This situation almost led to the collapse of the four major banks.
The initial reason was the conversion of allocated funds into loans.
Instead of direct funding from above, an institution provides guarantees to help businesses obtain loans to purchase equipment, raw materials, and even pay wages.
But the fundamental situation remains unchanged. What can be done? Continue taking out loans and continuing to pay salaries, but the money still needs to be repaid sooner or later.
If we can't pay it back, we're insolvent. How can we pay it back?
Isn't there a guarantee?
That one is even more ridiculous and has even less money.
And it's the kind of debt that can't be sued. The bank is in a terrible predicament; they can only treat it as a bad debt or a non-performing loan.
I thought getting a loan would be easy, but then Zhang Taoming called to say it was getting harder, and even his connections weren't enough.
They might even whisper, "Have you offended anyone recently?"
Xing Baohua has offended many people; who knows which one?
He immediately turned to Zhang Taoming and angrily said, "I'm asking for your family connections, and out of respect for you, I'm only asking for 500 million. Can you do it?"
"Wait for my call, I'll ask again for you?" Zhang Taoming said, hanging up the phone, his face almost dripping with sweat.
Of all the people he knew at the beginning, Zhang Taoming was the one who looked down on Xing Baohua the most, but now he has to look up to her.
The child also knew that Xing Baohua's visit to him would benefit his family's network of connections.
The problem is, after all, the bank isn't owned by them; it's subject to regulation.
The authorities have stated that if electronics factories need loans, all banks must strictly scrutinize the applications during the approval process.
In the art of language, strict grading means a very low pass rate.
It means the same as not approving.
When Zhang Taoming told his family, they told him from inside sources that he had offended someone and that they had blocked all his paths.
Xing Baohua needs to find the person he offended and plead for them before this door can be opened.
After Zhang Taoming finished explaining the situation, Xing Baohua angrily hung up the phone.
He called his secretary and financial director, got into his big red flag, and went to the bank.
Strange, none of the branch managers of the four major local banks are here?
The first wave of attempts ended in rejection.
He finally managed to meet a loan department director, but when he heard that Xing Baohua wanted 500 million, he couldn't even approve 5 million, let alone an astronomical figure.
They simply waved their hands and said it couldn't be done, not even by the bank manager; only the head office could approve it.
It's clear they really won't process it; they won't even give you the chance to fill out an application form or complete the paperwork.
"Did you guys mess with me?" Xing Baohua said before disappearing.
Back in the office, I called the president of Hong Kong Huahong Bank and asked him to open a branch in central Shandong.
As for the procedures, let him figure it out.
Then he called Citibank and asked for a loan of 300 million US dollars, using his shares in the rice electronics factory as collateral.
He readily agreed and said he would bring the evaluation team to Xing Baohua as quickly as possible.
The renowned Dami Electronics is a golden goose. They would love for Xing Baohua to use his shares as collateral, and after obtaining the shares, they would curse Xing Baohua for not being able to repay the money.
Selling rice shares is much more lucrative than lending money, especially if you go around Wall Street and shout it out; those capitalists and venture capitalists will go crazy.
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