Hong Kong 1980: The Savage Era

Chapter 527 [529 years]

It was 94, and Hong Kong's stock and land markets were still thriving. The Hang Seng Index had climbed to 93 points at the end of 11888, and is still rising, having already broken through 12000 points.

This is a very dangerous signal, but investors ignored it. Some financial magazines used the "examples of 73 and 87" to warn investors, but unfortunately these people didn't listen at all.

Luo Qihong merely smiled at this. Stock investors have always been like this. They like to invest in a herd and don't listen to advice. When they suffer losses, they blame this and that, as if the whole world owes them something.

So, this time when a reporter asked Luo Qihong about his views on the stock market and local markets, Luo Qihong only said that he agreed with the analysis of a certain magazine, and did not say anything to persuade people to be rational.

However, some financial reporters noticed Zhaoan Group's selling action and asked Luo Qihong in a tricky way.

Luo Qihong explained that this was a secret of the group and he could not disclose any information for the time being, and then refused to answer other questions.

Such an attitude naturally caused the revenge of the "uncrowned king", so the financial reporter wrote in the magazine, "The securities company under the surname L has been selling stocks frequently. Does this mean that the stock market is about to collapse? The surname L is unwilling to remind the majority of shareholders, perhaps he wants the shareholders to bear the brunt for him."

Therefore, many citizens easily guessed who this person was based on previous reports in financial magazines. However, there were also people who spoke well of Luo Qihong and listed the faults of the shareholders at the same time.

The result caused a huge uproar, with the criticism directed at Luo Qihong.

Luo Qihong had seen many ups and downs and didn't care about these things. He just asked the group to issue a notice. Zhaoan Group was not a securities regulatory agency or a bank and had no obligation to remind the public. Even if it did, shareholders might not be willing to listen.

The old villa of the Luo family in Deep Water Bay.

All members of the Luo family are in the real estate business and own several villas in Deep Water Bay. However, Luo Zegui and Lin Ya asked their eldest son to live with them, so Luo Qixing and his wife did not move out.

Today, the price of villas in Deep Water Bay has risen to 14000 yuan per square foot. For example, a townhouse costs 3500 million Hong Kong dollars, which is more than three times the price in 90.

"Your group has been very aggressive recently. It's fighting with financial journalists again." Luo Qixing picked up a piece of fruit with a fork, put it in his mouth and started chewing.

Luo Qihong smiled slightly and said, "These reporters are just looking for chaos in the world. It will be fine after a while."

"Aren't you afraid that the company's stock price will plummet?" Luo Qixing asked with some confusion. Listed companies are most afraid of being affected by this kind of news. If there is a problem with the stock price, the directors will generally be held accountable.

"What are you afraid of? Zhaoan Real Estate Company alone made billions in profit last year. If this news gets out, the stock price will only skyrocket." Luo Qihong sneered, "Stocks are originally speculative. There will be gains and losses. I'm not their babysitter. They didn't give me the money they made, so why should I indulge them?"

Currently, Zhaoan Group has only four listed companies, and its market value is less than half of the group's actual assets. If any problems arise, he can privatize them since he has plenty of cash anyway.

Besides, Luo Qihong has been doing business in Hong Kong for more than ten years, and most of the people who hold shares in the four listed companies are his fans. As long as he can bring profits to shareholders, Zhaoan will not capsize.

"'Hero Luo' is still the best!" Luo Qixing teased, seeming to be envious.

"Will the stock market really collapse?" Luo Qixing thought about it and asked.

Luo Qihong said, "Haven't you heard about the news that the Hong Kong government is preparing to adjust? The current stock market is overvalued, and it is certain to adjust downward. As for how much it will drop, no one can predict."

"But the profits from this in and out are still somewhat astonishing. If you don't want to incur losses, you should pay attention to your company's debt ratio. If you want to make a profit, you must close your positions in time, especially in real estate."

Luo Qixing's management of the company is still very lacking. For the sake of profit, he ignored the company's debt ratio and forced dividends, which shocked many shareholders. But those shareholders have money to take, so naturally they won't say much. After all, Luo Qixing was the one who took on the company's problems.

“Even if the Hong Kong government will make adjustments, it cannot violate the laws of the market. I think the decline is only short-term and very limited. There is still room for growth. Selling too early will result in losses, which may not be much different from the future decline.” Luo Qixing has the momentum of giving orders, perhaps because the real estate company is developing well.

Luo Qihong smiled. Luo Qixing’s idea was very typical and represented the analysis of many people.

This reminded Luo Qihong of the principle of 'I am fearful when others are greedy, and I am greedy when others are fearful', but people like Luo Qihong just want to do the opposite.

"Well, maybe my analysis is wrong." Luo Qihong smiled faintly and stopped persuading Luo Qixing. Anyway, the drop was not very big, and it would be good to teach Luo Qixing a big lesson.

Seeing Luo Qixing so arrogant, Bai Jinyan laughed and said, "Brother, the Hong Kong government said last year that adjustments would most likely begin after the Spring Festival. Even if there is an increase, it will not be too big."

"The Hang Seng Index has now risen to 12000 points, almost doubled compared to last year. It can't rise any further. The economic bubble is already very big. For example, Japan's economic bubble burst and it has not recovered yet. Do you really want to gamble?"

After hearing Bai Jinyan's analysis, Luo Qixing was no longer so persistent. If it was like Japan, he would go bankrupt. Such a big gamble was a bit scary.

Chen Yusan wanted to say something, but she kept her mouth shut and remained silent.

Although the relationship between Luo Qixing and his wife is better than it was two years ago, it can never be restored to the previous level. Luo Qixing has not really admitted his mistakes and often flies to Australia.

As the Spring Festival approached, Luo Qihong instructed the group's top management to announce the profitability of some projects of listed companies, with the intention of raising the share prices of companies such as Zhaoan Real Estate, so as to raise funds for a share offering before the decline came.

The three giants came to report on their work, all with happy faces.

Luo Qihong, the boss, has always been generous. Not only did he make the annual salary of the Big Three exceed 3 million, he also taught them how to invest. Now their net worth has exceeded million Hong Kong dollars, and they are called "working emperors" by the outside world.

"Boss, the group's rental income exceeded HK$30 billion last year. Projects in Thailand have generally doubled. Since Thailand's real estate still has great potential, this part of the revenue cannot be counted for the time being, so we can only choose not to announce it." Kang Wenyi reported.

"This is a peak. Once the Hong Kong government adjusts its policies, this year's 30 billion rental income will definitely not be maintained. You must be prepared," Luo Qihong warned.

"Will this decline last for a long time?" Chen Zhilong asked, of course he was asking for Luo Qihong's opinion.

"It will definitely happen in 7 or 8 months. You need to make a long-term plan. The development schedule of the property needs to be slightly adjusted. There must be residential units for sale, but the quantity cannot be large." Luo Qihong said, "The main thing is to shut up the media and prevent them from causing trouble for us."

Although Luo Qihong has mastered many tools of public opinion, he cannot cover the sky with one hand. Therefore, he has to do a little better than ordinary real estate developers, so that the media will attack his peers.

"Yes! I will definitely find the balance." Chen Zhilong said confidently.

"The mainland's textile and electronics companies don't make much profit. The annual profit is only a few tens of millions of yuan. In addition, these companies have to continue to expand. Not only can they not recover last year's profits, but the companies have to continue investing." Cheng Jianshen said with some shame. Everyone else is making a lot of money, but only the company he is in charge of is desperately eating up the investment.

Luo Qihong waved his hand and said, "It's all within our expectations. We need to look further ahead. The factory is in a very good location and can be relocated in the future. The current factory land can be used to develop residential units or commercial buildings."

"If we calculate it this way, we will definitely make a lot of money in the future. This little investment now is just a small amount. Therefore, we must actively expand the scale of the factory, occupy more land, and strive to build a shopping mall and industrial park belonging to the group."

(End of this chapter)