Year: I had a good time when I was young

Chapter 918: Limitations of the Times

In addition, Chu Xiangqian was at the Peninsula Hotel at the time and booked a suite for Feifei to stay in.

Although I later bought a duplex for Feifei, the apartment was basically empty.

But not long after, Chu Xiangqian started secretly getting together with Margaret, who was staying at the Peninsula Hotel.

I came into contact with Zheng Shufen, who was working at the Peninsula Hotel at the time, more often.

Zheng Shufen herself was also interested in the handsome Chu Xiangqian, and since her man was gay, the two of them naturally got together.

But even so, Chu Xiangqian tested Zheng Shufen for more than a year, and during that period of time, he even suspected that she had been recruited by MI6.

Let tits stare at her intermittently for two or three years.

Only then did I begin to truly trust her.
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When chatting with Huang Shitong, Chu Xiangqian could clearly feel that this guy was talking about the stock market intentionally or unintentionally.

My evaluation of Huang Shitong couldn't help but drop several levels.

But it’s normal to think about it, as Huang Shitong was just a minor character at that time.

The opportunity is right in front of us, but there are very few people who can remain calm.

And having character flaws is not a bad thing.

As long as he can help himself make money, nothing else is a problem.

So, I simply followed Huang Shitong's words and asked about the preparations that Hang Seng needed to make to establish a securities department.

Huang Shitong immediately became excited.

He began to persuade Chu Xiangqian to establish his own exchange for the Chinese outside of the Hong Kong Stock Exchange.

Chu Xiangqian frowned and thought for a moment, remembering that the second Far East Exchange was founded in 69 by the Li Zhaofu brothers.

Subsequently, the Gold and Silver Exchange and the Kowloon Exchange were established one after another.

It greatly promoted the rise of Chinese capital.

But there are four exchanges in the small island of Hong Kong, and the competition among them is becoming increasingly fierce.

In the early 70s, Li Zhaofu of Far East simply announced to the public that as long as the amount of funds reached 2 million Hong Kong dollars, they could be listed on their exchange.

For a time, even restaurants and teahouses had to borrow money or raise funds for listing.

The other three naturally followed suit, and in just three years, more than 3 new companies were listed.

There are bound to be some companies that are just filling in the gaps.

Some are simply established for the purpose of raising money through listing.

Even the company bought a seemingly good company as a shell one or two months before its listing.

As soon as it was launched, it was highly praised.

In order to earn commissions, stock brokers will do their best to deceive investors.

The more people buy it, the more attention it will attract.

The game of passing the parcel around continued until the bubble burst, when the bankers had already made a fortune, leaving a mess for ordinary investors.

Chu Xiangqian could imagine what would happen if he listed one of his companies.

There is no need to brag. Just based on the company's revenue, its market value can double.

If some good news is released again, it would be easy for the stock price to rise three or four times in a short period of time.

This is also the reason why Huang Shitong was so active in moving closer to Chu Xiangqian.

Not to mention high-quality industries such as shipping companies, Hong Kong Electric, film companies, and department stores.

If the toy company that specializes in producing Barbie dolls were to go public, it would definitely be favored by most investors.

Firstly, the company makes money in US dollars, and secondly, as long as it still has the Barbie doll production license authorized by Chu Xiangqian, it will never have to worry about lack of business.

Thirdly, this company does not have its own factory and all the dolls it sells are outsourced.

During this special period when land prices in Hong Kong Island have plummeted, there is no need to worry that the company’s market value will be affected by the decline in fixed assets.

In the eyes of investors, this is a foresighted move, which further proves Chu Xiangqian's wisdom.

If Chu Xiangqian had put forward the argument of asset lightweighting, it would have been an emerging economic model in this era and would have been sought after.

But what Huang Shitong was interested in was actually a taxi company.

Chu Xiangqian immediately guessed that this guy was indeed paying attention to his company, but he was only aware of it, not understanding it in depth.

Of course, not many people in Hong Kong know about that toy company.

Chu Xiangqian himself doesn't care much about it, and outsiders will pay even less attention to it.

Even the boss of the OEM factory may not know that the boss of the toy company behind the scenes is Chu Xiangqian.

Just because the products are sold to Meiguo and Yingguo, they subconsciously believe that the orders are placed with them by foreign companies.

Chu Xiangqian, however, does not plan to take the taxi company public.

It is foreseeable that once the taxi company goes public, its market value will inevitably skyrocket, and it will receive a large amount of funds to expand the company's scale.

But Chu Xiangqian is not short of money, and he hopes that the company will develop steadily.

Instead, after a period of outbreak, the profit of each taxi will decrease in a short period of time due to the increase in the number of taxis, thus affecting the drivers' income.

Then the market value will plummet, which will not only affect the company's prospects, but also break its own undefeated record.

So Chu Xiangqian thought about it and quickly chose the woodworking factory.

Huang Shitong and his daughter were cursing in their hearts at first, but after listening to Chu Xiangqian saying that more than 9% of the products produced by this company are exported to Japan.

In just four years since its establishment, it has captured 30% of the market for neon Buddhist shrines and Japanese-style small wooden furniture for home use.

A high-quality Buddhist shrine costs $80-100, while a mid- to low-end one costs $20-50.

Even a solid wooden box for storing clothes costs three or four hundred Hong Kong dollars.

From an annual sales volume of over HK$61 million in , the annual sales volume has skyrocketed to over HK$ million today.

Converted into US dollars, it is 600 million.

As for the profits of the woodworking factory and the furniture factory that Aiyuan was setting up, Chu Xiangqian did not tell Huang Shitong and his daughter.

But for Huang Shitong and his daughter, just think about the fact that the woodworking factory's sales have increased 15 times in four years, and you will know how profitable this thing is.

In fact, the woodworking factory does make money, with a profit of around 30%.

But what no one knows is that all the wood used in the wood factory comes from the Novice Village.

In other words, the actual profit can reach 6% to 7%.

Huang Shitong immediately suggested to Chu Xiangqian that he take the company public.

After obtaining more funds, we expanded production and began to expand our business to Southeast Asia.

Chu Xiangqian shook his head and said, "Mr. Huang, the woodworking factory is not short of money. It can even be said that all my companies are not short of money.

Tell me, why should I take the woodworking factory public?

Huang Shitong has dealt with so many companies and wealthy people, and of course he has also encountered bosses whose companies had excellent profit models and were unwilling to go public and give away part of their shares to shareholders.

After thinking for a while, he said, "Mr. Chu, the wood factory is profitable and the benefits should be good, but don't you want to use the shareholders' money to expand the scale of the wood factory and pay the employees?

By the way, will the market value of the lumber mill increase several times, or even ten times, in a few years? "

Of course Chu Xiangqian was willing. He smiled and nodded, motioning Huang Shitong to continue.

Huang Shitong could not help but frown, secretly thinking that this boss who made money faster than the stock market was annoying. With no shortage of development funds, the business model naturally tended to be conservative.

Then they regard shares as more important than anything else, fearing that their family property will be taken away by others, and are even more unwilling to share the dividends of business development with outsiders.

But don’t think about the fact that if your company is not listed, it may be worth only 1 million US dollars.

But after going public, shareholders will not focus on the profit ratio. They will only think that the woodworking factory has annual sales of 6 million US dollars, so the market value of this company is at least million US dollars.

Some investors even think that if profits can be maintained at 20%, then the company is worth estimating using 10 times the sales amount.

After hearing what Huang Shitong said, Chu Xiangqian couldn't help but give this guy a thumbs up.

A valuation of 60 million US dollars, damn, it’s incredible to think about it.

You should know that at that time the market value of Swire Properties was only HK$7.5 million.

If what Huang Shitong said is true, the market value of the woodworking factory is 3.42 million, which is almost half of that of the Swire Properties.

However, although Swire Properties is the largest real estate developer in Hong Kong Island, it also owns a lot of land.

But to put it bluntly, he is just the largest contractor.

We sell so many properties every year and make a profit from the difference in land price and a few percent profit after building the buildings.

If every building built retains commercial space on the ground floor for rent, the huge assets owned by Swire Properties will make this company the largest landlord in Hong Kong Island.

If you persist for ten years, it is normal for the market value to double or triple.

Among the largest real estate developers in Hong Kong Island in the future, there are several who adopt this business strategy.

Otherwise, the market value would not be worth hundreds or even one or two hundred billion US dollars.

But the property is Yingguo's company. For them, the safest approach is to transfer the money they earn back to Yingguo.

Naturally, a large number of properties will not be retained.

To put it bluntly, it is to plunder the wealth of Hong Kong Island.

Moreover, the larger the real estate company, the more it will underestimate the future of real estate.

Chinese capital, on the other hand, regards Hong Kong Island as its base, so their business strategies will of course be different.

Chu Xiangqian couldn't help but start thinking, should he take advantage of the drop in land and housing prices in recent years and use the name of the woodworking factory?

Build more factories on Hong Kong Island.

On the one hand, it expands the scale of production, even if the wooden products sold to Southeast Asia are not profitable.

But after the wood in the Novice Village is processed, its value doubles or triples compared to simply selling the wood.

So I could fully accept that the woodworking factory did not make money when it expanded to Southeast Asia.

By the way, he made money from the high-end furniture business he jointly invested in with Ehime.

Then engage in a price war with Japanese counterparts.

As long as we defeat the local furniture manufacturers in Neon, the money lost now can be doubled back in the future.

But Chu Xiangqian didn't do this before because he was worried that the Japanese would intervene through administrative means.

Once a de facto monopoly is formed, no country will tolerate an industry of its own being completely controlled by foreign forces.

At the same time, Japan itself is a major importer of timber. If it were to defeat its local competitors, timber merchants from Europe and the United States would also want to destroy its own woodworking factories.

When this question came out, Huang Shitong and his daughter were dumbfounded.

When it comes to stocks, this father and daughter can talk to Chu Xiangqian all day long without repeating themselves, but their vision is limited to the small territory of Hong Kong Island.

Who would have thought that there would be so many troubles in international trade?
However, Huang Shitong, Huang Huilin, and seven or eight other men in suits who had not left and were sitting in the restaurant listening silently, looked at Chu Xiangqian differently again.

I thought to myself, no wonder he could become the richest boss in Hong Kong in such a short time.

His vision and perspective are simply not on the same level as mine.

People like me only think that the more money we make, the better, and the bigger the company, the better.

They never thought that once the scale reached a certain level, it would cause concern in other countries, which would then use administrative means to suppress it.

They would not even think that the company would have to face suppression from capital in other industries.

Huang Shitong was silent for a while, shook his head helplessly, but heard a voice coming from the door.

"Old Huang, you're always talking about how great you are. How could such a simple test stump you?"

Huang Shiyi knew it was Huo Jingliang as soon as he heard him, but when he heard him say that this was a test from Chu Xiangqian, he could only suppress his irritation and dissatisfaction.

He stood up together with Chu Xiangqian and nodded to Huo Jingliang who was striding over.

Chu Xiangqian smiled and took the initiative to extend his hand, "Mr. Huo, what do you think?"

Although Huo Jingliang is overbearing and sometimes arrogant, it depends on the person.

When facing Chu Xiangqian, his wealth and status at that time were actually not even as good as Huang Shitong's. How could he dare to show off in front of Chu Xiangqian?

He hurriedly held Chu Xiangqian's hands with both hands, and said with a bright smile, "No, Gao Jian, and I believe Chu Sheng actually has a way to deal with it.

However, I do have some opinions, please don’t blame me if I’m wrong.”

Chu Xiangqian smiled and nodded, "I like people with ideas, and you should have heard that I only look at people when investing, not their background, wealth, or status."

Huo Jingliang was overjoyed. The fact that Lawyer Huang approached him was already a surprise and something he had been looking forward to.

Now that they met, Chu Xiangqian, the big talker, hinted so clearly.

If you still don’t understand, you are a fool.

He smiled and said, "Mr. Chu, my suggestion is very simple. Since the company needs to develop, competition is inevitable.

However, once they develop to a certain scale, they will snatch away other people's market and will inevitably face suppression.

Then get into your opponent's organization, find a suitable person, or even cooperate with more than a dozen companies.

Or they may acquire them secretly and sell them to companies in Japan and Southeast Asia.

Although you have to share a portion of the profits, you actually make more money because you have a larger market share.

The most important thing is that once the sales data of the woodworking factory under your name increases several times, the market value will also increase several times.

So, going public is the only way out.”

Chu Xiangqian burst into laughter after hearing this.

This guy thought the same thing as I did. I had thought of this idea as early as when the woodworking factory was being built.

Of course, this idea was not thought up by Chu Xiangqian himself, but by the future Chinese wood carving companies after suffering suppression from the Japanese government.

A solution is slowly figured out in the face of setbacks.

However, in the 8s and 90s, it was a fantasy for China to think of making money in the stock market by increasing market value.

Therefore, China's wood carving industry cannot reap the biggest benefits.

Chu Xiangqian could even set up export companies in Meiguo and Yingguo and export wooden products to Japan in the name of enterprises from these two countries.

By then, the forces controlling the Japanese wood market will be Hong Kong Island, Meiguo and Yingguo.

Neon faces greater pressure as it tries to regain profits and markets in the wood products industry.

Patting Huo Jingliang's arm, Chu Xiangqian thought and said, "Does Mr. Huo need investment? I should be a very suitable partner."

(End of this chapter)