Chapter 14 mortgage loan

When Bao Yugang saw the Japanese government's interest subsidy, he used his brains and discussed it with Sanders, the manager of HSBC.At that time, Sandas was just a small supervisor of the lending department. He was promoted because of his support for Bao Yugang. In the 1950s and 1960s, HSBC, Standard Chartered Bank, and Yili Bank were all government note-issuing banks, and their status was similar.But after the 1970s, HSBC gradually ran away from the other two banks.why?The reason is that HSBC has a more flexible way of doing things. HSBC's head office is in Hong Kong, so decision makers can make immediate responses to local conditions. How about Standard Chartered Bank?The head office is in the United Kingdom. When a bank makes a major decision, it needs to go through communication, contact, understanding and negotiation. In Hong Kong, where the competition is fierce, how can there be delays?

HSBC outperformed Standard Chartered. In addition to being quick in decision-making, it also changed the bank's policies and policies because it was able to adapt to needs.The greatest achievement of Sandas is the discovery of Pao Yugang.Bao Yugang's career was developed with the help of HSBC.Sanders made Pao Yu-kang prosperous, and Pao Yu-kang also upgraded Sandas, making HSBC outperform Standard Chartered Bank. From Pao Yugang's achievements, HSBC draws a conclusion: to cultivate local Chinese businessmen with potential.This policy has contributed to the rapid development of HSBC.HSBC became a local bank, and over the decades, HSBC can be regarded as a bank that has grown with Hong Kong.

How did Yu-Kang Pao convince Sanders?The process is of course unknown.But according to my own sales experience, this is extremely difficult work.The most difficult thing for salesmen is not to do sales work, but to overcome psychological obstacles.In our industry, it's not that we don't have customers, but we dare not meet them.We are most afraid of some people with higher status than ourselves, especially the hired taipan.If the other party is a big businessman who started from scratch, he can also be said to be a salesman. This type of person is not difficult to deal with, but what about the other party who is an employee of a large company?Then he is probably a person who pretends to be a tiger, and he likes to show off and bully salesmen the most.After working for many years, I am most afraid of the working emperor.

Another psychological obstacle for salesmen is the fear of meeting Westerners, especially British people.In fact, many British people are good people, but when the British people go to the colonies, they will deteriorate.Although they are kind-hearted, when they arrive in the colony, they will unexpectedly put on official authority.In the 1950s, the British were so arrogant that no words can describe it. At that time, Pao Yugang, a gangster, had the ability to go to Sanders, an Englishman, and he had a lot of insight. If Pao Yugang grew up in a colony, he might have developed a fear of the British in his heart, but he is from Shanghai, a place that is good at foreign affairs, so he is not so afraid of foreigners.In the past, Hu Xueyan borrowed money from the British.Hu Xueyan's idea is that the British come thousands of miles only for money, as long as it is profitable, how can there be a businessman who refuses to meet people?

Or Shanghainese and British people have more experience in doing business, so Bao Yugang was full of confidence to knock on the door of Sundas. How does Bao Yugang sell himself?Unfortunately, there is no data research.Still, there are a few stories on hand that are worth referring to. Pao Yu-gang had a story in his early years that he will never forget.It is said that in the autumn of 1948, the Kuomintang and the Communist Party were fighting a civil war.The domestic currency has depreciated, prices have skyrocketed, and people in the market are panicking. Even the police who maintain law and order can't help but make trouble.

It was the 30th day at the end of the month, and the police station delivered food on the 1st.On the morning of the 30th, a policeman drove a large truck to the bank to withdraw money, saying that he wanted to pay the food earlier.At that time, the price of goods rose three or four times a day, and I received my salary one day earlier, and I could buy more firewood, rice, oil, salt and other things. At that time, Bao Yugang was the general manager of the banking business. The police headed by the police rushed in and said to Bao Yugang: "The real person does not tell lies. First, I don't have a withdrawal certificate. Second, I don't have the approval from the mayor. Order to withdraw money.Speaking of this, the other party pulled out a gun from his waist, slapped it on the table and said: Just figure it out!

Bao Yugang glanced at the pistol on the table, and said calmly: I am the manager of the banking department, and I only accept the withdrawal letter and the mayor's approval for payment. dereliction of duty. Bao Yugang had no choice but to bite the bullet and explain to them.However, he also understood that when a scholar met a soldier, he couldn't explain the reason clearly, so he immediately turned his brain and thought of a way to deal with it by using one thing to treat another thing.He changed the subject and said: Of course, you also came to withdraw money under the order of the director.Bao Yugang first affirmed the other party, which made them feel at ease, and put on an attitude that everything is negotiable.

He also said: The director is most familiar with the government's decrees. Since he ordered you to come, he must have reported to the mayor.After Bao Yugang finished speaking, he played again and said, let's do it!Let me send someone on the phone with the mayor immediately, and if he approves, we'll follow the rules and pay right away. Call the mayor, and the mayor asks the visitor to listen to the phone.After hearing the mayor's lesson, the visitor hurriedly put away the gun on the table, made an apology, and left in embarrassment. Bao Yugang has seen a lot of things in the world, so of course he has his own skills in dealing with embarrassing situations.This contingency technique can only be learned from difficulties.

The second story is about another ship king.He is the Greek ship king Onassis. Onassis is also a self-made figure.The Greeks had sailing experience, so Onassis also had the idea of ​​becoming a shipowner.Once you have a boat, you have to go out to find business.At that time, there was a tobacco merchant who often transported tobacco leaves from South America to Europe for sale. Onassis was very eager to win the transportation business, but Onassis did not know the tobacco merchant. How to do it?The only way is to go to Cold Call by yourself. First of all, Onassis found out the life habits of the tobacconist, and saw the time when he went to and from work. Every morning, he stood outside the door of the tobacconist's office, and when he met the tobacconist, he would respectfully smile at the tobacconist. Nod and say good morning.

In this way, he greeted the tobacconist early in the morning. About three months later, the tobacconist couldn't bear it anymore and asked Onassis: Who are you?Asking such a question, Onassis introduced his shipping job to the tobacconist and grabbed a big deal. The third story was told by the young lady of the Bao family. People in the Bao family certainly knew of Bao Yugang's hard work in starting a business. Bao Yugang's partner back then was not a tobacco dealer but a banker. In order to see the banker, Bao Yugang had to set off early and wait at the door of the banker's office.In order to ask to see the banker, Bao Yugang actually fell asleep outside his office door.Seeing him blocking the door, the banker kicked Bao Yugang's ass.But Bao Yugang gritted his teeth, endured the pain and did not lose his temper.

The reason why Bao Yugang won the support of Sanders was not only beneficial to Sanders, but also because he moved Sanders.Another person who couldn't accept Pao was George Madden of Wheelock.When Bao Yugang first debuted, he wanted to buy an old boat from Wheelock. The first person he contacted was George Madden of Wheelock.Madden looked down on this Chinese youth and had an arrogant attitude, so he failed to make a deal.Madden and Sanders are both British, but their attitudes towards people are very different.Later, Bao Yugang even bought the Wheelock Group. Another most admirable thing is that Bao Yugang can win the trust of the guests.Bao Yugang's ships are mainly oil tankers, not bulk cargo ships.His clients are oil companies. Oil companies are the richest. It doesn't matter to oil companies whether your ship is rented cheap or expensive. What they value most is whether your fleet is safe and reliable when transporting oil.The fleet that oil companies rely on mostly depends on performance. When an oil company chooses a reliable shipping company, it seldom switches casually, because the oil company cannot be sure of the safety of another shipping company's oil transportation.Safety is the key to transporting oil, as any oil spill will cause seawater pollution. As for Pao's shipping experience?Absolutely not.So how did he convince the oil companies, who are richer than him?How was his reliability established? Just because the transportation cost is flat, others may not be willing to use your fleet.If you say that your ship is expensive, you will manage it carefully, and the oil company will also say: your ship is expensive, isn't our oil expensive? Wealthy oil companies pay attention to the performance of the shipping company and don't care much about the rent of the ship. How did Bao Yugang persuade the oil company to try his service?How did Bao Yugang use his methods to steal his business?Let me analyze it! Bao Yugang stated his plan, which is to use the subsidy given by the Japanese government to encourage foreign investment to buy ships and lease them out, to Sandas. After hearing this, Sandas thought Bao Yugang was a fool.The bank itself is engaged in some mortgages or business with hands. Bao Yugang's suggestion is simply absurd to the banker. Sundas pointed out to Pao Yu-Kang that unless there is a mortgage letter of credit, it is LC, otherwise there is no need to ask. Bao Yugang was born as a banker and understood the bank's prudent style.How to make the whole plan feasible? Bao Yugang actually figured it out.He proposed a low charter price to the Japanese manufacturers. When the Japanese manufacturers saw the flat-boat charter, they signed contracts with Bao Yugang one after another.Bao Yugang had a contract in his hand, and when he took it to meet Sandas, Sandas was shocked.Isn't the charter contract a guarantee of repayment?Aren't these contracts the same as LC? Finally, Sandas was willing to support Bao Yugang. The first ship was Jin'an, an old ship with a price of more than 700,000 US dollars.According to the records of Pao Yu-Kang and his family when they arrived in Hong Kong in 1949, they only had more than 400,000 yuan in cash, but in 1955, they bought the ship with more than 700,000 US dollars. The reason is of course the support from HSBC Bank! As the saying goes: the first is difficult, the first is difficult, the most difficult is the beginning.After starting, the rest is easy to do.Bao Yugang regarded the ship as a building, mortgaged the Jin'an ship to HSBC, overdrawn a sum of money to go to Japan to build the ship, and enjoyed preferential interest rates.After the ship was built, it was leased to Japanese manufacturers at a low price.In this way, each ship was built, each ship was assigned to the bank, and each ship was rented out.At its peak, Bao Yugang's shipping company owned more than 200 ships at the same time. Bao Yugang's method of shipping is innovative.Generally, traditional shipowners focus on big daily profits, but what about Bao Yugang?Focus on long-term leases and future vessel appreciation.It can be seen from this that Bao Yugang focuses on long-term interests when doing business. At the time, Pao's method was unique. After success, shipowners in Hong Kong rushed to follow suit. As a result, Hong Kong became a famous shipping center in the world.The shipping business in Hong Kong is also quite different from that in Europe, America or Japan. Bao Yugang couldn't make a lot of money in a short period of time with this method of operation, but this method guaranteed that he would not lose money. Pao Yu-gang was able to come up with this method to start his shipping business, which may have something to do with his lack of shipping background.Since Bao Yugang has never been involved in the shipping industry and has not been influenced by traditional business methods, he can use innovative methods to do shipping business. Although Bao Yugang can't make a lot of money from renting, when the assets of the ship appreciate, he can sell the ship for arbitrage.This appreciation is greater than the sum of the daily earnings from renting out ships at high prices.In addition, Bao Yugang has avoided the blow of the downturn in the shipping industry because of his long-term lease.The interest cost eaten by each vacant ship on the dock is astronomical.The reason why many shipowners go bankrupt is simply that there are too many vacant ships.And Bao Yugang's policy is to improve the utility of the ship, and implement the mountain cutting to bury firewood. In 1965, Egyptian President Nassar nationalized the Suez Canal. Ships departing from Europe could no longer take shortcuts to Asia. Instead, they had to pass through the Cape of Good Hope in Africa. When demand exceeds supply, ship rents rise sharply.The cost of Bao Yugang's previous ships was very low, but now the rents of the ships have risen sharply. When Bao Yugang and the tenants sign the charter contract again, they will make a lot of money. In 1968, the largest riot in Hong Kong history occurred.As a result of this riot, it caused a great migration of wealth.Those who have confidence in the future of Hong Kong will get a chance to make a fortune, while those who have no confidence in Hong Kong will pack up all their resources and immigrate to foreign countries as apartments. Bao Yugang took advantage of this opportunity to develop his own business. After ten years of cooperation, HSBC and Pao Yugang have become inseparable partners. For the first time, HSBC invited this Chinese to join the board of directors of HSBC. Therefore, Bao Yugang became the first Chinese director of HSBC. For this reason, Pao had the opportunity to introduce an insurance plan to HSBC.The British-funded consortia back then were mainly HSBC, Jardines, Swire, etc. These companies all made their fortunes in Hong Kong. They took advantage of the preferential treatment given to British-funded institutions by the colony and won the most prosperous land in Hong Kong. .But the style of many British people is conservative. They just dominate the toilet and don't shit. Pao's insurance policy is aimed at capitalists' fear of communist governance.After the 1968 riots, if Hong Kong was liberated and turned into a second Shanghai, the real estate in the hands of capitalists would be wiped out. Seeing this, Bao Yugang suggested investment diversification to HSBC, and told HSBC how his family did business in Shanghai for reference.He was originally the son of an aristocratic family, his grandfather was in the silk business, his father was a cloth shoe merchant, and later opened a paper mill.Once Shanghai was liberated, the Bao Yugang family had nothing left, but came to Hong Kong with more than 400,000 Hong Kong dollars to explore the world.It is the wisdom of the Chinese to keep a sum of money for future use, but what about Westerners?Also understand not to put all your eggs in one basket. Bao Yugang believes that it is not appropriate for HSBC to invest a large amount of funds in real estate properties. If Hong Kong is liberated in the future, the property of the capitalists will become the property of the public. Will HSBC have enough funds to start a new business overseas?Bao Yugang also explained that when he arrived in Hong Kong at the beginning of the year, his father advocated doing real estate business, but he persuaded his father to turn the real estate into some floating property. When the executive of HSBC heard it, he immediately understood, and invested part of the funds in the shipping industry.This policy caused Bao Yugang's wealth and business to expand rapidly.When HSBC acquired British and American banks, local critics said that HSBC's business was too complicated, not a pure banking business but a grocery business. On the other hand, there are many people who are jealous of Yu-Kang Bao. A ship magnate said that Yu-Kang Bao is not the real tycoon of ships, because half of Yu-Kang Bao's ships belong to HSBC Bank.Regardless of whether Bao Yugang's ship is really only half of his own, he has indeed skillfully used the changes in the current situation to expand his own fleet. HSBC's insurance policy has a far-reaching impact.Other ancient British-funded banks have also begun to learn from HSBC to take the international route. After the 1968 riots, Jardine Matheson should be the most obvious one to abandon Hong Kong.For a long time, Jardine Matheson has been the largest foreign firm in Hong Kong for nearly a hundred years. Unfortunately, due to the wrong policy, the status of Jardine Matheson has also regressed.Jardine lost interest in Hong Kong and transferred a large sum of money to leave Hong Kong to invest in the Philippines and Southeast Asia. In order to get cash, Jardine had no choice but to sell the land in its hands. All along, the valuable land was in the hands of the British capital. If the Chinese wanted to develop real estate, they could only develop from the small amount of land leaked from the fingers of the British.Now that Jardine has lost confidence in Hong Kong, it turns the land into cash and turns to other places for development. But it is a pity that Jardine's foreign investment policy has failed again and again. After suffering for more than ten years, Jardine realized that Hong Kong is a blessed place.So he turned around and returned to Hong Kong for development.It was only in the 1980s that Jardine invested huge sums of money to buy back the land in Hong Kong. The most famous event was that it bought the land of Exchange Square at an unprecedented high price of 4.7 billion in 1982. Another British foreign firm is Swire.Taikoo also has a lot of land, and in order to leave Hong Kong, it is also selling land. The land of today's New World Center was originally the wharf of Taikoo Dockyard, and today's Taikoo Shing was originally Taikoo's cabin.What should we do when Taikoo has sold out the land and has a lot of funds in hand? The method of HSBC’s financing is to use Pao Yugang’s global shipping company to float out to sea. Jardine is justifiably investing overseas. Although it has suffered heavy losses, it has also contributed to Southeast Asia. .Swire Pacific came from behind. Since it was inconvenient to buy a ship, it had to buy a large number of planes. The funds from the real estate exchange provided strong support for Cathay Pacific Airways, turning a small airline into a fast-growing international company. In 1983, Taikoo also understood that instead of taking too much risk in investing abroad, it would be better to place its bets in Hong Kong.So he turned around and followed Bao Yugang's example of abandoning the ship and going ashore. Taikoo also participated in the construction plan of Pacific Place in the Admiralty area.Only those who have confidence in Hong Kong can make a fortune.