Chapter 1019: Fucked

When interests are highly consistent, they can hit it off.

On the morning of May 5, Liu Chengwei informed the Party Secretary of China National Offshore Oil Corporation and other members of the Party Leadership Group on the phone about the secret visits of Tang Xueqian, Zhang Ke, Ye Jianbin and others in the late night. The Party Leadership Group of the National Offshore Oil Corporation was able to agree to cooperate with Jinhu and the Jiangnan Provincial Party Committee and the Provincial Government through a brief discussion.

The Hong Kong listing financing plan is extremely important for CNOOC's next development layout and cannot be missed. When the prospects are bleak, the financial investment plan with a total of US$400 million in Kumho is like giving carbon in the snow. Liu Chengwei, deputy secretary of the Party Committee of CNOOC, felt that he had saved his life.

CNOOC Oil Station has its own political or interest position, and it also has to resist Mitsui Products reaching out to the East China Sea oil and gas field. It has previously considered that it might fail to go public and financing. If it lacks confidence, it will be soft and has no say. The current success of listing financing has greatly improved, so it will be more confident to boycott it.

CNOOC wants to enter the refined oil market, it is to grab food from Sinopec and CNOOC. Since the Jiangnan Provincial Government is willing to cooperate, CNOOC is willing to rob and acquire Kingsoft Oil and accept Kingsoft Oil’s gas station assets and refinery assets. Even if CNOOC has a foundation in the refined oil market, although it is very weak, it can still invest in the construction of a larger-scale oil refining base in the Dongshan Port Industrial Zone, invest in the construction of more gas stations in Jiangnan Province, and even support private capital to invest in the construction of gas stations first. As long as CNOOC can be opened first, Sinopec’s monopoly layout is enough.

When Liu Chengwei and Ye Jianbin flew to Hong Kong to discuss the financial investment agreement, On the one hand, the National Offshore Oil Corporation ordered the East China Branch of the base company to conduct substantial negotiations on the investment agreement for the production support base project with Xinting Local Government. On the other hand, Zhang Chengyu, deputy prime minister of the National Offshore Oil Corporation, flew to Jinshan to negotiate with the Jiangnan Provincial Government about the investment and construction of a large refining and chemical industrial base in Dongshan Port and the acquisition of local refining and refined oil sales business assets under the Jiangnan Provincial Government. At the same time, the National Offshore Oil Corporation launched public relations at the central high-level to promote the Planning and Development Commission to adjust the integration plan for the Jiangnan Provincial oil industry. When the proposal of Mitsui Products was still discussed below the ministry and commission level, the National Offshore Oil Corporation also firmly issued a boycott voice.

CNOOC's posture suddenly became tough, which surprised Hikaru Ikesaki, but everything was temporarily hidden under the water, and Hikaru Ikesaki could not find out where the problem was.

"Can you know where the problem is?" Hirozo Ikesa sat cross-legged on the tatami, looking at his friend in China, Yuzo Miyamoto, secretary of the RB Embassy in China, and asked him.

"The Mitsui intelligence department has not collected useful information?" Yuzo Miyamoto's forehead was slightly bald. He had just been promoted from the Embassy Secretary to the position of clerk this year. He enjoyed his life in China and Beijing and was used to talking to Hirozo Chi Sa in Chinese. He knew that the Mitsui Economic Research Institute used the numerous branches of Mitsui Products to collect information on Asian economic industries in an extremely powerful way.

"CNOOC's oil and gas exploration and development business in the Xijiang River in the South China Sea and Xinyi in the Bohai Bay and other waters all require a large amount of money. According to the information submitted by the institute, CNOOC's overseas listing financing plan did not go smoothly," Chi Zuoxuezang couldn't understand how the officials of Chinese central enterprises who were used to being self-protection could have made such a tough statement. He surveyed his friends and asked, "At this time, they clearly stated that they would reject our Mitsui's investment. Aren't they afraid of being attacked by political enemies in the face of the setback of overseas listing plans? They do not have the ability to list and financing overseas, but they are still qualified to pick up the cooperation funds that come to their door..." Chi Zuoxuezang's last sentence was imitating the tone of imaginary Chinese officials questioning political enemies.

"As far as I know, CNOOC and its long-term partner Phillips Petroleum are also having an unpleasant situation in the Xinyi Oilfield exploration project. If we lose the support of Phillips Petroleum, CNOOC's situation will be even more embarrassing - their attitude is a bit strange." said Yuzo Miyamoto.

"It's not just strange, it's simply abnormal. How many Chinese officials have strong backbone? But they all gathered at CNOOC?" Chi Zuoxuezan's tone was a little disdainful and sarcastic. He had contacted Chinese officials in Beijing and knew that even if many Chinese officials were not too greedy, they would take a gentle stance of self-protection. He complained to Miyamoto Yuzo, "As for Mitsui Products itself, they have no special desire for demarcation of oil and gas fields. If they can participate in development, they can participate in development. If they cannot participate in development, they must also delay CNOOC's development to the greatest extent. I also called the person in charge of the China office of the oil exploration and mining company, and asked the office to find out what was wrong as soon as possible."

"I think preventing CNOOC's overseas listing financing can essentially effectively prevent China's oil industry from extending and developing to the ocean, and can also produce a series of chain reactions that are beneficial to RB," said Miyamoto Yuzo. "When it is unclear where the problem lies, stopping CNOOC's overseas listing plan through various means can actually achieve the effect we want to expect. Even if this huge tide is destined to rise, we must delay its rise as much as possible."

"Hong Kong is China's special administrative region. CNOOC is going to list on the Hong Kong United Stock Exchange for financing this time. How should we exert influence?" Chi Sashuzo didn't want to discuss any major principles with Miyamoto Yuzo, so he directly asked some more pragmatic questions, "Suppress crude oil futures, or let the Economic Research Institute release an analysis report that is unfavorable to CNOOC..."

"This is also something we can do-" said Miyamoto Yuzo. "As an Asian financial center, Hong Kong is more prepared, a financial and economic center for Chinese businessmen around the world, especially tens of millions of Chinese businessmen in Southeast Asia. The group of Chinese businessmen is the most widely distributed in Southeast Asian countries. Generally speaking, Southeast Asian countries have little influence on overseas capital markets, but for the reasons I mentioned above, Southeast Asian countries have a considerable impact on Hong Kong's capital market..."

"Oh, I know, it's a good idea," Chi Zuoxue nodded and said with a smile, "But there are not only these companies that want to stop CNOOC from going public overseas... It's just that some people are just making trouble. We want to help push them."

China cannot help but have disputes with RB over the demarcation of the East China Sea, and there are fierce contradictions with Southeast Asia's Philippines, Indonesia, Malaysia, Vietnam and other countries in the South China Sea. Maritime disputes are ultimately disputes about the ownership of marine economic resources. The Philippines, Indonesia, Malaysia, Vietnam and other countries will naturally not see the rapid extension of China's oil industry in the ocean. It is in common interest to prevent CNOOC from listing overseas.

According to customary practice, the International Investment Bank participating in the stock issuance and investment of the Hong Kong securities market will release an analysis report to companies that will be listed on the Hong Kong securities market for investors' reference, which will be an important reference for whether investors participate in the stock issuance.

In early and mid-May, several investments in the Hong Kong securities market released reports that were unfavorable to CNOOC. In Southeast Asian countries, even Singapore, some financial media in Hong Kong have conducted negative reports on CNOOC.

"It's really a headache!" Zhang Ke sat in Zhai Danqing's office, with his hands on his back and leaned back on the sofa. On the teak short table was filled with negative reports from two Hong Kong media about CNOOC. Although Hong Kong has been returning for more than two years, Hong Kong media still likes to publish negative reports from the mainland. Although such a public opinion supervision function would be better, it still feels a headache when things come to their heads. Besides, these negative reports are not simple, and there are also black hands behind them. "It seems that Xinwu can't go," Zhang Ke leaned his head back, looked at Zhai Danqing standing behind the sofa, held hands to hold her warm and lubricating hand, and said, "I knew that things wouldn't be that simple... things wouldn't be that simple."

According to Hong Kong's Francisco, CNOOC and listed underwriters cannot publicly publish listing information through the media before the listing hearing. Although CNOOC's senior management is not too honest, they only lack experience in dealing with such situations, and some of them lead the lead underwriters.

As a financial investor, Kumho Commercial placed the largest shadow order for CNOOC listing in Hong Kong. Moreover, whether CNOOC can successfully list is also related to the development of the oil refining and chemical industry in Jiangnan Province. At this time, it is naturally necessary to put all efforts into it.

In two days, the National Tourism Administration will hold a meeting in Xinwu to summarize and promote the planning and development of Xinwu's tourism industry. Representatives from many tourist cities across the country attended. This is an affirmation of Xinwu's development of the tourism industry in the past two years. Zhang Ke originally planned to take the weekend to go back to Xinwu, in name to celebrate his father's achievements, but in fact he can relax. At this time, even if he returns to Xinwu, he will not be able to relax. It is better to stay in Jianye. If there is any situation, he must fly to Hong Kong in person.

There was no one else in the office, and he looked at the direction of the room door. Zhai Danqing also wanted to be more intimate with Zhang Ke. Standing behind the sofa, holding Zhang Ke's rude chin, letting the back of his head against his soft belly, and looking down at Zhang Ke's eyes, with bright black eyes and deep and charming eyes.

"You have great confidence in CNOOC..." Zhai Danqing said with a smile.

"I don't have confidence in CNOOC," Zhang Ke smiled faintly, feeling Zhai Danqing's lower abdomen against her head, "I have confidence in China's monopoly policy on the oil and energy industry and China's economic growth in the next ten years-"

"Dongdongdongdongdong..." Cui Guoheng knocked on the door outside the office, but the door did not close. He heard Zhang Ke talking inside, pushed open the door and asked with a smile, "I would also like to ask: Why does Mr. Ke have such strong confidence in the monopoly policy of the oil and energy industry?"

Zhai Danqing moved to the side as if nothing had happened, as if he was talking to Zhang Ke in a normal manner.

Unable to hold Zhai Danqing's warm and soft little hand, Zhang Ke could only put his hand on the handrail on the sofa, asked Cui Guoheng to sit down, and said: "From the legal perspective, the state must directly grasp the lifeline of the industrial economy. This is the natural advantage of state-owned enterprises in the field of basic industries. Not to mention this, many people believe that these are things that need to be reformed. Just considering national interests, monopoly, especially the monopoly of direct administrative intervention, is actually a double-edged sword in the field of oil and energy industry. We see that monopoly enterprises are prone to breeding corruption and bureaucratic style, resulting in low production efficiency and shameless plunder of the market. However, on the other hand, the domestic dependence on overseas crude oil imports is increasing.

The international crude oil market is the world of oil giants, and all of these oil giants represent national interests. If the top central officials can stay awake, they will know that in the international crude oil market, there must be oil giants representing China's national interests to charge forward. At this time, the so-called domestic giants of CNPC, Sinopec, and CNOOC have not yet had the strength to charge forward in the international crude oil market, and time is very tight. What should I do? The central government is also tight and cannot provide huge financial subsidies to them without restrictions. For a moment, I can only grit my teeth and insist on the monopoly and monopoly of oil energy, so that these three companies can suck blood in the monopoly market... Compared with the oil industry, I believe that the domestic coal industry with sufficient resources may be liberalized to private capital."

Cui Guoheng sighed slightly, unable to understand what Zhang Ke was still spending time in the University of Dongda University, perhaps he was enjoying life.

"Although it has been decided to make financial investments in CNOOC, the center still needs to give a report for its due diligence. Although CNOOC is much smaller than CNOOC and Sinopec, China's offshore oil franchise and its identity as the third largest monopoly oil provider in the Chinese market should ensure that this financial investment will receive reliable returns." Cui Guoheng said.

Zhang Ke smiled and said: "Under the protection of state monopolyism, the huge oil consumption market of 1.3 billion people is divided into three companies. If you cannot make money, the senior executives of the three companies must be quite stupid. In addition, many state-owned enterprises like to engage in behind-the-scenes transactions in Shanghai and Shenzhen, but they are very clean and disciplined in front of foreign friends. The State Economic and Trade Commission and CNOOC introduced Liu Chengwei to be responsible for listed companies, which is also to improve the views of overseas investors on China's oil industry."

"Authentic, you have a deep understanding of domestic industrial policies, few people can match. The biggest selling point of CNOOC's Hong Kong listing financing this time is its monopoly monopoly on offshore oil and energy," Cui Guoheng said when he saw the Hong Kong newspaper Ming Pao on the teak short table. "However, the negative reports and reports released by the media and some investment banks are concentrating on firepower to attack this point, which is a bit of a headache."

Zhang Ke nodded and admitted that he was also having a headache about it.

The negative media reports are not to say that the Chinese government's monopoly monopoly policy on the oil industry is extremely evil. In early 1999, the central government officially relaxed private capital and foreign capital entered the sales of refined oil. In the earliest pilot areas such as Guangzhou, the scale of Hong Kong capital and private gas stations has exceeded Sinopec, which controls the southern market. These media and investment banks have boldly predicted that the Chinese government will further relax restrictions on the crude oil mining and refining industries - this will have a destructive impact on CNOOC's most important intangible asset, namely the monopoly monopoly monopoly.

CNOOC still lacks experience. On the one hand, CNOOC tried hard to explain to investors that monopoly monopoly and monopoly on offshore oil energy is the biggest wealth of listed companies. On the other hand, the media and investment banks judged that CNOOC's monopoly monopoly monopoly and monopoly monopoly of offshore oil energy will be impacted. In the future, CNOOC and Sinopec's monopoly monopoly monopoly will also be impacted. In 1999, private capital, which had just entered the field of refined oil sales, believed that the country would gradually relax restrictions on the oil industry, and domestic media were also fanning the flames to carry out reports on this aspect. CNOOC blindly emphasized monopoly monopoly. In the eyes of investors, it felt a bit harsh and cowardly, and had deeper doubts.

In addition, even in the fields of crude oil mining and refining, there is no opening at all.

The day before yesterday, Hong Kong Ming Pao reported on the entire page that private capital in Xining entered crude oil mining and refining industry.

As early as 1994, China Petroleum Natural Gas Corporation (CNPC) signed a regional resource development agreement with the Xining government because of the extremely low crude oil extraction efficiency (no money making) in Xining, and handed over some oil fields to the local governments of municipal and county governments to organize development. Due to the lack of funds and technology, local governments have adopted the method of attracting investment and transferring well locations to introduce joint venture units to participate in oil development, including private capital, which led to the first in Xining area of ​​more than 1,000 private oil production and refining enterprises (private oil production is very profitable and has great environmental damage), and at this time it has become the pillar industry in Xining.

Although this is only a small part of the domestic oil extraction field and has not been officially recognized by the State Council, it is also believed that a small gap has been opened in crude oil extraction and refined oil refining. At the beginning of 1999, the central government officially relaxed restrictions on private capital entering the sales of refined oil. Many people naturally believed that the regulation on crude oil extraction and refined oil refining would be further relaxed.

This policy expects to be extremely unfavorable to CNOOC's overseas listing.

Zhang Ke’s impression of CNOOC in his memory is vague. He only remembers that CNOOC suffered a heavy blow when it first went public in Hong Kong and did not know much about the details. However, through careful and in-depth investigation and research on the domestic oil industry during this period, and then compared it with the vague impression, the past has happened in the world, but the content in his memory does not exist, so it is not difficult to deduce it.

Whether it is behind the scenes, or the real media opinion, this is the policy expectation, coupled with the fact that Hong Kong's capital market was not regained and crude oil prices fell sharply, the first overseas listing plan of CNOOC was eventually defeated. It was precisely the failure of CNOOC's overseas listing plan that directly prompted the central government to make a decision to resolutely ban the private oil production industry in Xining, blocking the gap between private capital and the oil mining field, and causing a sensation at the time, Xining Petroleum **—the central government's oil monopoly policy was determined to help CNOOC and CNOOC.

The biggest resistance to resolving overseas listing. Unfortunately, the two companies of CNPC and Sinopec are very backbone, which can be said to have greatly stimulated the failure of CNPC. CNPC set the price-to-earnings ratio at about 9 times for the first overseas listing in 1999. In order to ensure the success of overseas listing in 2000, CNPC dropped its price-to-earnings ratio by half (4.6 times). With CNPC's later profitability, its overseas listing in 2000 was almost to stuff fat into overseas investors' mouths, including the subsequent overseas listing of domestic financial assets, which caused this serious chondrosis disease.

The impact of CNOOC's failure in its first listing was so great that Zhang Ke could see clearly, but it was unpredictable by others. At least in the advance report of the Economic Research Center, it only analyzed the negative impact of China's offshore oil industry. Once the listing failed, the development of the demarcation oil and gas field was destined to be delayed. The development of China's offshore oil industry was delayed for at least two to three years, which was also detrimental to the economic development of Jiangnan Province. The biggest disadvantage was that the overseas listed state-owned enterprises learned wrong lessons from CNOOC's failure in its first listing. After that, state-owned enterprises overseas listed financing mainly relied on net assets, and no longer rely on price-to-earnings ratio to calculate the stock price according to international practices. The national interests lost here are difficult to calculate with a specific number of billions of dollars.

Zhang Ke thought about it and asked Zhai Danqing: "Is it necessary for us to go to Hong Kong? I want to talk to Liu Chengwei, Brother Ye and Mr. Sun..."

Zhai Danqing hesitated for a moment and said, "Then I will accompany you to Hong Kong." She was still a little afraid of meeting Tang Jing, and she was always guilty.

Zhang Ke asked Cui Guoheng: "Director Cui has time to go there?"

"I don't have much effect on going to Hong Kong. It's better to stay in Jianye and write two articles." Cui Guoheng said.

Zhang Ke shook his head and smiled, saying, "At this time, we will be punished by a brick."

"I was thinking that the Central Committee might be a little shaken at this time," Cui Guoheng said in a pondering mood, and then smiled self-deprecatingly, "It's nothing to be able to wear the same pair of pants as giants such as PetroChina, Sinopec, and CNOOC, and it's not a big deal to get some bricks."

Zhang Ke thought about it and was right. First of all, we must reiterate domestic public opinion. We cannot undermine it by ourselves. We also need the central government to once again show its position on the monopoly policy of the oil and energy industry to resolve the doubts of overseas investors to the greatest extent.

Cui Guoheng left the office, Zhai Danqing walked over and closed the office door, sat on the handrail of the sofa, and said with a smile: "It's CNOOC listed overseas, and the lead underwriter is also someone else. As a result, we, Kumho, are using the greatest strength behind our back."

If we only pursue profit maximization, Kumho should beat the dog, causing CNOOC's overseas listing plan to suffer greater setbacks and set a big picture. However, if we participate in CNOOC's overseas securities market stock issuance plan next year, the returns will increase several times - but we cannot see that China is strong. No matter how many assets under Kumho are, what's the benefit? It also lacks sufficient protection and potential for further development.
Chapter completed!