Rebirth: The Era of Hong Kong Tycoon

Chapter 202 [Admission]

Time flew by, and it was early March 1974 in a blink of an eye.

In the past three or four months, the biggest thing that happened in Hong Kong was the "oil panic" and "high oil price". energy shortage problem.However, the six major oil companies in Europe and the United States still account for 11% of the supply of Xiangjiang Petroleum and its related products.

The six major oil companies in Europe and the United States announced at the end of November that the price of oil and related products will increase by 11%, making industrial production, commercial operations, and residents' lives even more difficult.

As for the stock market, affected by the oil crisis, the Xiangjiang stock market fell to 400 points on Christmas Eve last year, setting the lowest record after the stock market disaster; It rose to 482 points, making investors think that the stock market has reversed its disadvantages.

However, after the arrival of the new year, everyone was quickly overwhelmed by reality.Affected by a series of unfavorable factors such as high oil prices and the coming of the British Labor Party, the Hang Seng Index began to fall again.At the beginning of March (1974), the Hang Seng Index had fallen to 390 points, and it was likely to continue to fall.

In terms of real estate, since the stock market crash in March last year, it has experienced a year of real estate sluggishness. Land prices have fallen by nearly 30%, property prices have fallen by about 20%, and rents have dropped by about 15%.

Although Lin Rongheng knows that land prices will drop by 40%, property prices will drop by 30%-40%, and rents will drop by 20%, but considering Evergrande Real Estate and his own huge amount of funds, it is time to enter the market.

On June 3, Evergrande Real Estate.

Lin Rongheng summoned the Three Musketeers of Evergrande to discuss.

First of all, Lin Rongheng said: "The price of gold has risen to 170 US dollars per ounce, He Rui, go and liquidate all the gold held by Evergrande Real Estate; but remember, you must not move too much and cause too much market reaction."

He Rui nodded happily, and said, "No problem! With this rising trend, liquidating 15 tons of gold is like throwing pebbles into the sea, and there will be no big waves!"

This is true. Although Xiangjiang only imports less than 100 tons of gold each year, the transaction volume of spot gold is dozens of tons per day.

Lin Rongheng continued: "In this way, with a cash flow of more than 8 million Hong Kong dollars, we can buy the bottom of the real estate market! Think about it, what is the essence of this real estate crisis?"

The three of them pondered, and Wu Hao quickly replied: "The essence of this real estate crisis is 'adjustment', which is only accomplished through the stock market crash and the oil crisis; this real estate crisis is not a political factor, and Xiangjiang's economic prospects are also It is still ambitious, and coupled with the rapid increase in the population of Xiangjiang, it is believed that Xiangjiang Real Estate will recover in two to three years and enter the next prosperous period of real estate.”

After following Lin Rongheng for a long time, the three people's views on Xiangjiang Real Estate naturally have a great influence.

At this time, it is definitely not a common view in the Hong Kong real estate industry to have such an optimistic view; after all, who knows how long the oil crisis will last, and whether Hong Kong's economy can continue to rise under the impact of the oil crisis. Buying bottoms when the bottom is low, but no one knows when the bottom is, how low the bottom can be, how long the bottom will last, and a series of issues. Therefore, not all real estate companies dare to buy bottoms in real estate.

Moreover, most real estate companies were too deep in funds when the real estate industry was booming, and when the real estate industry was in a downturn, they had no money to buy bottoms; and banks tightened their loans, and many real estate companies were simply powerless.

For example: during the peak period of real estate in the second half of 1972, Hang Lung Properties purchased Shaw Brothers Building and Xinhua Theater in Mong Kok, Kowloon at a high price of 1.15 million Hong Kong dollars. Both properties will not be handed over until the end of 1973.Since the bidding price was far away from the property prices in Mong Kok at that time, this transaction became a sensational news at that time.Later, Hong Kong's stock market and real estate plummeted, and most of Hang Lung's funds were frozen, so that it missed this wave of real estate bargain hunting opportunities.

On the other hand, Sun Hung Kai, Cheung Kong and other real estate companies, although they have also experienced the stock market crash and real estate plummet, after all, they are all small projects, and the funds are withdrawn quickly. The company has the strength to purchase cheap "real estate raw materials" from 1974 to 1975.

The Three Musketeers expressed their views one after another, undoubtedly supporting the company's current real estate bargain hunting.

Lin Rongheng finally made a decision: "From now on, the company will concentrate on acquiring old buildings and land exchange rights, especially the Xiangjiang properties in the hands of overseas Chinese immigrants. We will place more advertisements in newspapers and try to win them."

This trick is the secret of real estate tycoon Lee Shau Kee, and Evergrande Real Estate can naturally follow suit. This kind of acquisition can not only open up channels, but also reduce costs.Of course, with the amount of funds of Evergrande Real Estate, this way of purchasing real estate raw materials is only one of the channels.

Lin Rongheng already knew the real bottom-hunting channel, and planned to operate it himself.

Galaxy Securities.

Lin Rongheng was looking through the materials of some British-funded listed companies, planning to slowly start buying bottoms.

At present, the market value of Wharf is 7.5 million Hong Kong dollars, the market value of Qingzhou Yingni is 1.2 million Hong Kong dollars, the market value of HK Electric is 3.2 million Hong Kong dollars, and the market value of China Gas is 1.5 million Hong Kong dollars. It is too cheap, and this market value will fall.

Of course, if a takeover war occurs, the stock price will at least double, or even several times; for example, before the Wharf takeover war in the previous life, the share price of Wharf was only around 20 Hong Kong dollars, but in the end Bao Yu just offered 105 Hong Kong dollars The sky-high price per share defeated Jardine Matheson.

After reading the materials, Lin Rongheng grabbed the phone on his desk and called Ye Tianhe.

After taking Tim Ye and sat down, Lin Rongheng said in the first sentence: "I will inject a cash of 3 million Hong Kong dollars into the company's account!"

Ye Tianhe was surprised at first, and then said calmly: "Boss, the Xiangjiang stock market may not be able to build up enough confidence in a few years after experiencing this round of stock market crash."

Seeing that Ye Tianhe had a good grasp of the situation, Lin Rongheng was quite satisfied.

The confidence in the Xiangjiang stock market was blown away, coupled with the long-term impact of the oil crisis, so that in 1977, the Hang Seng Index peaked at just over 450 points, hovering around 400 points throughout the year; The highest point was just over 1978 points, but in the end it closed back to 680 points.

Therefore, if you want to make money by buying bottoms in the stock market, now is undoubtedly not a good time.

Lin Rongheng said with a smile: "I know, and I also predict that the Xiangjiang stock market will not rise to 500 points within four years. Therefore, I am not investing this short-term investment, but a long-term investment."

Ye Tianhe didn't think too much, after all, the boss has always flaunted the concept of value investment.

"The boss plans to invest in which stocks?"

Lin Rongheng explained carefully: "The stocks to invest in include Wharf, Hutchison, Hong Kong Electric, Qingzhou Yingni, and China Gas. You can only buy these stocks below 400 points, and you must not arouse the slightest vigilance in the market, so as not to cause disastrous results. Good impact. As for the acquisition period, I can give you 2 years to bring the holding to 20%."

At this moment, Ye Tianhe had a 'dangerous' thought - the boss had thoughts about these companies, but quickly suppressed them, he still didn't need to know too much.

Ye Tianhe nodded seriously and said, "I see!"

(End of this chapter)