Hong Kong 1980: The Savage Era

Chapter 501 503 [25% Profit]

In fact, Luo Qihong had to concentrate on dealing with the 10 billion pounds investment from the loan, and the impact of the continuous acquisitions was secondary, but he would not tell Zhang Wenhe directly.

Zhang Wenhe is only the head of Singapore Hengan Investment Company and is not qualified to know everything.

After Zhang Wenhe left, Luo Qihong took out a stack of documents from the drawer. The word "Britain" appeared frequently in the content, which described the analysis of Britain's economic situation.

Today, the UK's GDP has already begun to decline. In the first two quarters of this year, GDP fell by 1%, and the unemployment rate exceeded 4%. However, in order to maintain the exchange rate, it is forced to maintain high interest rates, which has a tendency to aggravate economic contraction.

Under such circumstances, the pound could easily depreciate, which is why Luo Qihong pledged 10 billion pounds in loans from various banks. Now, this 10 billion pounds has been converted into US dollars, totaling 20 billion US dollars.

Zhaoan Group's investments in the UK have begun to be quietly sold off and quickly converted into US dollars, but of course it does not dare to do it in a high-profile manner.

Since September, Finland, Germany and Italy have successively decoupled from the ERM (European Exchange Rate Mechanism), exposing the loopholes in the mechanism. A crisis has been brewing for the most part.

Prior to this, the Quantum Fund controlled by Soros borrowed 150 billion pounds from British banks, sold them in the foreign exchange market in exchange for marks and dollars, and at the same time bought pound put options in an effort to magnify profits.

Soros's allies have piled into UK stock and bond markets in an attempt to short sell, echoing the £150 billion sell-off.

Wednesday, May 9

The Bank of England sold $150 billion in foreign exchange reserves in a single day to buy pounds and urgently raised interest rates to 12%.

Soros and other hedge funds continued to sell, and the daily pound trading volume reached 1000 billion US dollars (the normal daily average is 100 billion).

By the evening, the UK announced its withdrawal from the ERM, and the pound plummeted 15% against the mark and 25% against the dollar.

Due to the time difference, Luo Qihong was far away in Hong Kong and only learned about what was happening in the UK at 1:00 p.m.

Inside the hotel room.

The decoration here is luxurious. Liu Luanxiong, Cheng Yutong, Luo Qihong and the newly emerged "little prodigy" Luo Zhaohui all have a hand of cards, obviously playing "Dou Da D".

This is Cheng Yutong’s favorite form of entertainment. Sometimes he plays all night long and is very addicted.

"How did you determine that?" Cheng Yutong played a '2 of Hearts' and asked after glancing at Luo Qihong.

"A loan of 150 billion pounds has caused too much noise. It's inevitable that I won't pay attention to it. Considering the economic situation in the UK and the changes in the market, it is almost certain that Soros and his gang are planning to do something." Luo Qihong played the Three of Diamonds to suppress Cheng Yutong.

"You are so bold. One billion pounds is 10 billion Hong Kong dollars, which is almost 156 billion including interest." Cheng Yutong sighed. Moreover, to make huge adjustments in such a short period of time, if these pounds cannot be exchanged in time, the loss will be huge.

The child prodigy Hui on the side took a breath of cold air. The boss in front of him was indeed powerful. He spent 160 billion in one go. He could never make so much money in his entire life.

"Uncle Tong, I was afraid too. Now I have converted it into pounds and paid off all the loans." Luo Qihong smiled slightly.

Cheng Yutong narrowed his eyes and smiled, "How much profit did you make on this trip?"

"Not much, maybe 4.4 million US dollars." Luo Qihong laughed.

"Amazing! They made $4.4 million in just two months, an average of $2.2 million per month." Cheng Yu-tung couldn't help but give a thumbs up.

"Mr. Luo frequently invests overseas. His overseas assets should be more than those in Hong Kong, right?!" Liu Luanxiong interrupted and asked. He didn't want to know specifically, he just wanted to bring up a topic.

In Hong Kong, wealthy people will invest overseas. For example, the Cheng Yu-tung family has nearly HK$20 billion of hotel property investments in the United States and Canada, not including other investments.

So Luo Qihong shook his head and said, "At most one-fifth. The proportion of assets in Hong Kong is very high." In fact, one-fifth is conservative. The proportion should be increased to about one-quarter, with an asset value of more than 60 billion US dollars.

Of course, it is impossible for him to make it public, and it is difficult for financial journalists to fully count it, especially overseas assets.

However, financial journalists are not pushovers. They will make their assessment based on Luo Qihong’s acquisitions in various countries, and in fact, the difference will not be too big.

"Originally I wanted to enter the British real estate industry, but now this incident has happened and my plan has gone down the drain." Liu Luanxiong sighed. In his previous life, he also liked to invest in British real estate properties, especially luxury homes.

Luo Qihong continued, "Wait a little longer. The current market conditions are not good. You can invest in the real estate industry in Thailand. The new government will soon take office, and the slogans it shouts are not bad. The real estate industry should have good development."

Hearing this, Luo Zhaohui's eyes lit up. Of course he wanted to get involved in this money-making project, but he didn't dare to speak out.

He was the only youngest brother in the whole audience. If he spoke rashly, it would be very presumptuous and might even make the big guys dislike him.

Luo Qihong's goal was simple. The Thai market was huge. If he could pull all his allies over there, the local market would be easily hyped up. In this way, he could make a quick buck and then get out.

Everyone present believed in Luo Qihong's vision and remembered his suggestions.

"Uncle Tung, I heard that New World Development's Chungking Mansions in Tsim Sha Tsui is looking for a seller. Ah Hui is a little interested in this building. Why don't you two talk about it?" Liu Luanxiong helped Luo Zhaohui to make the connection.

New World Development Company was wealthy and powerful, and did not take the Chungking Mansions seriously. It just wanted to sell it quickly and get rid of the trouble.

The Chongqing Mansion in Tsim Sha Tsui has always been extremely chaotic, with a complex population including Indians, Hong Kong people, mainlanders and Southeast Asians, and all kinds of businesses inside. It can be said to be a replica of Kowloon Walled City.

Not long ago, a fire broke out in the Chongqing Building, which caused a lot of public outcry. Cheng Yu-tung did not want to spend money on renovations and was willing to sell it at a low price.

But it is a great opportunity for a small figure like Luo Zhaohui. Currently, the real estate market in Hong Kong has skyrocketed, and even after the public opinion has passed, it will still be in great demand. In his previous life, Luo Zhaohui made hundreds of millions by relying on Chongqing Building.

"No need to talk about it. Xiaohui, you take 7% of the market price." Cheng Yutong waved his hands, as if he hated Chongqing Mansion.

"Thank you, Uncle Tong! Thank you for giving me this opportunity." Luo Zhaohui was very alert and quickly stood up to express his gratitude.

If it weren't for Liu Luanxiong's help, Chongqing Mansion would not have been Luo Zhaohui's turn to own something like it. After all, Chongqing Mansion has a prime location. As long as he can withstand the pressure and be a little ruthless, he will definitely make money in the end.

Luo Zhaohui could see the opportunity to make money, and so could others, so the competition was fierce.

"It's okay! It's a small matter." Cheng Yutong played a card and said lightly.

He is willing to help young people, and Luo Zhaohui is also very smart. He is just doing a favor.

"Give me the money, give me the money. Ten thousand for each card. Ah Hong, you have to give me 5." Cheng Yutong won the card game.

Luo Qihong laughed and said, "Uncle Tong, why do you always win? Your luck is too good."

"This is a skill, not just luck." Cheng Yutong said with a smile, "Play cards with me more often, I will teach you my moves and make you a big D king."

"Okay. Uncle Tong, you won so much today, the dinner is yours." Luo Qihong said.

Today I am taking care of Luo Zhaohui, and the ticket is only 5. If it were in the past, the starting price would be .

Of course, this amount of money is just a drop in the bucket for Luo Qihong and Liu Luanxiong. Once, Luo Qihong was unlucky and lost a whole night, but he only lost 500 million.

(End of this chapter)