Hong Kong 1980: The Savage Era

Chapter 228 [Crisis is Coming]

Mid to late March
The Hong Kong market is even more turbulent, with wealthy people fleeing capital at an increasingly serious rate. A large number of properties are being sold off, and prices are falling lower and lower.

In fact, even the middle class has no way to move their capital. Only the rich have assets that need to be sold and transferred. At this time, the rich in Hong Kong only account for 2% of the population, but they control more than half of Hong Kong's wealth.

Such a situation caused the lower- and middle-class citizens to start to panic. There were even rumors that they had to prepare food, clean water and other daily necessities, otherwise they would starve to death if a war broke out.

Fortunately, the mainland's official media in Hong Kong published a statement in time to dispel the rumors, otherwise it is unknown what consequences would have occurred.

In his previous life, Luo Qihong had only heard about the chaos in Hong Kong during the great negotiations. This time, he experienced it personally. It was really scary. All kinds of ambitious people were playing tricks and trying to shake people's hearts in order to pursue their own personal interests.

If it weren't for the memories of his previous life, he wouldn't be able to sit on the mountain so firmly. Of course, he also wanted to help, after all, they were all compatriots. Unfortunately, his personal power was too small, and no one would believe what he said, which would only hurt himself.

In fact, the chaos in Hong Kong is also due to the Hong Kong government. Perhaps they want to use the unrest in Hong Kong to gain more say in the major negotiations.

The two elders of the Luo family were also extremely panicked at first and wanted to sell their assets and run away, but they were calmed down by Luo Qihong. However, they were still uneasy.

For this reason, Luo Qihong asked them to do hard labor at Shengyun Printing. Once people are busy, they will not be able to take care of other things.

Such an environment has seriously affected the local market, with real estate companies being the hardest hit. Among these real estate companies, several are in the most difficult situation, such as Hongkong Land Development, Hang Lung Properties, Carrian Properties, Carrian Properties and Great Eagle Properties.

As one of the five major Chinese companies in Hong Kong, Hang Lung Group, in 81, led three consortiums to win the development rights of nine metro station properties along the Hong Kong Island railway. In each project, Hang Lung held more than 3% of the equity, which was a very popular period.

At this time, Hang Lung Group had completed the construction of Cotton Tree House on Murray Road in Central and was planning to start construction of Heung Shan Building (today's Lippo Centre) on Admiralty 6. The land area was 9 square feet and had a buildable floor area of ​​104.3 million square feet.

However, according to the requirements of the Hong Kong government, the consortium led by Hang Lung Group still needs to pay the balance of HK$14 billion, and the deadline is to complete it within 2 days.

Cluck! !
There was a knock on the door, interrupting Luo Qihong's thinking while reading the newspaper.

"Come in!"

"Boss, there's big news." Chen Zhilong rushed in. "Hang Lung's request to the Hong Kong government and the MTR Corporation to reduce the land price of Admiralty Section 10 to HK$11 billion was rejected. In addition, the Japanese bank that agreed to lend Hang Lung HK$ billion temporarily withdrew its promise. It is very likely that Hang Lung will give up this project."

Hang Lung has already paid a deposit of HK$4 million to the MTR Corporation for the Admiralty Section 4 MTR Station development project. If the balance cannot be paid on time, the HK$ million will be "forfeited".

In his previous life, this was big news, and Luo Qihong naturally knew about it.

At this time, Hang Lung Group is like an eel on the beach, which will be crippled if it doesn't die. Its vitality must be seriously damaged.

Luo Qihong fell into deep thought. As for him personally, he was certainly salivating over the land in Admiralty Section 2. Unfortunately, neither the Zhaoan Real Estate Company nor he personally could take over the project together.

Then Chen Zhilong reported on the situation of Eagle Properties, because Luo Qihong was very interested in the Regal Hotel under Eagle Properties.

Currently, in the first half of September, the losses of one of its subsidiaries have reached 9 billion yuan and the company has fallen into a serious financial crisis.

However, Luo Yingshi of Eagle King Properties does not seem to be willing to accept his fate. He is hoping for luck and wants to hold on until the last moment, so now is not the best opportunity to take action.

"The situation of Baohua Construction Company is not bad. Since it has no external debt, it is just a little tight on the cost of maintaining the company's operations. However, its share price has fallen by nearly 25%, and a number of shareholders have sold a lot of shares."

"According to our investigation, the private companies of these shareholders all have a lot of debts, and now is the time to take action against them."

Chen Zhilong has always been a little anxious when doing things. It may be that Kang Wenyi and Cheng Jianshen pushed him too far.

Luo Qihong shook his head and said, "Continue to monitor the situation of Baohua Construction Company. Now is not the best time to acquire it. We must spend the least cost to successfully acquire it. There are many good things on the market now. The amount of our funds represents how much good things we can consume, so we must spend the least cost to acquire it."

"Yes!" Chen Zhilong left the office unwillingly.

Tuesday, March 10

Jianing Company suddenly announced the cancellation of its interim dividend and replaced it with a ten-for-one bonus share. At the same time, it issued 5 million preferred shares to raise 5 million yuan.

The announcement was issued in the morning and immediately caused a sensation in the market.

Many shareholders realized that Jiani Company had fallen into trouble and was no longer the same Jiani Company as before.

As a result, stockholders began to rush to sell the shares of the Jianing Company. When the market opened in the afternoon, the stock price plummeted, falling from 1.52 yuan per share to 1.42 yuan in just one hour (from the end of 81 to September 82, the Jianing Company issued a large number of new shares, causing the stock price to no longer be the previous price).

At the same time, Luo Qihong also received news about Yida Group. Zhong Zhengwen was facing bankruptcy and Yida Group was on the verge of liquidation, which was several times more serious than Jianing Company.

Yida Group, with a market value of more than HK$20 billion, has a debt of HK$21 billion and a secured loan of HK$16 billion, totaling more than HK$37 billion. Even the five Chinese companies may not be able to stay out of such a huge debt, let alone Yida Group.

"Boss, Jianing Company and Yida Group are beyond saving. It's only a matter of time before they collapse." Cheng Jianshen said solemnly, "When the giant dies, many small giants will be born. We can get more benefits from Yida Group."

Yida Group and Jianing Company seem to be two companies, but in fact they are one company. If Yida Group collapses, Jianing Company will certainly not be spared. Luo Qihong and others have made a lot of preparations for the bankruptcy of Jianing Company, but Yida Group is not prepared.

Luo Qihong smiled and said, "We don't have the strength to take over Yida Group, and Yida Group's debt is too high, which will only drag us down. It's better to wait for it to go bankrupt, and then we can get some high-quality things at the auction."

Seeing this, Cheng Jianshen could only nod his head. The company's current funds were planned, and it was difficult to allocate a large amount of funds to deal with the Yida Group project.

“There are too many competitors at the auction. Why don’t we talk to the bank and snatch the ideal assets midway?” Kang Wenyi suggested.

"Manager Kang, it's a good idea to intercept the assets midway, but those people in the bank are very smart. They will definitely take the opportunity to ask for a high price, which will be much higher than the auction price." Chen Zhilong retorted.

Luo Qihong smiled and said, "If there is a way to deal with the bank, this is the best way."

Seeing his boss's support, Kang Wenyi said, "We have to give it a try. If we can get it at a low price, it will be the best for the company."

"Okay! I'll leave this to you, Manager Kang." Luo Qihong consoled him, "Do it your way. It doesn't matter if you can't get it. It's just an idle move anyway."

"Yes, boss!" Kang Wenyi agreed.

"Mr. Chen, you need to keep a close eye on the commercial buildings in Central recently, especially those small and medium-sized commercial buildings with only scattered owners." Luo Qihong looked at Chen Zhilong and instructed.

The strength of Siu On Real Estate Company is limited, and the funds for acquiring large commercial buildings in Central are tight. It is better to win by quantity. After all, the prices of small and medium-sized commercial buildings fall faster than those of large commercial buildings.

Monday, September 11
Yida Investment Company (formerly Jie Lian Enterprise Company), a subsidiary of Yida Group, announced its liquidation, and the company's chairman Zhong Zhengwen fled Hong Kong in a hurry.

Due to the relationship between Yida Group and Jianing Company, Jianing Company's fundraising and share offering plan was rejected by the CSRC, and personnel were organized to investigate Jianing Company's finances.

The news came out like a bolt from the blue, and the share price of Jianing Company plummeted further, falling below 8 cents per share.

Jianing Company Meeting Room

Chen Songqing, director He Guiquan, brothers Lin Xiufeng and Lin Xiurong from Baishunning Group, accountant Bige and six others gathered here to hold a meeting to discuss how to solve the difficulties of Jianing Company.

In fact, the Lin brothers of the Baishunning Group were not directors of the Carrian Company and did not seem to have much to do with this matter. However, the transaction of the Golden Gate Building had not been completed. Once the Carrian Company went bankrupt, the Lin brothers would face the risk of being prosecuted by the Independent Commission Against Corruption. The charge would naturally be conspiracy to defraud Carrian shareholders and creditors by using uncertain and misleading words and concealing Carrian's profits, liquidity and financial status.

Therefore, the Lin brothers were forced to show up at Jianing Company to discuss how to help.

The father of the Lam brothers was one of the founders of Hang Seng Bank. Their elder brother, Lam Siu-liang, ran the family business for 30 years and built wealth, power and reputation for the family. Unfortunately, Lam Siu-liang passed away 70 years later. Lam Siu-feng took over the family property, but his investments repeatedly failed and he is now imprisoned by the Carrian Company.

"Chen Songqing, if you have something to say, please say it quickly. We have other things to do." Lin Xiufeng said bluntly.

The Lin brothers still believe that the Lin family is the top wealthy family in Hong Kong. Even the Governor of Hong Kong has to give some face to them. Naturally, they do not take Chen Songqing seriously.

Chen Songqing said with a wry smile, "Don't worry, Dalinsheng. Jianing Company may seem very dangerous now, but it is actually very easy to turn things around. I asked Dalinsheng and Xiaolinsheng to come here to ask you to do me a favor."

"What do you want to help me with? Tell me now. Don't keep us in suspense. We don't have time to play with you." Lin Xiufeng said unhappily.

"The major shareholder of Hang Seng Bank is HSBC. Now, Jianing Company needs a loan of 2 million yuan, so I hope Mr. Lin can say hello to HSBC." Chen Songqing said it easily. The effort that the Lin brothers need to put in cannot be accomplished with just a few words.

Lin Xiufeng sneered, "You don't think that HSBC is owned by my family, do you? Jianing Company is facing such a big problem now, and the Securities and Futures Commission is going to check the accounts. It will be difficult for HSBC to lend money to you again."

"Mr. Dalin, you are not the only one who can help. I will also ask others to help. Mr. Dalin just needs to say hello. You don't need to worry about the rest." Chen Songqing said with a smile, "Only if HSBC is willing to lend money can the Jianing Company be revitalized. Otherwise, we will be in trouble."

"Are you threatening me?" Lin Xiufeng stared at Chen Songqing with a very unhappy look on his face.

Chen Songqing laughed dryly and said, "How dare I threaten Dalinsheng? I'm just asking for his help."

Seeing Chen Songqing give in, Lin Xiufeng didn't want to continue to argue, so he waved his hand and said, "Okay, I'll call the vice president of HSBC to intercede for you, but the Golden Gate Building deal must be done as soon as possible. I don't want to be in the same boat with you all the time."

"Don't worry, Dalinsheng! Once this matter is over, I will clean up the Golden Gate Building immediately." Chen Songqing said with a dry laugh.

(End of this chapter)