Cheng Dong did not participate in the entire financing process. Firstly, he is not from finance, but majors in accounting. He does not know enough about this aspect to be inconvenient to talk about it. Secondly, he also knows that the water here is too deep, and he is not good at it.
It will easily cause controversy in the future, so it would be better not to get involved.
From his point of view, the current plan is quite satisfactory and nothing excessive - he thinks this is enough. The ultimate goal is to raise funds anyway. As long as it does not increase the burden on the central bank and does not cause serious sequelae, how can we do it right?
It doesn't matter to the hospital.
Cheng Dong said: "The idea of not increasing the difficulty of understanding is very commendable. I personally am very opposed to designing overly complex financial products - this kind of lesson has been learned enough in the old time and space."
This correct nonsense means that he has nothing left to ask.
Meng Xian interjected at this time: "I have two questions. First, how is Southeast Asia Shipping designed to do this? Second, I have no objection to your equity structure, but is this design not conducive to the understanding of large indigenous owners?
To what extent will it affect distribution? How do you consider this?"
Chu He replied: "Southeast Asia Shipping is a shell company established to deal with the former Liu Xiang Group's shareholding. It does not have any operating activities or actual business. Because the assets and personnel of the original Southeast Asia Company have been transferred to Southeast Asia for operations. According to the Planning Institute
I don’t want the naturalized personnel of the former pirate group to get involved in Dongjing’s shares, so I set up a shell company like this and then just pay dividends according to the old rules.”
Meng Xian continued to ask: "What about the equity ratio? How did 60:40 come about?"
Chu He replied: "The shares of the old pirate naturalization group accounted for 49% of the original Southeast Asian company. We think this proportion is too high in the new company. Although it is a shell company, considering other possibilities in the future,
After research and decision, we will dilute Liu Xiang Group’s shareholding ratio to 40% through virtual capital injection.”
Meng Xian thought to himself: Oh, it’s just a slap on the head. He asked: “Won’t there be a backlash among the group’s personnel if we do this? After all, the policy back then was to be gentle and distant.”
Chu He had fully considered this issue and immediately explained: "No, first of all, they don't understand. How many of these old pirates can read? Who can read financial reports and detect our methods?"
There are not many. The second is that the benefits are not reduced. These people are still paid dividends as usual. Our principle is that their dividends are 'just a lot more' - judging from the dividends in previous years, this number is on the low side, and at worst it is low.
It is to maintain the status quo. The third is to provide a way out. They are now employees of Southeast Asian operating companies. What they do on a daily basis is no different from what they did before. They just changed the brand. The only difference is the annual dividend notice.
Just changed the name. If they want to go to the Senate to develop Nanyang's car and subscribe for stocks."
Meichuan interjected at this time: "I don't think it will affect the understanding of the indigenous people. As long as we don't emphasize the existence of Southeast Asian operations and only talk about Southeast Asian holdings, by the time someone notices the difference, the stock will have been issued long ago."
Ai Zhixin said: "It's better to call one Southeast Asia Development Holding Company and the other Southeast Asia Development and Management Company. Or remove the word "business" from the latter, so that outsiders will think they are the same thing, and then they will find out something is wrong.
You can’t blame anyone else.”
Meng Xian thought that you were talking about it lightly and were playing word games. To put it bluntly, it was the idea of the Senate cheating and then defaulting on the bill. In essence, it is the same thing as saying a plate of shrimps is 9.9 yuan and the checkout person saying that a shrimp is 9.9 yuan.
! The rich people are not fools - everyone who can make a fortune in Guangzhou is a smart person. He will understand your tricks as soon as he thinks about it!
Meng Xian has been engaged in banking in Guangzhou for many years and knows his clients well. Although these financial tricks are very new to people in the 17th century, they are by no means incomprehensible. As long as they find enough information and accumulate time, they can
The secret will soon be revealed. You must know that the underwriter of the stock issuance is Delong, and he is the first person to have a headache if he is confused by the big investors.
Looking around, Meng Xian frowned and said, "Comrade Meng Xian, what do you think? Let's discuss it later."
Meng Xian curled his lips, "Well... I don't have any big objections, but I personally don't agree with this kind of playing with words. In fact, if you don't want big investors to interfere in the business, you should issue preferred shares, and preferred shares have no voting rights.
, is it necessary to set up a holding company?”
Chu He thought to himself that there is no company law now. The Senate can set up a company just as it wants. The natives can't tell whether the Senate is embarrassed or not. There is no need to worry about the big investors. We are not doing stock offerings.
Why does the instruction manual make it so clear? It just says that the Senate wants to regain Southeast Asia. Does it matter whether you support it or not?
The people around were too lazy to argue too much about this issue. They laughed a few times and said perfunctorily: "These questions are very good, very good. We will continue to revise and revise them. When implementing them, we will fully consider the interests of all parties. In short, we cannot make it difficult for everyone."
Do it, hahaha, hahaha."
Fortunately, Meng Xian did not continue to pursue "how to improve", so the matter was ignored.
Ding Ding on the side asked: "The annual interest rate of our bond is 10%, which is much lower than the interest rate on the market. Can these 220,000 bonds be issued?"
Chu He replied: "In terms of the total amount, there is no problem. This time Nanyang Company raised a total of 300,000 yuan from the private sector. The city redemption fee paid for the second counter-encirclement and suppression campaign in Guangzhou was also 300,000 taels. This amount of money is of great significance to Guangzhou."
"For merchants, it's just a drop in the bucket. In terms of interest, according to the investigation report of the finance minister," Chu He nodded to Ai Zhixin.
"The borrowing interest rates among large merchants in Guangzhou generally fluctuate between 25% and 45%. Recently, affected by the epidemic, the interest rates have remained low, basically below 20%. Our first-phase interest rate is 10%.
The private interest rate is not far away, so it should not be difficult to accept. The interest rate Wang Zunde borrowed from Gaoji was only 18%." In fact, the actual interest rate of the loan was about 25%, and 18% was only the nominal interest on paper, but this
Chu He did not explain this to Ding Ding in detail.
Ding Ding continued to ask: "Then the 8% debt issued in the future and the one with lower interest rate should be a little difficult, right?"
The people around them already understood what Ding Ding asked and said, "Of course, the smooth issuance of bonds cannot be achieved without your help. The first is to make the stocks attractive and create a wealth effect. The second is to use publicity.
Everyone, please build up the popularity of Nanyang Company, amplify its appeal, publicize the wealth effect, and attract the attention of large investors. This of course requires the strong assistance of Mr. Ding."
Ding Ding pretended to be reserved and said: "We are not professional in this."
The people around said: "It's okay, we'll help you do it together when the time comes, and everything about the advertising fees can be easily discussed."
At this time, Cheng Dong said again: "You just said that this is going to create a wealth effect. How are you going to do this?"
"This needs to be done in cooperation with the exchange. There is only one stock on the market now, and only 30,000 shares were issued in the first two issues. There is no active trading market at all. It is convenient for us to play the role of market makers and announce the purchase price every day.
, selling price, collect buying and selling orders from veterans, naturalized citizens, and large households, and then settle the orders at the end of the day, match the orders, and then announce the new buying and selling prices the next day. I believe that through publicity
Thanks to our efforts, once Southeast Development is listed, the buying orders should be far greater than the selling orders, so we can take advantage of the situation and raise the stock price. If not, it doesn’t matter. Anyway, the declared quantity and price are not transparent to the outside world, so we only need to artificially raise the price
That's great. Even if the big investors in the directional issuance don't open their eyes and want to sell them all to us, we still have the money from the bond issuance and can get all the money back. Besides, we can also control the transaction volume and raise the actual price. The transaction volume
Not much. In short, as long as the stock price can be raised by 20% in a short period of time, it will be enough to support the issuance of the second and third phases." Ren Youzi explained.
Cheng Dong thought to himself that your plan is for the major shareholders to act as market makers themselves, not only to act as market makers, but also to engage in false transactions to manipulate stock prices. This kind of person is really... worthy of being an important member of the preparatory team of the Canton Stock Exchange. From his heart, he is
It is a pleasure to see large households cutting off leeks to support the construction of the Senate. This is also one of the service purposes of the financial department. But as the head of the financial department, he also bears the responsibility of establishing a good financial order and maintaining the credit of the Senate. If the exchange makes
He is also responsible for the public's anger.
So he thought for a while and said: "As the major shareholder of Southeast Development and also acting as a market maker, it should be illegal for Nanyang Company to do so."
"Yes, this is just a stop-gap measure. The market maker business will definitely be split off in the future," Ren Youzi said immediately.
This statement satisfied Cheng Dong. To be honest, now that the Senate itself is both an athlete and a referee, it is natural to make profits from it, but everything must be done in a certain degree.
Meng Xian said: "The plan you mentioned for matching transactions at the end of the day is actually a call auction every day. Your price only changes once a day, so there is no need to engage a market maker."
"I would like to make a suggestion. It depends on how the trading rules of the Canton Stock Exchange are determined in the future. If there are more people in the future, we can settle twice a day, or multiple times. Real-time settlement is not necessary. There are not so frequent transactions at all. We also
It’s very difficult to deal with.”
"What you do is equivalent to trading on T day and only confirming it on T+1. You also have to play tricks on the price and trading volume. Isn't this forcing others to trade on the black market?" Cheng Dong continued to ask.
There was a cough from everyone around: "The black market is unavoidable. The bearer bonds and stocks we issued in the first two issues already allow large investors to trade with each other. The difficulty of buying stocks through official channels will increase the price of the black market. This will