Reborn in Hong Kong as a Tycoon

Chapter 269 Slightly Adjusted
The day after Lin Baicheng established Galaxy Bank, Huo Yaohua, the head of Standard Chartered, and Shen Congee, the head of HSBC, contacted him successively.

As Lin Baicheng guessed, the two people contacted him to ask about the future cooperation between the company under his name and the two banks, and Lin Baicheng naturally expressed that he would continue to cooperate with the two banks.

Although Galaxy Bank was established, it is now only a small bank and has not even completed the merger and reorganization.Besides, even if Galaxy Bank completes its reorganization and develops into a bank that does not lose to HSBC and Standard Chartered, Lin Baicheng still has to cooperate with other banks.

It is true that Galaxy Bank is Lin Baicheng's fault, but it does not mean that Lin Baicheng can lend all the depositors' money in the bank to companies under his name in the future, which is not allowed by law.

Galaxy Bank can lend to companies under the name of Lin Baicheng. First of all, Galaxy Bank can use its own funds at will. It can lend as much as it wants to other companies under Lin Baicheng’s name. After all, the money is also Lin Baicheng’s.

However, the money of depositors in Galaxy Bank is different.In order to lend this part of the money to enterprises under the name of Lin Baicheng, the loan company must meet the bank's loan conditions, and the loan funds cannot exceed a certain percentage of the depositor's total funds.

Otherwise, if the company under Lin Baicheng's name goes bankrupt and the bank fails to collect the loan, and the bank goes bankrupt, what will happen to the depositor's money?
Therefore, if the company under Lin Baicheng's name needs a loan, sometimes it is actually better to go to other banks for loans. Instead, his own bank needs to be business-like, and it is not easy to give an excess loan, so as not to fall into the trap and violate the law.

Switching to other banks is different. Taking Jupiter Toys as an example, if the company wants to borrow [-] million Hong Kong dollars, because the company is not worth so much money, it is usually impossible to get such a loan.But relying on Lin Baicheng's face and assets, he can get so much money from HSBC and Standard Chartered, but this kind of thing is not convenient for Galaxy Bank.

Therefore, although the bank was established, Lin Baicheng never thought of not cooperating with other banks. The cooperation is still necessary.

Hutchison Whampoa.

Lin Baicheng was working in the office, and Wei Li came to see him.

"Mr. Lin, except for HSBC's 5 million Hong Kong dollars, all the company's debts have been paid off. As for Watsons, I believe President Cheng has also reported to you. It is now in the process of delisting in an orderly manner. I believe Watsons will soon It will become a wholly-owned company."

"I know all this, I don't think you came here to tell me this?"

Lin Baicheng nodded when he heard the words, he already knew the two things Wei Li said.

"There is something that needs to be reported to Mr. Lin and asked for your opinion."

Wei Li said aloud: "You let the company focus on the development of the real estate industry and the retail industry, and I am mainly in charge of the real estate industry. The company's land is mainly industrial land, which means that these lands can only be used to build factories. If you want to If it is converted to commercial land, the Hong Kong government must make up the difference."

"Of course, the company also has a lot of commercial land, but with the company's current scale and investment in real estate development, those commercial land can only be developed until next year, and the company will face the dilemma of having no land available."

"The Hong Kong government hosts land auctions every month, and the company will also participate in it. However, there are many real estate companies that auction land, and it is difficult for the company to take too many lots. If a large number of lots are bought at a high premium, let alone It is a question of whether it is cost-effective, offending too many peers will not be conducive to the development of the company.”

"Therefore, I would like to ask Mr. Lin for your opinion. Should you choose to pay the Hong Kong government to change the industrial land into commercial land? Or slow down the development of the real estate industry and develop your own commercial land while auctioning the land?"

"That's something I didn't expect."

After hearing this, Lin Baicheng secretly thought in his heart that after the acquisition of Hutchison Whampoa, he only looked at the land area owned by Hutchison Whampoa, but did not pay attention to the use of these lands. Such things as changing to commercial land without authorization.

Lin Baicheng originally thought that all the land under the name of Hutchison Whampoa could be developed into office buildings, residential areas, etc. It was nothing more than developing different buildings according to the location of the land.Unexpectedly, this is not the case. The land in Hutchison Whampoa is mostly industrial land. If you want to convert it into commercial land, you have to spend money to make up the difference to the Hong Kong government.

"Willie, what do you think?"

Lin Baicheng asked aloud, he wanted to hear Wei Li's opinion.

Wei Li had already thought about this before he came here, so he said: "The development of every industry has its peaks and valleys, and the real estate industry is no exception. Now the real estate industry is at the right time to go up. At this time, Hong Kong It is actually not cost-effective for the government to make up the difference, and when housing prices collapse and land prices also plummet, it is the best time to change the use of the land to the Hong Kong government to make up the difference, because it will cost less money then.”

"And Mr. Lin, if you are firmly optimistic about Xiangjiang's real estate industry and think that land prices will rise in the next ten years or even longer, then you can also choose to pay the difference to the Hong Kong government now and develop the land."

"I'm afraid that after we make up the price difference to the Hong Kong government, it will take another year or two for land development. After a few years, the house price will start to fall back, and the company will suffer a lot."

"You're right. Let's wait until the real estate industry corrects to make up the price difference."

Lin Baicheng is very clear that the real estate industry of Xiangjiang will rise in the long run for decades, but he is even more aware that when China and Britain start negotiations on the issue of the handover of Hong Kong, the real estate industry of Xiangjiang will inevitably plummet, and it will not be too late to choose to make up the difference at that time.

"Mr. Lin, in fact, in addition to developing our own useful land, we can also purchase shopping malls and buildings to hold, and charge a fixed rent every year. If the housing prices continue to rise, we can also benefit."

Wei Li proposed aloud, this is a way that he thinks can also expand the company's real estate industry after discussing with his subordinates.

"Acquisition?"

Lin Baicheng's heart was moved when he heard the words. Under the circumstance that the company's own land cannot be developed in large quantities, external acquisition is indeed a way of development.Although the company currently does not have much self-owned funds, it is absolutely possible to acquire a building with a loan from the bank and sell it in a few years. The profit will definitely be higher than the interest of the bank.

"Then let's make a foreign acquisition. You guys discuss the target to be acquired, and then report to me."

Wei Li nodded: "Alright Mr. Lin, we will report to you in a few days."

Not long after, Wei Li left the office.

Although the development direction of Hutchison Whampoa has been adjusted, from completely self-built to self-built plus external acquisitions, the development direction has not changed, and the real estate industry is still mainly based on expansion.It will definitely cost more money to acquire a building or shopping mall that has already been built, but you will definitely not lose money if you hold it. It is completely fine to keep the company's land for future development, and the later the development, the more you can earn.

(End of this chapter)