Rebirth: The Era of Hong Kong Tycoon

Chapter 288 [Real estate plummet]

Galaxy Financial Group.

Lin Rongheng called Ye Tianhe and said, "Do something for me!"

Ye Tianhe said seriously: "Boss, please tell me!"

Lin Rongheng nodded and said, "Many gold dealers and jewelry stores in Hong Kong and Macau are promoting a kind of 'paper gold' investment. My wife plans to spend 500 million Hong Kong dollars to invest in this paper gold. Go and help me." Xie Liyuan Gold Shop in Macau, invest."

Ye Tianhe didn't even think about it, and said, "Well, I'll do it right away!"

Although this investment was a bit inexplicable, Ye Tianhe didn't have the heart to take care of it, as long as he followed the tasks assigned by the boss.

Xie Liyuan Gold Shop was founded in the sixth year of Tongzhi in the Qing Dynasty (1867). In the 70s, the price of gold rose sharply. Xie Liyuan Gold Shop launched the "Thousands of Gold Accumulation Plan": citizens can open gold accounts and buy and sell gold according to the gold price of the day. After the launch, it became very popular in Hong Kong. The public is welcome.

In the previous life, the paper gold launched by Xie Liyuan Gold Shop did not buy and sell gold in the market according to the needs of customers, nor did it have a large amount of gold reserves. In August 1982, the international gold price rose sharply, nearly 8 yuan per tael.Xie Liyuan Gold Shop was forced to cover its positions in the market, resulting in poor capital turnover, and had to close down on September 1500.Industry insiders estimate that Xie Liyuan Gold Shop used this to attract more than 9 million yuan of funds.

After the closure of Xie Liyuan Gold Shop, there were rumors in the market that Xie Liyuan had a close relationship with Hang Lung Bank. Some investors who held Xie Liyuan Gold Shop gold certificates went to Hang Lung Bank to ask for cash, but were rejected.For a while, news about the bank's payment problems spread like wildfire, triggering a run on Hang Lung Bank.Within two days, nearly 1 million yuan was withdrawn.Fortunately, Standard Chartered Bank and Bank of China issued a statement to fully support Hang Lung Bank, and the run wave temporarily subsided.

As for Lin Rongheng's real intention, it was actually a plan to kill two birds with one stone.

First of all, I save a sum of paper gold worth 500 million Hong Kong dollars. If Xie Liyuan Gold Shop does not buy real gold as a reserve, when it goes bankrupt, I can directly purchase this century-old brand as the largest creditor.An's sisters happen to have Luk Fook Jewelery, which has been developing slowly. They just annexed Xie Liyuan Gold Shop to supplement their strength.

Secondly, at that time, I can also entrust someone to take the gold coupons and go to Hang Lung Bank to make some troubles and speed up the run on Hang Lung Bank.Later, the directors of Hang Lung Bank took away depositors’ money in violation of regulations, and the news that Hang Lung Bank had 8 million Hong Kong dollars that could not be recovered after the collapse of Diners Finance was spread.In this way, Hang Lung Bank is bound to be in a desperate situation. At that time, there is no need to worry that the Zhuang Brothers will not sell Hang Lung Bank at a low price.

Once the bank is in hand, the Lin consortium will be truly complete.

In September 1982, British Prime Minister Thatcher visited China to discuss the future of Xiangjiang.

Just when the citizens of Xiangjiang were looking forward to it, news came from the capital that the negotiations between China and Britain were unfavorable, and Thatcher even fell in the Great Hall of the People.Originally, wrestling was quite normal for people, but at this time Thatcher wrestled and just walked out of the Great Hall of the People, the media had negative reports one after another.

Originally, land and property prices began to adjust and fall in the second half of last year. Now that the Sino-British negotiations are unfavorable, the decline has intensified; by the end of the year, the real estate market had completely collapsed.

Land prices were the first to bear the brunt of the collapse of the real estate market; in 1982, land prices in Xiangjiang generally fell by 40% to 60%; the biggest decline was in industrial land and high-end residential land. The highest monthly level of 1980 yuan per square foot fell to 6 yuan per square foot in October 360, a drop of 1982%, faster than the rocket.The high-end residential land along Nanwan Road on Hong Kong Island also fell from the highest level of 10 yuan per square foot in September 25 to 93 yuan per square foot in December 1980, a drop of 9%.

地价大跌带动楼价、租金大幅下挫，1982年的住宅楼价普遍比高峰时期下跌3成至4成；例如北角住宅楼价就从1981年年底每平方尺1068元，跌至1982年底的每平方尺665元，跌幅38%。

中区甲级写字楼月租，亦从1981年中最高峰的每平方尺28元至30元，跌至1982年底的每平方尺21元至24元，跌幅约为20%至25%。

The downturn in the market led to a shrinking transaction volume and an increase in building vacancies. In 1982, there were 16.5 registrations of various contracts (including building and private land sales), with a total value of HK$995 billion, a decrease of 1981% and 13% respectively compared with 21.

With the collapse of the real estate market, those real estate companies that adopt aggressive investment strategies are the first to suffer, including emerging real estate groups such as Hang Lung and Great Eagle, as well as established real estate companies such as Hongkong Land. Some real estate companies have even suffered disasters, which is shocking. Highlights include Goodyear Real Estate, Yida Investment, Carrian Real Estate, etc.

In the real estate crisis, Hang Lung Properties, one of the five real estate giants, was the first to be hit. In 1981, three consortiums led by Hang Lung won the right to develop properties above nine subway stations along the Hong Kong Island MTR.It is a pity that real estate was already at its peak at that time. With the arrival of Sino-British negotiations, the real estate market fell sharply. Hang Lung paid a heavy price for misreading the real estate cycle.It was the same withdrawal as before the stock market crash in 3. At that time, Hang Lung bought Shaw Brothers Building and Xinhua Theater in Mong Kok for 9 million Hong Kong dollars at the peak of real estate at that time, freezing most of Hang Lung's funds, so as to prevent real estate bargain hunting. .The same is true now, Hang Lung has already paid the HK$1973 million contract to the Hong Kong government. If the land compensation fee of HK$1.35 billion cannot be paid, the Hong Kong government will confiscate the HK$18 million contract.

In the real estate crisis, Great Eagle was hit the hardest. Great Eagle Real Estate expanded rapidly during the peak period of real estate and the stock market, spun off Regal Hotel, and acquired Paliburg. A serious crisis has already been lurking.The main business of Regal Hotel is to develop two hotels in East Tsim Sha Tsui and the airport. The construction cost of these two hotels alone needs 4.6 million Hong Kong dollars.Paliburg, a subsidiary of Regal Hotels, even entered real estate at its peak.

In the real estate crisis, Hongkong Land is also not feeling well. Only the three major investment projects of the Queen's Garden Lot Project, Miramar Hotel Old Wing, and Baibishan Development Plan have lost more than 30 billion yuan.In addition to these large projects, Hongkong Land also has more than 60 real estate projects of sole proprietorship and joint venture, many of which were entered during the peak period of real estate.Hongkong Land's debt has reached 100 billion Hong Kong dollars, and it has been dubbed the "debt king" by the media.

Among the established real estate companies, the hardest-hit one is Lin Rongheng’s old rival, Good Year Real Estate; After March 1972, the stock market crash and the oil crisis came one after another. Carnival Real Estate’s strategy at that time was to shift its development focus to overseas and develop the Subang City project in Kuala Lumpur, the capital of Malay. , The development plan was slow, resulting in a continuous decline in the profit of Jianian Real Estate. In 1973, the net profit was only 3 million.And other real estate companies have seized the real estate downturn to buy a large amount of land. When Goodyear Real Estate returns to Hong Kong, it has already taken the greatest opportunity.Moreover, due to the aggressive advances in 1977 and 440, and the death of Peng Guozhen at the end of December, Carnian Real Estate broke out in financial crisis. Apart from liquidation, there is no possibility of recovery.

What is more shocking than the collapse of Jianian Real Estate is the bankruptcy of Yida Group. Zhong Zhengwen, chairman of the board of directors of Yida, fled Hong Kong in a hurry, leaving his son in jail.Yida had a problem, and the crisis of Carrian Group, its close partner, also began to emerge.

(End of this chapter)