Hong Kong 1980: The Savage Era

Chapter 556-558 [Financial Authority] (New book, please collect it)
No one knows how many families will go bankrupt because of this financial crisis. In fact, it has a great impact on Hong Kong’s wealthy people because their overseas investments are not high.

Li Jiacheng's situation is slightly better. His business in Europe accounts for about 25% of the group, and he also has a certain proportion of investment in the mainland. In other words, the business volume of companies under the Li Jiacheng family in Hong Kong only accounts for about 50%.

The impact on Luo Qihong's family is also not small. Although his overseas investments are huge, in fact, they account for 5% to 6% of the family's assets, and half of the assets in Hong Kong are in China Gas, with a market value of more than 300 billion yuan, and Zhaoan Real Estate with a market value of nearly 800 billion yuan.

This is also an opportunity for Luo Qihong. The real estate and stock markets will plummet, and the profits from bottom fishing will be huge, especially if he is well prepared.

Therefore, Luo Qihong is still somewhat looking forward to the arrival of this financial crisis.

The property prices and rents in Hong Kong are the highest in the world, especially in Central. Today, office rents in Central have risen to HK$75 per square foot. An office of 90 square feet costs HK$ a year.

In August, the Hong Kong stock market was affected by the sniping in Southeast Asian countries. The Hang Seng Index rose to a peak of 8 points and then began to fall. This was a normal phenomenon and did not cause panic in the market.

Friday, September 8st.

In the office of Zhaoan Group in the Dongchang Building in Admiralty, Luo Qihong stared at the changes in data on the computer. The technology at this time was not as advanced as in his previous life, where one could use computers to buy and sell stocks. Currently, he still needed to call his broker to do the operation.

The screen was all red, which represented a decline, the opposite of the mainland.

Today, the Hong Kong stock market plummeted shortly after it opened, and the exchange was in a miserable state.

In fact, international speculators have not yet moved to Hong Kong and are still cleaning up the battlefields in Thailand, Malaysia, Indonesia and other countries, so the disaster in Hong Kong has not really come yet.

This is just the aftermath of the Southeast Asian economic crisis, which has already made many investors unable to bear it.

The real estate market in Hong Kong has not yet fallen, but has also stopped rising and is in a wait-and-see state.

At this point, many investors have already noticed something is wrong and are hesitating whether to sell their properties.

The wealthy are already aware that this storm will definitely sweep across Hong Kong, but it is unlikely that they can escape because no one will take over the securities and properties they hold. Their only option now is to raise funds from outside to tide over the difficulties.

As a result, a large amount of external funds began to flow back into the Hong Kong market.

"Boss!" Several senior executives of the group walked in together and took their seats one by one at Luo Qihong's signal.

"Let's talk about the current situation." Luo Qihong glanced at the senior executives and then returned his gaze to the screen.

Bai Jinyan was the first to say, "Quantum Fund and hedge funds are sniping in Southeast Asia, which has a great impact on the Hong Kong market. Fortunately, we cashed out in advance, otherwise the losses would be very serious."

"I think as long as those foundations don't come to East Asia, Hong Kong's economy won't be too bad. It will still grow after self-adjustment. If the foundations come, we must also be prepared."

Cheng Jianshen then said, "The share prices of the listed companies under the group have not been affected for the time being, but there will definitely be an impact in the future. In order to prevent the share prices from falling, I suggest that the assets and financial conditions of those companies be made public to strengthen shareholders' confidence in the companies."

"Jianshen's suggestion is very good. We must speed up the implementation of the specific plan and don't wait until the stock price drops before taking action." Luo Qihong said sternly.

Seeing that no one was talking, Kang Wenyi took over the topic, "The group also owns 7 commercial buildings, including Lok Shing Hong Building and Lijing Center Building in Central, and the Hong Kong Crystal Center, Wah Kwong Building, and Cultural Center in Tsim Sha Tsui. The current value of these properties is HK$662 billion. Once a crisis comes, these property assets will find it difficult to support the market value of Siu On Real Estate Company. So I suggest that before the crisis comes, you can use the book funds to increase external assets to maintain the stock price and market value." "How about this, Dehe Real Estate Company has 5 commercial buildings in Manhattan, USA, worth more than ten billion US dollars. Siu On Real Estate can completely take them over. You can announce this news to the public after the meeting." Luo Qihong decided to use family funds to save the market value of Siu On Real Estate.

"Yes!" Kang Wenyi and Su Qishan have handled many businesses and have a deep understanding of Dehe Real Estate Company. He knows that Dehe Real Estate Company has considerable assets in Europe, the United States and other places.

"In the first half of this year, the group has sold more than 6000 residential units, completing the annual sales target ahead of schedule," said Chen Zhilong.

With the financial disclosure of assets of Siu On Real Estate Company, Asia Securities Company, and Qichang Life, Fire and Marine Insurance Company, shareholders all knew clearly the true background of these companies. As a result, the share prices of these companies rose instead of falling, making the market value of Siu On Group's series of companies exceed HK$1200 billion.

As soon as the market opened on September 9, the Hang Seng Index continued to plummet by 1 points, causing heavy losses to investors and leaving them stunned.

However, in the next few days, the Hong Kong stock market experienced a technical rebound and rose back to 15000 points.

This was naturally within Luo Qihong's expectations. Before the arrival of international speculators, the Hang Seng Index would continue to rise and fall repeatedly.

However, what concerned Luo Qihong more was the kidnapping of Guo Bingxiang. He knew without asking that it was Zhang Ziqiang's doing and that a ransom of 6 million Hong Kong dollars was demanded.

Such an incident did not cause much shock and was overwhelmed by the stock market situation.

HK$6 million in cash is just a drop in the bucket for the Guo family, but it should have a huge impact on Guo Bingxiang personally.

It is rumored that when Zhang Ziqiang kidnapped Li Zeju, he demanded a ransom of 20 billion Hong Kong dollars, but was flatly rejected by Li Jiacheng, who said that there was too much cash and Zhang Ziqiang could not afford it. Finally, he changed his mind and asked for 10 billion Hong Kong dollars.

This time when kidnapping Guo Bingxiang, Zhang Ziqiang was smarter and directly asked for 6 million Hong Kong dollars. Perhaps because of the financial crisis, he asked for 4 million Hong Kong dollars less.

After Guo Bingxiang was released, Luo Qihong was very worried that Zhang Ziqiang would eventually set his sights on his family. There were several wealthy people who had the same idea as him. Who knew whether Zhang Ziqiang's next target would be himself or his family.

Such people are so scary. They completely treat the rich as ATMs. So the rich people united and put pressure on the Hong Kong government, demanding that the kidnappers be caught as soon as possible.

Senior officials of the Hong Kong government once visited Li Jiacheng and asked him to name the kidnappers, but Li Jiacheng refused.

During the kidnapping, Guo Bingxiang wore a blindfold the entire time and never saw the kidnapper, so he could not provide real evidence.

Now that Hong Kong has returned to China, the Hong Kong government has replaced a group of managers and wants to take the opportunity to stabilize Hong Kong and gain more support, so it is very concerned about this incident.

Mid-April.

The financial crisis has caused huge damage in Thailand, Malaysia, Indonesia, Singapore, the Philippines and other places. Most Hong Kong investors have realized the seriousness of the situation and fled with a large amount of funds, causing the Hang Seng Index to fall below 14000 points.

International speculators began to launch a fierce attack, shorting Hong Kong stocks and dumping Hong Kong dollars, making the remaining investors extremely anxious. They were all afraid that Hong Kong would become the next Thailand. The Hang Seng Index also plummeted, falling 660 points on the first day.

Moreover, international speculators also created panic in Hong Kong. American financial banks publicly announced that they would reduce their investment in the Asian market. The economic bubble had already been punctured.
In this era, American finance is the authority in the international circle. They set all the standards, or in other words, they control the world economy.

(End of this chapter)