Coquettish Rebirth

In 2004 and 2005, the unlucky things of foreign companies in China continued. I don’t know if God is punishing them somewhere. It’s only been a few months in 06?The matter of this foreign company came out again - the British Food Standards Agency urgently ordered major supermarkets and stores to recall 359 brands of food, including Heinz and Unilever, which were suspected to contain the carcinogenic pigment Sudan Red No. 30.The General Administration of Quality Supervision, Inspection and Quarantine of China immediately issued an urgent notice, requiring local quality inspection departments to strengthen the inspection and supervision of foods containing Sudan Red No. The product was destroyed in public!

On March 3, the media revealed that KFC's seasoning was also found to contain Sudan red ingredients, and all KFC restaurants in China stopped selling it.KFC is the most successful multinational fast food company in the Chinese market. Since it entered China in 16, it has successively opened 1987 chain stores in various cities. Its most loyal consumers are children and teenagers.Therefore, the discovery of carcinogenic ingredients in KFC seasoning immediately caused panic and sensation. The "Sudan red incident" became a topic of national concern for a while, which aroused the public's attention to food safety, and at the same time caused people to have doubts about the multinational brand that they have always admired. On March 1100, the People’s Daily, which has always been cautious, questioned in a commentary, “It’s intriguing why KFC only has Sudan Red in China. Could it be that naive Uncle Sam thinks we are a ‘safe island’ for Sudan Red? ?” On March 3, more than 31 employees of Toshiba Luda Co., Ltd. went on strike. "Rectification Notice".However, in order not to reduce production capacity, Toshiba increased the speed of the production line, compressing each workflow from 3 seconds to 27 seconds.Although the working hours are shortened, the labor intensity is increased accordingly.And after "cancel" overtime.Employee salaries are reduced. On the 500th, some employees protested with a strike, and the Japanese managers immediately announced the dismissal of the participants.This move angered all Chinese workers. After 36 hours, the whole plant shut down.The strike alarmed the local government, finally.The Japanese side compromised and agreed to increase wages by 20 yuan per month, reward each employee with 14 yuan during the factory celebration, and workers resume work.

On the other hand, the situation of China's local large enterprises is also constantly changing.After China Petroleum and Sinopec and other companies went public one after another, China Mobile also went public in Hong Kong, and then the financial sector is gradually being liberalized.China's marketization of state-owned banks actually began at the end of the 20th century. 1998.The Ministry of Finance issued 2700 billion yuan of special treasury bonds to inject capital into the four major state-owned commercial banks, including Bank of China, Construction Bank, Industrial and Commercial Bank of China, and Bank of Communications; in 1999, the four major banks were allowed to divest 1.4 trillion yuan of non-performing assets.In fact, it is estimated that 90% of the non-performing assets of these four major banks are loans to various state-owned enterprises, and then the state-owned enterprises still have to borrow money if they cannot pay the money!However, the first "blood injection" and divestiture did not fundamentally improve the operation and capital status of these banks.Until 2002, ICBC, which later became the largest bank in the world, still admitted in its annual report that the capital adequacy ratio was 5.54%, the total non-performing assets were 7598 billion yuan, and the owner's equity was only 1782 billion yuan.According to the agreement of to.China will fully open the RMB business in 2006, so the completion of the bank reform has entered the countdown.So, in December 2003.The central government decided to use 12 billion US dollars of foreign exchange reserves to inject capital into Bank of China and Construction Bank. In 450, it used 2005 billion US dollars of national foreign exchange reserves to inject capital into Industrial and Commercial Bank of China.It is precisely because of the huge input of such powerful national resources that the four major banks have suddenly become extremely beautiful. Their Tier 150 capital adequacy ratios have all reached or exceeded 8%, and their non-performing loan ratios have dropped significantly to below 5%. The burden has been basically wiped out, and the quality of the balance sheet has improved significantly.

Next, the four big banks that became "beautiful girls" went out to "road show" one after another, and began to look for international strategic investors.After the asset restructuring, it is ready to seek listing.Therefore, 2006 and the following year 2007 will be China's "bank listing year".Almost all important banks were listed during this period.Those international financial institutions that took the lead have profited astonishingly from it, forming a "In the Mood for Love" that will never be seen in a lifetime and cannot be replicated.For such a thing.Huaxia Hi-Tech is of course impossible to miss.Everyone knows that Huaxia Hi-Tech has a lot of money, and the North American branch of Huaxia Hi-Tech, or Sherlock Holmes, the profits that have to be handed over every year are not RMB, but US dollars!In the end, the U.S. dollar has to settle foreign exchange with the relevant department and then exchange it back into RMB. Is this troublesome?So in fact, in many cases, the foreign currency held by Huaxia Hi-Tech is directly stored overseas in the name of Holmes Company!For example, the overseas dividends of Sinopec and PetroChina all went directly to Holmes' account!

Can these banks not come to Huaxia Hi-Tech?After all, Huaxia Hi-Tech is a Chinese company, so they are easier to talk to than foreigners, right?Foreigners are here to discuss business, so there is no sympathy for them, but Huaxia Hi-Tech... this half of us!You can talk about affection!Therefore, Bank of Communications, which is about to be listed in Hong Kong and Hong Kong in May, hooked up with Huaxia Hi-Tech first. As a result, Huaxia Hi-Tech spent 5 billion Hong Kong dollars to purchase 144.61 billion shares of Bank of Communications, owning 91.15% ​​of the shares, at 19.9 yuan per share.Although such a thing was run by Jia Gang, Jia Hongjian was confident—he remembered that in the middle of 1.86, that is, one year later, the share price of the Bank of Communications could rise to 07 Hong Kong dollars. That is to say, within one year, Huaxia Hi-Tech can borrow such an investment and make a net profit of more than 10 billion yuan!

And in 2007, it is said that the Bank of Communications will issue A-shares in Shanghai, and Huaxia Hi-Tech will definitely go in and "help"!This is another lucrative deal!It is estimated that the return of 6 times a year cannot escape!And in June, the Bank of China will also be listed in Hong Kong and Hong Kong. Huaxia Hi-Tech promised to buy nearly 6% of the stock price for US$51.75 billion, and the purchase price was 20 yuan per share. I found out that there is no such thing. Huaxia Hi-Tech basically buys about 1.22% of the shares. Even a little higher!Based on Jia Hongjian’s memory and the intraday price in September 20, the market capitalization of Bank of China reached as high as 2007 billion yuan, and Huaxia Hi-Tech could make a net profit of 9 billion yuan, an investment return of 2335 times!And ICBC will also be listed in October!Huaxia Hi-Tech has already negotiated a plan to invest in ICBC for US$1932 billion, acquiring about 4.8% of ICBC's shares at a price of about 10 yuan per share.And if Jia Hongjian remembers correctly, based on the intraday price in August 75.6, the market value of ICBC reached as high as 20 billion yuan!In other words, this Huaxia Hi-Tech will receive 1.16 billion yuan!In less than one year, the investment income is 2007 times!

Also listed in October was CCB. Huaxia Hi-Tech paid less this time, and received 10 billion U.S. dollars in private placements, accounting for 39.66% of CCB's total share capital, priced at about HK$14.1 per share.The issue price of CCB's listing was HK$0.94 million.Jia Hongjian predicted that by September 2.35, when CCB returned to the domestic A-share market, the market value of the equity held by Huaxia Hi-Tech should reach nearly 2007 billion yuan, with a total profit of more than 9 billion yuan.In addition to the above-mentioned four major state-owned banks, the recapitalization of medium-sized banks is also the same.Also in this year, Industrial Bank announced a directional sale of 3000 billion yuan to Huaxia Hi-Tech, at a price of 2600 yuan per share.It is estimated that Huaxia Hi-Tech can make a net profit of about 27 billion.

The Chinese government's major overhaul of the vast state-owned commercial banking system is seen as "adopting a completely new approach and approach to reform that has never been tried before," and like all previous reforms, it cites diametrically opposed arguments.Some experts expressed strong doubts, believing that this model of bank reconstruction has many suspicions, such as "using national wealth to bathe commercial banks", "state-owned banks being sold at a low price", "introducing strategic investors and refusing domestic capital to enter".However, all the banks that have introduced international capital all agree that "after the successful introduction of international strategic investors, the governance structure has been greatly strengthened, making it truly a modern commercial bank with international competitiveness."…

At the beginning of the year, Hu Zuliu, the managing director of Goldman Sachs Group and an economist, personally participated in the debate.He wrote in the "Economic Observer" that "international strategic investors have brought obvious short-term benefits to Chinese banks, and potential 'value-added' effects in the medium and long term, so strategic investors share Part of the future 'premium' is a reasonable 'fair sale', and there is no such thing as a 'cheap sale' of state-owned assets." In response to the question of "not open to private capital", Hu Zuliu's response was even more direct: "China has HSBC, Citigroup Or Goldman Sachs, a private investor with international experience and reputation?" Therefore, "these institutions have obvious advantages, they can directly bring the product technology and management experience of commercial banks, and they also conform to the traditional Chinese culture's concept of 'good match'" .He also wrote in a very relaxed tone, "Actually, as long as the two parties are mutually satisfied and have a happy cooperation, the value of the company can be added in the end, so why judge and interfere with the investors' choices?"

The basis of Hu Zuliu's argument is "exchanging equity for experience", which is quite similar to the argument of "exchanging market for technology" back then.Over the past 20 years, whenever reforms have reached a crossroads, the "monster of ownership" lurking deep in the logic of China's economic reforms will inevitably appear like a ghost, and people have repeatedly swayed between efficiency and In the debate of fairness, breakthrough and cost, creation and distribution.

It can be said that 2006 was a year in which Huaxia Hi-Tech made rapid progress!