Hong Kong 1980: The Savage Era

Chapter 123 [Hongpu Chemical Company Auction]

After the adjustment signal is clear, it seems unlikely that the property and land at 1A Tirigunda in Mid-Levels will increase significantly in a short period of time. However, if the price increases slightly, big companies are still willing to pay for it.

If this project is kept in the hands of Paramount Group for a long time, Luo Qihong himself will definitely suffer heavy losses, and the results of his hard work over the past few months can be directly given to Chinese Estates Holdings.

After taking a look at Su Qishan, Luo Qihong immediately overturned his previous plan and planned to adopt the ordinary premium plan, with a high probability of a 2% premium. If he could get it, he would get it and make a small profit, but if he couldn't get it, he wouldn't regret it.

"Boss, there is some very strange news on the market. I wonder if it is useful to you?" Su Qishan asked.

Luo Qihong regained his composure and said, "Tell me about it."

Su Qishan is still very reliable and rarely reports useless information, so Luo Qihong plans to listen, perhaps there are unexpected good projects.

"There is an industrial company called Hongpu Chemical. Its stock price was very low a few days ago, but since yesterday, its stock price has skyrocketed, and its market value has increased by 180%. There are also rumors that Hongpu Chemical has received investment from an overseas consortium, and its market value will exceed 6 million yuan." Su Qishan reported.

Hearing this, Luo Qihong showed little interest. Different industries have different worlds. What does an industrial company have to do with him? Even if it is stock trading, it is too late to enter now.

Su Qishan suddenly took out a document and handed it to Luo Qihong, explaining, "This chemical company has a lot of properties. I think it is very likely that the boss of Hongpu Chemical Company wants to cash out urgently, which has led to the current situation. If my guess is correct, shareholders will know the details and the stock price will definitely plummet. The company may be able to get a bargain."

Su Qishan was well aware of the current situation of Paramount Company and Luo Qihong personally, and they urgently needed profitable projects to complete the bet with Chinese Estates Company, so he delivered such strange news to Luo Qihong.

Luo Qihong looked through the documents and did not expect that Hongpu Chemical Company had good qualifications. If the stock price really plummeted, he could spend several million yuan to control a listed company, then change its name and sell it, perhaps making tens of millions.

"Manager Su, you continue to keep an eye on Hongpu Chemical. If the stock price really plummets, come and report back." Luo Qihong ordered.

"Understood!" Su Qishan was very happy to see that his "self-determination" was recognized by Luo Qihong. He thought that he was already Luo Qihong's confidant and would follow Luo Qihong to leave Paramount Company and be reused.

Luo Qihong didn't think that the boss of a chemical company knew how to manipulate stock prices. He must have either hired a powerful securities company or had the support or alliance of others. If it was the former, he could get to know him, as it might be useful in the future.

"Manager Su, please check who is manipulating this stock," Luo Qihong instructed.

The Hong Kong government has always been a contradictory entity. On one hand, it sent out the "land adjustment signal", and on the other hand, it held the first official land auction in the second half of the year and even put up two plots of land in Tsim Sha Tsui East.

Therefore, it attracted many powerful real estate companies to participate, such as Sun Hung Kai Properties and Sino Land, especially Sino Land, which has a special liking for land in Tsim Sha Tsui East.

At this time, Sino Properties could be regarded as the landlord in Tsim Sha Tsui East, with its rentable area exceeding 150 million square feet, and several shopping malls and office buildings under construction.

Luo Qihong had little experience in the Hong Kong real estate industry and very limited connections, so as soon as he entered the venue, he chose to sit in a corner and waited for the auction to officially begin.

Luo Qihong is very thin-skinned and does not want to be embarrassed to introduce himself and brag about himself to his peers. He comforts himself by saying that once he becomes strong enough, others will come to him for cooperation. Cheung Kong Holdings is a typical example.

Colleagues were whispering in groups of three or five in the venue, laughing heartily from time to time. If someone didn't know, they would definitely think this was a banquet party.

After 12 minutes, the auction host came on stage. As soon as the microphone sounded, colleagues began to return to their seats. Suddenly, the entire venue became quiet.

"Ladies and gentlemen, welcome to the official land auction held in August 81." The host gave a three-minute routine speech, and then the official in charge of the auction came out and gave a nearly 8-minute speech. However, the colleagues in the audience did not show any impatience, as if they were already used to this procedure.

"Everyone must be waiting impatiently, so let's start the formal auction process. Let us invite the first piece of land for auction today. It is located on Booth Road, Jardine's Lookout. The area is 1 square feet of residential land. The starting price is 3.7 million yuan, and each increase in price cannot be less than 1 yuan." The auctioneer's gavel fell and the bidding began.

This piece of land is located in Causeway Bay, not far from the famous Hawthorn Villa. It is not good enough to be built into a high-end residential building, but it is more than enough to be built into a mid-range residential building.

The starting price is not high and is acceptable to small and medium-sized real estate companies. The profit is around 2 million yuan, which makes it a good item.

"One thousand eight hundred and two hundred thousand!" A chubby middle-aged man raised the number 1 sign and shouted the price, with a hint of excitement in his eyes, as if he, like Luo Qihong, was attending the government land auction for the first time.

Luo Qihong smiled, raised the number 34 sign, and bid, "1 million!"

He didn't want to buy the land, he just wanted to satisfy his desire to get his hands on it. After all, none of his subsidiaries had the ability to develop the land.

Several real estate developers turned to look at Luo Qihong, but their gazes only stayed for a few seconds, as if they just wanted to see what the "greenhorn" looked like.

Luo Qihong didn't care much. Of course there were unspoken rules in the auction, but those rules were made by them. What did they have to do with him? Besides, if you want to be famous in the circle, how can you always do things according to other people's rules? For example, Chen Songqing of the Jianing Group also broke many rules in the Hong Kong real estate industry, otherwise how would he get his reputation.

"One thousand nine hundred and one hundred thousand!" Someone else continued to raise the price.

The ones that have appeared so far are all from small companies, and there are no heavyweight companies involved.

In fact, it is very beneficial to win the first piece of land at the auction. It allows you to show your face in front of your peers. Maybe someone will remember you and good projects will come to you.

Luo Qihong believes that auctioning is like gambling, and he needs to figure out the opponent's psychology. He certainly won't auction according to other people's routines, otherwise how can he become famous, "2 million!"

It is 1 million more than the starting price of 8 million, which is equivalent to a premium of 2%. According to Luo Qihong, general land requires a premium of 11%-15%, so he is not worried at all that his peers will not keep up and the land will be stuck in his hands.

Luo Qihong's second bidding finally attracted the attention of his peers, and naturally someone recognized Luo Qihong.

"Where did this young fool come from? He doesn't know the rules at all. Isn't bidding like this just giving the Hong Kong government a free ride?"

"I have some impression that this person should be Luo Qihong, the owner of the Paramount Restaurant Company and Zhaoan Real Estate Company. He is a young man who started from scratch. It seems that no senior has explained the rules of the auction to him."

"Zhang Sheng, I think you should be the senior."

Zhang Sheng waved his hand and said with a wry smile, "This young man's ability and strength are stronger than mine. How dare I be his senior?"

The four of them were whispering and joking with each other. No one wanted to pay attention to a newcomer like Luo Qihong. It was a thankless task and of course no one was willing to do it.

Luo Qihong stopped bidding next, and his colleagues who were interested in the land breathed a sigh of relief. It was really a headache to meet a stubborn young man.

(End of this chapter)