An opponent who can sit on an equal footing with the strong must not be much worse in strength.

As one of the three largest shareholders of Sanyo together with Goldman Sachs, directly controlling nearly 70% of the shares, the strength of Daiwa Securities and Sumitomo Mitsui Banking Corporation should not be underestimated.

"If we rely on our own contacts and are not familiar with the place, Daiwa Securities and Sumitomo Mitsui Banking Corporation may not be willing to transfer their Sanyo shares to us, but the major shareholder Goldman Sachs will help thread the needle in the middle, and the probability of success is still very high," Tang said.

"Sumitomo Mitsui Banking Corporation seems familiar, but Daiwa Securities hasn't heard of it. Jiang Hui also said indifferently that he had not heard of Daiwa Securities.

"Mr. Jiang, it's not strange that you haven't heard of Daiwa Securities, but I think you must have heard of Nomura Securities, right?" Tang said.

"Of course, the largest securities company in the island country, it is said that it is a company with considerable influence in the international economic and financial market. ”

"Daiwa Securities Group is an investment bank in the island country, and it is the second largest securities broker in the island country, after Nomura Securities. ”

"The second largest company? That's amazing. Now the island country is the second largest country in the world economy, and Tokyo is the world's most famous financial capital, so it is not easy to become the second in the market in such a country. ”

It's always easy to remember who the first place is, but who is the second place, and how many people care and how many people follow?

"The main subsidiaries of Daiwa Securities Group include Daiwa Securities and Daiwa Capital Markets. Daiwa Securities provides retail services, such as online trading and investment banking services for individual investors in island countries. Daiwa Capital Markets is the firm's international investment banking arm that provides M&A advisory, sales and trading services for corporate and institutional clients on a wide range of financial products. Other group companies provide asset management, research and private equity fund business ......" Guan Weidong briefly introduced the situation of Daiwa Securities to Jiang Hui.

As for Sumitomo Mitsui Banking Corporation, whether it is Mitsui or Sumitomo, these two words are familiar to many people. Sumitomo Mitsui Banking Corporation was established on April 1, 2001, by the merger of Sumitomo Banking Corporation, a bank of the Sumitomo Group, and Sakura Bank, a Mitsui Group, with total assets of 100 trillion yen, is the core enterprise of the Mitsui Consortium and the Sumitomo Consortium of the island country, and is the third largest commercial bank in the island country and one of the top ten commercial banks in the world. ”

"Daiwa Securities, like Goldman Sachs, are both investment banks, and I can understand that they have a close relationship, but why is Sumitomo Mitsui Bank also selling Goldman Sachs' face this time?" Listening to Tang's article about the relevant situation, Jiang Hui also raised his own questions.

"Mr. Jiang, I may know something about this. On January 15, 2003, Sumitomo Mitsui Financial Group issued convertible preferred shares to Goldman Sachs Group of the United States to obtain an investment of 150 billion yen (about 1.25 billion U.S. dollars) from Goldman Sachs Group.

According to the January 2003 share price exchange, Goldman Sachs could acquire a 7% stake in Sumitomo Mitsui Banking Group, becoming the latest foreign bank to take a stake in the island nation's banking sector. Sumitomo Mitsui's convertible preferred shares issued to Goldman Sachs can be converted into common stock for a period of two to 25 years after issuance at an annual interest rate of four and a half percent. Under the agreement, Sumitomo Mitsui will also provide Goldman Sachs with $1 billion in compensation for losses, possibly with additional guarantees. This should be a close bond between the two sides. Guan Weidong said.

"How could such a big bank think about Goldman Sachs' investment?" Jiang Hui said with some doubts.

"Sumitomo Mitsui accepted Goldman Sachs for a stake for a number of reasons. First, Sumitomo Mitsui's bad debts amounted to $48 billion at the end of September 2002, and the accumulation of bad debts forced them to seek foreign assistance.

In early December 2002, the Financial Services Agency (FSA) announced a timetable for clearing bad debts of banks, requiring all banks in island countries to adopt stricter American-style accounting standards to assess the value of loans from March 2003.

The island's government has taken a hard line on the problem of solving bad bank debts, forcing the island's major domestic banks to seek foreign funding in order to strengthen their financial base. In addition, Sumitomo Mitsui's stake in Goldman Sachs could boost investor confidence in its prospects. ”

"Although the economy of the island country has not been very prosperous in the past 20 years, Sumitomo Mitsui Bank will not have tens of billions of dollars in bad debts, right?"

"Mr. Jiang, speaking of which, there is really a story in it, I don't know if you have heard of it. Guan Weidong said.

"Don't sell it, hurry up and say it quickly. ”

As I said earlier, one of the predecessors of Sumitomo Mitsui Banking Corporation was Sumitomo Bank. If the collapse of the Bank of Bahrain is a wake-up call to the financial circles in Europe and the United States, then Sumitomo Bank's huge losses in copper futures have shocked Asia no less than the bombshell of Bahrain. Guan Weidong began to introduce some stories in the industry to Jiang Hui, a financial novice.

"In the 80s of the last century, when the island country's economy was growing rapidly, the island country had a strong demand for basic metals such as copper. Sumitomo Corporation, which trades copper, also has a strong influence in copper futures trading, with its chief trader, Yasuo Hamanaka, controlling 5% of global copper trading volume. However, it was this copper predator that lost $4 billion in just 34 trading days from May 31, 1996. ”

"In the mid-90s, when the island's economy was gradually heading for recession, the demand for base metals slowed down significantly, and at this time, Yasuo Hamanaka held a large number of long positions. As a result, Hamanaka Tainan pulled up the spot price, thereby driving the futures price, squeezing the bears, hoping to force the bears to stop loss and leave the market to achieve the goal of making themselves retreat.

After having a deep insight into the fundamentals of supply and demand, Soros joined forces with a large European fund and a Canadian mining tycoon to sell off violently, and launched a long-short war with Sumitomo. ”

"In the 34 trading days from May 31, 1996, the price of copper futures fell from $2,712 to $1,740, and Sumitomo Corporation lost $2.6 billion, which was further extended to $4 billion by a massive sell-off caused by panic. As a result of this incident, the copper futures index fell further, and countless companies collapsed due to the Sumitomo Bank incident. ”

"The massive $4 billion loss has pushed Sumitomo Mitsui Banking Corporation to the forefront, and the industry has accused it of being too desperate for speculation.

In particular, in copper futures trading, they are blindly arrogant, do not consider the laws of the market, and try to manipulate the global copper market. This irresponsible behavior led to a downturn in the global copper market. ”

Although the merged Sumitomo Mitsui Bank is larger, it has continued to have more cash to keep itself from the impact of the crisis or resist the impact of the crisis. Tang said his opinion.

(End of chapter)