Hong Kong Island Old Events

"It's not a joke." Garcia crossed his legs, took out a cigar from his arms, looked at him and said: "Yisheng's reputation among the Chinese, his power in the police force, and his influence in the business world are completely different. Inferior to the established families.”

"Although He Sheng's political power is a bit lacking, he is better because he has guns and people, and he is young. Youth means everything!"

In terms of family assets and connections, He Dingxian is actually far away from the established families, but he has a lot of time and a lot of opportunities to take advantage of! A rising star, compared with an old family that is not as good as one generation after another, anyone with a discerning eye will know who has more future.

He Dingxian smiled and took the cigar: "I would like to listen to what you have to say."

"Sounds good!"

He put his head forward to accept the lighter handed over by the ghost guy.

"Snapped."

Garcia closed the lighter and said softly: "He Sheng wants the Yau Ma Tei Ferry Company, no problem, but He Sheng needs to provide resource exchange."

Although the Yau Ma Tei Ferry has lost to the Star Ferry Company in the competition, as an important area of ​​people's livelihood on Hong Kong Island, the value of the franchised lines is also very high. If the news of the sale of Ferry Company's shares were released, Luo Yi would definitely have a lot of people coming to buy it.

At the beginning, Citigroup was interested in the potential of the ferry industry and provided loans to Yau Ma Tei Ferry to build a terminal and purchase ferries, thus acquiring a 20% stake.

"You know you have to pay for speaking well in overtime classes." He Dingxian pinched his cigar and exhaled: "What are the conditions?"

"Citibank hopes to cooperate with Oriental Bank, a subsidiary of your company, to launch time deposit business." Garcia said: "Time deposit is a new financial service launched by the head office. It means that customers save cash according to a certain period of time and are given varying interest rates. Give back.”

"It cannot be withdrawn during this period unless liquidated damages are paid."

Time deposit services, which were very popular in later generations, are now a new financial product.

In the financial industry, it is difficult to promote new products. Because the public is inherently skeptical of new products, and out of risk aversion, they try to choose familiar financial products. If British-funded foreign firms can gain the trust of Chinese businessmen with the endorsement of the Hong Kong government, it is indeed difficult for American-owned foreign firms to take root in Hong Kong Island.

First of all, the Chinese will not trust American banks. Secondly, they have to face full competition from British and Chinese banks. Therefore, US-funded foreign banks have always been in the second tier in the Asia-Pacific region, and their competitiveness cannot be compared to that of British firms.

In the early days, Citigroup relied on innovative services such as "traveler's checks", "compound interest system" and "unsecured loans" to grow step by step. It also issued "Victory Loans" and "War Loans" during the war, helping the United States sell 5.6 billion The national debt is greatly appreciated by the Congressmen.

Of course He Dingxian understood the time deposit system, but he didn't expect that the Americans would start playing it so early. All I can say is that when it comes to finance, Wall Street is truly the number one in the world. It dares to take any step, but it is just playing lending to death.

Where does the regular money go when it is deposited in the bank and cannot be withdrawn? It's a loan, otherwise the money will accrue interest if it is kept in the warehouse! Lending is always the core appeal of all financial products, and the regular method can limit users' withdrawals while expanding loans, avoiding the risk of bank runs and greatly increasing the bank's capital utilization space.

The reason why Garcia wants to cooperate with Oriental Bank is not because of Oriental Bank's money, but because he wants to use Oriental Bank's reputation among Chinese people to launch fixed-term products for the largest number of Chinese in Hong Kong Island.

"Mr. He, please rest assured that time deposits are not a bad thing. Proper management is good for depositors and banks." Garcia saw He Dingxian lost in thought and was afraid that he would not understand the utility of time deposits, so he explained aloud.

He Dingxian laughed and said, "I understand what you mean."

There are certainly benefits to running a business well, but what if it fails? Every financial crisis in the world is inseparable from the Americans. If it were not for the powerful aircraft carriers and fleets, Wall Street would have gone bankrupt hundreds of times.

The Third Civil War has begun.

However, the strength of the United States actually exists. In cooperation with Citibank, there is indeed no risk of bankruptcy in the decades to come. There is no point in thinking too much about it in the future.

"So, what kind of cooperation is your bank's cooperation?" He flicked the cigarette ashes with a thoughtful look on his face.

Garcia's eyes lit up, his brows showed joy, and he smiled and said: "In the name of Oriental Bank and Citibank, we jointly launch time deposit products, with interest rates of two years, three years, five years, and ten years at three points, Between three point five, four point five, six point seven.”

"Of course, this is an annual interest rate. According to the company's compound interest system, the ten-year interest rate is already very impressive."

He Dingxian sneered: "Ordinary citizens save 100,000 Hong Kong dollars in the bank, lie down and don't have to work, and earn interest, right?"

"Well, there is a chance to catch up with the price increase, but it is difficult to keep up with the increase in the property market and precious metals." Garcia said sincerely, without saying nonsense, "And in ten years, savers will not be able to use currency for consumption."

"This money doesn't belong to him, so he still has to go to work."

He Dingxian nodded: "Continue!"

Garcia said: "The financial products sold by our two banks are all handed over to Citibank for use. Correspondingly, Citibank is responsible for cashing out customer cash withdrawals, such as tsunami, war, financial crisis and other events that cause runs."

"Citibank is solely responsible for the guarantee. Of course, Citibank will give Oriental Bank a certain commission based on the volume of products sold. The commission is between 0.17% and 2%, depending on the period of time."

He Dingxian thought for a moment and had to admit that Citigroup was very sincere, but he still changed the terms: "It would be better to do this. The financial products sold by both parties will be used by both parties. However, Oriental Bank can purchase the products based on the amount of the products sold." Just purchase the corresponding quantity of Citi products and add the commission to the interest.”

"If a run occurs, both banks are responsible."

On the surface, the modification of the terms is unnecessary, but it changes the two banks from facing depositors together to facing depositors independently. By entering into a contract with each other, they can avoid the possibility of problems with Citigroup products by purchasing insurance.

There are many insurance companies abroad that specialize in guaranteeing banking business.

In this way, He Dingxian is not afraid of something happening to Citigroup, because the insurance company's compensation can fully cope with the depositors' capital losses.

Garcia gave him a thoughtful look, nodded and said, "Deal!"

He Dingxian stretched out his hand with a smile on his face: "Hahaha, thank you sir."

"Shopkeeper Qiu, draw up a contract." He turned around and ordered. Qiu Degen immediately stepped forward to hand over the contract to the assistant of Citi's senior class. The two parties drew up the contract on the spot. One party wrote in small letters with a brush and the other in English with a fountain pen.

It takes a lot of time to write a page-by-page contract, especially when the contract in small regular letters is spread out one by one to dry the ink. The scene is very contemporary.

Of course, these contracts are only preliminary prototypes. Signing by both parties on the spot means confirmation of cooperation. However, the details of the legal terms will need to be supplemented by the law firm again.

Finally, Citibank sold 20% of the shares of Yau Ma Tei Ferry directly to Eastern Group at a price of HK$50,000 each. Oriental Group paid one million in cash, which is already a large share purchase these days. If the news is revealed, it will definitely be reported in the Hong Kong Commercial Daily.

However, in the view of He Dingxian, this acquisition is very worthwhile, because in addition to the franchise qualifications, the Yau Ma Tei Ferry Company also has the physical assets of five ferries, each of which is worth 200,000 to 300,000 yuan.

This equity transaction was considered very successful, but unfortunately, the Yau Ma Tei Ferry Company itself became an additional factor, and bank cooperation became the main project of both parties.

"Big boss, the law firm has perfected the legal terms for cooperating with Citibank's products." Two days later, Qiu De even sat in the attic of Oriental Bank, wearing a robe, and reported to his boss: "Both Oriental Bank and the bank have A billboard has been written and placed in the lobby to recommend time deposit projects to customers.”

"As far as I know, Citibank has begun renting billboards on the streets to promote the campaign, and the effect seems to be very good."

He Dingxian agreed: "The interest rate on time deposits is high after all, and I am afraid it will become a big business in the future. Oriental Bank will first cooperate with Citigroup for two years, and then it will have to launch its own financial products."

"Ageng, if you have the chance, go to Wall Street and send a few young guys to study abroad."

“Americans are experts in finance, and there is no shame in learning from the experts.”

Qiu De was very impressed when he heard this, and said loudly: "The big boss has a long-term vision and thinks thoroughly. I will select a few smart guys and go to the United States to drink foreign ink. They will become prosperous."

"Haha, if you are willing to work hard to learn the language well, you will be born to be prosperous these days." He Dingxian picked up the tea cup and took a sip of tea: "Anyway, the first three who learn English will be sent to them."

"The company will cover all the food and drinks for the boat ticket, and I will receive my monthly salary as well, and I will receive an additional RMB 100 as a subsidy for staying abroad."

With connections from Citigroup, it is very easy to send people to Wall Street financial companies in the United States, or even study abroad within foreign banks, and it is not really about going to school. If the results are good, we can send people there every year in the future, and the Chinese financial industry should also put more effort into it.

"I would like to thank the boss for the younger generation first." Qiu De even chuckled and said: "The accounting office has already calculated that if we want to acquire another 23% of the equity of Yau Ma Tei Ferry, we will need a total of two hundred and seventy-seven percent." One hundred thousand Hong Kong dollars.”

"To acquire 100% of the Yau Ma Tei Ferry Company, you need at least 8 million Hong Kong dollars, which is not a small number. Of course, the bank can completely see it. It depends on whether the boss needs to use the bank's money."

Listed stocks will rise, not to mention equity held in private hands.

It's impossible for him to buy 100% of the equity at the price of 50,000 shares, and it's only 8 million Hong Kong dollars, which is not a big amount.

"Don't touch the money in the bank, and I don't plan to contribute any money. This piece of meat is just for sharing with the brothers to make them happy." He Dingxian wanted to distribute the shares of Yau Ma Tei Ferry to Inspector Hua, the person in charge of O Ji, and as well as the Major Crimes Unit and the Uniformed Unit.