Hong Kong 1980: The Savage Era

Chapter 463 465 [A Trip to the United States]

mid-December.

Luo Qihong made a decision and flew to New York, USA.

On the plane, Buskere, the head of Citibank Hong Kong, sat with Luo Qihong. The two have known each other for many years and are also good friends in private.

Since the 'American Banking Crisis' event, Citibank, one of the largest commercial banks in the United States, has suffered huge losses in real estate loans and has been urged by the Federal Reserve to increase its capital reserves.

When this news came out, many people were worried that Bank of America would go bankrupt, so they began to sell its stocks, causing the stock price to plummet and creating a major crisis.

Those senior executives are seeking help from other large companies or families, hoping that the bank can survive this crisis.

There have been many bank failures in the history of American banking, including many large banks. The U.S. government has always believed in the free market and will not intervene in the banking market just because of a Citibank.

Therefore, Bank of China had long given up seeking help from the government.

Buskele believed that this was his chance to rise. As long as he could revive the Bank through the wealthy man Luo Qihong, he would be able to return to the US headquarters and become vice president or even president.

Busquere and Luo Qihong are very familiar with each other and know that a lot of his wealth comes from finance. It is not an exaggeration to call him the stock god of Asia, but this person is quite low-key.

The reason why Luo Qihong agreed was because he knew that this investment was very promising. In his previous life, the annual return rate of the Bank of America was as high as 90% throughout the 40s. It would only take a few years to get his investment back and make a fortune on the value of the stock itself.

Moreover, Citibank is very strong in the United States. If Luo Qihong becomes its major shareholder, even if he has no management rights but only dividend rights, he can deter some villains and make the family's investment in the United States smooth.

This is undoubtedly a solution that kills two birds with one stone.

Luo Qihong also wants to leverage the power of Citibank to expand its business in the United States, including entering real estate properties such as commercial buildings and high-end residences.

Since 89, the vacancy rate of office buildings in Europe and the United States has increased year by year, and the prices of office buildings have naturally plummeted as well. However, Luo Qihong clearly remembers that this situation will change in 92.

Now is clearly a good time to buy at the bottom.

Due to the unclear situation, the speed of bottom-fishing is not as fast as in Hong Kong, and it may take more than a year.

In fact, the returns from office buildings in Europe and the United States are not as good as those in Hong Kong, but there are stable incomes, and it is also a bargain, so the overall profit will be huge.

On the plane, Luo Qihong looked at the white clouds below through the round window and was in a good mood.

"Mr. Luo, if the audit is passed, how much do you plan to invest?" Buskere had high hopes for this because he knew that Luo Qihong had always wanted to invest in the United States.

Luo Qihong laughed and said, "It's impossible to pass the audit. As far as I know, commercial real estate in the United States is terrible, and banks have so many bad debts. Auditors are not just there to eat."

On the surface, bottom fishing is a matter of vision, but in reality it is a gamble. The operating conditions of those companies are so bad that they are basically going to go bankrupt.

The current share price of Citibank is $12. According to the think tank's analysis, the share price may fall to $8 as commercial real estate continues to deteriorate.

Busquere's expression changed. "The bank has encountered many crises before and has always weathered them safely. This time will be no exception."

Luo Qihong said, "We are old friends. There is no need to tell these lies. The decision to invest in Wan Citibank will not change, but I hope the bank will give me a satisfactory plan."

"Mr. Busquere, I am rescuing the Bank of America, not just making an investment."

"I know. Don't worry, I will definitely feedback your opinions to the top management. I believe they will come up with a plan that will satisfy Mr. Luo." "That's good." Luo Qihong nodded.

Hengan Investment Company office in New York.

Luo Qihong sat in a leather office chair and carefully read the financial report, including recent external investment information.

"There is still $4.7 million left in funds, and the purchase progress is pretty good. Let's stop for a while and shift the company's attention to commercial real estate."

George, the company's president, said, "It is not convenient for an investment company to directly manage real estate. We need to create a real estate company."

Luo Qihong nodded and said, "Okay, let's just acquire a small real estate company, preferably a property management company."

"OK! Boss!" George said, "The financial situation of the Bank of America is very bad and it is on the verge of bankruptcy. Many large companies are unwilling to intervene in this matter, fearing that the bank will collapse and all their investment funds will be lost."

"Do you want to think about it again?"

Luo Qihong thought for a moment and said, "Investing in Wan Guo Bao Tong Bank is a final decision, and there is no need to discuss it further."

"A similar situation occurred at Bank of America in 87. It has improved now, but I suggest that the investment amount be controlled within 1 million US dollars. This will avoid excessive losses that affect the company." George still hopes to reduce the losses. Although the boss is very rich, this is his responsibility.

"No." Luo Qihong shook his head and continued, "I am very optimistic about the US economy in the next ten years. The crisis of Citibank is likely to disappear in one or two years, and it will take at most three years. So I plan to invest $3 million to become the largest shareholder of Citibank."

How could he let it go if he knew he could make money? Even if he remembered it wrongly, it was just the tip of the iceberg of his personal assets and there was no need to worry too much about it.

And his investment in technology stocks will surely make him a fortune, which is even more harmless.

"Yes, Boss! Then I will contact the bank as soon as possible."

"Remember, try to keep the stock price down to $8, and no more than $9." Luo Qihong was of course speaking business as usual. He would definitely make as much money as possible from the foreigners, but there was no room for favors.

George was well aware of the capabilities of his boss, Luo Qihong. Hengan Investment Company had earned several times the profit in just two or three years in the United States. It now had cash and assets exceeding $2 million, which was comparable to some large companies.

"Ok!"

After several days of negotiations, John Rio, chairman of Citibank, finally agreed to issue new shares at $8 per share.

At that time, the market value of Bank of America was less than US$42 billion. Luo Qihong purchased new shares for US$2 million, accounting for 7.35%, which was obviously a great bargain.

But in fact, Luo Qihong would deposit a large amount of cash in the bank, at least US$2 million, and agreed that the bank could use the funds at will in the next six months. In this way, CITIC Bank would obtain at least US$4 million in cash.

With this $4 million in cash, the bank can easily deal with bad debts and revive the bank.

Luo Qihong knew very well that the smooth investment in Citibank was possible thanks to the 'banking crisis'. The US government would not block the review of skin color, and it would not be so easy to invest in Citibank in the future.

John Rio wanted to invite Luo Qihong to attend the banquet and announce the bank's situation to the outside world to further save the stock price, but unfortunately Luo Qihong politely declined.

His idea is very simple. He just wants to make money in the American market in a low-key manner and does not want to be too high-profile. After all, this is the home ground of white people.

Those white people still have a lot of hostility towards Asians. There is no need to cause a big fuss here and attract the attention of white people.

(End of this chapter)