Hong Kong 1980: The Savage Era

Chapter 224 [Profit Horror]

Monday, September 9
Carrian Company announced its interim results, with a profit of 2.7 million yuan, an increase of 2.75% over the previous year, and announced an interim dividend of 1.2 cents per share.

This news greatly boosted the confidence of small shareholders of Jianing Company.

Luo Qihong looked at the news, shook his head and smiled bitterly. He knew that Jianing Company would never pay dividends.

The reason is that Jianing Company is already in debt. How can it come up with so much money to pay dividends? To put it bluntly, Chen Songqing is probably still hoping that shareholders can help Jianing Company repay the tens of billions of Hong Kong dollars in debt.

Luo Qihong believes that Chen Songqing now regrets not stopping and clearing up the debt earlier, and he also holds on to the hope that he can escape this disaster.

He was of course well aware that the Carrian Company had already been poisoned and would sooner or later die from the poison. Even the debt king Landmark Group was trembling in fear, let alone the Carrian Company which had no backing.

"Now is not the right time, it should be about the right time by the beginning of next year."

Luo Qihong continued reading and soon read a report about Jianian Real Estate Company, which was about the debt problem of Jianian Real Estate and the bank's debt collection.

Although most of Jianian Real Estate Company's loans have collateral, some loans were obtained only with the founder Peng Guozhen as a guarantor.

However, Peng Guozhen was in poor health at the time and was under great pressure, so the bank did not dare to force him too much. After all, if Peng Guozhen was forced to death, it would be difficult to recover the principal of the loan, let alone the interest.

In fact, the expansion model of Jianian Real Estate Company is similar to that of Jianing Company, but it is not as crazy as Jianing Company. It also has some conscience and does not want to dig a big hole for small shareholders.

After this bomb was exposed, the stock value of Jia Nian Real Estate Company experienced a crazy decline, falling by 4% in the first hour, and the market value of tens of millions of yuan. The severity and rapidity of the decline made small shareholders deeply frightened, which aggravated the severity of the selling spree.

Cluck! !
There was a knock on the door, and the person who came was Cheng Jianshen.

"Boss, Jia Nian Real Estate Company replied to us that they agreed to trade the nine newly built industrial buildings, but they insisted on the price of 9 million yuan and refused to lower it according to market demand."

"They also want to sell us another batch of properties, which are worth about 5 million yuan, which is about the current market price. How should we respond to them?"

Cheng Jianshen reported, with a hint of greedy excitement in his eyes, as if he really wanted to take over these two batches of properties.

Luo Qihong said with a smile, "2 million is impossible. The current Jia Nian Real Estate is about to go bankrupt. If it is auctioned at a bankruptcy auction, there is no need for 2 million. Tell them that I am only willing to pay 1 million. If they are willing, we can make a deal. If not, we can wait for the auction."

Cheng Jianshen hesitated for a moment and said, "I think the other batch of properties are good. Maybe we can lower the price from 5 million yuan. Overall, they are about the same."

"Jian Shen, in a while, all kinds of properties will be available on the market. Even the Land Development will sell high-quality properties, and even small and medium-sized commercial buildings in Central will reduce their prices. We don't need to buy high-priced properties from Jia Nian Real Estate." Luo Qihong thought about it, and gave in a step. "If Jia Nian Real Estate is willing to sell the properties worth 5 million yuan to us for 3 million yuan, we can consider it."

"This" Cheng Jianshen didn't think that the people at Jia Nian Real Estate were willing to sell the company's properties at a low price.

Luo Qihong reminded, "Jian Nian Real Estate is going bankrupt. We have many options. Not only does Jianian Real Estate have high-quality properties, but there are plenty of them on the market. Just reply to them like this. If you don't want to, just ignore it."

"We have a lot of things to do recently. We don't need to argue with a company on the verge of bankruptcy. Haven't we set our goals?"

"Yes!" Cheng Jianshen woke up, and now things were different from before.

In fact, it was greed that blinded Cheng Jianshen's eyes and made him somewhat demented.

In fact, Peng Guozhen of Jianian Real Estate Company has contacted many colleagues to ask whether they are willing to take over the properties of Jianian Real Estate. Unfortunately, with the disaster ahead, no one would use such a large amount of funds, so Peng Guozhen could only ask someone to contact Zhaoan Real Estate Company.

Cash flow is king in Hong Kong today, and whoever has enough money is the boss.

At around 11 o'clock and approaching 12 o'clock, Cheng Jianshen came to report the results. Jianian Real Estate Company was still reluctant to sell the company's property at a low price, and wanted to talk to Luo Qihong face to face.

Luo Qihong refused directly. What was there to talk about? He didn't have a close relationship with Jianian Real Estate (they had cooperated in 81). Any attempt to use personal connections or make big promises would be empty talk.

Luo Qihong only wanted tangible benefits, and he didn't gain any advantage from the original cooperation. So he didn't have the time to argue with Peng Guozhen now.

Luo Qihong understood Peng Guozhen's thoughts. He simply thought that Hong Kong's cities could still be saved in the short term.

These ideas are not without reason. The Hong Kong government announced yesterday that the 11.5 square feet land parcel at Victoria Harbour on Admiralty Road will be put up for bidding in November in an effort to stimulate the land market.

Therefore, many real estate developers are taking a wait-and-see attitude towards this. If the bidding can be high this time, the cold winter in the real estate market will come to an abrupt end.

But in Luo Qihong's opinion, the land market is not entirely controlled by the Hong Kong government. To sell land, there must naturally be real estate developers willing to take over, perhaps by bidding at a low price.

A few days later, Dean Securities Investment Company

Bai Jinyan, Zhang Haipeng and Hu Yanni gathered in the office to report to Luo Qihong.

Bai Jinyan is now mainly responsible for the Japanese market and the company's operations, while Zhang Haipeng and Hu Yanni are responsible for monitoring the Hong Kong stock market and the US market (rarely investing, operating through external securities companies).

"The Hang Seng Index has fallen below 1 points and is currently at 971.56 points. The downward momentum has weakened significantly compared to the past few days. We estimate that the Hang Seng Index will fall to 7 points this year, and the stock market will not be very good next year." Hu Yanni reported. Then Zhang Haipeng reported, "Many foreign investors are also withdrawing from Hong Kong. They are selling stocks crazily to try to recover some funds. Some foreign securities companies have also retained blue-chip stocks, but they are all transferring funds away."

"Many banks and financial companies still have a large amount of bad debts, which were not noticeable when the market was good, but now these bad debts have begun to affect the normal operations of banks and financial companies, and some bank shareholders are holding them accountable."

"We still believe that a financial crisis similar to that in 65 is brewing, and a large number of banks and financial companies will go bankrupt or be taken over by the Hong Kong government."

Luo Qihong glanced at Zhang Haipeng and thought to himself, "There's something here!"

"What losses have our customers in Hong Kong suffered?" Luo Qihong asked.

Hu Yanni replied, "After our early warning, many customers withdrew from the stock market. Only about 28% of customers did not believe in our judgment and chose to stay."

"However, we had already made adequate preparations before the disaster, and after receiving orders from customers, we also sold our stocks promptly. 28% of our customers suffered losses of around 10% to 20%, and the actual loss was around 7%."

"Well! In the future, the company's assessment of the market must be notified to customers in a timely manner. As for other work, cancel them all." Luo Qihong believed that the purpose of the company's previous publicity had been achieved, and in the future it would be necessary to act in accordance with the rules of the securities industry.

"Are you worried that our work will affect our clients' investments?" Bai Jinyan asked doubtfully.

Luo Qihong smiled and said, "The more you do, the more mistakes you make! Our company's reputation has spread far and wide. In order not to affect our reputation, we can only follow the same industry practices, so that there will be no problems."

Bai Jinyan thought for a moment, then nodded in agreement.

"Some clients are asking us if we have other good investment projects," Hu Yanni asked. "How should we respond to them?"

"Show them the analysis report on Hong Kong's industrial market. Don't say anything else. Let the clients make their own judgment." Luo Qihong doesn't like clients who don't trust Dean Securities.

There is a saying that goes, "There is no boat to take after Suzhou!"

He knew that these clients wanted Dean Securities to help them invest in the Japanese market, but he didn't want to help these people get rich. Of course, these clients could find other investment companies to do it.

"I'm afraid these clients want to follow us and invest in the Japanese stock market." Hu Yanni asked tentatively, always paying attention to the expression on Luo Qihong's face.

Bai Jinyan knew Luo Qihong better than Hu Yanni, and knew that Luo Qihong was throwing a tantrum, so she defended the company's interests and said, "Our company is not the only one that invests in the Japanese market. If we refuse, customers will most likely go to other companies. Why don't we just go along with their wishes?"

Luo Qihong waved his hand and said, "You decide, but don't say too much to them. Let them choose for themselves."

"Okay!" A hint of joy appeared on Bai Jinyan's face, and he looked at Hu Yanni.

Zhang Haipeng also reported on the situation of the US market. At present, except for technology stocks, other stock types have not seen much improvement.

白谨言汇报起日本市场的情况“目前东京日经指数已经上涨到7千5百点，较上半年上涨接近1千5百点，我们买进的股票基本上翻了2番，总投资达到6.4亿港元。”

"Our clients have an average profit of 34%. This news has also brought us a lot of new clients. Now the company's clients have invested more than HK$10 billion and earned nearly HK$4 million in commissions."

Luo Qihong smiled and said, "It seems that our investment direction is very profitable. We will continue to attract more customers to invest in the Japanese market and strive to obtain more than 83 million Hong Kong dollars in commissions before 7."

Bai Jinyan nodded and said, "Well, let's do our best. When do you plan to buy the bottom of the Hong Kong stock market?"

"It is expected to be the second half of next year at the earliest, but the company needs to set aside some funds. You can still make some money from industrial stocks in Hong Kong." Luo Qihong said with a faint smile.

Bai Jinyan was stunned for a moment, then he understood. However, Zhang Haipeng and Hu Yanni were very confused. The Japanese stock market was much more profitable than the Hong Kong stock market, so why should they leave some money behind?

However, seeing that Bai Jinyan had no doubts, the two of them wisely thought that this was one of the company's secrets, and neither Bai Jinyan nor Luo Qihong intended to tell them.

After the two left, Bai Jinyan asked, "Are you worried about some important acquisitions happening? Or do you want to initiate an acquisition?"

"Some companies are going public, and I also have acquisition plans." Luo Qihong said in a deep voice, "Our home base is still Hong Kong. We can't put the cart before the horse just because the Japanese stock market is easy to make money."

"The current situation in Hong Kong is very bad, but it is also an opportunity for us, as I told you before."

Bai Jinyan is an investor and understands that this is a small-scale bottom-fishing to prevent some important companies from being taken away by others. After all, some companies can still make a lot of money when the market is good.

Bai Jinyan thought for a moment and said, "Can we take advantage of this opportunity to really extend our hand into the American market? The current American market economy is still in a downturn, which is a good opportunity to enter."

Luo Qihong was slightly startled. He didn't expect Bai Jinyan to make such a suggestion at this time. "What do you want to do? Acquire a company, or open a new one?"

"Just acquire a small securities company directly. It's really troublesome to set up a new company." Bai Jinyan said.

(End of this chapter)