Hong Kong: Starting with 10 billion

Chapter 344 Prepare for a rainy day
As a time traveler, Fang Hexuan has sufficient experience and understanding of the operating rules of this world.

Why do we want to enter the two major industries of machine tools and displays (panels)? Isn't it to prepare for a rainy day?
Let’s talk about machine tools first. As we all know, the mainland is still under the “Battalion CoCom embargo” and there is absolutely no possibility for it to obtain the most advanced and second-most advanced machine tool technology or even complete machines from the Western bloc.

At most, the major factories and research institutions in the mainland can only purchase machine tool technology that has been obsolete for more than ten years. This has caused the development of the mainland's machine tool industry to lag behind the West by two to three generations.

Fang Hexuan's BYD and BMW introduced a variety of machine tools into the Shenzhen factory. Although they are all very advanced, they cannot be used as he pleases.

In addition to the close monitoring by factory personnel stationed by many machine tool companies, there are also corresponding anti-disassembly detection instruments inside the machine tools.

Originally, Fang Hexuan just wanted to build cars honestly, but the feeling of being guarded against was suppressed in his heart.

Given the current environment, if he wants to expand his business, he must not offend Europe and the United States.

Because what is needed now is development and growth, earning enough original capital and learning advanced technology from the West, and then we can hold our heads high and say "no".

But even if he did not have the intention to actively help the mainland develop machine tools, it could not change the West's suspicion of his own initiative.

Therefore, instead of dealing with it passively, it is better to take the initiative to enter the machine tool industry, so as to avoid being deliberately targeted in the future due to the cooling of relations between the mainland and Europe and the United States.

He has invested too much time, money and effort in the automobile industry, and he cannot let the company fall into despair just because he can't get precision machine tools in the future.

As for displays, based on the analysis report faxed by the consulting company, Fang Hexuan had a preliminary understanding of this industry.

The period from 1883 to 1968 was the stage of basic theory and application research on display materials, which was mainly promoted by West Germany and the United States.

The period from 1973 to 1985 was the initial stage of the industrialization of displays. Japanese manufacturers widely used them in electronic products such as calculators, electronic watches, and handheld game consoles, laying the industrial foundation for the subsequent liquid crystal technology.

1985-1992 was the stage of promotion and application of liquid crystal display technology, and 1992-2003 was the growth period of TFT-LCD liquid crystal display technology. In 3C products such as laptops, desktop computer monitors, and mobile phones, LCD displays gradually replaced traditional CRT display screens and became the mainstream of the market.

In other words, 1982 was not too early but not too late for Fang Hexuan who wanted to enter this industry.

Now is a good time to enter the market. Even Japan, which has been the most active in promoting display technology, has not yet formed a situation where many strong countries are competing for supremacy. As for the related industries in Japan and South Korea, they are far from rising.

Fang Hexuan doesn't want his Maple Leaf Company to be controlled by these two bastards in the future and let them raise prices at will.

After reading the analysis reports of the two industries, he began to think about how to start.

Although he had decided to step in, Fang Hexuan still needed to consider how and when to do it.

On August 8, five days had passed since the Hong Kong government announced the recovery of land in Tin Shui Wai.

The Hong Kong Hang Seng Index fell 7 points on July 29, and has fluctuated since then. As of today, the 101rd, it is still 3 points lower than the day the news was announced.

This drop may not seem like much, but when it comes to the dozen or so stocks that Fang Hexuan shorted, there was actually a considerable gain.

Anyway, Luo Haorong told him that it took only ten days from the completion of the short position of 50 billion Hong Kong dollars to now, and this impromptu transaction brought Fang Hexuan a revenue of 4.78 million Hong Kong dollars.

Mr. Fang was very satisfied with the result. It might not seem like much, but he did not use any leverage nor any off-market means. He just went with the flow with the mentality of making some pocket money.

As for how much Chen Songqing earned, he was too lazy to ask, after all, it was his privacy. However, he didn't ask how much money he earned, but he definitely asked for benefits.

I didn't say anything on the phone that could leave any evidence. I just gave a few simple hints and I believed that the other party would understand what I meant.

This is indeed the case. Chen Songqing is such a smart person that he can even guess that Fang Hexuan's funds must have left the market.

Sure enough, three days later, the other party took the initiative to invite him to dinner in Lan Kwai Fong, and finally confirmed that the Golden Gate Building transfer agreement would be officially signed in five days.

In fact, on January 1980, 1, when Jianing purchased the Golden Gate Building from Wanda for HK$10 million, Fang Hexuan had made concessions.

That means a down payment of 20%, and the remaining balance can be paid off gradually within two years.

But Fang Hexuan requested to add a special clause to the contract:

If Carrian fails to pay the amount within the deadline,

Then, Wanda has the right to buy back the Golden Gate Tower at 70% of the contract price.

At that time, the reason why he went to such lengths was that he wanted to take action against Chen Songqing's Jianing Group in advance, and then take advantage of this.

But later, as he came into contact with Chen Songqing and got to know him better, he began to admire him a little and no longer wanted to push him into a desperate situation.

This is also the reason why Fang Hexuan decided to confront Chen Songqing, hoping that he would stop while he was ahead and force him to cooperate with him actively.

Now it seems that the original decision was correct. Chen Songqing is not a stubborn person after all. He knows how to adapt and is also very capable.

Therefore, Wanda certainly took advantage of the agreement between the two regarding the "Golden Gate Building" at the Lan Kwai Fong Western Restaurant.

Two years ago, Jianing acquired the building for 9.8 million yuan, and Chen Songqing agreed that Wanda would buy it back at the same price two years later.

Although it was not 9.8% of the 70 million, Fang Hexuan did benefit from the assets he had previously purchased from Jianing.

Not to mention, there are some PY transactions between the two behind.

At the price of 9.8 million, the shareholders of Jianing Investment can be said to have suffered a loss, or they can be said to have not suffered a loss. In any case, the right of interpretation lies in Chen Songqing's hands.

This is also the reason why Fang Hexuan agreed to this price. Helping the other party stabilize the situation will also be beneficial to himself.

And the day before the two had dinner, on the afternoon of August 8, the Chinese General Chamber of Commerce in Hong Kong invited many leading figures in Hong Kong's business community to hold a symposium.

The theme of this conference is to target the issue of the Japanese Ministry of Education's distortion of its history of aggression against China. The Hong Kong business community must reach a unity in thought and tone, and unanimously condemn the shameful act of the Japanese primary and secondary school textbooks changing the aggression against China to "entering" China.

As the richest man in Hong Kong, Fang Hexuan gladly attended the invitation and actively expressed his position at the meeting, criticizing Japan for not only failing to reflect on itself, but also whitewashing militarism and covering up the fact of its aggression.

His passionate speech not only won approval from other business leaders at the scene, but also made headlines in many Hong Kong newspapers.

(End of this chapter)