1988: Back to the human world for a few years

Chapter 481 Second Finance (2)

As the newly appointed deputy squad leader in charge of economy, You Yakun was unwilling to see the city's meager budget being spent on the grand urban construction project right away, but making up for the basic indicators was an organizational instruction and he could not object.

However, seeing Tian Guangyue's unhappy expression, as a work partner, he had to come out to ease the atmosphere, and asked softly: "Boss Yang, I don't quite understand. The development momentum of various places in Dezhou has been very good in the past two years. The municipal enterprises in Dezhou District (formerly DZ City) may not be able to raise enough funds for various reasons;"

"But places like Linyi, Yucheng, Qihe, Pingyuan, and Lingxian are either rich in mineral resources or have seen the emergence of a large number of emerging industries and joint venture projects with the support of drilling companies and Dahua companies... Although local companies vary in size, their operating conditions are generally much better than those in Dezhou District;"

"Although the difference in funding required for the New East District expansion plan and the Old City Street shantytown renovation project is as high as 2.9 million yuan, it is indeed not a small number, but if it is distributed to the thousands of profitable enterprises in various counties and districts, it is not a big burden;"

"Besides, Mr. Yang, you have extensive connections. If Dezhou isn't enough, there are also Lanling, Laiwu, and even Dongying!"

"Since the light and heavy industrial products exchange plan proposed by your company can raise funds from companies and individuals in the Lanling area, then our DZ City infrastructure bonds can also be opened to units and individuals in other areas... With the city as a guarantor and the returns so stable, there must be many units and individuals willing to purchase."

At the end, You Yakun looked at Yang Mo with a puzzled look on his face: "So, I can't figure it out... Mr. Yang, where did you get the idea of ​​fishing in a dry pond?"

This is the embarrassment of the newly promoted prefecture-level cities.

Although after being upgraded to a prefecture-level city, the city should have the authority to provide guidance to the work of various counties and districts, and can even "help" Dezhou Chengchan Fund Company to distribute bonds to the counties in a strong manner.

But theory is theory, and practice is practice.

Anyone who has some understanding of how the system works knows that this is not the way to work.

Even an ordinary county-level city needs three to six months to sort out and coordinate various tasks after a change of leadership, let alone DZ City, whose identity has suddenly changed?
Therefore, as a newly promoted prefecture-level city that has just been promoted for less than half a month, it is not convenient for the city to point fingers at the counties under its jurisdiction. Instead, it needs to use a conciliatory attitude to continuously hold various exchanges and seminars to sort out and maintain the normal operation of routine work in the entire region... As for issuing orders as a direct superior, that will be at least a year later.

Therefore, faced with the huge amount of funds needed for expansion and renovation, and when the city's finances were insufficient, the greatest reliance was not the sudden imposition of a large amount of public power, but Yang Mo, the God of Wealth who had a strong influence and appeal in various places.

………………

Hearing You Yakun implicitly point out the current difficulties in the city and slightly emphasize the words "other areas" and "individual opening", Yang Mo easily understood the other party's attitude.

Sure enough, Old Ye’s opinion was correct. After all, it was a new team and they were not transferred from the same area. You Yakun and Tian Guangyue’s positions were not completely consistent.

However, this did not prevent Yang Mo from answering in a helpless tone: "Mayor You, you are in charge of economic construction. You should know that unless it is for the sake of national justice or there is an instruction from the organization... otherwise, there are people who will do business that will get you a beating, but no one will do business that will lose money!"

"I admit that, because the city government is the guarantor, the bonds issued by urban construction projects are much safer and more stable than other investment methods, and the annualized rate of 15% is already a good return... After all, the interest rate for a five-year fixed deposit in a bank is only 5% nowadays."

"But the question is...if we only consider the interest income, are DZ City's urban construction bonds really attractive?"

Yang Mo flipped the thick notebook in his hand to a certain page, glanced at it, and then read with an expressionless face:
“In 1984, the domestic inflation rate began to fluctuate slightly, rising from 1983% in 1.5 to 2.8%;”

“In 1985, the inflation rate soared rapidly, reaching 9.3% at one go;”

"In 1986, inflation fell slightly back to 6.5 percent,"

“In 1987, inflation increased slightly again, to 7.3%;”

“In 1988, the domestic inflation rate hit a 18.8-year high of %;”

“In 1989, the domestic inflation rate declined slightly, but still remained high at 18%;”

"In 1990, according to the data predicted by the Statistics Bureau, thanks to the efforts of various departments, the domestic inflation rate was effectively controlled and dropped to 3.1% in one go, which was considered to have returned to normal levels, which is what we call the positive inflation level."

Yang Mo looked away from the notebook and calmly said to You Yakun: "Mayor You, although the media has repeatedly emphasized that the country's inflation level has been maintained at a positive and healthy level, and we also believe in this judgment, we all know that it is useless for us to believe it alone. We need others to believe it."

"But the problem is that from 1984 to this year, it has only been seven short years, and almost all business leaders have witnessed the various changes in the past seven years... Let alone those who have experienced it themselves, even if they have not experienced it, looking at the inflation rate curve over the past seven years, how many people dare to bet that the domestic inflation rate will not climb to a high level again in the next five years?"

"Don't forget that the shortest term of the infrastructure bonds issued by DZ City is five years... In the face of a long five years, this year's 3.1% inflation rate and the 3.4% forecast by the Statistics Bureau for next year are not of sufficient reference value at all!"

Talking about his area of ​​expertise, Yang Mo seemed to be back at home, giving people a strong sense of oppression. He habitually tapped the table lightly and said, "I can tell you very clearly that the way to calculate the financial investment income of a manufacturing enterprise and the way to calculate the investment income of idle funds are completely different things."

"If the average domestic inflation rate exceeds 5% during the five-year period of bond repayment, the 13% annual interest on the bonds alone will not be able to cover the comprehensive return on the company's investment funds;"

"And if the average domestic inflation rate exceeds 7% during the five-year period of bond repayment, then from the perspective of the actual comprehensive income of the manufacturing company, this money is equivalent to losing more than half!"

Facing everyone's astonished eyes, Yang Mo's expression was calm and firm: "Don't doubt this number. No one knows better than me the compounding impact of inflation on manufacturing companies, especially those with limited cash flow... And in today's rapidly recovering domestic economy, the series of losses that manufacturing companies may suffer from the loss of opportunity costs, market transfers, third-party borrowing, etc. due to the locking of some funds are much greater than ordinary people think!"

After everyone was stunned and somewhat unconfidently bowed their heads in deep thought, Yang Mo mercilessly dropped a heavy thunder: "Therefore, the urban construction bonds issued by DZ City, for investors, that little interest is not attractive at all... Believe me, today's companies have their own third-party financing channels. If it is just for such a small profit, they can easily earn twice or even three times the interest we give!"

!!!

After these words came out, Tian Guangyue's face became even gloomier, and You Yakun's expression also became a little unnatural: "Boss Yang, since you said that those companies and individuals can easily get two or even three times the interest of ours through third-party channels, is it possible that... urban construction bonds are not attractive to them at all?"

Obviously, Yang Mo's attitude made the other party feel a little unhappy, and he began to criticize the young man.

You Yakun’s current intention is very clear. If urban construction bonds are not attractive to those investors, then what is the meaning of the existence of your Texas Chengchan Fund Company?

Yang Mo shook his head: "No, urban construction bonds are very attractive to investors, especially those with large scale and strong strength."

Just as everyone was surprised by Yang Mo's somewhat contradictory views, Yang Mo changed his tone: "But for investors, the real attraction of urban construction bonds is not the interest, but... the disposal rights of fixed assets and the management rights of public facilities that are distributed in proportion after the completion of the construction project!"

Eh?
Are those things?
Glancing at the surprised faces of the crowd, You Yakun couldn't help but breathe a sigh of relief, then laughed: "Boss Yang, don't be like this next time, just say whatever you want to say. I almost thought that our urban construction bonds could not be sold!"

At this point, he pondered for a moment, glanced at Tian Guangyue who was still silent, and nodded slightly: "Although the distribution of fixed assets after infrastructure construction and the operation and management rights of some public facilities are somewhat sensitive, there is nothing to be afraid of... Since Dezhou has become a pilot site for tax-sharing reform, in order to better promote urban construction and economic development, the city can make appropriate concessions without violating principles!" For a long time, the Qilu region, which was accustomed to state-owned enterprises as the main body of the regional economy, did not fully realize the importance of these things in the upcoming all-round marketization wave.

In this era when government and business are still inseparable, everything is publicly owned and we are all family members. It doesn’t make much difference if I manage it a little more or you manage it a little more… Haven’t there been enough cases of large state-owned enterprises exercising land rights over the years?

Yang Mo looked at You Yakun and everyone else who were completely unprepared, and couldn't help but sigh silently.

It turns out that we are still in the era of crossing the river by feeling the stones, and we are completely ignorant of the dangers underwater.

Quickly suppressing the emotion in his mind, Yang Mo shook his head: "So this is why I said that if our Urban Construction Fund Company releases all the 4.3 million special urban construction funds at this stage, and then helps the city to raise the excess 2.9 million funds, it is undoubtedly a case of drying up the pond to catch fish."

Looking at the people whose faces changed slightly, Yang Mo's tone was extremely cold: "Today's DZ City lacks sufficient and valuable public redemption assets. Even if the city relaxes its policies and opens up a larger proportion of the disposal rights of newly built fixed assets and the management rights of public facilities, it is not very attractive to investors!"

You Yakun was a little annoyed by those unheard names and Yang Mo's twists and turns in his speech, and asked in a deep voice: "Boss Yang, why is this?"

Yang Mo's expression remained unchanged: "The reason is very simple. Investors these days would rather take one million to buy a store in the commercial streets of Shantou and Haikou, and would never use the same one million to buy a building in a county town... no matter how beautiful the building is!"

???

After hearing Yang Mo's straightforward analogy, not only You Yakun, but even the others understood what he meant at once.

Frowning and thinking for a while, You Yakun asked with some reluctance to believe: "Boss Yang, what you mean is... even if we develop the New East District, those investors think that the newly allocated fixed assets there have no value?"

Yang Mo calmly picked up the white porcelain cup on the table and took a sip of tea: "After the new East District is built, a large number of people and nearby enterprises will need to be relocated... Are there any high-value industries in the five towns in the East District today? Are there enough large-scale enterprises?"

You Yakun was immediately stumped by the question.

Today, the five towns in the eastern district cannot be said to be completely agricultural areas, but they also do not have any established industrial industries, let alone the three words "high output value". There are only more than 90 enterprises in total, more than % of which are small and medium-sized township enterprises, and most of the rest are family workshops.

Without a mature industry to support it, how can the New East District quickly attract investment and talent? How can the economy become active?

If the economy is not active, those allocated assets will be worth nothing. Only a fool would value those things which are like wasteland and abandoned houses!

Taking a deep breath, You Yakun loosened his aching hands, with a gentle smile on his face. "We'll discuss the planning and expansion of the New East District later... Since Mr. Yang believes that the urban construction bonds in the New East District are not attractive to investors, then the shantytown renovation project in the old district should be fine, right?"

As if to liven up the atmosphere, You Yakun looked around with a smile, and said in a relaxed and playful tone: "Those four old streets are close to the future city center. When we make the urban planning map of DZ City next year, I believe those urban construction bonds will be sold out... Let alone raising 1.2 million, even raising the 1.5 million funds required for the entire project should not be a difficult task;"

"In this way, the city can save 3000 million in budget... million is a lot of money. Using this million to support other projects in the city can also reduce the pressure on everyone... Don't you agree?"

It has to be said that those who can be sent to take charge of economic work are those who know how to adapt and seize opportunities.

Since Yang Mo pointed out a huge logical loophole in the expansion plan of the New East District, let's just put aside the dispute and finalize the fundraising for the old neighborhood renovation project first.

Since you, General Manager Yang, have turned down the project fundraising work in the five towns of the New East District with an almost direct rejection attitude on the grounds that the actual return rate of the project is low and it is difficult to raise funds, then you can't turn down the fundraising work for the shantytown renovation project in the old neighborhood, right?
It is close to the future city center, so there will be no problem with the actual return on investment.

The most important thing is that if he can save such a huge financial expenditure of 30 million, it will be an irresistible attraction for the various departments that are hungry for food. If he plays this card well, it will be a huge benefit to him.

Hearing that they could potentially save another 30 million in budget, everyone's eyes lit up, and they couldn't help but look at You Yakun and Yang Mo with a hot look in their eyes.

Yang Mo maintained the image of an "outsider" very well, and ignored these inexplicable looks. He just nodded slightly: "If the city intends to raise all the funds needed for the shantytown renovation project in the form of urban construction bonds, and transfer 5% of the total output value of fixed assets and 3% of the public facilities management rights to investors at a very low price of only 1.5 million yuan, as a third-party unit, Dezhou Urban Construction Fund has no objection... But I need an official document from the city."

When You Yakun heard the words "super low price", his face almost turned green.

What do you mean!
What does “selling it to others at an ultra-low price of only 1.5 million yuan” mean?
Are you accusing me of selling assets at a low price?

Also, what does it mean that you need the city to issue you a formal document?
You are acting like you are afraid of being implicated. Are you trying to embarrass me?
Being accused in public with groundless innuendos, even though You Yakun was very good at cultivating his qi, he couldn't help but feel angry. "Boss Yang, please explain clearly. The renovation of the old neighborhood was a decision that Secretary Tian and the team voted through unanimously. I suggested that the project budget be raised in the form of urban construction bonds. This was also in consideration of the city's financial difficulties and the difficulties faced by various departments. 1.5 million yuan is an unbearable amount of money for DZ City today... Why do you say it's a bargain?"

As expected, he is an experienced veteran. As soon as he opened his mouth, he used Tian Guangyue and the class committee group as shields, and implicitly tied the heads of various departments present together.

Yang Mo remained calm: "Mayor You, I know that 1.5 million yuan is a huge sum of money, and I know that the current fiscal budget of Texas is tight, but I think you heard it wrong. I didn't mean to accuse you of selling assets at a low price. I was just stating a fact..."

“Raising funds by issuing all urban construction bonds and maximizing the transfer of inherent assets and public facilities management rights is indeed an extremely unprofitable business... 1.5 million yuan is indeed a super low price!”

At this point, without waiting for You Yakun to continue asking questions, Yang Mo glanced at everyone and said, "Let me explain a little bit here... The four old streets that are being renovated are not just going to be closer to the city center of DZ City in the future. They are also located on the edge of the secondary business district of the Dahua Commercial Demonstration Zone;"

"In the spring of next year, Dahua Company will join hands with five industrial parks and 5 leading units around Dahua Industrial Park to start the second phase of the secondary business district expansion plan. By then, three of the four old streets originally planned for shantytown renovation will be incorporated into the new secondary business district."

After a slight pause, Yang Mo's tone was calm but with a hint of strong confidence: "It will only take two and a half years at most for the newly expanded secondary business district to be completely revitalized. By then, even if the fixed asset property rights of the three old streets are 1%, their asset appraisal value will far exceed 1.5 million!"

! ! ! !
Plans to expand secondary business districts?

Everyone was shocked.

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PS: This is a long chapter of 12 words, which will be posted separately, with another chapter at o'clock in the evening.

On the one hand, I am itching to go fishing for smallmouth bass tomorrow;

On the other hand, it is to prevent you from not seeing it, please forgive me.

(End of this chapter)