Rebirth 76: Industrial Internet Empire

Kazuo Ono talked for a long time, especially recommending two companies, Kawaguchi Construction and Kumaganisho.

Li Heping secretly laughed in his heart. We came here for these two companies. We know that you have the equity pledged by them and are eager to realize it.

What Li Heping didn't know was that Saitama Bank was the most important link in Yang Mo's entire plan. These powerful commercial banks in Japan, including Bank of Mitsubishi, Daiwa Bank, and Fuji Furong Bank, all have more or less business with Zhiyuan Group. Zhiyuan needs a partner with no conflict of interest, and Saitama Bank is the best choice.

Kumagaya is a small town in the northern part of Saitama with a population of less than 20. During the Edo period, it was a sleeping place belonging to the Nakasendo Road. It was called Kumagaya-juku. It was a place that prospered as a sleeping town.

Kumagai Shoji is located here. It is a construction company that has been established for more than 15 years. In Japan, all industries have prospered in the past ten years, but the real estate industry is like a pool of stagnant water.

This cannot be blamed on Kato Hideo's poor management. Expensive labor costs have always been the natural enemy of construction companies. The real estate industry is in a slump. Kato Hideo finally took advantage of Nippon Steel Co., Ltd. and prepared to transform into metallurgical engineering and equipment installation. I never thought that the cooked ducks of Japan Iron and Steel Co., Ltd. would fly away.

The 22% equity pledged in Saitama Bank cannot be redeemed, and Hideo Kato's shareholding has been diluted to 29%. He will lose control of the company almost anytime and anywhere.

Fortunately, there are many listed companies in Japan like Kumagai Corporation that are barely maintaining the status quo, and Saitama Bank has no intention of competing for control of the company.

After several rounds of negotiations, Qianhai Asset Management Company paid a premium of 10% and used 65 billion yen to acquire 22% of Kumagai Shoji's equity from Saitama Bank. In return for the premium, a special clause was added. Saitama Bank needed help. Only when Ocean Asset Management obtains the controlling stake of Kumagai Corporation can this equity transfer officially take effect.

While Saitama Bank was in contact with Kumagai Shoji's small shareholders, Guo Kexin also began to quietly absorb Kumagai Shoji shares in the stock market.

After the completion of the acquisition, Qianhai Asset Management officially took over Kumagai Shoji. After Li Heping and Kato Hideo held secret talks, except for sending a financial director from Qianhai Asset Management, no major adjustments were made to the management. Kato Hideo continued to serve as Kumagai President of Shoji Co., Ltd.

Of course, Kato Hideo also knew that all major decisions of Kumagai Corporation in the future would have to be approved by this young man.

It only took Li Heping a few days to let Hideo Kato see the power of capital.

The design and construction of the No. [-] plot on the west side of Yuanda Real Estate Tokyo Station began to invite bids. Under the instruction of Li Heping, Kato Hideo teamed up with an architectural firm in Tokyo and participated in the bidding with the mentality of giving it a try, and "miraculously" won the bid.

The "land enclosure" operation of Zhiyuan-related real estate companies has not stopped, but in order not to attract attention, the land acquisition targets have begun to move from the core areas of Chuo, Chiyoda, and Minato to the outer areas of Tokyo such as Shinjuku, Shinagawa, Shibuya, and Koto District spreads.

Repeated secondary mortgages caused the asset-liability ratio of Zhiyuan-related real estate companies to rise to a "horrifying" level. After Guo Kexin's repeated persuasion, Yang Mocai temporarily stopped enclosing land.

At the end of 84, Zhiyuan's crazy land acquisition brought about the butterfly effect. After many years, the Tokyo commercial land price index finally exceeded 120, and funds began to flow into the real estate market.

The Bank of Japan continued to release liquidity and announced a 0.5 percentage point reduction in deposit and loan interest rates. These real estate companies owned by Zhiyuan have become popular in the eyes of major commercial banks.

The repeated reductions in bank interest rates have given Kishida Game Co., Ltd. an opportunity. Like pachinko pinball machine shops, they have pawnshops all over the country. They take the opportunity to attract savings with high interest rates and attract a large amount of funds.

Kishida Games has become Zhiyuan's largest cash cow. With the continuous cash support of Kishida Games, Yang Mo has the confidence to continue to enclosure.

Next, Yang Mo began to perform like walking on a tightrope: Taking advantage of the rising land prices, Zhiyuan's real estate companies successively entrusted foreign banks such as HSBC, Citigroup, and UBS to issue real estate trust funds denominated in US dollars. Interest rates range from 8-12% depending on the loan period.

The huge interest differential means that these real estate trust funds are almost all subscribed internally without the need for public issuance.

……………………………………………………………

Li Heping could no longer remember how many times he had walked into the Tokyo branch of Saitama Bank. Miyamoto Jiucai had specifically stated that he would personally handle all the business of Qianhai Asset Management.

The way Miyamoto Jiucai looks at Li Heping now is like looking at a pile of sparkling gold ingots. The circulation of funds in the Qianhai Asset Management account has opened his eyes as a senior bank executive to what is truly valuable. A powerful capital company.

After instructing his subordinates to complete the business for Li Heping, Miyamoto Jiucai once again persuaded him: "Mr. Li, our Saitama Bank is second to none among many commercial banks in Tokyo in terms of business outlets, number of depositors, and business volume. Qianhai Asset Management’s financing provides better services...”

Li Heping explained patiently: "Mr. Miyamoto, of course I prefer to form a long-term strategic partnership with Saitama Bank and you, Mr. Miyamoto. However, most of Qianhai Asset Management's capital composition comes from Europe and the United States. Wealthy families prefer that all our assets and liabilities be denominated in U.S. dollars. After all, the U.S. dollar, as the world's major currency, has relatively low volatility!"

"Mr. Li, Saitama Bank can also issue US dollar-denominated bonds on behalf of Qianhai Asset Management. Considering our good cooperative relationship, we can give you some discounts on issuance fees!" Miyamoto Jiuzai continued.

"This..." Li Heping showed hesitation that he couldn't make a choice.

"Mr. Li, please!" Miyamoto Jiucai saw that there was a way and bowed quickly.

在宫本久采的耐心游说下，李和平终于答应通过琦玉银行再次发行2亿美元的地产信托基金，年利息10%，发行和信托费用分别从0.3%和0.5%优惠到0.2%和0.4%。

It only took Miyamoto Kusai ten days to complete the internal subscription of the 500 billion yen trust fund, and then distributed the trust fund to Qianhai Asset Management in US dollars at an exchange rate of 1:250.

Miyamoto Jiuzai did not support the bet, and at the same time sold a US$2 million long-term contract in the foreign exchange market for hedging.

For Miyamoto Jiuzai, grabbing top-quality customers like Li Heping from HSBC is undoubtedly a successful poaching that can be written on his resume!

The real estate market is gradually heating up. Qianhai Asset Management, which owns several high-quality plots of land, has ample liquidity and good reputation, and has minimal trust risk. This is almost a guaranteed profit and no loss deal...

In a daze, Miyamoto Jiuzai even saw the opportunity for him to be promoted to the director of the group!