The 4 trillion yuan plan is a shot in the arm for China's economy, at least for now, and all sectors have quickly returned to growth. It not only allowed Zhonghua Group to obtain sufficient investment ammunition, but also allowed the local government to gain the confidence to operate in debt.

Overnight, "running the city" has become a topic that must be discussed at the small meetings of the main political assemblies of all parts of the country, and it has become a general consensus that even if you are bold enough to develop in debt, you must improve the local economy.

In the mode of examination of China's official promotion, which is basically centered on economic development, the change of urban appearance and GDP growth have become the most intuitive assessment data.

Supporting the bold and starving the faint-hearted, under the wheel of China's rapid growth, it is the same for individuals and even local parents.

For example, those who were bold enough to go into debt and buy a house in advance are now the new winners, while those who did not have to shell out more of their savings to face rising property prices. Officials who dare to go on debt for big projects and run cities have a bright career, while those who follow the conservative approach have stepped aside.

Ten thousand horses gallop, the fastest first.

Taking history as a mirror, the different good and bad endings of the evolution of real life have allowed early consumption and debt management to begin to take root in the land of China.

Spending within one's means has been replaced by modest debt, savings are beginning to be turned into down payments, and the fiscal policies of ordinary Chinese households and even governments at all levels are quietly changing.

Compared with last year's sluggish growth during the subprime mortgage crisis, Chung Hwa Group's sales in the first half of this year achieved double-digit growth, thanks not only to the fact that the national purchase tax was halved, but also thanks to the change in the concept of national consumption.

In the company's internal data, the role of the type of car with the highest growth rate that no one expected was the Kunpeng Bus that achieved a growth of more than 200%, and orders from all over the country crowded the sales table.

Benefiting from the strategic partnership with Geely Real Estate and Evergrande Real Estate, the local government has started to purchase the latest Kunpeng bus models from Zhonghua Group on a large scale as one of the key measures to improve local livelihood services. Even the poverty-stricken cities on the domestic list have suddenly become generous and dare to add more than tens of millions of bus orders.

Of course, most of the money for the purchase of buses did not arrive directly, but only paid the deposit in advance, but they all urged the Zhonghua Group to hurry up and pick up the buses with government credit.

What emboldened local governments?

Because of the urban operation model, the extra-budgetary revenue obtained from land sales began to occupy the majority of the local government, and this money once reached more than 60% of the annual fiscal revenue.

There is no money in the local government account, but with the arrival of Geely and Evergrande Real Estate, the land in the city center has begun to appreciate enough to cover the debt.

Geely and Evergrande Group, which have survived the real estate winter, have begun to expand aggressively in third- and fourth-tier cities across the country, and everything else may depreciate and fall in price, but the high-quality land in the city center is a non-renewable gold resource, and it is hard currency to only rise and fall.

Under the thinking of running the city, the local government began to take the initiative to take the initiative to go into debt, dare to go into debt, and embarked on many large projects and livelihood projects.

Relying on the semi-official financing vehicle of the urban investment company, the appearance of cities in various places began to change with each passing day, and the financial debt began to run a deficit, and the local debt began to quietly become a new shadow giant.

However, this will not affect the hot sales of Kunpeng Bus, because according to the cooperation agreement, the local government will pay special funds to the account of Zhonghua Bus after selling the land to Geely and Evergrande Real Estate.

It is through the cooperation with real estate companies that Kunpeng bus began to enter the country in a big way, quietly encroaching on the territory of many original local princes' bus brands, and began to become a real domestic bus overlord. As long as the local government dares to make a deposit, Zhonghua Bus is not afraid that the purchase price will not be recovered, because the money will eventually be cashed out through the land.

If it is difficult to find the government, the Chinese government bears unlimited joint and several responsibility.

"It's impossible to repay the money for the time being, and it's good to be able to repay the interest on time. In the context of 4 trillion yuan driving 30 trillion yuan of investment, no local ruler will take the initiative to consider the debt problem. Think about how much the real purchasing power of 100 yuan 10 years ago has depreciated compared to 100 yuan now. ”

When Han Hao wondered why even a national-level impoverished city dared to spend a lot of money to buy a new bus fleet, they could completely reduce the burden of bank loan debt with this money, and this doubt made Yin Qingxun very disapproving.

"The debt is the government's, but the political performance is personal, and it is irrational for anyone to choose to use the money obtained from the sale of land to repay bank loans. The money was used to continue to invest in big projects and improve people's livelihoods, but the effect was immediate, and the local and individual needed such a prosperous economy.

As for bank loans, if you have money, you can repay it in installments, and if you don't have money, you can repay the interest first, and if not, there is still a mother from the central government to bear it!

To tell you the truth, many local governments have no intention of repaying the loan in the near future, hoping that future monetary inflation will offset the debt, or that the central government, which bears joint and several unlimited liability, will pay for it. ”

As a financial expert, Yin Qingxun can see it very clearly, and he hit the nail on the head to tell the reason.

"It seems that rapid development can temporarily cover up many problems, and once the pace slows down, it is the time when all kinds of contradictions erupt.

How to grasp the balance is a test of the wisdom of our national center.

But to be honest, I can also understand their approach, just like the current Chung Hwa Group, desperately seizing the opportunity to expand its scale. If you miss it, you'll be left behind by your competitors. As for the hundreds of billions of loans owed to banks, there will always be a solution. ”

In the past two years, Zhonghua Group has been desperately expanding, setting up sub-bases in China one after another, and also annexing international giants such as Land Rover and Volvo, and planning to enter the European and American auto markets in a big way, all of which require huge financial support.

Although Han Hao cashed out a lot of net worth before the subprime mortgage crisis, as he began to build a new investment empire layout in addition to his main business of automobiles, such as investing in chips and gold-swallowing giants such as Tencent, Han's richest man also burdened with a heavy debt burden.

"At least you don't have any plans to pay your debts!

Relatively speaking, our financial position remains relatively healthy, with sufficient cash flow to cover short-term debt and interest on long-term debt.

At present, Zhonghua and Huaxia brands have strong hematopoietic capacity, and relying on these two blood transfusions can support the orderly development of the entire group. Once Land Rover and Volvo can operate independently and revive, they will be able to achieve their overall profitability goals. ”

Yin Qingxun also understands that the next 3 to 5 years will be the most critical stage in the development of Zhonghua Group, and whether it can continue to leap up to become the top 5 international auto giants depends on the smooth integration of major resources and the completion of the expected industrial layout.

Under the premise of the collective decline of American auto giants, Toyota and Volkswagen have begun to become the new frontrunners in the global automotive industry. The goal of Chung Wah Group is to catch up with the two of them, from the top 10 goalkeepers in the world to the catch-up in the middle.

With the hot sales of Kunpeng buses, by the way, it also drove the sales of another new model "Pengcheng" bus. Even Han Hao admired his company's marketing staff, but whenever the purchase of a bus order exceeded 10 million yuan, he would directly present a "Pengcheng" bus to the local municipal government.

"Pengcheng" Zhongba is a competing model specially created by Zhonghua Group to benchmark Toyota Coaster, and it has been circling in Zhejiang Province due to the low market acceptance of the new model on the market.

However, with the entry of Kunpeng buses into various provinces, cities and regions, the figure of "Pengcheng" buses has also begun to appear in government compounds across the country.

More refined than Toyota Coaster workmanship, but also to adapt to China's national conditions to provide a variety of options, "Pengcheng" bus debut, at least in a short period of time is to compare Coaster. Of course, the long-term reputation depends on the use of the time in the next many years.

Every year, the market share of official buses is maintained at more than 3,000 vehicles, and by Zhonghua Group, more than 700 vehicles have been cut away at once, which makes FAW Toyota anxious.

It is impossible to reduce prices, you must know that Toyota sees profit margins as higher than the sky, as long as they can make a penny more, they will not give a profit to consumers.

If you really fight the price war, China Bus is not afraid, the engine, transmission and even chassis technology are their own, the industry has been opened up, and the cost can make FAW Toyota embarrassed, not to mention that there are internal differences in the division of interests between FAW and Toyota.

The amount of 10 million bus orders is enough to cover the cost of 400,000 "Pengcheng" buses, even if they don't make money, they must first grab the market, so that China-made buses become the first choice for governments at all levels to travel.

Compared with Toyota, which is somewhat inflexible in China, Volkswagen is much more pragmatic and localized, and the SAIC Volkswagen Lavida sedan, which was specially built for the Chinese market, has received unprecedented attention as soon as it was launched.

The tough body, spacious space, coupled with the addition of the Volkswagen logo, and the relatively appropriate price, make Lavida a well-deserved dark horse in the market, and the monthly sales suddenly jumped to the top three, posing a direct challenge to the long-term market hegemon China "Qin".

Another trump card, the new Bora created by FAW-Volkswagen, is also very strong, and its sales have entered the top ten in the market, showing the profound skills of Volkswagen's god car.

It stands to reason that many new models will be born in fierce competition, but China's auto market has shown a magical side, like a huge sponge to absorb all demand, every auto company is alive and well, at least the profit is not a problem just a matter of money.

Because under the influence of the subprime mortgage crisis in 08, many car companies have lowered their sales expectations, resulting in a relatively conservative production plan and the market is in a state of short supply.

Under the subprime mortgage crisis, many car companies have suspended their plans to expand the market, but Zhonghua Group has set up bases across the country, and will have two to three years longer than all competitors to complete the layout and expand the market ahead of schedule.

It is expected that the battle will take place three years from now, when the production scale of China's auto market will reach 22 million units, an increase of 8 million units compared with the current market.

If China's auto market continues to grow at the current rate, the market demand will be 18 million units, indicating that there are 4 million units of production capacity to be emptied, and there will definitely be many companies to live a hard life.

Han Hao set the goal for Chunghwa Group to achieve domestic sales of 4 million units by then, and to occupy more than 25% of the market share, so as to consolidate the foundation of becoming a world-class automobile company.