Chapter 166: Breaking swords and hidden arrows

On September 18, news of Japan's Yakone going bankrupt was reported, and Hong Kong's retail industry was in an uproar. Many Hong Kong's Yakone suppliers and old customers were worried, fearing that the bad news of Hong Kong's Yakone would be reported. After all, the core enterprise of the Yakone Group is still Japan's Yakone.

Four days later, September 22nd is Monday. At the headquarters of Hong Kong, Kazuo Wada, who looked a little sluggish, sat with Ma Sanqi, the CEO of Xinghai Trading. The reporters with a keen sense of smell were a little excited and felt that there must be big news today. After a brief introduction, Kazuo Wada stated that the bankruptcy of Japan's Yahoo will not affect the normal operation of the Yahoo Group, and the Yahoo Group will officially reorganize the company's businesses, and sell and transfer units with small losses and profits to make up for their operating losses.

Finally, he stood up and officially announced that he would transfer most of the shares of the Hotan family in Yakawa to Xinghai Trading Company. The Hotan family officially withdrew from the operation of Yakawa. However, some of his family's personnel, including him, will still stay in Xingfu Department Store, which has been renamed as a subsidiary of Xinghai Trading, and he will also serve as the president of the New Department Store.

One stone stirs up a thousand waves. For many Hong Kong people, Japan's Yakkai is like the most dazzling gem in the crown of Hong Kong's department store industry. We originally thought that this time we would be lost in the mortal world with the fall of Japan's Yakkai, but we didn't expect that the turn of the world would be turned and the Chinese company that was unknown and was said to have been acquired by a Chinese company that was established last year.

Although some people found out that Xinghai Trading is also a listed company and Xinjin also acquired Damaru Department Store, the first Japanese department store in Hong Kong, most people still think that this is a miracle of a noble princess falling in love with a young man in the country, especially the top ten Hong Kong richest people in Hong Kong, Kazuo Wata, who is considered to be on par with Li Ka-shing and Guo Henian, actually agreed to be the president of the branch under this company, which really fell below the glasses of financial critics in the area.

But what is even more surprising is the next news. William Deng, who was once known as the "father of magic" before this summer, seemed to have already seized the CEO throne of Yang Xing, known as the "father of magic" but almost overnight, things changed suddenly and made a big reversal. On September 25, after a brief and fierce negotiation, Baifuqin finally lowered his head, and it, together with a consortium of multiple multinational banks, announced to the public that Zhongxing International would repurchase their listed companies' shares for HK$10 billion.

Of which, HK$7 billion is mainly used to acquire the preferred shares they invested in when Zhongxing International companies went public last year and later as collateral financing, which were owned by international consortiums such as Broadcom, JPMorgan Chase, Shanyi Securities, and Swiss Bank, which were owned by international consortiums last year, and the shares they later provided as collateral financing were less than two-thirds less than the funds they provided at that time. The remaining HK$3 billion was the price of Broadcom's selling 20% ​​of the shares to Xingfu Investment. In this way, the shares of various Zhongxing International companies that the international consortium originally owned were reduced to less than 5%, and Broadcom also allowed Xingfu Investment to enter its board of directors. William Deng was nicknamed by Hong Kong people as the "goodest investor". Not only did he help others go public, he also bought the stocks at high prices and sold them at low prices, and finally even lost the shares of his own company. What's wrong with being kind?

This is of course a joke, but everyone understands that William Deng, the old man in the world, has fallen into a big trouble in front of Yang Xing, a yellow-haired child. Yang Xing is always the only one who is "magical". At this time, William Deng and others no longer care about these ridicule. Of course, they are not philanthropists. The guys who have to squeeze oil in their bones agree to such harsh conditions, all because the financial crisis has worsened!

In early July, the financial storm was severely ravaged Southeast Asian countries, and Thailand, where the crisis started, suffered even more. In August, Thailand announced that the Thai baht defense battle with international speculative capital had failed, exhausted almost all of its foreign exchange reserves. In desperation, it was forced to accept a $17.2 billion aid package proposed by the International Monetary Fund.

But on September 15, there was news that due to domestic political struggles, the Thai government was dissatisfied with the harsh comprehensive fiscal austerity plan proposed by the International Monetary Fund. As soon as the news came out, it was immediately unanimously criticized by the international community. The Thai baht exchange rate continued to turbulent, and the currencies of Southeast Asian countries encountered a new round of selling pressure due to this.

On September 17, under the new round of sniping selling of hedge funds led by Soros, the exchange rate of Southeast Asian currencies against the US dollar fell across the board; including the Thai baht, Indonesian rupiah, Malay ringgit, Philippine peso, and even the always-strong SGD were suppressed by speculators, and the exchange rate fell sharply. In less than two months, the Thai baht fell 40% against the US dollar, the Indonesian rupiah, Malay ringgit, and Philippine peso fell by about 20%, and the SGD fell by 5%. This wave of currency depreciation even expanded to Europe, and the exchange rates of major European currencies also began to fluctuate slightly.

Although Kant Su, president of the International Monetary Fund, quickly expressed his satisfaction with the actions taken by Thailand and did not slow down the assistance of US$17.2 billion, which made the market temporarily stable, the whole world saw that the Asian financial market was in a panic, and any news made the market turbulent. At this time, it was proved that cash is king again. In order to protect itself, many multinational banks sold their Asian corporate stocks and bonds in exchange for green dollar cash or yellow gold. The most safest.

Although it was painful, Zhongxing International took out a lot of money to buy the shares in their hands this time. The loss was better than turning it into waste paper. In order to make up for the losses in other places, they had to admit their offer. Therefore, Zhongxing International only used one-third of the original stock value to win back the company's controlling stake.

When the stock market was sluggish, Zhongxing International also used a large amount of cash to repurchase its own shares. It seemed to be a righteous act that reflects the company's sense of responsibility and enhances its image. Therefore, coupled with its acquisition of Yakan, Hong Kong common stockholders' favorability for Zhongxing International's companies has risen sharply.

As a thank you to Yang Xing for standing up in times of crisis, Bao Haisheng, the Chief Executive of the SAR, who was notorious for taking office, cordially met Yang Xing and commended him. After the guests and hosts had a good chat, Yang Xing set off for Beijing. Many Hong Kong reporters privately suspected that this "magic boy" might still be responsible for asking for help from the central government? They guessed halfway. At this critical moment, Yang Xing suddenly left the Hong Kong base camp, of course, the reason for going to Beijing to seek help from the Hong Kong government to cooperate in combating the impact of hedge funds on the linked exchange rate. In addition, there are two other reasons that forced him to go to Beijing to go to Beijing.

The first is because several members of "The Age of Girls" fell in love with each other. They started to conduct Asian tours in South Korea, Japan, Hong Kong and other places since late March. When they returned in July, they were unable to go to Hong Kong because Yang Xing was busy raising funds everywhere. When the financial storm hit, Yang Xing had to keep an eye on the dynamics of the foreign exchange market in various places. It was not until the Indonesian rupiah won a big victory and completed the plan to acquire Yakan and repurchase shares that he had some free time. This time they joined the new version of "Return of the Condor Heroes" was filmed in Beijing, and Yang Xing was going to visit Beijing.

Of course, the main reason is that Yang Xing learned that the government has undergone subtle changes in his attitude towards him. In the construction plan of five large domestic industrial parks he originally envisioned, the Central Star City of Jiudu, Shenzhen’s Southern Star City and the Western Star City of Shancheng are progressing smoothly. Shanghai Dongfang Star City has delayed the entry into the newly established Zhangjiang High-tech Zone in Shanghai, but the start of construction at the end of the year is not a problem. But the major change this time is that the Northern Star City, which was originally considered to choose a location in Shunyi, Beijing. This project was rejected by the Beijing Planning Commission. At the same time, the real estate plan to develop the Beijing World Style Park, which was just signed in June, was also stranded by relevant departments.

Yang Xingkao always thought that he had conspired with Cheng Canghai to assist the new Hong Kong government not long ago, and coordinated with the military to vigorously promote the Ukrainian "Morning Star" plan. After all, it was in a honeymoon period with the country and he was not so careful about Beijing. He didn't expect that he had just defeated a large number of opponents in Hong Kong, but turned around but got the hidden arrows from China! He knew that the opponents in China were ready to move and must first defend against foreign enemies. Yang Xing had to come to Beijing in person to deal with the hidden arrows.

Zheng Feilong and Wang Yunqi, who came to pick him up the plane, also looked bad. When everyone sat together, they explained the causes and consequences of the matter to Yang Xing in detail. Yang Xing made a warning before the financial storm last year, but he was slight at that time. The three-year regulatory period in China had just ended, and the pressure on enterprises to let go of their hands and feet was very high. His warning could only be spread on a small scale. Although Vice Premier Cheng cleared the State Investment Corporation of all provinces across the country in advance and made a big hole, he was not alone in the Politburo. There were still many problems in many industries in China, and he could only sigh.

As the financial crisis arrived as scheduled, a large number of foreign capital on the domestic economic pillar fled, exports to the outside world fell sharply, and the RMB was under huge pressure of depreciation. Many problems in the economic field that followed have surfaced. Can the economic growth rate be guaranteed to grow by 8% this year? Everyone is unsure.

At this time, the mainstream domestic economic theory believed that the only way was to broaden domestic investment channels, and foreign capital could be introduced and introduced private capital! In the past life, the country had accused the private economy of entering some industries related to people's livelihood from 1997 to 2000. Industries that closed their doors to private enterprises such as steel, coal mines, oil, etc., were opened a little bit at this time. Xingwei Resources could obtain coal mines and nickel mines in Zhongyuan Province, which benefited from this.

But the controversy over this measure was huge at that time. Another group of scholars believed that in the economic crisis, it is necessary to increase the government's intervention in the economy and suppress the private economy to grow bigger. They cited the example of Roosevelt's new policy in the 1930s and pointed out why this crisis had a small impact on the country. In addition to having more than 200 billion foreign exchange reserves, the foreign exchange controls implemented in China contributed indecently. Not far away, the Philippines, Thailand, Malaysia and other countries have also begun to implement foreign exchange control measures, which shows that the government's regulation is necessary and that the regulation needs to be strengthened.
Chapter completed!