Chapter 2387: Financing (Part 22)

Originally sitting in a posture propped on the table, Liu Xiang pointed at Zhou Wei, then leaned back, sinking into the chair again. Those familiar with him nearby, like Zhang Yunmi and Wang Qiyi, knew this "Grand Prefect Liu" who called himself "the best in liberal arts among engineering monks" was about to show off his knowledge again.

"As for my state, I have devoted myself entirely. When there was famine in Henei, I moved its people to Hedong and moved grain from Hedong to Henei. When there was famine in Hedong, I did likewise."

"Even feudal lords over two thousand years ago knew that when natural disasters struck, not only must grain be transported for disaster relief, but disaster-affected populations must be migrated to grain-producing areas that weren't affected. After all, under ancient transportation conditions, the loss rate for moving people was much lower than for moving grain. The Mekong Delta is not only a grain-producing region but a mature grain-producing region. More critically, it can grow three rice crops a year!"

"Moreover, according to the Big Library's materials, these two years of drought would have originally caused large numbers of Guangdong and Fujian people to leave. The farthest went to the Bay of Bengal and India's east coast. India's raw silk industry was cultivated by this wave of people."

"Rather than letting them scatter randomly, spreading industrial technology everywhere, we should organize them for targeted, directed migration!"

"This proposal, I think, is very good! Everyone help look it over and refine it together?"

Liu Xiang made an "after you" gesture, signaling to the other Senators in a circle. The last one he signaled to was Chu He.

He pointed me out! Chu He received the hint and immediately stood up.

"Well, General Manager Zhou..."

"Hello, Senator Chu He! Ah, just call me Little Zhou!"

"Uh, Little Zhou, I want to first confirm one point. Are you raising funds for the 'Nanyang Company' entity, or for the 'Mekong Delta Colonial Development Action'?"

Zhou Wei was shocked at heart upon hearing this—at first, he thought: once I get the funds, I plant if I want to plant, mine if I want to mine, what's it to you creditors?! But just now at the door, hearing that wave of heated discussion, obviously quite a few Senators were dissatisfied with the Nanyang Company's current equity structure! Never mind the 39% that might be allotted, even the 51% "belonging to the Senate" had people pointing out problems! Yuan-assets or state-assets—this in-depth discussion seemed like a huge pit! If Lingao stirred up this political tide, my Nanyang Company might immediately be suspended pending conclusions, not allowed to raise funds freely! And looking at this situation, this storm seemed impossible to suppress, because quite a few Senators cared about "national structure," not just this Ren Youzi in front of him. Just off the top of his head, Zhou Wei could think of several! Like Liu Tangmu from the power system, activist Shan Liang, Han supremacist Xiao Bailang...

"Investment and returns for developing different regions are all different. This time, we're using the Mekong Delta with the highest success rate as a pilot!" Zhou Wei quickly continued along this line. Once he said this, not only did Ren Youzi and the others nod secretly, but Ai Zhixin and Meng Xian around Liu Xiang also nodded?! Ha! Seems like betting on the development action for fundraising was the right call on the spot.

"The plan is to establish a dedicated project company for each development project, then use the project company for fundraising."

Project companies were often used in real estate development. This Nanyang Company colonization action could also be considered another kind of real estate development.

"Then, let me first introduce the 'Guangzhou Investment Development Bank' proposal we submitted to Guangzhou Municipal Government..."

Chu He began his introduction. In summary, the "Yuan Assets Committee," i.e., the Senator Foundation, would invest 33% to 51% of shares. Delong, as the largest state-owned bank under the Senate, would hold 10% of shares. Senators holding major positions would hold 5% of position shares limited to voting and dividends, not transferable. The remaining portion would mainly be raised from local Guangzhou big households. Of course, if other Senators or Senator institutions were willing to participate, they could also join. The entire investment bank's first phase was calculated at 500,000 silver yuan. Once Lingao decided whether it was 33% or 51% or something else, actual payment would first be made in paper currency, and actually, this paper currency payment was part of over-issuance...

Local natives naturally wouldn't have more trust in paper currency. So the way to build confidence was why Meng Xian came today—Zhou Wei also received his wife's coded message yesterday—the Senate's Central Reserve Bank was going to be established in Guangzhou. After Meng Xian joined the late-night discussion yesterday, everyone came up with a showy operation, preparing to turn the reserve bank's lobby into a precious metal exhibition hall, using an entire wall of silver bricks to create visual effect. Then, copying South African gold mines' operation, set up a forty or fifty jin large gold block for people to "win prizes"—if you can take it out single-handed, you win!

The Guangzhou Development Bank's official investment is paper currency. The precious metals that paper currency can be exchanged for are in the reserve bank. Go look for yourself!

Then, the task of raising money from Guangzhou wouldn't be rushed. The investment bank would slowly handle it, while Zhou Wei would enjoy the first special loan and could start getting money to begin work.

"We hope the Nanyang Company, at least this first Mekong Delta development project, will have all mainland deposit, exchange, and remittance business entirely handled by Guangzhou Investment Development Bank!"

Huh?! Zhou Wei looked at Meng Xian, but found his expression unconcerned...

Can we even play like this?!

Just as Zhou Wei was startled, "number two figure" Ren Youzi also spoke up.

"General Manager Zhou!" Once Ren Youzi opened his mouth, Chu He sat back down. "Actually, the entire proposal means this. That is, we use the name of establishing a local bank, quickly get the central government—to be precise, Delong—to release about 200,000 in cash, then we quickly pass this money to you."

"Too kind, too kind..." Zhou Wei's hair stood on end upon hearing honorifics, hurriedly waving his hands to decline.

"Right now, New Year's is coming soon. This year is also a cold winter. According to records, it will snow in Guangzhou. Once you have the money, quickly get all the preparation work moving. The sooner the Mekong River mouth is taken, the sooner it's an achievement. Even early rice needs 90 days to grow—and that's with fertilizer. Think about it, just this one planting and harvest is at least 120 days, four months. Generally, drought conditions fully manifest and confirm and cause serious yield reduction by mid-July. You've got at most half a year. And that still has to complete preliminary preparation, conquest, allocation, seedling raising, planting, field management, harvesting, concentration, storage, transportation, and it's f***ing sea transport... Arriving at Guangzhou, entering the warehouse, your first phase finally has a result."

"Time is very tight!"

"If we can't get the grain in place within the critical time window when the drought forms public awareness and creates actual social impact, what meaning does this investment have?"

"This is not just a commercial investment. To put it clearly, this is a political action."

"Disaster prevention, reduction, and relief, and the organizational power and combat power demonstrated in these activities, is where our China's Mandate of Heaven lies!"

Zhou Wei remained silent...

Liu Xiang also remained silent... You took all the words I said yesterday, what can I say now?

Chu He saw the atmosphere cooling and interjected from his seat. "Considering the Nanyang Company's manpower issue, we sincerely suggest entrusting the follow-up fundraising for this colonization action to our Guangzhou Investment Development Bank. We cooperate on both lines to ensure the Nanyang Company's expansion and operation aren't troubled by funding. Otherwise, as time drags on, the monsoon will pass. This isn't yet the age of internal combustion ironclad ships!"

From this angle, Zhou Wei actually agreed somewhat in his heart—from the moment he proactively proposed the Mekong Delta, the political significance of this "first battle" was already set. This was not only the Nanyang Company's first battle that must be victorious and successful but also a battle that must be won decisively under the great cause of responding to the drought. And the Nanyang Company's manpower was insufficient. Even if the little brothers contributed all their guards and secretaries, it wouldn't be enough to fill the pit of operating two lines simultaneously. Taking a month to grind through fundraising, then another month to grind through recruitment and material collection, then sailing south with the last north wind... From the Nanyang Company's perspective alone, it wasn't impossible, but having lost political meaning and status, what need was there for a Nanyang Company with only commercial meaning to exist? Or rather, what need was there for such a "national policy company" that didn't care about politics to hold a monopoly position? After all, the essence of a "national policy company" was national policy, not company.

After Zhou Wei sank into thought, he unconsciously started nodding. Ren Youzi, seeing this micro-action and micro-expression, knew Zhou Wei had "realized it," and continued talking about his part.

"Guangzhou Investment Development Bank will, during the colonization action, comprehensively strengthen efforts to absorb big households' silver inventory and timely launch large deposit business. Of course, all mobilizable funds will make every effort to meet the follow-up funding needs of the colonization action. But investment in other major opportunities isn't excluded either."

Ren Youzi deliberately left this hanging. Seeing Zhou Wei's expression indeed change slightly, he then said:

"When the first batch of grain arrives, the Nanyang Company's strategic execution ability and profitability will be displayed. It will itself possess an extremely strong commercial credibility foundation and won't need the central bank and the permanent Senators to endorse it! This will also liberate these credit anchors. Coincidentally, our group's other proposal is to jointly sign with Guangzhou local government proposing the central government establish the Guangzhou Securities Exchange Center. When your first phase action is ending, this should also have a conclusion. At that time, whether your Nanyang Company wants to continue financing through Guangzhou Investment Development Bank, or publicly raise funds through the securities exchange center, or through your half year's work in Guangzhou establish your own system to continue private placement, all are fine!"

Having autonomy for subsequent development projects—this point Zhou Wei was quite satisfied with. But the price to negotiate still needed to be negotiated...

"Since the main purpose is resettling disaster-affected populations, I must raise the difficulty of agricultural development at the Mekong River mouth..." Zhou Wei immediately changed direction, describing the development difficulty in the most arduous terms.

(End of Chapter)