Hong Kong 1980: The Savage Era

Chapter 181 [How can you make money without taking risks]

Li Yude knew some of Luo Qihong's investment achievements, and suddenly thought that Luo Qihong did not want to help because these suggestions were very ordinary. What he needed was an explosive investment project like the acquisition of Yongtai Construction Company.

Of course, Li Yude was also very clear that his relationship with Luo Qihong was not enough to make Luo Qihong give him all his knowledge, but he still hoped to get better investment projects.

Now he has no way out. The family's original business has been sold. Now he can only run the Hongpu Real Estate Company well, otherwise the Li family will be left with nothing.

"Luo Sheng, are there any other investment projects?"

Luo Qihong understood Li Yude's meaning and purpose, but it was impossible for him to mention such a high-quality project as the Star Ferry Company. But it was not a good idea to make things too awkward with Li Yude at this time.

"Mr. Li, this is already a very good investment project. I have personally invested hundreds of millions in those blue-chip companies. Do you still think the profits are not big enough?" Luo Qihong pointed out directly.

Li Yude and his daughter looked at each other. Li Yude's eyes lit up and he said, "Can you tell me which stock Luo Sheng invested in?"

Luo Qihong smiled and thought, "This Li Yude is really pushing his luck."

"Mr. Li, blue chip stocks are all the same. It's not a good thing for everyone to invest in the same stock." Luo Qihong said, "Why don't I help you choose a few, but I have a request."

"What's your request? Tell me."

"Mr. Li has to agree to let me sell all the shares of Hongpu Real Estate Company that I hold." Luo Qihong said with a smile.

Li Yude was speechless immediately. For him, this was like 'drinking poison to quench thirst'. At this time, he held a small number of shares in Hongpu Real Estate Company. His shareholding was originally unstable and he needed to rely on Luo Qihong's shareholding support. If he lost support now, he was worried that he would be challenged by others immediately.

"Mr. Luo, don't worry, I will find a way to buy the stocks you hold." Li Yude naturally would not agree to this approach.

Luo Qihong smiled and said, "Mr. Li, to be honest, you don't have the extra financial resources to make the acquisition, and I need to make a profit as soon as possible to make up for the loan I took out when I acquired China Gas Company, so I can't wait too long."

"When we started working together, I made it clear that this shouldn't be considered taking advantage of someone's misfortune."

"We will select the blue-chip stocks ourselves. We don't want to trouble Mr. Luo." Li Yude really didn't dare to agree to Luo Qihong. Hongpu Real Estate Company was the lifeblood of their Li family and they couldn't take any risks.

Luo Qihong suggested, "Mr. Li, it's hard to achieve success in business if you are so afraid of wolves in front and tigers behind. You can neither solve your personal debt problem nor make Hongpu Real Estate Company develop better."

"If I were you, I would definitely take a risk while the market is still good. I would first use my private funds to invest and expand, then let Hongpu Real Estate Company issue new shares to me to increase my shareholding and expand Hongpu Real Estate. Finally, I would sell the shares at a high price to recover the funds."

"This method will benefit both you and Hongpu Real Estate Company. You will definitely make a lot of money."

Li Yude shook his head and said, "You can't hold more than 50% of your shares. Even if you sell at a high price, you can't sell many shares."

"What if it's a partnership company? You just need to hold the controlling stake." Luo Qihong passed on to Li Yude the method he had tried.

The purpose of trying so hard to help Li Yude is naturally to enable him to sell the shares of Hongpu Real Estate Company as soon as possible, recover funds, and repay the debt to Bank of East Asia.

"Mr. Luo wants to get involved?" Li Yude felt that Luo Qihong was not so kind. Selling the stocks as quickly as possible was one reason, but it was definitely not the only reason.

"I only need to hold 10% of the shares, so that Li Sheng can avoid the attention of the Securities Regulatory Commission." Luo Qihong said with a faint smile.

Li Yude holds 90% of the shares and has a veto power. It's just that Hongpu Real Estate Company has a new controller with a different appearance. "Luo Sheng is really amazing. He is worthy of being a new leader in the business world." Li Yude gave a thumbs up. "Luo Sheng still wants to buy new shares at a low price, right?"

"Of course! The value of the newly issued shares cannot exceed the current market value, and can even be below the market value, so that we can make a profit." Luo Qihong said with a smile.

Li Yude said seriously, "Those shareholders may have a lot of complaints. We don't hold more than half of the shares, so we may encounter a lot of resistance."

"Sometimes resistance is a good thing, proving that we are doing something beneficial." Luo Qihong said cunningly, "This is the best way for us to quickly get out of trouble."

This is more troublesome than raising funds for stock offering, but it is easier to use than raising funds for stock offering and can generate quick profits. Of course, it is somewhat unethical as it exploits shareholders to make money.

This is a typical case where stocks are worth more than cash, but there is no cash in hand.

Sensual greed overwhelms the actual comparison of gains and losses.

"Then how do we drive up the stock price after issuing new shares?" Li Yude was tempted. This method was much safer than other methods and was the most feasible.

"Isn't the blue chip stock investment profit the biggest hype news?" Luo Qihong spread his hands and said, "This method will not harm Hongpu Real Estate Company at all, and Li Sheng himself is likely to make a profit."

Li Bingjun thought for a moment and asked, "We naturally trust Luo Sheng, so let Luo Sheng pick the stocks for us. We hope that Luo Sheng can negotiate with us about the sale of the stocks and not sell the stocks of Hongpu Real Estate Company without authorization."

Luo Qihong took out a pen from his pocket, tore off a piece of paper, and wrote quickly on it. The names of four companies, Wheelock & Company, Hong Kong Electric Company, appeared prominently on the paper.

"Please choose two of them. These are the investment companies I have thought of a long time ago."

Li Yude took the paper, glanced at it, and handed it to Li Bingjun. He turned to Luo Qihong and said, "Why not call the new company Dehong Investment Co., Ltd."

Therefore, the three of them had a preliminary discussion on the plan, but the specific implementation still needed time, such as the funds for the special new shares needed time to prepare, especially for Li Yude who was in financial difficulties.

Therefore, Luo Qihong suggested that Li Yude take advantage of the time difference and let himself and Hongpu Real Estate Company make a fortune from the stock market first, and delay the announcement of the profit news.

This way, there will be enough funds to subscribe for new shares.

After entering 82, the situation in the real estate industry became increasingly worse, and the prices of some high-end residential buildings stagnated.

However, these things could not interfere with Jianing Company's acquisition activities at all.

Due to the high quality of Jie Lian Enterprise, Jianing Company already had a real estate flagship company, Jianing Real Estate, and did not want to balance Jie Lian Enterprise and Jianing Real Estate. Therefore, Chen Songqing sold the shares of Jie Lian Enterprise to Zhong Zhengwen of Yida Group at 6.5 yuan per share, and changed the name to Yida Investment, which became a listed company controlled by Zhong Zhengwen.

At the same time, Carrian Properties announced that it would form Overseas Chinese Real Estate Company with Far East Consortium of Qiu Degen, Yida Investment of Zhong Zhengwen and Sun Hung Kai Securities of Feng Jingxi, and acquire the listed shell company Hong Kong and Kowloon Shipping under Far East Consortium and change its name to Overseas Chinese Real Estate.

These four companies began to inject assets by subscribing to new shares, making Qiaolian Real Estate Company a listed company with assets of 4 million yuan in just one week. Among them, Jianing Real Estate Company held 8.63% of the shares and was the largest shareholder.

Luo Qihong had already asked De'an Securities Investment and himself to buy a large number of Hong Kong and Kowloon Shipping Company shares in advance. After a large number of new shares were diluted, the shareholdings of the two companies were about 15%.

(End of this chapter)