Year: I had a good time when I was young

Chapter 912: Tens of millions more easily earned

The decline in real estate prices in Hong Kong Island will definitely lead to a shortage of funds in the market, which will inevitably affect the manufacturing industry.

Zhao Congyen came to Hong Kong Island to do business early on and bought a number of industrial buildings for rent.

He has dealt with quite a few small factory owners.

After making money, he decided to engage in shipping business.

The reason for this idea is that the factory owners who rented his industrial buildings always complained about the insufficient shipping capacity of Hong Kong Island.

This made Zhao Congyan feel that shipping should be profitable.

Unfortunately, Zhao Congyen seriously underestimated the capital demand in the shipping industry.

He entered this industry in the mid-to-late 50s, but it took him seven or eight years to develop into owning more than a dozen second-hand ships.

The load capacity is only about 120,000 to 130,000 tons.

Moreover, these ships can only run routes from Hong Kong to Southeast Asia.

It was not until Chu Xiangqian bought several buildings from him that the two got to know each other and became interested in his experience and abilities in the shipping industry.

That's why they invested heavily in him.

Zhao Congyan is indeed capable. Last year, the shipping company made a net profit of 1700 million.

At this time, Chu Xiangqian first invested in Hang Seng and then invested in Mingda.

It's impossible to have no ideas in mind.

But he also knew that if he wanted to ask Chu Xiangqian for investment and support at this time, he had to let Chu Xiangqian see the development prospects.

After thinking for a while, he said, “The drop in land prices is indeed very destructive in the short term, but it also means that the rental prices of industrial buildings and workers’ wages will also decrease in the future.

The competitiveness of foreign exports has become stronger.

So I estimate that within three to five months, many factories in Hong Kong Island will have a hard time.

But after the price is lowered, orders will gradually increase.

In the next few years, Hong Kong Island’s exports will most likely be even greater than in the past.”

Chu Xiangqian certainly understood what Zhao Congyen meant. After thinking for a while, he suddenly said, "If the Hong Kong dollar exchange rate falls, the cost of imported raw materials will increase."

Zhao Congyan was stunned, but when he thought that Chu Xiangqian dared to invest in this and that at this time, he must have the confidence.

Thinking of this, Zhao Congyan naturally dared to follow Chu Xiangqian and take a gamble.

He smiled and said, "You have invested heavily. I bet you are very optimistic about the future of Hong Kong Island. As for whether the exchange rate will fall, it will only be short-term.

And I'm going to say something that may make you unhappy, but based on my many years of experience in shipping and industrial building leasing.

A falling Hong Kong dollar exchange rate is actually more beneficial to exports.”

Chu Xiangqian couldn't help but give Zhao Congyan a thumbs up. There was a period of time when the Celestial Empire tried its best to maintain the exchange rate because it didn't want the prices of exported goods abroad to be artificially raised.

Things that used to sell for $10 will now cost $11 or $12 after the exchange rate goes up, which will seriously affect export volumes.

Chu Xiangqian knew that London was already short of money and the economic situation in Britain was not very good. If the Hong Kong dollar exchange rate was broken.

In disguise, the exchange rate of the British pound, which is pegged to the Hong Kong dollar, will also fall. Downing Street would not dare to reveal its flaws at this time, giving foreign capital the opportunity to attack the Hong Kong dollar exchange rate and indirectly hit the British pound exchange rate.

So Chu Xiangqian had no intention of shorting the Hong Kong dollar this time.

If one thing goes wrong, with a leverage of ten or twenty times, it is possible to lose tens of millions of dollars.
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Seeing that Zhao Congyen had such a clear vision of Hong Kong's import and export industry in the coming years, Chu Xiangqian couldn't help but think that these people had very sharp vision and would become wealthy in the future.

Of course, compared with the cheating Chu Xiangqian, this person is more than one level behind.

But sometimes opportunities depend on a flash of inspiration. Otherwise, why haven’t so many economists become rich?
Chu Xiangqian now feels more confident about investing in Zhao Congyan.

After thinking for a while, he said, "Mr. Zhao, the shipping company's business is easy to handle. I will continue to purchase 60 Victory ships this year.

If you are brave enough, I will sell you 30 of them at cost price of US$40.

As for the source of funds, wait for two months for the bank crisis to pass.

Whether it is Hang Seng or Standard Chartered, I believe they will be willing to provide you with a loan of US$1200 million."

Chu Xiangqian had previously made a three-year agreement with Morgan Jr. and McDonald to exchange 3 thoroughbred horses for 40 victory wheels from them every year.

As long as these 30 ships joined the Zhao family’s shipping company, the shipping capacity would increase by 4% in a short period of time.

Zhao Congyan just thought about it and felt that this business could be done.

But he couldn't help feeling uneasy about having to bear a debt of 1200 million US dollars.

He wanted to exchange shares and cash for these 30 ships, but Chu Xiangqian already held 45% of the shares. If he gave them to him, his own shipping company would really have a new owner.

For a moment, it was really difficult to make up my mind.

His eyes couldn't help but look at He Chaosheng, Zheng Yutong and others.

Chu Xiangqian was unwilling.

I was thinking that after waiting for ten or eight years, the upward trend of the shipping industry would reach its peak.

He separated a portion of the international shipping he controlled and the shares of the Zhao family's shipping company and sold them to local forces in Hong Kong and international capital.

He smiled and said, "Last year I used 30 Victory ships to invest in Zhao's Shipping, but only took 45% of the shares. Mr. Zhao, this kind of good thing is enough once."

When the others heard this, they exploded.

In the past, no matter how cheap the Victory ship was, a single ship would cost at least $45.

30 lines equal 1350 million US dollars. After investing in Zhao Congyan’s crappy shipping company, he only took away 45% of the shares.

He Chaosheng cursed directly, then looked at Zhao Congyan, whose eyes were a little evasive, and said, "Mr. Zhao, it turns out that among all of us, you are the one who has taken advantage the most."

After saying that, he looked at Chu Xiangqian and said, "Mr. Chu, why don't you invest in me and we set up a new shipping company. I will give you 7% of the shares and I am willing to work for you."

Since He Zanxian has a gold business in South Africa, he is naturally involved in shipping.

Pulling his brother He Zanyuan, he said, "Mr. Chu, my brother and I have very good relationships with the bosses of several shipping companies.

It is definitely safer to leave this business to us than to Ah Sheng."

After saying that, he looked at He Chaosheng and said with a smile, "Or, the three of us can all work for Chu Sheng."

He Chaosheng was worried that he would be kicked out just now, but now that he could be a partner, he nodded after thinking about it.

Chu Xiangqian cursed in his heart, but smiled and said, "Everyone has their own expertise. I am happy to cooperate with you in other businesses.

But in the shipping industry, apart from Mr. Zhao, the only three people I think have potential are Dong, Bao and Cao.

Unfortunately, after I came into contact with them, they thought I was targeting their family business.

I can only cooperate with Mr. Zhao alone."

After saying that, Chu Xiangqian looked at Zhao Congyan, "It's just that Mr. Zhao seems to lack a little courage."

Zhao Congyan immediately became anxious, but before he could say anything, Chu Xiangqian suddenly said, "Forget it, I'll just sell you the 30 boats, and you don't have to rush to pay me back.

The annual interest rate is still 8%, and the repayment period is 10 years, but the unit price of the ship is US$45.

Mr. Zhao, this should be okay, right? "

Everyone was stunned. They thought Ye Xiaoli would be the one who benefited the most from this meeting. However, they didn't expect that Zhao usually had the lowest presence among the people surrounding Chu Xiangqian.

But it seems that Chu Xiangqian values ​​him the most.

Zhao Congyan was already anxious, fearing that Chu Xiangqian would give up on him, but after hearing this, he was so excited that he almost had a heart attack.

This is 1350 million US dollars, which is equivalent to 7700 million Hong Kong dollars when converted into Hong Kong dollars.

Moreover, his own shipping company made a net profit of more than 300 million US dollars last year. After giving 45% to Chu Xiangqian, he will still get 165 million.

With an annual interest rate of 1350% for $8 million, Chu Xiangqian only needs to repay $108 million each year.

No pressure to pay interest.

With the addition of 30 ships, if nothing unexpected happens, the annual profit will increase from more than 300 million US dollars to more than 500 million.

I hold 55%, which is 275 million. After deducting the interest of 108, the remaining amount is 167 million.

Ten years later, not counting the market value of the shipping company, 10 times 167 alone would be enough to pay off the $10 million debt owed to Xiangqian in one go.

Damn it, Zhao Congyan almost knelt down to Chu Xiangqian.

The others are all capable people, and with a little calculation, they can figure out the interests and profits involved.

The way he looked at Zhao Congyian was as if he was looking at the illegitimate son of the God of Wealth.

He Zanyuan, the general manager of Hang Seng, saw that Chu Xiangqian was unwilling to give up the shipping business to himself and his elder brother.

He immediately thought that instead of letting Chu Xiangqian earn the interest, it would be better to use it to attract business for Hang Seng.

He hurriedly said, "Mr. Zhao, Hang Seng is willing to lend you 7700 million Hong Kong dollars, and we only need an annual interest rate of 7.5%."

Chu Xiangqian rolled his eyes after hearing this. Not only was he not angry, but he laughed and cursed a few times, as if he was deliberately trying to argue.

"Then I only want 7% annual interest. If Mr. He Er lowers it, I'll forget it."

Now it was He Zanyuan's turn to curse in his heart.

Although I know that Chu Xiangqian is deliberately helping Zhao Congyan to lower the loan interest rate, you own 45% of Zhao Shipping’s shares, and you are also the first major shareholder on Hang Seng’s side!
However, He Zanyuan is not someone who only knows how to run a company but does not understand the ways of the world.

Chu Xiangqian had already said, "I won't follow if the price drops again." If he didn't cooperate, he would be going against the big boss.

He pretended to be embarrassed, thought for a while, and then sighed, "The minimum is 6.5%. Otherwise, not only will the bank not make much money, but it will also be difficult to explain to other shareholders on the board of directors."

This is actually nonsense. Chu Xiangqian has become the largest shareholder of Hang Seng, with a shareholding of 34%.

Together with the shares held by He Zanyuan, He Zanxian and He Wenli, the total shareholding exceeds 51%.

The others present couldn't help but laugh and congratulate.

It seems that everyone understands that Chu Xiangqian is helping Zhao Congyan again.

For Chu Xiangqian, it makes no difference whether he lends money to Zhao Congyan or Hengsheng lends him money.

The 60 ships were exchanged for thoroughbred horses, and these thoroughbred horses were not upgraded, even though they were of good quality.

But there are definitely no championship-level horses, and these horses are of zero cost to Chu Xiangqian.

The number of thoroughbred horses in the world is measured in millions, which means that 40 thoroughbred horses per year are simply not worth the price.

It won’t have any negative impact on yourself.

Only then were they willing to lend it to Zhao Congyan.

And this deal did suffer losses in the short term, but 10 years later, the Zhao family's shipping company would become the second largest shipping company in Hong Kong Island.

As I hold 45% of the shares, I also made a lot of money.

Even if the estimate is low, the estimated value of Zhao's Shipping in the mid-to-late 1970s was at least several billion.

The international shipping company, in which he holds 90% of the shares, now has 81 ships.

The shipping capacity has begun to reach saturation, which is one of the reasons why Chu Xiangqian was willing to provide Zhao Congyan with 30 ships last year.

This year there are 60 ships again. If we divide half of them, our own shipping company will have 111 ships.

This explosive increase in capacity is not only a headache for Chu Xiangqian, but Zheng Shufen and Le Yan have also said more than once that they hope to stop the expansion and develop steadily for two to three years.

Otherwise, expanding too quickly is never a good thing.

Of course, with 60 ships every year, Chu Xiangqian didn’t actually spend a penny, so he didn’t feel any pressure.

Instead, the pressure of finding more shipping business was thrown to Zheng Shufen and Le Yan.

In the past six months, Le Yan has often gone to Taiwan and even to South America to get freight orders.

This will prevent the ship from setting out from Hong Kong with cargo, only to return to Hong Kong empty or with half capacity.

Therefore, Hang Seng was willing to lend money to Zhao Congyian, and Chu Xiangqian was happy to get HK$7700 million in cash.

Moreover, the loan from Hang Seng helped Zhao Congyan obtain 30 cargo ships. These ships will be able to enter Hong Kong Island in no time and become real assets of Zhao’s Shipping.

Investors will have more confidence in Hang Seng's profits in the future.

Chu Xiangqian, who holds a large number of Hang Seng shares, has double the profit.

He Chaosheng, Zheng Yutong, Ye Xiaoli, He Zanyuan and He Zanxian were naturally envious and unwilling to see Zhao Congyian about to take off.

But Chu Xiangqian had already refused twice, and it was obvious that he did not want others to get involved in the shipping industry.

He thought to himself that since Chu Xiangqian had also set his eyes on the three shipping tycoons Dong, Bao and Cao before.

So should I talk to them?
But this thought only lasted for a moment before it was rejected by several people.

Chu Xiangqian himself is the leader of Hong Kong's shipping industry, and it is foreseeable that Zhao Congyan will be the second.

Let’s not talk about how likely we are to win in the end when competing with these two industry giants.

It's not worth it just to annoy Chu Xiangqian.

If you don’t take me out to play in the future, I will regret it to death.

Chu Xiangqian naturally would not forget to comfort He Chaosheng and Zheng Yutong, who benefited the least this time.

But it is impossible for him to take care of both of them all the time. Besides, if he takes care of He Chaosheng and Zheng Yutong all the time, that is not cooperation, but being a nanny for them.

Besides, the brothers He Zanyuan and He Zanxian didn’t get much benefits.

Therefore, Chu Xiangqian's next words were both a reminder to He Chaosheng and a disguised warning.

"Ah Sheng, I wonder if you have ever paid attention to the ups and downs of the spinach and film industries."

He Chaosheng was stunned and shook his head blankly.

Then Chu Xiangqian continued, "Go back and ask someone to look up some information, and you'll find that every time the economy goes down, it's the peak season for the film industry."

The reason is simple. As everyone's income decreases, large-scale entertainment activities will naturally decrease.

Relatively speaking, movies with cheap ticket prices have become one of the choices for many viewers who rarely watched movies in the past.

If the gambling industry wants to stabilize its income when everyone is broke, it has to take the enemy by surprise.

(End of this chapter)