Rebirth in Hong Kong: From Dessert Shop to Industrial Empire

Chapter 187 War Rages Across the Land (Seeking monthly votes, recommendations, and subscriptions!)
He paused for a moment, then decided to point out a few things: "The real estate market has cycles; it goes up and it goes down."

High prices now don't mean they'll always be high.

When undertaking such large-scale projects, the worst-case scenario must be considered.

Zhang Jianhua nodded thoughtfully.

These words touched a nerve.

There are concerns within the group about the current overheated real estate market, but Chen Bingwen is the first to express such directness.

"The third step is to make up for the lack of development experience and leverage existing resources."

In real estate development, especially in large new towns, China Resources may not have as much experience as some established local British or Chinese real estate companies.

Could we consider bringing in a capable and experienced partner?
For example, we can cooperate deeply with companies like Wheelock and Company, which have a good track record and relationship with the Hong Kong Public Works Department. China Resources Holdings provides technology and management teams to quickly fill the gaps in our capabilities.

At the same time, we immediately negotiated with the Hong Kong government's Public Works Department to try and secure a general contracting agreement for the planned municipal works. It's said the Hong Kong government guarantees a 15% profit margin for such projects, which would both ensure revenue and provide valuable experience for our team.

Fourth, accelerate sales revenue collection to form a closed-loop funding system.

In the demonstration area, whether it is a housing estate or a small commercial housing unit, pre-sales will begin immediately once the conditions are met.

The advance payments from citizens will be used to support subsequent development, alleviating the pressure on the company's own funds.

Chen Bingwen finished speaking in one breath, picked up his teacup, took a sip, and observed everyone's reactions.

The meeting room was quiet for a moment, then a low murmur of discussion arose.

Chen Bingwen's four suggestions, especially "leveraging external forces" and "accelerating the collection of payments," resonated with many people.

China Resources does indeed lack experience in large-scale real estate development. Partnering with experienced local companies and using Hong Kong government projects to train its team is a very pragmatic choice.

Zhang Jianhua looked at his deputies, exchanged glances, and then turned to Chen Bingwen, saying solemnly, "Mr. Chen, I think your strategy is very much in line with our current difficulties."

However, I have another question I'd like to ask.

"Please go ahead, Mr. Zhang."

"You just mentioned that we need to start as soon as possible, even race against time."

Besides concerns about funding and experience, are there any other worries?

After speaking, Zhang Jianhua looked directly at Chen Bingwen, trying to find the answer in Chen Bingwen's expression.

Chen Bingwen silently praised him in his heart without showing any emotion.

Zhang Jianhua is indeed no ordinary person to have become the general manager of China Resources.

After a moment's thought, he decided to elaborate further.

Chen Bingwen lowered his voice, forcing everyone present to concentrate, "I do have some concerns."

The concern lies not in China Resources' strength, but in the timing and the overall situation.

He looked around and slowly said, "The Hong Kong government has approved such a large area of ​​land in the hope that the new town will take shape as soon as possible and solve the housing problem for the citizens."

If the developers appear to be struggling and the progress is severely behind schedule, what measures will the Hong Kong government take to prevent the overall plan from being delayed indefinitely?
Is it about bringing in a more capable partner, or are there other considerations?

Chen Bingwen spoke tactfully, but his meaning was clear.

If China Resources doesn't take action soon, the land may no longer be under China Resources' control, and the Hong Kong government could intervene at any time.

This is more intimidating than directly naming a business rival, and it is also more in line with China Resources' sensitive status as a Chinese-funded enterprise.

Zhang Jianhua's expression grew even more serious.

Clearly, Chen Bingwen pointed out one of his biggest concerns.

However, now that the matter has been discussed, Chen Bingwen has no intention of stopping, but rather continues to increase investment. "Now, all Chinese and British capital in Hong Kong are looking for new growth points."

New town development, especially projects of this scale, will be a key battleground for the next decade.

If China Resources lags behind, other powerful conglomerates will seize the initiative and occupy advantageous positions.

At that point, not only could complications arise in Tin Shui Wai itself, but China Resources' reputation and influence in the entire Hong Kong Island real estate industry would also be affected.

After saying that, he sat back down and said no more.

Everything that needed to be said has already been said; saying anything more would be going too far.

The rest needs to be digested and decided internally by China Resources.

A long silence fell over the meeting room.

Zhang Jianhua frowned slightly, clearly weighing his options quickly.

Finally, he raised his head, looked around at the China Resources management team present, and then looked at Chen Bingwen with a more decisive look in his eyes: "Mr. Chen, your analysis makes a lot of sense, especially your judgment on the Hong Kong government's attitude and the time window."

We can't wait any longer.

He said to one of the vice presidents, "Old Wang, after the meeting, immediately organize a special task force. Following the ideas Chen Sheng just mentioned, and taking into account our own actual situation, come up with a detailed and executable plan for Tin Shui Wai within a week!"

"Yes, Mr. Zhang!" the Vice President surnamed Wang replied immediately.

Zhang Jianhua then looked at Chen Bingwen and sincerely thanked him, saying, "Mr. Chen, thank you for your insightful advice."

"I hope that in the future, we can work together to make this Tin Shui Wai project a success and a benchmark."

"must."

Chen Bingwen knew that the initial goal had been achieved.

The massive machine that is China Resources is finally about to be propelled to accelerate in the direction it desires.

Once the Tin Shui Wai "mega project" starts at full speed, Cheung Kong, as one of the major shareholders, will inevitably be drawn into it, consuming a lot of funds, connections and management energy.

After the meeting, Zhang Jianhua shook hands firmly with Chen Bingwen again and personally saw him off.

“Mr. Chen, today’s conversation with you is truly invaluable, more so than ten years of study.” Zhang Jianhua shook Chen Bingwen’s hand vigorously. “I will need to learn from you more in the future.”

"Mr. Zhang, you flatter me. We can learn from each other," Chen Bingwen replied humbly.

Li Guowei accompanied Chen Bingwen downstairs.

Upon reaching the lobby on the first floor, Li Guowei looked around to make sure no one was watching, then lowered his voice and said to Chen Bingwen, "Mr. Chen, President Zhang has made up his mind this time."

To be honest, there are significant disagreements within the group regarding the Tin Shui Wai project, with considerable opposition, mainly due to concerns about the long investment return cycle and uncontrollable risks.

Your analysis today, especially your explanation from a strategic and political perspective, has provided Mr. Zhang with the strongest support.

Chen Bingwen nodded; he had guessed that was the case.

Li Guowei hesitated for a moment, then continued, "Mr. Chen, there's something else I'm wondering if it's convenient to ask?"

"Please go ahead, Manager Li."

"You just mentioned that you're worried other powerful conglomerates might get there first. I wonder if you have a specific company in mind?"

Li Guowei asked the question rather subtly.

Chen Bingwen knew perfectly well that Li Guowei was probing him, trying to find out if he was targeting a specific competitor, such as Cheung Kong Holdings.

He smiled and answered flawlessly: "Manager Li, Hong Kong Island is only so big. The only companies with the strength to take on such large projects are a few British trading companies and local Chinese giants."

It doesn't matter which company it is; what matters is that China Resources must seize the initiative before they reach a consensus and take action.

As long as China Resources acts quickly and decisively, others will have to think twice before interfering.

Li Guowei nodded thoughtfully: "I understand. Thank you for your guidance, Mr. Chen."

After seeing Chen Bingwen off, Li Guowei immediately returned to the conference room.

Zhang Jianhua is still there; he hasn't left.

"Has he been sent away?" Zhang Jianhua asked. "Yes, he has. Mr. Zhang, Chen Bingwen is indeed a remarkable person; he sees things very clearly."

Li Guowei remarked with emotion.

Zhang Jianhua hummed in agreement, tapping his fingers lightly on the table: "His last few words just now woke me up."

We cannot just focus on solving internal problems; we must also look ahead and pay attention to external trends.

Guowei, go and do two things immediately.

"Please give your instructions, Mr. Zhang."

"First, use all available connections to find out the latest attitude of the Hong Kong government's Public Works Bureau and Planning Department toward the progress of the Tin Shui Wai project, especially whether any other real estate developers have privately contacted the Hong Kong government to express their 'interest' in the project."

"Secondly, pay close attention to the movements of Li Ka-shing of Cheung Kong Holdings."

I heard that he has been getting very close to HSBC's Sir Michael Sandberg recently, and it seems they are planning something big.

Let's see if he has any potential connection to the Tin Shui Wai project.

Zhang Jianhua's intuition told him that the "powerful conglomerate" Chen Bingwen was implying was likely referring to Li Jiacheng, who was currently enjoying great success and had close ties with HSBC.

"Understood! I'll take care of it right away!" Li Guowei's expression hardened, and he immediately agreed.

On Monday morning, just after eight o'clock, Chen Bingwen arrived at his office on the top floor of the Weiye Building.

He sat behind his desk with several reports spread out in front of him, but his mind wasn't entirely on them.

He was waiting for two phone calls.

One was a confirmation call from Li De of Citibank, concerning whether the crucial HK$600 million in funding would be available.

The other factor is the stock price trend of Qingzhou Yingni after the market opens, which will directly determine his next tactical choice.

The phone on the table rang first.

He's an inside player.

"Mr. Chen, it's a call from Li De, the president of Citibank, on the front line," came the voice of his secretary, Ali.

"Put it in." Chen Bingwen picked up the receiver.

"Good morning, Mr. Chen!" Li De's voice sounded energetic. "The Wall Street trading team of six people arrived in Hong Kong Island last night and checked into the Mandarin Oriental Hotel."

The person in charge is John Christensen, who has fifteen years of experience in large-scale transactions at Morgan Stanley and is absolutely reliable.

"Thank you, President Li De," Chen Bingwen said with a smile.

“More importantly,” Li De continued, “the HK$2 million loan you obtained by pledging the patent licensing agreement has been fully transferred to your designated margin account at Citibank.”

According to the agreement, the triple leverage limit has taken effect simultaneously.

In other words, you now have HK$6 million in purchasing power, which you can access at any time.

Chen Bingwen was certain that the most crucial step had been taken care of.

This money came at just the right time.

"Will the trading team start working today?" he asked.

"Yes, Mr. Christensen will be at the Citibank trading room in Central at nine o'clock sharp."

He will be there awaiting your instructions.

Li De replied.

"Please ask him to call me at nine o'clock." After saying that, Chen Bingwen paused and added, "President Li De, thank you very much this time."

"Mr. Chen, you're too kind. It's what we should do. We wish you every success." Li De smiled and hung up the phone.

After hanging up the phone, Chen Bingwen pressed the internal call button: "Director Fang, come here for a moment."

Soon, Vincent Fang knocked on the door and came in.

"Chen Sheng."

"Citibank's money and personnel are in place, with a quota of 600 million."

Chen Bingwen briefly explained the situation.

Fang Wenshan's eyes lit up immediately: "Great! The timing is perfect."

Chen Bingwen walked to the large whiteboard on the wall, picked up a pen, and drew two large circles on it.

One is labeled "Qingzhou Yingni", and the other is labeled "Hutchison Whampoa".

He wrote "25.01%" in the circle for "Qingzhou Yingni" and "2.7%" in the circle for "Hutchison Whampoa".

"Li Jiacheng wants to stall, using time to buy space, and deal with Hutchison Whampoa before dealing with the situation in Yingni, Qingzhou."

Chen Bingwen pointed at the whiteboard with his pen, "We can't let him be so comfortable."

He turned to Vincent Fang: "Previously, we lacked funds, so our acquisition of Qingzhou Yingni was somewhat conservative."

Now that we have sufficient funds, our strategy needs to be adjusted.

"Chen Sheng, what do you mean?"

Fang Wenshan asked thoughtfully.

"Openly repair the plank road, but in doing so, you'll create endless war."

"To cross the Chencang pass secretly, one must do so without making a sound."

Chen Bingwen's eyes were sharp. "Take out a quota of 4 million and give it to the Citibank team and our investment department to cooperate in a full-scale attack on Qingzhou Yingni."

Buy as much as you can in the secondary market, don't worry too much about price differences of a few cents. The key is to create momentum, quickly push the stock price up, and create signs of panic buying.

Fang Wenshan quickly did some mental calculations: "4 million Hong Kong dollars plus our own funds, based on the current market price of Qingzhou Yingni, is enough to acquire another 15% to 20% of the shares."

Adding our existing 25%, our shareholding will exceed 40%. If that happens, we could very well gain controlling interest in Qingzhou Yingni, which would greatly threaten Cheung Kong Holdings' controlling stake!

“Yes.” Chen Bingwen nodded. “We need to force Li Jiacheng.”

This would allow him to focus more of his funds and attention on Qingzhou Yingni's defense.

He either follows suit, paying a higher cost to retain control;
They either back down and watch us become the largest shareholder, or they simply retreat and watch us become the largest shareholder.

Either option would disrupt his rhythm and deplete his cash reserves.

"And what about Huang's side?" Fang Wenshan looked at the other circle.

"Another 2 million will be used to continue the secret acquisition of Hutchison Whampoa."

Chen Bingwen emphasized, "This part is even more crucial. It was handed over to Citibank's Christensen team to operate independently, and the requirement was absolute secrecy."

Prices can be slightly more flexible, but absolutely must not raise any market alarm.

I need to acquire as many bargaining chips as possible before Li Ka-shing and HSBC reach an agreement.

"Understood!" Fang Wenshan felt a surge of excitement. "I'll make the arrangements immediately. I will clearly convey your instructions."

"Go. Be quick," Chen Bingwen instructed.

At exactly nine o'clock, John Christensen from Citibank called right on time.

Chen Bingwen communicated with him in English in detail about strategic priorities and risk control principles. Subsequently, Fang Wenshan had a detailed technical meeting with Christensen and his team.

The Hong Kong stock market opened at 9:30 a.m.

(End of this chapter)