On September 1, the Hang Seng Index closed at 7362.47 points, down 212.57 points, or 2.81%, with a turnover of HK$9.2 billion.
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On September 2, affected by the Dow Jones Index's surge of 3.8%, the Hang Seng Index opened more than 200 points higher and closed at 7,655.67 points, up 293.20 points, or 3.84%, with a turnover of HK$10.5 billion.
Volume surge!
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"Mr. Zhuang, happy cooperation!"
"Mr. Sun, happy cooperation!"
On the morning of September 4, Sun Jian and Wang Dongming arrived at the headquarters of Nanyang Commercial Bank in Central and signed a formal agreement to transfer the unfinished building of Dewang Center with Mr. Zhuang Siping, the chairman and legal person. The transfer price was HK$1.58 billion. Floor space square feet.
At a luncheon held by the Hong Kong government on August 29, Mr. Zhuang approached Sun Jian and thanked him for his outstanding contribution in the Hong Kong financial defense war. He was willing to turn this unfinished building with huge commercial value into The market price of HK$1.58 billion was transferred to him, so that the money would not flow to anyone else and in order to revitalize the bank's assets.
In the first half of 1998, Xiangjiang's GDP decreased by 3.9%, the unemployment rate rose, and imports and exports fell by 3.1%. Xiangjiang's exports were first hit by weak import demand from Japan and Asian economies ravaged by the financial turmoil.
The Hong Kong dollar was hit by speculation, causing interest rates to soar and asset prices to plummet. In the first half of the year, total deposits increased by only 1.7%, local loans fell by 5.5%, and overseas loans fell by 36.7%, reflecting weak loan demand and banks pursuing prudent lending policies.
The Hong Kong dollar loan-to-deposit ratio in the banking system dropped sharply from 113.3% at the end of 1997 to 97.6% at the end of June 1998.
Factors such as sharp declines in asset prices, uncertain employment prospects, increasing downward pressure on wages, and high real interest rates have led to a decrease in local consumer spending, with private consumption spending falling by 6.8%.
In addition, there are signs that more and more people are going to the Mainland for consumption instead of spending in Hong Kong because of the lower prices in the Mainland.
Residential and property prices have fallen by 44%, and the number of building sales contracts has also dropped by 60%. Compared with the high housing prices in May last year, today’s housing prices are at a bargain price. 95,000 Xiangjiang households have become negative equity and have no money to spend. Don’t dare to consume either.
The local economy is in a state of deflation.
Now in Hong Kong, land and real estate prices have entered a second wave of decline after rebounding. Under the pressure of international speculators, the Hang Seng Index rebounded to 7,650 points after plummeting, fluctuating around 7,650 points. There is a lot of uncertainty, investors lack confidence, and the daily trading volume is less than 100 points. billion Hong Kong dollars.
Cash is king!
There are not many local bosses who have taken out HK$1.58 billion in cash at once.
Sun Jian agreed on the spot without saying a word.
The 87-year-old Zhuang is a respected elder whom Sun Jian admires. He is one of the first 12 people to receive the Grand J Gold Medal.
When the People's Republic of China was founded, the leader personally appointed Zhuang Siping to take over the Kuomintang's financial industry in Hong Kong. He took over the old Bank of China building in Hong Kong Central today and established Nanyang Commercial Bank. Under his leadership, Nanyang Commercial Bank was transformed from the original Established with loans, it became the first institution in Hong Kong to raise the national flag of the Republic of China, and played an important role in the recovery and construction of the New China's economy. By the 1970s, its assets ranked second in the Bank of China system in Hong Kong.
Mr. Zhuang also spared no effort in formulating the policies and regulations of the Pengcheng Special Economic Zone. He is highly respected in the overseas Chinese community and the financial community. He has long served as a member of the Political Standing Committee, Vice Chairman of the Overseas Chinese N and Honorary Chairman of the World Chinese Federation and other important positions.
He was steadfast in patriotism, sincere in love for Hong Kong, deep in love for his hometown, honest and simple. He worked hard and made significant contributions to the prosperity of the motherland, national rejuvenation, Hong Kong's return, prosperity and stability throughout his life. In his previous life, after Mr. Zhuang passed away, a public funeral was held. Chief Dong and Li Chaoren and a group of other big shots helped the spirit bid farewell.
The unfinished building of Dewang Center is located in Yau Tsim Mong District, close to a bird's-eye view of Victoria Bay. Dewang Real Estate Group acquired this commercial land at a high price of HK$1.865 billion and plans to invest HK$12 billion to build four 28-story residential buildings and a The 55-story Dewang Hotel uses the shares of Dewang Real Estate Group as collateral and borrows HK$2 billion from Nanyang Commercial Bank as start-up capital. It plans to lay the foundations of four commercial and residential buildings before selling off-the-plan properties and then use the down payment. The money was used to build four commercial and residential buildings, and the money from the sales was used to build the Dewang Hotel.
Developers go from acquiring the land to pre-sale, and then buyers pay the down payment. This is the so-called "off-the-plan property".
When the real estate market is good, developers can easily accomplish 100% of the work with 25% of the start-up capital and make a lot of money.
As soon as the foundations for the four residential buildings were laid, the property market and stock market in Hong Kong plummeted. The surrounding second-hand housing prices fell to more than HK$40,000 per square meter. The share price of Dewang Real Estate Group plummeted, the market value shrank significantly, and the collateral shrank severely. Nanyang Commercial Bank After the agreement was reached, Dewang Real Estate Group began to press for loans or replenishment of mortgages. Dewang Real Estate Group was unable to continue building buildings and had to transfer the land and properties to Nanyang Commercial Bank. It still owed the bank HK$835 million and suffered heavy losses.
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"Mr. Gao, the economy in Xiangjiang is still in recession now. Building materials and labor costs are cheap. Mr. Gao took the opportunity to hoard some building materials and seize the time to build the four commercial and residential buildings in Shunyuan Garden Center first. After capping them, they can sell off-the-plan buildings. .”
"Okay, Chairman!"
On the morning of September 5, President Gao Fuming and Executive Vice President Liu Quanyou came to the door with construction plans and progress plans.
Gao Fuming learned the good news immediately and obtained the planning and design drawings transferred together by Dewang Real Estate Group. The whole company worked together overnight to formulate construction plans and progress plans.
They had been taught Chairman Sun's shrewdness many times and were in awe of him. When others were crazy, he would withdraw and when others were afraid, he would come in.
Sanxin Real Estate Group has been busy with the 12 billion Hong Kong dollar project for three years. Gao Fuming and Liu Quanyou laughed from ear to ear and immediately applied to the Hong Kong Stock Exchange for a trading suspension of Sanxin Real Estate Group's shares. There will be major events Announce.
Dewang Center was changed to Shunyuan Garden Center, and Dewang Hotel was changed to Shunyuan Hotel.
Don’t let the rich water flow to outsiders!
In terms of business, htIc is now only the largest shareholder holding 45.8% of Sanxin Real Estate Group. As an investor, htIc has invested HK$3.58 billion in advance. Sanxin Real Estate Group, as the contractor, plans to complete Shunyuan Garden Center within three years. The construction will then be handed over to the property management company affiliated to Sanxin Real Estate Group.
Mainland and local people in Hong Kong differ not only in language and customs, but also in culture and management concepts.
Shunyuan Sanxin Real Estate Company, a Sino-foreign joint venture established in June last year, is currently building a 75-acre Shunyuan Garden Community in Nanshan District, Pengcheng.
Shunyuan Real Estate Group and its subsidiary Shunyuan Real Estate Corporation do not enter the Xiangjiang real estate and property market.
