kingnovel Chapter 635: HSBC is going to help Nanyang issue government bonds?
Chapter 635: HSBC is going to help Nanyang issue government bonds?
Zhang Chi enlightened:
"Guangsong, you're just worrying too much.
Whose Nanyang is it? It is our Nanyang, where we are the masters. How can we allow foreigners to take over our country?
He walked up to Zhang Guangsong and tapped the table lightly with his fingers:
“We welcome them to invest, as long as they abide by our rules and operate in accordance with the law, and everyone will make money.
But if they want to play dirty, establish a monopoly, and bully the market... Humph, our tax bureau, industrial and commercial bureau, courts, and even the guns of the national defense army, are they just there to eat?"
"How to regulate and formulate fair rules to leverage foreign investment while protecting young local industries is precisely the difficult problem that you, your administration, and the soon-to-be-formed Legislative Council need to devote significant effort to studying and solving."
Zhang Chi threw the question back, but there was trust in his eyes.
“There’s a saying that I think is very good: things are constantly evolving, and contradictions are constantly arising.
When old contradictions are resolved, new ones will emerge.
It’s unrealistic to expect a permanent solution.”
Zhang Chi, now the ruler of a country, couldn't help but sound very mature:
"The important thing is to have the courage to face problems. If there are problems, we should solve them. Only by facing challenges head-on can we show our responsibility."
Zhang Guangsong took a deep breath, his worries largely dispelled by Zhang Chi's confidence and clear thinking. He said solemnly, "I understand, Commander! I will do my best to sort out the key points!"
At this time, Minister of Economic Affairs Chen Zhenchuan and Minister of Finance Bai Hongsheng looked at each other, and Chen Zhenchuan began to report the good news on the other side.
"President, Prime Minister, the situation of the Xingzhou Stock Exchange has far exceeded expectations in the two months since its operation." Chen Zhenchuan spoke slowly, but the data he reported was shocking.
“Currently, there are 127 high-quality companies listed, mainly in rubber, tin mining, palm oil, shipping and banking stocks.
The cumulative increase in the composite index has reached 45 percent.
The average daily trading volume has remained stable at over 5.5 million Nanyang dollars (about $100), with peaks exceeding 10 million. Market enthusiasm is extremely high.
One hundred dollars may not seem like a lot, but this is just the daily turnover in the stock market.
Moreover, the Singapore Stock Exchange was just established. With the development of the economy and the end of World War II, it was foreseeable that the one hundred dollars would soon become tens of millions or even hundreds of millions of dollars.
Bai Hongsheng then added: "The subscription for the newly issued billion-dollar infrastructure bonds at home and abroad has also been very enthusiastic.
At present, the domestic part, denominated in Nanyang dollars, equivalent to approximately 200 million US dollars, has been basically subscribed, with private capital and state-owned funds actively subscribing.
The overseas quota of $800 million is handled by underwriters in Singapore, New York, San Francisco and other places. The currently confirmed subscription amount exceeds $500 million.
Many overseas Chinese and Chinese banks have shown strong support, and many established White Eagle Banks are also optimistic about us."
He also specifically mentioned: "In accordance with your instructions, we have maintained a moderate flexibility in the exchange rate of the Nanyang dollar to the Dole, currently maintaining it at a slightly weaker level of 5:1, with a slight devaluation, in order to effectively stimulate the export of our rubber, tin ingots, tea and other export commodities."
At this time, Bai Hongsheng's tone became a little subtle, and he mentioned an interesting thing:
"Also, Commander-in-Chief, there is something unexpected.
John's HSBC, through an intermediary, expressed great interest and was even willing to offer preferential terms to assist us in underwriting some of our overseas government bonds."
"Oh?" Zhang Chi raised his eyebrows and laughed. "HSBC? That's interesting. Fatty Qiu and his group of high-ranking officials have been scolding us in the newspapers as 'Asia's upstarts' and 'disruptors of order' because of the Malaya and Pegu incidents. Officially, we've been very cold to them.
HSBC is really quick in its actions.”
Zhang Guangsong also frowned, somewhat puzzled: "As far as I know, according to international practice, the agency fee for issuing government bonds is only between 0.02% and 0.02% of the total amount issued.
We in Nanyang have a good reputation, with oil fields and gold mines as collateral, and the interest rates on our government bonds are also reasonable. They are not the kind of junk bonds that no one is interested in.
Even if a major bank like HSBC secured the underwriting rights, it would only earn a commission of 0.03% or 0.04%. Is this small profit enough for them to be so proactive, even at the risk of angering politicians in John's home country?
After hearing this, Zhang Chi smiled even more meaningfully:
"Guangsong, you don't understand what true capitalism is, what a financial empire is.
In the eyes of John's veteran bankers and family, anything can be given a financial attribute and used for speculation."
"Do they really value our three-year, fixed interest rate of 4.5% on our government bonds?" Zhang Chi shook his head. "That little bit of stable income is just an appetizer for them. What they really value is the 'underlying asset' of the Nanyang government bonds themselves!"
"Stir-fry?" Zhang Guangsong was still unfamiliar with the popular word "stir-fry" in later generations.
"Yes, it's speculation," Zhang Chi explained. "They buy at a low price, create hype, drive up the price, and then resell it to other funds, banks, or even individuals seeking stable investments, profiting from the difference.
There is nothing they cannot speculate on, including government bonds, foreign exchange, futures, stocks, and even future options.
What you play for is a heartbeat, and what you earn is an information gap and financial advantage."
"As for HSBC, it is a veteran in this field," Zhang Chi added.
"When this bank was first established, it was to provide financial services to John Trade in the Far East. Later, it grew step by step and issued bonds to John's government, the Qing government, and even the later Republic of China government. It handled huge loans and indemnity transactions and even had the right to issue banknotes in some areas.
A typical 'too big to fail' financial giant."
"Although the official relationship between Nanyang and John is cold now, making money is not shameful." Zhang Chi concluded with a hint of mockery in his tone, "As long as there is profit, these financial giants don't care who sits across from them.
"Some people will do business that will get them killed, but no one will do business that will lose them money. This is their motto."
After listening to Zhang Chi's analysis that went straight to the essence, Zhang Guangsong, Chen Zhenchuan and Bai Hongsheng all showed an expression of sudden enlightenment and nodded in agreement.
Especially Zhang Guangsong and Bai Hongsheng, they felt like they knew for the first time that capitalism could be so versatile.
Zhang Chi sat back in his chair with ease:
"If they want to play, then we'll play along. As long as we set the rules, enforce the regulations, and use their funds and channels to build our own services, why not? If they want to stir up trouble in Nanyang, they'll have to ask our permission."
Soon, the news spread.
The United States of Southeast Asia actually issued an additional $4 million in infrastructure bonds and sold them through HSBC in the financial markets of countries such as John, Maple Leaf, and Kangaroo.
For a while, public opinion was in an uproar.
Many people believe that this seems to be a signal of easing relations between John and Nanyang.
And with the decline of Hans' Third Reich, it seems that global peace is just around the corner?