Lin Gao Qiming

Chapter 2383 Financing ([-])
The Senate currently expressly stipulates that the maximum annualized loan interest rate is 25%, and the part that exceeds it will not be recognized by the judiciary. If it falls on the express text and exceeds this number, the lender will even be punished-but that is higher than this too much.

But people from Chu and Zhou apparently turned a blind eye to Mayor Liu's white eyes.Maybe I didn't see it, maybe it was some kind of contempt:
When it comes to being an official, you may be awesome, but when it's your turn to cut leeks... you can only be regarded as half-knowledgeable when it comes to finance.

Chuhe will be very humble, and he doesn't have the intention of provoking his teacher a few days ago: "Actually, there is nothing special about my plan. I think many people should have better plans..."

"Hey, why don't you talk about it first." Liu Xiang was a little dissatisfied, thinking that it's already at this time, why are you still pretending?
The surroundings also expressed their opinions immediately: "I have read the plan of the elder Chu Yuan, and it is very insightful! It is very inspiring!"

Chuhe said: "I originally planned to elaborate on this plan in the next meeting. Since the two of you are so interested, I will explain it first."

After all, he adjusted his appearance, as if he was standing in front of the projection screen and preparing for a road show.

After pondering for a moment, Chuhe turned around and asked:

"Elder Zhou Yuan, please allow me to ask a question first, does the Senate prohibit Nanyang Company from issuing bonds?"

I froze for a moment, thinking that your plan has something to do with the Senate? !But he didn't read Chuhe's plan carefully, he only knew that his plan was based on bonds.

In the document sent to him by the Planning Institute, there is no clear statement on how to raise funds. The issuance of shares is not so much a kind of authorization or restriction, but rather an instructional spirit of share distribution.

He thought for a while and said, "Well... the Senate didn't make it clear on this issue. The Senate only gave me a document to authorize Nanyang Company to issue 10 shares. There is no limit on how to issue it or what type it belongs to. The issue of bonds Not mentioned."

"Then Nanyang Company plans to issue bonds?"

People around me thought that it would be of no use if I did not intend to do so. The Senate neither prohibited nor allowed the issuance of debts.

"It is our consistent policy to develop both stocks and debts." A correct nonsense was said around.Because all the financing plans in his hands that are worth looking at are mostly this routine.

Before Nanyang Company did not have sufficient business reputation, it was obviously more realistic to issue bonds than stocks.

Chuhe said: "Both stocks and bonds are a good way to live. My personal opinion is that bonds must be issued, and bonds should be the mainstay. To be honest, my original idea was to issue bonds first, and I am not in a hurry to issue stocks. How could I think of it?" The Government Council directly issued a notice to issue stocks. Bonds are obviously much easier to issue than stocks!"

As soon as they heard the meaning of criticizing the "unprofessional" and "disorderly" of the Government Affairs Council in these words, the surroundings suddenly became energetic and nodded again and again.

But Chuhe didn't know the origin of his expression, and thought that he said this sentence "very professionally", so he couldn't help showing complacency, and his voice was a little higher:

"For the aborigines, there is no difficulty in understanding the issuance of bonds. It is just borrowing money to earn interest. Public offerings are not the case. Not to mention whether the big players can figure out how much Nanyang Company is worth, we want to clarify the asset status of Nanyang Company, Equity relationships, setting up new ownership structures, and valuing assets are troublesome things."

Surroundings thought well. A few days ago, Xu Yanliang and Wang Kai checked the assets and equity status of the Southeast Asian company. They did not expect the accident to be complicated. Up to now, the equity structure of Nanyang Company has not been thought out yet.

Chuhe went on to say: "There are no such troubles in issuing bonds, and it is very difficult for a large number of indigenous families, clans and gentry to judge the value of Nanyang Company and make a decision to invest in stocks based on this, because it is difficult for them to judge the value of Nanyang Company. The value of the company, second, the inability to judge the benefits brought by the stock, third, concerns about the security of the principal, and fourth, the exit mechanism of the principal is not clear. Of course, these problems can be solved by directional issuance to a small number of people, as long as the Senate is willing to make great efforts To explain, and with some coercive force, it is impossible for big investors not to buy. The question is, is it not good to have the time and energy to issue bonds?"

Liu Xiang interjected: "The commercial credit of the Senate is still good. Ziji has issued non-preferred shares, and the subscription is still quite enthusiastic. There is still a mass base for issuing shares."

"The mass base is good. However, Ziji's several names clearly have assets in Guangzhou, and they are still heavy assets. Its business status is also clear at a glance. The old money can trust it. But Nanyang Company only has one piece in Guangzhou. Signboards, the rich people don’t know what the Nanyang Company is actually doing,” Chu He said, “I’m afraid it’s impossible to convince the aborigines with PPT alone. We need to come up with something more convincing.”

Liu Xiang frowned slightly, but did not speak.

"In addition to being easy to understand, bonds also have clear interest, deadlines, and collateral. It is easy for large indigenous households to judge the value and income of bonds. In addition, there is no possibility that the Senate will not repay the loan. The security of the principal and the recovery mechanism They are all guaranteed." Speaking of this, Chuhe thought to himself that there is not only a possibility, but also a great possibility that the Senate will not repay the loan, and the Senate may have a lot of means when it comes to repaying the money.

But it does not prevent him from continuing to say without changing his face: "So, for large investors, bonds are a more acceptable way for them, and their willingness to buy will be significantly higher than that of stocks. The difficulty of public offering is low, and the difficulty of multiple issuance Low, bonds will be easier to raise more money than stock financing. Moreover, bond issuance is also convenient for forced apportionment. Make a "reasonable underwriting" to chambers of commerce or clans, so that they must complete the consignment quota, and they can say no ?"

Around the heart said, I understand all these.But now that the Planning Institute has come up with a stock offering plan, this stock must be raised.He said: "What you said is very reasonable, but the stock financing plan of the Planning Institute has been issued, and we still have to implement it."

Chu He nodded: "I'm not against stock financing either. The disadvantages of stock financing I just mentioned are not absolute. I just think that the two-pronged approach of bonds and stocks works better and is more conducive to the interests of the Senate."

Liu Xiang coughed lightly: "How do you think about the cost of bond financing? According to our survey, the average financing cost of general merchants in Guangzhou is about 25%. If the market booms, this cost may be as high as 40% to 60%. .Of course, we don’t allow such a high interest rate now. But even if it’s 25%, the financing cost can’t afford it.”

Chu He thought: This question is right on point. When the Senate issued a notice, it only said to issue shares, so maybe there was consideration in this regard.It seemed to be a difficult problem, but it scratched his itch. At that moment, a smirk of "being confident" appeared on his face, and he said:

"High interest rates are not a problem. It's impossible not to pay them clearly, but you can dig holes in the rules. The Senate controls the power to formulate and interpret financial rules in this space and time, and it has the right to have money. There are many ways to lower the cost of bond financing. Yes, it depends on how embarrassing the Senate is."

Everyone around laughed: "What's going on? To celebrate the birth of a son by Secretary of State Ma, the interest rate will be cut across the country?"

"Hahahaha, I'm afraid the governor will have to work too hard for the financial health of the Song Dynasty." Chuhe laughed, "It doesn't have to be so ugly, I can give a few examples. One is the "reasonable underwriting" I just mentioned. It's the same as a reasonable burden. Let's set the interest rate at... let's say 10%, distribute the issuance quota to the major guilds, chambers of commerce, and large clan accounts, and let them apportion it themselves. As long as we are willing to pay back the money, there is no resistance to collecting the money would be too big."

This is actually equivalent to buying investment certificates, let alone 10%, even if no interest is given, they will probably buy them.

"The second is self-made rules. For example, it is written in the terms of issuance: In the following situations in the region where Nanyang Company operates, the interest rate can be reduced and exempted according to law: tsunami, earthquake, typhoon and other extreme natural disasters, trade embargoes, wars, major disasters, etc. Large-scale infectious diseases, evidence of overlords, etc. Naturally, what is the operating area, what is the standard for tsunami earthquakes, etc. The right to interpret these terms is in the hands of the Senate. The old time and space can’t do this, and it’s not us now. It's up to you."

The surroundings nodded secretly, this Chuhe still had some ideas.Liu Xiang's complexion began to turn ugly.

"Three, you can find a reason to fine the interest. That's right, the interest received by the borrower is just like that in the Senate." The more Chu He said, the more excited he became, "You, a big family, have not paid the slave tax this year, and the interest is fined! Nanyang bonds are subject to a 50% interest penalty for this year! You, a clan force, violated the Senate’s authority and obstructed public affairs, and you will be fined interest! The interest penalty for the family’s holding of Nanyang bonds within three years will be 100%!”

The surroundings were also happy: "In this case, we must leave a hole in the rules from the beginning."

"That's right, it can be placed in the 'Other Circumstances Determined by the Senate'."

"What about the collateral..."

"Of course it is possible to make fake accounts. Inflating income and assets is very simple. Merchants in Wuzhou can go to Batavia to investigate how many logs are in the warehouse of Nanyang Company?" Chu Heyue The more excited I was, the more I was like a different person in the conference room just now, and I almost burst into tears, "The same is true for the principal, compulsory debt-to-equity swaps, mandatory extensions, new loans to repay old ones, and corporate bankruptcy. There is no need to pay back the gold."

Those around me are also from financial background, even if they are not familiar with these routines, they know it, and they are not "inexplicably surprised".The more Liu Xiang listened, the more frightened he became.Thinking about the extreme suppression of the financial industry by the executive committee in the past, it is not unreasonable to use Caijinkou as a bookkeeping accountant for a long time.These methods are set in one set, not to mention the indigenous people in the 17th century, but how many well-educated people in the 21st century can figure it out!If you really want them to let themselves go, the consequences will be disastrous.

(End of this chapter)