Chapter 294: Technology Company - Financial Crisis - The Richest Man in China
Liu Mei stayed in Cloud City for a week before leaving.
She finally saw the company's final annual report and wanted to say something, but when she recalled Wu Zhou's positioning and future planning that day, Liu Mei didn't say anything in the end.
Although Runan Capital is also one of the capitals, she is also very clear about the current competition between China and Mi Guo to what extent.
In the past, it was globalization, but now the global economy is de-globalization, and it may eventually become a regionalized economy.
Although Huaxia is the place with the most complete industrial chain in the world, there are still many areas where high-end is insufficient. At the official level, it is also a key focus.
If you want money, you have money, and you want policies and policies.
In the eyes of many people, the previous Aiying Group was actually a 'manufacturing' enterprise, and many so-called technology companies in China were actually manufacturing in essence.
The core business of manufacturing enterprises is the production and sale of physical products, and the main business of the previous Aiying Group is here.
The core business of technology companies usually involves R&D, innovation, technical services, etc., and last year, Aiying Group's sales entity business was too dazzling, covering up the performance of Aiying Group's 'technology'.
"Manufacturing enterprises are oriented to the traditional physical product market, in the fully competitive market of China, the competition will be very fierce, and the inevitable price war is inevitable. And although sales are good in 2020, this is a special market for global large-scale water release, which is very highly deceptive. ”
"Once inflation rises, it will inevitably start to raise interest rates vigorously, and then the market is likely to have a direct polar reversal, from high consumption to cautious consumption. If our Aiying Group's industries continue to be the original 'low value-added' manufacturing industries, it will inevitably usher in a huge impact. ”
"The current investment is to better cope with the upcoming 'market shock' in the future." These are the 'truths' that Wu Zhou said to Liu Mei at that time.
Liu Mei didn't expect Wu Zhou's positioning of the company to be a 'technology company', if this is the positioning, then all of Wu Zhou's actions to spend a lot of money last year seem to make sense, and technology companies do have the most 'money prospects', which can be seen by looking at the head companies in the stock market.
"How long do you think this future will come?" Liu Mei asked rhetorically.
"The more they release water, the faster it will come, at the current rate of release, at most a year or two, and their rate hikes should be very aggressive." Wu Zhou knew the specific answer, but he certainly wouldn't be too specific.
In 2020, the massive printing of money in the United States and the rapid growth of the national debt led to a surge in the money supply, which was to alleviate the economic shock caused by the virus.
And with the influx of money into the market, the supply of funds has increased, leading to a decline in market interest rates, which has contributed to the boom in the stock market and real estate market, while also increasing inflationary pressures.
This is due to the rise in demand due to the large supply of money, which, combined with factors such as supply chain shortages and rising labor costs, has led to an increase in price levels. As inflation increases, tightening is needed to bring inflation under control.
And once the United States begins to raise interest rates, the inevitable result will be.
1. The cost of borrowing has risen, whether it is for individuals or enterprises, the interest rate is high, and the interest will be more, which is equivalent to directly increasing their liabilities for individuals and enterprises in debt, thereby increasing the risk of debt repayment.
2. In the stage of high interest rates, it will also inhibit consumption and investment demand, and the interest rate on bank deposits is high, so is it more appropriate to deposit money in the bank? In terms of investment, investment is to earn income, and this stage is of course deposited in the bank to 'invest'.
3. The result of interest rate hikes is inevitably a decrease in money supply, which is directly opposite to the interest rate reduction stage. This can lead to difficulties in obtaining financing, which in turn affects production and operations, and in turn, directly affects the economy.
Finally, after the fierce interest rate hike in the United States, it will also make the assets of the United States more attractive, attract international capital to flow into the United States, lead to capital outflow from other countries, and exacerbate the instability of the international financial market.
In short, as the world currency, the US dollar is the global burden of inflationary pressure from interest rate cuts, but after the fierce interest rate hikes, the resulting debt burden increases, asset prices fall, money supply decreases, debt default risks increase, and international capital flows and other problems, foreign risks are greater
This is also the direct cause of the financial crisis caused by the 'every time' of the country's fierce interest rate hikes.
After waiting for the high-quality assets of other countries to depreciate sharply due to the 'financial crisis', there will be another wave of interest rate cuts in the United States. Funds poured into these 'bankrupt' markets, using their own cheaply printed banknotes to directly 'buy' these high-quality assets.
In this process of raising and lowering interest rates, earn excess profits.
As for the dollar itself, because it is integrated into these high-quality assets, it will also make them 'valuable'.
And in the current wave, the high-quality asset that the United States wants to 'buy the bottom' most is undoubtedly Huaxia.
Of course, the national level also knows this, and in order to prevent some 'blind' enterprise leaders from expanding production capacity frantically at this stage, they even made a move of 'limiting power and limiting capacity'.
"Your business sense has always been extremely acute, and I don't know what the future holds, but according to 'history', what you said is not unlikely. Last year's exceptionally prosperous market was a bit like a turning point in the boom and bust of the global market. "These big money capitalists, in fact, have a lot of 'market analysis and research' personnel, it can be said that they are all talents at the top of the market, and there are some talents who have really experienced the 'cycle'.
Liu Mei just didn't expect Wu Zhou to notice this, but if he did, if he had enough risk awareness, the more likely he was to survive the crisis.
The products of "technology companies", with higher added value and lower market competition, can make it easier for companies to survive in the face of future financial crises.
However, it is very unwise for Wu Zhou to suddenly drive those 'investors' away and pay a huge amount of cash at this stage.
She was also curious, where did Wu Zhou's money come from?
But even if she knocked on the side, Wu Zhou still didn't say anything.
So in the following week, Liu Mei wanted to look with her 'eyes' to see where the money came from.
But within a week, those who left received cash for the 'shares' repurchase.
It's just that after all these people got the money, Liu Mei still didn't find out where Wu Zhou's money came from.
'If this matter was planned by Wu Zhou a long time ago, and the money was raised by him a long time ago, then it would be fine, but if it was a temporary idea, he could take out 250 billion at one time.'
Liu Mei found that he couldn't understand Wu Zhou anymore, or he hadn't understood it from beginning to end.
With a little regret, Liu Mei finally left, and she also needed to report the whole thing to her 'superiors'.
At the same time, I don't know which way the immortals inquired about some details within the Aiying Group, and with the cooperation, the major capitals have 'disappeared' from the list of shareholders of the Aiying Group.
"The big withdrawal of the capital, some bigwigs said that they are not optimistic about the future of Aiying Group!"
"100 billion repurchase, why is Aiying Group valued at trillions?"
"The shares of Aiying Group have changed greatly, and Wu Zhou's shareholding has increased again."
"With a trillion valuation, Wu Zhou became the youngest richest man in China."
(End of chapter)