On the way back to China, Li Mu felt more and more that going to the United States to go public is becoming more and more boring.

Science and technology innovation companies went public in the United States because of the relatively advanced science and technology innovation environment in the United States and its recognition of science and technology innovation companies.

It is precisely because of Silicon Valley, American capital and investors, that the recognition of science and technology innovation companies can reach the world's top overall.

If you give a specific example, it is for example Baidu, which is about to go public in the United States.

If Baidu is preparing to list on the mainland A-share market, it will first not meet the requirements of profitability for three consecutive years. Another thing is that the domestic market's recognition of it will definitely be much lower than that of Nasdaq.

In other words, if Baidu is planning to take out 10% of its shares for listing on circulating shares, the mainland A-share market is more conservative and can give it a price-to-earnings ratio of 20 times, and he can get a valuation of 5 billion yuan. In this way, taking out 10% of its shares for circulation can raise 500 million yuan in funds.

However, because Nasdaq, as the GEM in the United States, is very friendly to science and technology companies, they can give Baidu a price-to-earnings ratio of 40 times. That is to say, if Baidu goes to Nasdaq, it may get a valuation equivalent to 10 billion yuan.

In this way, the same 10% of the shares were used, but the funds raised were doubled.

This is why most Internet companies flock to the Nasdaq to go public.

However, the Internet industry encountered a bubble burst in 2000, so at this stage, the trust of the Internet in the US market is not as high as before.

Under such a background, if Li Mu really wants to list in Hong Kong, the valuation he gets will not be much lower than that in the United States.

The key is to stay away from these profit-oriented Wall Street capitalists and stay away from these American rich masters.

Although many older generation of Hong Kong capitalists are fundamentally no different from those of Wall Street in the United States, at least after Hong Kong's return, state-owned banks developed very rapidly in Hong Kong. The biggest difference between state-owned banks and those capitalists is that state-owned banks not only pursue profits, but also pursue social and economic development, while capitalists only pursue profits. They do not care whether society and economy are developing or regressing.

If the society’s regression is more powerful and the capitalists are, then they don’t mind the society’s regression to the Stone Age.

Therefore, Li Mu felt that if he could find a state-owned securities company in Hong Kong to be an underwriter, and the market value given was no less than that in the United States, he would simply go public in Hong Kong, which would be considered a wealth of money and would contribute to the economy of the Hong Kong Special Administrative Region.

So, the more I think this, the more I think Li Mu feels it is worth a try.

I should find an opportunity to go to Hong Kong, chat with state-owned securities companies in Hong Kong, and talk with the person in charge of the Hong Kong stock market.

Hong Kong is a financial important place, but in his previous life, he almost missed the dividends of the Internet market and only caught Tencent. This is because Nasdaq is indeed more professional, and on the other hand, it is because many regulations of the Hong Kong stock market are not flexible enough.

If the Hong Kong stock market agreed to Boss Ma’s partnership system, then Ah Li would definitely be listed in Hong Kong.

Ali is not only a giant Internet company worth trillions of Hong Kong dollars, but also an engine in the huge e-commerce market worth hundreds of trillions of Hong Kong dollars. If Ali is listed in Hong Kong, the companies that Ali later invested in and the independent subsidiaries may also enter Hong Kong one after another.

With Tencent's ecosystem, it is easy for Hong Kong to build an Internet financial ecosystem, so that this benefit can naturally be bigger and bigger like a snowball.

Now, Li Mu not only has the global ecosystem of Muye Technology, but also has Taobao and Alipay. There are also a lot of companies and industries outside. It will not be difficult to get them all in Hong Kong to queue up for listing. In the long run, it will definitely increase the market value of the Hong Kong stock market by more than 1 trillion yuan.

...

When Li Mu returned to Yanjing, he was about to set a time to go to Hong Kong, and the superior leader of the automobile industry made an appointment with Li Mu to determine the acquisition of three brands, Jaguar Land Rover and Volvo, under Ford.

Li Mu suddenly went to the United States and won three auto brands. The domestic industrial sector was very excited because this was an unprecedented attempt in the domestic auto industry, and there was too much room for imagination behind it.

So, the competent department determined several issues with Li Mu.

First, when will the acquisition be completed?

Second, when will you move to China?

Third, where is the location to choose when moving to China;

Regarding the first question, Li Mu also communicated with Elon Musk. Now that the acquisition intention has been reached, Muye Technology paid a deposit of 200 million US dollars, it immediately began to entrust an internationally renowned financial company to conduct asset audits and due diligence.

The audit, due diligence is completed, and if there is no objection, you can pay the remaining funds and complete the acquisition.

Regarding the second question, Li Mu thought that after completing the acquisition, he began to move the overseas production lines of three brands to China one after another. If the American trade union is easy to solve, all of them will be moved here. If the American trade union is difficult to solve, he will temporarily retain the Land Rover production line in the United States.

Regarding the third question, Li Mu's idea was to place the location in his hometown of South Su Province.

The specific idea is to set up an automobile industry center in Haizhou.

Haizhou's economy has always been underdeveloped. As an entrepreneur from Haizhou, he hopes to make some contributions to his hometown.

However, the leaders of the competent department analyzed for him in great detail the immaturity of the location in Haizhou.

Haizhou is too small, has a small population, and has no industrial foundation. Its only advantage is that it is not far from the sea, with ports and railways. In addition, its foundation is very poor.

Domestic automobile companies, FAW, are the eldest son of Republic industry. After the founding of the People's Republic of China, they flourished with the strong support of the country. They have been put in the foundation for decades and can be said to be the first in China in all aspects;

The Shanghai Automobile Group was established very early, and is located in the Shanghai Stock Exchange. It requires talents, economy, transportation and transportation. In addition, it has been a long time, experience and background in establishing joint ventures with foreign-funded enterprises;

Although Yanjing Automobile Group was established slightly later than the Shanghai Stock Exchange, like the Shanghai Stock Exchange, it has all kinds of talents, economy, transportation, and policies, and its cooperation with overseas companies has also accumulated experience and technology, so it has developed well.

In addition, the growth of several private enterprises is relatively difficult. For example, brands such as Jili and Qirui have developed little by little after years of hard work. In the early stage, it is even more difficult to recruit workers, and the core team will be even more troublesome.

Only then did Li Mu realize the various constraints of the real economy, especially industry.

The leaders have rich experience and know much more about domestic and industrial situations than Li Mu. Their experience is worth learning from.

Li Mu thought about it carefully. If he wanted to bring all three brands into China, then theoretically, the closer the three brands were, the better, because in the future, technology is common, and spare parts will even be interconnected to a certain extent. The closer everyone is, the lower the cost and the higher the efficiency.

If you want to build three car brands and add your own self-created brands, the area will be larger. It is no exaggeration to say that the area of ​​a medium-sized economic development zone may not even be enough.

This requires strong support from local governments.

The leaders hope that Li Mu will consider Yanjing because Yanjing universities have strong resources and strong industrial heritage.

However, Li Mu was really worried that Yanjing, which is developing rapidly, could still prepare a large enough land for his four car brands.

It’s already very difficult for BAIC alone, and it’s also working on a film and television city project, and the area of ​​that project is really not smaller than that of a car project.

So Li Mu decided to set up the headquarters in Yanjing first, and then communicate with the professional team to how to plan several brand production lines.

There are many processes involved in automobile production, most of which are disassembled. Li Mu thinks that if it really doesn't work, he can put the head office and assembly line in Yanjing and put the others around Yanjing. Finally, the car will be offline from Yanjing and sold to the whole country, or even the whole world.

Another very important issue is the funding issue.

Acquisition of these three brands is only the first step. The second step also requires spending tens of billions of yuan to transfer all the production lines, talents and technologies of these brands to China step by step. To buy land, build factories, transport a large amount of equipment, and carry out large-scale industrial upgrading. The total amount of funds required behind this will not be less than ten billion US dollars.

Fortunately, this money is not something that must be taken out in one go. You can take out one amount of money first, then borrow some money from the bank, and then apply for some local subsidy policies, especially the issue of land acquisition.

Such a large industry, if you really want to buy land, you may have to pay astronomical figures.

Fortunately, the country has always had support policies for private enterprises. The larger the scale, the stronger the enterprises drive employment and the stronger the economy, the more policy support the government will provide.

At that time, we will rely more on the help of local governments when it comes to land issues.

The leaders also expressed very affirmatively that Li Mu bought three internationally renowned car brands in one go and turned them into 100% of the Chinese auto companies. Once they moved to the country, it would inevitably bring huge improvements to the domestic automobile industry. Therefore, no matter where he chose the location, the superiors and local governments would inevitably provide the greatest support, and even state-owned banks would provide huge loans with favorable conditions.

This made Li Mu feel much more at ease. With the support of the country, he also gained greater confidence in the integration and rebirth of these three car brands.

During the talks, the leader also gave him a small suggestion, saying that he hoped that he could strengthen cooperation with Shougang and see if he could help Shougang and make breakthroughs in the field of automotive steel.

Li Mu agreed without hesitation and promised that once he completed the integration of the resources of these three brands and moved into the country smoothly, he would immediately invest in a research laboratory for automotive steel with Shougang.

Automotive steel has always been an important part of the steel market, but since the development of domestic independent automobile industry is not ideal, domestic steel mills have not made enough breakthroughs in the field of automotive steel.

Although automotive steel is developed and produced by steel mills, for steel mills, it is difficult to make major breakthroughs without a car manufacturing company providing full assistance to the steel mills themselves.
Chapter completed!