"Mr. Huang, it's finally good to see you!" the Vice President of Zhejiang Agricultural Bank said excitedly upon seeing Huang He.
It was no wonder. Huang He was currently very much in demand, and banks had heavy loan quotas to meet. Just securing the business of Jiangnan Group would allow one bank to fulfill 1% of its annual target.
"Mr. Huang, I have prepared a brand new financial plan for your Jiangnan Group. As long as you choose our Agricultural Bank as your partner, I guarantee you more excellent and economical financial services!" the Vice President introduced with a hint of excitement. Huang He examined it closely and found it to be a loan plan of 2 billion RMB, also to be repaid over five years, with a slightly more favorable interest rate than that offered by ICBC.
Moreover, the borrowed funds could be transferred into Agricultural Bank's wealth management services. This meant that while the money was not yet being actively used, it could be directly invested in wealth management to earn interest.
Additionally, this wealth management product calculated returns daily, allowing for funds to be withdrawn at any time. In terms of service, it was indeed quite impressive.
"2 billion RMB doesn't mean much to me right now!" Huang He said, shaking his head after reviewing the plan.
"How much RMB do you need? I guarantee that if it's within 5 billion, I can give you an answer on the spot!" the Vice President replied promptly. While he didn't know the specific profit data of Jiangnan Group, he had heard from friends at ICBC that…
It was rumored that Jiangnan's monthly capital flow through ICBC alone was close to 4 billion RMB, amounting to a staggering 50 billion RMB in annual turnover.
Of course, this referred to capital flow, meaning all funds transferred in and out through ICBC. This included funds Jiangnan transferred to its various manufacturing partners, funds from tens of thousands of stalls and companies nationwide remitted to the headquarters, departmental funding from the headquarters to branches, and salaries for Jiangnan Group employees, among other things.
Due to their cooperative relationship with ICBC, all these capital flows were handled by ICBC, making many other banks drool with envy.
In the eyes of businesses, this capital flow was not their own money and thus had little significance. However, for banks, it represented performance, to be recorded in financial statements and used to boast about their annual achievements and results.
Beyond performance, this money was deposited in the bank's accounts, allowing the bank to lend it out. As long as it didn't fall below reserve requirements, these extra billions of RMB would continuously generate more profits through the cycle of money making money.
Any provincial bank manager who could control such a large capital flow would see their status rise dramatically. This was precisely why the Agricultural Bank's president held Huang He in such high regard.
The statement "borrow whatever you need within 5 billion" sounded incredibly generous, but with Jiangnan's current massive turnover, 5 billion was indeed not a significant amount.
"No need for 5 billion, I only need 1 billion!" Huang He said with a smile.
"Only 1 billion?" The Vice President blinked, then asked tentatively, "You're not talking about US dollars, are you?"
"You're truly too perceptive!" Huang He chuckled. "That's right, I do need 1 billion US dollars. To be frank, I'm about to travel to the United States and plan to make some investments, which will require a sum of US dollars."
"1 billion US dollars…" The Vice President was in a bit of a bind. He had the authority to approve 5 billion RMB, but even for 100 million US dollars, let alone 1 billion, he lacked the authority. US dollars were foreign exchange. Small amounts were manageable, but large amounts required central bank oversight.
In other words, this 1 billion US dollars would first need to be approved by the head office and then by the central bank before it could be lent out. This was not something a provincial vice president could decide.
"Alright, let's set that aside for now. I actually have a more important matter I'd like to consult you about!" Huang He said with a smile.
"What is it?"
"It's about online banking!" Huang He stated plainly.
"Oh, does Jiangnan Group require online banking services?" the Vice President asked with a smile. "Rest assured, as long as you cooperate with our Agricultural Bank, you will be our super VIP customer. Any banking service can be handled with just a phone call to us. We provide 24-hour service, so you don't need the hassle of online banking!"
"No, I think you've misunderstood my meaning. It's not that Jiangnan Group needs online banking services, but rather that Jiangnan Group's operations need to fully integrate online banking services!" Huang He smiled. "For example, we often encounter customers who run out of cash and can no longer make purchases. However, if they could directly transfer funds to us through their bank cards, via the internet, and online banking, our efficiency would undoubtedly increase significantly."
"Furthermore, this is just the simplest form of cooperation. We might be able to develop more in-depth collaborations in online banking."
"Yes, that is also what I am looking forward to. However, we haven't released relevant regulations yet. Perhaps in the second half of 2003, we will launch a related system. You might have to wait for a year or two. Moreover, China's internet penetration is still not high enough. The total number of online banking users nationwide is less than 200,000. This is not urgent at the moment!" the Vice President said with a smile.
"Is that so?" Huang He fell silent. The atmosphere of the subsequent conversation shifted. The Vice President keenly sensed that Huang He might be very disappointed with his previous answer, and this business deal was unlikely to proceed further.
"Mr. Huang, regarding the 1 billion US dollars, I will do my utmost to apply with the head office!" the Vice President said sincerely as they were about to part.
"Alright, but you don't need to worry too much. 1 billion US dollars isn't the most important thing. Let it happen naturally!" Huang He said with a slight smile, then left the Agricultural Bank with Hu Jing, leaving behind a somewhat bewildered Vice President who didn't understand the meaning of Huang He's final remark.
1 billion US dollars wasn't the most important thing? Was the matter concerning online banking the most important?
But for a large enterprise like Jiangnan, there shouldn't be anything that critical. Handling business with a phone call should suffice; why the insistence on online banking?
"Chairman, Director Wang just called three times. He said he has arrived in Hangzhou and wishes to invite you for a simple dinner this evening," Hu Jing said as they left the Agricultural Bank's headquarters.
"He's here so quickly!" Huang He was startled. He had expected to see Director Wang tomorrow or the day after.
"Actually, Director Wang is no longer the president of the Wenzhou ICBC. He is now the Vice President of Zhejiang Provincial ICBC," Hu Jing reminded him.
"Oh, since when? I didn't even know he got promoted!" Huang He grinned. Moving from Wenzhou to Zhejiang Province was indeed a promotion.
"Just a week ago, when you were not in Wenzhou." Hu Jing, as a secretary, had indeed been chosen correctly. She had information that even Huang He was unaware of.
---
"Nonsense, I was promoted in name but demoted in reality!" Director Wang said bluntly as soon as he saw Huang He. He then poured himself a large glass of Maotai, surprising Huang He with his demeanor. The Director Wang he had interacted with previously didn't seem like this.
"Xiao Huang, don't be surprised. This is how I am in private. Anyway, I'm no longer in charge of any specific business, and I'm too lazy to bother with matters at the head office. The higher-ups are determined to have me retire, so I consider you a friend across generations. Just let me vent; I've been feeling so stifled this past week!" Director Wang, without anyone to offer him a drink, poured himself half a pot of Maotai and grumbled, pouring out all his grievances.
It turned out that after establishing stable financial relations with Jiangnan Group, Director Wang had successfully been promoted to president of the Wenzhou ICBC, becoming the de facto head.
However, his good days lasted less than half a year. A week ago, a transfer order arrived, and Director Wang became the Vice President of Zhejiang Provincial ICBC.
This sounded like a higher position, but Director Wang's responsibilities had shifted from loan business to general affairs at the head office, overseeing the daily needs of everyone in the entire building.
Those who understood the implications knew what this meant. Director Wang had been demoted while being promoted. He himself stated that he estimated he would retire after serving one more term in this Vice President position.
Director Wang was deeply frustrated and sought out Huang He to vent all his dissatisfaction. In the end, he patted Huang He's shoulder and said, "Xiao Huang, Chairman Huang, Old Wang has no other hopes in this life; I can only count on you, my friend. When I retire, could you perhaps offer me a consultant position in your company?"
"I risked my neck to help you secure loans back then. You wouldn't be so heartless, would you?" Director Wang said with a foolish grin, causing Hu Jing behind him to frown. Huang He, however, maintained a smile.
"Don't worry, Old Wang, I'll help you get revenge!" Huang He smiled. "I approached your bank for the loan with you in mind. Now that the Agricultural Bank has approached me, and since you've lost face, I won't give your bank face either. I'll repay all the loans ahead of schedule the day after tomorrow and transfer all my business to the Agricultural Bank. Let those who harmed you know that our Jiangnan Group only recognizes you, Old Wang; we don't care about anyone else!"
"Ahem, perhaps that's not necessary. After all, I'm still with ICBC. However, the provincial head office can also handle loans. If you get a loan from the provincial bank, you'll have greater authority!" Director Wang said, grinning.
"Aren't you in charge of general affairs at the head office now?" Huang He asked with a smile.
"But if someone in charge of general affairs can bring in business, wouldn't those in charge of the main work lose face?" Director Wang's face showed a look of hatred.