Year: I had a good time when I was young

Chapter 910 Combination of Finance and Real Estate

Of course, those who deposited their money in Mingde Silver Bank, Guangdong Trust Commercial Bank, Guang'an Bank, Daoxing Bank, Far East Bank and Wing Lung Bank were dumbfounded.

It is basically impossible to withdraw money.
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After talking about Hang Seng, Chu Xiangqian suddenly had an idea and looked at He Chaosheng, Zheng Yutong, Ye Xiaoli and Zhao Congyan.

“How about you take out more than one million Hong Kong dollars and invest in Hang Seng, each of you taking 1% of the shares as an entry ticket.

If you need a loan in the future, it will be easier for you to talk to me.”

He Chaosheng and the other three were immediately attracted.

Sometimes, even though they have cash on hand, many businessmen would rather take out a loan and keep a lot of cash on hand if they can get support from the bank.

In case something unexpected happens to other businesses, it will be difficult to borrow money within a short period of time.

He Chaosheng even said to the other three, "1% may not be enough. It would be best if the four of us acquire more than 5% of the shares together and get a seat on the board of directors together in the future."

1% or 1.25%, for the other three people, there is basically no difference in the amount of cash they need to pay.

So the three of them agreed without thinking.

He Zanyuan couldn't help but look at his eldest brother He Zanxian. The two brothers held 11.1% of the shares.

But He Zanxian's 4.7% would only require a few hundred thousand to reach 5%.

If two brothers go on the board together, that means two votes.

The importance immediately doubled.

He Zanxian just thought about it for a few seconds and nodded. For a moment, the living room was filled with the sound of phone calls.

He Chaosheng and his three companions simply asked the brothers He Zanyuan and He Zanxian to come forward and help buy some shares from other shareholders.

0.1% is not too little, 2% or even 5% is not too much.

Unfortunately, the other shareholders had just spoken to Chu Xiangqian on the phone and basically already knew that Chu Xiangqian was planning to increase his stake in Hang Seng and put up 2 million pounds.

Even if they couldn't save face, the people who were willing to offer the most would only agree to sell 0.5% of the shares to He Chaosheng and his three companions.

After all the trouble, I only got 3.6%. I can only wait for the stock market to open tomorrow and buy it in the market.

He Chaosheng hurriedly looked at He Yisheng, but He Yisheng was Chu Xiangqian's man. If the newspaper was sent out one day later, it would depend on Chu Xiangqian's opinion.

Before Chu Xiangqian could speak, He Zanyuan said, “Chu Sheng’s investment in Hengsheng must not be delayed, otherwise other shareholders will become nervous and dissatisfied.

From now on, if you want to join the board of directors, you will encounter more obstacles for no reason.

And you only need to buy 1.4% of the shares, which would only cost an extra three or four hundred thousand.

The four of you split the difference, and it's like you lost the card game."

After listening to this, He Chaosheng realized that there was really no need to dwell on this issue at this time.

And if the speed is fast, as soon as the market opens tomorrow morning, not many people in society will know that Chu Xiangqian has increased his holdings in Hang Seng shares.

It’s not difficult to quickly grab 1.4%.

Even if they were willing to spend money, the four of them could acquire 10% of the shares, which would only cost or million yuan.

However, thinking that Chu Xiangqian had not really made a move yet, the four of them thought to themselves that there would definitely be opportunities in the future.

Maybe after making some quick money with Chu Xiangqian, you can earn more than the increase in Hang Seng’s market value.
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After finishing talking about Hengsheng, Chu Xiangqian clapped his hands and said with a smile, "Okay, now let's get to the point."

After saying that, he looked at Ye Xiaoli and asked, "How much money do you have?"

Ye Xiaoli was stunned and wanted to hide something, but then he thought that it would be meaningless to hide millions at this time.

He hurriedly said, "I was accumulating funds last year. If it does not affect the projects under construction, I only have a little over 1 million in hand."

In the real estate industry, money is made quickly, but it also consumes a lot of capital.

Chu Xiangqian continued, "The opportunity is right in front of you. I'd like to lend you 8 million Hong Kong dollars at an annual interest rate of % and pay it back in ten years. Do you want it?"

When the others heard this, they couldn't help but swallow their saliva. Ye Xiaoli's heart beat faster and he felt a little dizzy.

In the past few years, following Chu Xiangqian, there has never been a break in the projects.

Although the profit is a little less than that of external projects, there are many projects and they are never interrupted, and there is no need to worry about the client defaulting on funds.

So in general, he did make a lot of money. His family fortune increased by more than 20 or 30 times compared to the million-dollar fortune he made when he started a business partnership with his elder brother Ye Xiaoqin.

Ye Xiaoli only thought about it for a few seconds and felt that even if Chu Xiangqian wanted to take control of Mingda, he would not lose out.

But Chu Xiangqian’s vision is not so narrow.

Seeing Ye Xiaoli nod after thinking for a few seconds, he smiled and continued, "I never like to manage the company's affairs. So, I'm not lending you money to get Mingda's shares.

Instead, I advise everyone to invest in Mingda and make it bigger and stronger. At the same time, you have enough funds to ensure that you hold more than 34% of Mingda’s shares.”

Now, let alone Ye Xiaoli, everyone else also looked at Chu Xiangqian in surprise.

Chu Xiangqian smiled and said, "Just think of it as me investing in you personally, not the company or the family behind it."

This is half true and half false.

The truth is, Chu Xiangqian knew very well that he had taken all the benefits, and he would definitely become the common enemy of the local families and the foreigners in the future.

Besides, since he has no shortage of profitable businesses and projects, of course he would like to attract a group of people to help him get rich.

By the way, I also invested in these people's companies.

But Ye Xiaoli holds 70% of Mingda's shares. In Chu Xiangqian's view, this means that the equity is too concentrated and it will cause trouble to his own interests in the future.

It would be better to take the opportunity to get everyone to invest in Mingda. Once the equity is dispersed, Ye Xiaoli will no longer be the only one in control.

As for how to win over shareholders, Chu Xiangqian is very good at this.

In this way, it is obvious that Ye Xiaoli is in charge of Mingda and most of the decisions are made by him.

But secretly, Ye Xiaoli was just helping everyone make money.

When Zhou Dafu develops to a certain level, Chu Xiangqian will either push Zhou Dafu to go public.

Or they would encourage Zheng Yutong to issue additional shares to other powerful and capable partners.

Firstly, to obtain more funds for the development of the company, and secondly, of course, to disperse the shares.

So Mingda became Chu Xiangqian's first target.

But this is also a good thing for Ye Xiaoli.

And as long as Ye Xiaoli has no bad intentions towards him, Chu Xiangqian will always support him.

He smiled and continued, "When the land price plummets, we will specifically target high-quality projects in the hands of companies or bosses that have not yet completed their projects and are facing difficulties in cash flow.

Taking advantage of the falling land prices, we bought the land at 50% of the price and continued construction.

Not only will labor costs be much lower, but after a year or two, when the project is completed, the market conditions will basically recover a lot.

If we open the market at that time, it will not be difficult to double or triple the profit.”

Even those projects that involve selling pre-sale properties are not impossible to take on.

Everyone basically understands the 30% profit in the real estate industry.

Of course, for real estate projects decades later, it would be good to get 10%.

You can make 1 million from million, but you don’t have to take out all at once.

The initial investment was 3 million yuan, and the rest depended on pre-sales and loans.

Thirty million can leverage 1 million, and even this thirty million is a loan.

But the real estate in Hong Kong Island these days is still very profitable, just like in the 1990s and the first decade of the new millennium. But the banks themselves are in trouble now and will inevitably urge repayment.

Some real estate companies that are not strong enough or are too aggressive may face the risk of running out of funds within a month or two.

At this time, if there is someone willing to take over, these companies are willing to sell the project as long as they don't lose money.

In other words, for companies that really can't afford it, they are willing to sell the project to you for 5 dollar, let alone 1% of the price.

Of course, in return, you will also have to bear the responsibility, or part of the responsibility, for the house and loan that have already been sold.

However, it is difficult for an outsider like Chu Xiangqian to tell the quality of a project that is halfway through construction or has just started.

Ye Xiaoli thought about it for a moment and realized that the profit here was considerable.

He Chaosheng, Zheng Yutong and He Zanxian have also worked in real estate and understand the profits involved.

But the risks are actually quite high, otherwise, so many projects would not have ended up in vain.

However, Chu Xiangqian holds a large number of shares in Hang Seng and Standard Chartered, and the two banks must have a large amount of funds that cannot be recovered.

By joining forces with the two banks, we will certainly be able to force those companies that owe money to sell their high-quality assets at a lower price.

It can also help the two banks recover a large amount of debt.

The money was recovered, and Chu Xiangqian and several other shareholders provided guarantees, which was enough to reassure the two banks, so they immediately loaned the recovered funds to Mingda.

This is a closed loop.

The more housing prices plummet, the bigger this ball will roll in the short term.

So when Chu Xiangqian finished talking about this plan, the brothers He Zanyuan and He Zanxian looked at him as if he were the God of Wealth.

If Mingda had 1 million Hong Kong dollars in cash, it would not be difficult to move a plate of 5 million or 10 billion under the current circumstances.

They are just taking advantage of the situation, buying properties at low prices from those rich people who are short of funds, and making a profit from the difference.

The profits may be tens of millions every year.

More importantly, during a period of falling real estate prices, a real estate company can still make tens of millions of profits every year once Mingda goes public.

It will inevitably be praised by countless investors who have lost money or are afraid to invest their money.

It is not difficult for Mingda to increase its market value to hundreds of millions in a short period of time.

After listening to the financial explanation from the He brothers, Ye Xiaoli no longer hesitated at all.

Immediately invite others to invest.

Everyone naturally realized the power of Chu Xiangqian's model.

It is certainly possible to do it yourself, but the amount of funds determines the ultimate profit of this game.

Moreover, when he thought about the possibility that Chu Xiangqian might target him in the future, and then thought about the cash Chu Xiangqian held and the two banks supporting Mingda behind the scenes.

Once we become opponents, the thought of that makes my scalp tingle.

Seeing that everyone agreed, Chu Xiangqian said with a smile, "If Mingda holds too many projects in the future, the funds required will exceed Mingda's debt warning line.

Then sell me a few buildings every year.

As you all know, my attitude towards real estate has always been conservative.

I prefer to buy it directly and rent it out.

If the project is good enough, Mingda can get the project and sell it to me, and I can pay Mingda to help me build the building.

The company makes money and I get the building, killing two birds with one stone.”

This means that Chu Xiangqian is backing Mingda up, and everyone has more confidence.

As for how many buildings Chu Xiangqian can take over, just thinking about it makes him casually take out 2 million pounds to support Hang Seng.

This money alone, when Hang Seng overcomes the difficulties, will be enough to buy more than a dozen buildings in Central.

Not to mention, it is impossible that Chu Xiangqian has only 2 million pounds.

However, when Ye Xiaoli accepted everyone's investment, he played a little trick.

Since Chu Xiangqian lent him 30 million Hong Kong dollars, he simply licked Chu Xiangqian's face and asked Chu Xiangqian to inject the same proportion of capital into Mingda.

According to the 7:3 shareholding ratio between the two, Ye Xiaoli has to put up 1200 million Hong Kong dollars and Chu Xiangqian has to put up 30 million Hong Kong dollars to ensure that the % stake does not decrease.

He Chaosheng and others were immediately dissatisfied. If Ye Xiaoli did this, the funds held by Mingda would suddenly drop from just over 1 million.

It suddenly increased to 5 million Hong Kong dollars.

The market value immediately skyrocketed by 4 million.

But even though Chu Xiangqian has to pay 1200 million, the market value is definitely not just the increase of the extra 4 million Hong Kong dollars.

After all, with the 4 million in funds, even if Mingda does not increase its shareholders, it can still do a great job in this crisis with this money alone.

But if Ye Xiaoli did this, Chu Xiangqian would definitely not agree.

Supporting Ye Xiaoli is one thing, but he is not his own son, so how could he support him so strongly?

Of course, it would be different if Ye Xiaoli was willing to sell most of the shares to himself.

But doing so would be equivalent to pushing He Chaosheng and others out.

It would be better to get everyone to join in and develop Mingda into the largest real estate company in Hong Kong Island or even Southeast Asia in the future so that we can make more money.

Then, based on Mingda, we developed horizontally into other industries.

If we copy the path of Li Gongtan and Li Sishu and others, the probability of success will be very high.

So Chu Xiangqian smiled and shrugged, tacitly agreeing that he would stand on Ye Xiaoli's side this time.

He Chaosheng and others had no choice. They couldn't just watch the profits of one or two times, and Mingda's future growth and market value increase, and give up such a good opportunity.

For a while, Chu Xiangqian had some free time.

He Chaosheng and others all surrounded Ye Xiaoli to bargain.

As a result, Chu Xiangqian still had time to leave the reception room and asked Zhang Tianzhi to keep an eye on the inside while he went to the ward to talk to Xue Jinglan, who was due to give birth in the next few days.

Of course, there was more than just Xue Jinglan in the ward.

Several masters would come to visit during the day, sit for a while and then go home to look after Chu Jingrong who was being taken care of by Sister Tao.

As for Gang Sheng and Chu Jingshun, who are still in confinement after childbirth, they are taken care of by sisters Zhao Di and Pan Di.

Master's wife, Feifei, Jinzhi, Jinxiu, and Aiyuan naturally took turns staying in the ward and talking to Xue Jinglan.

As for the caregivers, the nurses and obstetricians in the hospital received such generous bonuses because of the last Hong Kong birth.

Now the Chu family's daughter-in-law is treated like an ancestor.

Chu Xiangqian himself has actually been living in the hospital for the past few days.

So Xue Jinglan's emotions are not only stable, but also in a good mood.

Seeing Chu Xiangqian walk in with a smile, he hurriedly asked, "How did the talk go?"

Master's wife, Feifei and others also pricked up their ears and stared at him.

Chu Xiangqian laughed and didn't answer directly, "When our fourth child is born, if she is a little princess, I, as a father, will directly give her a skyscraper in Central."

(End of this chapter)