Return to 1958 and build a century-old giant

Chapter 849 An Invitation from the Mainland to the North

The next day, the Yang family, along with Finn and the others, toured the farm extensively. The farm was truly vast; in many areas, the woods were so dense that cars couldn't even enter, indicating it was an undeveloped area.

If you want to fully develop such a large farm, the cost will be much higher than buying the farm itself. In addition, some areas are not suitable for the environment, so there are some wild environments. This is a common problem for most farms, unless it is a state-owned farm that can arrange enough people to clear everything.

Along the way, Yang Wendong also followed Finn, using a sniper rifle to hunt coyotes, which are small canids that weigh about ten kilograms on average, even smaller than large dogs. They pose little threat to humans, mainly attacking sheep and cow calves. Of course, human children might also be targeted, but this is generally unlikely.

At first, Yang Wendong couldn't hit his target, but with Finn's guidance, he occasionally managed to kill a few coyotes that were relatively close, which excited him. Later, he tried using a compound bow, which was just as powerful as a gun. It could basically pierce through a coyote's body with a single arrow, which was terrifying.

And so, the Yang family spent the next few days like this, grilling some of the food from the hunt and having a great time.

By the end of May, we had explored most of the farm and gained a general understanding of its situation, so it was time to talk.

Both sides prepared their own legal teams and business negotiation teams. The person in charge of the negotiations on Yang Wendong's side was an American, a top talent recruited by Changxing Group in the United States, named Daniel.
Daniel said, "Mr. Yang, the other party's offer is $2.4 million, while we internally believe the price is around $1.8 million."

"That's quite a big price difference!" Yang Wendong retorted.
Daniel said, "Yes, mainly because this is a large farm. If it's a small farm, the land price in a place is basically the same, assuming the water source is similar."

Large farms involve many more issues, such as terrain, water resources, mineral veins, ecology, infrastructure, internal transportation, and other factors.
Furthermore, such transactions might only occur once every few years in the United States, so there's nothing to refer to; the price depends on which party needs it more.

“Although I’d ​​like to buy a farm, there’s no rush. There are plenty of large farms in the US, and there are also some in South America,” Yang Wendong said nonchalantly. “As for the price, I need to negotiate it down. If I were to actually invest in such a farm, it would cost me a lot of extra money.”

After buying it, he naturally wouldn't just treat it as a place to visit. So, except for a few places, he would expand his business to ensure that this land could continuously produce food and meat, which is wealth.
This investment is also very high. Many places in Southeast Asia, Australia, Canada, and South America are not short of land, but they lack funds to develop it. Some countries have even proposed laws that would allow anyone or any company to reclaim land after a few years. Even so, many people and capital are too lazy to participate, and even Yang Wendong is not interested.

This is because the cost of clearing land is higher than the cost of acquiring land, unless the land itself is very valuable.

Unless you have a lot of money in the future and can carry out large-scale land reclamation and transportation, it will be worthwhile, but that's a matter for the future.

Of course, these funds will not be their own; instead, they will be borrowed from banks using the farm's future profits as collateral. This aligns with the capitalist's practice of minimizing the use of their own money.

Daniel agreed, "Okay, I'll also visit other farms, but none of them are as big as this one."

“It’s fine, as long as it’s over 1 acres, it’s fine.” Yang Wendong thought for a moment and said, “I won’t go to these farms, but once you find a suitable one, contact my assistant and he will send someone over.”

Just like with some smaller businesses, Yang Wendong couldn't be involved in everything personally. Small projects were basically handled by the branch offices themselves, while medium-sized projects were reviewed by the headquarters or a third party. As long as a balance was achieved and there was supervision, that was sufficient.

“Okay, Mr. Yang,” Daniel replied.

Yang Wendong said, "Okay, let me know if there's any progress here. I won't be staying in the US forever. I'll have to trouble you with things at the farm from now on."

Daniel quickly replied, "It is my honor to serve Mr. Yang."

Although the farm project involved an investment of over $100 million, most of it was financed through loans. This had already been agreed upon with Citibank, which was happy to cooperate with Yang Wendong. After all, many of Yang Wendong's assets in the United States were debt-free, making him a very high-quality client.

On May 31, Yang Wendong returned to Hong Kong.

When the Boeing 747 landed at Kai Tak Airport, the Hong Kong media learned that Yang Wendong had purchased a Boeing 747 as a private jet, which immediately caused a stir. Newspapers showed off Yang Wendong's luxurious lifestyle.

In addition to Apple's previous investment, many reporters wanted to interview Yang Wendong, but he was naturally turned down.

Xinhua News Agency, Hong Kong:
“A Boeing 747, wow, Yang Wendong is truly richer than a country,” Zhang Guangdou exclaimed. “Many top leaders of various countries don’t have a Boeing 747 as their private jet.”

The same is true in mainland China. This year, there are only four Boeing 747 aircraft in China, mainly for international trade needs, flying to several major cities in Europe and the United States.
Zeng Jianhua, the person in charge of China Resources Group in Hong Kong, said: "Yes, a Boeing 737 was already very luxurious, but I didn't expect Yang Wendong to actually buy a 747. That's really amazing."

“That’s nothing compared to what we found. Because of Yang Wendong’s high profile recently, our people in the United States investigated his business and discovered something even more alarming,” Zhang Guangdou sighed. “Yang Wendong’s assets in the United States far exceed our imagination.”

"Really?" Zeng Jianhua took the documents, looked at them for a while, and said, "This is too outrageous! Yang Wendong has so many industries and so many high-quality investments in the United States."

“Yes, it seems that his investment in universities in China is just a drop in the ocean,” Zhang Guangdou said with a smile. “I’m planning to visit Yang Wendong in a few days. Would you like to come along?”

Zeng Jianhua said, "Okay, recently China Resources has also been preparing to enter the Hong Kong real estate market. I would like to meet with Mr. Yang and hear his opinion."

“Alright, then I’ll send the visiting card right away,” Zhang Guangdou nodded.
Back in Hong Kong, Yang Wendong's life was normal. He refused all interview requests from reporters, including those from his own newspaper and TVB.
Let the rumors spread on their own. If he doesn't show up, the hype will naturally die down. Recently, due to the Vietnamese refugee crisis, which has caused social chaos, he doesn't want to show his face.
The Li Ka-shing of the future was the type he aspired to be: famous but largely unknown; unlike Li Ka-shing, who became a household name, resulting in accusations of high Hong Kong property prices and the invention of shared area, even though he was also part of that.

On June 2, Yang Wendong had just arrived at his office when his assistant informed him: "Mr. Yang, Director Zhang from Xinhua News Agency and Mr. Zeng from China Resources would like to visit you."

"Xinhua News Agency and China Resources? Okay, let me check my schedule and have them come over when I'm free," Yang Wendong nodded.

The assistant said, "Okay, you're free at 2 PM the day after tomorrow, so I'll schedule that time."

"Hmm." Two days later, Zhang Guangdou and Zeng Jianhua arrived at Yang Wendong's office in the Kang Le Building;
"President Zhang, Mr. Zeng," Yang Wendong said with a smile, shaking hands. "Please have a seat."

Zhang Guangdou said with a smile, "Thank you, Mr. Yang."

"Don't mention it," Yang Wendong smiled, and his assistant quickly served tea.

After exchanging pleasantries for a while, Zhang Guangdou said, "Mr. Yang, you've become quite famous in America these past few days. I congratulate you on your career reaching new heights."

"Haha, I also hope that after China's reform and opening up, the economy will get better and better in the future," Yang Wendong said with a smile.

These were all just polite words. After chatting casually for a while, Zeng Jianhua said, "Mr. Yang, China Resources is planning to enter the Hong Kong real estate market. What do you think?"

"Has the central government allowed you to enter the real estate business?" Yang Wendong asked in surprise.

China Resources has been doing business in Hong Kong for a long time, but it has always been a trading and supply business. It is said that in the early years, a senior executive of China Resources speculated in real estate and stocks, resulting in heavy losses, and then it was banned in mainland China.

Zeng Jianhua nodded and said, "Yes, the mainland has allowed us to do some business. After all, the mainland has started to accept foreign investment, so China Resources can naturally invest in real estate in Hong Kong. However, I have to be careful."

Yang Wendong suddenly asked, "Would China Resources be willing to accept my investment?"

"Invest in China Resources?" Zeng Jianhua was startled and quickly said, "Mr. Yang, investing in the entire China Resources is definitely not an option, but if we jointly establish a real estate company, that should be fine."

With Yang Wendong as a shareholder, China Resources' foray into the real estate market will actually be smoother.

Although he saw many Hong Kong tycoons making a fortune from real estate, he also understood that this was due to the survivor effect. Those who didn't make money or even lost money simply went unnoticed; people only saw the few who succeeded.

Yang Wendong thought for a moment and said, "That's fine too. I can invest in your real estate company. I think it's feasible for China Resources to enter the real estate market, but now is not a good time."

Historically, the first major project that China Resources undertook in the real estate industry was the Tin Shui Wai project, but it suffered significant losses due to the 83 real estate crisis.

Eighty-five years later, the project was acquired by Li Ka-shing, who then developed it into the fourth largest walled village in Hong Kong, making a fortune. Of course, China Resources also benefited; Li Ka-shing's management not only made up for its previous losses but also generated a small profit later on.
This is also a testament to Li Ka-shing's abilities. Even today, Yang Wendong still has some respect for him. The four major families in Hong Kong all have their own strengths, at least the first generation was very capable.

Under normal circumstances, Yang Wendong wouldn't want to get involved in this kind of thing. But if he could form a joint venture with China Resources to develop real estate, he would have to inform them. China Resources is a top state-owned enterprise in China. If he could help them make money in Hong Kong, then there would be more cooperation in the mainland in the future, which would be much more convenient.

"Does Mr. Yang mean that Hong Kong's real estate market is nearing its peak?" Zeng Jianhua asked cautiously.
Having lived in Hong Kong for so many years, he understands the patterns of the Hong Kong property market, which fluctuates every few years. This time, it started in 1975 and has been almost six years now, with average property prices increasing several times over. This is why he is being cautious.

Yang Wendong nodded and said, "That's a possibility, but I can't guarantee it. I can only say that my real estate companies will make appropriate preparations to cash out."

He would arrange this very quickly; it was impossible to hide it, as Changxing Real Estate Group held too many properties.

Of course, prime properties will absolutely not be sold.

Zeng Jianhua nodded and said, "I understand. Thank you for informing me, Mr. Yang. As for the real estate company, it still needs to be established. I will send over the documents in a few days, and then we can discuss how to cooperate."

He also understood that people like Yang Wendong wouldn't clearly articulate their judgments on market changes; if that got out, it would have a huge impact. Being able to subtly inform them was already quite good.

"Okay," Yang Wendong agreed.

First, negotiate the shareholding, raise some funds, and wait for the bottom in 83 and 84 to buy in. After that, we can take China Resources to take off. Of course, we will still get the lion's share.
Once China Resources makes a profit in its Hong Kong real estate business, it will be easier for me to invest in the mainland together with them, and I can even participate in the investment of other branches of China Resources in the future.

The future China Resources will have a strong background, no less than that of PetroChina and Sinopec, and will be able to participate in too many large industries. By cooperating with them, it will be easy to circumvent many domestic restrictions.

"Haha, congratulations on the cooperation between the two of you." Zhang Guangdou was also very pleased to see the cooperation between China Resources and Changxing, as it would be very beneficial to his work.

Yang Wendong smiled and said, "I am also very willing to cooperate with domestic partners, whether in China, Hong Kong, or even overseas in the future."

“Thank you very much, Mr. Yang, for your trust in the mainland.” Zhang Guangdou smiled and said, “Mr. Yang, I have another purpose for coming here this time, which is to invite you to visit Yanjing.”

"Going to Yenching? Because of university?" Yang Wendong asked calmly.

Zhang Guangdou nodded and said, "That's one factor. The Ministry of Education also wants to meet with you, and many departments in Beijing also want to meet with you to discuss cooperation."

"Okay, sure." Yang Wendong nodded.

This was within his expectations. The domestic reform and opening-up policy had been in place for a year, but had not yielded any results. He was certainly hoping to achieve something, so seeking Hong Kong capital was the most suitable option.

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(End of this chapter)