Hong Kong 1980: The Savage Era

Chapter 540 542 [Who is The One]

A large number of red chip stocks have emerged in Hong Kong, but they have not yet dominated the market. The real estate sector has a relatively high weight in the Hang Seng Index. The performance of leading stocks such as Siu On Properties, Sun Hung Kai Properties and Cheung Kong Holdings can directly affect the index.

Now that the Hong Kong government continues to adjust the land market, the share prices of major real estate companies have fallen, dragging down the performance of the Hang Seng Index.

In fact, the Hong Kong government’s adjustment policies can only temporarily affect the real estate market. In the long run, real estate developers and speculators will definitely adapt and find a way to crack the problem, and the real estate market will resume its rise.

According to Luo Qihong's memories of his previous life, Hong Kong's cities would reach their peak in the two years between the second half of 95 and the first half of 97.

Although the current real estate market has not fallen much and short-term speculation has almost disappeared, long-term holders are still waiting and watching, after all, there is rental support.

Ordinary residential units have fallen by 5%, while other properties such as luxury homes are still strong. It may be that foreign and local capital are optimistic about Hong Kong's real estate market and have no plans to sell yet.

The office of Dehe Real Estate Company.

Luo Qihong is looking through the financial statements. The financial profits for the first and second quarters have been released, with a net profit of HK$14 billion, which is HK$7 to 8 million less than last year.

The reason was that the nine small commercial buildings in Central owned by Federal Realty Corporation were being demolished and rebuilt, and were expected to be completed in the first half of 9, just in time to avoid the period of downturn in the real estate market.

"The construction cost of 9 commercial buildings is HK$60 billion, which is not very expensive. It can increase the floor area by 55 square feet, which is equivalent to adding another Grade A commercial building in Central." Luo Qihong said after putting down the report.

Of course, it cannot be calculated in this way. A Grade A commercial building in Central is also worth 60 or 70 billion Hong Kong dollars. Wouldn’t Dehe Real Estate Company have worked in vain?

In fact, the value of the commercial building will increase significantly after demolition and reconstruction, and the HK$60 billion construction cost can not only be earned back, but also doubled.

Luo Qihong was considering whether to sell off most of the properties under Federal Realty at the peak. After all, it was 97 and the Asian financial crisis was about to come. The profit from this in and out would be very considerable.

"The current real estate market is a bit downward, but properties in Central are still very popular, and Chinese capital is entering Hong Kong on a large scale," said Su Qishan.

Luo Qihong shook his head. "This is just a surface phenomenon. It's only been two months. Once the real estate blue chip stocks fall, the local market will have a hard time holding up. Otherwise, I wouldn't have made a reconstruction plan in advance."

Su Qishan has always believed in his boss's judgment. "Should the company raise another sum of money to buy at the bottom? The profit here should be quite high."

Luo Qihong smiled and said, "Don't be too greedy. We have enough assets in our hands. Let's leave the rest to small real estate developers and speculators."

Like Sun Hung Kai Properties, Dehe Real Estate Company specializes in real estate business. The difference is that Dehe Real Estate Company has expanded its business scope to America and Europe, while Sun Hung Kai Properties specializes in real estate development, and Dehe Real Estate Company specializes in property rental.

In fact, as long as the scale is reached, whether it is real estate development or property rental, there can be huge profits. For example, Dehe Real Estate Company has billions of rental income every year, which is not much different from the profit of Sun Hung Kai Properties.

The core assets of Dehe Real Estate Company in Hong Kong are those large properties, including Dehe Plaza, Finance Plaza, 9 Queen's Road Central in Central, as well as New Sun Plaza in Tsim Sha Tsui and 50% interest in China Hong Kong City.

The small commercial buildings in Central owned by Federal Realty can only be regarded as secondary core assets. Even if they are sold off, it will not affect Dehe Realty's position as a major landlord in Central and it will still rank ahead of Hong Kong Land Development.

Repulse Bay Villa.

Luo Qihong's family and its companies have several villas in Repulse Bay, most of which are rented out. Only two are occupied, one by Li Jiaxin and one by Luo Qihong.

Now Guan Jiahui began to dislike the small size of Villa No. 1, Baijia Road, and hoped to change to another villa.

In fact, considering Guan Jiahui's current wealth, changing villas is as easy as changing clothes, but she mentioned it to Luo Qihong. It is obvious that she wants Luo Qihong to buy it for her, and she also has her eyes on the high-quality luxury house in Luo Qihong's hands.

"Dehe Real Estate has a villa nearby with an area of ​​3.5 square feet. You can live there first." Luo Qihong has always been generous to his women. He gave her a single-family villa worth tens of millions as a gift.

"Thank you, husband!" Kwan Ka-wai smiled charmingly. She is 32 years old now, but looks like a girl in her twenties, probably because of her baby face. Li Jiaxin is 8 years younger than Kwan Ka-wai, at the age of 23, but the two are very close, just occasionally there are some conflicts, so Li Jiaxin curled her lips and said, "Huh! How greedy! I have a single-family villa on Peak Road, and I am still eyeing Brother Hung's property."

Guan Jiahui ignored Li Jiaxin and looked up at Luo Qihong and said, "I have already demolished and rebuilt the Dongying Building as you said. What do you think would be the best name?"

Luo Qihong glanced at Li Jiaxin and smiled, "How about The One?"

Hearing this, Guan Jiahui and Li Jiaxin both widened their eyes. Guan Jiahui smiled and said, "Okay, let's call it The One."

"No! You can't use this name. I am Brother Hong's The One." Li Jiaxin reacted violently.

Both of these women claim to be Luo Qihong's favorite women. Once Guan Jiahui uses this name, the outside world will definitely say that Guan Jiahui is Luo Qihong's favorite woman, and she, Li Jiaxin, will have to stand aside.

Luo Qihong patted the back of Li Jiaxin's hand and said, "It's just a name. Aren't your two buildings in Mong Kok also being demolished and rebuilt? You can also change it to a similar name, such as 'Only One'."

"What about the other building? What's its name?" Li Jiaxin glanced at Guan Jiahui provocatively.

"Let's call it Jiaxin Building. Perhaps this building will be as beautiful and popular as you." Luo Qihong said.

Guan Jiahui doesn't care at all. She thinks The One is much better than Only One. She is indeed her husband's favorite woman, and Li Jiaxin can only be considered the second favorite.

"Okay, then I will keep an eye on the construction of Jiaxin Building." Li Jiaxin still likes to show off more than she loves Luo Qihong.

Guan Jiahui suddenly asked, "All the stocks have been sold, and the situation in the local market is not good. Should we sell off the luxury houses in the convention and exhibition center? If there is a big drop, the loss will be heavy."

Luo Qihong felt that the price drop of luxury homes would not be too big, so he did not ask Guan Jiahui and Li Jiaxin to sell off their luxury homes, commercial buildings and other high-quality properties.

"You may not be able to buy it back if you sell it. Moreover, this market adjustment will not last too long, so there is no need to worry. You are not short of money. If you really can't hold on, you can ask me for help." Luo Qihong comforted them.

"Is it time to buy at the bottom by the end of the year?" asked Li Jiaxin, as she had already received a lot of cash flow.

Li Jiaxin finally got smart for once, and Luo Qihong replied with relief, "Almost! How much assets do you have in Thailand?"

Guan Jiahui said excitedly, "I still have about 7%, most of which are commercial buildings and shops. I have almost sold all the luxury villas and made 1.5 million yuan."

Li Jiaxin said disdainfully, "The money I earned is not enough to rebuild the Tung Ying Building. I earned more than you, 2.4 million Hong Kong dollars."

Guan Jiahui said, "How much of your assets in Thailand do you have left? I heard that only 5% is left. If I sell another 2%, I can still make 2.4 million. And you have two buildings to rebuild, and I only have one."

"You..." Li Jiaxin's chest trembled up and down with anger, and Luo Qihong quickly warned her, "Don't say bad words."

Li Jiaxin's swearing skills are far better than Guan Jiahui's, but Guan Jiahui's language skills are also far better than Li Jiaxin's. With Luo Qihong's swearing skills sealed, Li Jiaxin is naturally no match for Guan Jiahui.

"Brother Hong, when are you going to Australia? The industries in Singapore are almost done, she doesn't need so many assets." Li Jiaxin sat next to him angrily.

Luo Qihong consoled him, "Don't worry. Australian mining companies will go global and may become giants in the world's mining industry."

"Do minerals have more prospects than food and beverages?" Li Jiaxin didn't understand these things at all, and had no interest in understanding them.

"They each have their own advantages. It mainly depends on how well they are run," Luo Qihong said evasively.

(End of this chapter)