Hong Kong 1980: The Savage Era

Chapter 485 487 [Don’t dare to offend the bank]

However, Luo Qihong still feels that the real estate developers cannot defeat the Financial Secretary, and McLaughlin must be hiding some cards. Even if they defeat McLaughlin, there will be another "McLaughlin". The Hong Kong government is unlikely to allow real estate developers to dominate Hong Kong openly.

But being unable to win does not mean not fighting. Not fighting means being at the mercy of others, so the real estate developers have united together and are ready to make the Financial Secretary suffer a great loss.

In fact, Luo Qihong wants the real estate developers and the Financial Secretary to fight for a while longer so that the real estate market will fall further.

He has already sold all the newly built residential units and more than half of the scattered properties. If he can buy at the bottom, the profit difference will be a huge amount.

Time passed quietly, and in the blink of an eye it was Friday.

InterContinental Hotel Tsim Sha Tsui.

As soon as Luo Qihong got out of the car, many reporters surrounded him. Fortunately, the bodyguards stopped him and the reporters did not get close to him.

He also didn't want to lose the good image he had maintained for a long time, so he greeted the reporters with a smile.

This is definitely a trick of Li Jiacheng. He wants to use the power of the media to force the Financial Secretary of the Hong Kong government. It will be more or less effective.

Although McLeod is an old-school official in Hong Kong, he dare not ignore the alliance of real estate developers. As for how to break the deadlock, there are still some considerations.

"Luo Sheng, you are finally here."

"Mr. Guo, am I late?"

Everyone greeted each other in their own way, and even though they were all in the same industry, they still paid attention to the closeness of their relationship.

Those present today are all big names, such as Law Xurui of Century City, Liu Luanxiong of Chinese Estates Holdings, Lo Ka Shui of Eagle Properties, and Ronnie Chan of Hang Lung Group.

These real estate developers together almost monopolize 7% to 8% of Hong Kong's real estate industry and control 5% of Hong Kong's economy. It can be said that if they fight to the death with the Hong Kong government, it will be difficult for the Hong Kong government to end the fight.

Unfortunately, these people are only harmonious on the surface, but in fact they all have their own ulterior motives. The alliance is only forced to do so. If their interests are truly harmed, they will probably withdraw immediately.

When everyone was chatting, they couldn't help but talk about McLeod's intention to strike Hong Kong real estate.

"Hong Kong is a trading port that values ​​a free economy. The Hong Kong government's brutal intervention in the market will only hurt homebuyers and us, and will cause social unrest," said Li Jiacheng. "We must unite and use our actions to warn the Hong Kong government not to go further down the wrong path."

What Li Jiacheng said makes some sense. Many Hong Kong citizens are home buyers. If the property they bought with their hard-earned money shrinks in value, who will be responsible for the loss?

Will the angry citizens sit still? I'm afraid they will try to get their money back in their own way.

If a few paranoid people do something harmful to society, neither the Financial Secretary nor the Hong Kong government will be able to bear the consequences.

"Mr. Li is right. The Hong Kong government sold the land at a high price at the auction and now has received a large amount of financial support. But now they want to get rid of us real estate developers. How can they behave like this?"

"We have finance companies under our umbrella. Although the bank sent us a letter saying that the maximum mortgage loan is 7%, we can mortgage 8% or 9% ourselves, and we can even earn a little more. Isn't Chinachem Real Estate Company our role model?"

Doing so will reduce the bank's income, and the bank will most likely turn around and target the real estate developers, such as urging them to repay debts or reducing loan amounts. If the cycle continues, no one will benefit.

But banks will be the first to fall into the quagmire, because deposit interest is a big problem. Banks make profits by lending. Without profits, only expenses, sooner or later something will go wrong.

Real estate developers are all shrewd. Banks and the Hong Kong government can only win over them on the surface, but in fact they still get more.

As they were talking, their colleagues turned their attention to Luo Qihong. They all knew that Luo Qihong was investing heavily overseas and had reached other cooperation agreements with the Hong Kong government. They were worried that he would fall into the arms of the Hong Kong government.

Luo Qihong smiled and said, "Don't worry, I have a lot of real estate assets in Hong Kong. I will definitely follow my predecessors to fight against the Financial Secretary so that Hong Kong's economy can resume its upward trend."

In fact, he knew that the Financial Secretary's approach clearly violated the principles of a free economy and would definitely fail. No matter who wanted to go against the market, it would not be possible to really succeed, because it would harm the interests of many people, including the citizens of Hong Kong.

Of course, this does not prove that those who want to suppress local cities are wrong, it’s just too simplistic and crude.

Hong Kong's deformed economy is not unique, nor did it form in a short period of time, so it needs to be resolved slowly.

Several important real estate leaders have voiced their support, so other smaller figures will naturally not object.

the next morning.

The front-page headlines of Hong Kong's morning newspapers are all about news about the gathering of real estate developers. The content clearly states some details of the real estate developers' discussions, and even reveals the content of the agreement reached with Canadian officials. It also stated that they will focus on investing in Canada in the future.

After seeing the news, Financial Secretary John McGrath was furious and said he would teach those real estate developers a lesson.

McLeod has served as Assistant Chief Secretary, Assistant Financial Secretary, Director-General of Trade, Secretary for Commerce and Industry, and Deputy Financial Secretary in the Hong Kong Government. He is well aware of the strength of the real estate developers. If public opinion was not so high and he needed political achievements to secure his position, he would not have treated the real estate developers so harshly.

His current situation has put him in a difficult position. Deep down, he still hopes that the real estate developers will know the situation and not confront the Financial Secretary.

So he immediately summoned HSBC CEO Pavlyuchenko and Hang Seng Bank Chairman Lee Quo-wei, asking them to take action against the real estate developers, put pressure on them in terms of loans, and force them to comply.

The Financial Secretary is the immediate superior of HSBC. Even though HSBC has achieved semi-internationalization, it has to abide by the rules because HSBC's roots are still in Hong Kong.

As for Hang Seng Bank, it has no choice. As a subsidiary of HSBC, its status can be imagined.

Today, most of the veterans of Hang Seng Bank have retired. When Lee Quo-wai committed the "betrayal" incident, he was just following the footsteps of HSBC, otherwise he would be in trouble both inside and outside.

Which real estate company does not borrow from banks? Faced with HSBC's debt collection, interest rate hikes and loan difficulties, other banks followed suit, making the real estate developers a bit overwhelmed.

Soon, Luo Qihong received a call. The real estate developers all expressed that they were unwilling to have a bad relationship with the banks, which would affect the company's stock price and development.

Therefore, they plan to hold a joint press conference to announce the real estate developers' decision and express their acceptance of the 7% bank mortgage resolution issued by the Financial Secretary.

He who knows the current affairs is a hero!

Real estate developers must give face to banks, otherwise how can the real estate companies operate normally? However, the open fight is over, and the secret fight has just begun. The real estate developers will not give up easily.

As the saying goes, every policy has a countermeasure.

The bank mortgage can be 7%, but there can also be other discounts. The 1% or 2% mortgage can be made up through other means. The Hong Kong government and the Financial Secretary, who have won a good reputation, should have no objection.

In a villa in the Mid-Levels.

Luo Qihong was lying on a rattan chair, basking in the sun with sunglasses on. Next to him, Luo Zhichong was playing with toys, and there were also servants watching over them.

Boys are all a little naughty. Although Guan Jiahui is very strict in educating her children, Luo Zhichong is not too afraid of Guan Jiahui when Luo Qihong is present. Maybe he knows Luo Qihong's status in the family.

"It's really a fight between gods, and the mortals suffer. You guys are fighting with the Hong Kong government, and the local market has become so bad." Guan Jiahui muttered.

Luo Qihong smiled and said, "Aren't you also a real estate developer? What are you talking about?"

"In fact, the Hong Kong government does not want the real estate market to be bad. The fiscal revenue still depends on real estate. If the real estate developers are put down, they will not get any benefits, and may even cause a huge fiscal deficit. The real estate market is not good now, but it will recover in a few months, and the growth will intensify."

"Really? Many people say it takes a year to recover." Guan Jiahui said happily.

(End of this chapter)