Perfection of Rebirth

Chapter 870 Shareholders
An opponent who can sit on an equal footing with the strong must not be far behind in strength.

As the three major shareholders of Sanyo together with Goldman Sachs, directly controlling nearly [-]% of the shares, the strength of Daiwa Securities and Sumitomo Mitsui Banking Corporation cannot be underestimated.

"If we rely on ourselves to get in touch with people who are not familiar with the place, Daiwa Securities and Sumitomo Mitsui Banking Corporation may not be willing to transfer their Sanyo shares to us, but with the major shareholder Goldman Sachs helping in the middle, the probability of success is still very high. Tall," Tang Wenwen said.

"Sumitomo Mitsui Bank seems familiar, but I haven't heard of Daiwa Securities." Jiang Hui also said indifferently that he had never heard of Daiwa Securities.

"Mr. Jiang, it's not surprising that you haven't heard of Daiwa Securities, but I think you must have heard of Nomura Securities?" Tang Wenwen said.

"Of course, it's the largest securities company in the island country. It is said that it has a fairly large influence in the international financial market."

"Daiwa Securities Group is an island country investment bank, and it is the second largest securities brokerage in the island country, second only to Nomura Securities."

"The second largest company? That's amazing. The current island country is the world's second largest economy, and Tokyo is a world-renowned financial capital. It is not easy to become the second market in such a country. "

It is always easy for everyone to remember who No.1 is, but who is No.2, how many people care, and how many people pay attention?

"The major subsidiaries of the Daiwa Securities Group include Daiwa Securities and Daiwa Capital Markets. Daiwa Securities provides retail services such as online trading and investment banking services to individual investors in the island nation. Daiwa Capital Markets is the company's international investment banking arm, which provides corporate and institutional Clients provide M&A consulting, sales and transaction services for various financial products. Other group companies provide asset management, research and private equity fund business..." Guan Weidong briefly introduced the situation of Daiwa Securities to Jiang Hui.

"As for Sumitomo Mitsui Bank, whether it is Mitsui or Sumitomo, many people feel familiar with these two words. Sumitomo Mitsui Bank was established on April 2001, 4 by the merger of Sumitomo Bank, a bank of the Sumitomo Group, and Sakura Bank of the Mitsui Group. Sumitomo Mitsui Banking Corporation, with total assets of 1 trillion yen, is the core enterprise of the Mitsui and Sumitomo consortia in Japan, the third largest commercial bank in Japan and one of the top ten commercial banks in the world.”

"Daiwa Securities and Goldman Sachs are both investment banks. I can understand that they have a close relationship, but why is Sumitomo Mitsui Banking Corp. selling Goldman Sachs face this time?" Listening to Tang's article introducing the relevant situation, Jiang Hui also raised his own doubts.

“江总，这个我可能知道一些。三井住友金融集团2003年1月15日向美国高盛集团发行可兑换优先股，以获得高盛集团1500亿日元（约12.5亿美元）的投资。

According to the stock exchange rate in January 2003, Goldman Sachs may thus obtain a 1% stake in the Sumitomo Mitsui Banking Group, becoming the latest foreign bank to take a stake in the island country's banking industry.The convertible preferred shares issued by Sumitomo Mitsui to Goldman Sachs can be converted into ordinary shares within 7 to 2 years after issuance, with an annual interest rate of 25%.Under the agreement, Sumitomo Mitsui will also provide Goldman Sachs with $10 billion in compensation for losses, possibly with additional guarantees.This should be the link between the two sides. " Guan Weidong said.

"How could such a big bank want Goldman Sachs' investment?" Jiang Hui said with some doubts.

"Sumitomo Mitsui accepted Goldman Sachs for multiple reasons. First, Sumitomo Mitsui's bad debts reached US$2002 billion at the end of September 9, and the accumulation of bad debts forced them to seek foreign aid.

Second, the government of the island country stepped up efforts to reform banks’ bad debts. The Department of Financial Services announced a timetable for cleaning up bank bad debts in early December 2002, requiring all island banks to adopt stricter American accounting standards to evaluate the value of loans starting from March 12. , the island government even announced that it intends to nationalize some of the poorly run banks.

The island government has adopted a tough policy to solve the problem of bank bad debts, forcing the major banks in the island country to seek foreign funds in order to consolidate their own financial foundation.In addition, Sumitomo Mitsui's investment in Goldman Sachs could boost investor confidence in its prospects. "

"Although the economy of the island country has not been very prosperous in the past 20 years, Sumitomo Mitsui Banking Corporation will not have tens of billions of dollars in bad debts, right?"

"Mr. Jiang, speaking of this, there is really a story in it. I don't know if you have heard of it." Guan Weidong said.

"Don't be too tight-lipped, speak quickly and quickly."

"As I said just now, one of the predecessors of Sumitomo Mitsui Bank is Sumitomo Bank. If the collapse of Barings Bank has alerted the European and American financial circles, then Sumitomo Bank's huge loss in copper futures has shocked Asia no less than Bahrain is a blockbuster." Guan Weidong began to introduce some stories in the industry to Jiang Hui, a financial rookie.

"In the 80s when the island country's economy was growing rapidly, the island country had a strong demand for copper and other base metals. Sumitomo Corporation, which is engaged in copper trading, also has a great influence on copper futures trading. Its chief trader, Hamanaka Tainan, controls the global copper 5% of the trading volume. However, it was this copper futures tycoon who lost $1996 billion in just 5 trading days from May 31, 34."

"In the mid-90s, the island country's economy was gradually declining, and the demand for base metals slowed down significantly. At this time, Binzhong Tainan held a large number of long positions. Therefore, Binzhong Tainan raised the spot price, thereby driving the futures price. It forms a squeeze on the short position, hoping to force the short position to stop loss and leave the market to achieve the purpose of making oneself retreat.

After Soros had a deep insight into the fundamentals of supply and demand, he united a large European fund and a Canadian mining tycoon to sell short violently, and launched a long-short battle with Sumitomo. "

"In the 1996 trading days since May 5, 31, the price of copper futures fell from US$34 to US$2712, and Sumitomo Corporation lost US$1740 billion. Since then, the massive selling caused by panic has further expanded this loss to US$26 billion. .Due to the impact of the incident, the copper futures index fell further, and countless companies have closed down due to the Sumitomo Bank incident.”

"The huge loss of US$40 billion has pushed Sumitomo Mitsui Bank to the forefront, and the industry has accused it of being too desperate for speculation.

Especially in copper futures trading, they are blindly arrogant, do not consider market laws, and try to manipulate the global copper market in vain.This irresponsible behavior led to a downturn in the global copper market. "

"After this incident, Sumitomo Bank began to enter a trough period, and it has not slowed down until now. Although the merged Sumitomo Mitsui Bank has a larger scale, they continue to have more cash during the subprime mortgage crisis. To maintain oneself from the impact of the crisis or resist the impact of the crisis." Tang Wenwen said his point of view.

(End of this chapter)