My Lord, you need to stand up!

Chapter 327: A Trap and an Opportunity

It's a bombshell.

Not only You Qili, but Director Tang of the Economic Development Zone also rushed over to remind him, followed by Jiang Yong, the deputy director of the Shangzhou Beijiaochang Industrial Park, who all called to communicate.

Banks are collapsing.

The government called for a comprehensive tightening of bank lending.

The company went bankrupt.

Control wages and bonuses!
Real estate companies are facing financial difficulties.

Clean up infrastructure projects.

Imported goods have been compromised.

Strengthen foreign exchange management!

Just six months ago, banks were lending money like crazy, begging and rushing to lend to them, but suddenly they cut off all lending and even started demanding repayment.

Jiang Yong called and said that the three commercial buildings were financed by three different banks, and now one of them had actually come to their door demanding repayment!

They completely disregarded the previously signed monthly loan repayment agreement and whether they had been making timely repayments over the past few months; they simply demanded that the hundreds of thousands of yuan they had previously borrowed be returned!
This is utterly ridiculous.

Clearly, they're recklessly trying to fill the huge hole left by their previous rampant lending.

Typical policy interventions result in the government intensifying its control measures when loosening them, but then ignoring the consequences when tightening them.

Director Tang made it even more serious.

The land for the urban construction company has indeed been approved, but the construction project is being held back from approval. They need to finish the projects they have on hand first and wait for things to calm down.

Now, other major businesses in the Economic Development Zone that have substantial loans have all immediately ceased operations.

The key issue is that the new policy requires the rectification and cleanup of "shell companies," which will inevitably target private enterprises.

It has already started in some places.

He came over to reassure Wei Dong, patting his chest and guaranteeing that the Economic Development Zone would never do such a thing.

But the more he said that, the more dangerous everyone looked at him.

The Hong Kong business representatives were all uneasy and wanted to leave!

This made Wei Dong's expression twitch.

Did this boomerang hit me?

Around New Year's Day, when the bank was pushing him to take out a loan for those three residential buildings under construction in Shangzhou before the end of the year, he felt something was off.

It's not that this approach is particularly wrong; that's none of his business. He's not a disciplinary inspection department, much less a financial regulatory body.

If even a small bank in a prefecture-level city like Shangzhou can do this, then there are countless similar practices across the country.

There's a saying that even the flapping of a butterfly's wings can turn into a storm. Now, banks all over the country are doing this, and the consequences are unimaginable.

He even complained about it to the real estate experts who had come from Beijing to observe the situation.

After New Year's Day, they immediately agreed to pay off the forced loan by adding some interest.

Now, three months have passed, and the guillotine has been brought down.

But this sweeping action left too deep a mark, even affecting a perfectly healthy company like his.

Private enterprises are just getting started with great difficulty, and the consequences of this crackdown are predictable.

Indeed, a large number of shell companies have been involved in this wave of illegal activities.

However, a blanket ban without any screening will inevitably lead to the collapse of many honest businessmen who were lured into taking out loans to expand their businesses, only to have them suddenly withdrawn.

Yu Qili is like that.

He briefly described over the phone how he had taken out more than five million yuan in loans in the past few months and opened more than thirty companies!
This is absolutely catastrophic!

Everyone in the conference room watched Wei Dong make the call with a slightly tense expression, noticing his complicated demeanor.

It was only when Qin Yuye quietly kicked Rang Weidong's foot that he snapped out of his daze and managed to regain his composure, which was almost nonexistent.

Over the phone, he instructed Jiang Yong to learn how to deal with the bank's haphazard and irresponsible behavior.

A few hundred thousand is a small matter; we can't encourage this unhealthy trend of not following the rules. Let's just drag it out.

If there's a problem, you can call and fill it out as a last resort, but it'll be troublesome if the other two companies also come to collect their debts.

It's just annoying, not threatening.

Jiang Yongcai, who has a background in taxation, calmly agreed and said he would try to face it himself.

After hanging up the phone, Wei Dong described the situation: "Well, we've learned our lesson. In our project in Shangzhou, we emphasized from the beginning that we should try to avoid taking out loans. We only slightly tried to help homebuyers secure loans, and when policy fluctuations occurred, it immediately caused an uproar. Ah Ming, you and Wu Shengyun are both very smart businessmen, but when doing business in the mainland, you must take policy factors into account. Completely avoiding them is impossible, and relying on them completely is even more dangerous. Finding the right balance is very important."

He even said something quite insightful: "Especially during times of volatility, desperately trying to rely on someone to escape the situation will only make things worse."

Many private enterprises are caught in this sieve-like situation, either being eliminated or choosing to survive by relying on others.

In the end, it all vanished into nothingness.

Chi Shiming, who had just proposed to take out a loan to complete the real estate project for more than 3,000 urban construction companies, was sweating profusely.

If he really gets on this train, the real estate funds he has painstakingly accumulated over the years will vanish in an instant.

Old Geng now likes to wear denim work clothes with the words "Jiangzhou Urban Construction" on the back.

He tried his best to understand the situation, but remained silent. Several Hong Kong business representatives also attended the regular work meeting, and Qin Yuye had to act as their translator to find out what was going on.

The main thing was to observe Wei Dong's expression. If he seemed stable, they would quickly whisper among themselves and have a private meeting.

Qin Yuye listened with sparkling eyes.

Just then, Manager Zhang called, saying that his connections had received information that Wei Dong and his team's visa application process for their trip to Japan had been put on hold.

Because almost all overseas inspection trips now involve importing foreign equipment, which is also a major area of ​​concern for foreign exchange management.

This made Wei Dong laugh out loud: "This is too much of a case of collateral damage. Remember that, everyone."

The expansion efforts were difficult to implement, but the tightening of restrictions came quite quickly.

He put away the doodles on the rooftop garden on the table and got up. Only Qin Yuye would ask, "Where are you going?"

Wei Dong laughed: "This guy over here opened more than 30 companies in less than half a year, all of which were started with bank loans. They're bound to be left to languish. I'll go see if there's anything I can snag."

Qin Yuye has already received hundreds of thousands of yuan in profit this month, and the 18-year-old girl is quite excited about her successful "entrepreneurial" venture: "I'll go with you to pick them up!"

Upon hearing this, the Hong Kong business representative immediately encouraged them: "Yes, yes, yes, we have no problem with funding, we'll come! Young Master Dong, this is definitely a great opportunity, we fully support you in buying at the bottom!"

Wei Dong had only said it casually, but You Qili's ability to expand territory was indeed very strong. He had followed behind and taken advantage of the situation several times. Now, he was just going to check it out out of habit.

Hearing this, I suddenly realized something.

Surprisingly, this is common practice in the business world in economically developed Hong Kong.

Opportunities are everywhere. At any time, some people fall, while others seize the opportunity to buy at the bottom and make a fortune.

Such policy fluctuations are indeed a guillotine, but in the eyes of experts, they are just another opportunity to fleece ordinary investors.

Thirty or forty years later, people often say that the 1980s were the golden age for making money.

If one didn't have his precognitive abilities and clairvoyance to truly experience that era, being in it would have been incredibly dangerous. What later generations would see are only the successful and lucky ones; the vast majority of the dregs would have been silently crushed and forgotten.

Forget about the Hong Kong business team; at this point, they felt like arrogant landlords collecting debts, so we didn't bring them.

Wei Dong also didn't want them to get too involved in mainland projects at this time. Given Hong Kong's current advantageous position, helping them would be like acting as compradors and traitors, selling off their assets.

Qin Yuye, the white-haired woman, didn't need to follow along: "You should focus on increasing production capacity and helping Uncle Heng and his factories start operations as soon as possible. Cash flow is the most important thing right now."

The garment factory's help to him was obvious.

The sanitary napkin factory earns over a million yuan a day, and its gross profit of around 200,000 yuan is already nearing its limit. Moreover, the repayment from the supply and marketing cooperative has a cycle, and the repayment from branches in different regions is also inconsistent.

Cameras have even lower production limits, and radios, SOD honey, and even cooked foods are all limited by production capacity.

Only after jeans entered the market did they quickly rise to second place internally, selling well and generating quick returns, while production capacity could be significantly increased.

If we can get all four of these garment factories up and running, we'll have a huge amount of room to adjust production capacity internally. We can favor whichever type of garment sells well, and if the market falters, we can shift to other products.

The clothing industry was definitely a more reliable and legitimate business than real estate in the 1980s.

Qin Yuye wouldn't argue; he listened attentively and said yes.

Chi Shiming and Lao Geng were both going to the zoo, so they hitched a ride with Rang Weidong and chatted for a bit.

Director Tang also got out of the car and went back to his office in the Economic Development Zone, which was two or three kilometers away. At his level, he was not yet entitled to a car.

He reminded them that a regulation had been issued before the Spring Festival, strictly prohibiting government agencies and officials at all levels from engaging in business or running enterprises. At that time, not many people paid attention to it and thought it was just a routine policy that didn't really matter.

However, the measures gradually became stricter starting in March, and now that the first quarter is nearing its end, some places are investigating the dereliction of duty by those involved in lending, which is why the measures have suddenly become swift and decisive. Fortunately, you don't have many loans.

The three of them, Wei Dong and Wei Dong, had completely different levels of comprehension.

Director Tang offered this friendly reminder out of a sense of shared responsibility.

After he got out of the car, Lao Geng frowned and didn't say anything. He must have felt that there was indeed a lot of work to be done in the outside world, but there were also more complex situations to consider.

Wei Dong lamented that this kind of management was such that if the higher-ups loosened their grip by an inch, the lower-ups would slip away a foot; and if the higher-ups wanted to tighten their grip by a foot, the lower-ups would tighten it by a mile.

Having received education in mainland China and been influenced by Hong Kong, Chi Shiming pondered with his head down: "Does what Lao Tang said... mean that there will be a wave of layoffs in companies and enterprises in Jiangzhou, and we can buy at the bottom?"

Wei Dongcai was reminded: "Oh, oh, oh, that's for sure!"

So this is the difference in personality and talent; some people are indeed better at seizing opportunities.

The insights and feelings gleaned from just a few words can all be interpreted differently.

But Wei Dong's "experience" is the most valuable: "But think about it the other way around. If we were to take over these companies that are being liquidated, would the people willingly give them up? And what would they do next?"

He had seen a lot in Shangzhou over the decades.

Chi Shiming was immediately alarmed. He was intelligent and insightful, and he could react quickly with just a little prompting: "This is a mess. They'll either be holding shares openly or secretly, or they'll be jealous and make things difficult for you. You can't take this easy money; you'll immediately fall into the kind of corrupt business situation you described."

Wei Dong was extremely satisfied. They were both smart people; Old You, who was over forty, and Jin Zhuoqun, who was in his thirties, would not listen to his advice at all.

But Chi Shih-ming was able to absorb and listen, and immediately gave him a high five with a big smile.

The feeling of defeating a layer of inner demons is similar to winning a battle.

Old Geng, watching from the side, also showed a rare smile.

They willingly handed over all these complicated calculations to these two young people to handle.

So there's a reason why some people can walk together for a long time.

(End of this chapter)