Hong Kong 1980: The Savage Era

Chapter 472 474 [Example of Reckless Advancement]

Unfortunately, many Hong Kong citizens do not buy it and still believe that Luo Qihong used the money he earned in Hong Kong to do charity in the mainland, which also caused a small drop in the share prices of his companies.

Luo Qihong felt helpless. It was difficult to extinguish the trend of public opinion. If it was allowed to develop, it would inevitably lead to complaints from shareholders. So Luo Qihong held a press conference and announced to the public: the Luo Qihong Family Charity Organization would be established.

The Luo Qihong family will donate HK$2 million every year to help poor families in Hong Kong, including medical care, education, and life.

After publicity from its media company, the incident was suppressed and the public changed their opinion.

In fact, Luo Qihong has always attached great importance to charity since 85 and donates a large sum of money to charities every year, but the lack of excessive publicity has led to the current situation.

2 million Hong Kong dollars is just a small amount for Luo Qihong's family, but the damage caused by public opinion is not small. Fortunately, Luo Qihong's prestige is there, and those shareholders have not yet had any objections.

"The losses this time are huge, and it will take a long time for business in the mainland to pick up." Bai Jinyan sighed.

Luo Qihong smiled and said, "There are gains and losses. There is no such thing as only benefits and no disadvantages. Generally speaking, the benefits outweigh the disadvantages. The mainland's economy is about to take off. It is actually too late for us to start now."

"Although the domestic market is huge, there are old precedents. Aren't you worried about changes?" Bai Jinyan asked cryptically.

The mainland has been open for more than ten years, but Hong Kong businessmen are still very wary and only dare to invest near Guangdong Province and are not very willing to go deep inland.

Luo Qihong stared at Bai Jinyan for a long time, until Bai Jinyan became a little nervous, then he said, "Investment is always risk-free, and investment without risk will not have returns. You should understand this principle."

"The opportunity to make money is still in emerging markets. Giving up on markets with hundreds of millions of people is our biggest mistake. But we should be aware that wealth has national boundaries. We must remember that we are Chinese after all."

Seeing that Luo Qihong was speaking so seriously, Bai Jinyan could only nod in agreement. In fact, Bai Jinyan had always lived in Hong Kong and did not have much sense of belonging to the mainland.

Bai Jinyan's attitude represents a part of Hong Kong people, especially the younger generation.

Since the late 80s, Wu Xian of Sing Tao Newspaper Group has invested heavily in overseas properties and spent hundreds of millions of Hong Kong dollars to acquire Yu Lang International Group, resulting in a book loss of more than 8000 million Hong Kong dollars, leaving Wu Xian herself and Sing Tao Newspaper Group heavily in debt.

As of the March fiscal year of this year (91), the bank debt of the Sing Tao Newspaper Group has exceeded HK$3 billion, and according to Luo Qihong's estimate, Wu Xian's personal debt is as high as HK$16 billion.

In order to clear up the group and personal debt problems, Sing Tao Newspaper Group was forced to announce an asset restructuring in May, which included splitting up the investments jointly held by Sing Tao Newspaper Group and Hu Xian, and focusing the business on publishing.

The restructuring advertisement published at that time also revealed that Zheng Liren and Martyn would be appointed as executive directors of the group to strengthen the group's management level. The implication was that Wu Xian should keep her distance from the group and seize Wu Xian's management rights in the group.

Of course, Hu Xian did not give up. He went around looking for connections to borrow money to resolve the pressure from the three major debt banks.

Office on the top floor of Dongchang Building.

The secretary brought Hu Xian a cup of coffee and Hu Xian said thank you.

"Ms. Hu, your condition hasn't been very good recently." Luo Qihong said with a smile.

It was Hu Xian who swallowed up the entire Yulang International Group and expelled Luo Qihong, which led to the current situation. Therefore, there is still some unpleasantness between the two.

Hu Xian was not angry. He took a sip of coffee and said, "If I had the investment vision and ability of Luo Sheng, I wouldn't have ended up like this."

"Luo Sheng, there are many people who covet Sing Tao Group. I would like to mortgage my shares in Sing Tao Group to you and borrow HK$6 million without interest."

Luo Qihong had some guesses about Hu Xian's purpose and had anticipated that Hu Xian would come to borrow money.

Why not borrow money from a bank?

The reason why Sin Hu lost the management rights of Sing Tao Group was because of the support from HSBC, Standard Chartered Bank and the Bank of New South Wales of Australia. You should know that HSBC is the dominant bank in Hong Kong, but now it doesn't support Sin Hu, and other banks dare not lend money to her.

"Oh, then what's in it for me?" Luo Qihong smiled slightly. Hu Xian had been so unkind before, so of course he wouldn't show any favors anymore. Without benefits, he wouldn't let Hu Xian get away with it easily, even if he had always coveted the Sing Tao Group.

"The current share price of Sing Tao Group has hit a record low, but it is still worth 6 million. I will buy it back at the highest price at that time, and let Luo Sheng make a fortune." Hu Xian said.

This method of drinking poison to quench thirst is deeply loved by Luo Qihong. Of course, if he were in Hu Xian's position, he would never do so, and he would not go to that extent.

Luo Qihong did not agree immediately. Even though he was very happy, he was worried that if he agreed too quickly, Hu Xian would react.

"What Ms. Hu said makes sense. But she didn't take into account the continued decline in the share price of Sing Tao Group. I am an investor and I need a guarantee, otherwise it will be difficult for me to agree."

Hu Xian frowned slightly and gritted her teeth and said, "Don't worry, Luo Sheng. Even if the share price of Sing Tao Group drops, I will return the 6 million to you. This can be written into the contract."

"Okay, if Ms. Hu goes bankrupt, I hope to take over the Sing Tao Group. What do you think, Ms. Hu?" Luo Qihong suddenly changed his mind and said directly.

Hu Xian has been in the business world of Hong Kong for decades. Luo Qihong doesn't think he can hide his thoughts, so he might as well say it out loud, at least it's aboveboard.

He was not afraid of Hu Xian going back on her word, because he was confident that he could take over the Sing Tao Group, so there was no need to be afraid of either.

Hu Xian fell silent, and soon realized that if she didn't have the money to redeem her shares, someone would swallow up the Sing Tao Group. As for whether that person was Luo Qihong, it was no longer up to her to decide.

"Okay, no problem. If I don't have the money to redeem it within three years, or if I go bankrupt during this period, Luo Sheng can take over Sing Tao Group. But I have one request."

"Please speak." Luo Qihong stretched out his hand.

“After Luo Sheng takes over Sing Tao Group, he is not allowed to cancel its listing status, and he cannot change its name. This is my life’s work, and I don’t want it to be in vain.” Hu Xian’s hands and feet were shaking.

She is old, and the current crisis is not small. She already has a premonition that she can't handle it.

"I agree." Luo Qihong nodded seriously.

He could understand Hu Xian's feelings. When he was old and had no energy, he also hoped to retain the Zhaoan name when the company changed hands.

"Thank you, Luo Sheng." Hu Xian said with emotion.

Luo Qihong suddenly felt sorry for Hu Xian and even wanted to ask her to sell off her overseas businesses as soon as possible, but unfortunately he held back the words.

This is business, there is no such thing as pity, there are only two results: win and lose.

After Hu Xian left, Bai Jinyan followed in.

"How did the talk go? Is Hu Xian really desperate?"

Luo Qihong smiled slightly, "It's done. Hu Xian is trapped in the jar, there's no way she can escape."

Bai Jinyan sat down next to him, put his arm around Luo Qihong's neck, and smiled sweetly, "Did you know that Hu Xian would be in such a situation a few years ago?"

Luo Qihong smiled and said, "I am just the planner. It is up to Hu Xian to decide whether to join the game or not."

"Remember, don't be reckless when investing. Hu Xian is an example of being reckless."

(End of this chapter)