"Loan in Japanese yen? They don't have any Hong Kong dollars on hand?" Chen Zhiwen asked with a thought.
Generally speaking, when doing business in Hong Kong, Hong Kong dollars are used. The same is true for overseas banks. However, overseas banks have no foundation in Hong Kong and cannot absorb enough Hong Kong dollar deposits. If they want to cooperate again, they need to use their own country’s currency. Exchange Hong Kong dollars.
Exchange rate fluctuations are a risk, and banks will also find ways to avoid this risk. Therefore, in many cases, they hope that borrowers will directly borrow their own currency. The risk of converting after borrowing is the borrower's and has nothing to do with the bank. Of course, Risks and opportunities coexist. If the Hong Kong dollar appreciates after borrowing, you will make money.
"It should be that Hong Kong people are still not used to depositing money in foreign banks, especially RB." Chen Tianfu nodded and said. Just last year, the Hong Kong government lifted restrictions on foreign banks establishing branches, which allowed many major international banks to When they come to Hong Kong to establish a branch, their purpose may not be Hong Kong, but they certainly don't care about doing business in Hong Kong. A small fly is still meat.
"It's not possible to borrow Japanese yen. Now that the international currency is unstable, I estimate that the Japanese yen may appreciate." Chen Zhiwen shook his head and denied.
He naturally knew about the most famous Hiroshima Agreement in later generations, but he did not know about the Japanese yen exchange rate in the 1970s. However, because the United States had just abolished the Bretton Woods system, the U.S. dollar began to depreciate significantly, and the Hong Kong dollar was anchored to the U.S. dollar. Compared with other currencies, it was naturally It will also depreciate. At this time, the best choice for borrowing is Hong Kong dollars and US dollars. Japanese yen and European currencies cannot be borrowed. For example, Hutchison Whampoa Group, which is about to be hit by thunder next year, has a large foreign debt in Swedish currency, resulting in huge losses due to the rise in foreign currency exchange rates.
"That's a pity. The banks here in Hong Kong are not as courageous as the employees of this small RB bank." Chen Tianfu said with some pity.
"It's not my own money, so of course I don't care. Anyway, if you win, you'll get a bonus. If you lose, just leave." Chen Zhiwen smiled and said, RB's corporate culture is based on the company as its home, but this is only for ordinary social animals. , Real senior people will never say that they will stay in a company forever, especially those in finance, who themselves seek wealth and wealth through insurance.
In this era, there is no Internet and no surveillance. The loopholes in the banking industry are very big. Banks stationed abroad are so high and far away that the headquarters does not know if they do anything illegal. For example, the most famous Bahrain Bank was tricked by a small employee in Singapore. destroyed.
"But RB Bank has nothing to do if it doesn't have Hong Kong dollars." Chen Tianfu also understood what his son meant, but no matter how bold the RB Bank staff were, they couldn't change the money into Hong Kong dollars.
"Actually, we can absorb Hong Kong dollars ourselves." Chen Zhiwen suddenly said.
"We absorb it ourselves? You want to open a bank? But the money for opening a bank cannot be used to help us do business. This is against the law." Chen Tianfu reminded.
Hong Kong's financial market is relatively free. As long as you have money as a deposit, you can open a bank. However, the deposits collected by the bank cannot be used for other business of bank directors and senior executives. This is a lesson learned by the Hong Kong government with blood and tears. In the 1960s, many banks took They used their depositors' deposits to speculate in properties, stocks, real estate, and trade. As a result, the market went down, and many banks lost all their money, triggering a run on depositors. If the Hong Kong government and HSBC had not joined forces to suppress the panic, Hong Kong's economy would have It will definitely be hit hard.
"I know this, so instead of opening a bank, we can open an investment fund company." Chen Zhiwen said with a smile: "The price is clearly marked, and we give investors higher interest rates than banks. They invest their money in us and make money in the future. If we give them the principal with interest, won’t the rest belong to us?”
"Is this a bit like those loan companies?" Chen Tianfu said with a frown.
Chen Zhiwen nodded and said: "It seems a bit similar, except that they are doing loan sharking, and we are doing normal investments. The nature is different. It may be more similar to bonds issued by listed companies."
"That's okay. Then after we collect the money, we will continue to invest in industrial real estate?" Chen Tianfu asked. During this period, he has spent most of his money investing in industrial real estate and bought many industrial buildings and stratified properties. Industrial real estate, and as far as he knew, his son's company bought more industrial real estate. Both father and son borrowed money from banks to buy industrial real estate.
"Yes, buy all industrial real estate, but you can also buy some B-type official documents in exchange for land certificates. Just like before, just take care of it." Chen Zhiwen replied.
The total market size of industrial real estate is much smaller than that of the residential and commercial real estate markets, but one of its benefits is that industrial real estate is not only related to Hong Kong's economy, but also to international economic development.
The entire Hong Kong real estate market began to slowly recover at the end of 1975. It also increased throughout 1976, but the fluctuations were not very large. It was not until 1977 that it began to make great progress. But industrial real estate will recover by the end of 1974, as the global economy begins to emerge from the shadow of the first oil crisis. At the same time, the electronics industry begins to explode globally. Although Hong Kong's industrial development speed is not as fast as that of neighboring Bay Area and South Korea. , but the huge incremental market has made Hong Kong’s electronics industry full of fat.
By 1977, the value of industrial real estate will more than double that of 1974, and rents will also more than double. Historically, the Great Eagle Group relied on hoarding industrial real estate in the past two years, and then resold it in 1977. He made a profit of HK$400 million, which was the foundation for him to become one of the top ten real estate groups in Hong Kong in the early 1980s.
Also rising rapidly is the second type of official letter exchanging land certificates. The price of this thing rises faster than real estate, because it is a representative of real estate confidence and represents future value. It is difficult to hoard land, but it is easy to hoard and exchange land certificates. It is much simpler, and a large amount of small amounts of hot money can also enter the market, which naturally makes it easier to push up its price.
"Okay, I'll set up an investment company to collect deposits. Should you set up another one yourself or join a joint venture with me?" Chen Tianfu thought for a while and asked.
"Let's do a joint venture. The investment company needs connections, so I'd better forget it." Chen Zhiwen said that his most important thing at the moment is to lay the foundations of Midea and Red Bull first. Fedmart and Costco in the United States also need to be established as soon as possible. Obtain cheap supplies from Hong Kong, as well as plans for Wharf and Hutchison Whampoa in the future.
"Okay, then the shares will be half and half. We want to rent a good location in Central. The area should be larger and the decoration should be better. Only in this way can people believe in our strength." Chen Tianfu got to the point, reluctant to let his children trap the wolf. The money that needs to be spent must be spent so that people can save money.
"If you can't rent, you have to buy. If you put the real estate certificate in the center of the store, it will be more convincing." Chen Zhiwen said with a shrug.
"That's true." Chen Tianfu nodded. The property in the Central Center is indeed very convincing. It is much better than the deception with thousands of words...
