In Hong Kong, we build a global business empire

Detailed information about the Madden family and Wheelock & Co. was quickly sent over by Bao Yugang.

The materials are very comprehensive, including the development history of Wheelock & Co., as well as financial statements, major asset lists, equity structures, management information, and even John Madden's personal preferences, family members, and interpersonal relationships are clearly listed.

Lin Haoran flipped through the documents, secretly admiring Bao Yugang's dedication.

These materials were clearly not collected temporarily, but rather are the result of long-term accumulation.

Bao Yugang's covetousness of Wheelock has probably been going on for quite some time.

According to records, Wheelock & Co.'s peak period was in the late 1960s and early 1970s, when the shipping industry was in its golden age and Wheelock's fleet was among the largest in the world.

However, in the mid-to-late 1970s, with the oil crisis and the global economic slowdown, the shipping industry began to decline, and Wheelock's performance also declined year by year.

Especially in the two years following the outbreak of the oil crisis, Wheelock continued to increase its shipbuilding holdings on a large scale by selling Hong Kong properties.

John Madden believed that only fixed assets floating on the sea, such as ships, were the most reliable forms of wealth.

In his view, land might be expropriated, buildings might be demolished, but the ships would always be under his control.

This judgment was undoubtedly correct during the golden age of the shipping industry.

However, in the mid-to-late 1970s, with the outbreak of the oil crisis, global trade shrank, shipping demand plummeted, and shipping prices fell sharply.

Those ships that were once considered "unsinkable" have become bottomless pits that devour cash flow.

The larger Wheelock's fleet, the greater its losses.

By the early 1980s, Wheelock was already on its last legs, and its profits had plummeted!

John Madden remained stubbornly convinced that the shipping industry would eventually recover.

He even took over a number of ships sold by Global Shipping when Bao Yugang was massively reducing his fleet two years ago.

The result can be imagined.

Lin Haoran closed the documents, feeling reassured.

Based on this detailed information, Lin Haoran realized that Wheelock was indeed a lucrative target, and it was a perfect fit for Wharf Holdings.

Once Wharf Holdings acquires Tak Fung, it will not only fill the gaps in Wharf Holdings' shipping and trading capabilities, but also elevate the scale of Wharf Holdings' assets to a new level.

More importantly, Wheelock also holds a number of high-quality properties, which can complement Wharf Holdings' real estate business.

After Takfung acquires these prime properties, Wharf Holdings' position in Hong Kong's real estate industry will be further solidified.

Unfortunately, Wheelock has sold many high-quality assets in recent years, otherwise Lin Haoran would not have looked down on them.

However, he is not Bao Yugang; all he wants is Lane Crawford.

As for Wheelock's other businesses, let Paul Y. Gang worry about them.

The reason why Paul Y.K. suddenly approached him at this time to discuss Wharf Holdings' acquisition of Wheelock Properties was clearly because Paul Y.K. also saw that Hong Kong Properties was likely to fall into crisis due to political issues.

If a real estate crisis erupts in Hong Kong, Wheelock's already plummeting profits due to the shipping industry downturn will face even greater difficulties, adding insult to injury.

In this situation, Bao Yugang believed that John Madden would inevitably lose all faith in Wheelock and thus consider leaving.

If he succeeds in his lobbying efforts, then it will be a natural thing for Wharf Holdings to make the acquisition.

Lin Haoran put the documents away, already having made up his mind.

There's no rush to talk to John Madden about selling Wheelock shares.

Wait until the Hong Kong property crisis erupts, until Wheelock's stock price hits rock bottom, and until John Madden is completely desperate before trying to negotiate; that would be much more effective.

……

In the blink of an eye, a few more days have passed, and it's now September 24th.

For most people in Hong Kong, this day seemed to be an extremely ordinary one.

Today is Friday, a day many office workers look forward to, because tomorrow is the weekend.

However, just as everyone was looking forward to the weekend and planning their weekend activities, a message quickly spread throughout the streets and alleys of Hong Kong.

Around noon, major radio and television stations suddenly broadcast an urgent news report: "This morning, during her visit to Beijing, British Prime Minister Margaret Thatcher held crucial negotiations on the future of Hong Kong. At the end of the negotiations, as she walked out of the Great Hall of the People, she accidentally fell on the steps outside the Great Hall of the People..."

The news caused an uproar throughout Hong Kong.

In the tea restaurant, diners put down their chopsticks and gathered around the television.
In the office building, white-collar workers stopped what they were doing and started whispering to each other;
On the streets and alleys, citizens gathered in small groups, discussing the matter.

"Margaret Thatcher fell? Really?"

"The BBC reported it, how could it be fake?"

"I heard she just finished discussing the Hong Kong issue with the mainland and then fell down. Does this indicate that Britain has lost out in the negotiations?"

"Who knows? But the future of Hong Kong is likely to change drastically."

Such dialogues are playing out in every corner of Hong Kong.

Meanwhile, in the Lin family villa on Shi Xun Road, Lin Haoran was holding his son, sitting on the sofa in the living room, watching the television screen.

Guo Xiaohan sat beside him, holding a cup of hot tea in her hand, with a hint of worry on her face.

"Brother Haoran, do you think the outcome of this negotiation will have a significant impact on Hong Kong?" she asked softly.

Lin Haoran smiled and hugged his son closer: "The impact will be huge. Starting today, barring any unforeseen circumstances, Hong Kong's property market will begin a crash that will last for at least two years. Those who have no confidence in Hong Kong's future will frantically sell off their assets and flee overseas."

"Then how can you still laugh? Your company has so many real estate businesses in Hong Kong, aren't you going to suffer a huge blow?" Guo Xiaohan said anxiously.

Lin Haoran smiled and shook his head: "Xiaohan, you don't understand. A housing market downturn is a disaster for those who bought at the peak, but for someone like me who has a lot of cash on hand, it's a once-in-a-lifetime opportunity."

Moreover, don't forget that I've already cleared all the debts of my subsidiaries. This means that even if a real estate crisis occurs, it won't affect me at all. Prices may be down now, but they will rise again in the future.

Guo Xiaohan was stunned for a moment, then realized: "You mean buying at the bottom?"

Lin Haoran nodded: "Smart. Those who panic sell off their assets at low prices, and I can pick up the bargains."

Guo Xiaohan looked at him thoughtfully, a hint of admiration flashing in her eyes.

This man seems to be able to predict things successfully every time, and no matter what happens, he can always find an opportunity.

No wonder he was able to accumulate such a huge fortune in just a few years.

In the following days, Hong Kong seemed to have had an invisible hand flip a switch of panic.

The footage of Margaret Thatcher falling was broadcast to every corner of the world via television.

Western media outlets described the event as a "symbolic collapse of the British imperial era," and the front pages of major newspapers were almost entirely dominated by the photo of the fall.

The French newspaper Le Monde's headline read: "The Twilight of an Empire: With Thatcher's Fall, What Does the Future Hold for Hong Kong?"

The New York Times went even further: "With the Iron Lady fallen, Britain's last pillar in the Far East is teetering."

When these reports reached Hong Kong, it was like pouring water into an already boiling pot of oil.

Citizens who already harbored doubts about Hong Kong's future have finally begun to take action.

The middle class was the first to react.

They are well-educated, worldly-wise, and most sensitive to changes in the international situation.

The day after news of Margaret Thatcher's fall broke, many people began inquiring about immigration.

By the third day, long queues had formed outside the immigration agency.

"I want to immigrate to Canada. How long does it take to get the application processed?"

Are there any places still available for Australia?

"What about the United States? What conditions does the United States need?"

This question is repeatedly raised in every immigration agency.

The owner of an immigration agency in Causeway Bay is surnamed Chen, a middle-aged man in his forties.

He had been in this industry for over a decade and had never seen anything like it.

"This morning alone, more than fifty people have come to inquire," Mr. Chen said into the reporter's microphone, his expression a mixture of excitement and anxiety. "My phone is ringing off the hook. Three operators are taking turns answering, but we still can't keep up."

The reporter asked, "What are the backgrounds of these people?"

Mr. Chen flipped through the registration form and said, "There are people from all walks of life, including doctors, lawyers, accountants, business people, and a few senior executives of listed companies."

What surprised me most was that there was also a retired Chinese-American member of the Executive Council.

The reporter gasped.

Chinese-American member of the Executive Council?

Those were mid-to-high-ranking officials in the Hong Kong British government.

Even they are leaving, what does that mean?
After Mr. Chen's interview was broadcast on the news that evening, panic spread rapidly like a virus.

Those who were initially observing finally couldn't sit still any longer.

"Even councilors are running away, what are we waiting for?"

"Sell the house quickly and transfer the money overseas!"

"Hong Kong is doomed, if we don't run now, it will be too late!"

Such sounds could be heard everywhere in tea restaurants, office buildings, and residential areas.

The real estate market was the first to be impacted.

On this day, Hong Kong's property market began a two-year-long plunge.

People crowded in front of the doors of major real estate agencies.

However, these people are not here to buy houses, but to sell them.

"I want to put my North Point apartment up for sale. How much can I sell it for now?" A man in his fifties squeezed to the counter and asked eagerly.

The agent looked at the data in his hand and said, "In North Point, last month it could sell for around 1,200 per square foot, but now it might be a bit lower."

"How much lower?" The man's voice trembled slightly.

The agent hesitated for a moment, then said, "Around nine hundred." The man's face turned deathly pale.

Nine hundred?

Three months ago, his house was worth 1.2 million yuan, but now it's only worth 900,000 yuan.

HK$300,000, just like that?
"Sell! Nine hundred it is!" the man said through gritted teeth. "If I don't sell now, I'm afraid I won't even be able to sell it for nine hundred!"

A similar scene was playing out simultaneously in every real estate agency in Hong Kong.

Those properties that were once hotly marketed have suddenly become hot potatoes.

A luxury house in Kowloon Tong was offered five million last month, but the owner refused to sell and insisted on waiting for six million.

Now, even with 3.5 million, they can't find a buyer.

Because the majority of those who want to immigrate to other countries and regions are wealthy, the value of villas will drop even more drastically.

A three-bedroom apartment in Taikoo Shing, which sold for 1.5 million three months ago, is now listed for 1 million, but no one is interested.

The owner of a villa in the New Territories urgently needed money and offered HK$800,000, but no one dared to take the bid.

Panic spread like a plague.

Citizens who own property are rushing to sell, fearing that if they are too slow, their properties will become unsellable.

Those citizens who do not own a house do not dare to enter the market at this time.

Who knows if it will go even lower tomorrow?
What if the price continues to fall after I buy it?

Buying activity disappeared while selling activity surged, resulting in an extreme imbalance between supply and demand.

The real estate market has collapsed.

Monday, June 27th.

The plunge in real estate stocks has begun.

On Monday, the Hang Seng Index opened sharply lower, with the real estate sector being the hardest hit.

Hang Lung Properties fell 15%, Sun Hung Kai Properties fell 18%, Henderson Land Development fell 20%, and New World Development fell 22%.

Even Li Ka-shing's Cheung Kong Holdings fell by eight percent.

It's only thanks to Lin Haoran being the second-largest shareholder of Cheung Kong Holdings that investors have some confidence in the company; otherwise, the stock would have fallen even more.

The situation is even more dire for small and medium-sized real estate companies.

Some stocks plummeted by half, while others fell to a fraction of their original value.

Inside the exchange, there was a chorus of wails.

"It's over, it's all over!" A middle-aged man slumped into a chair, his face as pale as paper.

Last month, he used all his savings and leveraged his money to buy shares in Sun Hung Kai Properties, hoping to make a profit while the market was good. However, overnight, he lost all his principal and was left with a mountain of debt.

"I told you long ago, don't touch real estate stocks, don't touch real estate stocks! But you wouldn't listen, and you're going to ruin this family!" His wife slammed her fist on the table, her eyes red with tears. "What do we do now? What do we do!"

No one can answer this question.

Because everyone is too busy taking care of themselves.

Investors who lost money in the stock market turned their anger on real estate developers.

"It's all these real estate developers' fault for driving up housing prices so high, causing us to buy at inflated prices!"

"They made a fortune, and now they want us to bear the consequences!"

"Unscrupulous real estate developers, give me back my hard-earned money!"

Tuesday, November 28.

Hundreds of citizens gathered at the headquarters of Sino Land, holding banners and chanting slogans, demanding that the developer take responsibility for the plummeting housing prices.

Police cordoned off the area to maintain order.

But the number of demonstrators grew larger and their emotions became increasingly agitated.

"You've made all our hard-earned money, and now that housing prices have plummeted, you need to give us an explanation!"

"Check out! Get your money back! Give me my hard-earned money!"

Some people in the crowd started throwing eggs and tomatoes.

A corner of the glass door of Sino Land was smashed, and several security guards rushed out and pushed the protesters back.

In the chaos, some people fell, some were injured, and screams and curses mingled together.

Lin Haoran stood at the window on the 51st floor of the Kang Le Building, looking at the chaotic scene across the street, his face expressionless.

His real estate companies were well-prepared. For example, Hongkong Land sold off many of its less-than-ideal real estate projects in the first half of last year. Since then, its development projects have mainly focused on commercial buildings, so the impact has been relatively small.

But other real estate companies were not so lucky.

Lin Haoran continued to look out the window.

The number of demonstrators continued to grow, and the chants grew louder.

But he knew that these people didn't really hate real estate developers.

What they hate is that their money has gone down the drain.

What they hate is the unknown force that caused their wealth to shrink overnight.

And no one can stop this force.

He even saw a well-dressed middle-aged man standing on the edge of a rooftop of a building not far away, seemingly about to jump.

A crowd had gathered downstairs; some were shouting, and others were calling the police.

Lin Haoran frowned.

"Boss, someone's about to jump off the building!" Liu Xiaoli exclaimed as she saw it.

Lin Haoran nodded: "I saw it."

"Should we..." Liu Xiaoli asked hesitantly.

Lin Haoran shook his head: "No need, someone will call the police. We can't handle this kind of thing."

Liu Xiaoli opened her mouth as if to say something, but ultimately kept it closed.

She knew that Lin Haoran was telling the truth.

At this point, no one can stop those who are swallowed up by the market.

They are not the first, nor will they be the last.

Perhaps many others in Hong Kong have made the same choice as this middle-aged man.

Police cars and fire trucks arrived quickly, and firefighters laid out an air cushion downstairs.

The negotiation expert climbed to the rooftop to communicate with the middle-aged man.

More and more people gathered to watch, causing traffic jams.

November 29th, Wednesday.

Governor Youde finally couldn't sit still any longer.

He called Lin Haoran urgently: "Mr. Lin, the Hong Kong property market has collapsed, and the stock market has collapsed too. If this continues, the entire economy will be in trouble."

"Whether the Recovery Fund can intervene might avert public panic."

Lin Haoran calmly said, "Sir Youde, at this moment, no one can stop the market's panic. All we can do is wait, wait for the panic to subside, and wait for the market to find its bottom on its own."

The Revival Fund spent HK$108 billion last time, leaving only HK$92 billion. This amount is negligible for the overall Hong Kong property market; this time is different.

Yud was getting impatient: "Wait? How long do we have to wait?"

Lin Haoran said, "At least two years."

Yud fell silent.

Two years?

Two years later, it was questionable whether he would still be in Hong Kong, but he knew that Lin Haoran was telling the truth, and that there were strong political factors involved, not just simple economic factors.

At this point, any human intervention will only make things worse.

“Mr. Lin, I’m counting on you.” Youde’s voice sounded tired. “You must find a way to stabilize the market.”

Lin Haoran nodded: "I will."

After hanging up the phone, Lin Haoran walked to the window and looked at Victoria Harbour in the distance.

He sighed.

He couldn't stop the real estate crisis; it was an inevitable trend.

Even though he knew that behind those skyscrapers, countless people were experiencing the darkest moments of their lives.

Those who have savings in the bank watched helplessly as their savings turned into worthless paper.

Ordinary people who worked hard all their lives to save money to buy a house suddenly found themselves with negative assets.

Those small investors who fought their way through the stock market lost all their principal and were left with a mountain of debt.

This is the cruelty of the financial market.

All he can do is be greedy when others are fearful, enter the market when others are desperate, and make a fortune when others lose everything.

This is the logic of capital.

Cruel, but true. (End of Chapter)