In Hong Kong, we build a global business empire

Hong Kong, Central.

As December 28, 1981 approached, the atmosphere of New Year's Day was growing stronger, and many businesses had changed their storefront slogans to festive banners welcoming 1982.

On the streets and alleys, crowds thronged, their faces beaming with anticipation for the new year, their enthusiasm undiminished by the current economic downturn.

Long queues still form in front of the time-honored shops in Central.

As Lin Haoran's Rolls-Royce drove along Connaught Road Central, looking out at the still bustling streets of Hong Kong, his gaze did not linger on the superficial prosperity.

The hustle and bustle and neon lights outside the car window are like a thin veil, concealing the undercurrents beneath.

He could see that among the crowds queuing up, next to the excited housewives carrying shopping bags, there might be a small or medium-sized business owner with a furrowed brow, who had just been rejected by the bank for a loan.

Behind those flashing "New Year Sale" signs may lie the last-ditch effort that merchants have to make in order to recoup their funds.

During economic downturns, most people have a hard time, especially many entrepreneurs, though it's not outwardly apparent.

However, none of this had anything to do with him.

The economic downturn in Hong Kong and even globally has indeed had some impact on his companies, such as a decrease in business volume.

However, the impact is very limited, and it is unlikely to cause him a devastating economic blow.

Therefore, Lin Haoran now seems like an outsider, showing no anxiety about the impending economic crisis, but rather a kind of almost cold anticipation.

Like an experienced hunter who has already set traps and prepared ammunition, waiting for the moment when the snowstorm is at its worst and the prey is most desperate and disoriented.

The Rolls-Royce smoothly drove into the underground parking lot of the Kang Le Building.

A private elevator takes you directly to the top floor.

As soon as I stepped out of the elevator, Cui Zilong was already waiting at the elevator entrance.

It is now a little past nine o'clock in the morning on December 28th.

Early in the morning, Lin Haoran received a call from Cui Zilong, who said there was an emergency that required him to report in person.

"Boss, something's not right." Cui Zilong followed Lin Haoran into the office quickly, his face even more serious than yesterday, but without any anxiety.

Instead of handing over the documents as usual, he went straight to the point: "I've received multiple reports from our intelligence partners in the US that Forbes' actions may be faster and more ruthless than expected! They've changed their plans!"

Originally, our intelligence indicated that Forbes intended to use our previously released 'Hong Kong Rich List' to target you, particularly regarding the questions surrounding your HK$678 fortune, while simultaneously manipulating public opinion to incite distrust of the list.

Lin Haoran nodded; he was naturally aware of this.

As early as when Forbes was planning their own "400 Richest Americans" list because of the Oriental Media Group's release of the "Hong Kong Rich List 200", he already knew that Forbes was planning their own "400 Richest Americans" list and viewed the Oriental Media Group's move as a direct provocation.

Lin Haoran was already prepared for this and didn't care much about the other party's plan, showing no sign of panic.

After all, he knew his own financial situation; HK$678 billion was only a portion of his wealth, far from all of it!
In fact, to avoid being too sensational, he specifically instructed Cui Zilong to make a relatively conservative estimate of some of his assets when compiling the "Hong Kong Rich List".

Therefore, the so-called plan that Forbes had secretly plotted against him was nothing more than scratching the surface and did not touch his real weaknesses at all.

However, upon hearing Cui Zilong say that Forbes had changed its strategy, he immediately became curious.

"What plan?" Lin Haoran asked calmly with a smile, sitting in his chair with his legs crossed.

"The current information is that Forbes has released a preview of its latest magazine issue through its channels, planning to systematically expose and amplify the severity of the Hong Kong real estate financial crisis through an in-depth investigative report."

The paper also analyzes some of Hong Kong's wealthy elites' core businesses as typical cases deeply intertwined with the crisis.

On the surface, it seems that they are not targeting you, the boss, but rather the Hong Kong market economy. However, through relevant intelligence, we have determined that their target is you.

Exposing Hong Kong's economic problems is merely a diversionary tactic; you're trying to use the dark cloud of Hong Kong's economy to completely obscure the brilliance of your personal wealth!
They are clearly trying to undermine your personal reputation, the authority of the rich list, and divert global attention by arguing that your wealth is vulnerable and will inevitably shrink during the economic crisis.

Ultimately, this will reshape Forbes' leading position in defining wealth and risk, and may even proactively catalyze a crisis to accelerate its impact on you, Boss. "Cui Zilong said in a deep voice.

Lin Haoran nodded without interrupting, signaling the other person to continue.

"The reason Forbes Group changed its strategy is because you, boss, previously predicted that the US stock market would fall. As a result, the current situation of the US stock market is exactly as you predicted, which has led to a surge in your influence in the United States and made you an idol for many people."

If they continued to attack you, boss, according to their original plan, it would obviously be inappropriate, and might even backfire. So, they changed their strategy.

However, the specific article has not been released yet, but it will be published in the magazine in half an hour.

"At that time, our informant in the United States will immediately fax over the latest Forbes article." Cui Zilong took a deep breath and stated the purpose of his visit.

Upon hearing this, Lin Haoran immediately understood Forbes' strategy.

"So it seems their idea is to trigger a real estate crisis in Hong Kong, thinking that this would shrink my assets and damage my reputation and the credibility of the rich list." Lin Haoran tapped his fingers lightly on the table, a sharp glint in his eyes.

“Yes, boss.” Cui Zilong nodded. “This time, they not only want to question your wealth figures, but also want to fundamentally shake the outside world’s trust in your business judgment.”

If Hong Kong's economy truly experiences panic and a worsening property market collapse due to their 'in-depth report,' then your image as 'Hong Kong's richest man' will be inextricably linked to the 'crisis.'

At that point, regardless of your actual assets, public opinion will perceive your wealth as heavily reliant on a collapsing bubble.

"What a brilliant move to undermine our strength." Lin Haoran laughed, showing no sign of nervousness but rather an expression of great interest.

"They're trying to put me on a hot plate, and then use the economic fire of Hong Kong to roast me. What a pity..."

He stood up, walked to the round glass window, and looked down at the busy street scene of Central.

"They only saw the crisis in the real estate market, but they didn't see the opportunities within the crisis, nor did they see that the foundation of my wealth, Lin Haoran, has never been limited to just this corner of Hong Kong."

Most importantly, I had already laid out a plan at the peak of the real estate market, clearing all the debts of the real estate businesses under Hongkong Land Group, Wanqing Group, and Hong Kong Electric Group, and even selling off many real estate projects in mediocre locations at high prices, thus raising huge sums of money.

Our current real estate projects are all high-quality assets in prime locations, with almost no debt ratio, and many are even in a net cash position.

This crisis is not a disaster for us; rather, it's an opportunity to clean up the market and acquire high-quality resources at low prices.

Upon hearing this, Cui Zilong's expression completely relaxed, and he even smiled slightly.

He followed Lin Haoran through the entire process of the real estate market going from frenzy to cooling down, and witnessed firsthand how the boss accurately and gradually reduced his holdings of non-core assets amidst a chorus of bullish sentiment.

How to cleverly transfer high leverage to the final buyer, and how to lay out overseas plans two years in advance to diversify wealth across global industries, technology, resources, and finance.

"Boss, your strategic planning is truly unparalleled," Cui Zilong said sincerely.

“This isn’t just my foresight.” Lin Haoran waved his hand and sat back down in his chair. “It’s the times that gave us the signal; we just listened to it earlier and more attentively than most people.”

The Hong Kong real estate frenzy of the late 1970s, the accumulation of debt, and the changing trends in global interest rates all signaled that the feast could not last forever.

"Forbes and others view wealth with a static perspective. They believe that wealth is just a number on paper, the value attached to a specific asset."

Therefore, they believe that if the real estate market collapses, their wealth will inevitably shrink.

Under normal circumstances, this is indeed the case. Once Hong Kong's real estate market collapses, it will affect many sectors in Hong Kong, and Hong Kong's wealthy will basically be unable to escape the consequences.

Unfortunately, I am different from other wealthy people. I had already made preparations to ensure that my companies could weather the crisis with minimal cost! As he said this, Lin Haoran showed a calm smile.

He trusted Cui Zilong completely, after all, his loyalty was 100%!

Most importantly, as his intelligence chief, Cui Zilong was deeply involved in these matters, and many of the plans were even personally handled by him.

Therefore, he could tell these words to Cui Zilong.

Just then, Cui Zilong's mobile phone rang.

After gesturing to his boss, he pressed the answer button in front of Lin Haoran.

"Forbes has already printed the latest issue but hasn't officially sold it yet? You've already received the latest edition of Forbes magazine? Okay, okay, I understand. Fax the information to me immediately. The fax number is..."

Not long after, a document was printed out via fax.

"Boss, this is the latest issue of Forbes magazine, a summary of the reports about Hong Kong and you." Cui Zilong handed the fax paper, still warm from the ink, to Lin Haoran. His expression was more serious than before, but his eyes held a knowing "I knew it" in them. Forbes wasn't currently published in Hong Kong; it only truly entered the Hong Kong market in the 90s.

At that time, Forbes had already made a name for itself globally with its rich list, becoming the world's top business magazine, and the Asian market was of particular importance to them.

However, it was only the early 80s, and Forbes' main influence was still in the United States, with some influence in Europe as well.

Therefore, even after they release a new magazine, it won't be immediately transmitted to Hong Kong.

In general, these articles are reprinted by some mainstream media outlets in Hong Kong.

Lin Haoran took it and quickly scanned it.

The core of the article is to explain the risks in Hong Kong's real estate and financial industries in detail.

He put down the fax, his face showing neither the solemnity nor anger that Cui Zilong had expected, but rather a calm demeanor.

After reading it, he had only one thought: Interesting, is Forbes trying to help me out?
"This time, they've learned their lesson. They're no longer getting caught up in the numbers game of my personal wealth, but are trying to deeply tie the fate of my entire business empire to the 'systemic risks' of Hong Kong's economy."

"This approach is definitely more sophisticated than simply questioning the wealth figures. There's a mastermind behind Forbes!" Lin Haoran said with some admiration.

The information Forbes gathered was indeed very comprehensive, so comprehensive that it surprised him.

Cui Zilong took the documents and quickly began to read them.

This Forbes article is simply saying that Hong Kong's real estate boom is based on a fragile foundation with four major flaws, constituting a "collapse scenario".

First, there's the overheated market and the broken capital chain.

Hong Kong's real estate market is exhibiting a "false prosperity." New homes are barely maintaining high prices thanks to a developer alliance, while the secondary market is experiencing a "price inversion," with actual transaction prices far below listed prices. Transaction volume is sluggish, and market liquidity is nearly exhausted.

An anonymous banker said that Hong Kong's property market is like a game of musical chairs with no one to pass the buck, and the flower could fall at any moment.

Most real estate companies, especially small and medium-sized developers who expanded in the late 1970s, had extremely high financial leverage, relying on bank loans, trust financing, and even high-interest private lending to drive projects.

With sluggish sales and tightened credit, corporate cash flow is stretched to its limit. Interest rate hikes or failed project sales could lead to a break, and a wave of business closures is looming.

Second, there are distorted prices and fragile support.

At the beginning of 1981, during the peak of the real estate market, the prices of small residential properties were far out of reach of ordinary citizens.

Currently, the average monthly income of a family in Hong Kong is about HK$3000. To buy a 400-square-foot apartment, the total price could reach HK$30 to HK$40. Even if they didn't eat or drink, it would take them more than ten years to save up, not to mention that ordinary people cannot go without food and drink.

Moreover, "flour is more expensive than bread," with land prices approaching or even exceeding housing prices, severely compressing developers' profit margins and leading to heavy losses in the market.

The current support for housing prices is driven by speculative capital and blind faith, which is rapidly disintegrating amid a global economic slowdown, high interest rates, and overspending of local consumer spending.

Third, there are macro-level concerns and structural defects.

Externally, major Western economies are mired in stagflation, with weak demand putting direct pressure on Hong Kong's economy, which is heavily reliant on exports. The slowdown in external demand will weaken the foundation for real estate purchases.

Internally, the high-interest-rate environment suppressed demand and was the final straw that broke the back of highly indebted companies. Corporate financing costs soared, residents' mortgage burdens increased, and market participants' cash flow deteriorated.

Fourth, the financial system's risk exposure and political uncertainty.

Hong Kong's banking system is deeply intertwined with the real estate sector. In the past few years, the relaxation of credit standards has led to a huge exposure to real estate risks.

A significant drop in property prices will trigger a surge in bank bad debts, creating a vicious cycle.

Furthermore, the increased discussion about Hong Kong's future, coupled with this "uncertainty," could impact long-term capital allocation and public confidence.

At the end, Forbes even concluded with a metaphorical passage: "Hong Kong, this pearl of the Orient, is shrouded in a cloud of internal and external tensions. The real estate market, as the most active and sensitive part of its economic lifeline, has already issued a clear warning that an explosive real estate crisis will occur within a year."

Putting down the documents in his hand, Cui Zilong was also somewhat moved.

He looked at Lin Haoran and said, "Boss, I have to say, the information that Forbes found is absolutely spot on for Hong Kong, it's incredibly accurate."

They not only grasped the problem, but also knew how to weave these technical, dry economic data into a captivating yet unsettling 'crisis story.'

Cui Zilong paused for a moment, then continued with a complex tone: "Once this article spreads internationally, especially given the high level of attention brought about by your previous successful prediction of the US stock market, it could indeed have a significant negative impact."

It will lead international capital to reassess the risks in Hong Kong, shake the confidence of the local market, and may even accelerate the 'vicious cycle' they have predicted.

However, what surprised me was that he didn't mention you, Boss, at all. After all, Forbes' target this time is actually you and our Oriental Media Group!

After listening to Cui Zilong's analysis, Lin Haoran was not anxious at all. Instead, he clapped his hands lightly and showed an expression of appreciation on his face.

"That's right, Mr. Cui. The brilliance of this article lies in its 'telling a story with the truth.' It doesn't fabricate data, but instead connects existing risks that have been deliberately ignored or downplayed by many people in a very impactful way, pointing to a seemingly inevitable tragic ending."

Moreover, it cleverly avoided mentioning me, as if to say that this Forbes article was not targeting anyone, but simply stating a fact, thus avoiding offending me, a rising star in the business world. Brilliant, truly brilliant! Lin Haoran exclaimed with deep emotion.

However, Forbes assumed that Lin Haoran was unaware because he believed that Lin Haoran's influence was in Hong Kong and that he might not have any intelligence sources in the United States.

Therefore, when Lin Haoran's influence in the United States was soaring, Forbes chose not to directly target him. This avoided a direct and public conflict with the newly emerging "Eastern prophet of Wall Street," while cleverly attacking him indirectly by depicting the crisis in his "home base."

This is a more roundabout, and also more "professional" and "objective" way of attacking.

"Boss, is there anything we need to do?" Cui Zilong asked respectfully.

Lin Haoran shook his head and said, "No, we don't need to do anything. This article will soon cause a stir in Hong Kong, barring any unforeseen circumstances."

Local financial media outlets with keen business sense will be quick to reprint, interpret, and amplify the views expressed in this article.

After all, the reputation of Forbes, one of the three major American financial magazines, coupled with these shocking figures and rigorous logical reasoning, is itself excellent material for attracting attention.

He walked to the window, looked down at the still bustling but now weary crowd below, and calmly analyzed, "Panic needs time and a medium to ferment."

Forbes articles are like pebbles thrown into a calm lake; the ripples first spread from the financial and investment circles in the United States, and then reach Hong Kong through international news agencies and financial journals.

Local newspapers, radio, and television, vying for news and attention, will inevitably rush to report on it. Those small and medium-sized business owners, investors, and even ordinary citizens already worried about the market outlook will have their anxieties amplified upon reading such articles.

Cui Zilong nodded in agreement: "Yes, boss, especially those who bought at the peak of the housing market or whose businesses are closely related to real estate may accelerate the sale of assets, reduce investment, or even withdraw funds in advance."

This kind of collective panic could very well be the final straw that breaks the camel's back, allowing the 'vicious cycle' predicted by Forbes to, to some extent, become a self-fulfilling prophecy.

"This is the power of public opinion, and also the brilliance of Forbes."

Lin Haoran turned around and smiled, “They don’t need to create a crisis themselves. They just need to accurately depict what the crisis might look like and get enough people to believe it. Then the crisis itself will be accelerated by people’s belief and corresponding actions.”

This was a self-fulfilling prophecy, a calculated move. However, what Forbes didn't know was that I had already made ample preparations for the Hong Kong real estate crisis. Their direct exposure of the hidden dangers in the Hong Kong real estate industry played right into my hands.

"President Cui, think about it, what was I planning before?" He looked at Cui Zilong with deep eyes. "It was to cash out in advance, reduce debt, hoard cash, and expand overseas, right?"
All of this is so that when a crisis strikes, I can not only protect myself, but also take the initiative to acquire high-quality assets that are being panic-sold at extremely low prices, consolidate the market, and expand my territory.

“And now,” Lin Haoran’s voice carried a hint of amusement, “Forbes, the renowned American financial magazine, is using a highly influential article to announce to the world for me, free of charge and efficiently: the crisis in Hong Kong’s real estate market has truly arrived, and it may be very serious.”

Their professional analysis and sensational headlines prematurely ignited latent panic in the market, effectively 'clearing the field' for me, scaring away hesitant competitors, and creating a more favorable acquisition environment."

Cui Zilong's eyes lit up, and he completely understood his boss's intention: "Boss, do you mean that we not only don't need to stop the spread of this article, but we can also go with the flow and even fuel it?"
Let the panic run its course, let asset prices plummet, and then we can calmly enter the market and reap the rewards?

“Good!” Lin Haoran nodded approvingly. “What we need to do is not to extinguish the ‘fire of panic’ ignited by Forbes, but to make this fire burn even brighter, burning away more bubbles and vulnerable people, while ensuring our own absolute safety.”

Then, as the fire subsided, amidst the chaos, we carried the pre-prepared buckets and tools to salvage the "real gold" that had been burned but remained sturdy.

He had known about the Hong Kong real estate crisis for a long time, but he just hadn't brought it up.

Previously, Hongkong Land Group's sale of numerous real estate projects nearly triggered this crisis prematurely.

However, since the Governor's Office was involved, he naturally had to offer his support.

Therefore, he could not possibly trigger a real estate crisis, as that would easily offend the Governor's Office.

However, now that this matter has been ignited by Forbes, an American media conglomerate, it has nothing to do with him anymore.

Lin Haoran paused for a moment, then calmly said, "Therefore, our current strategy is: to observe the situation quietly, secretly accumulate strength, act according to the trend, and strike only after the enemy has made their move!" (End of this chapter)