"Mr. Nakagawa said that neither he nor I are professionals in the investment banking department, so I can only give a brief introduction to bond issuance. If you really need it, we can send truly professional colleagues to communicate with you.

Next is the free questioning session. If you have any doubts about what he just said, you can raise it directly. He will do his best to answer it for everyone!"

Lin Siqing's crisp voice spread throughout the small conference room. In the not-so-large room, more than 30 listeners were squeezed out, and many were burying their heads to write shorthand.

After about a minute or two, a thin man finally raised his hand and asked: "Mr. Nakagawa, is the cost of a bank loan necessarily lower than issuing bonds? How much is it lower?"

Lin Siqing translated the question to Naoki Nakagawa in English. The latter thought about it before answering: "Usually, the financing costs of enterprises are from high to low, namely mortgage loans, unsecured bonds, unsecured bonds, subordinated bonds, preferred stocks, and common stocks.

But there will be some special circumstances, such as the interest rate of bridge loans, which is usually higher than that of subprime bonds. Moreover, the interest rate assessment is adjusted based on the specific operating conditions of the company. The mortgage loan interest rate of high-risk enterprises may be higher than that of unsecured bonds of high-quality enterprises."

...

The lecture on the issuance of US dollar bonds by Naoki Nakagawa, or simply called the popularization of basic bond knowledge, is more accurate. The speech and the time to answer questions took about two hours in total.

In addition to the cadres of the Deep Sea Special Zone Housing Management Bureau and the Real Estate Development Company, the people who came to listen to the lecture also had more than 20 people from the SAR Municipal Government and the municipal financial system.

For domestic financial institutions, bond issuance is already a relatively unfamiliar thing. Since the issuance of Victory bonds and construction bonds in the 1950s, it has not issued bonds on a large scale for twenty years. State-owned enterprise financing mainly involves lending to banks, and there is no saying that corporate bonds are issued at all.

After the lecture, Wu Hongzhi sent Naoki Naoki Naoki and Lin Siqing to the guesthouse for rest. As soon as he returned to his office, he received a call from the city.

So he brought He Xugao, general manager of the Special Administrative Region Real Estate Company, and Li Mingde, deputy manager, and hurried to the municipal government. When he arrived at the mayor's office, he found that the city's senior officials and the deputy secretary in charge of economic work were also there.

"Old Wu, what is the origin of this Zhou** body?" the mayor asked directly.

"Zhou Yang was first introduced by Manager Ma of Guangdong-Hong Kong Company. He opened a technical consulting company called Yuanwang in Qiaoguan Building, which happened to be a neighbor to Guangdong-Hong Kong Company.

When Lao Li first went to talk to the other party, the other party suggested that he wanted to open a real estate company in Hong Kong with us. As a result, when he came to us for the second time, he suddenly said that he could help us issue bonds overseas.

He said that he had joined Merrill Lynch in the United States, and this information should be fine. I asked Manager Ma to go to the Guaratta Building to inquire. Merrill Lynch did rent a whole floor there and is now spending huge amounts of money to renovate.

I also asked the Municipal Public Security Bureau to contact the Xinhua Branch of Hong Kong. When the two people who came to the SAR to apply for a visa today, the identity documents provided by the work unit was indeed from Merrill Lynch Bank.

Today I also talked to the little girl named Lin Siqing. She said that Zhou Yang's judgment of the capital market was very accurate. He guessed in advance that the Hutchison Whampoa company would have an acquisition war.

Later, he felt that it was easier for Hong Kong to make money, so he came to Hong Kong from New York. It is said that he picked up the stock of Jianing Company as soon as he arrived in Hong Kong. He bought a lot of money before the stock price began to rise, so he should have made a lot of money.

And he successfully predicted the Iran-Iraq War last month. Merrill Lynch has benefited a lot from his judgment, so Merrill Lynch’s new Asia-Pacific president invited him to join Merrill Lynch.”

"It seems like a genius of making money. So is the dollar debt he mentioned? Is there any trap?" the mayor continued to ask.

"We also invited two colleagues from Bank of China Hong Kong to come and take the pulse today. They said that Merrill Lynch is strong in the United States and Europe and is definitely capable of issuing US dollar bonds abroad.

However, the other party’s offer is not low, the underwriting rate is required to be set at 3%, while the sales rebates for corporate bonds in the Hong Kong market are generally between 1% and 2%.” Wu Hongzhi replied.

"Then ask the people of the Bank of China, we give them 2% rebates. Can they do this business? They don't have to underwrite 500 million yuan at once. As long as they can borrow 200 million Hong Kong dollars from the Hong Kong market, I will call the central government to ask for credit for them."

The city/high-ranking official sitting next to him suddenly interrupted. He was on his head as a provincial/committee/deputy/submittee of eastern Guangdong Province, and he could really call the central leaders directly.

He said this for a reason. A heavy rain at the end of July this year flooded the old county town of the Deep-Sea Special Zone into a terrible country. After learning from the pain, the SAR government decided to focus on the development of Luohu District first.

The SAR government initially thought that it was also preparing to go to Hong Kong to raise funds. However, they were rejected by all Hong Kong financial institutions, including Bank of China Hong Kong.

In the end, there was no way, so the city/high-ranking official had to call the central government to complain, saying that he could not make bread without yeast.

So under the personal care and supervision of the deputy general manager, domestic banks issued RMB 30 million to the Deep Sea Special Zone, and Luohu District began to start the infrastructure construction of "five connections and one leveling".

"Comrades from Bank of China recommend that we continue to talk with Merrill Lynch, even if the handling fee for issuing bonds is higher, it doesn't matter.

Because if we can successfully issue US dollar bonds in the international market, we can greatly improve the credit evaluation in the Hong Kong capital market, and it will be much easier to go to Hong Kong to raise funds in the future."

Wu Hongzhi smiled and did not directly answer the secretary's question, but directly expressed the judgment of the Bank of China.

"Then let's talk boldly and don't be too stingy about the cost of issuing bonds. American companies travel far to Hong Kong, and they definitely don't come here to learn how to do good things.

Their purpose is nothing more than to make more money. Let's make money for them. Only by willing to buy horse bones with a thousand gold coins can they finally attract the horse!" The secretary said with a final say.

When Wu Hongzhi heard the tone set by the city's top leader, he understood what he should do. After leaving the municipal government office building, he held a small meeting with two heads of the Special Administrative Region Real Estate Company.
Chapter completed!