My 1999

Chapter 878 Tier 1 Capital

Xu Liang, who directly controls the lifeblood of Standard Chartered, also indirectly controls the power of Standard Chartered.

Humphrey, whose life was seized, became more and more submissive.

"Haha, we are all on our own. When I help you, I am also helping myself, so you don't have to be polite."

Humphrey smiled and nodded, handing over a piece of information he had brought with him.

"BOSS, this is the current merger and acquisition information of Guangdong Development Bank."

Xu Liang took it and turned it over.

"The competition is fierce."

Humphrey nodded and said: "Currently Citibank, Société Générale and HSBC have all formed bidding groups with Chinese domestic capital.

Citi's partners include Carlyle, China Life, State Grid, CITIC Trust and Puhua Investment.

Six institutions plan to hold Citigroup 20% of Guangdong Development Bank's shares and Carlyle 4.74%.

China Life Insurance holds 20% of the shares, State Grid holds 20%, CITIC Trust holds 12.85%, and Puhua Investment holds 8%.

The Societe Generale bidding group mainly includes Sinopec Group and Baosteel Group.

They plan to invest 23.5 billion yuan in Huaxia Coin to bid for 85% of Guangdong Development Bank’s shares.

In order to comply with Huaxia Banking Regulations: the shareholding ratio of foreign banks shall not exceed 25%, and the shareholding ratio of a single foreign investor shall not exceed 20%.

Industrial Bank decided to lower their shareholding ratio in China Guangdong Development Bank from 24% to 19.9%.

The Canadian bank and investment institution Proparco in the Industrial Bank consortium holds 5%, and the rest will be held by Baosteel Group and Sinopec Group, the other two members of the bidding consortium.

Then there are HSBC and Huaxia Ping An Bank, but HSBC signed an exclusive agreement when it invested in Huaxia Communications Bank.

In addition to Bank of Communications, HSBC cannot invest in other Hua Xia Bank.

Ping An is weak on its own, and China's main purpose of reorganizing Guangdong Development Bank is to change the current situation of Guangdong Development Bank through the entry of foreign capital, and at the same time make some new attempts for foreign capital to participate in financial reform.

Ping An, as Hua Xia Bank, obviously cannot meet this requirement. "

Xu Liang nodded slightly, "In other words, our main competitors are Citibank and Société Générale."

"Yes.

But mainly Citi.

His Chinese partners are too strong. "Humphrey said.

Although Sinopec and Baosteel are not bad, China Life, State Grid and CITIC are stronger.

And there’s a Carlyle.

"BOSS, Hanhua and Standard Chartered alone are not enough to defeat Citigroup's alliance. We need stronger partners. So I propose that we join forces with Ping An Bank and recruit two to three large Chinese state-owned enterprises to form the final alliance."

Xu Liang asked with a smile: "It seems you are ready?"

Humphrey nodded, "In addition to Ping An, Standard Chartered is currently in contact with China National Petroleum Corporation, China Mobile, and COFCO, hoping to bring them in."

"You are responsible for the contact, but you must ensure that Standard Chartered and Hanhua's shareholding reaches 40%." Xu Liang said.

"OK."

"Standard Chartered plans to invest in the crooked financial market?"

Humphrey nodded, "Wanwan is the fourth largest banking market in Asia, and through two financial reforms, it not only opened up foreign investment channels, but also increased the concentration of Wanwan Bank. The market has matured. Currently, major banks in the world have Big banks are looking for opportunities to enter the crooked market.

Standard Chartered's current main investment direction is emerging markets such as East Asia and Southeast Asia.

At present, we have won the First Bank of South Korea, Gem Bank of Indonesia, and Nakornthorn Bank of Thailand.

Winning Wanwan is a crucial step for us to expand our business in East Asia. "

Xu Liang is clear about Standard Chartered's Asia strategy.

In September 1999, Standard Chartered defeated competitors Citigroup, HSBC Holdings and Singapore's United Overseas Bank, and spent US$310 million to buy 75% of Nakornthorn Bank in Thailand, with total assets of US$1.6 billion and 67 branches in Thailand.

Then it spent US$1.34 billion to purchase Grindlays, a well-known international bank with total assets of US$7 billion, thus becoming the leading international bank in India and Pakistan and the second largest in Sri Lanka and the United Arab Emirates.

In August 2000, Standard Chartered acquired Chase Bank's retail banking and credit card business in Hong Kong for US$1.3 billion.

After acquiring Chase, Standard Chartered completely defeated HSBC in Hong Kong's credit card industry and became the bank with the largest card issuance volume.

These were just the beginning. Soon Standard Chartered acquired UBS, the global trade finance business outside of Switzerland.

Structured finance business in emerging markets of Canadian Imperial Bank of Commerce (CICB), Metropolitan Bank of Lebanon.

In 2001, Standard Chartered Group will spend US$154 million to acquire 9.76% of the shares of KorAmBank listed in South Korea.

Two years later, Standard Chartered spent US$3.3 billion to defeat HSBC in acquiring South Korea's First Bank.

Taking advantage of the opportunity that global banks had to shrink their business in East and Southeast Asia after the outbreak of the Asian financial crisis, Standard Chartered attacked from all sides and soon became one of the largest international banks in East and Southeast Asia.

This is why Xu Liang is willing to acquire it.

The focus of his business landscape coincides with the direction of Standard Chartered's business development.

"Which one do you have your eye on?"

"Wanwan Hsinchu Commercial Bank has 42 branches across the island, total assets of approximately US$13 billion, and more than 2.4 million personal deposit accounts, as well as 115,000 corporate and small and medium-sized enterprise deposit accounts.

It is the seventh largest private bank in Wanwan. "

Xu Liang nodded slightly, "Isn't there a bigger acquisition target?"

“Yes, but they are all backed by Wanwan local business families, so it will be difficult to acquire them.

If you plan to expand Standard Chartered's share of the Wanwan banking market, you can do so by continuously acquiring those small and medium-sized banks that are weak.

However, Standard Chartered's current funds have been used to the limit. The income in 2005 will be prepared for investment by Guangdong Development Bank, and the acquisition of Wanwan Hsinchu Bank will have to wait until 2006.

If you plan to expand Standard Chartered's share of the Wanwan banking market, you must raise funds to supplement Standard Chartered's Tier 1 capital. "Humphrey said.

One point to emphasize here is that bank liabilities are different from corporate liabilities.

Liabilities of a business are specific debts that must be repaid.

However, bank liabilities are a financing method in which the bank needs funds and pays corresponding prices to the fund providers.

In layman's terms, the money you deposit into the bank is the bank's liability.

Because it has an obligation to repay.

The more liabilities there are, the more popular the bank is and the bigger the market.

For banks, the key indicator is Tier 1 capital adequacy ratio.

Simply put, it is the ratio of a bank's own capital to its risk capital.

Tier 1 capital adequacy ratio is an important indicator of bank capital adequacy supervision. It reflects the bank's capital strength and ability to resist risks.

The higher the Tier 1 capital adequacy ratio, it means that the bank has more capital reserves when facing risks and can better respond to the occurrence of risk events.

According to the provisions of the Basel Accord, the Tier 1 capital adequacy ratio of global commercial banks cannot be less than 2%.

Standard Chartered's Tier 1 capital adequacy ratio is relatively high, around 5.2%.

Based on Standard Chartered's total liabilities of more than US$500 billion, its core tier one capital is around US$24 billion, slightly higher than its market value.

"Issue a convertible bond? Please go back and discuss with the company management how much capital to raise and submit a document."

Humphrey nodded in agreement.

As the CEO of Standard Chartered, it is in his interest for the company to grow even bigger.

…

Not surprisingly, when Manchester United announced on the club's website that it would invest 1.5 billion pounds to rebuild the Old Trafford Stadium, the whole of Europe was shocked.

The major media have analyzed the pros and cons of Manchester United's new stadium at length.

Envy, jealousy, hatred, and comments caused by various emotions flood the major media.

No one cares anymore about reports of Manchester United being overly commercial.

Manchester United fans who had demonstrated before and told Xu Liang to get out.

A touch of the face, a change of brand.

He blew a rainbow fart directly to Boss Xu.

All kinds of support, all kinds ever.

Spend money as if you don't need it.

Manchester United TV also took the opportunity to interview some fan groups' comments in support of the big boss, and played them together with the animated short film of the new stadium made by Manchester United, which directly made all the top Premier League teams including Liverpool, Tottenham and Manchester City envious.

The only ones better are Chelsea and Arsenal.

The former has Abramovich, and the latter has a budget-minded professor and the Emirates Stadium that is about to be completed.

While the outside world was talking a lot, Xu Liang had already arrived in Milan with Mo Hongzhuang.

"Brother-in-law, let's go shopping?"

Mo Hongzhuang's face was filled with anticipation.

The most desirable city for women all over the world is Milan.

This is the birthplace of the world's top luxury brands such as Armani, Versace, Fendi, Prada, Gucci, Valentino, Dolce \u0026 Gabbana, Tods, Moschino, Milan, etc., accounting for more than half of the world's top luxury brands.

It also attracts men from all over the world.

There are many beauties at Milan Design Week, Milan Fashion Week and Milan International Film Festival in Italy.

But what I like most about Milan are tourists.

A series of ancient buildings, including the Milan Cathedral, the Church of Santa Maria delle Grazie, and La Scala, attract 8 million tourists every year, which is almost six times the population of Milan.

The derby between AC Milan and Inter Milan was as influential as the Champions League final in the 1990s.

"Where do you want to go?"

Xu Liang asked with a smile.

The beauty walked quietly from the window.

The pale pink halter top is extremely elastic and highlights the beauty's plump bust.

The slender waist curve rapidly enlarged at the crotch, and the girl's buttocks were as pert as a peach, wrapped in thin white hot pants.

The round and straight jade legs were nakedly exposed, white and smooth, like cut ivory jade chopsticks.

A pair of pink socks went over the ankles, complementing the white sneakers.

Mo Hongzhuang, who has a ponytail and short hair.

The whole body is filled with the aura of a young girl.

Sitting in the man's arms, her slender white arms hugged Xu Liang's thick neck.

The red lips are slightly open, and the bright eyes are cunning.