Rebirth: The Financial Giant

Chapter 515 [Negotiation]

Seeing the index plummeting all the way, the village chief felt a little impatient. Today was the opening day of the CIIE, and it would be embarrassing if the market stretched too far.

So I quickly jumped out to refute the rumor. The list of 75 companies could not be so many in the first batch of listed companies.

ha?

False news?

When the market saw it, it understood. Funds went long and rushed to raise the price. The index began to rebound in the afternoon.

The village chief has a second hand. If he can't stabilize the market by refuting the rumors personally, then Guo Jia Team's funds will have to protect the market. As the index rebounds, Guo Jia Team's funds will choose not to move.

The violent reaction of the market can also explain the serious differences to a certain extent. It also shows that investors have insufficient confidence in the market and are frightened by the slightest disturbance.

The main reason is that the shock during this period was too violent.

Meanwhile, the Hilton Hotel.

At around 14:00 in the afternoon, Lu Ming had already moved from his hotel to the Hilton Hotel, where the interview with Wall Street began.

At this moment, Big A had pulled back in the afternoon, but Lu Ming did not pay attention to the market trend.

The two-party interview was arranged in a conference room in the hotel. People from both parties arrived on time and were sitting on both sides of a rectangular table in the conference room.

Lu Ming was quite surprised to see that John Braine, who was sitting across from him, was the head of negotiations for a Wall Street capital institution. When old friends met, they exchanged a few pleasantries before the formal negotiations, which was insignificant.

Tiansheng Capital and Goldman Sachs Capital have a secret money cooperation relationship. Frankly speaking, without the secret entrusted funds from Goldman Sachs Group, Tiansheng Capital's diving funds would have taken a lot of time to deploy overseas.

Of course, Goldman Sachs knew that Tiansheng was harvesting money in the global market, and also knew that Tiansheng had funds to trade in the U.S. stock market. Maybe one of the funds was entrusted by Goldman Sachs.

Goldman Sachs doesn't care about this, it only cares about how much of the profits it harvests is distributed to Goldman Sachs.

Wall Street capital has no patriotism, only profits.

John Brain put his hands on the negotiating table, looked at Lu Ming and said, ...then, Mr. Lu, let's get started?

Of course. Lu Ming immediately picked up a piece of information on the table, On page 23, Wall Street plans to invest US$90 billion, approximately 625.5 billion yuan, into the A-share market through Tiansheng Capital's entrusted management. This investment It will all be delivered to Tiansheng Capital within the next five years, and neither party has any objection to this.

John Brain also picked up an identical sample material and turned to page 23.

Before the two parties formally met to start negotiations, there had already been a lot of communication and preliminary confirmation of the cooperation content, such as how much the initial payment would be, when it would come in, etc.

It is worth mentioning that since the launch of the Northbound Trading Connect three years ago, foreign capital has continued to enter the A-share market. Over the past three years, the accumulated net buying funds have reached 554.5 billion yuan, which accounts for 10% of the total value of the entire A-share market. About 1%.

Generally speaking, the proportion of foreign capital in Big A is not high, at least in terms of apparent funds, it is not high at all.

However, the content of this negotiation is that the scale of funds is already more than 70 billion yuan higher than the total amount of foreign investment in the past three years. Basically, in the next five years, the main foreign capital investing in the domestic A-share market will be entrusted to Tiansheng capital.

As for the source of the funds, the identity of the funds, etc., Tiansheng Capital does not care and only accepts such a large amount. As for the money from overseas capital institutions, they have to figure it out themselves.

Once the deal is settled, just contact Tiansheng Capital to send the money. In the future, Tiansheng Capital will only withdraw capital or distribute dividends in accordance with the agreement. How to divide the money is a matter for the major capital institutions within Wall Street. , no matter how you divide the cake, it has nothing to do with Tiansheng Capital.

In fact, having said that, Lu Ming and Tiansheng Capital do not need foreign capital at all, because the domestic capital surplus has become more and more serious. In human terms, there is no shortage of investors, and there are many people queuing up at the door of Tiansheng Capital with money. go.

The reason why he received funds from Wall Street capital institutions was obviously a transaction for a higher strategic purpose. As for the specifics, Lu Ming would not go into too much detail.

At the end, John Brain nodded and said there was no problem, and also said: On page 69, we don't agree with the 10% profit guarantee plan. This is too low. We want a 30% ratio.

Obviously, Wall Street is not satisfied with this and is aware of Lu Ming's ability to make money.

Lu Ming suddenly smiled, looked at the other party and said, Mr. Brain, do you think it's possible? Can Wall Street do it? Dare you? No! Dare not, not even 5%!

One of the most critical contents of the agreement is that Tiansheng Capital guarantees to cover the profits of this fund. In other words, no matter how much money is actually earned, even if the investment fails and loses money, it will not only protect Wall Street's principal, but also protect Wall Street's capital. You must continue to pay an annualized profit of 10% of the principal. This will happen every year until Tiansheng Capital has the right to terminate the contract 10 years later.

For Wall Street, the biggest attraction of this investment is that it is guaranteed to make a profit without having to bear any risk of loss. It is 100% certain because Tiansheng Capital has given credit endorsement in it.

This investment will bring it an absolute profit return of US$143.5 billion in the next 10 years, an average of US$14.35 billion a year, excluding inflation over the past 10 years, which is quite attractive.

What capital hates the most is risk, and this investment is theoretically risk-free unless Tiansheng Capital, which provides the credit endorsement for it, goes bankrupt and liquidates. But for such a large non-bank financial giant, bankruptcy is almost a possibility in theory. Even bankruptcy takes time to respond, and Wall Street can get out before it goes bankrupt.

John Brain immediately said: Mr. Lu, compared to your company's annualized return on investment of 165%, 10% is too low.

Obviously, Wall Street is unabashedly showing its greedy side.

Lu Ming said with a smile: Tiansheng has gone through a period of crazy high-speed growth. Diminishing marginal benefits is an inevitable trend. With Tiansheng's current size, it maintains a profit growth of 165% every year and continues to multiply. The capital of all mankind is not enough. How many years will it last?”

Just when John Braine was about to speak, Lu Ming immediately jumped in and said, Listen, Tiansheng Capital has been rejecting the excess capital from the mainland. It's not that I'm short of money and I'm begging you, but I'm giving you what I've won for ten years. Money-making opportunity.”

For a time, the negotiations between the two parties fell into a stalemate.

This negotiation has been going on for nearly half a month before the two parties met. Today is the final day, and there must be a result whether it succeeds or not.

In the following time, the two sides continued to bargain with each other, and there were many adjournments during this period.

Even 0.1% is what both parties strive for. In the face of hundreds of billions of funds as a base, even 0.1% is an absolute number of several hundred million, which is a huge profit.

At around 19:00 in the evening, the two parties met again and agreed on the final figure, which was a rate of 11.37%.

In other words, regardless of the profit or loss of this fund in the next ten years, Tiansheng Capital will give Wall Street a profit rate of 11.37%. If this investment loses money, Tiansheng Capital will make up for the shortfall out of its own pocket, but if it makes a profit, for example, in fact If the return reaches 50% in a certain year, the extra part belongs to Tiansheng Capital and has nothing to do with Wall Street.

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