Hong Kong 1980: The Savage Era

Chapter 533 535 [Real Estate Speculators and the Hong Kong Government]

Huang Tingfang's expression suddenly tightened, and he said to Luo Qihong, "UOB is reducing the equity of its subsidiaries, but it is not because they have discovered our actions. The real reason is still under investigation. I suspect that Huang Zuoyao is worried that someone will take action against Tiger Balm Enterprises."

Luo Qihong thought about it carefully and understood what Huang Tingfang meant. "Mr. Huang means that Huang Zuyao is afraid of me?"

Huang Zhixiang smiled and said, "Luo Sheng's record is too impressive, and he once launched a takeover of the Land Company under Dahua Bank. Huang Zuyao will naturally be afraid."

Luo Qihong picked up a piece of fish and said, "You want me to give Huang Zuyao some reassurance?"

"I know it's abrupt to do this, but it's important to appease Huang Zuyao. It's related to whether the acquisition can go smoothly." Huang Tingfang sighed. He had the opportunity to acquire Tiger Balm Enterprises at the beginning, but his funds were all in Hong Kong at that time, and it was also a critical time for the development of Hong Kong, so he had no choice but to give up.

It is several times more difficult to acquire a company now than it was a decade ago, but he still wants to try and do his best.

The successful acquisition of Tiger and Balm Enterprises is the greatest benefit that the Huang Tingfang family can obtain, and Luo Qihong is only second.

As for appeasing Huang Zuyao, Luo Qihong thought it was quite ridiculous. Huang Zuyao was not a rookie, but a giant in the business world. Any flaw would arouse his suspicion, leading to the worst consequences.

Huang Tingfang was so anxious that he was dizzy and couldn't even see such a small thing.

"Then Mr. Huang, can you tell us how to reassure Huang Zuyao while preventing him from finding any flaws?" Luo Qihong asked back.

Huang Tingfang was somewhat speechless at this, but Huang Zhixiang said, "Luo Sheng is a business tycoon, so he should have a solution, right?"

Luo Qihong sneered and said, "I have no choice. Mr. Huang knows how powerful Huang Zuyao is better than I do. I don't have the ability to hide it from the world. And I don't think this approach is correct. No matter what, I will reveal my flaws if I go to Huang Zuyao."

"The current situation is still controllable. Huang Zuyao has not found any problems, and there are many companies under his control. Progress will definitely be slow. It will not have a big impact on our plans. We just need to be more careful."

"Perhaps Luo Sheng can help with 'making a feint to the east and attacking in the west'." Huang Tingfang stated the ultimate goal.

Making a feint to the east and attacking in the west? !
Luo Qihong thought about it for a moment and understood what Huang Tingfang meant. "Okay, but this can only be regarded as a rumor. Mr. Huang, go ahead and spread it. I know how to tell Huang Zuyao."

"Haha!! Thank you, Mr. Luo. I'll remember this favor." Huang Tingfang certainly didn't think that Luo Qihong couldn't see what was going on.

the next morning.

The news that "Lo Chi-hung intends to acquire Hong Kong Land Development again" spread quickly from the Singapore Stock Exchange, causing quite a stir. The share price of Hong Kong Land Development also soared, rising by 13% in just a few hours.

Hengan Investment Company did not come out to refute the rumors immediately, which further "confirmed" the rumors of the acquisition.

Even when reporters came to interview, the staff of Hengan Investment Company chose to avoid the question and did not respond.

Huang Zuyao found Luo Qihong the next day and asked about the truth of the rumor.

"Mr. Huang, although I have a lot of cash flow, I will not do things like this. I just acquired the F&N Group and now I am acquiring the Jardine Matheson Group. I really don't have that much strength." Luo Qihong smiled faintly.

"It's a bit strange. A large number of stocks were absorbed in the market, and the other party was the account of Wan Citic Finance Company. Could it be someone else?" Huang Zuyao certainly didn't believe Luo Qihong.

He has done too many hostile takeovers, so he can be wrongly accused of anything bad.

Luo Qihong sighed immediately, "I can understand why Mr. Huang doesn't believe me, but this is Mr. Huang's own business after all, and you can't ask me to prove my innocence."

"Haha!! Mr. Luo, please don't misunderstand. I don't disbelieve you, I just feel confused." Huang Zuyao also thought that the possibility of it being Luo Qihong was not high, but apart from Luo Qihong, no one else would dare to challenge him.

"There's no smoke without fire! Someone is buying up shares of the Landmark Company. They must be planning to acquire the company. Mr. Huang should be careful." Luo Qihong laughed. "Anyway, Mr. Huang runs a bank and has a lot of money. Buying up shares of the Landmark Company is a piece of cake. Don't worry."

"Thank you for your reminder, Mr. Luo!" Huang Zuyao nodded. Luo Qihong's tone was full of teasing, but he had offended someone first. Luo Qihong knew that just a few words would not completely dispel Huang Zuyao's concerns, but it would definitely make Huang Zuyao accelerate the acquisition of the company's shares, consuming a lot of funds and energy.

If this is the case, Huang Tingfang will not be able to achieve his goal, and then Tiger and Leopard Enterprises is doomed to have no chance of succeeding.

Luo Qihong is very mean. Even though he made it clear to Huang Zuyao, he did not issue a public statement, which made Huang Zuyao even more nervous.

A week later, Luo Qihong left Singapore and returned to Hong Kong.

The current situation in Hong Kong is not good either. Real estate developers and the Hong Kong government are engaged in a war of words, causing the market to be very turbulent.

从91年到94年，港府不断出台平抑楼价、打击炒卖的措施，如买家必须支付楼价的5%做按金；限制内部认购比率低于50%；500万港元以上的住宅按揭率降至5成；向频繁买卖楼宇的投资者征收利得税。

The measures are quite severe, but unfortunately they have had little effect. After all, it is so easy to make money, no one wants to stop.

In fact, the Hong Kong government has been ineffective in implementing the measures and is suspected of taking the lead in driving up prices (the price of government land is getting higher and higher). The revenue from the auction of government land has accounted for 4% to 5% of fiscal revenue.

Today's high housing prices are prohibitive for most homebuyers, and many residential buildings are being circulated among speculators.

Public opinion is blaming real estate developers, speculators and the Hong Kong government, and the tone is very harsh, which has triggered a struggle between the Hong Kong government and the former two.

The Hong Kong government is also conflicted. It wants to increase land supply, but is also worried that large-scale land auctions will affect its fiscal revenue. Therefore, the Hong Kong government's approach is somewhat empty slogans.

Real estate developers have targeted this weakness of the Hong Kong government, and now the trend of public opinion has become favorable to real estate developers.

The Chief Secretary hastily made a statement, claiming that the Hong Kong Government would increase the supply of land, fearing that this would bring disaster upon itself.

Some legislators also spoke up for the Hong Kong government, accusing real estate developers of not selling properties and hoarding them in an attempt to make more money from home buyers.

The war of words reached its climax in May.

Early April.

Luo Qihong looked at the newspaper and felt inexplicably depressed. It was a general trend for real estate developers to speculate on residential properties. He didn't know how many real estate companies were supported by the speculation of residential units.

In Hong Kong, there are not many companies engaged in land development. For example, Hang Lung, which was very popular in the early 80s, has now become a representative of speculators and property rentals.

In fact, the residential vacancy rate in Hong Kong is very high, especially in Hong Kong Island and Kowloon urban areas.

Soon, Luo Qihong realized that the main culprits for the high housing prices were speculators and the Hong Kong government, and had little to do with the developers.

He believes that even if developers provide a large number of residential units, they will not fall into the hands of real home buyers but will still be taken away by speculators, and in the end the house prices will not change much.

"Sit down!" Luo Qihong asked Chen Zhilong to sit down, and then said, "The company will increase the number of residential units this year and strive to sell more than 6000 units per year. Is it difficult?"

Chen Zhilong shook his head. "No problem. Increasing the supply by 15% is not a big deal."

"Housing prices will definitely drop in the future, but in the final analysis, the company is still making money. The only thing I want to advise you is not to let the outside world catch us and not to be the first to do so." Luo Qihong said seriously.

Chen Zhilong nodded heavily. As a senior executive of the group, he was very familiar with the external situation. If the quarrel was so fierce, he would definitely get burned if he brought trouble upon himself.

(End of this chapter)