024 Four Trillion, Oh, Four Trillion

Xia He paused, then suddenly chuckled. "What, are you testing me?"

"No, I am asking for your guidance."

"Very well. The current economic situation is not optimistic." Xia He’s pretty face turned serious. "The impact of the U.S. subprime mortgage crisis is spreading worldwide, looking very much like a repeat of the '97 financial crisis. Our domestic economy is also suffering significantly; exports are down, economic growth is slowing, and employment pressure is increasing—all of which has far exceeded the experts' initial forecasts."

"If that’s the case, the state won't just sit by and watch," Fang Qingye picked up the thread. "They will certainly take a series of countermeasures, especially regarding real estate. It involves building materials, steel, chemicals, machinery, interior design, home appliances... there are at least fifty or sixty upstream and downstream industries linked to it. Therefore, the state is bound to implement a series of stimulus policies."

"You mean to say that the state’s regulatory policy on real estate will shift?" Xia He immediately grasped his meaning.

"Correct. At the end of last year, the state implemented a tightening monetary policy. Since the beginning of this year, the central bank has repeatedly raised interest rates and increased the reserve requirement ratio. Now, the reserve requirement ratio has reached a historic high of 17.5%, which has a massive impact on capital-intensive industries like real estate." Fang Qingye spoke eloquently. "But now, whether abroad or domestically, the economic situation has undergone a tremendous change. The central bank's monetary policy will surely change accordingly—injecting liquidity, lowering the reserve requirement ratio, cutting interest rates... and the scale will be unprecedented!"

Four trillion. Four trillion. Of course, this policy had not been announced yet.

"The state will definitely save the property market, so our providing loans to companies like Kerry is merely following this trend," Fang Qingye concluded.

Xia He fell into deep thought.

"Senior sister, do you know Professor Liu Qingyu from our university?" Fang Qingye asked suddenly.

"Of course I do. He was my mentor and treated me very well back in school. Why do you ask?" Xia He looked up at him.

"Professor Liu is a member of the Central Bank’s Monetary Policy Committee. He has access to much more detailed information than we do at the grassroots level. You could call and ask him."

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

To be honest, she was half-skeptical of Fang Qingye’s words. A change in a nation’s economic policy is a massive undertaking that affects everything; it is not a trivial matter. She took her phone from her bag and dialed a number.

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

"Hello, hello."

"I have encountered some issues in my grassroots work recently and feel a bit confused about the current economic situation. I’d like to ask for your advice, if it isn't too much of an interruption?"

"Understood." Xia He briefly explained the situation.

After the other party finished speaking, a smile appeared on Xia He’s face. "Is that so? That’s wonderful!"

"Yes, I understand. Professor, I will definitely visit you when I go to Shanghai on business. Goodbye."

After hanging up, Xia He looked at Fang Qingye with an expression of admiration. "Little Fang, you’re amazing. You were right—the state's fiscal and monetary policies are about to shift drastically, and very soon."

"Since that’s the case, senior sister, why not be a pioneer? Supporting local economic development and revitalizing the real estate industry is a great deed for the country and the people," Fang Qingye said.

*Be a pioneer?* That phrase struck a chord with Xia He. As a branch manager, she naturally wanted to achieve something; otherwise, why abandon the superior conditions of the provincial capital to work in a county? Deep down, she was a bold woman who enjoyed taking risks. However, she would not share these inner thoughts with the young man before her.

She smiled at Fang Qingye. "You... you’re just trying to get me to go to Manager Zhang and help Kerry with their loan, aren't you? You put it so loftily."

"We are doing a lofty job, at least for now," Fang Qingye said calmly.

"Fine, I will talk to Manager Zhang tomorrow," Xia He decided.

Hearing this, Fang Qingye knew the chances of success were about seventy or eighty percent. Xia He was highly regarded by Manager Zhang, and besides, Manager Zhang was not an overly conservative leader; Xia He had enough reasons to persuade him.

After dinner, Fang Qingye paid the bill and drove Xia He back to her office. After parking his Passat, he rode his small scooter home.

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

Song Qingdong was waiting for news as well. In the chairman’s office on the eighth floor of the Kerry Building, Song Qingdong sat behind a large desk, smoking a cigar in silence. Standing next to him was a capable woman, the company’s deputy general manager, Luo Yan.

"Boss, Manager Qian from Tenglong Industrial just called back. He said their company’s cash flow is also very tight, and they are still trying to recover the 20 million yuan swiped by the Zhejiang Zhilian Technology Company, so they have no extra funds to lend us."

"I expected as much." Song Qingdong took a drag of his cigar and said slowly, "What about Zhang Shuren from Yongli Investment?"

"Manager Zhang agreed to lend us 10 million, but the monthly interest rate is ten percent."

"Ten percent monthly interest? That means we have to pay back 1 million a month?! That bastard Zhang Shuren’s heart is truly pitch black!" Song Qingdong cursed.

"Zhang Shuren said he’s only offering this out of respect for his friendship with you; he charges others twelve percent," Luo Yan added softly.

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

"Boss, should we apply for an extension on that 24 million yuan loan from the Oriental Bank?" Luo Yan suggested.

Song Qingdong shook his head. "An extension is possible, but it would lower our corporate credit rating, which would make future loans difficult. The 38 million yuan loan from the Construction Bank is also due in four months—what do we do then?"

"Then we should ask the county for help. The county leaders wouldn't just watch us collapse, would they?" Luo Yan suggested again.

"I’ve already asked... the county leaders don't have any good solutions either. They promised to lend us 8 million from the county treasury for emergency use, which is already giving me a lot of face. I can't ask for more." Song Qingdong sighed softly. "I wonder how things are going with Fang Qingye?"

"I’ll give him a call and ask," Luo Yan said, reaching for her phone.

"Don't bother. If there were news, he would have called me," Song Qingdong stopped her. "Honestly, I don't have much hope for him."

"Then, what about Director Song?"

Song Qingdong pondered for a moment and sighed slightly. "Don't ask him either. He can't help with matters regarding capital."

The "Director Song" Luo Yan mentioned was Song Qingdong’s younger brother, a leader in the city’s Urban Construction Bureau. She wanted to say something, but swallowed the words and silently put her phone back in her pocket.

"Accept Zhang Shuren’s terms—ten percent it is. Let's borrow it for two months, pool it together to pay off the 24 million to the Oriental Bank, and then we’ll think of something else," Song Qingdong said, making his decision.

"Understood, I’ll take care of it immediately."

Luo Yan turned and left the room. Song Qingdong sat in his chair, smoking in silence.

Just then, the financial director knocked and hurried in, looking completely stunned.

"Chairman Song, we just received a call from the credit department of the Oriental Bank! They said the 24 million yuan loan we applied for has been approved in principle by the municipal branch! But the condition is that we must pay off our previous loans in full!"

Song Qingdong couldn't believe his ears. "It’s really approved? And it’s 24 million, not 10 million?"

"Yes, Manager Zhang called personally. I was afraid I misheard, so I asked again to be sure."

The financial director was also excited; finding money recently had been incredibly difficult.

"Return Manager Zhang’s call immediately. Tell her not to worry, we will definitely pay on time! Also, call Manager Xia and express our gratitude... no, I’ll call Manager Xia myself!"

"Yes, Chairman Song, I’ll handle it right away."

After the financial director left, Song Qingdong took a sip of tea to calm his racing heart, picked up his phone, and dialed a number. But it wasn't to Xia He—it was to Fang Qingye.