Reborn in America, I'm serious about making money.

Chapter 156 Hong Kong Blood Donation Machine

Zhang San is a good student, so naturally he learns from the big shots. This is also the reason for Lihua Group's operation this time. It's too aggressive. They actually carried out rights issues to raise funds one after another. After completing this rights issue, Lihua Group will raise more than HK$80 billion.

When it comes to big names who raise capital through rights issues, Li Ka-shing is the one to mention.

Before the global stock market crash in October 1987, several listed companies under Li Ka-shing's control, including Cheung Kong Holdings, HK Electric, and Hutchison Whampoa, raised more than HK$10 billion through rights issues. That was HK$10 billion in 1987.

In September, shortly after the rights issue was completed, in mid-October, a global stock market crash occurred. Following the crash, while other stock markets in other countries actively took measures to rescue their markets, the Hong Kong Stock Exchange suspended trading for four days.

After the market reopened, it crashed. Li Ka-shing then announced his willingness to spend money to buy back the stocks and rescue the market, which became known as the 10 billion yuan bailout plan.

Well, Zhang San had been envious of this method of using investors' money to buy back stocks at a low price for a long time, and he wanted to do the same. However, he was even more ruthless, naturally using various forms of financing.

However, the current positive real estate market makes Zhang San's advantages even more obvious.

Lihua Group has a total share capital of nearly 32.5 billion shares. On the last trading day after announcing the financing, the stock price was HK$32.5, and the share price has fallen somewhat.

If calculated based on a 10-for-5 rights issue, this financing amounted to HK$501 billion, and the total share capital after the financing will be 48.75 billion shares.

"Hong Kong's blood-sucking machine has drained HK$500 billion."

"A stock market harvester, raking in 50 billion."

"A staggering 50 billion yuan in financing has shocked the entire audience."

"Shocking! Lihua Group actually did such a thing."

"Greatsword, cut off half the health."

"The Double 325 brand water pump drained 50 billion from Hong Kong."

While the whole of Hong Kong was laughing, Lihua Group issued an announcement: it has completed a financing of HK$40 billion, and the financing is basically completed. After this financing, shareholders holding more than 10% of the shares will not reduce their holdings within six months.

This is good news; no reduction in holdings is expected within six months.

The rapid arrival of the HK$40 billion in financing led many investors to start contributing funds for the rights issue, completing the fundraising amidst the stunned expressions of Hong Kong residents.

As a result, the share price of Lihua Group rose again, reaching HK$34.1. Those investors who had completed the rights issue began selling their shares on the market, earning more than HK$3 per share. Suddenly, many people realized that those who had completed the rights issue had made a fortune.

Something shocking happened to many Hong Kong investors: Lihua Group issued another announcement. One was that it had completed its rights issue and that, due to the funds being used for acquisitions and the need for loans, it was unable to distribute cash dividends at the moment. However, it could issue bonus shares, a 10-for-10 bonus share distribution. After the bonus share distribution, the total share capital would be 97.5 billion shares, and the price after the ex-rights date would be HK$17.1 per share.

Lihua Group's market value reached HK$1667.25 billion, making it a force to be reckoned with in Hong Kong.

Based on market capitalization, Zhang San actually holds 80% of the shares, amounting to HK$1333.8 billion, but most of these are insider trading.

On the surface, NT-MS Group holds HK$416 billion, while the other major shareholder and actual controller, Zhang San, has total assets of HK$441 billion.

"Third Brother, I saw the news online. It says that the Lihua Hotel is now worth HK$1667.25 billion."

Chai Xiaofen ran over in surprise, carrying her son, to share the good news with Zhang San; but Zhang San seemed nonchalant, laughing and saying, "It's all just paper wealth, it can't be relied upon."

"Tch, what a load of rubbish!"

Guan Meiren just couldn't stand Zhang San's attitude, thinking that he was just bragging.

"You're doing really well! Your funds, insurance, and investments have all increased in value. They're almost HK$300 million now, and you even get dividends every year."

"Hmph~"

She didn't want to talk anymore. She had heard that the company in Shanghai, mainland China, had also appreciated in value. That skyscraper, supposedly, had appreciated a lot in value.

He Meitian, heavily pregnant, swayed as she walked over; she looked like she was about to give birth.

"What are you doing here? Be careful of your stomach."

"I heard you made a fortune again, so I came to see you."

"It's just a small amount of money, paper wealth," Zhang San said with a smile, very modestly.

"However, I've seen many people say that there are risks involved in what you're doing."

"What risks?" Zhang San asked, somewhat puzzled. He continued, "This money is reasonable, legal, and compliant, and it's interest-free. What risks could there be? Stephen Supermarket, oh, now called Beautiful China Supermarket, what risks could it have? It has no foreign debt, it doesn't break the law, and it's even one of the most tax-paying companies in mainland China."

Zhang San continued, "There are always some losers who get jealous of others and want to badmouth the stock market." He thought for a moment, then said, "I'll have someone write an article to refute them."

Soon after, articles praising Lihua Group appeared on Hong Kong's internet, in newspapers, and even on major websites and financial newspapers around the world.

"Lihua Group owns cash cow BCSM (Lihua Supermarket), Lihua Hotel, Lihua Express Hotel, and Lihua Property Management. It also has a large number of properties for rental income. Xiangjiang Real Estate is on the rise."

"Lihua Group's acquisition of BCSM amidst fierce competition can be considered a victory. BCSM has an annual revenue of at least 70 billion RMB, and this revenue will continue to grow given the rising living standards in mainland China. Moreover, BCSM established its presence in mainland China earlier, giving it a first-mover advantage."

"Lihua Group has many high-quality assets. In terms of property alone, according to the current valuation, the value of its properties in Hong Kong is close to HK$100 billion. This does not include assets outside Hong Kong. If those are included, the total assets are even more staggering."

Golden Globe Group's Hong Kong branch has given Lihua Group a buy rating and announced that it will increase its holdings in Lihua Group.

Lihua Group released its 1996 financial statements, projecting a 60% increase in revenue for the year. The company also stated that it would not purchase any other assets before 1998.

"Lihua Group is a good stock. It can weather the storm, digest its existing assets, and will definitely become a better company in the future."

A Hong Kong stock commentator made this assessment, which resonated with many retail investors.

The stock price also rose to HK$18, attracting even more attention.

Zhang San also felt some pressure. If he sold his stocks now, he would probably make a fortune, but it wouldn't be easy to sell. Would there be enough retail investors willing to take over?

But it doesn't matter, we can go long on stock index futures now.

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