Hong Kong 1980: The Savage Era

Chapter 157 [Baoxiang Film Company]

HSBC Trading Room

Luo Qihong hasn't been here for some time. Most of the time, he directs Zhang Taotao to buy and sell over the phone and inquires about the situation of some target stocks.

"Mr. Zhang, how are you these days?" Luo Qihong greeted him with a smile, his attitude as calm as ever.

Zhang Taotao responded respectfully, "It's OK, no different from usual."

Luo Qihong is already a well-known tycoon in Hong Kong. Zhang Taotao has watched Luo Qihong grow up, so he feels a little emotional. Fortunately, he met Luo Qihong, otherwise he would not have become the deputy manager of the department so quickly.

This speed of promotion is rare even in HSBC, which is full of talented people. Many people envy Zhang Taotao for being able to meet such a promising client, and they also hope that they can have such an opportunity.

Therefore, the HSBC trading hall staff at this time were very friendly to some small customers, with a sense of "catching fish with a big net".

However, high-quality stocks like Luo Qihong are unlikely to be seen often, and most retail investors are ordinary people.

"How is the purchase of Hutchison Whampoa shares going?" Luo Qihong asked seriously.

According to Luo Qihong's estimation, Hutchison Whampoa's annual profit in 81 will be close to 7 million yuan. When such data is released, there will of course be an increase in profit and dividends.

The profit would surely be considerable, even comparable to the profit earned from the acquisition of a medium-sized real estate company.

Zhang Taotao immediately took out the report and read out the contents. "Hutchison Whampoa's share price is 18 yuan, with a market value of 72 billion yuan. Currently, 1 million shares have been purchased, accounting for 6%, with a capital expenditure of 4 million yuan, and the average purchase price is 2 yuan."

"According to the current situation, we should be able to buy another 4 million shares, which will require about 8 million yuan, accounting for 5% of the total."

Today, Cheung Kong Holdings holds about 42% of Hutchison Whampoa's shares, with the rest of the shares scattered among the former owner John Smith, British firms and Chinese companies, almost 75%, which means that only 25% of the shares are in the hands of retail investors.

Therefore, it is already good enough for Luo Qihong to get 5% of the shares.

But Luo Qihong was not satisfied with this. For him, this was an opportunity to repay a loan of nearly 2 million yuan (this was Luo Qihong's estimate).

"Mr. Zhang, please try your best to acquire the shares. It would be best if we can increase the share to 7%, which means acquiring another 1 million shares of Hutchison Whampoa." Luo Qihong ordered.

"Mr. Luo, the acquisition of another 1 million shares will require more than 2 million yuan. Although you have so much money in your account, I heard that you still have to pay the balance of Wheelock Group's acquisition of China Gas Company. Have you taken these funds into account?" Zhang Taotao reminded.

Luo Qihong was in a good mood and didn't care. He explained, "I know what I'm doing. Zhang Sheng, just help me buy as much as possible."

He estimated that Hutchison Whampoa would announce its profit and dividend in early 82, which should be in time. Even if not, he could mortgage the shares of Zhaoan Real Estate Company to raise the funds.

"Mr. Luo, it's not that I don't want to do it, it's just that it's very difficult. There are not many Hutchison Whampoa shares on the stock market now. The acquisition of these 1 million shares has already caused a reaction in the market. If we continue to acquire more shares, I'm worried that it will attract the attention of Hutchison Whampoa's senior management." Zhang Taotao had a worried look on his face.

"Just pay attention, we are not acquiring Hutchison Whampoa, it's just a normal investment." Luo Qihong smiled slightly, what he wanted was the stock price to rise.

Zhang Taotao saw this and asked, "Regardless of the stock price, will we buy up to 1 million shares?"

"We will stop if the stock price exceeds 22 yuan. If we have acquired 22 million shares before 1 yuan, we will continue to acquire them," said Luo Qihong.

"Understood!" Zhang Taotao continued, "We have already received 3 million subscription shares of International City Company, and the cost is 5 million yuan."

Luo Qihong asked with a smile, "Can we subscribe for more? International City Company is offering 4.5 million shares to the public."

Zhang Taotao looked embarrassed. He did have some money, but he was going to give it to other clients. "Okay, I won't embarrass Mr. Zhang. I'll just look for someone else." Luo Qihong's face turned bad because he saw that Zhang Taotao had some private goods.

Zhang Taotao understood what Luo Qihong meant. If he lost the support of Luo Qihong, a huge client, his position as deputy manager would be shaky, as many of his subordinates were eyeing this position.

So he quickly said, "I'll do my best to help Luo Sheng. How many shares does Luo Sheng want to subscribe for?"

Luo Qihong did some calculations and said, "How about adding another 3 million shares?"

Zhang Taotao was silent for a moment, then replied, "I'll try my best. I can do 2 million shares."

"Then I'll trouble you, Mr. Zhang." Luo Qihong generously took out a check, wrote a check for 20 yuan, and handed it to Zhang Taotao, "This is the reward from Mr. Zhang in recent time, and there will be more in the future."

Zhang Taotao looked at the check worth half a house, and the gloom just now disappeared in an instant. He smiled and said, "Thank you, Mr. Luo! I will definitely get 3 million subscription shares for you."

"Okay, I'll wait for good news from Zhang Sheng." Luo Qihong smiled, it really is true that money makes the world go round.

He also learned from Zhang Taotao about the future direction of the stock market and the situation of certain stocks before leaving the HSBC trading hall.

When he arrived at Dean Securities Investment Company, Bai Jinyan immediately took a stack of documents and followed him into the office.

"Here's the film company information you wanted." Bai Jinyan joked, "Do you want to meet a female movie star?"

Bai Jinyan knew that it was impossible for a young wealthy man like Luo Qihong not to go out and fool around. She felt that as long as he didn't bring him home and was sensible and didn't go too far, it would be acceptable.

Luo Qihong smiled and did not respond. He said, "What do you think of De'an investing in the film company?"

Bai Jinyan was stunned. According to her expectation, this should be directly invested by Hehong Real Estate Company. Why did they give the controlling rights to De'an Securities Investment? !
"De'an Company doesn't have talents in this area, so it's just a major shareholder that pays dividends?" Bai Jinyan asked after thinking for half a minute.

Luo Qihong nodded and said, "Hong Jinbao, the founder of Baoxiang Film Company, is a talent in this field. We don't need to intervene. As long as we give him some funds, I believe there will be good returns in a short time."

"Actually, I want the film company to provide me with some capital for securities and stock investments, and also share some of the risks for my industries."

Diversifying investments and reducing operating risks are what capitalists often do. Bai Jinyan, who is engaged in financial investment, should be more aware of the ins and outs of this.

"I also learned about it when I was collecting information." Bai Jinyan put away his joking expression, "Since the 80s, the film industry has begun a major cleanup. The once leading Shaw Brothers Film Company is doomed to decline and was kicked out by Golden Harvest Entertainment. However, Golden Harvest Entertainment cannot replace Shaw Brothers Film Company."

"Because many movie stars have started to set up companies now, Golden Harvest Entertainment can only invest in the movies that are being made, and cannot control the actors, directors and behind-the-scenes staff like Shaw Brothers Film Company does."

"Also, with the development of Hong Kong's economy, the box office of movies has increased significantly. Unlike before the 80s, when the average box office was only 1 million yuan, now an ordinary movie can have a box office of 3 million yuan."

Bai Jinyan made some analysis and heard that Luo Qihong was in a good mood. It seemed that investing in a film company could make a lot of profit, even tens of millions a year.

"Then how much do you think we should invest? What's the share?" Luo Qihong closed the document, crossed his fingers, pressed his elbow on the document, and asked Bai Jinyan seriously.

"According to current estimates, 1 million yuan can account for at least 60% of the shares." Bai Jinyan replied.

Luo Qihong nodded and said, "Okay, then please help me make an appointment with Hong Jinbao from Baoxiang Film Company. I have time tomorrow and can talk to him."

(End of this chapter)