Those Years When I Was Forced to Top the Forbes List

Chapter 335 Building momentum
The game was played quickly, but it still took almost three hours to reach the 18th hole.

Chen Xuebing and Ye Yuanxi started by discussing commercial paper, then moved on to corporate bonds, and eventually to real estate.

Commercial bills are different from corporate bonds.

Commercial bills are freely issued and freely transferred without any conditions required. Enterprises can decide for themselves and issue them in accordance with the "Negotiable Instruments Law". Basically, they are a certificate for the extension of payment and are divided into interest-free and interest-bearing commercial bills.

Corporate bonds are a type of debt financing channel. They must be issued in accordance with the "Interim Regulations on the Administration of Corporate Bonds," which requires evaluation and review, making the process more complicated. They must also meet market interest rates, but they can be subscribed to and traded on the secondary market.

As is well known, during a real estate upswing, the profit margin in the real estate market can reach as high as 1000%.

10 times.

Behind this seemingly frenzied expansion lies a boundless market capacity, a wide variety of financing methods, and an unimaginable, extreme land acquisition strategy.

With a principal of two yuan, you can borrow/finance three yuan, and then, with five yuan, you can obtain land worth twenty-five yuan through a 20% land deposit. After pledging the land as collateral, you repay the government.

Is this over?
No.

This operation can be carried out twice a year through pre-sale of off-plan properties.

With an initial investment of two dollars, the final market involved over two hundred dollars. The developer earned forty dollars, taking half of it, while the remaining half covered the cost of setting up the game.

This is essentially a super land rent that saves the labor surplus accumulation period and even the building period.

To put it bluntly, it's like kneading dough.

More people mean more houses, more houses mean more people, and with occasional emotional intervention as the yeast, the loan system can be expanded through increased money supply. As long as this dough doesn't exceed the total loan capacity, it can keep being kneaded indefinitely. Both buyers and sellers benefit, while those who haven't yet bought a house are the ones complaining.

"Mr. Chen, you understand this so deeply, when do you think this game will finally end?"

Ye Yuanxi had firmly established his lead by the end, reaching 74 strokes after 18 holes, while Chen Xuebing trailed behind with 77 strokes, making it impossible for him to overtake Ye.

However, Ye Yuanxi's attitude was one of seeking advice, which was a step below Chen Xuebing's.

The two girls behind them followed them all the way, their attention shifting from the two men's ball skills to the intellectual content of their conversation.

"boom."

Chen Xuebing delivered a good opening statement, saying with satisfaction, "It's still early. Behind this game is the repricing of China's core assets. For a long time to come, real estate will continue to serve as the anchor for monetary expansion. The essence of economic growth in this world is reasonable inflation. For Chinese value to grow along with Chinese manufacturing, there must be a pricing tool. This tool must have a certain capacity; otherwise, if too much money is issued, it will cause excessive inflation. Therefore, this tool is either the housing market or the stock market. Currently, the overall competitiveness of our listed companies is not enough to support several times the reasonable appreciation. Before the stock market can take over the baton, land appreciation is the fastest path."

The relationship between the economy, currency, exchange rates, and interest rates is complex.

The economy needs a lot of money to thrive.

Where money flows, opportunities lie; capital never sleeps.

In recent years, China's trade surplus has continued to expand, and a large amount of international hot money has also flowed into China, an emerging market. This is a good thing, indicating that my country has the capital to expand its share of the international economy.

However, China's currency issuance is based on foreign exchange reserves. When more money comes in from abroad, RMB has to be printed to exchange for foreign exchange.

Otherwise, as the demand for RMB increases and the exchange rate rises sharply, Chinese manufacturers will earn foreign currency from exports but receive less money back in exchange, which will relatively increase costs and be detrimental to the development of China's foreign trade industry.

The central bank's core task is to stabilize the exchange rate. Too high is unacceptable, and too low is also unacceptable. The goal is to stabilize it so that everyone can gradually adjust trade contracts and make business easier.

However, while printing RMB temporarily stabilizes the exchange rate, foreign exchange is fluid; what comes in will also go out. The newly issued currency will eventually lead to excess liquidity, and excess liquidity needs a place to go in order to stabilize prices. Real estate, as a pool of funds to absorb excess capital, objectively alleviates the pressure of overall price increases.

This gradual increase can bring Chinese land to its proper value, preventing it from being cheaply acquired by foreign speculative capital during rapid development, while also leading to credit expansion.

This is the repricing of core assets.

From a local perspective, the tax reform that began in 94 and the fiscal game between the central and local governments led to the beginning of land finance, and local governments also urgently needed land appreciation to increase their disposable fiscal funds.

Banks also want to grow.

There is a need in all aspects, and there are many promoters.

Of course, playing this game is risky. An overheated market is not so easy to stop, and the risks have been revealed one by one in later generations.

However, this strategy is still necessary at present. China's GDP is still fourth in the world, which is far from the position it should be in. Therefore, although the country is gradually tightening the reins, it has not tightened them too much.

Chen Xuebing spoke simply, yet he possessed a clear short-, medium-, and long-term understanding of the future economy.

The real estate sector can continue until 2015.

Infrastructure construction should continue, but it should become increasingly high-end, technology-driven, and take advantage of the Belt and Road Initiative to expand globally.

However, the rudimentary knowledge that Chen Xuebing revealed was enough to impress Ye Yuanxi. It turned out that top businessmen thought about problems in such a macro way.

There has been a misunderstanding, a real misunderstanding.

"So, Mr. Chen, what do you think will be the anchor for the RMB after the real estate market? The stock market?"

Inspired, President Ye began to think more deeply about the issues and was eager to gain insight into the thoughts of the great man.

Chen Xuebing smiled and succinctly but precisely revealed: "The future monetary anchor will inevitably be diversified, and the basis for the central bank to issue currency will no longer be passive issuance based on foreign exchange reserves, but rather a proactive tool. The West already has this tool: government bonds. I guess the future investment direction of government bonds will be the direction of fresh capital."

Focusing on government bonds was his stock trading secret before his rebirth. Of course, in addition to investment direction, there was also the draining effect on the stock market brought about by the concentrated issuance of government bonds.

As a highly proactive regulatory tool, government bonds will have an increasingly significant economic effect after 2024.

The market-based operation mechanism for national debt is probably the final step for my country to learn from the economic systems of the United States and the West.

I've learned everything I need to know. From now on, I'll have to figure things out on my own and forge a path that others will follow in my footsteps.

Digital assets, carbon credits (for emission reduction or spending money), and securities-insurance swap facilities (for converting dead securities into liquid funds from the central bank) are all new directions.

"Government bonds." Ye Yuanxi suddenly realized: "The last time government bonds were issued was ten years ago, wasn't it?"

Chen Xuebing nodded: "The financial crisis in 97 led to insufficient capital for the four major banks. In 98, 2700 billion yuan was issued to replenish their capital. The next one will come soon. The Ministry of Finance announced that the first batch of certificate-type treasury bonds will be issued after the New Year."

China Investment Corporation (CIC), a behemoth with a registered capital of 1.55 trillion yuan, is about to be established.

The next issuance of government bonds will be the 1.3 trillion yuan in government bond supporting funds for the four trillion yuan stimulus plan.

As long as Ye Yuanxi continues to pay attention to government bonds, he will find how accurate Chen Xuebing's words are. Chen Xuebing revealed some "predictions" with limited effect, which is a clear indication of his attitude of being open with President Ye.

As for friendship, we can build it up gradually; he's willing to make this friend. At this moment, Chen Xuebing's casual answer, which was based on data, already impressed Ye Yuanxi once again.

"Mr. Chen's words have truly benefited me greatly!" Ye Yuanxi exclaimed, looking Chen Xuebing up and down before asking, "I heard you say earlier that you haven't played ball in a long time. You're so young, are you too busy with work? You should balance work and rest! Let's arrange a few more games when we have time! Also, what are your hobbies, Mr. Chen?"

"Hobbies?" Chen Xuebing was suddenly faced with this word, which was very unfamiliar to him since his rebirth, and he didn't have an answer for a moment.

In his past life, he played all sorts of games, but most of them were games that leaders liked to play.

Fishing, mahjong, and card games, including golf, were activities that the leader enjoyed, but were not his hobbies.

That leader is probably still the mayor of some town now.

Now, he no longer needs to cater to anyone's hobbies; when he thinks about his own hobbies, he feels a sense of emptiness.

"How about getting a dog?" Chen Xuebing asked hesitantly.

When he was a child, he saw a German Shepherd in the yard and really wanted to have one. Even later, when he saw some smart dogs, he would always stand and admire them, but never tease them.

After saying that, he noticed Yang Qingyue's eyes sparkling, so he quickly added, "I prefer medium to large-sized dogs, which are not easy to keep in urban residential areas."

"Haha, Mr. Chen didn't buy a villa?" Ye Yuanxi laughed loudly. "With your abilities, you could totally run a kennel or club! There's a fellow real estate developer and eco-friendly building materials guy in Beijing, also surnamed Chen! He established a dog club and even donated dozens of German Shepherds to the Armed Police and Public Security system!"

"Oh?" Chen Xuebing was surprised.

Ye Yuanxi's Shenzhen Guangtian is nationally renowned for its environmentally friendly coatings, building decorations, and renovation materials. The people he mentions must be doing quite well.

He became interested: "Who?"

"His name is Chen Jinfei, that Mr. Chen. He was already among the top on the Forbes rich list in 00, number 12! If you're interested, I can introduce you to him."

Ye Yuanxi didn't bring it up without reason; he actually wanted to demonstrate his network of connections.

After a brief moment of surprise, Chen Xuebing suddenly smiled and said, "I've heard of you. You're now focused on being his goddaughter's agent, right?"

Chen Jinfei is Liu Yifei's godfather.

The term "godfather" seems to carry a lot of connotations in the entertainment industry, but Chen Xuebing doesn't find this relationship strange. In his childhood, almost every child would have a godfather. He also had a godfather who was a cadre, but after his father passed away, the relationship between the two families faded, and he never visited him again.

That godfather of hers was someone she recognized when she was just a few years old. In the United States, where they live, this kind of relationship is called a godfather.

Chen Jinfei is no longer on this year's rich list.

This year's Forbes list has just been released, with Huang Guangyu topping the list with 180 billion yuan. The second-ranked person, whom Huang Guangyu met recently at a dinner in Shanghai with Wu Guangzheng, is Mr. Xu of Shimao Group, with 173 billion yuan.

He had seen the list of the top 100, and those he had dealt with included Guo Guangchang (9 billion), Ma Huateng (42 billion), Guo Guangchang's partner Liang Xinjun (34 billion), Lu Zhiqiang (3 billion), and Ma Yun (28 billion).

However, according to his understanding, the net worth estimates for many people on this list are inaccurate.

Some stocks are severely undervalued, such as Lu Zhiqiang, who was a dark horse in the stock market this year. Just a few months ago, the stock price of Oceanwide Construction, a subsidiary of Oceanwide Holdings, rose by more than 30 billion yuan. Another example is Jack Ma, whose Alibaba, which integrated the China Supply Iron Army, has already surpassed Tencent in industry valuation.

There are people like him whose wealth Forbes could never possibly know. His company is not listed, Singularity has just entered the valuation stage, and although the profits of Long March Capital are semi-public, there are various profit distribution contracts. As for Gu'an Construction, even he only has a rough idea of ​​how much profit is contained in the land that is about to be developed and the millions of square meters of land. Not to mention Spreadtrum, which is controlled by the company, and the projects he has personally invested in.

All he knew was that he would definitely be on the list next year, and many benefits would be realized then. Moreover, Spreadtrum was going public, so there was no way to hide it.

As his thoughts wandered, Ye Yuanxi sighed and laughed, "Chen Jinfei's name was once renowned in Beijing's social circles, but now he's only known to President Chen because of his goddaughter. No matter how big a businessman becomes, he's not as famous as a little star."

"Hehe, I'm no longer a minor celebrity."

Chen Xuebing actually met Liu Yifei at the end of September this year. At that time, he was in Zhongguancun, and Liu Yifei was holding an album signing event at the Zhongguancun Library, which was not far from Zuoan Gongshe, where Shunwei Capital is located.

The scene was one of thousands of people queuing for two or three hundred meters, a queue that lasted all day.

"By the way, after the New Year, my Sichuan project will start pre-sales. I plan to host a star concert for the signed owners at the Sichuan Gymnasium. I'm planning to invite a few celebrities to help out. If you know anyone, could you ask this Mr. Chen if his daughter is available? The price is negotiable."

Once a goddess, now a young girl.

Now that Mr. Chen has a different status, his tone naturally needs to be higher.

Even Ye Yuanxi frowned in disbelief: "You're going to hold an event and invite celebrities from Beijing? Why not invite a few from Hong Kong and Taiwan?"

"Of course! The hottest ones! Come with me to Sichuan, and I'll treat you to a meal by the best actors and actresses!"

Chen Xuebing finished speaking.

Yang Qingyue quickly asked Ren Ying in a low voice, "Who is it? Who is it? Sister Ying, do you know?"

Ren Ying whispered in Ren Ying's ear, "It's not decided yet. We're still negotiating with Chow Yun-fat and Gong Li. We've invited Jay Chou for the concert, and we're also trying to schedule his time."

Xiao Yang's big, bright eyes suddenly lit up. She gripped Ren Ying's hand tightly and sent frantic signals to Chen Xuebing with her gaze.

Jay Chou! This morning she was playing the makeup she did for "Sunny Day" on her laptop!

Chen Xuebing smiled gently and said, "I'll take you to the concert. What other celebrities do you like? I'll invite them for you."

These three are among the most expensive artists in the Chinese-speaking world, second only to Jet Li. If you can get them, the others are naturally not an issue. Some artists are even willing to drastically reduce their fees just to share the stage with Jay Chou.

Regarding these three individuals, a film and television planning company in Beijing quoted the following prices: Chow Yun-fat's attendance at events would cost 280-350 million yuan, while Gong Li, who is based in Europe filming, requires attendance to be tied to endorsements, costing 800 million yuan each time (including the endorsement contract). If both of them lock in their schedules together, the price could be even lower.

They couldn't get in touch with Jay Chou and his team, but they did give a reference price: 500 million for attending such a star-studded concert and singing five songs, with an additional 50 for each song added at the last minute.

The main issues in contacting Jay Chou were scheduling and venue availability.

Chow Yun-fat and Gong Li both had requirements regarding the occasions they attended, so he asked for a price close to their movie salary.

The two attend three of his important dinners and events every year, each receiving 20 million yuan, which is close to 7 million yuan per person per event.

The Chengdu concert should become a model for future homeowner benefits.

Inviting two international film stars to dinner is a common practice for entertaining partner suppliers.

Celebrity resources can unlock commercial value.

With these three moves, Boss Xu had completely taken advantage of him.

(End of this chapter)