Chapter 178: Bad Accounts of Japanese Bank

Since the beginning of 1997, Japan's financial industry has faced a big problem, the bad debt crisis of big banks! The biggest problem in the financial world left behind in the bubble era began to emerge. In order to cope with the sluggish domestic economic growth in Japan in the 1990s, the Japanese government launched seven expansionary fiscal expenditure plans to stimulate economic growth. The total expenditure reached US$960 billion, about 14% of Japan's GDP. However, the Japanese government has used all the solutions to the macro-regulation of the anti-crisis in Western economic textbooks, which not only increased public spending and consumption on a large scale, but also vigorously promoted expansionary monetary policies. However, the results have always been minimal, which has brought great bad debt problems to financial institutions at all levels that provide funds.

The central bank of Japan reduced the discount rate from 61% in 1991 to 0.5% in the fourth quarter of 1995, and the actual interest rate was close to zero. 70% of Japanese corporate assets depended on external financing, most of which came from bank loans, and the bonds and stocks directly issued by enterprises only accounted for a secondary position. The debt-to-asset ratio of Japanese corporate enterprises has always been very high. Since the 1990s, the economic downturn and the massive increase in spending have caused the Japanese banking industry to accumulate huge bad accounts, bringing serious difficulties to the development of Japanese small and medium-sized enterprises, which accounted for the number of enterprises, the number of workers, the output value and sales.

According to a survey by Japanese private credit institutions, Japanese banks had at least 80 trillion yen bad debts before the financial crisis, and more than half of them were estimated to be bad debts that could not be recovered. The West believes that the total amount of bad debts in the Japanese banking industry may be as high as US$650 billion to US$800 billion, which is three times the number of bad debts around 1990 when the problems of US financial institutions were at the worst. This severely hit the status and credibility of Japanese banks in the international financial industry. After the scandal of Japan's Yamato Bank's New York branch losing $1.1 billion, in order to rebuild the international image of Japan's banking industry, the Japanese Tripitaka Province (Ministry of Finance) began to strictly review domestic large banks in accordance with Japanese financial institutions and local government regulations.

Among the top 19 major ICBC in Japan, 13 banks experienced pre-tax losses or net losses in their full-year performance due to their rush to cancel bad debts. The interim report of the Bank of Japan (the central bank of Japan) shows that as of September 1997, the half-year pre-tax accounts of Mitsubishi Bank, Yasuda Trust Bank and Japan Trust Bank had deficits. The Bank of Japan is rushing to reduce bad debts before the Ministry of Otakonomiya stepped up supervision of banking activities in April 1998. It is preparing to cut the 19 banks' bad debts in the current fiscal year.

For this reason, major Japanese banks have tried their best to shrink their money to reduce the emergence of new bad debts. Several major Japanese banks that provide financial support to Mori Building Co., Ltd., a developer of Shanghai Global Financial Center, expressed their attitude of continuing to raise funds last year. Mori Building Co., Ltd. was forced to find new investors to share risks all over the world. Wang Lanqian and Rong Xinmin happened to meet. The asymmetry between domestic and Japanese financial news made them think they had taken a big advantage. This was also the reason why Yang Xing laughed loudly after hearing this.

By this year, Japan's domestic financial market has not improved at all, and it has encountered an Asian financial crisis that is rare in a century. The Southeast Asian economy, as Japan's base for export and raw materials imports, has suffered a heavy blow. The large Japanese banks that provide a large amount of loans and financial services to the place have made even worse. In May, several large financial institutions have declared bankruptcy.

Shanghai Global Financial Center, which just started construction in 1997, was in a dilemma of breaking the capital chain and forced to stop the work. Mori Building Co., Ltd. had no choice but to pass the risks to the shareholders. Among them, the large multinational consortium had a strong capital and could hold on for a while, and small shareholders like Wang Lanqi and Rong Xinmin were waxed. The savings of the two over the years were basically trapped by the stock market and houses. How could they be described as "sorry"? In desperation, the two had to ask for help from their family.

Zhongchang Group has a big family and a big business. After receiving the news, the head of the family, Rong Mingyou, did not rush to teach his son a lesson. Instead, he immediately flew back from the negotiation site in Australia and his second son Rong Xinren and third son Rong Xinye gathered in Shanghai to deal with the matter. In Rong Mingyou's plan, Shanghai is the headquarters of the domestic Zhongchang Group that he liked, otherwise Rong Xinmin would not have been sent to take charge. But now Zhongchang Group needs to bear nearly 2 billion yuan in losses due to the mistakes of the Shanghai branch, which is a rare setback in the development history of Zhongchang Group in the past 20 years. Even after Zhongchang Group's full efforts to make up for it, the plan to move to Shanghai will be forced to be moved back.

There was even a rumor within the China Chang Group that intentionally cancelled the Shanghai branch. Although the person involved, Rong Xinmin, was not kicked out of the group, was sure to be in the cold palace. After learning that Rong Xinmin's great defeat was actually because of jealousy for women and having a big company like Zhongxing International, Rong Mingyou also gave Rong Xinmin a very embarrassing task, asking him to come to Yang Xing himself and ask Rong Mingyou's mind that the boss behind Xinghua Real Estate, which is the top leader in the mainland industry in China, to see if there is a way to get rid of the Shanghai Global Financial Center.

The Wang family also condemned Wang Lanni. Wang Yunfang's failure to force the palace last time caused the vigilance of other members of the family. Wang Yunqi's elder brother was in the Foreign Trade Commission, the second brother was in the Political Department of the Navy, and the second sister married a lieutenant general of the Air Force. Only the third sister married a Chinese Canadian man who settled in the United States. He set up a company and had some trade deals with Wang Yunqi's Yunlan Industrial. Now Wang Yunqi is in a prosperous state. The position of Yunlan Industrial is naturally very attractive to the juniors in the family who are not interested in careers. Wang Lanni, who was originally the most popular, made such a big mistake, so others naturally took the opportunity to take the lead.

Their family was too anxious last time, which made the other rooms feel a little disappointed. The old man Wang Yimin was also ambiguous about this. Therefore, the family meeting in the large mansion almost turned into a criticism and confrontation for Wang Lanzhang alone. Finally, he knew that he must hold on this time, put away his arrogant attitude, and gritted his teeth and listened to everyone's almost verbally accusations.

Wang Yunfang made a few words for her son and was angry, shouting that she wanted to break up with her family and let Wang Lan return to Tianxi Province. She valued this young son very much, otherwise she would not have let him take her surname. In Tianxi, Wang Lanzhao's father was the vice governor after all, and she would not have watched his son be forced to death by the creditor!

Wang Lanzhang noticed that his grandfather Wang Yimin stared at him calmly, obviously examining his performance in the face of difficulties. As for the backbone of the family, he knew that he could not take responsibility this time, and his status in the family would plummet in the future, because losing money is not scary, but even his confidence was lost. He pulled his mother, who was a little excited, and he stood up and said, "One person does things and one person does it. This time I fell, and I have no complaints about accepting the beating and punishment. I just hope that my family can help me slow down the repayment period. My uncle is doing business, and I will sign and write an IOU on time!"

Wang Yimin waved his hand to stop Wang Yunfang's attempt to bargain. He looked back at the beginning of the meeting and said without saying a word. Wang Yunqi, who closed his eyes and rested, said, "What should we do? We are not familiar with business, so we should look at Yunqi's meaning and listen to his suggestions." Wang Yunqi opened his eyes and tried not to express his proud expression too clearly. He was proud that he could finally be recognized as the core figure of the family.

At the previous family meetings, everyone regarded him as the weakest part. He criticized him for being distracted by playing with things and shutting up. Moreover, most of the family are official people and are naturally looking down on businessmen. Most of Wang Yunqi and his third sister abroad were doing monopoly transactions, and they needed policy preferential treatment to be profitable. Therefore, every time the family Wang Yunqi had to inquire about the new policies from other brothers and sisters. No wonder Wang Yunfang thought it was too easy for him to make money and wanted to rush him to step down.

But now is different from the past. Since he and Yang Xing cooperated, Yunhai Industrial's business has been booming. After divesting non-related businesses and focusing on pharmaceuticals, commerce and cultural industries, it has become one of the few large companies in Shanghai. In particular, he invested the European and American trade routes that Yunhai Industrial originally occupied by him to invest in Xinghai Commercial. As a major shareholder, Wang Yunqi's wealth naturally made a big profit with Xinghai Commercial's Hong Kong listing.

Especially now, Yunhai Industrial’s newly established cultural company, which combines the emerging cultural industries that combine new art and traditional cultural categories such as the inheritance of traditional time-honored handicrafts, collection of calligraphy, painting and antiques, appreciation, auction one-stop service, and the development and protection of national and world intangible heritage. It fully utilizes Yang Xing’s suggestions and also gives Wang Yunqi the praise of “the No. 1 Confucian businessman in Shanghai”.

Now his shares in Xinghai Trading alone are enough to enter the national billionaires list. To put it bluntly, even if he leaves the family's property and leaves Yunhai Industrial, it is not difficult to cooperate with Yang Xing to build another Yunhai Industrial. Times have changed. Now the family is taking the initiative to ask him, so why don't he feel comfortable and full of energy?

He had already thought of the plan, so he pondered for a while, saying, "How could my uncle have been calculating with the younger generation? Xinlan Securities' problem is relatively simple. Anyway, the company has lost all the losses, so I might as well close the door and count the losses into the family fund, and everyone will share the burden. The remaining Qiongminyuan stocks that cannot be sold, brother and I will think of a way to find their legal shareholders to transfer at a low price. The favors and losses will be borne by my company. The problem of Yunlan Real Estate is not easy to deal with. My Yunhai Industry is still its major shareholder. The land in Yunlan's hands is not as good as the investment of Shanghai Global Financial Center. If you don't remove the money, Yunlan will have to wait for death."

Even if Wang Lanqi knew the result, he felt sad when he heard from Wang Yunqi that his Xinlan Industrial was sentenced to death. He felt that last time he forced his uncle to the corner, no one could swallow this. But now it sounded that he really solved the problem for himself. Is his uncle really loyal to his family and has no grudges to him? Wang Yunqi looked at his face and smiled slightly, and changed the subject: "Now there is a way. Haven't you invested in the Global Financial Center with the son of Zhejiang Laorong? I received his message saying that his four boys and you had offended one person, and this person is one of the best in the domestic real estate industry. He said that I am familiar with him, and now he is the only one who can help you. It depends on whether you are willing to put your face down and apologize and ask for advice in person!"
Chapter completed!