Profitability is not a problem; he plans to buy five or six more banks within ten years.
Lin Chunping: Monthly net income has reached seventy to eighty thousand US dollars. Experts: Survival in the U.S. based solely on interest rate arbitrage may be difficult.
In November 2011, Wenzhou businessman Lin Chunping acquired the American Atlantic Bank. Experts commented that this marked a breakthrough for Wenzhou's private capital after a decade of struggles in the financial industry, potentially opening up new investment avenues. On January 24th, Lin Chunping, participating in Wenzhou's two sessions as a member of the Wenzhou Municipal Committee of the Chinese People's Political Consultative Conference for the first time, gave an exclusive interview to Guangzhou Daily reporters.
At age 20, Lin owed 20 million yuan
On January 24th, Lin Chunping exclusively revealed to our reporter that after acquiring the American Atlantic Bank, he was preparing to make another move: another overseas bank was currently in contact with him, "This bank is more than ten times larger than the already acquired American Atlantic Bank and is also close to bankruptcy." Lin Chunping said that the second round of negotiations would take place in March, "with a seventy to eighty percent chance of success!"
Born in 1970 in Zeya Town, Wenzhou, into a leather-making family, Lin Chunping went to Guangxi with his father at the age of 16 to do leather business. According to public reports, Lin Chunping, still in high school in 1988, had already contracted a counter at Guilin Department Store to specialize in selling buttons, becoming one of the 'ten-thousand-yuan households' at the time.
In 1989, Lin Chunping was admitted to Shenzhen University. During this period, through transporting cowhide between Shenzhen and Wenzhou, he completed his initial accumulation. It is reported that before graduation, he already possessed approximately 6 million yuan in assets.
In 1993, while doing aviation charter business in Nanning, Guangxi, Lin Chunping accumulated debts of over 20 million yuan. "I promised them to give me five or six years," fortunately, his relatives and friends who lent him money were very optimistic about him, not only did they not make things difficult for him, but they even lent him money to pursue his postgraduate studies in Singapore.
This was a crucial turning point in Lin Chunping's life. In Singapore, he met Kofi Annan's son, the seventh Secretary-General of the United Nations, thereby establishing connections with leaders of many African countries, including some presidents. From then on, he embarked on a 20-year journey of overseas travels and industrial operations. In 2008, Lin Chunping founded Chunping Group.
Acquisition of a second overseas bank this year
In November 2011, Lin Chunping spent 60 million US dollars to acquire the American Atlantic Bank in Delaware State. On November 11, it was renamed New HSBC Bank. Lin Chunping's move was interpreted as a breakthrough for Wenzhou's private capital after a decade of efforts in the financial industry without much result.
Monthly net income of seventy to eighty thousand US dollars
"The current operation situation is very good!" Excitedly, Lin Chunping told our reporter on January 24th that since its trial operation last November, his New HSBC Bank had already started making profits, "The latest data have already come out, with a monthly net income of at least seventy to eighty thousand US dollars."
Lin Chunping disclosed that currently, the New HSBC Bank only provides transfer and deposit services to overseas Chinese. He explained that if services were opened to Americans, those unable to repay their debts could apply for bankruptcy, leading to losses for the bank. Meanwhile, due to the absence of domestic branches, Lin Chunping's bank cannot accept deposits from domestic depositors.
In China, especially in Wenzhou, there are indeed many people interested in Lin Chunping's business. "At least 200 Wenzhou businessmen have already consulted me about overseas bank acquisitions."
Plan to own five or six banks in ten years
"This year, I will definitely have big moves!" On January 24th, Lin Chunping exclusively revealed to Guangzhou Daily reporters that he was currently in contact with an overseas bank regarding acquisition negotiations.
According to Lin Chunping, this bank is more than ten times larger than the already acquired American Atlantic Bank, "Their debt ratio is relatively high, and they are also close to bankruptcy." Lin Chunping disclosed that in March this year, both parties would conduct the second round of negotiations regarding the acquisition, "There is a seventy to eighty percent probability of successfully acquiring it!"
Lin Chunping's ambition in the financial sector clearly does not stop here.
In June 2010, Lin Chunping invested 1 billion US dollars to register and establish Chunping International Financial Holding Group in the British Virgin Islands. In August 2011, the company invested 1 billion US dollars in the U.S. to establish the U.S. New HSBC Federal Consortium.
"As long as you look at the name, you know what my plan is." Lin Chunping disclosed that within the next ten years, he plans to own five to six influential banks, "There will be actions every year." Additionally, Lin Chunping's five-year plan is to open bank branches in Wall Street, USA, Singapore, or Hong Kong, China.
To realize this ambition, Lin Chunping has already begun preparations.
On January 24th, Lin Chunping exclusively revealed to Guangzhou Daily reporters...
For more details, please refer to China Treasury Management Network:
http://www.treasurer.org.cn/webinfosmains/index/show/41081.html