Military Industry of Great Powers: Build the Strongest Flanker

The ruble depreciated 18 times, and the net profit was 1.4 billion. The ruble depreciated 180 times, and the net profit was 1.5 billion. The ruble depreciated 10,000 times, and the net profit was still the same...

If there are no other opportunities, it would be fine for Mr. Zhao to wait another two years, but in this golden period, it would be a huge loss if 67% of the shares were mortgaged here.

The opportunity cost is too high.

"I now own 70.1% of SinoCom's shares. If I can settle my account, I can use the 70% of my shares to get a loan from you. I can lend you as much as you can!"

Vladimir was speechless and said: "Mr. Zhao, don't forget that we are an investment bank!"

"..."

Seeing that Zhao Guoqing remained silent, Vladimir said: "This is different from the ruble loan. The ruble loan is based on Citigroup's credit. We don't need to pay. But if the loan is given to CITIC, we will need the billions of dollars." Come on, if that's the case, Mr. Zhao, have you ever thought about issuing corporate bonds? If you have enough collateral, Citigroup can endorse CITIC."

"In the international market, it is difficult to sell bonds of private companies because the risks are unpredictable. If Citigroup endorses CITIC, the risk level of CITIC's corporate bonds can be rated as excellent. This is the value of our Citibank existence!"

"..."

Zhao Guoqing shook his head. The Wolf of Wall Street is really not a boast. If you contact them, you will know that they are all masters of the White Wolf.

You can make a profit by selling bonds, and you can make another profit by guaranteeing bonds. After all, if you raise 100 million, you have to pay about 20 million US dollars in handling fees.

Then there is the interest rate on corporate bonds, which is benchmarked against U.S. bonds in the international market.

One thing investors have agreed upon is that U.S. debt is the safest investment in the world.

If you want to issue corporate bonds and attract investors to buy them, you have to raise the interest rate to be 20 to 30% higher than the interest rate on U.S. debt to be attractive.

In fact, new companies like CITIC, with unknown risks, often have to pay interest rates two or three times higher than U.S. debt in order to attract investors.

Let’s do the math.

Good guy, if you raise 100 million, you have to pay 20 million in handling fees. If you have a five-year period, you will have to pay 10 million in interest every year...

Do you want to be so cruel?

Zhao Guoqing decisively refused.

Vladimir smiled and said: "Mr. Zhao, there is another way. I wonder if CITIC has considered bringing in capital. Citigroup is willing to provide services to your company. With our financial support, CITIC can make more progress." Quickly explore the international market.”

"Also, you know, with Citi's connections, we can help Zhongxun solve a lot of problems, or we can take you to Nasdaq to ring the bell. Mr. Zhao, you will soon become the youngest billionaire in the world. Rich man..."

Zhao Guoqing did not refuse and said: "Then let's see how much you value Zhongxun!"

…………

Zhao Guoqing hung up the phone and shook his head. It would be unwise to bring Citigroup in at this time. CITIC is in a period of growth, and its branches are also in their infancy, and their production capacity has not yet exploded.

More importantly, it is foreseeable that WCDMA, CITIC's current core 2G standard, will definitely be identified as one of the international standards by the International Telecommunications Standards Association.

At that time, the value of Zhongxun will be truly reflected.

Letting Citigroup do the valuation is just a delaying tactic, letting them get busy first.

Vladimir on the other end of the phone took a long breath after hanging up the phone.

Investment is Citi’s specialty!

This kind of start-up enterprise that is in the rapid growth period is the fat in their eyes, the very fat kind...

…

Since he couldn't get the loan, Zhao Guoqing no longer thought about settling the ruble bill.

Zhao Guoqing said to Li Jingzhu: "Give me this month's bill from Wison's escrow account!"

"OK!"

After a while, Li Jingzhu brought the bill, and Zhao Guoqing opened it and saw that there was still nearly 600 million US dollars lying in the account.

Li Jingzhu said: "Mr. Zhao, the Foreign Exchange Bureau just called us and asked us if we have any plans to use foreign exchange..."

Zhao Guoqing shook his head and said, "Please reply to them, foreign exchange is useful to us now."

"good!"

Zhao Guoqing called Zhou Li and asked him to take a look at the list of 102 planned purchases.

After a while, Zhou Li replied: "We have purchased everything we can, including some high-precision spectrum analyzers, pulse rebound testing instruments, etc. We have not yet obtained the export license from the other country..."

Zhao Guoqing sighed helplessly. Things that Zhongxun can buy may not be available in 102.

This is the power of Wall Street capital.

You can get it from Goldman Sachs five-axis machining center, but you can't even buy an ASML PA3000 lithography machine from 102 Institute of Technology.

Because no one endorses you, you have no way to prove that the machine you bought will not be used in the military.

Zhao Guoqing thought for a while and made a call to Wison.

"Mr. Liang, please collect the latest news about Microsoft and the situation in the capital market. Please fax the information directly to my office!"

"OK!"

Huisheng was very fast, and after half an hour, a total of more than a hundred pages of information came through.

Zhao Guoqing opened it and saw that it was indeed similar to what he remembered.

Microsoft released the Windows 3.0 operating system last month, and the market response was very good. In just one month, Microsoft's stock price rose by 30%, and its market value has reached 3.2 billion US dollars.

Four years ago, in 1986, when Microsoft first went public, its stock price peaked at US$29, and its market value was only US$500 million.

In just four years, it has increased more than six times.

What impressed Zhao Guoqing was that since the release of Windows 3.0, Microsoft's market value has been refreshing every day. Eight years later, the market value of this giant will reach a terrifying US$600 billion, an increase of two hundred times...

Zhao Guoqing called Mr. Liang of Wison and asked about buying US stocks.

"Mr. Zhao, Wison has this service. We can set up U.S. stock accounts through multiple entrustments."

Zhao Guoqing asked: "What is re-entrustment?"

Mr. Liang said: "Mr. Zhao, re-entrusting means submitting orders to this subsidiary or a Hong Kong Island securities company, and transferring them to another securities company that has a cooperative relationship with the United States. Generally, Hong Kong Island subsidiaries will set up this Xiang Fu entrusted business."

Zhao Guoqing nodded.

Thanks to the close proximity between Shenzhen City and Hong Kong Island, it was easy for Zhao Guoqing to obtain a pass.

Zhao Guoqing asked Li Jingzhu to help him apply for passes for his whole family.

The next day, a family of four and four security personnel set foot on Hong Kong Island.

Zhao Guoqing said to Yang Qing: "You go shopping first, I'll go to Wison International, and I'll find you when I'm done!"

"good!"

Having a mobile phone is very convenient. Zhao Guoqing spent an hour at Wison International to open a multiple entrustment account and transferred all the US$580 million in the escrow account to the multiple entrustment account.

"Try buying 10,000 shares of Microsoft stock first!"

"..." Mr. Liang waved his hand and said, "Mr. Zhao, you can only buy it at night. It's still dark in the United States..."

"..."