"Okay, let's go for it. This is the time when the risks are the greatest and the rewards are the greatest. If you use leverage to purchase land or properties on a large scale, you can easily earn several times the bet if you win." Chen Tianfu nodded and said.
Chen Zhiwen smiled and said: "During this period, Cheung Kong Holdings and Sun Hung Kai have been absorbing a large amount of land. Their vision is not bad. We don't need to understand the details of the market. We can just keep an eye on these people."
Chen Tianfu said: "That's true. You can't go wrong by following them. Aren't you going to buy the bottom?"
"I am also prepared to buy at the bottom, but not for land." Chen Zhiwen shrugged and then revealed his plans to acquire Yonggao.
"Okay, I know you are discerning and look down on those mediocre plots of land." Chen Tianfu laughed and said. He has often chatted with his son in the past six months, and he also feels that his son seems to be very ambitious and is not on the same level as him. , but I didn’t expect that he would directly prepare to acquire the Central Building.
Chen Zhiwen said: "Dad, from now on, we can borrow large amounts of money, but we must lock in the loan interest rate."
"Why lock in interest? Isn't it safer to follow the market?" Chen Tianfu asked.
Chen Zhiwen replied: "Because of the oil crisis, European and American countries have fallen into recession. Even if OPEC restores production capacity, the era of low energy prices is over. This will inevitably trigger large-scale inflation in the next few years. Under normal economic logic, , serious inflation will definitely lead to interest rate hikes.
Once the U.S. raises interest rates, dollars around the world will flow back, and the currencies of other countries will depreciate. The only way to deal with this is to raise interest rates to retain funds. The Hong Kong dollar will raise interest rates regardless of whether it is denominated in the U.S. dollar or the British pound. We now lock in the interest rate, so It is equivalent to transferring the risk. "
"I don't understand." Chen Tianfu was very honest. Although he was doing well in the business world, his understanding of macroeconomics was still insufficient.
"Anyway, just trust me. The Hong Kong government has raised interest rates four times this year. Interest rate increases will definitely be the norm in the future." Chen Zhiwen shrugged.
The collapse of Hong Kong stocks this year is due to natural economic factors and the Hong Kong government’s interest rate hike. The most fundamental logic is that a large amount of funds fled during the stock market crash and were converted into dollars and pounds. This put great pressure on the Hong Kong government’s foreign exchange reserves. , in order to retain funds, we can only raise interest rates multiple times, and raising interest rates will inevitably cause the stock market to plummet, and funds will want to flee, forming a death spiral.
Then came the oil crisis, which dealt a heavy blow to Hong Kong's economy. Fortunately, in March 1974, the oil crisis ended and global market confidence was restored. However, high oil prices became a fact. Inflation exploded in Europe and the United States and they were forced to raise interest rates. Naturally, small places like Hong Kong had no choice but to follow suit. What happened years later was similar.
In 1980, the highest loan interest rate in Hong Kong was as high as 20%. Shipping king Pao Yugang forcibly acquired Wharf and borrowed 2 billion from HSBC. He sold the property within a year and paid it back. The interest rate was too high. , few industries can bear it.
Had it not been for the various good news in the northern mainland that stimulated the Hong Kong property market, it is estimated that the real estate market would not have taken off at the end of the 1970s.
"Okay, then I'll listen to you." Chen Tianfu nodded. As long as the real estate market recovers, even if the interest rate drops in the future, the land bought at a low price will still make money. It's just that you make more money but less money.
...
After spending Christmas and New Year's Day at home, time entered 1974.
On January 8, Chen Zhiwen made an appointment with Shen Bi and held a banquet for him at the Mandarin Oriental Hotel.
"It's such a sumptuous meal for the two of us. Isn't it too wasteful for the two of us to eat it?" After entering the luxurious private room, Shen Bi couldn't help laughing when he saw more than twenty dishes on the table.
Chen Zhiwen stood up, smiled and stretched out his hand: "Mr. Shen Bi, a real Manchu-Han banquet requires 108 dishes. Hong Kong's capabilities are limited. Otherwise, I will definitely raise them to entertain you."
"You're welcome, Mr. Chen." Shen Bi was also very satisfied. Although the young man in front of him was young, after several exchanges, he found that he was very knowledgeable and his predictions on the stock market and real estate were also very accurate. In addition, a previous stock market meeting Investment has made him worth hundreds of millions, and when he is so young and so successful, he is not arrogant at all, not only for him, but also for many other people. This is very rare. It can be said that he is very optimistic about Chen Zhiwen's future in Hong Kong s future.
"Please take a seat." Chen Zhiwen said with a smile.
After the two sat down, the waiter came forward and poured thousands of Hong Kong dollars worth of French red wine into their glasses, and then exited the private room.
"Good wine." Shen Bi took a sip and said thoughtfully.
"As long as Mr. Shen Bi likes it." Chen Zhiwen smiled and said, "I have ordered a few boxes from France, and I will arrange for them to be delivered to Mr. Shen Bi's residence."
"That's not necessary. Accepting such an expensive gift is always risky, and it's unnecessary." Shen Bi shook his head gently and refused.
"Okay." Chen Zhiwen is not pretentious. No matter how expensive the red wine is, it is just an external possession, and the meaning contained is the most important. Shen Bi is not yet the bank's chief executive, and there are other candidates for the next chief executive. In a century-old enterprise like HSBC, there must be internal factions There are a lot of them, and it may not be a big deal if you accept the ones that are too expensive, but there is no need to take such a risk.
Shen Bi said: "Chen Sheng, the Global Electronics you want to acquire, Huiduoli, has already been negotiated with the other party for HK$5.5 million."
"It's so quick to gain more profits!" Chen Zhiwen said with some surprise. His previous subordinates had also contacted Global Electronics, but although they did not completely reject his side, they always ignored him and delayed many things. I didn't expect HSBC to be so fast. It took less than a month to get it.
Shen Bi smiled and said: "The boss of Universal Electronics is old and actually has plans to retire. In addition, business is not good during this period, and they also owe a lot of loans to HSBC. According to our contract, they need to increase For collateral, this requires a lot of investment, but they can get a sum of money after selling the company. From time to time, they naturally understand the choice. "
"So that's it." Chen Zhiwen nodded and said, HSBC's intervention is indeed a great pressure for manufacturing companies that are not doing well and rely on long-term order loans.
The boss of Global Electronics probably also wants to get rid of it, but before the people from Galaxy went there, they didn't know the details and didn't dare to make casual decisions. But when HSBC came forward, it was different. This was a golden sign.
"Did Chen Sheng pay all this money himself or get a loan?" Shen Bi asked.
"How about a loan?" Chen Zhiwen laughed and said. Although it is not much, the rules for inviting HSBC to acquire a company must still be followed. When HSBC acquires a company, in addition to charging handling fees, the funds for the transaction are usually HSBC loans, and even in the future The same goes for many of our projects, which actually means hello to me and hello to everyone.
"Then let's follow the old rules, 30-70 points." Shen Bi said nonchalantly. He didn't care about millions of Hong Kong dollars. 30-70 points means that the third party will pay for it, and 70% is an HSBC loan.
Chen Zhiwen then asked: "Mr. Shen Bi, how is the matter with Yonggao?"
PS: It’s still dark and ready to enter the top 16 finals!
