Chapter 479: The opportunity to take control of a bank

At the beginning, this policy was only implemented in Jiangzhong, and then it began to be slowly promoted to other places, such as the Pearl River Delta and Yangtze River Delta regions, which are currently the most economically active in China. Many private factories are now looking to expand production, but they are suffering from a lack of funds.

Want to get a bank loan?

Well, the banks purely look at the person; nowadays, it is difficult for private enterprises to obtain loans from the banks through normal procedures; especially for small and medium-sized private enterprises in the early stages of development, the difficulty is even greater.

Not everyone who runs a business is like Han Songlin, who knows that if you want to get a bank loan, you just need to get a hold of the right people.

Therefore, Changxing Machine Tool's introduction of machine tool instalments with zero down payment quickly opened up the market for Changxing Machine Tool.

To a large extent, Changxing Machine Tool's ability to launch such an instalment business put considerable pressure on its own funds.

Without mountains of gold and silver, it really couldn't afford it.

However, Changxing Machine Tool had the support of Xinghai Group behind it, so launching this business did not require a large amount of capital.

At this time, Han Songlin's attention began to turn to one thing:

the banks!

The installment payment business model that Changxing Machine Tool developed with Han Songlin's intervention has indeed played a considerable role in promoting the development of Changxing Machine Tool.

However, for Xinghai Group, there is some pressure. Xinghai Group is now taking on the role of a bank, essentially providing disguised loans to the company.

This is indeed a bit abnormal.

Therefore, Han Songlin wants to transfer this business to the bank.

But in order to transfer it to a bank, there must be a bank that is able to take it over.

After much deliberation, Han Songlin's attention fell on the only bank in the country with a majority private capital stake, the People's Bank.

The People's Bank was formally established in January 1996, and Xinghai Group holds 5% of its shares.

Previously, Han Songlin had not paid much attention to the People's Bank; Xinghai Group had a very good relationship with the Big Four banks and simply did not need the People's Bank.

The reason for buying shares in the People's Bank, to put it bluntly, was very simple: Han Songlin knew that the People's Bank had particularly good prospects for development in the future, so he let the Xinghai Group buy shares.

After the Xinghai Group bought shares, it did not participate in the management of the People's Bank, and it directly delegated the voting rights to the bank's chairman, Jin Shuping.

The Xinghai Group has a particularly low presence in the People's Bank, does not send anyone to attend board meetings, and does not obtain loans from the People's Bank.

Apart from being a shareholder of the People's Bank, Xinghai Group does not have any business dealings with it.

The People's Bank was established to solve the problem of loans for private enterprises, so there are many related loans among its shareholders.

The problem of related loans in banks is not only serious in China, but also in foreign countries.

However, we have more contact with domestic banks and know more about them.

The big four banks actually provide loans to state-owned enterprises, which are technically also considered related loans. Otherwise, how could the big four banks have gone bankrupt in the late 1990s?

The private enterprises that became shareholders of the People's Bank were all super strong domestically at the time.

Otherwise, they would not have been eligible to become shareholders.

Han Songlin gently flipped through the calendar, a smile on the corner of his mouth. There was not much time left before the Asian financial crisis.

There were 60 (formerly 59) founding shareholders of the People's Bank, of which 49 (formerly 48) were private enterprises.

It can be said that the People's Bank has had several equity disputes in the future, and it has been called a bank where people cannot make a living because the equity is too dispersed and there is no absolute majority shareholder.

Who among the current private enterprise leaders is not unruly? Therefore, the battle for equity around the People's Bank is inevitable.

Han Songlin really can't become the absolute controlling shareholder of the People's Bank now, because there is an agreement that the shareholding ratio of a single shareholder cannot exceed 10%.

Of course, this is a minor problem, and everyone is used to this kind of thing.

Next year, or at the latest the year after next!

Among these 48 private enterprises, how many will collapse in the face of the economic crisis and their own operational problems?

State-owned enterprises go bankrupt, so why won't these 48 private enterprises go bankrupt?

In fact, the operational stability of private enterprises is even worse than that of state-owned enterprises.

There are bound to be many enterprises in poor operating conditions, so Xinghai Group can take this opportunity to launch a premium takeover of the shares of the People's Bank held by these private enterprises, and I believe these enterprises will not refuse.

With the cash in hand, you can save your own company or enjoy yourself.

Han Songlin browsed through the shareholder list of the People's Bank. There were some hidden gems in this list!

Han Songlin suddenly wanted to take control of a bank because of the instalment business of Changxing Machine Tool, and the current choice was the People's Bank, and there was a good opportunity in the next two years.

Therefore, Han Songlin was in no hurry about this matter.

He would wait for a while and then decide.

Sometimes, there is no need to do too much for many things; just wait, and the goal will be reached naturally.

The prerequisite is patience.

It's best to wait for the best opportunity to strike.

In early December, Xu Lu arrived in Jiangzhong.

Han Songlin received her at home.

During dinner, Xu Lu took the initiative to talk about the CCTV King of Advertising.

After winning the King of Advertising for two consecutive years, Fule Liquor lost the battle for the third King of Advertising.

The King of Advertising was won by a distillery in Dongshan Province called Qinchi.

Han Songlin was quite surprised when he heard the news.

Really, quite surprised.

Is history really that powerful a corrective?

Or did the management of Qinchi really believe in the advertising effect of CCTV's King of Bidding?

They weren't just taking a gamble, hoping that a bicycle would turn into a motorcycle, and fighting to get into a car, were they?

Han Songlin remembered that this winery had left a deep mark on the history of Chinese business.

A winery that relied entirely on advertising.

Its rise was sudden, and its fall was just as sudden; it passed through the sky like a shooting star, visible to all; and it also fell as quickly as a shooting star, leaving people to sigh with sadness.

Han Songlin: 'A lot of the raw wine for Qinchi was bought in Shuichuan, wasn't it?'

Xu Lu said with surprise: 'All the breweries in the country buy their wine in Shuichuan, what's the problem with that?'

Han Songlin laughed lightly: 'This is an open secret in the industry, and no one finds it problematic at all. But for consumers, it's a different story.'

Xu Lu opened her mouth, and admitted that it was true.

'Without this label king, it will be a big test for Fule Liquor.'

Xu Lu: 'Our Fule Liquor doesn't rely on the label king to survive, we rely on the quality of our products.'

That's not a bad thing to say.