Return to 1958 and build a century-old giant

Chapter 810 Large-scale Investment in Shekou Industrial Zone
The reform and opening up in mainland China is normal, and its core purpose is to attract investment, but it has not been smooth sailing.
Initially, everyone agreed to a 50/50 joint venture. The mainland side was unwilling to contribute money, thinking that they should form a joint venture first and then make up the difference after the factory made money. The factory's products, unless they could not be produced domestically and had to be imported before, could only be 100% exported.

In addition to the reasons related to the government, these combined factors resulted in the actual attraction of only US$18.2 billion in foreign investment within the first five years of reform and opening up, which was originally planned, falling short of expectations by less than 20%.

Of course, there are also some that have developed better, such as Shekou Industrial Zone and Shenhai City, which is at the forefront of reform and opening up.

It was precisely because these two places dared to work hard and because the economic development of other places was not good that the country added 14 more special economic zones in 1984. Then the pace of reform and opening up became bigger and bigger, and we successfully crossed the river by feeling the stones.

In such an unstable early stage environment, Yang Wendong would know when to stop and would not invest on a large scale. His core target was still the future of Shekou and Shenhai City.

Only a few projects, such as Very Cola, can consider a deeper cooperation with other cities in the mainland. This is because the beverage industry cannot only produce in Shenzhen and then transport it to the north for sale.

Even if we disregard the current transportation system, the future complete highway network would still lead to huge losses if we played like this.

Anyway, with the joint venture with China Resources, and China Resources still relying on itself a lot in Hong Kong, the risk is basically very small.

Wei Zetao said, "That's fine too. We're not short of time. Let's wait for the substantive policies from the mainland to come out first."

"Okay, just be prepared. You guys do some internal sorting out and see which industries we currently have relatively low technological content, high personnel requirements, and relatively low personnel skill requirements. Compile a list and give it to me. Then, once the domestic policies are released, we can discuss it further," Yang Wendong said.

In another month, the Shekou Industrial Zone will be established, at which time I can move some of my human resources companies there.

However, the newly established Shekou Industrial Zone is just a wasteland with nothing there. It will probably take some time before things get really interesting.

The reform and opening up of mainland China was like a meteorite crashing into the ocean, creating a massive tsunami. The whole of Hong Kong was talking about it, but most people, including some Chinese businessmen and government officials, were unaware of its impact on them.

Hong Kong's property and stock markets also experienced a surge, and many commentators claimed that the mainland's contact with the West would inevitably need to go through Hong Kong as a bridge.

In other words, a large amount of mainland and overseas funds will flow into Hong Kong in the future. At the very least, many global companies that intend to enter the domestic market will inevitably rent or even buy houses in Hong Kong, and will also hire locals and consume, etc. These combined factors will inevitably make Hong Kong's economy stronger in the future.

These people naturally exaggerate a lot, but that's how stock market commentators and economic experts are; if they don't exaggerate, how can they attract people?
In addition, some of these claims are true; at least many American conglomerates have established branches in Hong Kong in preparation for entering the mainland market.

As a result, Hong Kong's property market became even more booming, and the Hang Seng Index surged by over 800 points. Shares of both real estate and trading companies saw significant increases.
Time flew by and it was 1979.

A mysterious guest arrived at the Xinhua News Agency office in Hong Kong.

"President Wang, hello there," the visitor greeted with a smile.

Xinhua News Agency President Wang Kuang also stood up, smiled and shook hands, saying, "Director Yuan, hello, it's been about ten years since we last met."

Director Yuan nodded and said, "Yes, it's been almost ten years. If I hadn't been assigned to Shenhai City, it would have been very difficult for us to even meet."

"Haha, yes, transportation between Shenzhen and Hong Kong is very convenient now, making it much easier for us to meet," President Wang said with a smile.

Director Yuan said, "Yes, I'll treat you to a meal sometime in the future. But I came to see you this time because I have something important to discuss, and I hope you can help me."

"What is it? Please speak." Upon hearing that it was something serious, President Wang immediately became serious as well.

Director Yuan said, "You should know that the central government is building an industrial zone for foreign trade in Shekou, right?"

President Wang nodded and said, "Yes, I've heard that. The top leader even sent someone to ask for my opinion, and I agreed. I heard you were the one who orchestrated this?"

Director Yuan said, "Yes, it was all my doing. It wasn't easy. Many people at the higher-ups disagreed, but it was eventually approved."
Although it was approved, the central government didn't have the funds, so I had to take responsibility myself. Even my subordinates didn't receive travel allowances!

"Is the domestic economy really this bad now?" President Wang asked with concern.

Director Yuan said, "Yes, it's very serious. Now we need money for everything: industrial development, housing construction, road transportation, basic wages, social welfare, and various enterprises also need subsidies. The central government's finances are already stretched thin."

The most pressing issue now is that China wants to import 100,000 tons of wheat flour from the United States, but it cannot raise the necessary foreign exchange. Many cities in China are already facing food shortages.

"Sigh, I never imagined that the domestic economy would deteriorate so much in just one year since I came to Hong Kong," President Wang lamented.

Director Yuan asked, "I've heard that Hong Kong's economy is developing very well, so the central government hopes that you and I can cooperate to study Hong Kong's development process and then find a way to replicate it in cities across the country. Putting aside everything else, at least we need to solve the problems of having enough to eat and keeping warm in the north."

Of the basic necessities of life—clothing, food, shelter, and transportation—food is the most important. Without food, people can die. Additionally, Central and Northern China need sufficient winter supplies, otherwise people could freeze to death. Relatively speaking, the southern provinces are a little better off; at least people won't freeze to death in winter.
Director Yuan thought for a moment and said, "Hong Kong's development didn't happen overnight. Decades ago, it was just as poor. You know Yang Wendong, Hong Kong's richest man today, right? When he started his business, he often went hungry."

"Yang Wendong is very famous in Yanjing, of course I've heard of him, but I didn't know that he had such a hard time when he started his business?" Director Yuan asked in surprise.

President Wang laughed and said, "Yes, most people in Hong Kong know about it. You can buy some related books and see how he started his business."

“Okay, this person’s entrepreneurial journey might be helpful to me, so I’ll also look into it.” Director Yuan paused and said, “But that’s for the future. Right now, my Shekou Industrial Zone is still a wasteland.”
The central government's task for me is to attract investment, so my only option is to come to Hong Kong. But the problem is, there's nothing in Shekou. How can I attract investment there?

"You're trying to get something for nothing, aren't you? But there are plenty of people like that in Hong Kong, and they use similar methods," President Wang laughed. He had been in Hong Kong for over a year and was familiar with many of the business practices there.

"What method?" Director Yuan asked in surprise.

President Wang explained, "Generally, when Hong Kong people do business, if they don't have their own money but want to buy a piece of land, they will borrow money from a bank to buy the land, then develop it, and finally sell the houses to repay the bank." The scheme involved is actually much more complicated than it sounds, but he didn't need to go into too much detail because it might involve some irregular or even illegal operations.

"You mean we should ask the banks for a loan first? I've thought about that too, but the domestic banks don't have the money either. They've already lent their money to the government, so they're unwilling to lend to me," Director Yuan said helplessly.
He naturally thought of borrowing money from the bank, but the bank wouldn't lend him any.

President Wang shook his head and said, "What I mean is Hong Kong banks."

"Hong Kong banks? Are there any banks that don't accept collateral?" Director Yuan inquired.

President Wang thought for a moment and said, "I know that the Shanghai Stock Exchange once borrowed money from Hang Seng Bank to clean up the Huangpu River estuary, so Hang Seng Bank may have this kind of business, but it should be Yang Wendong who facilitated this, so we still have to find him."

"My small industrial park, can it really get Yang Wendong to come forward?" Director Yuan asked somewhat uncertainly;
The central government was aware of the Shanghai Stock Exchange's loan from Hang Seng Bank; Director Yuan had heard about it when he was in Beijing years ago. It is said that this was an experiment conducted by the central government to see if this method would work.
President Wang said, "How about this, I'll call Mr. Yang Wendong and we'll go together. You should prepare in the next few days and also learn about Mr. Yang Wendong's situation in Hong Kong first, so that we can be more flexible when the time comes."

"Meet Yang Wendong? Great! I was just thinking of inviting him to invest in Shekou. He's the biggest industrial boss in Hong Kong," Director Yuan said with a smile.

President Wang laughed and said, "You still can't change this personality. Let's take things one step at a time. If you don't have industrial infrastructure, then even if someone wants to invest, there's nothing they can do."

"That's true." Director Yuan nodded.

Shekou was a wasteland with no water, electricity, or transportation. It was inconvenient for them to live there, let alone have a factory. They were almost driven crazy by the mosquitoes that were as fierce as fighter jets at night.

The next day, Yang Wendong learned about this from his assistant;

"Director Yuan, Yuan Geng?" Upon hearing the name, Yang Wendong immediately recognized him.
In the history of reform and opening up, this person is a figure of great merit. Under his leadership, the Shekou Industrial Zone became a model for future industrial zones across the country.
Furthermore, Ping An Insurance Company and China Merchants Bank, the two largest financial giants in mainland China in the future, were both founded during his tenure.

Putting everything else aside, if I can invest in these two companies in mainland China in the future, I will have very substantial capital there.

Assistant Aying said, "Yes, would you like to see them?"

“Okay, have them come to my office tomorrow morning,” Yang Wendong nodded and said.

Ah Ying replied, "Yes, Mr. Yang."

The next day, Yuan Geng and Wang Kuang went to Yang Wendong's office and introduced themselves to each other;
Yuan Geng said, "Yang Sheng, I've learned about your entrepreneurial journey these past few days, and I must say, I'm truly in awe of you."

"Haha, you flatter me." Yang Wendong smiled. In fact, this was one of the things he was most proud of in his life: starting from scratch.
In the past, many netizens discussed which billionaires were self-made, but only a handful could be found. In the end, there were only a few people like Lei Jun, Dong Ge, Shi Yuzhu, Zuckerberg, and Larry Page, whose proportion was less than one in a hundred.

After exchanging pleasantries, President Wang Kuang described the situation of the Shekou Industrial Zone to Yang Wendong.
After listening, Yang Wendong asked directly, "Could the Shekou Industrial Zone be developed into a project to accept external investment?"

"External investment? How does that come about?" Yuan Geng really didn't understand what he meant. This industrial zone could accept investment?
Yang Wendong asked: "You provide the land, and I provide the money. Not only can we build some infrastructure, but we can also build various factories in advance and then lease them to Hong Kong companies."

The profits from the lease will be distributed as dividends according to our shareholding ratio.

"I'm afraid that won't work. This land cannot be used as a shareholding," Yuan Geng politely declined.

The establishment of the industrial zone already faced significant resistance, and land is the most conservative area under national law. It is worth noting that while there were many external reasons for the downfall of ancient dynasties, the fundamental reason was land annexation.

"In that case, let's just take out a loan." Yang Wendong didn't seem to mind.
Currently, there is no legislation in China regarding how to utilize land for cooperation with foreign parties, so even if Shekou has certain authority, it cannot go too far.

As long as the land lease law is introduced next year, specifying how many years it can be leased out, then it will be feasible.

In fact, this policy will continue in mainland China in the future. Many people who buy houses only have the right to use the land, not the right to own it. Rural homesteads cannot be bought or sold either. The fundamental reason for this is that state ownership of land is a national policy.

Yuan Geng was overjoyed and asked, "How much can I borrow?"

Yang Wendong countered, "How many do you need?"

Yuan Geng said, "According to my calculations, the site preparation and infrastructure development in Shekou District will cost approximately 5000 million RMB, involving land reclamation, shop construction, and blasting of mountains."
However, you don't need that much money all at once; for the first phase, about 1500 million RMB should be enough.

"That's about HK$1.5 million?" Yang Wendong did the math in his head.

The Renminbi was very valuable in this era, at least according to official calculations, it was three times more expensive than the Hong Kong dollar and not much less expensive than the US dollar. The black market was a different story.

Yuan Geng replied, "Yes."

“Since we’re going to build it sooner or later, we might as well build it all at once. 150 million it is, I’ll get Hang Seng Bank to lend the money,” Yang Wendong said generously.

Yuan Geng asked in surprise, "Yang Shenghao, is it really true?"

“Of course, but there’s one condition,” Yang Wendong continued.

PS: Please give me a monthly ticket
(End of this chapter)