Chapter 870 Global Release

In fact, before the Fed launched the third round of quantitative easing, many countries had already started the interest rate cut channel - last year, many countries began to raise interest rates due to the hope of economic recovery, but the next round of economic depression forced them to choose to cut interest rates.

For example, earlier, in early June this year, the People's Bank of China announced a 25 basis point cut in the benchmark interest rate for deposits and loans of financial institutions in Chinese currency.

This was the first interest rate cut by the central bank since December 2008.

Then on July 6, less than a month later, the central bank announced another 25 basis point interest rate cut.

Earlier, in February and May, the central bank had twice cut the deposit reserve ratio by 0.5 percentage points each.

Coincidentally, the South Korean central bank announced a rate cut after three and a half years, which also surprised the market.

On July 12, the South Korean central bank announced a 25 basis point cut in the benchmark interest rate to 3.0%, which was the first time South Korea had cut its benchmark interest rate since February 2009.

This is just the beginning, and it is very likely that the South Korean central bank will announce another interest rate cut next month.

In Europe, the European debt crisis has not been effectively resolved. In order to avoid further recession in the European economy, the European Central Bank has also tried its best.

On July 5, they announced that the refinancing rate would be lowered by 25 basis points to a historical low of 0.75%. This is the third interest rate cut since the European Central Bank President Draghi took office in November last year.

Since then, the European Central Bank has maintained the ultra-low interest rate unchanged, and announced in September the launch of a new bond purchase program - Outright Monetary Transactions (OMT), or unlimited offset bond purchase program, but with strict bond purchase conditions. It will consider whether to buy bonds based on factors such as interest, interest rate spreads, liquidity, volatility, and announce the details of bond purchases every month.

At the same time, the OMT plan will be implemented in cooperation with the European Financial Stability Mechanism (EFSF) and the European Stability Mechanism (ESM), and the purchase targets will mainly be eurozone government bonds within three years.

The European Central Bank is so open, and other European countries are also following suit.

On July 5, the Danish central bank followed the European Central Bank's interest rate cuts and lowered its base lending rate by 25 basis points to 0.2%. It also lowered its deposit rate from 0.05% to -0.2% for the first time, which was the first negative deposit rate in history.

They said that this move was to ensure that the Danish krone remained stable against the euro.

Although the wealthy Federal Reserve and the European Central Bank have implemented unlimited bond purchase plans, they are advancing month by month. The Bank of Japan and the Bank of England are taking drastic measures to the economy, with quantitative easing round after round.

The initiator of QE, the Bank of Japan, has also played its best this year.

In 2012, the Bank of Japan will relax monetary policy five times, expanding its asset purchase scale from 55 trillion yen in February to 101 trillion yen (about 1.2 trillion US dollars) in December.

So far, the Bank of Japan has implemented 11 QEs.

Moreover, with the further decline of Japan's economy, the pressure on the Bank of Japan to cut interest rates has further increased after the new Prime Minister Abe took office.

Abe expressed the hope that the Bank of Japan would continue to lower interest rates or even reach negative interest rates to stimulate Japan's economic development.

The market expects that the Bank of Japan is very likely to raise its inflation target to 2%, and may cut interest rates as early as January next year.

The Bank of England's QE is also cost-effective. In order to stimulate economic growth, the Bank of England has expanded its QE scale twice this year (mainly purchasing government bonds), adding 50 billion pounds each time, and the current total amount is 375 billion pounds (about 600 billion US dollars).

In addition, the Bank of England has maintained an ultra-low interest rate of 0.5% since 2009.

It has to be said that with the implementation of the third quantitative easing policy in the United States, the impact of the increasing US dollar and the still pessimistic global economic situation have forced most countries in the world to choose to enter the interest rate cut channel together.

As of the end of 2012, among the major countries in the world, more than 22 central banks have adopted more direct monetary easing policies such as bond purchases or interest rate cuts to stimulate economic growth, and some countries have taken measures such as reserve requirement ratio cuts.

Therefore, from this time on, the era of global flooding has begun to arrive...

...

"Mr. Ma, we are willing to support Alibaba's repurchase of Yahoo in terms of funds. You know, His Royal Highness the Duke has always believed that Alibaba can have an exciting development prospect under your leadership, so we will spare no effort to support you."

"Thank you, Ms. Wang, I also called His Royal Highness the Duke yesterday, and we will give you a feasible plan next."

Boss Ma met this very elegant Chinese beauty in front of him at the headquarters of Alibaba.

Facing her, Boss Ma still put his attitude very positively. After all, Ms. Wang Wanting is not only in charge of the affairs of the Cavendish Trust Fund, but also served as the personal assistant of the Duke of England for many years before that. From these, it can be seen that she is definitely one of the most trusted people of the other party.

In fact, Boss Ma had met Wang Wanting nearly ten years ago. When Barron first came to China and met Boss Ma, Wang Wanting was by his side as his personal assistant.

However, over the years, whether it is Barron, Boss Ma, or Wang Wanting, their status has changed dramatically compared to that time.

And what Wang Wanting just mentioned in the conversation with Boss Ma is that Boss Ma is preparing to repurchase shares to take back the Alibaba shares held by Yahoo...

At this time, Alibaba has completed its delisting from the Hong Kong Stock Exchange.

In 2007, Alibaba's B2B business landed on the Hong Kong Stock Exchange, raising US$1.5 billion, with an issue price of HK$13.5 and a closing price of HK$39.5 on the first day, an increase of 193%.

However, in the following short five years, Alibaba experienced a series of turmoil such as the financial crisis, the shrinking of its B2B business, and the fallout with investors including Yahoo due to the divestiture of its Alipay business. The stock price even fell to HK$3.46 at its lowest.

Then on February 21 of this year, Alibaba made a privatization offer to repurchase the 26.5% of Alibaba's B2B business shares that it did not yet hold at a price of HK$13.5 per share.

As mentioned earlier, the issue price of Alibaba's IPO on the Hong Kong Stock Exchange and the price of this privatization repurchase are both HK$13.5 per share, which means that Alibaba did not have to pay any interest in the past five years, and used the US$1.5 billion raised from the listing on the Hong Kong Stock Exchange.

It can be said that this operation should be deducted by 666...

On June 20 this year, Alibaba was officially delisted from the Hong Kong Stock Exchange. This privatization of Alibaba cost nearly HK$19 billion, which was completed by external financing and its own cash.

In Barron's previous life, the privatization and delisting of Alibaba B2B was generally believed to be one of the reasons for the de-Yahooization. At the same time, it was also one of Alibaba's measures to implement strategic transformation and upgrading, paving the way for its overall listing in the future.

In this time and space, because the major shareholder of Alibaba has become Barron's family-he holds nearly 40% of Alibaba's shares through DS Holdings (Cavendish Trust Fund) and Rich23 Capital.

Yahoo now holds only 9.9% of Alibaba's shares...

The key is that Barron has always been very supportive of Ma and has always given Ma the voting rights of his shares. Even in the case of the split of the Alipay business, the two sides agreed to compensate him with the shares of the future payment business at an appropriate time after friendly negotiations.

This is very different from the "tough" style of Yahoo in the previous life, which led to Ma's need to go to great lengths to take back his shares.

Therefore, when the relationship between Ma and Yahoo became increasingly tense, with the support of Barron, the major shareholder, Alibaba's repurchase of its shares did not need to make a big fuss like in the original time and space.

On the other hand, for Yahoo, it was not so resistant to Alibaba's repurchase of its shares this time.