Hong Kong 1980: The Savage Era

Chapter 182 [Start Profiting]

According to Hong Kong's company law, it is difficult for such a combination of shares to obtain a board seat, and of course it does not touch the 16% bottom line for automatic acquisition of a seat.

Each of these four companies was a well-known enterprise in Hong Kong. Coupled with the name of joint investment, it immediately caused a sensation in Hong Kong. Not only did the share price of Qiaolian Real Estate Company soar, but it also attracted the attention of the commissioner of the Securities and Futures Commission.

The Commissioner of the Securities and Futures Commission has considerable power. He is able to initiate an investigation into a company and can mobilize a lot of human and material resources. Once he is targeted, it is difficult to escape.

In Hong Kong in the past, many listed companies were targeted by the Securities and Futures Commission, and eventually the companies went bankrupt and their bosses were thrown in jail.

It is conceivable how powerful the commissioner of the Securities and Futures Commission is.

This may seem to have nothing to do with Luo Qihong, but when the Overseas Chinese Real Estate Company is affected by the CSRC, the stock price will plummet. The loss is not big, but a profitable project will become stagnant.

"Do those people at Qiaolian Real Estate Company know that they are being targeted by the China Securities Regulatory Commission?" Luo Qihong asked with a gloomy face.

Bai Jinyan shook his head and said, "I don't know yet, but it won't be delayed for too long. It's only a matter of time before we know what the CSRC will do."

Luo Qihong nodded. "Qiaolian Real Estate Company has assets of 8.63 million yuan, a total share capital of 4 million shares, and a current share price of 0.87 yuan, with a market value of 3.48 million yuan. That means there is still an increase of nearly 1.3 yuan, and we can still make more than double the profit."

Bai Jinyan hesitated for a moment and said, "It's hard to say whether it can rise to 2.1 yuan per share. It depends on how fast the Securities Regulatory Commission moves."

"Well! Then you must always pay attention to the progress of the Securities Regulatory Commission." Luo Qihong instructed.

He did not have the ability to influence the decision of the CSRC, but he could bribe the officials of the CSRC to tell him the progress of the matter in a timely manner.

Bai Jinyan responded, "Of course there is no problem in following the progress, but we hold so many shares that it is difficult to sell them all in just a few days."

"Do you mean to judge the progress expectations of the CSRC based on the news and sell the stocks in advance?" Luo Qihong instantly understood what Bai Jinyan meant.

"I'm afraid this is the only way." Bai Jinyan sighed. This was clearly an opportunity to make a lot of money, but it turned out to be an adventure.

Luo Qihong shook his head and said, "No, we must make a profit on the Qiaolian Real Estate Company's project as scheduled, and the profit cannot be too far from the planned profit."

"Based on the current news, when do you think it would be best for us to sell the stock?"

Bai Jinyan stole a glance at Luo Qihong and said thoughtfully, "Now! I think the Securities Regulatory Commission will take action against the Overseas Chinese Real Estate Company in five days."

The profit from selling the shares of Qiaolian Real Estate Company now is only 3 cents per share, and the total profit is only 1 million yuan. This profit is too little, and Luo Qihong certainly cannot accept it.

So Luo Qihong gritted his teeth and said, "Never mind, let's give it a try. If the stock price can rise to 2.1 yuan, our profit will be more than 9 million yuan. It's totally worth taking the risk."

Bai Jinyan nodded and said, "It is indeed worth the risk. Perhaps we can give Qiaolian Real Estate Company a boost and make our profits exceed 1 million yuan."

"How do you want to add it?" Luo Qihong became interested and wanted to hear Bai Jinyan's suggestions.

"Based on my years of experience working at Sun Hung Kai Securities, Sun Hung Kai Securities must be the stock market speculator of Qiao Lian Real Estate Company, mainly responsible for driving up the share price of Qiao Lian Real Estate Company." Bai Jinyan smiled proudly, "So I think the share price of Qiao Lian Real Estate Company should be more than 2.1 yuan, otherwise Sun Hung Kai Securities Company will not play a big role."

Having unequal equity without any effect will easily cause dissatisfaction among allies. Therefore, Sun Hung Kai Securities will definitely have a difficult task to be worthy of the equity it holds.

"The asset value of Qiaolian Real Estate Company has been announced. What will Sun Hung Kai Securities do? What price do you think the stock price will be pushed to?" Luo Qihong asked directly.

"The stock price is likely to be around 3 yuan, with a market value of 12 billion yuan." Bai Jinyan held up three fingers, and then said in a deep voice, "It's hard for me to guess what Sun Hung Kai Securities' plan is. I think it's possible that they are relying on the rise in stock prices to make profits, which is similar to the way you raised the stock price of Siu On Real Estate before."

Luo Qihong did not agree with Bai Jinyan's statement. "Feng Jingxi is a veteran in the securities and stock industry, and he has many talented people under him. He will not use only these methods. I estimate that there will be several sets of plans, and they may be used in combination."

"But no matter what plan Feng Jingxi adopts, we must cooperate with him and let these plans accelerate the increase of stock prices so that we can ship the goods smoothly."

"Ah Hong, I'm worried that too much noise will speed up the investigation of the CSRC, and even make us appear on the CSRC's list." Bai Jinyan said worriedly.

At this moment, Bai Jinyan didn't want Luo Qihong to get into trouble at all, otherwise De'an Company, which was engaged in securities investment, would be seriously affected or even closed down.

The securities and stock business relies on reputation. Without its reputation, De'an Company will inevitably go bankrupt.

However, Luo Qihong thought that Bai Jinyan was worrying too much. The CSRC had great power, but everything he did was legal and within the rules. There was no need for the CSRC to keep picking on him.

"There is no investment that does not cross the line, whether it is stocks or securities, they all cross the line." Luo Qihong continued, "Since Feng Jingxi is not afraid, we are just assisting and are just an investment client. The Securities and Futures Commission will not make things difficult for us."

Seeing that Luo Qihong was not afraid, Bai Jinyan did not say anything against it. She could only act cautiously and not become a "little brother who shares the pressure of Sun Hung Kai Securities".

Moreover, the profits brought by Qiaolian Real Estate Company are very considerable. According to her estimation, the profit can be close to 1 million yuan, and she herself can get 5 million yuan.

In this case, she is a real rich woman, and perhaps she can rank well in the list of rich women in Hong Kong.

Soon, Wheelock held a press conference and announced that it had made a pre-tax profit of 81 billion yuan in 14.31, most of which came from the sale of real estate and land.

Most of the profits have been used by John Madden to order new ships or purchase second-hand ships, leaving only 3 million yuan in cash profit, and he still needs to pay the balance of some new and second-hand ships.

This means that Wheelock has made a profit, and a good one, but has not distributed any dividends. However, this has not caused dissatisfaction among shareholders, and has led to a significant increase in its share price.

Luo Qihong knew that this was the year with the highest profits for Wheelock & Company. World shipping had begun to decline, and without the support of a large amount of property and land, profits would begin to decline sharply next year.

Luo Qihong and Dean Securities Investment Company no longer hold shares of Wheelock Group, but Hongpu Real Estate Company has bought a lot of Wheelock Group shares, so they should have made a lot of profit this time.

On the same day, Hutchison Whampoa also announced its earnings for the year 81, with a profit of 7.13 million yuan for the whole year and an expected dividend of 1.8 yuan per share.

Such a generous dividend caused a huge rebound in the stock price. In just one hour, Hutchison Whampoa's share price rose by 1.2 yuan.

So far, Luo Qihong has earned 3 yuan per share on Hutchison Whampoa shares, with a profit of tens of millions of yuan.

(End of this chapter)