Rebirth: The Era of Hong Kong Tycoon

Chapter 164 [Stock prices skyrocketed]

Time flies, and it is June 1972 in a blink of an eye.

Since entering 1972, Heung Kong has seen constant good news, and the rise in the stock market has been wave after wave:
In February, the President of the United States broke the diplomatic routine and suddenly set foot in Beijing for a state visit. The news improved the Sino-US relations, which had been tense, and the international situation also experienced major changes. Stimulated by this good news, the Hong Kong stock market became more and more popular .

In May, the Hung Hom Tunnel, which has been under construction for many years, was finally officially opened to traffic. Since then, Hong Kong Island, which is separated from Kowloon by a sea, has been closely connected. Martial arts made great progress' and quickly grew up.

Both internal and external factors are positive, and the stock market has naturally soared. The Hang Seng Index has climbed from 340 points at the beginning of the year to 480 points. In just 5 months, the Hang Seng Index has risen by 40%.

Entering June, the price of gold has also risen from US$42 per ounce last year to US$68 per ounce; Lin Rongheng sold all the gold held by Evergrande Real Estate, and then returned funds of 8100 million Hong Kong dollars, making a net profit of 3100 million Hong Kong dollars .

At the same time, Evergrande Real Estate has withdrawn a total of more than 8000 million Hong Kong dollars in property development in the first five months; therefore, Evergrande Real Estate's liquidity has reached 1.63 million Hong Kong dollars.

Calling the Three Musketeers of Evergrande Real Estate, Lin Rongheng said: "Currently, the company has 1.63 million Hong Kong dollars in its accounts, so I decided to pay off the 1.5 million Hong Kong dollars in debt and reduce the company's debts to 2 million Hong Kong dollars."

The three nodded one after another, and everyone felt a sense of landing. The long-term high debt has actually been a bit of a drag on Evergrande Real Estate. After all, it needs to pay a lot of interest (average 12%) every year—about 4000 million Hong Kong dollars.

He Rui said: "The market value of the stock we invested in has already reached 1.22 million Hong Kong dollars, and we have made a full profit of 7200 million Hong Kong dollars. Can we close the position?"

Lin Rongheng shook his head, directly denied this opinion, and said: "Wait for the stock market, after all, our debt is only 2 million Hong Kong dollars, so there is no need to rush to pay it back; and the stock market is booming, now is not the time to close positions! Don't bother!" Forgot, this year we can withdraw at least 1 million Hong Kong dollars in property development, which is enough to repay some debts that are about to mature.”

Evergrande's debts were repaid in the second half of 1972, so Lin Rongheng was in a hurry to repay the 1.5 million Hong Kong dollars first.

When the three of them heard the words, they naturally chose to trust the boss's statement-the stock market will continue to rise, after all, the boss is the authority in this regard; as for the remaining seven months, it is naturally possible to withdraw funds of 1 million Hong Kong dollars; Evergrande Real Estate has withdrawn nearly 1.8 million Hong Kong dollars in funds for property development, with a profit of more than 1.2 million Hong Kong dollars.

The three are still in shock. In August last year, the boss said that Evergrande Real Estate would borrow 8 million Hong Kong dollars to invest in gold (Evergrande stock mortgage), and then used gold to mortgage 5000 million Hong Kong dollars to invest in stocks; At that time, the three of them were really sweating for the boss and the company. Everyone was confident in investing in real estate, but they were a little nervous about investing in stocks and gold.

Facts have proved that the boss really has the ability to "turn stone into gold". The investment of 1 million Hong Kong dollars has now become 2.1 million Hong Kong dollars, and Evergrande Real Estate has obtained a net profit of 1.1 million Hong Kong dollars; If it rises, it is far more than just making a profit.

He Rui nodded, pondered for a while and said: "Once the profit of more than 3000 million Hong Kong dollars from gold investment is announced, our stock will continue to rise."

What Lin Rongheng wants is for the stock to rise, he said: "It is a good thing for the stock to rise, and we will restart the issuance of new shares in the second half of the year; therefore, the higher the stock, the better!"

The stock of Evergrande Real Estate has risen to 25.3 Hong Kong dollars per share, an increase of only about 20.2% from the 25 Hong Kong dollars per share at the beginning of the year; Bonus shares are given out in rotation - 10 shares for 3 shares, and the stock price will naturally fall.

As a result, the total share capital has become: 7480 million shares, and the total market value has reached 18.9 billion Hong Kong dollars.

The high market value of Evergrande Real Estate can be described by Hongkong Land’s market value of only 25.3 billion Hong Kong dollars. The difference between the two companies is only 4.4 million Hong Kong dollars.Of course, in terms of net assets, Evergrande Real Estate is not as good as Landmark, but Evergrande Real Estate's stock is sought after by stockholders, and it naturally rises quickly.

The reason why it is sought after is also very simple. Evergrande Real Estate will regularly announce the sales of the properties it develops every month. In this way, shareholders can see the profitability of Evergrande Real Estate's business development.And Hongkong Land relies entirely on rent collection, so it is definitely not as profitable as Evergrande Real Estate!
On June 6, Evergrande Real Estate issued an announcement: The spot gold invested by Evergrande Real Estate has been sold, with a total profit of 6 million Hong Kong dollars, and a total of 3100 million Hong Kong dollars together with the principal; in the sale of off-plan properties in the first five months, Evergrande Real Estate returned The capital is 8100 million Hong Kong dollars.At present, the company has sufficient cash in its accounts, reaching HK$8200 million; after a unanimous resolution of the board of directors, Evergrande Real Estate will repay a loan of HK$1.63 million. After this debt reduction, the debt of Evergrande Real Estate is HK$1.5 million.

For a time, Hong Kong and Kowloon shook!

In Hong Kong, a company with an annual profit of tens of millions of Hong Kong dollars is already considered a large company; Evergrande has already made a profit of 3100 million Hong Kong dollars just by investing in a gold business. How awesome it is!Not only that, but the stock performance of Evergrande Real Estate in the first half of the year was not bad. The reason is that every building in Evergrande Real Estate is very popular, and the funds returned are huge.

At the same time, He Rui, executive vice president of Evergrande Real Estate, said in an interview with the media: "Affected by factors such as rising real estate, rising stock markets, and rising gold, Evergrande Real Estate is expected to make a profit of about 2.3 million Hong Kong dollars this year, which will equal HSBC. Bank profits in 1971."

As soon as this remark came out, the stock of Evergrande Real Estate was like a rocket launched, and it rose from 25.3 Hong Kong dollars to 28.6 Hong Kong dollars per share that day, a single-day increase of 13%.

Evergrande Real Estate's investment in gold and stocks has been announced to the public, and there is no violation of any regulations; on the contrary, Evergrande's announcement and news have stimulated the stock market and made the stock market even hotter.

This made Lin Rongheng ponder in the office, because of his appearance, there will definitely be some changes in the Xiangjiang stock market.

Of course, no matter how you change it, the general direction will not change.

For example, the highest Hang Seng Index in the previous life was more than 1700 points, and it will definitely be reached in this life;
For example, the stock market crash in the previous life started in March next year, so it is absolutely impossible for the stock market crash to occur this year; because of the original history, this year's Hang Seng Index is only 3 points, and there is still a distance of more than 860 points.

Lin Rongheng also believes in one sentence - not to make the last sum of money, so the stocks he holds are expected to start to slowly reduce their positions this year.

(End of this chapter)