Hong Kong 1980: The Savage Era

Chapter 284 285 [A dragon crossing the river is inferior to a local snake]

The export trade business has always been up and down, and will only be stable for a short period of time. It is also easy to be snatched by local trading companies. The import trade business is even more intense. Nowadays, except for Dachang Trading Company under Hengchang Enterprise, Hong Kong's rice, cooking oil, etc. are all controlled by British capital, earning huge profits for companies such as Jardine Matheson and Swire.

Luo Qihong's Hexiang Trading Company also has some import trading business, but compared with big companies such as Jardine Matheson and Swire, it is undoubtedly dwarfed and not worth mentioning at all. However, it also provided Hexiang Trading Company with nearly 10 million yuan in profits.

It is conceivable how much profit Jardine Matheson and Swire Pacific made from the import trade business.

Therefore, as soon as Luo Qihong found that the products he represented and purchased began to lose their competitiveness, he began to look for strong substitutes, including the classic fans of Aimego Company.

In fact, the reason why Amigo's classic fans are so popular is thanks to the energy shortage in America and Europe. The government has no choice but to promote "energy conservation and emission reduction" to ensure the energy supply of the industrial manufacturing industry.

"How is the import situation in the mainland?" Luo Qihong looked at Wen Jiatao.

Wen Jiatao replied, "Currently, mainland China's ready-made clothes, small jewelry, electronic watches and other goods are very popular. Although the profit margin is relatively low, the volume is large and they already account for 4% of South Korea's trade. There is a lot of room for growth. It is estimated that within two years, they will be comparable to South Korea."

"Very good! We must focus on the trade situation in the mainland and extend our hands to all walks of life. Remember not to reach out to those state-controlled industries." Luo Qihong ordered Wen Jiatao.

Having lived in the mainland for so long in his previous life, Luo Qihong had some understanding of the rules of the mainland. As long as he didn't do anything stupid, it would be very easy to expand.

"Yes, boss!" Wen Jiatao responded quickly. He was originally the weakest among all the persons in charge. Now he could slowly regain some status, so of course he had to seize it.

The Eastern Electric Company was also one of those companies that had come from outside Hong Kong, but such companies had some privileges and could seek help from the Hong Kong government, which caused Li Jiacheng a lot of trouble.

Cable & Wireless wanted to acquire 38.8% of Hong Kong Telephone Company's shares held by Hong Kong Land Development and offered HK$14 billion. After Li Jiacheng intervened, the price was 10% higher, namely HK$15 billion.

For the heavily indebted Hong Kong Land Development, the extra 10% was like a blessing after a long drought. It did not want to take into account the national identity and asked Cable & Wireless to make a new offer.

The Cable & Wireless Company did not sit idly by and sought help from the Hong Kong government and its own country, saying that many franchised companies had fallen into the hands of Chinese companies, which was a great blow to the British influence in Hong Kong, and requested the Hong Kong government to intervene.

However, Cable & Wireless underestimated the strength of Hong Kong Land. Hong Kong Land directly confronted the Hong Kong Government and asked whether the difference would be made up by the Hong Kong Government, or whether the Hong Kong Government would inform the bond banks not to collect the debt within two years.

Unfortunately, the Hong Kong government cannot do any of these. In 84, the Hong Kong government's finances were facing a deficit. How dare it embezzle taxpayers' money? As for saying hello to the banks, I'm afraid the banks will ask for more benefits.

As a result, the Hong Kong government no longer paid attention to the request of Cable & Wireless and even mobilized forces from the UK to suppress those who came to help.

The helpless Dadong Telegraph Company could only honestly compete with Li Jiacheng in the market bidding. It was unknown how honest it was.

When Luo Qihong heard the news, he smiled widely, "Li Jiacheng is definitely involved in this. It seems that these British guys can't beat Li Jiacheng."

Bai Jinyan stole a glance at Luo Qihong and said worriedly, "The telephone company is slightly inferior to the electric light company. Aren't you going to restrict Li Jiacheng's expansion? Do you need to do something?"

"The telephone company is not a listed company. If we take action, won't it tell everyone that we are going to become enemies with Li Jiacheng? Are you ready to go to war with Li Jiacheng?" Luo Qihong looked at Bai Jinyan half-jokingly. Bai Jinyan was speechless. Taking action with Li Jiacheng would seriously affect the business.

"Continue to pay attention to the movements of Li Jiacheng and the Great Eastern Telegraph Company, and don't interfere easily in other matters." Luo Qihong said, "We have a lot of things to do recently, and we are preparing to take over a large number of companies."

"From Wheelock Company?" Bai Jinyan suddenly became happy. Half of Wheelock Company.

"Well, Hexiang Trading Company will first take over Lane Crawford Development, and then go to De'an Company to take over United Enterprises and other companies." Luo Qihong said.

He has always followed the principle that professionals should do professional things, and an investment company really cannot do the business of a trading department store.

As for real estate, shipping, etc., he can only let De'an Company take controlling stakes, after all, his private funds are very limited.

Bai Jinyan nodded and said, "Buy it directly with cash?"

"I know that De'an Company's capital chain is very tight, but it will take some time to take over these companies. It's just that Lane Crawford Development's acquisition is imminent," Luo Qihong explained.

"That's good. Do we need to send people to manage those companies that belong to us?" Bai Jinyan's starting point was good, but he acted too hastily and it was a bit ugly.

"You prepare the people first. I will manage Henderson Land Development for the time being. We can take our time with this matter." Luo Qihong also felt a lot of pressure. He had too many companies under his control and it was difficult to take care of them all.

The real estate company was to be transferred to Zhaoan Real Estate Company, but at that time Zhaoan Real Estate Company lacked the funds for the acquisition, so it could only be done by De'an Securities Investment Company.

"Okay!" Bai Jinyan continued to report, "In order to restructure the debt of the Hong Kong Land Company, Simon Keswick has proposed to increase Jardine Matheson's shareholding in the Hong Kong Land Company to more than 40%. At the same time, many of Jardine Matheson's overseas projects have been stopped, which has brought back a large amount of funds."

"If Simon Keswick's plan succeeds, Hong Kong Land will hold a 30% stake in Jardine Matheson, and Jardine Matheson will hold a 42.6% stake in Hong Kong Land, forming a 'linked ship' structure."

"This move is very influential, making the control of both parties as solid as a rock. It may also be a response to the acquisition of Hong Kong Land by Chinese companies that was circulated in the market a few years ago, to prevent such incidents from happening again."

This chain holding strategy seems stable, but in fact it has a big flaw. Once there is enough capital, the two companies can basically be wiped out in one fell swoop.

And the flaw lies in Jardine Matheson Group. The market value of Jardine Matheson Group is only 30 billion yuan, so the acquisition is not very difficult.

Luo Qihong can see this, and so can the Chinese tycoons, but this requires a reason.

"Don't worry about him. This has little to do with us. The debt restructuring of the Swire Properties still has a long way to go." Luo Qihong decisively released the news.

(End of this chapter)