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Chapter 506 The Power of Private Capital

Yang Xing proposed that Rong Mingyou be the island owner with him, which was considered his preference, because he had known that many rich people in Jiangsu and Zhejiang had secretly purchased many uninhabited islands in the East China Sea and other places. Since there was still controversy over island development in China and the relevant policies were unclear, the island owners did not dare to blatantly publicize it. They were generally used for leisure and vacation, but most were limited to a few circles, and passed on word of mouth through limited acquaintances.

Zhongchang Group is one of the top three Zhejiang merchants. It is also going to mine in Australia with Zhongxing International and build a port in China. Yang Xing, a strategic partner, is of course very good at it. Naturally, he knows that Rong's family has an island off the sea of ​​Wenzhou Port. There is also a large floating island building called Crystal Palace next to it. When the sea fogs, the floating island sinks and floats, looming in the surging sea. It really feels like a fairy mountain on the sea, which makes many people flock to it. It is said that those who want to go to the island will be scheduled to be a few months later, so Yang Xing asked this question to see if Rong Mingyou is willing to find a small island in this Great Barrier Reef as the owner.

But Rong Mingyou looked bitter, and he was not as proud as he had just signed a big contract of billions of dollars. Even the magnificent scenery of the Great Barrier Reef in front of him could not be wise. "You are too willing but not enough. You are so capable of doing things. You have increased the investment amount we first discussed to several times, and there is a subsequent investment? This will emptiate my old capital. There is no sign of investment in domestic ports. Now, where can you still have spare money to come here to buy islands to play?"

At that time, Xingwei Resources and China Changchun Group simply cooperated to develop Australian coal and iron ore. Although they had long considered that mining was easy and transportation was difficult, they set a billion US dollars in investment, most of which were under construction of railways and construction of docks. Unexpectedly, due to the obstacles of the two Tuo, Yang Xing had a sudden idea that there was a large iron ore in a large mining area in the Pilbara area that was deliberately ignored by the two Tuo. So he used money to pave the way directly to $5 billion in advance, which impressed the Australian politics and successfully expanded the agreement from simple mineral resources to multiple neighborhoods.

But this also almost hit the full arrangement of China Chang Group. US$5 billion is equivalent to RMB 45 billion. Although China Chang Group and China Star International only account for a small share in cooperation, they still have a share of 20%. Of the initial US$1 billion, they will have to spend more than 200 million, which is almost equivalent to the profit of China Chang Group for a year. They do not want to be completely led by China Star International in the future cooperation, so they cannot let their share be diluted, so they need to continue to increase large investments. No wonder he is frowning.

Yang Xing understood Rong Mingyou's concerns and laughed: "Everyone said that they don't know the true face of Mount Lu, because they are in this mountain. Mr. Rong, you have a mistake. How can you pay for this money? The agreement we signed is a hot topic. I'll give you an idea. This money doesn't need to touch your group's own funds. You know, the market is a very interesting place. Sometimes confidence in a company is often more effective than any mortgage loan. What you have to do is give them a strong signal to make money, and ensure that many people will come with money to ask you to give them a chance."

"Oh?" Rong Mingyou's eyes lit up. He had known that the young people in front of him were very good at capital operations. Even many Western financial media called him "the magical boy of the capital market". Many local bigwigs in China treated him as guests of honor, and he must have relied on saying this. So he didn't care about the fact that Yang Xing was younger than his son, and he took a scrupulous attitude and listened to Yang Xing's explanation in detail.

"Actually, this is not difficult. We must also see real results in the capital market. The real large order we signed with Australian government this time. The area of ​​more than 100,000 square kilometers of mining area is larger than that of many countries. What's more, there are agreements to build railways and ports. Our opponent is a government agency, and they are guaranteed to us later is not more convincing than anything else. If you release the news that we have selected a site for the construction of ports and steel mills in China, the market will naturally have a way to connect them. With such strong background conditions, you are still the vice president of the Zhejiang Business Association. Can't you find interested investors from your fellow villagers and colleagues?"

"You mean to use the power of private capital to expand stocks and increase capital, issue corporate bonds and even private lending?" Rong Mingyou is an old man and understands Yang Xing's meaning at first sight. After the reform and opening up, the coastal economy developed rapidly, forming rich areas such as the Pearl River Basin and the middle and lower reaches of the Yangtze River basin. As the leader of the Yangtze River Economic Circle, the strength of private capital in Jiangsu and Zhejiang has grown rapidly, and a large number of rich people emerged like mushrooms after a rain. Among them, Zhejiang businessmen are undoubtedly the leader. After the 20 years of reform, the wealth accumulated by Zhejiang businessmen represented by Rong Mingyou has also reached an astonishing number. If Yang Xing can say, it is indeed not difficult to solve Rong Mingyou's problem.

In order to cope with the impact of the Asian financial crisis in 1997, the new government has implemented the reform of state-owned enterprises in China and opened up a gap in many industries that had previously banned private enterprises from participating. Most of the first to seize these opportunities were wealthy people in Jiangsu, Zhejiang and other places, whose penetration into the national heavy industry was uncontrollable.

After 1998, a large number of steel mills and shipyards emerged in Jiangsu and Zhejiang alone. The number of approved projects and the large investment amount made the officials in charge of the approval of the National Development and Reform Commission amazed, and they had completely experienced the prosperity of Jiangsu and Zhejiang.

The Rong family made its fortune in Wenzhou, Zhejiang. It has always been the pioneer of domestic private enterprise reform. Wenzhou businessmen have a sharp vision and are the first businessmen in China to make business all over the world. Rong Mingyou's Zhongchang Group's main business is small commodity wholesale and international trade. Wenzhou has many private enterprises and the strength of private capital is also extremely strong. Many Wenzhou businessmen who have made enough money already know how to use the hot money in their hands to find opportunities to make money. If they really can't do it, they can simply speculate on various topics to make profits.

Yang Xing clearly remembers Wenzhou's "house speculation group" and "vegetable group". The huge amount of funds released by them after they join forces can even affect the country's industrial policies. It is definitely a financial force that cannot be underestimated. Moreover, Zhejiang businessmen in Wenzhou and other places find it difficult to obtain credit from state-owned banks due to grassroots capital, so private lending is everywhere, which is sometimes only a line between the illegal fundraising that the state has repeatedly banned. Rong Mingyou knew what Yang Xing was saying, but he was unlucky.

Yang Xing saw Rong Mingyou's concerns and continued to help him relieve his pressure: "Old Rong, you are worried that the money from your fellow countrymen is not easy to get. I know you are worried about policy changes. The country is now very debated about the opening up of finance to private capital. It is believed that private capital cannot be allowed to be carried out in disorderly, and the debate is only about the size of management strength. But fortunately, China Chang Group has Changsheng Bank behind it, and Xingwei Resources has Xingfu Bank. I wanted to enter the Jiangsu and Zhejiang area. This is a good opportunity."

"I think it is necessary for us to package the agreement between us and Australian government and use our two banks as a platform to officially announce the long-term cooperation between the two companies. We will use methods such as expanding and increasing share capital, changing shares, issuing corporate bonds, and operating this project openly so that everyone can see clearly that as long as our cooperation projects at home and abroad start smoothly, as long as we have a little business acumen, we will not be unable to see the benefits of cooperation with us. If you want to join us, you will need to pay an entry fee."

After hearing this, Rong Mingyou breathed a sigh of relief. What Yang Xing said made sense. He was indeed too cautious just now. They defeated Liangtuo with open and conspiracy in Australia. How could they still be timid when they returned to China? It was the impact of the psychological disadvantage caused by low-key operations in the past. Yang Xing was right. With the cooperation agreement signed with the Australian political fu and the plan to build a port in China, the China Changchun Group operated in the domestic capital market with confidence and absorbed private capital, which should not cause much rebound.

The iron ore purchase agreement signed by Rong Mingyou and others plans to achieve a production of tens of millions of tons per year, but it is still far from enough to doubling the domestic steel output year by year. Now domestic real estate is booming, and the demand for steel for construction alone is a bottomless black dong. Many bosses are ready to start the steel project. The steel plant they proposed to build in the port, and the reporting information reached 20 million tons. At this time, only Baosteel and Tang Steel produced more than 10 million tons of steel in China. Linking this steel plant with Australian iron ore is enough to attract the attention of many people in the stock market.

This is also the reason why Rong Mingyou insisted on helping to cooperate with China Star International. In addition to being fond of China Star International's strength, he also had the idea of ​​enjoying the cool under the big tree. When this news came back to China, no matter how China Changchun Group kept a low profile in the past, it would now be carefully reviewed in the spotlight. The reputation of China Changchun Group's domestic reputation for private capital has always been negative. If China Star International, a large Hong Kong multinational company, is used as a shield, will be under much less pressure.

Yang Xing's idea of ​​letting Changsheng Bank and Xingfu Bank cooperate with capital operations is undoubtedly better. Changsheng Bank has a foundation in China, while Xingfu Bank has rich overseas financial experience. Previously, Yang Xing also suggested that Rong Mingyou take advantage of this opportunity to make arrangements in Australia to gradually transfer some of the core businesses of the medium- and long-term companies to overseas. This way, the constraints are smaller and the overseas funds are more sufficient. As long as there is stable investment returns, Zhongchang Group can also win the favor of overseas investors and have greater room for development.

After Rong Mingyou's ideas were opened by Yang Xing, he finally understood that as long as he had a good project in hand and could well describe a bright profit prospect, he could use his own money, and naturally there were a lot of investors who could squeeze out their heads and take the initiative to give you money.
Chapter completed!
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