Those Years When I Was Forced to Top the Forbes List

Chapter 360 Three-way price. Hutchison Whampoa raises its paddle.
The auction room was not large.

The confrontational attitude between the two important figures created a somewhat oppressive atmosphere.

Huo Jianning looked displeased, covered the receiver with his hand while holding the phone, and spoke in a low voice.

Mr. Chen sat casually in his seat, looking displeased.

Some companies that were hoping to take advantage of a bargain had their hopes completely dashed after hearing Huo Jianning's words, "Let's see if you can afford to follow."

This land is worth at least 10 billion today.

Many people thought that with the recent policy pressure, it was not impossible to get a low price of 1 billion or 800 million. But now it seems that the two big players are fighting with emotions, and the final transaction price may be 13 billion higher than the original agreement price.

Ren Ying sat next to Chen Xuebing, her brows furrowed in thought, unsure whether she should remind Chen Xuebing not to get emotional or to provoke Li Jiacheng.

Even disregarding this auction, we still have a conference to hold in Hong Kong after the New Year. Aren't we afraid that someone will send people to cause trouble?
But now, we've already provoked them.

She knew nothing about how this was going on, but she always felt that Chen Xuebing wasn't such an impulsive person, especially when it came to important matters.

Moreover, he seemed very relaxed the day he received the news of the report. Just two days ago, on his way back to Sichuan, he was quite happy. Why did he suddenly become angry?
No, this is not a simple matter.

Chen Xuebing rarely keeps quiet about anything, but he hasn't mentioned this matter once since I received the call that day. There must be a big plan behind this, and it can't be as simple as just a piece of land.

The people present had different thoughts. At 9:30, a short-haired female auctioneer walked into the room, and the projector on the stage was turned on.

"Clang, clang, clang." She tapped her pen three times on the table. "Attention, bidders."

"The 2007-03 plot will be auctioned using an ascending-bid method, with a starting price of 6.6 million yuan and each bid no less than 500 million yuan."

"in addition."

"After planning and renovation, the plot ratio of this site has been increased from 3.0 to 4.0."

These words immediately roused many people.

Huo Jianning also glanced at Chen Xuebing while holding the phone, a slight sneer on his face.

What's the point of increasing the floor area ratio? It just benefits others anyway.

The starting bid for today's auction of Hutchison Whampoa was HK$13.1 billion.

12 billion is the ideal price, 13 billion is the bottom line for acquiring the land, and the extra 10 million is a final test.

But now, he has reported the situation to Mr. Li and has been granted the authority to raise the price.

The chairman was right across the phone; there was no upper limit to the bid, and he was determined to win.

As he silently vented his emotions, the auctioneer on stage continued:
"so."

"Two special provisions have been added to the land."

"First, the land transfer fee must be paid in full within 15 days after the auction date."

"Secondly, the final bidder must begin development within six months, apply for a pre-sale permit within one year, and complete development within three years. If the bidder breaches the contract, the High-tech Zone and the municipal government will confiscate the land use rights without compensation."

Huo Jianning's expression changed instantly.

Limited-time development?
The developers in the back row also looked somewhat puzzled.

They're here, they're really here.

Things are really different now that the national tax policy has changed.

Previously, hoarding land would at most result in fines and warnings, but now the penalties are directly written into the land transfer conditions.

A smile gradually appeared on Chen Xuebing's face as he glanced at Huo Jianning.

These were the conditions he proposed to Secretary Jin.

The central government's intention to crack down on land hoarding is clear, and the land auction in the High-tech Zone should be subject to corresponding restrictions to align with this policy.

In particular, a pre-sale permit must be applied for within a specified period.

With this provision, if the settlement condition of "not sold out within 3 years of obtaining the pre-sale permit" is met, there will be a basis for collecting land value-added tax, and there will be no way to escape it.

Land hoarding? Getting rid of you is easy enough.

Huo Jianning, head down, said into the phone, "Boss, there are new conditions for the land transfer; it must be done within six months."

"I heard you," a calm voice came from the other end. "Make your bid."

Huo Jianning immediately signaled his assistant to raise the sign.

The auctioneer laughed: "It seems Hutchison is impatient. Auspicious numbers, six hundred million, sixty million."

After saying that, she looked at Chen Xuebing.

Chen Xuebing smiled but did not speak.

"Six hundred and sixty-five million!"

"Six hundred and seventy million!"

"Six hundred and eighty million!"

The voices from the back row were carefully raised.

The developers sensed that this additional condition would definitely be detrimental to Hutchison Whampoa. Mr. Chen, who was sitting in the front row and hadn't said a word, suddenly became active again, thinking that there might actually be some bargains to be found today.

After fifteen rounds, the price reached 800 million.

At that moment, Huo Jianning heard a voice in his ear: "Ten big pancakes."

"One billion!" the assistant shouted, a figure that disheartened many.

The room fell silent.

Payment must be made within 15 days; most people can no longer afford to pay.

The auctioneer laughed: "One billion, a two-hundred-million-dollar bid in one go, what an unforgettable auction!"

At this moment, President Chen suddenly spoke up: "12 billion!"

The auctioneer's eyes lit up, and he raised his hand towards Chen Xuebing: "12 billion! Mr. Chen is generous, 12 billion!"

"12 billion!" Huo Jianning didn't stop at all, seemingly unwilling to even listen to the auctioneer's flattery of Chen Xuebing.

Chen Xuebing frowned; this was already beyond his bottom line.

He had assumed that even if Wong didn't take over, he would still raise the price, so he directly asked for 12 billion, skipping those steps. But he didn't expect Wong to dare to raise the price further at that level.

The original plan was to set aside 100 million yuan before the end of the year so that Ren Ying could complete her investment in Huayi Brothers.

It seems I can't stay.

Well, this gives him plenty of reason to lash out.

"13 billion!" Chen Xuebing stood up abruptly, and before the auctioneer could speak, he tapped the table with his finger and said coldly, "This land was taken from me by some people through a tip-off. If I can't get it, don't worry, I will keep an eye on this land. Anyone who tries to hoard the land without developing it, even for a day, I will report them to the end!"

silence.

Those in the back row all knew who President Chen was referring to, and Huo Jianning didn't say anything for a moment when he heard 13 billion.

Even the person on the other end of his phone was talking to someone, seemingly asking him something.

The auctioneer quickly intervened, saying, "Mr. Chen, please abide by the auction rules. Prohibitions are not allowed in the auction room."

"Hmph." Chen Xuebing turned and left.

This means that Hutchison Whampoa will not continue to bid. If Hutchison Whampoa continues to raise the price, then the land will belong to Hutchison Whampoa, and no one will take over.

13 billion—besides Hutchison Whampoa, no one present today could afford that. A few seconds of silence followed Chen Xuebing as he walked out of the auction room.

"Oh, Mr. Chen is getting a bit emotional. Everyone, please continue! 13 billion! Mr. Fok, are you going to continue to defend the dignity of Hong Kong capital?"

The auctioneer works for the city, so of course he has to keep fanning the flames.

"1.3 billion and 5 billion," came the auctioneer's voice.

Huo Jianning's assistant inside was holding up a sign again.

"Heh, old man." Chen Xuebing snorted coldly from outside, intending to leave.

But then he suddenly realized that Ren Ying hadn't come out with him.

"Okay, 1.305 billion has only increased by 5 million. 1.305 billion, are there any more bids?"

"It seems that Gu'an Group has missed out on this land today. I feel a little sorry for Gu'an."

"1.35 billion!" Ren Ying's voice suddenly came from inside.

Chen Xuebing's steps faltered.

The auctioneer's voice was somewhat hesitant: "Um, are you... Mr. Chen from Gu'an just said he wouldn't be bidding anymore? Are you sure?"

"determine."

"Great! 1.35 billion!" The auctioneer's voice rose again in excitement.

"1.35 billion, any bids?"

The auctioneer strikes the gavel.

"1.35 billion, once!"

"1.355 billion! Mr. Huo has made another bid!"

"Eh? Miss, you..."

Chen Xuebing, who was outside, heard the clattering of high heels, turned around, and found that Ren Ying had already come out.

He smiled and was about to speak when Ren Ying quickly pulled him forward.

When they reached the elevator, Ren Yingcai was panting heavily and patted her chest.

"I was terrified! I almost lost a hundred years' worth of income!"

Chen Xuebing chuckled at her reaction: "So scared, yet you still dare to raise the price?"

Ren Ying's face flushed red as she said, "When I saw the 13 billion bid, President Huo laughed into his phone and kept nodding. He must have received instructions to acquire the land! They're giving us a boost, so we can't just let it go like that. We have to give them a boost back! Give them a big boost!"

"Hahaha!" The gloom in Chen Xuebing's heart instantly dissipated, and he laughed heartily, giving Ren Ying a thumbs up, "Well done!"

Ren Ying patted her chest again: "No, no, wait for me to go to the restroom."

After she finished speaking, she saw the elevator coming up. She turned around and noticed that the people in the auction room seemed to be coming out as well. Realizing that she couldn't let them see her nervousness, she shook her head and said, "Never mind, let's go quickly. We'll go later."

Chen Xuebing walked downstairs all the way with a smile.

When they left the building, a group of reporters were still downstairs. When questioned by the reporters, Mr. Chen and his assistant, Mr. Ren, both regained their cold expressions, remained silent, and got into the car directly.

The report came out the next day.

Hutchison Whampoa has acquired another 200-mu plot of land in Shiyang Street, High-tech Zone!
The auction was fiercely contested, with Gu'an Construction Group once bidding 13 billion yuan! They narrowly lost!
—When interviewed, Huo Jianning said: "Mr. Li praised the hard work of mainland real estate companies, but reminded young people to respect market rules."

Awkward.

Mainland real estate companies have failed again, and the people of Chengdu are outraged. There was a strong online outcry that day, with many arguing that Hong Kong businessmen should not be given the opportunity to hoard land repeatedly.

Just as foreign investment restrictions are becoming increasingly stringent and the government's calls for regulating foreign investment access to the real estate market are growing stronger, the Chengdu Land and Resources Bureau has announced additional terms for this auction, stating that the Hong Kong-funded development must strictly comply with relevant development regulations, and that Chengdu will gradually improve the terms regarding land development periods.

When the suppliers in Sichuan heard the news, they all sighed deeply. Although General Manager Chen was strong, he was still slightly inferior to the one in Hong Kong.

Mr. Chen was not one to suffer a loss, so the next day he called Director Liu of the Development and Reform Commission and brought up the matter of "Residential Plot No. 101" in Qinglongchang.

On the afternoon of the third day, Director Luo of the Construction Department called Chen Xuebing.

"Mr. Chen, what a pity! After hearing your plans, I was really looking forward to seeing the results of your development in Chengdu!"

Chen Xuebing was sitting in front of his computer looking at an email from Cai Zhijian when he heard this and chuckled: "Heh, they're so arrogant, telling me to respect market rules? What rules? The rules of capitalists hoarding land? I was just thinking of finding local media to scold them. Chengdu TV came to interview me, but they thought I was too blunt and didn't dare to broadcast it. Why don't you give them a call and ask the TV station to make an exception?"

"Television media is a rather serious medium. If someone is having difficulties, you should be more restrained in your speech."

"Director, I won't let this go. I've already called Director Liu of the Development and Reform Commission about that 318-mu plot of land in the Qinglongchang area. The land has been changed from purely residential to 40% commercial and 60% office, the plot ratio has been increased from 2.8 to 4.1, the payment period has been changed from one month to two years in installments, and the soil remediation has been changed from being the developer's responsibility to being covered by the government's special remediation fund. With these conditions, it's probably not acceptable to still try to transfer the land through an agreement. I'm going to report this, and I'll report it under my real name. This land must be put up for auction."

Director Luo was silent for a while. He had called today specifically about this matter.

"The land you mentioned is next to Zhaojue Temple, the old site of the Guangming Equipment Factory in the city. That land is not easy to develop. Geological tests may show benzo[a]pyrene and cadmium pollution, and the acidity exceeds the standard! The land was transferred through an agreement because Cheung Kong Holdings acquired the Chengdu Tannery next door in 04, intending to use it as a cultural tourism complex for Zhaojue Temple. After the land is cleaned up, a 3.2-square-meter bonded exhibition center will be built. Chengdu is interested in letting them do the overall development. Cheung Kong Holdings does have unique advantages."

"Zhaojue Temple? Has it been developed?" Chen Xuebing asked rhetorically. "Although I haven't been there, I'd venture to guess that in the three years since 04, Cheung Kong Holdings probably hasn't even laid a single brick."

He knew Cheung Kong Holdings and Hutchison Whampoa very well. In the past 20 years, they had acquired more than 200 plots of land in the mainland, but only a handful had been developed independently. Even those that were developed had an average development cycle of more than seven years. He knew that any cultural tourism complex would be a failed project just from the name.

Director Luo seemed to have been struck by a veil, sighed, and, abandoning all talk of this so-called complex, went straight to the point:
"We did put that piece of land up for auction before. Last year it was listed for HK$18.7 billion, but it failed to sell. We ended up having Cheung Kong develop it; there was no other way."

Chen Xuebing immediately shook his head: "Last year's conditions were so harsh, and the developers had to be responsible for the management costs. It was also residential land, so of course it failed to sell for 18.7 billion. If it were put up for auction under the current conditions, I guarantee it would exceed that price."

“This is a project that Cheung Kong Holdings worked on for a year. They negotiated the terms and conditions, and they also issued the land inspection report.”

"Hehe, I'll pay them the market price for the land testing fee, five million, is that enough? If not, I'll give them ten million! This isn't a reason for us to give them the project. Director Luo, if you don't accept my report, I'll report it to higher authorities."

"Don't be impulsive. Chengdu has been talking to them about this for a long time. Let me ask them for you, okay?"

Chen Xuebing firmly stated, "Director, please don't act as intermediaries. I will not accept any form of negotiation; I will only accept the auction."

"Hey." Director Luo also felt a headache coming on. "Go ahead and report it! You still have the money to bid for this land? Let me tell you the truth, Vanke and China Overseas have both come to us about this land. Even if we put it up for auction, you'll have to prepare a lot of money. You might end up doing all the work for someone else."

"Oh? It seems someone has gotten ahead of me? Since these two are also eyeing it, haven't they offered any suggestions?" Chen Xuebing chuckled.

“I’m not sure about that. They’ll probably stick to negotiations.” Director Luo thought for a moment and then added, “The competition for land doesn’t necessarily have to be done this way. I suggest you wait. What if they reach an agreement with Chengdu and put it up for auction? Wouldn’t that be a bloodless victory for you? You don’t need to offend Hutchison Whampoa and Cheung Kong Holdings like this.”

Both Huang and Changshi are backed by the same person, but Director Luo didn't want to make it so obvious.

Chen Xuebing laughed: "Negotiation? What's there to negotiate? I've offended capitalism! I'll report this!"

"Alright, alright, if you're really determined to do this, come see me in a couple of days."

"Okay, thank you for your help, boss."

Chen Xuebing hung up the phone, thought for a while, then picked up the phone again and called Cai Zhijian.

"Old Cai, have you got any ideas about the matter I asked you to investigate? What do you think are the possibilities?"

There's something he can't figure out these past few days.

Li Ka-shing is not the kind of person who would disregard business interests for the sake of face. Although he has been trying to provoke the other party in preparation for his trip to Hong Kong after the New Year, the key to provoking the other party should still be the land in Tsing Lung Cheong.

Cheung Sing had already negotiated many favorable terms for that piece of land. If he were to report it now and take control of the land, it would be a true act of offending them.

He hasn't even made a move yet, and the other party is already trying to snatch his land at a high price just because of a few provocative words?
This land comes with conditions: it must be developed within six months and a pre-sale permit must be obtained within one year.

If Hutchison Whampoa were to develop the project itself, it wouldn't be worthwhile if Chengdu's housing prices didn't surge. Hutchison Whampoa hasn't done much construction in Southwest China, and its cost advantage in construction is not as good as that of its parent company, Ang Lee.

Gu'an secured its supply chain by leveraging the scale advantage of Sichuan's large-scale development, and it designed and built the project itself, making its costs far superior to those of ordinary real estate companies, and even more so to the outsourcing model used by Hong Kong businesses.

If they want to resell, they must do so within one year.

Could it be that the other party, like him, has a clear understanding of the future trend of the Chengdu land plot?
He's a reincarnated person! The other party... can't possibly be that powerful, right?

(End of this chapter)