Hong Kong 1980: The Savage Era

Chapter 180 [Debt]

Li Zhaoji reacted quickly. After being coerced by Luo Qihong, he no longer hesitated and immediately started to acquire shares of the Star Ferry Company.

Dean Securities Investment Company Office

Bai Jinyan was wearing a women's suit and standing upright next to the desk, holding documents in her hands.

"Henderson Land Development has already started acquiring shares in the Star Ferry Company. The move is very small and difficult to detect without careful observation."

The reason for being so cautious is naturally because they are afraid of causing a reaction in the stock market, a sharp rise in stock prices, and resulting in losses.

"Should we set up some obstacles for Li Zhaoji?" Bai Jinyan asked.

Luo Qihong shook his head and said, "No need. If we embarrass Li Zhaoji now, we will offend Cheng Yutong. It's not worth offending two tycoons at once."

"But we need to investigate the situation of the Star Ferry Company so that we can take action later."

"Yes, I know!" Bai Jinyan replied.

"I have reached an agreement with Henderson Land Development Co., Ltd. for Henderson Land Development Co., Ltd. to acquire the Garden Terrace residential building owned by Siu On Real Estate Co., Ltd. for 2.6 million yuan."

"This good news will boost the share price of Zhaoan Real Estate. Although the increase is not large, the market value will increase by no less than 3 million." Luo Qihong said, "In two months, Zhaoan Real Estate will have a rights issue. De'an Securities Investment Company needs to reduce its holdings and reduce the capital expenditure for the rights issue."

“How much do we need to reduce our holdings?”

"My personal shareholding plus that of Dean Securities Investment Company does not need to exceed 50%." Luo Qihong glanced at Bai Jinyan and continued, "The recovered funds will be distributed as dividends. I need this money to repay my debts."

Bai Jinyan calculated in his mind, "Then Dean Securities Investment Company can sell 18% of the shares, which is 1620 million shares. According to the current share price of Zhaoan Real Estate Company of 5 yuan, it can recover 8100 million yuan. However, I still suggest that you sell your personal shares and keep Dean Securities Investment Company's shares."

Luo Qihong nodded and said, "This is a good suggestion. I almost forgot about it. Then let Dean Securities Investment help me sell the 21% stake I hold."

"Okay, I'll follow up on that myself."

"I remember that the 4 million shares of Zhaoan Real Estate Company held by De'an Company have been mortgaged to the bank. The loan amount at that time was 2 million yuan. This mortgage must be cleared as soon as possible." Luo Qihong didn't want to cause trouble on these matters.

Although De'an Company holds 46.7% of the shares, the bank may make things difficult for De'an Company, which will cause trouble.

"Don't worry, the funds are ready and can be cleared at any time." Bai Jinyan said with some pride.

"We also need to prepare a sum of money to invest in the Star Ferry Company." Luo Qihong reminded.

"I will raise this money as soon as possible. I plan to sell most of the blue-chip stocks and raise about 8 million yuan, which should be enough to cope with the investment projects of Star Ferry." Bai Jinyan was finally tired of standing and sat down opposite Luo Qihong.

"For those who invest in the stock market, it is best to keep the shares of Cheung Kong Holdings. In the past three years, this company has expanded greatly. At the beginning of the year, there may be a good dividend, and the stock price will also rise sharply."

Cheung Kong Holdings controls Hutchison Whampoa, and Li Jiacheng himself controls Cheung Kong Holdings. Although Li Jiacheng does not hold a large stake, the directors and shareholders of Cheung Kong Holdings are all relatives and friends of Li Jiacheng, so he is not worried about losing control at all.

After swallowing up Hutchison Whampoa, Cheung Kong Holdings took the opportunity to cooperate with it and made a fortune, and Li Jiaben himself also gained a lot of benefits.

A week later, Luo Qihong sold all of his 21% privately held shares in Zhaoan Real Estate Company, raising funds of 9 million yuan.

Since then, Luo Qihong has repaid 3 million yuan of loans from Bank of East Asia, leaving the remaining 8 million yuan of loans.

However, Hehong Real Estate Company still owed Wheelock Group a balance of RMB 3 million, and Luo Qihong's personal funds were less than RMB 1 million, which was not enough to pay the balance.

Once the private investment funds in Hutchison Whampoa are recovered, Luo Qihong will be fully capable of taking over the balance.

At the same time, Li Yude was determined to sell his family's ginseng business and cash out 9 million yuan, of which 7 million yuan was used to repay bank loans and the remaining 2 million yuan was prepared for investment.

Li Yude's determination shocked Luo Qihong. Selling off the family business is the behavior of a prodigal son. In serious cases, it will make people despise it and carry a bad reputation.

It is truly refreshing to see the gentle and polite Li Yude being so courageous.

Mandarin Oriental Hotel
Li Bingjun personally poured a glass of wine for Luo Qihong before he sat back obediently.

This was what Li Yude asked her to do, and his purpose was naturally to please Luo Qihong.

"Mr. Luo, you are already the second largest shareholder of Hongpu Real Estate Company. The current debt ratio of Hongpu Real Estate is still relatively high. Do you have any way to reduce the debt ratio?" Li Yude began to state the purpose of this visit.

Luo Qihong was a little confused. The debt ratio of Hongpu Real Estate Company was only 40%, which was not high. The debt ratio of New World Development Company was now over 30%.

"Mr. Li, it seems that traditional real estate companies have no other options except raising funds and issuing shares."

Li Yude still did not give up, thinking that Luo Qihong was unwilling to help. "If Luo Sheng was in charge of Hongpu Real Estate, what would Luo Sheng do?"

Luo Qihong smiled and said, "Mr. Li, if I were in your position, I would earn enough money from the stock market to allow Hongpu Real Estate Company to reduce some of its debts, and then raise funds for rights offering."

"..." Li Yude fell silent. The stock market investment that Luo Qihong mentioned was exactly one of his weaknesses. He couldn't even complete the first step, let alone the second step.

"Mr. Luo, could you give me some advice? The investment funds of Hongpu Real Estate Company and the family can be handed over to De'an Securities Investment Company for processing." Li Bingjun's mind was quite active, and he immediately found a win-win solution.

Luo Qihong immediately refused, saying, "Investment opportunities are not always available, and I need to spend a lot of time looking for them. It's not easy to find good investment projects."

"Moreover, Dean Securities Investment Company operates for customers. How to invest is up to the customers. At most, the staff of Dean Securities Investment Company will remind the customers."

Li Yude sighed and said, "Mr. Luo, I have visited several real estate experts. They are not optimistic about the real estate market in Hong Kong. I also feel that this is a recession period for the real estate market and it will last for a long time, so I hope to reduce the debt ratio."

Li Yude’s meaning was very clear. If you don’t help Hongpu Real Estate Company, we will suffer the losses together.

Luo Qihong was not very happy, but considering the tens of millions of yuan he had invested in Hongpu Real Estate Company, he chose to back off.

"In a few days, all companies will announce their earnings for 81. If you choose the right company, you may be able to make a small profit."

(End of this chapter)