A hundred million yuan of money is not a great amount in China in the future.A fried tenant in the metropolis can buy a house for a unit, and it will cost one or two billion dollars.But in the early 1980s, that wasn’t a small amount of money.In 1982, the total expenditure of the state's financial budget for scientific research was only 6.5 billion yuan, and the money needed to be allocated to thousands of scientific research institutions and numerous projects.

Scientific research is a money-burning thing, no money, to come up with first-class scientific research results, unless there are countless traversers with gold fingers to cheat.Feng Xiaochen can remember some fragmented knowledge, but this knowledge is not enough to support the entire large fertilizer project.In order to break through the obstacles to the localization of large fertilizer equipment, it is necessary to invest in some people's property, and the amount is calculated in tens of millions.

The yuan of that year can be said to be very worthless, and it can also be said to be very valuable.It is not valuable because it is not an internationally accepted hard currency, and when it comes to introducing technology and equipment from abroad, it must be replaced by foreign exchange, and China is a country with an extremely short supply of foreign exchange.It is worth it because the price level in China is very low, especially the salary level of personnel is extremely low.In the United States, only an ordinary technician can be hired for one day, while in China, a professor can be hired for a full month.

When foreign large companies develop related technologies for large fertilizer equipment, the investment is calculated in how many billions of dollars, but Feng Xiaochen is sure to use tens of millions of yuan to do this thing, because the domestic personnel costs are very low, and in foreign countries, the cost of personnel in the scientific research process is the majority.

Although there is such a certainty, Feng Xiaochen also knows that he can not apply for this amount from the state finance, and Luo Xiangfei does not have such ability.From the national level, more important than the big fertilizer projects can be calculated at least 100, if each project to apply for tens of millions of investment, the state's financial money can not be coped at all.In order to complete the research of large-scale fertilizer equipment, there is only one way, that is, self-financing.

“Self-financing?”

Luo Xiangfei wrinkled his eyebrows into a pimple, he looked at Feng Xiaochen who came to report his thoughts to himself, and said in a tone of disbelief: "Little Feng, you will not be overwhelmed by the past achievements, right?"$50 million, how do you want to raise yourself?”

“Not for 50 million.”Feng Xiaochen carefully corrected, "I and Director Wu discussed that 50 million is a relatively conservative number, if we want to ensure that this attack is foolproof, we should have 100 million yuan as a guarantee."

“Tell me first how you’re going to get $50 million.”As for a billion things, let's talk about it later."Luo Xiangfei said.

"I want to issue bonds."Feng Xiaochen threw out his long-awaited plan.

“The bonds?”Luo Xiangfei almost suspected that he had misheard.

Feng nodded seriously and said, "Yes, it is a bond, just like the treasury bills issued by the state."

Luo Xiangfei glanced at Feng Xiaochen without a good fit and said, “Of course I know what bonds are, I mean, why can you issue bonds, and in what name are you going to issue bonds?”

Feng Xiaochen said, “Of course I am not qualified to issue bonds, but can we reinstall it?”As for the name, nature is to raise funds to achieve the localization of large fertilizer equipment, we can call it large fertilizer bonds.Bonds can set a relatively high interest rate, after the completion of the localization work in the future, through the profits in the manufacture of complete sets of equipment to repay the principal and interest.

“You’re giving me something again!”Luo Xiangfei rebuked a sentence, and then said: "Let's not say who will issue it, I just want to ask you, how can you convince the people to buy this... Well, let's call it a big fertilizer bond, why do you believe that in a few years we can have enough profits to repay the principal and interest of these bonds?" 」

Feng Xiaochen said, “Let me answer you a question first.”This time, we and several Japanese companies under the Japan Chemical Equipment Association initialed the introduction of five sets of large fertilizer equipment agreement, in addition to these five sets of equipment, in the future, our country will certainly have to build other large fertilizer projects.If we can use localization technology at that time, we can save a lot of foreign exchange, and the cost of domestic equipment will certainly be far lower than that of imported equipment, we can apply to the state for a special policy, from the difference in the price of equipment to take a part of the price of the equipment to repay the principal and interest of the large fertilizer bond.

"If you calculate the interest rate of 5% per year, the principal and interest of the 10-year bond is 150 million, do you think the profit of our new large fertilizer project can be so large?"Luo Xiangfei asked.

“Only a lot.”Feng Xiaochen laughed and responded.Luo Xiangfei did not take into account the inflation factor, if this factor is included, it is not difficult to repay 150 million yuan after 10 years.Feng Xiaochen knew that it was useless to say this to Luo Xiangfei at this time, and Luo Xiangfei had no inflation in his mind.

"I think you're too optimistic."Luo Xiangfei said, "Even if we build another five sets of equipment, according to your calculation, each set of equipment will enter 30 million bond principal and interest."The cost of a set of equipment is less than 200 million, if it is localized equipment, at best, it is more than 100 million, you add 30 million interest and interest, the user unit is afraid it can not be accepted."

Feng Xiaochen said: "In fact, I think not only limited to new domestic projects, if we have independent property rights of large fertilizer technology, we can fully undertake foreign projects."Countries like Southeast Asia, India, and Palestine are all agricultural countries, and like us, they urgently need to build new fertilizer plants.If we can get orders abroad, then 150 million yuan of principal and interest, can't we repay it?"

Luo Xiangfei's eyes lit up: "This is also an idea."We engage in major equipment, the central government to give us the instructions is to first achieve import substitution, and then seek a complete set of equipment exports.If we can really form an independent large fertilizer technology and export it to those agricultural countries in Southeast Asia, it is not impossible.The profit of the export equipment is much higher than the domestic sales, so that the principal and interest of 150 million yuan may not be really anything.”

“So you agree with me that idea?”Feng Xiaochen asked with a smile.

Luo Xiangfei shook his head and said, “The idea does have merit, but I still think the feasibility is too bad.”State-issued treasury bills are repaid by state guarantees, and the current issuance situation in various places is not ideal, and many places have to be distributed through the method of distribution.We can't do this big fertilizer bond, we can't do it again, right?We will not be financially supporting this.”

At the beginning of the founding of New China, the state had issued some bonds, first known as "the people's victory bond", and later issued the "national economic construction public debt" to raise construction funds.After 1958, the state suspended the issuance of public debt, and it was not until 1981 that the national debt was restored, and called it Treasury bills.

In that year, on the one hand, people lacked awareness of securities investment, on the other hand, there was not much surplus in the hands of the people, so the issuance of treasury bills was not smooth, and it was often necessary to force the employees of each unit to buy through the way of assessment.After the 1990s, Treasury bills really became fragrant, and countless investors queued up overnight before each issue.

Feng Xiaochen's understanding of bonds is based on the experience of future generations, and he believes that it is natural to use bonds to finance.As an official from the era of the planned economy, Luo Xiangfei felt that the issuance of bonds was very unreliable, and he could not imagine that anyone would be willing to pay for such investment goods that would be realized in ten years.

Hearing Luo Xiangfei's words, Feng Xiaochen smiled slightly and said, "Director Luo, your concern is indeed justified."Last year, our re-installation office was also distributed a part of the treasury bills, everyone bought 20 yuan, I remember there were a lot of comrades whining.

Luo Xiangfei said: "Yes, the treasury bills can be distributed, even if you are a little complaining, for the consideration of supporting the construction of the country, it can still be accepted."But you made a big fertilizer bond out of thin air, and if you were to share it with everyone again, you wouldn't have punctured the backbone of our reinstalled?"

“What if we don’t share at all?”Feng Xiaochen asked with a mysterious smile.

“No, who wants to buy it?”Luo Xiangfei asked.

Feng Xiaochen said, “Of course, I’m looking for rich people to buy it.”

“Who is rich?”Luo Xiangfei asked again.

Feng replied succinctly: “Foreigner.”

“The foreigners?”Luo Xiangfei said, “You mean... you’re going to go abroad to issue these bonds?”

"That's right."Feng Xiaochen said, “I have considered this question.Our domestic people's income is low, we have no money on their hands, if you want them to voluntarily pay for large fertilizer bonds, the possibility is very small.Although we can also use some great reason to convince some people, but it is too much pressure for us.The situation abroad is completely different.

First of all, there is a tradition of securities investment abroad, and the acceptance of bonds by foreign residents is much higher than in the country.Second, foreigners are richer than us, 100 million yuan is a large amount for Chinese people, and for Western investors, it is nothing.Third, the West is currently in an economic crisis, the stock market is sluggish, and China is carrying out large-scale economic construction, and the prospects are good.It can be said that our bonds are definitely high-quality bonds in the international bond market, not to mention the issuance of 100 million yuan, that is, the issuance of 1 billion and 800 billion yuan, it is no difficulty."

"You can make a little noise about this thing," Luo Xiangfei said, "involvement in the international market, and still issuing bonds abroad, we really do not have this precedent."

Feng Xiaochen said, “Any precedent is made by people, and since there is no such precedent in the past, let’s create a precedent.”