Rebirth of financial migrant workers

Chapter 319 Imperial Capital Luoma Investment Co., Ltd.
Because of different national conditions, the development of Huaguo's financial industry has its own characteristics, which is quite different from traditional financial markets such as Europe and the United States.

Many of these professional terms also have different meanings, which also makes non-financial practitioners somewhat confused.

Simply put, what you think may not be 'what you think'.

For example, people often hear the term "investment bank", but in fact this is a European and American term.

In the Flower Country, there is no financial institution such as an investment bank.

What people call investment banks actually refers to local securities companies (brokerages) in Huaguo. They specialize in traditional core investment banking businesses, such as IPOs, refinancing, mergers and acquisitions of listed companies, and so on.

So what are the investment banking departments of the commercial banks in Huaguo doing?

They focus on less core investment banking businesses, such as bond underwriting, mergers and acquisitions, financial consulting, etc.

In a word, the investment banking departments of state-owned commercial banks mainly deal with debt, the investment banking departments of city commercial banks mainly deal with non-standard products, and the investment banking departments of securities firms mainly deal with equity.

Then someone may ask again, why don’t banks’ investment banking departments make equity investments?

If you delve deeper into its ownership structure, it is not difficult to find that this company is the subsidiary company of Mule Bank.

In recent years, policies restricting banks from making equity investments have been loosened.

Because of the restrictions in Article 43 of the "Commercial Banking Law"!
The legislative purpose of this article is to establish a separate operation system for financial institutions to avoid mixed operations and financial capital over-controlling the real economy and causing fluctuations in the economic system.

After Ning Minghao actually took power, he raised this matter to a strategic level.

In this matter, the first to take advantage of the situation was China Construction Bank, which was the first to establish Jianxin Equity Investment Management Co., Ltd.

There are rumors that the country will allow qualified banks to set up subsidiaries to engage in equity investment in technological innovation and entrepreneurship.

Although Mule Bank did not take the first bite of meat, they were unwilling to be left behind and started planning not long after the news spread.

Commercial banks began to turn their attention to the equity investment market, and one by one they became ready to make moves.

Initially, some commercial banks used their own funds to make equity investments through other alternative methods, such as the channel model, in which commercial banks invest in target companies through trust plans, asset management plans, private equity funds and other channels.

After hearing the news, the first bank to take action can eat a mouthful of meat, and the second one to take action can have a mouthful of soup.

Naturally, the top management of Huaguo will not turn a blind eye to the bank's needs.

However, when regulatory policies emphasize de-channelization and penetration of supervision, and the final source of funds after penetration is the commercial bank's own funds, the bank will eventually face the risk of being punished.

In early 2010, Didu Luoma Investment Co., Ltd. was officially established.

It is also an important part of Ning Minghao's establishment of the Mule Group.

However, as time enters 2009, banks' traditional credit business profits continue to decrease, the pressure on the loan-to-deposit ratio continues to rise, and the regulatory intensity of on-balance sheet credit is exaggerated year by year.

Unlike most other commercial banks that have established subsidiaries or subsidiaries to engage in PE business (private equity investment), Didu Luoma Investment Co., Ltd. focuses on VC business (venture capital).

You can't even outrun the supervision, and you can't even keep up with the heat when eating shit.

Those who only thought of reaching out after seeing everyone taking action would not only not be able to drink the soup, but would also have their necks stuck by the new regulations issued by the supervisor.

However, bank VCs have significantly lower risk preferences than other VCs, so the company does not invest in seed rounds and angel rounds for start-up companies, and only invests in AB rounds when late-stage products have a certain scale.

After the start-up company is relatively mature, the invested capital will be converted from equity form into capital form through the market exit mechanism to recover the investment.

In the process, an 'investment-loan linkage' is formed, thereby maximizing returns for shareholders of Mule Bank. Ning Minghao's special car has been parked in the small square in front of the building for a while.

Wang Chunliang in the car listened to Ning Minghao's explanation in confusion, but his mind was still filled with questions.

"That, Uncle Ning"

Ning Minghao's face darkened:
"Please call my job title during working hours."

"Chairman Ning, may I ask why you arranged for me to come here? I have never been in contact with a VC. And don't VCs generally not recruit laypeople?"

Faced with Wang Chunliang's doubts, Ning Minghao smiled:
"The trouble you caused yourself has alarmed all the directors in the bank, and they have great opinions on you.

If you are just transferred within the industry, it will be difficult to silence them.

Didu Luoma Investment Co., Ltd. is the subsidiary company of Mule Bank. If you are transferred to the subsidiary company as a punishment, I believe they will not have any objections. "

Wang Chunliang did not agree with this reason. His prospective father-in-law was the chairman of the board. How could he treat his prospective son-in-law like this because of the attitude of the directors.

Impossible, absolutely impossible.

Seeing the noncommittal expression on the other party's face, Ning Minghao grinned even wider:
"Haha, I'm not kidding you anymore. What I just said was just to deceive others. The reason why I transferred you here is to prepare you to be promoted faster. I don't want you to be just a little girl when you marry Ning Ning. The branch president or branch department manager.”

Wang Chunliang raised his eyebrows, feeling that his father-in-law was trying to make a bigger picture.

"Do you know the fastest way to get promoted in a bank?"

Wang Chunliang blurted out:

"Close to the chairman's lap and go through the back door!"

Seeing Ning Minghao's face turn ugly, Wang Chunliang quickly sat upright and listened carefully.

"Similar to officials, if you want to climb fast, you have to be constantly transferred. For example, transfer from branch to branch, and then back to the branch to be promoted to president."

Ning Minghao paused for a moment, and seeing that Wang Chunliang showed no objection, he continued, "Didu Luoma Investment Co., Ltd. is a platform and the starting point for your next promotion."

“But why does it have to be an investment company?”

"Because our head office of Mule Bank plans to establish an investment banking department in 2012-2013, and I want you to run for the manager of this department. Originally, I planned to discuss it with President Sun of China Construction Bank and second you to the investment bank of their head office. I will study for two or three years, but I can only settle for the next best thing and put you in the Imperial Capital Luoma Investment Co., Ltd. to earn some qualifications."

"Uncle Ning, there are some differences in the business between VC and the investment banking department of a bank."

Ning Minghao waved his hand:

"Probably there are similarities. What's more important is performance. Didu Luoma Investment Co., Ltd. will be the focus of our resource allocation in the future. It can be said that you come here to earn performance while lying down."

In fact, there was another thing Ning Minghao didn't say. He was really afraid of Wang Chunliang, who liked to cause trouble.

In just ten months, this guy got into big trouble frequently.

He had offended the Golden R Office, offended the Bank Management Center, and even got involved in a kidnapping case with his daughter.

Ning Minghao felt that he could no longer let this brat continue to dominate in the bank where he was proficient in business. He had to find a place outside for him to sharpen his temper.

Didu Luoma Investment Co., Ltd., a small grand company that has just started, is a perfect fit.

(End of this chapter)