Chapter 390 Heavy Blow (Please do not subscribe if you have read the original manuscript!!)

my country's housing reform policy was officially introduced in 1998.

In order to increase the per capita housing area, drive the development of related industries, and cope with the financial crisis, the "Housing Commercialization Replaces the Welfare Housing Distribution System" was issued that year. This policy put an end to the housing distribution system in kind and began to implement the monetization of housing distribution, which has far-reaching significance for the development of commercial real estate and the real estate industry.

However, the epoch-making policy that truly drove China's commercial real estate and real estate industries to experience explosive growth was the tax-sharing reform policy.

In the 90s, before the tax-sharing reform, many places lived comfortably under the fiscal contracting system. But the problem was that the proportion of fiscal budget revenue in total revenue was getting lower and lower. Without sufficient financial resources, it was not conducive to promoting reform, let alone narrowing the gap in basic public services between regions and providing basic guarantees for compulsory education.

Based on this background, the tax-sharing reform was introduced in 94.

Now the higher-ups have money, but a new problem arises: the local governments are poor, resulting in a mismatch between administrative power and financial power. There are more things to do at the local level, but less money to handle them.

This won't work.

As the saying goes, if you don't have rice in your hand, even the chickens won't come.

Local governments need revenue to promote large-scale infrastructure construction. Therefore, in an effort to increase the scale of tax revenue, local governments have opened up "land finance" around land transfer and development.

The birth of land finance means that at the most core level of financial power, the core foundation has been laid for the commercial real estate industry to usher in explosive growth.

The tax-sharing reform policy was introduced in 1994.

That year is known as the first year of commercial real estate in China.

Of course, as early as before 94, there were courageous grassroots people who plunged into this industry and turned into dragons when the rain came.

In the spring of 1993, there was a northern man who would later become the richest man in history. He borrowed 2000 million yuan from the bank through his boss, and then used the loan to acquire a state-owned wire factory. A real estate company registered by the man successfully obtained the red line map of the wire factory's 2000 acres of land. His company then used the red line map of the 200 acres of land to borrow 200 million yuan from the bank to engage in commercial real estate and real estate development.

This routine has been played out in China as early as 1992.

But at that time, most people who understood this kind of tricks were outstanding people in the business field.

Is Gao Shan an outstanding person?
In Jiangchuan, he should be considered.

At least in the commercial real estate sector, he adopted the same high-leverage model that made him famous in Jiangchuan.

In the mid-90s, real estate was not popular in third-tier cities like Jiangchuan, but the commercial real estate sector had a good development space. Beimen Street Commercial City, Phoenix Entertainment Center, Fulaisen Hotel, etc. were all developed by Gaoshan's Phoenix Group. These projects have two core characteristics: one is extremely high leverage, and the other is to spend money all the way to open up various subsequent land purchase procedures and related commercial construction activities.

Gao Shan has been doing well over the years.

However, the two large-scale commercial real estate projects, Red Star Electronics Factory and Times Commercial Lane, which were linked to each other, caused him to suffer his biggest Waterloo in history.

In order to build these two projects, Gao Shan borrowed a huge amount of money from the bank. For the Red Star Electronics project alone, the initial investment in land transfer fees reached tens of millions of yuan. In addition, he spent money all the way to open the gates of various checkpoints.

However, over the past two years, due to the meddling of the Municipal State-owned Investment Corporation, not to mention the Times Commercial Lane project, the Phoenix City Group has not even acquired the land for Red Star Electronics. Its capital chain is facing tremendous pressure, and its financial risks are indeed increasing.

At the moment, what really puts Gao Shan and his Huangcheng Group in a dilemma is that the establishment of the Municipal State-owned Investment Corporation has resulted in him being unable to follow his original business model, and unable to join forces with shell foreign companies to start with the bankruptcy and reorganization of state-owned enterprises, avoid bidding, and exchange certain investment compensation for various policy supports.

What is even more terrible is that after the Municipal State-owned Investment Corporation took control of the state-owned enterprises under it, it no longer easily sells the prime land in the city center. Instead, it uses the prime land and factory areas for contracting operations and exploring the development of various professional business markets.

As a result, the business model that made Phoenix Group successful in the first place seems to have no need to exist.

Yang Jiarong had in fact already tried to kill Gao Shan.

At present, the two core projects are stuck in hand, but the money has been invested. After two years, the financing interest and fees are staggering, but new projects cannot be obtained. From the perspective of liquidity, Phoenix City Group has also faced severe challenges!
However, times have changed and there is always a way out.

Before Jiangchuan, the restructuring of state-owned enterprises all adopted models such as direct bankruptcy reorganization, shareholding reform, and private enterprise acquisition, which provided huge room for profit.

However, Yang Jiarong wanted to set up a municipal state-owned investment company to control the city's state-owned enterprises, and then transform those that were on the verge of bankruptcy. Now, as the municipal state-owned investment company's hands extend further and further and continue to control the city's state-owned enterprises, it has already touched the cake of too many people.

The relationship between Yuan Qingsen and Yang Jiarong is very tense.

The structural contradiction between the two had existed for a long time, but in the late spring of 1995, it quietly reached a white-hot stage.

However, for Gao Shan and his Phoenix Group who are in trouble, what do you call this?
A glimmer of hope!
He knew very well that although the Phoenix Group and Senhai Group were in a lawsuit over the Red Star Electronics land, as long as the municipal state-owned investment company stood in his way, it would be impossible for him to take over Red Star Electronics. The lawsuit had become a tug-of-war with no outcome in sight. Now Zhao Jianqiang was clearly trying to drag him to death. Therefore, he could only follow Yuan Qingsen closely to successfully take over the Red Star Electronics and Times Commercial Lane projects, and the current bad situation of the Phoenix Group would still have room for recovery.

Under such circumstances, can Zhang Yunqi, the actual planner and firm executor of the "Jiangchuan Model", have any good results?
Gao Shan has no problem with Zhang Yunqi.

He has always admired this young man.

After all, Gao Shan followed Yuan Qingsen, and Zhang Yunqi chose Yang Jiarong, so the result could only be this.

Under his planning, the criticism against Zhang Yunqi, Liansheng Group and the "Jiangchuan Model" has swept across Jiangchuan City like a tsunami. The effect is also satisfactory.

Now with Huo Jianzhong's accident, the situation has become clearer.

Although Zhang Yunqi and Huo Jianzhong exaggerated when Liansheng bought Longjingyuan Canning Factory for 0 yuan, Gao Shan was indeed very sorry that he could not find any evidence of the two people's connection, but it was no longer important now, Zhang Yunqi had been taken away. In Jiangchuan, many things can be artificially confirmed.

Gao Shan knew that he was only one step away from victory.

Yang Jiarong took this step.

As long as Yang Jiarong XX, Jiangchuan's idea of ​​state-owned enterprise reform will immediately change.

However, this step is the most difficult.

No one in Jiangchuan can do this.

Gao Shan can collect information about Yang Jiarong and present it to Yuan Qingsen, but the person who can decide Yang Jiarong's fate is not Yuan Qingsen, but the people above.

This depends on Yuan Qingsen.

At this moment, Gao Shan has done everything he can. He just needs to wait, and can only wait.

Of course, while waiting, he was also watching the recent changes in Liansheng Group, but the statements of Liansheng Group proving its innocence were no longer important to him. The general trend of public opinion had already been formed, and the rest of the things would just go with the flow.

Gao Shan stood in front of the huge floor-to-ceiling window, with his hands behind his back, looking into the distance, thinking about these things with great confidence.

This is the top floor of the Jinmao Building, with an excellent view.

Outside the window, the rain that had been falling for many days finally stopped; in the distance, a ray of sunlight suddenly floated up, piercing through the sky covered with dark clouds, and sprinkled into the office through the floor-to-ceiling windows, creating a golden color.

In the ancient office, the sound of melodious opera was ringing: "I once saw the orioles singing in the Jade Palace of Jinling at dawn, and the flowers blooming early in the Qinhuai Waterside Pavilion, but who knew that the ice would melt so easily? I watched him build a red building, I watched him entertain guests, and I watched his building collapse. I once slept in this pile of green moss and tiles, and watched the rise and fall of fifty years."

"Duo! Duo! Duo!"

At this moment, there was a knock on the door behind me.

Gao Shan sat back at the mahogany desk and said, "Come in."

The door opened and in came his female secretary Xu Yun.

Xu Yun was not beautiful, but she was a steady, well-educated and intellectual woman, and was highly respected by Gao Shan. However, at this moment, she looked a little inexplicably worried: "Boss Gao, something happened."

Gao Shan frowned: "What?"

Xu Yun said: "I just received news that the Jiangchuan branch of the Agricultural Bank of China applied to the court to freeze our funds in the bank."

Gao Shan slapped the desk with his hand and said angrily: "What are they going to do?"

He reacted extremely quickly, realizing that if ABC opened this loophole, other banks and suppliers might hear the news and act, causing panic and dealing a heavy blow to the extremely fragile capital chain of the Phoenix Group!
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(End of this chapter)