Chapter 25: 024 Four Trillion, Oh, Four Trillion

Xia He froze for a moment, then suddenly giggled: "What, you're testing me?"

"No, I'm asking for your guidance."

"Alright, the current economic situation is not optimistic." Xia He's pretty face grew serious:

"The U. S. subprime mortgage crisis has affected the whole world, looking very much like a repeat of the '97 financial crisis. Our country's economy has also been hit hard—export decline, economic growth slowdown, increased employment pressure, and so on—far beyond what the experts predicted."

"Since that's the case, the state won't just sit by and do nothing." Fang Qingye picked up the thread:

"They will definitely adopt a series of response measures, especially in real estate, which involves building materials, steel, chemicals, machinery, decoration, home appliances... the upstream and downstream related industries number at least fifty or sixty, so the state will certainly roll out a series of stimulus policies."

"You mean the state's real estate regulation policy is going to change direction?" Xia He immediately understood what Fang Qingye was saying.

"Right. At the end of last year, the state implemented a tight monetary policy. This year, the central bank started raising interest rates and raising the reserve requirement ratio one after another. Now the bank reserve requirement ratio has been raised to a historic high of 17.5%, which has a huge impact on capital-intensive industries like real estate."

Fang Qingye spoke at length:

"But now, whether abroad or at home, the economic situation has undergone tremendous changes. The central bank's monetary policy will definitely change accordingly—loosening, lowering the reserve requirement ratio, cutting interest rates... and the scale will be unprecedented!"

Four trillion. Four. Trillion.

Of course, this policy hasn't come out yet.

"The state will definitely rescue the property market, so our lending to companies like Kairui is just going along with this trend." Fang Qingye finally stated his view.

Xia He fell into thought.

"Senior, do you know Professor Liu Qingyu from our school?" Fang Qingye suddenly said again.

"Of course I know him, he's my advisor. He was very good to me when I was studying. What's up?" Xia He raised her head to look at him.

"Professor Liu is a member of the central bank's Monetary Policy Committee. He knows far more detailed information than we grassroots folks. You could give him a call and ask."

"Xiao Fang, you even thought of this?" Xia He laughed: "Alright, I'll give him a call."

To tell the truth, she was only half-convinced by Fang Qingye's words.

A change in a country's economic policy moves the whole body with one hair—not something to trifle with.

She took out her phone from her bag and dialed a number.

"Professor Liu, hello, this is your student Xia He."

"Hello, hello."

"I've run into some problems in my grassroots work recently, and I'm a bit confused about the current economy. I'd like to ask for your advice—am I taking up your time?"

"Okay." Xia He briefly explained the situation.

After the other party finished speaking, a smile broke across Xia He's face: "Really? That's great!"

"Mm, I understand. Teacher, when I go to Shencheng on a business trip I'll definitely come see you. Goodbye."

After hanging up, Xia He looked at Fang Qingye with an admiring expression: "Xiao Fang, you're really impressive. You called it right—the state's fiscal and monetary policies are about to make a big turn, and very soon."

"In that case, Senior, why not dare to be the first? Support local economic development, revitalize the real estate industry—this is a great thing that benefits both the country and the people." Fang Qingye said.

Dare to be the first?

That phrase struck a chord deep within Xia He.

In the position of branch president, of course she wanted to make some achievements—otherwise why give up the provincial capital where everything was superior and come to a county town?

Deep down, she was also a bold woman who loved taking risks.

Of course, these hidden inner thoughts she would never reveal to the young man in front of her.

She smiled, looking at Fang Qingye: "You... aren't you just asking me to go find President Zhang and help Kairui get a loan? You sure dress it up nicely."

"What we're doing is already a very noble undertaking, at least right now." Fang Qingye said lightly.

"Fine, tomorrow I'll go talk to President Zhang." Xia He made her decision.

Hearing this, Fang Qingye knew the odds of success were seventy to eighty percent.

Xia He was someone President Zhang valued highly, and besides, President Zhang wasn't the overly conservative type of leader—Xia He had ample reason to convince him.

After the meal, Fang Qingye paid the bill, then drove Xia He back to her unit. The Passat was parked in the garage, and only then did he ride his little scooter home.

The next day, Xia He indeed went to the municipal bank early in the morning, and Fang Qingye quietly waited for news.

The same news was awaited by Song Qingdong.

In the chairman's office on the eighth floor of Kairui Tower, Song Qingdong sat behind a broad boss's desk, silently smoking a cigar.

Standing beside him was a sharp, capable woman—company vice general manager Luo Yan.

"Boss, President Qian from Tenglong Industries just called me back. He said their company is also pretty tight on funds right now, and the 20 million that was swindled away by Zhè-shěng Zhilian Technology Company is still in the process of being recovered. They don't have spare funds to lend us."

"I already anticipated that." Song Qingdong took a puff of his cigar and said slowly: "What about Zhang Shuren at Yongli Investment?"

"President Zhang did agree to lend us 10 million, but at ten percent monthly interest."

"Ten percent monthly? That's 1 million a month?! That bastard Zhang Shuren's heart is damn black!" Song Qingdong couldn't help cursing.

"Zhang Shuren said this is out of regard for his friendship with you, Boss. Anyone else who came to borrow would get twelve percent monthly." Luo Yan added softly.

"Sigh..." Song Qingdong let out a long breath and said nothing more.

"Boss, why don't we just apply to defer the 24 million loan from Dongfang Bank?" Luo Yan suggested.

Song Qingdong shook his head.

"Deferring is possible, but it would lower our corporate credit rating and make future loans troublesome. The 38 million loan from CCB also matures in four months—what do we do then?"

"Then try the county and see if they can help. The county leaders can't just watch us collapse like this, can they?" Luo Yan suggested again.

"Already tried... the county leaders don't have a good solution either. They agreed to lend us 8 million from county finances as emergency funds, which already gave me a lot of face. I can't make any more demands." At this point, Song Qingdong sighed softly: "I wonder how things are going on Fang Qingye's end?"

"I'll give him a call and ask." Luo Yan said, taking out her phone.

"Don't bother. If there's news, he'd definitely call me." Song Qingdong stopped her: "Honestly, I don't have much hope in him."

"Then, what about Director Song?"

Song Qingdong heard this, thought for a moment, and sighed softly: "Don't look for him either. When it comes to funding, he can't help."

The Director Song Luo Yan mentioned was Song Qingdong's younger brother, a leader at the municipal Chengjian Bureau.

She wanted to say something, but held it back, silently putting her phone back into her pocket.

"Agree to Zhang Shuren's request; one-tenth of a percent interest it is. Borrow for two months first, scrape together the funds to repay the 24 million loan from Dongfang Bank, then we'll figure out other solutions." Fang Qingdong took a drag of his cigar and finally made his decision.

"Understood, I'll handle it immediately."

Luo Yan turned and left the room.

Song Qingdong sat in the boss's chair, smoking silently.

Just then, the Financial Director rushed in after knocking hurriedly, her face filled with disbelief.

"Chairman Song, we just received a sudden call from the Credit Department of Dongfang Bank. They say the 24 million loan application has been approved in principle by the municipal branch! But the condition is that all previous loans must be repaid in full!"

Song Qingdong could hardly believe his ears.

"They really agreed? And for 24 million, not 10 million?"

"Yes, Zhang Kezhang called personally. I was afraid I hadn't heard clearly, so I asked again specifically."

The Financial Director was also very excited; she had found it incredibly difficult to find money recently.

"Call Zhang Kezhang back immediately and reassure her that we will absolutely repay on time! Also, call President Xia to express our gratitude... no, I'll call President Xia myself!"

"Understood, Chairman Zhao, I'll handle it immediately."

After the Financial Director left, Song Qingdong took another sip of tea, calmed his excited feelings, picked up his phone, and dialed a number.

However, it wasn't a call to Xia He, but to Fang Qingye.