this topic, and makes in-depth research results from various aspects such as the entire world finance and policy, the game of great powers, and European and American financial trends."
Wang Yaocheng sighed and said with a somewhat lonely expression, "Oh...it won't be long before you can see this detailed confidential report."
At this moment, Mo Yuxuan was already extremely shocked. He recognized Wang Yaocheng's judgment from the bottom of his heart, but he still couldn't accept it emotionally.
What a disaster this must be!
When the financial tsunami blows across the world, there will be a wailing sound everywhere it passes. How can the eggs be completed when the nest is overturned?
At this time, Zhao Feng came over, leaned next to Wang Yaocheng and said, "Chairman, there is news from Europe that the negotiations to acquire EDF have been terminated, and the negotiations with the Swiss ABB Group have also stopped. The negotiation team in front has temporarily returned to Munich. You see
…”
"In this case, let's stop and wait for a more suitable opportunity in the future."
"Then I understand, let's make arrangements now."
"Go ahead..."
Looking at Zhao Feng's leaving figure, Wang Yaocheng couldn't help but frown. The last two large-scale negotiations were both large transactions worth over 10 billion US dollars. They were of great significance for improving the global layout of Hong Kong's China Power Company and GREE Group.
.
I still underestimated the difficulties, and my large-scale mergers and acquisitions in Europe suffered setbacks one after another. The reasons are worth pondering.
It can be seen from the negotiations that Europe's resistance to Hong Kong capital is still relatively high. Moths are constantly popping up, and some politicians and multinational companies as far away as North America are constantly holding back.
This makes the negotiation process full of twists and turns and even more difficult.
Now I have no choice but to give up, just to take back my fist and strike again better.
Compared with EDF, Wang Yaocheng valued the negotiations with the Swiss ABB Group more, but this blockbuster negotiation was more difficult and far from satisfactory.
You know, HSBC's biggest rival in Europe, UBS Group, is the second largest shareholder of ABB Group and has a strong voice on the board of directors.
It jumped up and down to block mergers and acquisitions, which had a very bad effect.
In the field of industrial robots in the world, there are five companies that are the strongest. The Swiss ABB Group and the Japanese company Fanuc are all-round champions. They cover a wide range of fields and are leading manufacturers in the field of power and automation.
Among them, the Swiss ABB Group has a larger scale, more advanced technology, and a higher brand reputation.
Germany's KUKA Robot Company and Yaskawa Electric are individual champions and have unique technical advantages in their respective professional fields. Yaskawa Electric is good at servo motors, frequency converters and motion controllers, and is unmatched in this regard. KUKA is the leader in the field of automotive industrial robots.
No. 1 brand.
Another company is Kawasaki Heavy Industries. Intelligent industrial robots are widely used in automobile manufacturing, home appliances, electronics, injection molding and other industries, and have comprehensive robot automation solutions.
The Royal Family Fund is trying to acquire the Swiss ABB Group in order to develop its efforts in the field of industrial robots and improve the overall level of domestic related industries and manufacturing levels by controlling Europe's advanced precision robot technology.
For GREE Group, it is an important strategic move to transform into a comprehensive equipment manufacturing plant.
Gree Group now owns hard-core brands such as Gree, Sanyo, Panda, Thomson of France, Siemens of Germany, KUKA Robotics, and Symbol Technology of the United States. It also participates in LG Electronics. It has broken away from its identity as a home appliance manufacturer and gradually transformed into a comprehensive industrial equipment manufacturer.
Manufacturers shift.
Its products include air conditioners, refrigerators, small kitchen and bathroom appliances, consumer electronics products such as CD players, digital players, laptops, mobile phones, tablets, and office equipment such as copiers, money counters, copiers, scanners, and office supplies.
wait.
Newly developed areas include barcode equipment and scanner production, intelligent robot equipment, auto parts and flexible production lines, etc., which greatly enriches its product types and enhances the company's comprehensive strength.
After more than ten years of rapid development, GREE Group has gradually developed into a powerful multinational consumer appliance manufacturer, and its strength cannot be underestimated.
In 2005, it entered the list of the world's top 500 companies, ranking 467th. In 2006 and 2007, it reached a big level and is now ranked 297th among the world's top 500 companies.
If it can merge with the ABB Group, a long-established Fortune 500 company, it can drive Gree Group's ranking to soar, reaching a position of about 150 in the world.
Comprehensive equipment manufacturers are much better able to adapt to the increasingly fierce market competition than independent category manufacturers. Just like Disney Media Group compared with New Line Cinema and DreamWorks, the two parties are not at the same level at all.
The wish is beautiful, but the reality is cruel.
Wang Yaocheng's attempt this time ended in failure. He looked at the white clouds floating in the blue sky and smiled casually;
The financial crisis that is about to sweep the world is coming, and even the powerful UBS Group will not be immune. I hope you can still be tough when the time comes.