The Birth of the Hong Kong Island Family.

Chapter 298 [Everyone here is a little guy]

In early September, Lin Zhichao returned to Hong Kong.

This overseas trip started from Japan and finally arrived in Hong Kong from London.

There are many ships that need to renew their contracts. Lin Zhichao directly signed the five-year contract, and the major employers are all smiling.

As everyone knows, Lin Zhichao is also very happy.

First, the shipping market this year is good, reaching a market where new ships can pay back their costs in a little over five years, and second-hand ships can pay back in 20 to 24 months.Of course, this is a long-term rental market; if it is a short-term rental, it is not easy to say, after all, whether the business can be filled is the key, but it should be higher.

Second, these contracts were signed in July and August, so they expired in July and August of 1967; and the third Middle East campaign broke out in early June of 1967, so these ships can only catch up with the good market.Lin Zhichao didn't have to pinch it just right, for example, some of the later ships might have contracts that expired in the first half of 1968.After all, the Suez Canal will be closed for eight years, and it doesn't need to be just right to avoid suspicion.

After returning to Hong Kong, Lin Zhichao urgently held a high-level meeting of Global Shipping, and another vice president did not return to Hong Kong.

He sat on the main seat and said with a serious expression: "How much loss do we have?"

Typhoon Wendy hit Hong Kong on August 8 and did not dissipate until September 27, causing a lot of damage to Hong Kong.

Lin Zhichao is overseas, and he has already received news that he only set off for Hong Kong on September 9, so he must avoid the typhoon.

Feng Yongfa said: "There is no loss of ships during the lease period, because they have avoided the typhoon belt. However, many of the 2 ships that have just been eliminated are still overseas; and two second-hand ships in Hong Kong have been stranded. , two boats collided, and the losses were relatively large. This typhoon was so severe that about 2 small boats in Hong Kong sank, and even the family boats in the typhoon shelter suffered serious losses.”

Lin Zhichao breathed a sigh of relief. The eliminated ships were originally intended to be sold cheaply; if the ships in the charter contract were damaged, it would be a waste of time and money, although the insurance company would compensate them.

Lin Zhichao asked: "The damaged ocean-going ships are still insured!"

The senior executive in charge of this work immediately said: "Yes, they are already negotiating with the insurance company."

Unexpectedly, when they are ready to sell at a low price, they can still earn a premium. No wonder, British insurance companies will increase the insurance premiums for second-hand ships next year, because these second-hand ships are risky.

At this time, the global shipping is hurrying to eliminate the old ships over 30 years old, and in the end there will be only 30 ships 'under the age of [-]' left in one year; and the eliminated within this year will be almost [-] All eight second-hand oil tankers were eliminated.

Even the remaining fifty second-hand ships will be gradually eliminated in the next three to five years.

Lin Zhichao said: "I heard that there are many missing and dead people in Hong Kong?"

Feng Yongfa replied: "Well, the vast majority of the deaths were in Shatin and Tai Po districts in the New Territories, and they died when they were hit by the storm surge in Tolo Harbor. The number of people affected this time may reach more than [-]. Much bigger losses."

Lin Zhichao nodded and said: "Well, this is not the most terrible thing, I am afraid that the typhoon will exacerbate the drought in Hong Kong!"

Everyone's face sank. In recent years, Hong Kong has been short of water. If it intensifies, it will be really troublesome and will cause great trouble to ordinary Hong Kong citizens.

Fortunately, the wealthy will not be affected too much, because Hong Kong's reservoirs are given priority to supply the urban areas of Hong Kong and Kowloon.

Next.

Lin Zhichao asked: "Will the profit of global shipping this year be higher than expected?"

Li Zhonghe, the financial manager, immediately said: "It's higher than expected, and the price of this one-month renewal is higher than expected."

Higher than expected, that is, a profit of about 4500 million US dollars, and next year's profit will definitely reach 6000 million US dollars.Because, this year, there are as many as one million tons of ships launched one after another.

Lin Zhichao immediately announced a new shipbuilding plan: "Well, at the end of this month, I will go to Japan to build ships, five 13-ton oil tankers, and five 1.8-ton freighters, which will cost about 7000 million US dollars. I may go there again this year. Several ships were built in Europe, and the shipbuilding expenditure reached 8000 million U.S. dollars."

The load capacity is almost more than 80 tons, which was lost to last year's plan, not to mention that this year is still a few months behind.This is because the previous deposits are almost used up.

Everyone showed excitement. Although the global shipping has been at this level almost every year since 1959, it is obviously very powerful for four years.

At the same time, global shipping has finally started the 'age of debt'.

After the meeting, Feng Yongfa will prepare to lead a team to Japan for inspection, paving the way for Lin Zhichao's trip to Japan.

The work content of the two vice presidents is actually to assist Lin Zhichao.But everyone has a focus (no strict direction), Bobby focuses on European and American business, external business, Feng Yongfa focuses on Asian business (Japan is the most important), and internal management.

Overall, Lin Zhichao is very satisfied with the current team.

The news that Global Shipping sold 14 ocean-going ships at one go caused a great disturbance in the Hong Kong shipping industry. At first, everyone thought that Global Shipping only sold the ships damaged by the typhoon, but soon found out that others had clearly stated that these ships were In good condition and undamaged, the only downside is that the boats are all over 30 years old.

The advantage is of course that the price is cheap. Basically, it only costs 15 to 25 US dollars, and it immediately becomes a favorite.Because everyone understands that if the ship price is cheap, then a 15-ton freighter can hope to make a profit of 20 to 12 in a year, and at most it will pay back in 18 to [-] months.

Because this incident became news in the shipping industry and was also known by the media, some media eventually described it as "global shipping loses a bone, and it attracts peers to eat it", which became a joke.

But the jokes are all jokes, who will have trouble with money, so the transaction intention meeting held by Global Shipping in the office building this day attracted many Hong Kong shipowners to participate; including Bao Yugang, Zhao Congyan, Cao Wenjin and other later generations of "ship kings" Lin Zhichao, the owner of the ship, felt a little funny when he heard about it.

At this time, Bao Yugang should be stronger than Zhao Congyan; not to mention Cao Wenjin, he was lifted by the US Department of Commerce this year, ending his days of moving stones.

But Bao Yugang has not built a new ship so far. It is obviously under the influence of Lin Zhichao, and it is far worse than in his previous life; after all, in his previous life in 1961, he had built a new 7500-ton cargo ship, and by 1968, Bao Yugang Yugang already has a fleet of 350 million tons.

In the conference room, there were about seven or eight shipowners who came to choose ships, and Feng Yongfa presided over the trade fair.

The trading rules are very simple. Everyone gets the information of 14 ships. Whoever submits the letter of intent to purchase first will get it first.

"Everyone, these ships are more than 30 years old, and the above information is all there. Everyone has heard about the maintenance of our global shipping. Here, I also promise that every piece of information is very true and the price is natural. Needless to say, we are selling at a low price, and we can pay back the cost in almost a year, and the price is not negotiable. Okay, let’s take a look next time!"

Some humiliation!

Bao Yugang, Zhao Congyan and others thought in their hearts that, just like what the outside media said, Global Shipping is really the absolute leader in Hong Kong's shipping industry; it is really shocking to throw out 14 ocean-going ships of about [-] tons this time.

Similarly, it also shows that these ship owners are just picking up other people's leftovers to eat!
Bao Yugang sighed in his heart. During the period from 1959 to 1961, he picked up a lot of second-hand ships and expanded his fleet to 30 ships with a gross tonnage of 25 tons.

First of all, the business was not very good in the first three years, and it was difficult to rent out for long-term leases (global shipping is a special case, the situation is much better), or the price was crazy;

Secondly, most of the second-hand ships picked up in three years are 30-year-old ships, which are generally ready to be dismantled, and only a few of them are more than 20 years old.

"After purchasing these ships, I will build new ships immediately, otherwise the gap with global shipping will be too big! I just don't know, will HSBC Bank give me a loan?" Bao Yugang thought so.

It turned out that Sandas of HSBC was not optimistic about Bao Yugang as an imitator, so he seldom gave Bao Yugang loans.What's more, HSBC now invests a lot in shipping, so it is more prudent in lending.

But this year's market is good, maybe HSBC will consider letting go.

On the other side, Zhao Congyan and Cao Wenjin didn't have too many ideas, and they were hurrying to buy.These are from global shipping, and they definitely have a good reputation. At least others have done a good job in maintaining the ships, which is recognized by the industry.

Time passed quickly, and everyone moved quickly. Bao Yugang, Zhao Congyan, Gu Guomin (Gu Zongrui's eldest son, Dong Haoyun's brother-in-law), and Cao Wenjin were all very fast. Compared with other shipowners, they understood that opportunities are rare.

Soon, the fourteen ships were divided up by everyone!
It happened that Lin Zhichao also came to the meeting room to communicate with everyone.

"Congratulations to Lin Sheng, you have been elected as the chairman of the International Tanker Association, and you have brought honor to Hong Kong's shipping industry!" Cao Wenjin stepped forward to congratulate.

Looking at Cao Wenjin, Lin Zhichao couldn't help sighing that these wools are really well-swept; in the past, Lin Zhichao encouraged Li Gaofu to smuggle goods to the port of JF District in the north, and it was Cao Wenjin's wool that was sacked.

Unexpectedly, Cao Wenjin is still developing now, but there should be only a few ships in his hand; after all, with the United States sanctioning him, it is impossible to develop shipping.

Lin Zhichao said with a smile: "Cao Sheng won the award, it's just a false name."

Afterwards, he greeted everyone one after another. Unexpectedly, Dong Yunhao did not come, but his wife and brother came instead; Dong Yunhao's father-in-law was originally a mainland shipping king in the 30s. After arriving in Hong Kong, he bought a 5000-ton second-hand ship with a loan to continue. Operating the shipping industry.

However, Lin Zhichao sighed a little, war is really terrible, it can make a person's wealth expand quickly, and even make a person's wealth disappear instantly.A ship tycoon in the 30s actually started his business with a 1949-ton second-hand ship in 5000. It is said that the ship is very broken and only costs a little over $[-].

When Lin Zhichao started his business, he seemed to have more than 170 million US dollars, starting with three 20-ton ships that were less than [-] years old.

"Everyone, when buying second-hand ships, don't forget to find a way to build new ships. Now Japan is very cheap to build ships, and it gives low-interest loans to outsiders. It is a good opportunity. After all, it is difficult to do big without new ships. powerful."

He is sincerely pointing everyone out!
The times have changed. In the past, Japanese shipping companies were still willing to lease second-hand ships, but now Japanese shipping companies have begun to discriminate against second-hand ships.Because their country can build new ships, it is natural to give priority to new ships, and the rent of new ships is higher.

Lin Zhichao has built 18 freighters in the past few years, almost all of which are leased to the three major shipping companies in Japan.

"What Lin Sheng said makes sense. It's just that this ship costs one million US dollars. You can buy five or six second-hand ships like today, but the rent is not much different! Building a new ship is not a problem for you. For us, we have to settle this account." Zhao Congyan said.

But Bao Yugang said: "We can't just calculate this account. After all, such a second-hand ship is good enough to run for three to five years! And a new freighter still has a long life. More importantly, the new ship It's a credibility boost."

When Zhao Congyan saw that Bao Yu had just refuted him, he couldn't hold back immediately, and said, "Building a new ship takes up a lot of money, and this is the most important thing!"

Bao Yugang smiled relaxedly, and then said: "How Lin Sheng did it, we should do it!"

Everyone was puzzled, and Lin Zhichao was also a little puzzled. What did Bao Yugang refer to?
Next, Bao Yugang said: "I heard from Japanese friends that Lin Sheng used to have two ships, and they made a tripartite agreement with the shipyard and the Japanese shipping company. Only 20% of the funds are required, and the rest of the funds are all provided by shipping companies. The rent of the company is paid to the shipyard in batches. In order to support the shipyard in Japan, this model really works.”

Many people's eyes lit up!
Lin Zhichao said with a smile: "It really works! Japan supports shipyards, and the interest rates are very low, lower than the Japanese, so they are unwilling to build ships; and as long as the shipyards can stably recover the shipbuilding payment, they will agree to this kind of payment. way, leased to Japanese shipping companies, they are the most at ease."

Many people began to think that this method is indeed very good.

It’s okay to say it, anyway, it’s not a secret, everyone is a representative of Hong Kong Shipping, and it’s okay to make progress together, anyway, it’s to earn foreign exchange.

After some exchanges, everyone returned with a rewarding experience!

Lin Zhichao also sent everyone away with the pace and smile of a ship king.

The mood is very relaxed, he will never see these as opponents again!
Today's Bao Yugang is only preparing for the first new ship with a second-hand ship of less than 30 tons; it is impossible for HSBC to fully help him, and the three major Japanese shipping companies trust Lin Zhichao more. With an annual capacity of 1968 million tons, it is already very powerful.

In mid-September, the Hong Kong government suddenly announced the revision of the building conditions in 1955, mainly stipulating the plot ratio of land for various purposes (that is, what we often call the floor area ratio). The building area under the new regulations is larger than before. Reduced by about 20%.However, there is a buffer period for the implementation of this regulation, allowing it to be officially implemented on January 1966, 1.

The original intention of the Hong Kong government is to curb the overheating of real estate; however, once this regulation is implemented, it will inflate the real estate in Hong Kong in a disguised form.

This is because the major real estate chambers of commerce developed their land before 1966 to avoid losing 20% ​​of the area.

This year (1962) the supply of houses may be only 1.1, but by the peak period in 1965, it may reach 2.9, an increase that is simply unimaginable.

At the same time, so many real estate developments will naturally lead to a large amount of bank funds flowing into the real estate industry; eventually leading to insufficient cash flow of the bank, a large-scale bank run broke out in 1965, which spread widely and is unique in Hong Kong history .

At this time, the commercial land in Central Hong Kong has reached 2000 Hong Kong dollars per square foot, and the Tsim Sha Tsui commercial area has also reached 1000-1200 Hong Kong dollars per square foot; the residential land in Hong Kong and Kowloon has reached 200 Hong Kong dollars per square foot (the location is different, the price are not the same, for reference only).

"The land auctioned by the Hong Kong government this year has already reached 1.5 million yuan?" Lin Zhichao asked Hu Zhaoxu who came in.

"Yes, it should be 1.7 million! In the remaining three months, I am afraid that it will steadily break through 2 million Hong Kong dollars and create a historical record." Hu Zhaoxu naturally understands these things clearly.

Lin Zhichao tapped the table and thought about it!
This year, Cheung Kong also contributed nearly 1000 million Hong Kong dollars to purchase two very good pieces of land.

Now a 2-square-foot piece of land in Yau Ma Tei is already 400 million. If it is Causeway Bay, it may cost 600 million.

The price of housing has also risen sharply. The price of a unit in Causeway Bay is about 6 or more, and that in Yau Ma Tei is also more than 5 Hong Kong dollars.

"Cheung Kong Industrial should digest the existing projects. Even if it needs to acquire land, it is almost enough to acquire two small sites." Lin Zhichao said.

Hu Zhaoxu said without hesitation: "Okay, I understand!"

The crazier the real estate business of other real estate developers is, the more willing they are to invest; and the more unsatisfactory the real estate business of our own boss is, the more he has to hunt for bargains, and once the market is too high, he will stop or slow down.

At this time, it is the best portrayal.Of course, Hu Zhaoxu also understands that Cheung Kong owns enough land reserves to be developed until the 70s, so the boss is of course not in a hurry.

After Hu Zhaoxu left.

Lin Zhichao is thinking about the problem:
He analyzed and predicted that if a bank run broke out in January 1965, it would last for about a year. During this period, real estate would plummet by about 1-30%, but it would not be the best opportunity to buy bottoms;

By 1966, there might have been some recovery, but by 1967, real estate plummeted.Perhaps a high-end residence in Causeway Bay was originally worth 20 Hong Kong dollars, but only 1967 Hong Kong dollars in 5, a drop of more than 7%.The important thing is that the market is full of middle- and upper-class people eager to sell their properties, cheap assets are everywhere, and they are waiting for the money to immigrate immediately.

Therefore, Cheung Kong Industries will stop developing new development projects almost in 1964.Of course, a mid-level mansion can also be developed, but it will not be sold.

A little bit of pretentiousness, so as not to say that Lin Zhichao is a prophet.However, in the past few years, Changjiang Industrial has been developing large projects, and it may only start one or two sites a year, so it is not surprising.

(End of this chapter)