Hong Kong 1980: The Savage Era

Chapter 536 538 [Three Investment Projects]

Cheng Yutong smiled and shook his head, saying, "You have become much more cunning. The old Ah Hong was not like this."

"Mr. Luo means that both the property market and the stock market will undergo a period of adjustment?" Liu Luanxiong asked with some difficulty. He originally thought that the worst would be like last time, but now it seems to be even worse.

Luo Qihong nodded and said, "It will definitely enter a period of adjustment, and red chip stocks are a bit weak. Liu, you have to be careful."

Chinese Estates Holdings not only engages in property speculation and rental collection businesses, but also has a subsidiary company that specializes in securities. Most of its business is still in Hong Kong, with only a small number of businesses overseas and in the Mainland.

Therefore, once the Hong Kong market enters a period of adjustment, both Chinese Estates Holdings and Liu Luanxiong will suffer heavy losses personally.

Liu Luanxiong is already a well-known wealthy man in Hong Kong and has his own judgment on the market. Naturally, he will not always follow Luo Qihong in investment. After all, he has his own pride.

At this time, Shentong Hui had not yet gone bankrupt. He followed Liu Luanxiong to speculate in properties and became one of Hong Kong's billionaires. He also had constant scandals with female stars.

The romantic scandals of Liu Luanxiong and Shen Tonghui have long dominated the headlines. They are well-known wealthy men in Hong Kong who hunt for beauties. Of course, many female celebrities have also approached these two for a luxury house or a shop.

Shen Tonghui's expression suddenly changed slightly. He was engaged in leveraged property speculation. He would not be able to hold on after the real estate market adjustment. Of course, he had not reached the point of bankruptcy, but he was definitely in a state of panic.

"Ah Hong, how long do you think the adjustment period will last?" asked Cheng Yutong.

"The think tank predicts that there will be a one-year adjustment period and the decline will exceed 30%. No matter how the real estate companies operate, they will be affected. However, it is a good opportunity for speculators like Liu Da and Xiao Hui to make money." Luo Qihong smiled.

Shen Tonghui was excited when he heard this. Even a big shot like Luo Qihong said so. This must be a good opportunity to make money. Liu Luanxiong began to think deeply. He was different from Shen Tonghui and had his own judgment.

Cheng Yu-tung sighed and said, "In the past few years, the development funds were all put into the Convention and Exhibition Center and New World Center. We missed the best time for land reserves, and now we can't keep up."

In fact, the New World Development Company during this period was in a much better situation than in the previous life. Half of Wheelock Company was not useless, and Wheelock Company had good shipping revenue, which offset a lot of Zheng Jiachun's outrageous operations.

But it is still not as good as similar companies, and New World Development is about to fall out of the top five real estate companies in Hong Kong, which makes Cheng Yu-tung worried.

Cheng Yu-tung's company only has a small amount of securities investment, which is negligible compared to real estate properties, so New World Development cannot earn much in the securities stock market.

The failure to keep up with the business in several areas has created a potential crisis for the development of New World.

In the afternoon, the final results of the auction came through.

粉岭地皮的成交价是20.6亿港元，比预期的29亿港元低了将近一半；元朗地皮以5.1亿港元成交，比预期的8亿港元少了差不多3亿港元。

Before the auction started, the media predicted that the transaction price would be 2% to 3% higher than the Hong Kong government's reserve price. However, the result was unexpected and the transaction price was slightly higher than the reserve price.

Luo Qihong smiled and said, "Tomorrow's real estate stocks will start to fall, and blue-chip stocks should be able to withstand the first wave of decline."

Liu Luanxiong frowned slightly. He had a lot of real estate stocks in his hands, and he would suffer heavy losses if they fell.

Not long after, Liu Luanxiong hurriedly made a phone call to deal with some company matters.

Real estate stocks will plummet, but properties will not. It will take some time, which gives speculators some room to operate.

The next day, as Luo Qihong had expected, public opinion in the market changed.

The media have turned their guns on the real estate developers, believing that they are using the auction prices to resist the Hong Kong government's adjustments to the real estate market in an attempt to raise house prices.

All the major real estate developers were questioned by the media reporters. Luo Qihong wanted to avoid it, but he couldn't. "Mr. Luo, may I ask if the major real estate developers have agreed to work together to fight against the Hong Kong government's real estate adjustment policy?"

Luo Qihong laughed and said, "This is completely false. The Zhaoan Group agrees with the Hong Kong government's real estate adjustment measures. I think the official land auction is conducive to the implementation of real estate adjustment measures. At the beginning of the stock market today, many real estate stocks have seen a sharp drop. The next step should be a drop in property prices."

"Isn't our goal to adjust the housing market prices? We will achieve our goal soon, and the real estate developers will also have a share of credit for this."

"That's not what the experts say. The price of government land at the auction plummeted because it was manipulated by real estate developers."

Luo Qihong said, "The Hong Kong government has already introduced adjustment measures, and the market will naturally respond. Does bidding for land at a high price mean responding to the Hong Kong government's call? Real estate developers are businessmen, not philanthropists. They will not bid for land at a high price and sell houses at a low price."

"The company belongs to all shareholders, not just one person. The person in charge needs to be responsible to all supporters, which means it needs to make profits and keep up with the development of the times."

"This land auction is indeed a collaboration between real estate developers. This is rarely seen in the past. What do you think of this, Mr. Luo?"

"I think the alliance is a self-protection measure. We are unclear about the future market and are worried about losses. If we unite, the losses will be limited. It is a good choice for the company's operations." Luo Qihong answered carefully.

These reporters are becoming more and more tricky. All their questions are traps and can be over-interpreted if you are not careful.

Zhaoan Group Office.

Bai Jinyan and Cheng Jianshen came together, and it seemed that there was something important to discuss.

"Boss, there is a large amount of cash flow in Zhaoan Real Estate's accounts now. There are problems in the stock market and local cities. I suggest investing the funds in other industries." Cheng Jianshen said.

Bai Jinyan followed up by saying, "Asia Securities also cashed out a large amount of funds a month ago. Currently, it only holds a small number of blue-chip stocks and only needs investment projects. Do you have any good suggestions?"

"Why don't you wait for the bottom?" Luo Qihong smiled faintly. Of course, he had better investment projects, but they were not in Hong Kong.

"It takes too long. The company can't wait." Cheng Jianshen replied.

The Hong Kong stock market is now in a state of extreme panic, with investors dumping stocks, especially those of small and medium-sized companies, which have seen significant drops.

"I have two investment projects, one is the appreciation of the Japanese yen, and the other is U.S. bank stocks. Basically, both have a return rate of more than 35%. However, there are still opportunities in Hong Kong. I do not recommend that you invest all your funds and abandon the opportunity to buy at the bottom." Luo Qihong expressed his advice.

"By the way, there is another company in Japan that is worth investing in, Sony Electronics. It will see a big increase."

The market value of Asia Securities Company has exceeded HK$130 billion, making it a well-known securities investment company in Hong Kong. However, it has a large number of properties under its umbrella, and its market value is inevitably reduced in this adjustment.

But Bai Jinyan wants to maintain a market value of HK$130 billion, so he must invest and announce good news.

"Is the appreciation of the Japanese yen the fastest?" Bai Jinyan asked. She knew clearly that Luo Qihong had invested in the appreciation of the Japanese yen and his prediction was very accurate. The appreciation basically followed Luo Qihong's ideas, so this time she also believed Luo Qihong's prediction.

"Yes!" Luo Qihong nodded. "The market for these three projects is huge and can accommodate tens of billions of Hong Kong dollars of investment. You can proceed as you wish."

"As 97 approaches, should we transfer some of our investment funds?" Bai Jinyan asked.

The market is very tight nowadays and many wealthy people have started to move their capital out again. Among them, the United States, Canada and the United Kingdom are the most popular investment destinations.

Although it is not as bad as the situation in the early 80s, it is not much different from the situation in 89. The Zhaoan Group is a large and powerful company. Even if it starts to flee now, it may not be able to complete its capital flight plan before 97.

(End of this chapter)