A bank's crisis can be magnified hundreds of times with the help of capital chains. When HSBC decided to save itself decisively, the crisis gradually broke out after half a month of brewing.
The British guys from HK announced that they would take over HSBC and sort out its financial security holes. But when it was determined that the hole was as large as hundreds of billions of dollars, they actually backed down and refused to provide government-level credit guarantees, let alone inject emergency funds.
Hong Kong is a regional financial center in East Asia, but the British are sitting back and watching the crisis unfold. Because the hole is so big, the British Isles will be sucked in accidentally.
This situation even exceeded Zhou Qingfeng's expectations. He originally wanted to vent his anger and seek trouble with HSBC, but he did not expect that HSBC was the core of the intricate capital chain.
When HSBC suffers, entities involved with it will suffer.
The economic engine of East Asia at this time is Japan, but Japan's economic crisis has broken out and it is now difficult to protect itself.
The other little dragons and tigers couldn't sustain enough, so they could only watch the danger of a broken capital chain spreading like a plague.
Panic is contagious.
When financial institutions throughout East Asia realized that the crisis was inevitable, everyone was withdrawing money and shrinking to save lives. If they did not want to go bankrupt, selling assets at low prices was the only way.
In the face of the financial crisis, those who can spend money are the saviors. When Zhou Qingfeng said that he was willing to spend money to acquire, first of all, a bunch of financial institutions jumped out to sell him packaged 'negative assets'.
The 'negative' here does not mean that the assets are bad, but that these assets are depreciating.
What's ridiculous is that it's not just HSBC that's doing this, there are a lot of banks that are doing this.
This is just like Tianyang's banks trying their best to get rid of the burden of state-owned enterprises. Every time the 'baggage' stays in their hands for one more day, they will suffer more losses.
Banks hate losses the most.
There were so many "negative assets" presented to Zhou Qingfeng, like pieces of fat, that it was difficult for him to choose.
The entities currently on sale are entities with great potential for development. With the rapid growth of the domestic economy, you can make tenfold or a hundredfold profit by buying them.
US$1.5 billion is obviously not enough.
Sofia had to increase the purchase amount to US$5 billion in order to include more assets in the purchase list. But as more money was spent, the number of companies that came forward to promote it increased tenfold.
After the publication of the "Shengguang Economic Weekly" in April, a bank confirmed the profit expectations of the "Shengguang Group" and was willing to provide loans to "Shengguang" to help with the acquisition.
This...this...this...how embarrassing!
Uncle Zhou still has his integrity, but he is not familiar with the Western dirty tricks of "destroying family and seizing wealth" and slandering other people's self-inflicted crimes. He always feels that the crisis he has caused cannot be too public.
But this kind of practice of taking advantage once is not enough but to take advantage again is too irritating...and impossible to refuse.
Even the chaebols in Japan couldn't sit still. Mitsui, which they had contacted before, took the initiative to send people to the door, asking to continue the previous loan business with Holy Light and provide further services.
With the help of Watanabe Yuo, the Mitsui consortium sent a vice president to personally visit Zhou Qingfeng at HK.
In the reception room of the 'Shengguang' branch, the two parties met and exchanged a few words, and the vice president of 'Mitsui' expressed his intention straight to the point.
"Your Excellency, President, has founded the 'Shengguang' Group in the past two years, and the business has grown at an impressive speed. We at Mitsui have always attached great importance to the mainland market and are willing to provide assistance for the expansion of 'Shengguang'.
We have obtained the financial status of ‘Holy Light’ released by Puhua’s recent audit, and believe that it is necessary to provide more financial support to the President.”
On one side, Eagle Sauce imposes sanctions on ‘Holy Light’ in the name of illegal smuggling, and on the other side, ‘Mitsui’ has the courage to provide funds to President Zhou. This world is indeed ridiculous.
The Japanese yen is currently appreciating, which has severely damaged Japan's exports. Mitsui previously gave Holy Light a total of 100 billion yen, which is almost one billion U.S. dollars when converted into U.S. dollars.
This time, Mitsui directly increased the loan amount to 300 billion yen, with an annual interest rate of 4% and a repayment period of 30 years. Holy Light used its own assets as collateral.
The condition is that Japan's assets must be purchased, to be precise, Mitsui's own depreciating negative assets.
Like HSBC, Mitsui also made a brochure of salable assets - Japan is rich and has more things to sell.
The first ten pages are all kinds of real estate, mainly real estate in Tokyo. Uncle Zhou just passed it - buying a real estate from HK is still a big deal. If you buy a real estate in Tokyo in 1992, do you want me to jump off a building?
But in addition to the real estate in Tokyo, there are also a lot of real estate in New York. Uncle Zhou even passed - I was sanctioned by Yingjiang. I bought it in the morning, and I was afraid it would be confiscated in the afternoon. I only spent the unjust money if I was stupid.
Next are some financial products and overseas assets. ‘Holy Light’ has not yet expanded to the world, and it is Zhou Qingfeng’s ambition to reach out to Southeast Asia.
After flipping through the brochure, Zhou Qingfeng didn't find anything he liked. He asked instead: "Are there any assets in the electronics industry that I can purchase directly?"
Watanabe Xiong, who was sitting next to him, quickly handed over a list of the "low-end" electronic component products that Zhou Qingfeng mentioned before.
The list was forwarded to the vice president of Mitsui, who looked down and saw that it was some gadgets such as resistors, capacitors, and transistors. The technology and value of these companies are not high, and the ten factories combined are not as big as a building in Tokyo.
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The quality of domestic electronic components has been quite poor for a long time, not because the technology is not good, but because the workers have no sense of responsibility. As a result, domestic companies do not want to use domestic products at all. Similar situations abound.
"I want to buy it together with the factory, and move the industrial chain directly to China starting from raw materials." Zhou Qingfeng knows that it is difficult to establish a system, so it is better to just copy other people's existing systems.
Just spend the money.
Anyway, it is a loan from Little Japan, with a repayment period of thirty years, so it will be in vain if you don’t use it.
Hearing that Zhou Qingfeng wanted workers, the vice president of Mitsui readily agreed - these were very basic items, and there was nothing wrong with selling them.
"I also want an industrial chain for semiconductor chips, from silicon manufacturing to chip design to IC packaging and testing."
As soon as Zhou Qingfeng opened his mouth, the other party wanted to shake his head. But he stopped the other party from refusing and continued: "I can accept non-mainstream manufacturing processes."
The current mainstream of the semiconductor industry is eight-inch wafers, one-micron process, integrating millions of transistors, and reaching a computing speed of 100 MHz.
Not only does China fail to reach this level in terms of hardware, but it is also far behind in terms of software and talent. There is no related industry at all.
Except for a small number of military industry fields, the number of employees working in consumer chips is zero.
China is actually a closed market. Even with lower technical levels, sales can be profitable. The key is to build a talent echelon. If there are no people, what if we get a five-nanometer lithography machine?
But this made "Mitsui" hesitate. What Zhou Qingfeng didn't want was the golden mountain, what he wanted was the golden finger that turned decay into magic.
Seeing the other person lowering his head and remaining silent, the President leaned back, waved and said, "Please give me a price. I want the entire industry chain. Ten billion US dollars, is that enough? If not, just twenty billion!"
The vice president shook his head, "Your Excellency, the semiconductor industry chain is very long and there are many supporting companies. Even if it is not the latest technology, 20 billion US dollars is not enough."
"Then $30 billion." Zhou Qingfeng added without hesitation, "If you are willing to sell, I can also purchase another automobile industry chain or petrochemical industry chain."
The vice president opposite was so shocked that he opened his mouth like a toad, "Your Excellency, President, I would like to take the liberty to ask, are you sure that 'Holy Light' has so much foreign exchange?"