Rebirth: The Era of Hong Kong Tycoon

Chapter 151 [Hengda's actions]

When Lin Rongheng came to HSBC, Sanders and Shen Bi received him in the office, which shows that HSBC attaches great importance to Evergrande Real Estate; in terms of assets, Evergrande Real Estate is the leader among Chinese real estate companies, and its development potential is even closer to settlement.

In the eyes of HSBC, although Lin Rongheng is very aggressive, but he has stock support and backed by a US-funded consortium, so the risk is relatively small; in addition, Evergrande Real Estate has increased its property assets by as much as 30% to 40% in the past year since its listing. %, again reducing the risk.

At present, the debt owed by Evergrande Real Estate to HSBC has reached as high as 5000 million Hong Kong dollars, of which 2000 million Hong Kong dollars are mortgaged by 300 million shares of stocks, and 3000 million Hong Kong dollars are mortgaged by several lands.

Evergrande Real Estate’s largest debt bank is Citigroup, with a debt of up to 1 million Hong Kong dollars; if it borrows another 5000 million Hong Kong dollars from HSBC this time, then Evergrande Real Estate will have the two largest debt banks.

After Lin Rongheng sat down, Sandas's assistant made a cup of tea for Lin Rongheng, and then left the office, leaving only Sandas, Shen Bi, and Lin Rongheng.

Sandas said, "Mr. Lin does not go to the Three Treasures Hall for nothing. Which company do you come to HSBC this time for a loan?"

As a large debtor of HSBC Bank, Lin Rongheng's properties have been settled by HSBC Bank, and some normal financial investigations have been conducted; therefore, HSBC Bank has no reason not to know the prospects of Lin Rongheng's properties; and for Lin Rongheng's personal ability, HSBC Bank is more It is listed as a key cooperation object, second only to Bao Yugang, the ship king.

Lin Rongheng said with a smile: "Evergrande Real Estate needs to make an investment, and plans to borrow 5000 million Hong Kong dollars!"

Hearing this, both HSBC were surprised!
A loan of 5000 million Hong Kong dollars is definitely a top-level existence among Xiangjiang Chinese companies. Few banks dare to lend so much at one time; With a loan of 1500 million Hong Kong dollars, it was said that he had a strong background.

Shen Bi immediately asked: "Are you doing real estate acquisitions? But as far as I know, Evergrande Real Estate has suspended the purchase of properties in the past half a year or so, and concentrated on developing existing sites; moreover, real estate has now risen to a very high level." If you invest in real estate now, the risk will increase!"

Lin Rongheng said with a smile: "Although I am not a real estate lender, I have to correct one of Mr. Shen's mistakes, that is, real estate never has a high point, only a higher point! I have my own philosophy of buying land: people always Complaining that today’s house prices are too high, I become cautious in buying properties, but I don’t know that 10 years later, I found out that the price was too high, but now it is too low. I missed that opportunity, and I can only complain and regret afterwards.”

As a real estate developer, Lim Rong Heng must of course show the potential of the real estate to the bankers, so that they can let go of their worries and grant loans.

When the two HSBC heard Lin Rongheng's 'land buying philosophy', although the bankers were cautious, they would not be ambiguous, but they couldn't come up with a reason to refute.

Sundas returned the topic to the main topic: "Mr. Lin does not engage in real estate cooperation, is it because he intends to diversify the development of Evergrande Real Estate?"

Lin Rongheng said directly: "No! Evergrande Real Estate intends to hold spot gold and make a long-term investment! Considering that our real estate will continue to withdraw funds, this loan only needs half a year, and it is a short-term debt."

gold?

Hearing that Evergrande Real Estate was going to invest in gold, Sandas and Shen Bi were relieved. Gold may not rise much, but it is basically impossible for it to fall much.

And Lin Rongheng has made up his mind to use the stock mortgage loan of 5000 million Hong Kong dollars to hold gold, and then use the gold as a mortgage of 5000 million Hong Kong dollars. Evergrande Real Estate also invests in some stocks.

In this way, the conservative profit can be as high as 5000 million Hong Kong dollars, which will greatly increase the strength of Evergrande Real Estate and reduce the debt of Evergrande Real Estate.

Shen Bi asked, "What does Evergrande Real Estate use as collateral?"

It is normal behavior for loans to be mortgaged. Lin Rongheng was naturally not surprised, and said directly: "The current stock price of Evergrande Real Estate has risen to 12.1 Hong Kong dollars per share, how about using 500 million shares as collateral?"

Starting from late July, the Xiangjiang stock market swept away the bald waste in the first half of the year and began to climb; from 210 points in mid-July, the Hang Seng Index has risen to more than 230 points in half a month.

The stock of Evergrande Real Estate is naturally the vanguard in the stock market, with an increase of as much as 20% in half a month.

Sundas readily agreed that Evergrande Real Estate's stock is more popular than cash. The 500 million shares are worth 6000 million Hong Kong dollars, and naturally they can borrow 5000 million Hong Kong dollars.

After Lin Rongheng left.

Shen Bi fell into deep thought in Sanders' office, before saying for a long time: "Will gold go up so much? This Chinese has always had a good eye."

Sandas said with a smile: "Maybe! The U.S. dollar and gold are untied, and gold is no longer static. From the initial $35 per ounce, it has now risen to more than $40 per ounce. However, we are a bank. It is the main business, and there is no need to worry about the rise and fall of gold."

In later generations, Xiangjiang, London, New York, and Zurich were listed as the four major gold markets in the world. It can be seen that Xiangjiang's gold market is huge; Xiangjiang's gold imports will increase year by year. In the first half of 1971, 30 tons of gold (106 million ounces) had been imported. Worth 2 million Hong Kong dollars.

Because Xiangjiang is a tourist city, and it is a free economic and trade port, the tax is extremely low, so the price of gold jewelry is much cheaper than most countries, and the purity is so high that it naturally attracts tourists to buy it.

Tourists from Japan, Taiwan, Southeast Asia, South Korea and other countries will basically buy a little gold jewelry to take home when they travel to Hong Kong; otherwise, how could such a small population in Hong Kong absorb so much gold.

The Hong Kong Gold and Silver Trading Market, located in Masha Street, Hong Kong Island (Main Island), was established in 1910. There are nearly 180 member firms. It will gradually become one of the four major gold markets in the world; the gold traded in this market is 99.9% pure Therefore, it is also known as the 99 gold market; the weight of gold transactions here is in units of taels, and the quotation unit is Hong Kong dollars.

Lin Rongheng came to the Xiangjiang Gold and Silver Trade Fair, met with five reputable gold merchants, bought 40.8 tons of gold at a price (converted) of US$2.5 per ounce, plus a commission of 6.8 points, and sent them to five banks. deposit.

Then, they used the gold to borrow another 5000 million Hong Kong dollars. Because it was in the name of Evergrande Real Estate, there was no need to borrow at a discount.

Evergrande Real Estate.

Lin Rongheng called He Rui to the office and said, "You will be fully responsible for Evergrande Real Estate's participation in the shareholding, and cooperate with my Galaxy Securities Company. Mainly Renfuhang, Qingzhou Yingni, Junyi Warehouse, and Taikoo Dockyard , Swire Industries, Kowloon Bus, Hong Kong Tramways, Jardine Securities and other old British companies, they are also blue chips in the Hang Seng Index, with less risk! These companies own a lot of land, which alone is enough to support them Stocks go up!"

It is Lin Rongheng's strategy to only speculate in blue-chip stocks. In addition, in his previous life, he happened to have read the books on Xiangjiang stocks.

Of course, according to Lin Rongheng, these companies own a lot of land. With the boom in real estate, it would be a strange thing if the stocks of these companies do not rise.

He Rui nodded and said, "They are all good stocks! Qingzhou Yingni owns nearly one million square feet of land in Hung Hom, and the price of building materials and cement is gradually rising, so the stocks will naturally rise; Junyicang, Taigu Dockyard, Kowloon Buses, Hong Kong trams, and the land owned by these companies are similar to our Evergrande real estate land, but the market value is only [-] to [-] million Hong Kong dollars."

The two discussed for a while, and Lin Rongheng arranged again: "I will make an announcement to the market first, we will make an announcement about our investment in gold and the matter of stocks later."

As a listed company, it is natural to be subject to public scrutiny, but it is only a pre-emptive act; as for stock trading, it only needs to announce that the company is investing in stocks, and there is no need to elaborate.

He Rui nodded, and then left Lin Rongheng's office.

(End of this chapter)