Xia He was momentarily stunned, then suddenly chuckled coquettishly: “What, are you testing me?”
“No, I’m seeking your advice.”
“Alright, the current economic situation is not optimistic.” Xia He’s pretty face turned serious:
“The U.S. Subprime Crisis has affected the entire world, showing strong signs of repeating the 1997 financial crisis. Our country’s economy has also been significantly impacted, with declining exports, slowing economic growth, and increasing employment pressure, all far exceeding experts’ predictions.”
“Since that’s the case, the state won’t sit idly by.” Fang Qingye took over the conversation:
“They’re certain to adopt a series of countermeasures, especially in the real estate sector. It involves upstream and downstream industries like building materials, steel, chemicals, machinery, decoration, home appliances… at least fifty or sixty related fields. So the state will definitely implement a series of stimulus policies.”
“You mean the state’s real estate regulation policies will shift direction?” Xia He immediately understood what Fang Qingye meant.
“Exactly. Since the end of last year, the state has implemented tight monetary policies. Starting this year, the central bank has repeatedly raised interest rates and reserve requirement ratios. Now the reserve requirement ratio has reached a historical high of 17.5%, which greatly impacts capital-intensive industries like real estate.”
Fang Qingye spoke confidently:
“But now, whether internationally or domestically, the economic situation has undergone tremendous changes. The central bank’s monetary policy will certainly change accordingly – implementing monetary easing, lowering reserve requirement ratios, cutting interest rates… and with unprecedented intensity!”
Four trillion, oh four trillion.
Of course, this policy hadn’t been announced yet.
“The state will definitely rescue the property market, so our loans to companies like Kerry are simply following this trend.” Fang Qingye finally stated his viewpoint.
Xia He fell into deep thought.
“Senior, do you know Professor Liu Qingyu from our university?” Fang Qingye suddenly added.
“Of course I know him. He was my mentor and treated me very well during my student days. Why do you ask?” Xia He looked up at him.
“Professor Liu is a member of the central bank’s monetary committee. He has much more detailed information than us grassroots workers. You could call and ask him.”
“Xiao Fang, you even thought of that?” Xia He laughed: “Alright, I’ll call and ask.”
To be honest, she was somewhat skeptical of Fang Qingye’s words.
Changes in a country’s economic policies affect everything – this was no joking matter.
She took out her phone from her purse and dialed a number.
“Professor Liu, hello, this is your student Xia He.”
“Hello, hello.”
“I’ve encountered some issues in my grassroots work recently and have some confusion about the current economy. I’d like to consult you, if it doesn’t take up too much of your time?”
“Okay.” Xia He briefly explained the situation.
After the other party finished speaking, a smile appeared on Xia He’s face: “Really? That’s wonderful!”
“Yes, I understand. Professor, I’ll definitely visit you when I’m on business in Shanghai. Goodbye.”
After hanging up, Xia He looked at Fang Qingye with admiration: “Xiao Fang, you’re really amazing. You were right – the state’s fiscal and monetary policies are about to make a major shift, very soon.”
“Since that’s the case, senior, why not dare to be the first? Supporting local economic development and revitalizing the real estate industry would be greatly beneficial for both the country and the people.” Fang Qingye said.
Dare to be the first?
These words struck a chord with Xia He.
As the branch manager, she naturally wanted to achieve something noteworthy—otherwise, why would she have given up the superior conditions of the provincial capital to come to this county town?
Deep down, she was a bold woman who enjoyed taking risks.
Of course, she wouldn’t share these private thoughts with the young man in front of her.
She smiled and looked at Fang Qingye: “Aren’t you just trying to get me to go see Director Zhang and help Kairui secure a loan? You make it sound so grand.”
“What we’re doing is indeed grand, at least for now,” Fang Qingye said calmly.
“Alright, I’ll go talk to Director Zhang tomorrow,” Xia He made her decision.
Hearing this, Fang Qingye knew there was a seventy to eighty percent chance of success.
Xia He was highly regarded by Director Zhang, and besides, Director Zhang wasn’t the overly conservative type—Xia He had plenty of reasons to persuade him.
After the meal, Fang Qingye paid the bill, drove Xia He back to her workplace in his Passat, parked the car in the garage, and then rode his scooter home.
The next day, Xia He indeed went to the city bank early in the morning, and Fang Qingye quietly waited for news.
Song Qingdong was also waiting for the same update.
In the chairman’s office on the eighth floor of Kairui Tower, Song Qingdong sat behind his large executive desk, silently smoking a cigar.
Standing beside him was a capable woman—the company’s deputy general manager, Luo Yan.
“Boss, President Qian from Tenglong Industry just called back. He said their company is also facing tight funds recently, and they’re still trying to recover the 20 million yuan that was embezzled by Zhejiang’s Zhilian Technology Company. They don’t have extra funds to lend us.”
“I already expected that,” Song Qingdong took a puff of his cigar and said slowly, “What about Zhang Shuren from Yongli Investment?”
“Director Zhang agreed to lend us 10 million, but at a monthly interest rate of 10%.”
“10% monthly interest? That means we’d have to repay 1 million a month?! That bastard Zhang Shuren is downright ruthless!” Song Qingdong couldn’t help but curse.
“Zhang Shuren said he’s only offering this rate because of his relationship with you. For others, it’s 12% monthly interest,” Luo Yan added softly.
“Ah…” Song Qingdong let out a long sigh and said nothing more.
“Boss, why don’t we apply for an extension on the 24 million loan from Dongfang Bank?” Luo Yan suggested.
Song Qingdong shook his head.
“An extension is possible, but it would hurt our company’s credit. It would make future loans more difficult. Besides, the 38 million loan from China Construction Bank is due in four months—what do we do then?”
“Then let’s try asking the county for help. The county leaders can’t just stand by and watch us collapse, can they?” Luo Yan suggested again.
“I’ve already asked. The county leaders don’t have a good solution either. They’ve agreed to lend us 8 million from the county’s finances as an emergency measure—that’s already a big favor. I can’t ask for anything else.” At this point, Song Qingdong sighed softly. “I wonder how things are going on Fang Qingye’s end?”
“I’ll call him and ask,” Luo Yan said, taking out her phone.
“Don’t bother. If there’s any news, he’ll definitely call me,” Song Qingdong stopped her. “To be honest, I don’t have high hopes for him.”
“What about Director Song?”
Song Qingdong thought for a moment and sighed slightly. “Don’t bother him either. He can’t help with funding.”
The Director Song mentioned by Luo Yan is Song Qingdong’s younger brother, who holds a leadership position in the city’s Urban Construction Bureau.
She wanted to say something but held back, silently returning her phone to her pocket.
“Agree to Zhang Shuren’s terms. Ten percent interest is fine—we’ll borrow for two months first, pool the funds to repay Dongfang Bank’s 24 million loan, and then figure out other options,” Song Qingdong took a puff of his cigar and finally made the decision.
“Understood, I’ll handle it immediately.”
Luo Yan turned and left the room.
Song Qingdong sat silently in his executive chair, smoking.
Just then, the financial director hurriedly knocked and entered with an incredulous expression.
“Director Song, we just received an unexpected call from Dongfang Bank’s Credit Department. They said the city branch has in principle approved our 24 million loan application! But the condition is that we must fully repay our previous loan first!”
Song Qingdong could hardly believe his ears.
“Really approved? And for 24 million, not 10 million?”
“Yes, it was Section Chief Zhang who called personally. I double-checked because I was afraid I misheard.”
The financial director was equally excited—she had been struggling immensely lately to secure funds.
“Immediately call Section Chief Zhang back and assure her we’ll repay on time without fail! Also, call their Director Xia to express our gratitude—no, wait, I’ll personally call Director Xia!”
“Understood, Director Zhao, I’ll get it done right away.”
After the financial director left, Song Qingdong took a sip of tea to calm his exhilaration, then picked up his phone and dialed a number.
However, it wasn’t Xia He he called—but Fang Qingye.