Chapter 674

Since the sharp rise in international oil prices triggered by Iraq's invasion of Kuwait in August last year, the US stock market has immediately turned from rising to falling. It was not until the U.S. military lightning-bolted Iraq that the U.S. market finally ended nearly half a year of decline and began to climb slowly again.

The biggest support for the overall rise of the U.S. stock market is the consumer bull market that began last year. The most typical representatives of this are Coca-Cola and Wal-Mart. Even when the U.S. stock market was generally lower in the second half of last year, Coca-Cola's stock price was rising against the trend.

In less than a year, Coca-Cola's total market capitalization has risen from $30 billion to $45 billion, making it the seventh largest company in the U.S. stock market. Another consumer giant, Wal-Mart, is even more powerful, rising from $32 billion to $60 billion, and its market value has almost doubled!

As the world's largest electronic chain hypermarket, CG Company, a subsidiary of the Oriental Group, has also broken through its market value from less than $20 billion to $30 billion with this wave of consumer bull market, squeezing into the ranks of the top 50 companies with the highest market value in the United States.

"Mr. Rubin, you must have a good understanding of the situation of the Oriental Research Institute and the Oriental Game Company, and the profitability of these two companies is excellent, and there is no shortage of funds! In particular, the annual pre-tax profit of the Oriental Game Company will definitely exceed 2 billion yuan this year! In the face of such an outstanding company that can bring me rolling profits, what reason can you persuade me to reduce my shareholding and hand over some of the benefits to others?

I now hold more than 97% of the shares of Oriental Game Company, for example, if I take out 20% of the shares for public offering, what price are you and Goldman Sachs going to help me underwrite these shares?" Li Xuan asked with interest.

"While I don't know the exact financial figures of Oriental Games, according to our most recent analysis by Goldman Sachs, the valuation of Oriental Games could reach $20 billion. In other words, if you are prepared to take out a portion of your own shares, rather than issuing new shares to go public, then you can get $4 billion in cash at once, without deducting the issuance costs and taxes, of course!" Rubin replied with a glint in his eyes.

He and Goldman Sachs finally waited for Li Xuan's attitude to change, and the other party did not categorically refuse this time as he had done before, which was already a very positive signal in Rubin's view.

"It's only 4 billion? Well, it's a lot lower than I expected! If I don't choose to let Oriental Games go public, this 20% stake can bring me at least $400 million in pre-tax profits!

And if I choose to reduce my shareholding and go public, although I can get back a huge amount of cash, where will this money be invested to ensure that it will also help me earn back $400 million in profits every year? You know, I am not short of money, so if Goldman Sachs wants to undertake the big business of listing Oriental Games, it must first help me find a good place to spend money!" Li Xuan said with a smile.

Rubin frowned, his mental activity at the moment can be described by a classic mantra in southwest China, that is, mom sells batches! Since you are not short of cash, why do you insist on it, you can directly issue additional shares! Unfortunately, Li Xuan's meaning is already obvious, he wants to take the opportunity of the listing of Oriental Game Company to directly reduce some of his shares, so as to bring back a large amount of cash for himself for other investments.

It's just that Rubin didn't have time to figure out Li Xuan's specific investment intentions for a while, but the other party's intention was already very clear, and he agreed to let Oriental Games Company go public! So no matter what Li Xuan's follow-up conditions were, Goldman Sachs must do its best to meet the other party's requirements. Because this business is likely to be the largest IPO in the U.S. stock market this year!

"Li Sheng, if you have too much money to spend, you might as well hand it over to Jiahua Group, and let me help you spend this huge amount of money! Cathay Bank's business is limited to Chinatowns in Los Angeles, San Francisco, and New York, and it can't really help us open up the mainstream market in the United States! Therefore, if Jiahua Bank wants to really gain a foothold on Wall Street, it must acquire a large national bank in the United States!" Yang Lingjun, who was also accompanying him in the box, answered appropriately.

As soon as he finished speaking, Robert Rubin suddenly understood! Li Xuan wanted to cash out a large amount of money to help Jiahua Bank enter the North American market through the listing of the Oriental Game Company! Therefore, Goldman Sachs may have undertaken two huge businesses instead of one, and his mood suddenly turned from gloomy to sunny.

According to the ranking of the world's top 100 banks recently released by the British "Banker" magazine, Jiahua Bank can rank 76th in the world in terms of asset size, leaving behind many world-famous century-old stores such as Wells Fargo and Crédit Agricole CIB. However, Jiahua Bank's business is mainly confined to a corner of Hong Kong, and its global reach is completely unable to match the sheer size of its assets.

The United States is not only the world's largest single market, but Wall Street is the center of the world's capital flows. If Jiahua Bank wants to go global, it must be advanced to the United States!

Since the sixties, the U.S. economy has gradually begun to detach from reality. To a large extent, the current global hegemony of the United States is based on the hegemony of capital on Wall Street. After all, it is impossible for most companies to be like Oriental Game Company, which not only does not need any credit, but only relies on their own cash flow to support the rapid development of the entire Oriental Group in the early days.

And even with Li Xuan's coercion, the Oriental Group's acquisition of RCA Company was also inseparable from the support of huge bank credits! It was precisely because he was very aware of the power of finance that Li Xuan established Jiahua Bank a long time ago. It is precisely by relying on the strong capital output provided by Jiahua Bank that Oriental Group has been able to develop a huge electronic industry system around itself in just ten years.

But Li Xuan's previous positioning for Jiahua was just to be a capital overlord in a corner of Hong Kong and help him better control Hong Kong. This initial goal has so far been almost fully achieved. According to a research report released by the Oriental Economic Research Institute not long ago, the contribution rate of the electronics industry to the Hong Kong economy has exceeded 50%!

Li Xuan's Oriental Department established around the Oriental Group not only occupies half of Hong Kong, but also extends its tentacles to every corner. That's why he has the confidence to directly criticize the Hong Kong governor and the British authorities in Hong Kong, because the real situation now is that the British can no longer ignore Li Xuan. If the British authorities in Hong Kong dare to leave him alone, the situation in Hong Kong may get out of control the next day!

It's like South Korea's three-star empire, which is so big that it can't even be done at the Blue House. Because once you do it to Samsung, South Korea's economy could collapse. Therefore, even if the South Korean government makes a crime and arrests the chairman of Samsung, it can only be released in the form of amnesty soon after!

After Li Xuan realized the layout of his own nest, he naturally had a longer-term goal. The current Eastern Bloc is no longer inferior in hard power to any consortium in Europe, the United States and Japan, so how can it lack a world-class bank.

It is important to know that whether it is a European or American consortium or a Japanese consortium, banks will always be the most important link. For example, Jiahua Bank's current total credit is about 280 billion Hong Kong dollars, of which almost 160 billion yuan is invested in the electronics industry.

In other words, Jiahua Bank alone has injected more than $20 billion in credit into the electronics industry in Hong Kong and surrounding areas. With such abundant financial support, how can Hong Kong's electronics industry not rise rapidly!

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