Winning the new financial era

Chapter 613 Trust License
"Trust license?"

Zhang Yida glanced at Lin Zhenyang and confirmed again.

Lin Zhenyang nodded heavily, "According to reliable sources, Zhongjiang Trust has defaulted on a large number of trust plans, and the Tomorrow Department itself has fallen into a quagmire. In the past two years, the Tomorrow Department has been cooperating with the state to deleverage and divest a large number of financial assets.

This time it was Zhongjiang Trust's turn, and all parties were eyeing this trust license. "

Speaking of the Department of Tomorrow, the boss Xiao Jianhua, Zhang Yida, and Lin Zhenyang are all alumni, having graduated from Capital University.

Tomorrow Group was originally founded by a group of college graduates from Jingda Aoki from scratch, and even the registered company name had the word "Jingda" on it.

After more than 20 years of development, the Tomorrow Department has controlled and participated in 44 financial companies, involved in banking, insurance, trust, securities, funds, leasing, futures, etc., covering all licenses in the financial industry. The assets of the financial institutions it controls and participates in are as high as 3 trillion.

In addition, it is said that there are 4000 shell companies, and even the middle managers of the companies do not know which companies are owned by their own group.

Under the intricate ownership structure, a private financial holding group has involved more than 40 financial structures, and it is not too simple to make some small moves to improve performance.

Therefore, this private financial holding company was dismembered. After the boss was taken away from Hong Kong two years ago, he never appeared in the public eye again.

Zhang Yida thought for a while and asked, "Do you think it's appropriate for us to obtain the trust license?"

Lin Zhenyang is puzzled, isn't it the first time you have been thinking about the full financial license?

Now that the license plate has come, are they retreating again?
"If you have something to say, just say it, do you want it or not?"

Zhang Yida shook his head, "Rui Xiang can't have it, it's a bit eye-catching, I believe this thing will start with billions of dollars once it explodes.

Put it into Ruixiang, it is a ticking time bomb.Moreover, it also affects our technological content, and it is dumbfounded to be valued as a financial stock. "

Lin Zhenyang pondered, it seems that it is really tasteless, for the current Rui Xiang.

Big guys who like to engage in capital operation and industry should prefer this license. Funds can flow to several fields such as real estate, infrastructure, securities, bond investment, loans, and venture capital.

"That's fine, let's not join in the fun."

Zhang Yida nodded, and said, "We don't want it. Yimin Wealth can take over."

Lin Zhenyang said with a smile: "The business is very suitable, and it can also achieve the effect that one plus one is greater than two."

Wealth management and trusts are both aimed at high-net-worth clients, and even wealth management institutions also help trusts sell products.

Thinking of the size of Yimin's wealth, Lin Zhenyang asked one more question: "Can Yimin's wealth be eaten?"

"Just borrow some money."

After figuring this out, Zhang Yida called Ding Siyao.

"Do you want a big gift bag?"

Ding Siyao didn't understand, and asked, "Mr. Zhang, what did you say?"

"Do you want a trust license? Yimin Wealth will control a domestic trust company."

Yimin Wealth has developed very well in Southeast Asia, and Ding Siyao has also stayed in Singapore for a long time.

At this moment, she was sitting in her office in Singapore, looking at the coastline in the distance. After hearing the news on the phone, she felt a little excited.

For a company like theirs, it is a dream to have a license, and the most suitable license is a trust.

"Is this true? Which trust company?"

"Zhongjiang trust, but the foundation is not clean, you should go back to China first to find out."

Ding Siyao is no stranger to this company, and even helped them sell products.

"Okay, I'll book a ticket right away."

……

After Ding Siyao returned to China, under Zhang Yida's order, he started a dialogue with the supervisory agency hosting Zhongjiang Trust.

After the preliminary communication was completed and the bottom line of Zhongjiang Trust was found out, Ding Siyao began to come back and report the situation to Zhang Yida.

"Zhongjiang Trust was formerly known as Gan Provincial International Trust and Investment Corporation, which was established in June 1981. It has a history of 6 years and was renamed Zhongjiang Trust in 38.

In 2016, Zhongjiang Trust achieved a revenue of 36.16 billion yuan and a net profit of 19.25 billion yuan, ranking 68th among 6 trust companies.

After the China Banking Regulatory Commission issued the "Notice on Regulating Bank-Trust Businesses" in 2017, Zhongjiang Trust's performance bubble was punctured, and its performance began to decline.

去年营业收入仅仅只有3.5亿元，较2017年下滑63%，只有16年的十分之一都不到，在68家信托公司中排名第55位；
去年年中江信托实现净利润4700万元，较2017年同比下降72.8%，按净利润计在68家信托公司排名第59位。”

Zhang Yida nodded, his performance has plummeted.

The ranking in the trust company has also dropped from the top few to the bottom few, which is really like riding a rocket.

why?All I have to do is to ask the boss of the tomorrow department.

To put it bluntly, it is to lend money to listed companies that do not meet the risk control standards, and use the money from buying trusts to help listed companies that are related to the tomorrow department to transfuse blood and continue their lives.

As for the ghostly performance, they are still profitable. This should be because the risk has not yet fully exploded.

So Zhang Yida asked: "How many overdue trust plans are there?"

"Currently, more than 20 products have been exposed by the media to have stepped on thunder, including the Golden Crane series, Golden Horse series, Silver Elephant series and Golden Dragon series, etc., involving a total amount of more than 50 billion yuan."

Ding Siyao said with a sullen face, "But it's actually far more than that. The regulator has also confessed that 35 trust plans were breached, involving an amount of 79 billion yuan."

Zhang Yida tapped his fingers on the table, what a mess!
But it's normal, the stall is not bad, and it's not his turn to take over.

"What does the regulator mean? How to deal with these default projects?"

Ding Siyao said lightly, "They want us to come in and calm things down. It's best to pay the investors first."

Zhang Yida looked up at the ceiling and said, "It's nearly 80 billion, and we'll pay for it all? You really have a good plan. Are there any additional conditions?"

Ding Siyao said with a smile: "I can't hide everything from you. We are responsible for continuing to deal with these breaches of contract. We will pay as much as we can get back. The difference in the middle will be deducted from the purchase price."

"That makes sense, I'm not Comrade Lei Feng."

After finishing speaking, Zhang Yida took a sip of tea, moistened his throat, and asked, "What price do they offer?"

"150 billion, 71.3005% equity."

Zhang Yida made a calculation in his mind, and immediately calculated a valuation of just over 210 billion.

Such a rotten mess can actually have a valuation of more than 200 billion.

There is no way, there are only 68 trust licenses, the rarer the more valuable.

At present, there are only 15 companies controlled by private companies, including Anping Insurance, HNA and other state-owned, private, and foreign-funded enterprises.

"It's a bit high!"

Zhang Yida sighed, looked at Ding Siyao, and asked, "Is it possible to negotiate a lower price?"

Ding Siyao shook his head, "It's a bit difficult, because not only us, but also other companies have joined the competition."

Zhang Yida nodded lightly. He was not at all surprised that a company came to fight for it.

It would be a real surprise if no one came to snatch it.

For some companies, having a trust license is like buying a cash machine.

Moreover, compared with P2P, this cash machine is not easy to depreciate because it has a license, and it is not easy to be banned suddenly.

Even if there is a problem, it can be sold to the next family, get back the original investment, and even make a small profit.

"What is the current management scale of Zhongjiang Trust?" Zhang Yida asked again.

Ding Siyao replied: "It's about 1500 billion. If the breach of contract is not resolved as soon as possible, the scale of management will drop a lot."

Zhang Yida nodded slightly, who would dare to invest in such a default rate?Risk control is worse than P2P.

Even if Yimin Wealth quickly solves the payment problem, investor confidence cannot be recovered in a short period of time.

If Yimin Wealth intends to become the owner of Zhongjiang Trust, it will not be able to recover blood quickly within a year or two.

It must be operated as a long-term business, and the old accounts must be straightened out first, and then developed step by step.

　Thanks to book friends 20180618063820876 and Daqianglong for their rewards!

　　
　
(End of this chapter)