Hong Kong 1980: The Savage Era

Chapter 33 [Maintaining the Status Quo and Advancing] (Please Collect)
Luo Qihong smiled and said, "In a few days, I can sell the shares of Hang Lung Company I hold. The funds raised can be used to absorb the additional shares of Yiren Real Estate Company. Now it depends on whether you can control the situation."

Lin Luoqi frowned and said, "Do you mean to control Yiren Real Estate at all costs? In this case, what about the asset and debt restructuring in the future?"

"I think the worst outcome is to seek protection from your family and lose control of Yiren Real Estate. To be honest, Rocky, your elder brother Lin Luoxun is not an ordinary person. It will be a bit difficult for you to gain a foothold in the family company. If you don't even have the courage to give it a try, how can you turn things around?" Luo Qihong advised Lin Luoqi very seriously.

While persuading Lin Luoqi, Luo Qihong realized that if he wanted to make a career in Hong Kong, it would be impossible not to clash with these big and small families. Instead of acting rashly, it would be better to accumulate experience from childhood to adulthood.

Hong Kong is too small, and there is no blank business. Even if it is a blank, if you have created a new field, there will still be people who will be jealous and come to snatch it away. So in the final analysis, you still have to fight.

The principle is simple. If you win, it's yours. If you lose, you have to be the "mud on the bottom" (the lower class people).

Lin Luoqi knew that what Luo Qihong said made sense, but he also wanted to understand the specific operation of the plan. "What do you think? Tell me."

"It's very simple! You first acquire Yiren Real Estate, and then issue new shares to me after you take control of it. I can transfer about 300 million, and then untie the pledged loans layer by layer, by paying back one and selling one." Luo Qihong said.

"Then the assets of Yiren Real Estate Company will decline seriously. How can we increase the market value in the future?" Lin Luoqi's face showed doubt.

"The stock market! Increase a certain amount of funds through stock speculation, and then speculate on high-quality properties and raise funds for rights issue." Luo Qihong continued, "Raising funds for rights issue is a bit difficult, but speculation on high-quality properties will definitely restore the company's vitality."

It sounds simple, but in actual operation there may be unexpected events or even unsolvable accidents.

Lin Luoqi took a deep breath and gritted his teeth and said, "Okay, let's go crazy for once. If we fail, the worst that can happen is that we can go home and become useless trash."

Luo Qihong was trying to fool Lin Luoqi, but what he said was the truth. The heirs could lose their courage because they were conservative and did not need to be enterprising, but it would be difficult for Lin Luoqi to have the right of inheritance unless Lin Luoxun and Lin Luoshi died.

Therefore, if Lin Luoqi wants to live a fulfilling life, he must leave his family’s comfort zone and create his own career.

The reason why the Lin Luoxun brothers stopped him was that they were worried that once Lin Luoqi became powerful, he would work together with his mother Xu Jiawen to swallow up Haofeng Real Estate. They also didn't want Lin Luoqi to overshadow them.

"We must acquire 10% of the shares as soon as possible, preferably before the market closes tomorrow," Luo Qihong reminded.

"I understand!" Lin Luoqi nodded.

The next morning
Lin Luoqi did not go to work, but went directly to Sun Hung Kai Securities and asked Zhang Bindu, the manager in charge of the acquisition, to buy 10% of Yiren Real Estate Company's shares from the stock market at any cost, and hoped to complete it before the market closed.

The fact that Lin Luoqi was absent from work attracted Lin Luoxun's attention, but unfortunately he missed the opportunity and it was difficult to track down Lin Luoqi's whereabouts.

So Lin Luoxun guessed that Lin Luoqi was going to make a comprehensive acquisition of Yiren Real Estate Company today.

Lin Luoxun was very decisive. He called his broker and asked him to buy shares of Yiren Real Estate Company from the stock market and raise the stock price at all costs.

The purpose of this move is to exhaust Lin Luoqi's funds. Lin Luoxun has already investigated the amount of funds in Lin Luoqi's hands, which is only more than 300 million. However, he only knows that Lin Luoqi holds 18% of the shares. He does not know how many stocks Lin Luoqi has absorbed from the stock market.

Therefore, I think it is a bold guess that Lin Luoqi holds about 36% of the shares of Yiren Real Estate Company.

Luo Qihong came to the HSBC trading hall early in the morning, waiting for the rise of Hang Lung's stock price. As long as the stock price rises to a suitable price, he will sell it without hesitation. "Mr. Luo, it's bad! The stock price of Yiren Real Estate, which you are watching, is abnormal. Now there are big investors buying stocks. The stock price has risen from 0.5 yuan to 0.8 yuan, an increase of 6%." Zhang Taotao hurriedly found Luo Qihong, with a panic in his tone.

Luo Qihong was slightly stunned, feeling that something was wrong. Even if Lin Luoqi's movement was huge, it wouldn't rise so high in an instant. Could it be that Lin Luoxun was doomed?

"How many accounts are buying stocks?" Luo Qihong asked.

"There are at least 6, and they seem to be scrambling for shares," Zhang Taotao replied.

Luo Qihong couldn't figure out whether to push up the stock price or to compete to buy stocks.

Forget it! Leave it to Lin Luoqi. There is no way to raise funds in a short time.

Luo Qihong sighed in his heart that the share price of Hang Lung Group was 8.6 yuan, and the rise had begun to slow down. The prospects were not so good anymore, so he also considered selling it.

"Don't worry about Yiren Real Estate Company. I have other plans." Luo Qihong asked again, "How is China Bus Company? Is there anything unusual?"

After careful consideration, Zhang Taotao said, "I found a very strange phenomenon. One account only absorbed 20 shares and then stopped withdrawing. Now there is no fluctuation in the scattered shares of China Bus."

"20 shares?!" Luo Qihong suspected that it was the operation of Asia Securities Company, but why did they stop after purchasing only 20 shares? This only accounted for thousandths of the total share capital.

The founder of Asia Securities was Willis, the former boss of Hutchison Whampoa. After Li Ka-shing took over Hutchison Whampoa, Willis withdrew from Hutchison Whampoa and founded Asia Securities.

Wells is well versed in securities and is good at restructuring a company's equity structure. He is known as the "corporate doctor" and has gained a great reputation in the Hong Kong business community in just one year. Many companies turn to Asia Securities for acquisitions and restructuring.

At this time, the Luo Yingshi family was at its peak, and the transfer of funds should have been relatively smooth. Why did it stop after only acquiring 20 shares? What on earth was Welles doing?

Luo Qihong couldn't figure it out, he even suspected whether Palibao Investment Company wanted to give up the fat piece of meat of China Bus Company.

In fact, the funds of Palibao Investment Company were not as abundant as Luo Qihong imagined. Under the operation of General Manager Luo Xurui, Palibao Investment Company had taken over 405 million shares of China Bus from the Luo family company at a cost of 6500 million yuan, and would need more than 1 million yuan in acquisition funds.

This is not a small amount of money. For the newly acquired Palliative Care Investment Company, it is more than half of its market value.

If it weren't for the backing of Regal Hotels, Palibao Investments would have been in trouble.

The shares of China Bus Company are blue lanterns again. If they are bought in large quantities from the stock market, it would be like throwing a firecracker into a stagnant pool of water, which would definitely alarm China Bus Company.

If China Bus Company had known about this in advance, Palibao Investment Company would have to pay a greater price and the chances of success would have been greatly reduced.

"Keep keeping an eye on China Bus Company." Luo Qihong sighed. He still didn't believe that Luo Xurui, this 'strong man', would be willing to abandon China Bus Company.

"Okay! I will continue to keep an eye on the China-Pakistan company." Zhang Taotao was very confused. Why was Luo Qihong so sure that there would be an acquisition by China-Pakistan?
In the afternoon, the share price of Yiren Real Estate Company soared to 1 yuan. Investors finally noticed this abnormal stock, and some of them began to rush to buy it. At 2:45, the share price had risen to 1.3 yuan, an increase of more than 160%.

(End of this chapter)