In the Hua Xia at the beginning of the 21st century, foreign exchange management was quite strict. In fact, even before Li Mu's rebirth, foreign exchange was still very strict for ordinary people and ordinary enterprises. For example, an individual could only exchange a few tens of thousands of dollars per year.
At present, except for the central enterprises, there were not many enterprises in China with a total market value of more than 2.5 billion USD, let alone so much foreign exchange. Any company that wanted to get 2.5 billion USD of foreign exchange was basically a fool's dream.
If Li Mu wanted to get 2.5 billion USD of foreign exchange, the only way was to find large capital funds from the overseas capital market. Of course, the money in the hands of these large capital funds was more usurious than loan sharks. They would never agree to a loan with little interest, because they had long passed the stage of relying on interest to make a profit. What they wanted was Makino Technology's shares and Li Mu's flesh.
For Li Mu, he could cut off his head and bleed, but he couldn't cut off his flesh, so the only choice was to find a way to raise funds in China.
If he directly went to the central bank to borrow money, he might be able to get it by relying on his connections, but it would definitely be a very bad start, and it would also attract criticism. In the future, it might even be used by people with ulterior motives. Therefore, Li Mu came up with this idea:
I'm not borrowing 2.5 billion USD from the central bank for nothing, but I have to first set up a private equity fund, collect the corresponding value of 2.5 billion USD of RMB, and exchange the same value, this is the first step;
Then I'll deposit this money in the central bank under the name of the private equity fund, and use the private equity fund to borrow 2.5 billion USD of foreign exchange from the central bank, this is the second step;
The private equity fund and Makino Technology had no legal relationship, so Makino Technology would borrow 2.5 billion USD from the private equity fund to acquire Apple, this is the third step;
After acquiring Apple, Makino Technology would receive a large amount of USD funds from the US capital market when the IPO was completed. The scale of this fund was likely to exceed 20 billion USD. At that time, Makino Technology would take out 2.5 billion USD and the promised interest to repay the private equity fund. The fund would repay the 2.5 billion USD and the interest rate of the central bank to the central bank, and the remaining interest rate would be directly converted to RMB with the central bank. The previous RMB deposits would also be withdrawn and repaid to the individuals involved in the private equity fund with interest, so that they would finally receive the 8% annual income that Li Mu promised. At this point, the whole process seemed to be over.
However, after this, Li Mu would give the central bank an extra big reward!
After Makino Technology went public, it would have a lot of USD in its hands. When the time came, it would find ways to invest as many USD as possible in China, which was equivalent to generating foreign exchange for the country.
For example, if Makino Technology started the production and research of smartphones and other hardware, it would directly invest a large amount of USD to build a large domestic base. This amount of foreign exchange would be huge, and it would be the reward that he would give to the central bank.
In order to borrow 2.5 billion USD of foreign exchange from the central bank, he made so many preparations and follow-up rewards. This way, the cooperation between Li Mu and the central bank would be completely without any guilt. If there was no guilt, it could be completely disclosed to the public. In this way, he would naturally not leave any problems for himself.
Moreover, he did not need to worry that his approach would set a bad precedent. With his set of standards, if other companies really followed this set of standards, the central bank would be more than happy to see it.
…
Li Mu's entire set of speculations was easily realized by Chen Ze with almost no deviation.
At noon the next day in China, Chen Ze sent Li Mu a piece of good news. After half a morning of communication, the central bank had already agreed to Li Mu's cooperation plan. The central bank even gave a very big preferential treatment. That was, if Makino Technology could invest 2.5 billion USD in China after going public, the central bank would completely waive Li Mu's interest and all the fees for the 2.5 billion USD loan.
Li Mu did not care about the interest, but the central bank's attitude made him very excited. This also meant that he had the money to buy Apple.
Immediately, Li Mu said to Chen Ze, "Start the internal subscription at CSC Club. The specific data is set as follows: the annual interest rate is 8%, the cycle is 6-24 months, the starting purchase amount is 10 million, and the increment is 10 million."
At this stage, even the national debt that was crazily bought had an annual interest rate of less than 4%, and it was at least 3 years. Later on, Yu 'e Bao was crazily bought by the public, and its annual interest rate was also below 5% for a long time. Therefore, Li Mu offered an annual interest rate of 8%. If it was sold to the whole country, 200 billion USD could be bought overnight. However, neither Li Mu nor Makino Technology had the qualifications to do this kind of financial operation, so Li Mu could only think of a way to do it from the second-generation CSC Club.
An annual interest rate of 8% was definitely very high in the current social environment, but for Li Mu, the cost pressure was not that great. If he calculated 20 billion USD on a yearly basis, the interest would only be a little more than 1 billion USD, maybe even less than 2 billion USD. It was much softer than the capital of Wall Street. Moreover, this money was used to buy Apple. Even if the interest rate was doubled, Li Mu would not bat an eyelid.
As for the time period, it was set at 6 to 24 months. This was to maximize the flexibility of the operation. The specific length of the period depended on the time when the company was listed. If it was listed earlier, the actual interest paid would naturally be lower. If it could be listed after six months, it would be best. If it couldn't be done in six months, then it would take at most two years.
Li Mu had considered the overall situation, so Chen Ze did not ask any more questions. He said straightforwardly, "Okay, I'll inform them through the club's internal messaging platform in the afternoon. Then, I'll upload a subscription page on our official member website."
The CSC Club had a complete set of webpage products, including the official website, the member area, and the member's exclusive backend. Any official activity would have a corresponding activity page on the member's backend. Members could check the activity information on the page, apply for activity registration, or initiate inquiries from the official staff.
Li Mu said, "We've tentatively set the total amount of funds at 22 billion USD. The first round of subscriptions is open for 5 billion USD. There is no limit to the amount of individual subscriptions. After the first round of subscriptions ends, we'll start the second round of subscriptions the next day. The same goes for the third round of subscriptions, and the last 7 billion will be placed in the fourth round."
…
It was 3: 00 PM in Beijing.
All CSC Club members received a text message:
The fund co-founded by the founders of the CSC Club, Li Mu and Chen Ze, will be sold to CSC Club members. The fund's annualized return is 8% with guaranteed interest. Please log in to the member's backend for more details.
The rich second-generation heirs who could join the CSC Club, even if they were ignorant and incompetent, were very sensitive to terms like "annualized return" and "guaranteed interest".
Looking at an annualized return of 8% without looking at the risk would be a hoodlum. Even if the return was 800%, not many people would be interested if there was no guarantee or interest. Even if they were interested, they might not dare to invest. However, it was different if there was a guarantee with guaranteed interest. This was an extremely powerful guarantee in the fund industry. For investors, the only risk came from the guarantee behind the fund. If the guarantee was reliable, the fund could be said to be risk-free.
This fund was co-founded by Li Mu and Chen Ze. With the two of them involved, this fund was equivalent to zero risk in the eyes of the CSC Club members.
Therefore, a large number of members hurriedly logged in to the member's backend and saw the details of this private fund.
Annual interest of 8%, starting from 10 million, 6 to 24 months, guaranteed interest. Just these four points were enough to make everyone's heart flutter. The condition that it was only available to CSC Club members made them feel comfortable with the help of an experienced driver.
For most rich people, they were not worried about not being able to find money, but they were worried about not being able to find good projects with money.
There were many projects with a 100% return, but a 100% return could correspond to a success rate of 10% or even lower. Most people would not dare to touch such a project;
There were also many projects with a 10% return. If the success rate was lower than 70%, most people would not take a second look.
A project with an 8% return, if the success rate was infinitely close to 100%, would be extremely attractive to anyone. It would even cause people to rush in like a flock of ducks.
Looking at Yu Ebao was the best proof. For most people, with Alibaba's endorsement and support, Yu Ebao's investment success rate was infinitely close to 100%. Therefore, even if the annual interest rate was less than 5%, it would cause a large number of users to rush in like crazy.
Then look at the P2P companies that went bankrupt. A bunch of companies that were infinitely close to being shell companies used Ponzi schemes to offer an annual interest rate of 8 to 10%. Even without the support of a large company, it was enough to drive people crazy.
Therefore, a large number of CSC Club members played the same scene in front of their computers:
"Hey, Old Chen, are you interested in a 5% return fund … Of course, it's a return fund with guaranteed interest. There's no risk at all. If you have money on hand and don't have anywhere to invest, you can use it for me … Don't worry, don't you know my family's situation? Do you think I can swallow your tens or hundreds of millions? Don't worry, I'll sign a contract with you. It's written clearly! "
"Boss Xu, how's your fund doing this year … Oh, the investment market doesn't seem to be that good this year. If you lack a stable investment channel, you can look for me. I can't guarantee more, but I'll give you an annual rate of 4 to 5% with guaranteed interest. If you don't have a better project to consider … Of course, it's real. We're family, so why would I lie to you? Specifically, if you get less than 50 million, I'll guarantee you 4%. If you get between 50 million and 100 million, I'll guarantee you 4.5%. If you get more than 100 million, I'll guarantee you 5%! "
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