Those Years When I Was Forced to Top the Forbes List

Chapter 322 Logistics Industry Base
"What are you talking about? I didn't say you could leave!" Leader Huang glared at Chen Xuebing.

Seeing Chen Xuebing's serious expression, his mind raced, and he quickly realized what was going on.

How could someone like Chen Xuebing make such a big decision based on just a few words?
Even when we talked about that license that was so important to him, he didn't react this strongly. If he were that impulsive, he would have been devoured long ago.

There must be a demon in the abnormal situation.

"You're saying you want me to do engineering projects? Have you finished those two water conservancy projects you had on hand?"

Leader Huang smoothly changed the subject, causing Chen Xuebing's newly stirred enthusiasm to pause.

“Those two projects are too small to be worth mentioning. We plan to expand our business scope on a large scale.” Chen Xuebing adjusted his tone.

“That’s a good thing.” Leader Huang suddenly smiled, then said meaningfully, “Local enterprises, especially well-funded local enterprises like yours, are expanding their production scale, which is a great thing for employment. As long as wages are paid on time, we should support them.”

Chen Xuebing's heart sank.

Looks like I'm not so easily fooled anymore.

He pondered for a moment, then adopted a sincere tone: "Leader Huang, I think Gu'an Group should leave Chongqing; it will be beneficial for everyone's work."

"Oh?" Boss Huang walked over to the sofa with his hands behind his back, sat down, crossed his legs, and asked, "Where do you want to go? Beijing, Tianjin, Shanghai, or Shenzhen?"

Chen Xuebing paused, trying to reason with them: "Look, Changzheng Capital's contribution to Chongqing's GDP is limited, and Gu'an Construction hasn't undertaken any major projects. Besides, Chongqing itself is a labor exporting area, and the infrastructure construction teams don't need our company."

"Could it be Hefei? Tell me, which place is pulling you in?" Leader Huang completely ignored the question and continued to guess.

"I feel that as a local company, getting so deeply involved in government affairs will inevitably attract gossip, with people saying that we are too close."

"What exactly were their terms for you?" Leader Huang asked bluntly.

"From another perspective, the participation of external professional organizations can better reflect objectivity and professionalism."

"What conditions do you want? Name your price!" Leader Huang pressed on relentlessly.

“If we relocate to another location, we will retain the Chongqing branch, and all previous cooperation will remain unchanged,” Chen Xuebing proposed.

"We can discuss policies! Including the projects you want, we can arrange them!" Leader Huang promised.

The two of them were talking to themselves, and their speaking speed was getting faster and faster.

"What exactly do you want me to do? Do you want me to deal with another debt package? Fine! Once my debt pressure eases, I'll help you solve it!"

"You're afraid of being called a front man? That's easy! Go build twenty Hope Primary Schools in the Wulong mountain area! I'll arrange for CCTV to report on it!"

Chen Xuebing frowned and raised his voice: "What exactly do you want me to do?"

"What are you planning to do? I already told you! We want you to be our private asset management platform!"

Suddenly, Leader Huang stood up, walked to his desk, picked up a file bag, and slammed it down on the coffee table in front of him!

"Chongqing Western Modern Logistics Industrial Base, Bonded Zone Logistics Park! A 70 billion yuan infrastructure project! How big do you want to build it?!"

Chen Xuebing was stunned.

It wasn't the number 70 billion that startled him, but rather the location of the file folder, which was originally placed in a conspicuous spot on the desk.

Given Huang's status and position, it would be impossible for him to leave such high-level project materials so casually—the fact that they were there implies that they were prepared specifically for him.

More importantly, the project content itself was something he couldn't ignore.

Bonded Logistics Park!

This logistics park was later known as the Bonded Logistics Park of the Chongqing-Xinjiang-Europe Railway!
"The European railway project... has started construction?" Chen Xuebing asked tentatively, his voice carrying a barely perceptible tremor.

The Chongqing-Xinjiang-Europe Railway was first launched in 2011. The first batch of trains departed from Chongqing Tuanjie Village Station to Germany. A "Five Countries, Six Parties Joint Meeting" was held, which led to the establishment of Chongqing Logistics Co., Ltd. by China, Russia, Germany, and Kazakhstan.

This cooperation predates the Belt and Road Initiative, and its cross-country collaborative operation model can be said to have provided a replicable model of transnational cooperation for subsequent initiatives.

Moreover, they were pioneers.

It's important to know that Russia is the gateway to Europe; without passing through Russia, the journey would add two to three thousand kilometers.

Russia wasn't on good terms with China from the beginning, and it hasn't given up on joining NATO yet.

Each EU country has its own customs mechanism.

It was no easy feat for China to finally enter Europe via Kazakhstan, pass through Russia, Belarus, and Poland, and finally reach Central Europe. In the early stages, it was practically the only railway of its kind in Europe.

Moreover, as the Chongqing-Xinjiang-Europe Railway Network has been built and developed, it remains an important part of the Belt and Road Initiative, accounting for about one-third of the total number of China-Europe freight trains nationwide.

Faced with such a national strategic project suddenly appearing before him, he had no choice but to remain calm.

Upon hearing this, Leader Huang's brows furrowed instantly: "European railways? Where did you hear that from?!"

Chen Xuebing remained unfazed: "I've heard about the Western Land-Sea Corridor for a long time, but I thought it was just a utopia. I never expected it to actually come true. Chongqing is setting up a bonded zone for logistics, which is precisely to go abroad! Besides Central Asia, there's Western and Eastern Europe. But Central Asia doesn't have any mature railway lines connecting it, so it has no economic value. Where else can it go?"

Studying geography has always been his hobby. In his previous life, he could talk about a globe with great expertise while chatting and drinking with friends. So, he certainly wouldn't be embarrassed when trying to fool Boss Huang.

Leader Huang scrutinized his young face, and after a long while, slowly nodded.

"It seems your insightful perspective is backed by a solid foundation of knowledge."

Then he slowly said:

"The establishment of this logistics zone was indeed based on this idea, but it's not just about going abroad. The plan is to rely on the Tuanjie Village Railway Container Center Station and Xinglongchang Railway Marshalling Station to position it as a comprehensive logistics hub radiating across the country, with a planned area of ​​33 square kilometers."

"In the 80s, the academic community proposed the concept of the 'Yangtze River Industrial Cluster Belt,' the core of which is transportation. Generation after generation, we started building highways from the provincial and municipal levels, gradually extending them to the counties. Now, we have achieved road access step by step. Next, we will promote trade and industrial agglomeration to provide efficient supply chain support for Chongqing's manufacturing industry. We have air routes, waterways, and railways, and this core railway network is one of them. However, for such a large comprehensive project, the logistics park worth billions is just the tip of the iceberg. To get it off the ground, funding is the biggest obstacle."

“We have tried many methods, including leveraging the power of private capital.”

After saying that, he sighed and said, "I have to admit that your strategic vision is very unique. In the past few months, I have investigated various private financing channels. Apart from banks, your trust license is an extremely important, legal and compliant channel that can leverage a huge amount of private capital to invest in the government."

Upon hearing this, Chen Xuebing immediately understood and shook his head with a light laugh.

"Leader Huang, you probably didn't say that completely. Trusts are also a channel to isolate government political and credit risks."

Investing in strategic projects through private platforms can avoid the challenges posed by administrative directives and also allows the future returns of the investment projects to be converted into current capital.

To put it simply, it's asset securitization.

They initially partnered to build infrastructure, but later turned the fees into investment opportunities.

If the government's partner changes from scattered private investment funds to specific enterprises, then asset securitization becomes a PPP project.

Public, Private, Partnership.

The idea behind this type of project is good; generally, well-demonstrated PPP projects can recoup their costs and make a profit. However, it poses a huge challenge to the government's ability to make timely payments and the company's ability to provide upfront funding, and the actual results are usually not very good.

Of course, according to what Leader Huang said, he did not intend to ask companies to advance the funds.

China is not yet ready to implement PPP. There are few privately-owned construction companies with sufficient resources, and there is a huge gap in funding between the government and enterprises. Leaders have relatively simple ideas, at most asking companies to advance funds for some odd jobs, without considering partnerships.

Leader Huang was somewhat embarrassed when Chen Xuebing pointed out his "risk prevention awareness." "We have no intention of being irresponsible! We're just using this funding channel! Besides, your trust license is currently facing many problems. Once you get involved in this project, it won't just be me helping you, it will be the municipal government helping you! Chongqing will clear away all your troubles in one go!"

Chen Xuebing laughed: "Leader Huang, you're wrong again. Is it just about funding channels? In other words, if other institutions were licensed, could they raise billions for you? If it were that simple, surely Chongqing could find a licensed institution? The reason I'm raising funds for projects is because we use our high returns as the basis for market trust. Conversely, if your investments fail and you can't make payments on time, it means my reputation is bankrupt."

The fact that such a decision was made to him was not without reason. Leader Huang could not have made this decision on his own and told him these things. The reason can only be found by looking up to him.

The idea likely stemmed from the fact that his fund had been snapped up by private investors in Chongqing, reaching its full capacity of 200 investors and raising 20 billion yuan, which attracted the attention of the city.

So now that everyone's paying attention to this level, all those comments about "difficulty in obtaining trust licenses" and "questions raised at government meetings" were just a prelude.

The matter of Tomorrow Group talking to someone is probably not just empty talk from Leader Huang, but whether it can influence Leader Huang's decision-making, who knows.

"Your fund has always operated on a guaranteed return model?" Director Huang suddenly asked.

The so-called rigid redemption means guaranteeing the principal and the return.

Upon hearing this, Chen Xuebing revealed a hint of confidence: "I started out with guaranteed returns and operate on a transparent third-party supervision model. But now, whether or not guaranteed returns are guaranteed, there will be investors. However, even if there are no guaranteed returns, it doesn't mean I don't need to be responsible to my investors."

"No, I'm asking what annualized return your trust product is expected to achieve? Is it based on commissions or a fixed annualized return?"

"It depends on what product is being packaged. For real estate products, the annualized return is fixed at 12%-15%. For securities, the return is variable, starting at 8% and going up to 40%."

"What about a packaging and logistics park? How many sites would you set up? Would anyone be willing to invest?" Leader Huang asked the core question with concern.

Chen Xuebing laughed back: "I never said I was going to do it."

Leader Huang became anxious.

"I'm just doing an assessment! To see if we have the capacity to guarantee repayment! Aren't you worried that we'll use your creditworthiness? Surely our government can step in and guarantee it, right?"

Chen Xuebing's heart skipped a beat, and he asked, "Are you really that determined to do this? How much credit did the bank give you?"

Leader Huang did not answer, but said earnestly, "The municipal government has opened up this level of partner authority to Changzheng Capital. You should know how much protection this background provides for you."

Chen Xuebing insisted, "How much credit did the bank grant you? Why do you insist on doing this?"

After a moment's thought, Leader Huang offered an explanation: "Such railway port comprehensive bonded zone projects are rare across the country. Countless places across the country are queuing up, or even waiting to get on the waiting list. Your participation is a significant milestone for your company."

Chen Xuebing understood.

It turns out the policy was in place.

So, the key question is:

How much credit did the bank grant you?

Three soul-searching questions.

A 70 billion project, and you're not telling me how much I need to raise, but how much I need to raise?
You've saved the money from the bank's credit line, and then you spend it elsewhere. Isn't that just being a scoundrel?

"..." Leader Huang sighed, then said firmly, "30 billion."

"Are you kidding me?" Chen Xuebing stood up as if to leave. "A government project, or even a central government policy project, and private companies have become the major shareholders?"

After thinking about it, I felt a little annoyed and added:

"30 billion, that's probably a credit line from just the China Development Bank, right?"

Leader Huang was startled.

That kid guessed pretty accurately!
The policy funds from the China Development Bank are difficult to access in the city; as for other banks...
Chen Xuebing frowned and reminded him, "Leader Huang, it's already good enough that I can help you get the project off the ground. The city shouldn't even think about making any more money to spend. This money is a loan, and it has to be repaid eventually. Now that you're retired, it'll be the next person in charge who has to pay it back."

Leader Huang's eyes showed a hint of surprise.

The next one?
You seem to think highly of me, kid.

He hesitated for a moment, but still didn't reveal his bottom line in the negotiations: "You just need to help the city raise 40 billion yuan, and the interest rate should be as low as possible, ideally below 10%."

"25 to 30 billion." Chen Xuebing shook his head abruptly, interrupting without further ado, and then began explaining the plan that was gradually piecing together in his mind:

"The preparation period for this project alone will take at least a year. The interest rate is the key. The only investor I can think of who is willing to accept a low interest rate is the social security fund. Fortunately, I have recently made some money for them. Let's wait another two or three months. After the New Year, I will step in and, with the government's guarantee, see if we can get another round of funding with an 8% interest rate through an investment portfolio. For the rest, we can try to get a total interest rate of 10% by combining it with high-interest private funds."

He spoke with great earnestness.

“Leader Huang, I’m not a god. The benchmark lending rate has already been raised to 5.85%. There are plenty of private lenders offering interest rates of tens of percent. No matter how safe the rate is, no one will buy it if it’s below 12 or 13 percent. If the city is thinking that money can be both plentiful and cheap, then that’s just wishful thinking.”

When Leader Huang heard this, he was actually overjoyed.

It really can be 10 points?
Even with policy funds, it would take six percent to keep inflation under control, and he's thinking that 12 percent would be a good result!

"Great!" Leader Huang stood up again, his face beaming with joy, and said without mincing words, "If you can achieve 10%, even if it's just 30 billion, let alone 20 billion, it will be a huge help!"

Chen Xuebing grinned and raised his hand.

"Don't panic, I can't work for nothing. Let me tell you my terms."

As he spoke, he opened his palm and put down his five fingers one by one.

"First, my headquarters is moving, and you can't stop me."

"Secondly, the city needs to help me get the trust license. This time it's not 60% controlling stake, it's 100%."

"Third, we need the approval of a joint venture between Chongqing Jiaotong University and me. Could the city help us with that?"

"Fourth. Fine, let's go with fourth. My construction company needs to be involved in the project construction. It's 70 billion, so I'll give them at least one-fifth, right?"

Leader Huang frowned and raised his hand to adjust his glasses.

"Aren't your conditions a bit too many?"

Chen Xuebing smiled and said, "Is it difficult? Apart from the second point, what has the city contributed? Moreover, I helped solve the license issue with such a large loan package. Besides, how many companies in Chongqing can afford to participate in this project? With Gu'an participating in the project, everything will be inspected according to China Construction's standards. We will never cheat or shirk our responsibilities. To be honest, if I didn't know your financial situation, I wouldn't want to do it at all."

The last sentence, of course, refers to Versailles.

Not doing it?

How could I not do it?

A pioneering project of the Belt and Road Initiative, this is a diplomatic calling card!
Leader Huang knew Chen Xuebing's financial strength, so he had his approval for the project.

But now they were even more reluctant to let Chen Xuebing go.

This matter still needs to be discussed.

and also
"100% equity in the trust? They also have a 5% stake in a foreign bank. Are we going to make things difficult for them?"

Chen Xuebing smiled.

"Alright, we'll keep Barclays Bank, but we'll make it difficult for Tomorrow Holdings."

(End of this chapter)