Chen Songqing said: "Jianing and Hongkong Land will provide a principal amount of HK$300 million, and the rest will need bank financing, as for the collateral, it is naturally the Miramar Hotel and the surrounding land."

Xu Sheng also has a real estate company under him, the rules should be clear, and I don't need to explain it in detail, right?"

"Understood. Xu Zhi nodded, this is actually the normal routine of the real estate company, such as the real estate auction, before the auction, the real estate company has contacted the bank to discuss the cooperation plan after winning the bid.

Often, 1 billion Hong Kong dollars of land, the real estate company will only use its own funds of 100 million or even less, the rest are bank loans, follow-up construction funds, material costs, etc. are the construction company can be delayed, can not be dragged or take bank loans, and so on to a certain extent, when the pre-sale of pre-sale, when the real estate is hot, you can quickly recover the funds, pay off the bank loan, and then the next project to fight.

This is also the fundamental reason why many companies with a market value of hundreds of millions of Hong Kong dollars can announce the use of billions of Hong Kong dollars for investment, everything is the operation of the bank behind it.

From 76 to 82 years, among the real estate bubbles, the most profitable ones were not the so-called real estate five tigers, but large banks such as HSBC, Standard Chartered, and Hang Seng.

Chen Songqing smiled: "So, Xu Sheng agreed?"

Xu Zhi shook his head and said, "I can promise the loan, but I am not satisfied with your collateral." ”

Chen Songqing frowned and said: "Xu Sheng, this is the normal mortgage method of Xiangjiang at present, could it be that Xu Sheng is not optimistic about the project of Miramar Hotel?"

Xu Zhi shook his head and smiled: "This has nothing to do with the project itself, the Bank of East Asia is currently only a medium-sized bank, and 3 billion Hong Kong dollars accounts for 1/3 of the entire bank deposits, so it is impossible for me not to be cautious about such a large loan." ”

Chen Songqing asked, "Then what other guarantees does Xu Sheng need?"

Xu Zhi thought for a while and said: "If you use other properties to increase the mortgage, I'm afraid it will bring a lot of inconvenience, why don't you use your own company's shares as collateral?"

"Stocks?" Chen Songqing and Bao Fuda were both stunned for a moment, and each fell into deep thought.

Chen Songqing naturally sneered in his heart, using stocks as collateral is just a common thing for him, he has already borrowed more than a billion Hong Kong dollars in this way, and it is naturally not a problem to mortgage it again.

Bao Fuda thinks differently, since the loss of Wharf last year, the entire Jardine Matheson Department is extremely worried that Hongkong Land will follow in the footsteps of Wharf, once it loses Hongkong Land, the entire Jardine Matheson will completely decline.

However, over the years, Hongkong Land has expanded its shares for various development needs, and Jardine Matheson Group only holds 10% of Hongkong Land's shares.

In August last year, in order to stabilize the control of Hongkong Land, Niu Pijian began to arrange the most famous Jardine mutual control in the history of Hong Kong business, the process is very simple, Hongkong Land and Jardine Matheson respectively private placement of shares of each other, the two sides used more than one billion Hong Kong dollars, and finally Jardine Matheson controlled 40% of Hongkong Land's shares, and Hongkong Land controlled 38% of Jardine's shares.

This kind of mutual control basically isolates the possibility of foreign capital ownership, but it does not mean that it is completely worry-free, among all the Chinese capital, Xu Zhi in front of him is the most worried person in the Jardine family, because his capital is far more than ordinary other Chinese families, and now he is even more worried when he hears the other party's request to use Hongkong shares as collateral.

After waiting for a while, Xu Zhi asked, "How are you two thinking about it?"

Chen Songqing smiled naturally: "No problem, I can use the same amount of shares as collateral." ”

Bao Fuda said: "Hongkong Land's shares are not mortgaged, but I can promise to use other fixed assets as collateral. ”

"Other assets are fine, but I don't accept a second mortgage. Xu Zhi said.

"Xu Sheng's requirements are too high!" Bao Fuda frowned, Hongkong Land's total assets are as high as 30 billion Hong Kong dollars, but the market value is less than 10 billion, the fundamental reason is that almost all of its properties have participated in mortgage financing, how can you do business in this era without bank money.

"There is no priority for a second mortgage, so I have to pay attention. Xu Zhi shook his head and said that if the collateral auction is used to repay the loan, in the priority repayment order, the later the mortgage, the more final the compensation, and the fixed assets of a company like Hongkong Land do not know how many times its fixed assets have been mortgaged.

"Two, we seem to be getting farther and farther apart. Chen Songqing suddenly laughed loudly: "At present, the real estate market is booming, but the two of them are discussing what will happen if the project fails, isn't this asking for bad luck?"

Xu Zhi smiled and said: "That's not the case, our bank is just for stability, and whether the project can make money, how do I know if I open a bank, you are the person who handles the project, aren't you?"

Chen Songqing said with a smile: "It doesn't matter, if Xu Sheng is not at ease, he can also join in, and we will work together, isn't it better?"

"If I join in, you won't be able to borrow from my bank anymore, Chen Sheng has thought about it clearly?" Xu Zhi asked with a smile.

"This ......" Chen Songqing thought for a while and said: "According to the regulations of the Banking Law, if Xu Sheng's investment does not exceed 15%, the Hong Kong government will not intervene, and the shares are a little less, but Xu Sheng can also get part of the profits from the loan." ”

"I'm not going to join you in this project. Xu Zhi shook his head and refused, and asked with a smile: "Since you are so confident in this project, then why are you unwilling to accept the stock mortgage, could it be that Mr. Bao Fuda is not optimistic about this project? After all, as long as the project is successful and profitable, any mortgage can be redeemed." ”

Chen Songqing smiled and asked, "Xu Sheng, you have so many requirements for our side, so I don't know what kind of preferential interest rate the Bank of East Asia can provide?"

"As long as there is enough collateral, I can promise to offer 13% interest on the loan. Xu Zhi said with a smile that the Hong Kong government has raised deposit interest rates many times in the past two years, and now the interest rate on commercial loans is generally as high as 16%, but this kind of loan of up to billions of Hong Kong dollars will inevitably have concessions, but it can reach 13%, and it is unlikely that large banks such as HSBC and Hang Seng will not have so much money.

“13%。 Chen Songqing's eyes lit up, the most important cost of large-scale real estate projects is the interest expense of bank loans, and every time a point is reduced, the company's profits can increase by several percent.

Seeing that Bao Fuda was also very hesitant, Chen Songqing added: "Mr. Xu, with the Miramar Hotel as the first collateral, even if we need to mortgage the stocks, according to the actual value, we will not mortgage many shares. ”

"Of course, I'm just looking for the security of bank loans, as long as there is enough collateral. Xu Zhi nodded and said, he just used the insufficient mortgage of the Miramar Hotel itself as an excuse, hoping that Hongkong Land and Jianing could use the shares as collateral, but the stock collateral obtained would definitely not be much.

"What does Mr. Bao Fuda think?" Chen Songqing asked, looking back to ask Bao Fuda in part of his previous series of conversations with Xu Zhi.

Bao Fuda thought for a while and asked, "Then I wonder how much value of shares BEA needs as collateral?"

"5% of the land stock, what does Mr. Bao Fuda think?" Xu Zhi asked with a smile.