Started from Hong Kong Island

Chapter 101 [Pass the Second Level]

Early September
Changheng Real Estate Company was officially listed on the Hong Kong Stock Exchange, issuing 2000 million new shares and raising 3000 million yuan. On the first day of listing, the stock price rose from 1.5 yuan to 2 yuan, but the rising trend declined on the second day, and it only rose by 0.3 yuan.
Finally, the price stopped at 2.6 yuan. Fortunately, the enthusiasm did not completely disappear and investors still had confidence in Changheng Real Estate Company. Otherwise, investors would sell off and the stock of Changheng Real Estate Company would turn into a blue lantern.

Li Wendi felt a little depressed when he saw the price, worried that the stock price could not be maintained, and his idea of ​​selling the stock would have to be extinguished.

Because the share price of Changheng Real Estate Company is not as stable as it seems. Once a large number of scattered shares appear on the stock market, investors will notice something unusual, followed by a large-scale sell-off. In this case, the stocks in Li Wendi's hands will not be worth much.

Changheng Real Estate Office

The Chen siblings sat on the sofa with ugly looks on their faces. The situation was not as good as they had expected a few days ago. Now it was like people standing on a thin surface of ice. If they were not careful, they would fall off. Changheng Real Estate would face the problem of bankruptcy.

Li Wendi, who was sitting nearby, also felt this atmosphere. He knew that this was caused by the low asset value and the desire for a high market value. The only way was to increase the confidence of shareholders in Changheng Real Estate Company. Now he could only release some positive news.

In fact, going public is the first hurdle a company must overcome, and maintaining the stock price increase rate is the second hurdle. Apparently, the Chen brothers and sisters have not yet passed the second hurdle.

"Mr. Chen, the only way to make the stock price go up is to use the funds from the rights issue to buy high-quality properties, release favorable news, and enhance shareholders' confidence in Changheng Real Estate Company." Li Wendi suggested seriously.

Whether the stock price rises or not has a lot to do with Li Wendi. He holds a large number of Changheng Real Estate Company shares, and he will only sell them if the stock price continues to rise.

"Mr. Li, we know this truth, but including the Wan Chai Building purchased from you, the company's actual asset value is only about 4000 million, while the company's market value is already 6500 million. Once someone exposes this, the stock price will probably plummet, even falling below 1.5 yuan." Chen Jinxi responded in a deep voice.

Li Wendi said calmly, "That's right. You should buy properties. The real estate market is hot now. If you don't buy properties and wait for them to appreciate in value to tide you over, are you just going to sit here and wait for death?"

"Mr. Li, do you have any good projects that you would like to know about? Once Changheng Real Estate passes the review, I will definitely report back." Chen Xingzhou looked at Li Wendi sincerely, as if Li Wendi was the boss of Changheng Real Estate Company.

Li Wendi shook his head and said, "There is no business that is guaranteed to make a profit. Since you have passed the first level by hype, you can also pass the second level by hype. If you operate properly, you may be able to make a fortune."

"Mr. Li means to speculate on the property and take the opportunity to sell it at a high price to make a profit?" Chen Jinxi saw Li Wendi nodded, and then said, "The gap of 2500 million will probably be difficult to fill by speculating on the property, and the stock price will also rise."

"Ms. Chen, who in the real estate business doesn't borrow money from the bank? Isn't the borrowed money also the company's money?" Li Wendi said with a cold smile.

"Is this... deceiving shareholders? If discovered, it will be fatal to the company." Chen Jinxi raised her eyebrows, looking a little hesitant.

After all, risk and profit are directly proportional. Now it seems that this is the only way for Changheng Real Estate Company to get back on the right track.

In fact, this is not the best way. The best way is to find someone to raise funds to make up the gap between the market value and the asset value. Unfortunately, doing so will weaken the Chen brothers and sisters' control over Changheng Real Estate Company and even make wedding dresses for others.

So what seems to be the best solution is not the best option for the Chen brothers and sisters.

Li Wendi has said all this. What business is risk-free? Unless you have a big backer.

The bigger the storm, the more expensive the fish. It has always been like this.

Li Wendi smiled and did not make any further suggestions. In his opinion, the stocks of Changheng Real Estate were not worth his best efforts.

"Mr. Li, what do you think the success rate is?" Chen Xingzhou asked.

Li Wendi calculated and said, "More than 7%, and the second half of the year is definitely the peak period for companies to go public, and all the money of shareholders will be absorbed. Therefore, if we adopt this plan, we must act quickly, otherwise we won't be so sure."

Hearing this, the Chen brothers and sisters fell into deep thought. They knew that what Li Wendi said was true, but they didn't have the courage. Although it was half dead now, Changheng Real Estate was still there. "Okay, let's do what Mr. Li said." Chen Xingzhou said to Li Wendi, "Can I pay half of the payment for Wanchai Building first? The remaining half will be paid before August."

Li Wendi was stunned for a moment, this was a plot against him, but 600 million was enough to release the stock pledge, and he could also buy stocks of other listed companies, and do a favor for Chen Xingzhou at the same time.

So he nodded and said, "Okay! When the share price of Changheng Real Estate rises again, I will choose a suitable time to sell the stock."

After receiving the check for 600 million, Li Wendi left Changheng Real Estate Company, and Chen Xingzhou and his sister began to screen high-quality properties and prepare to pass the second stage.

Li Wendi drove to the trading hall of HSBC Bank with the check, found Wu Xiong, and asked him to help with the release of the mortgage loan.

After nearly an hour, Wu Xiong brought a stack of documents and asked Li Wendi to sign them.

Wu Xiong sorted out the documents and put them on the side of the table. "Mr. Li, congratulations on making 450 million on that building!"

Li Wendi waved his hand modestly and smiled slightly, "Thank you for the compliment! It was just luck. Mr. Wu, can you use the remaining 200 million to buy Sino Properties shares for me?"

"Mr. Li, there are rumors in the market that Sino Land will go public, but the news has not received a positive response from Sino Land. Sino Land's recognition in the Hong Kong market is not very high. I think there will be many high-quality companies listed in the second half of the year. Mr. Li might as well wait for those good companies to go public." Wu Xiong analyzed and suggested.

Li Wendi smiled and said, "Of course I won't let go of any good companies. You know, I have plenty of funds. Those high-quality companies will definitely be popular when they go public. How many can I grab? It's better to choose stocks of companies that are neither good nor bad. Anyway, I can make money."

Wu Xiong nodded slightly. What Li Wendi said made sense. As far as he knew, many companies were jointly buying each other's listed stocks. The number of publicly offered stocks was reduced by at least half, so he really couldn't get much.

"Okay, I'll help Mr. Li keep an eye out for Sino Real Estate. But the 200 million limit seems a bit high. If you buy 100 million, the difficulty will be greatly reduced. What do you think, Mr. Li?"

"Well, use the remaining 100 million to buy shares of the Jardine Matheson Group for me," Li Wendi ordered.

Dairy Farm International has already purchased 500 million shares. Since Dairy Farm only has 350 million shares, 500 million is already the maximum. However, it is different with Hong Kong Land Development, as the number of shares is very large. Li Wendi has previously purchased 150 million shares, so there is still a lot of room for purchase.

"Okay, the current share price of the Landmark Company is 86 yuan. 100 million yuan can buy about 1.1 shares. The last 150 million yuan has already bought 1.8 shares, so the total will reach 2.9 shares." Wu Xiong reported to Li Wendi on the purchase of the Landmark Company's shares.

Li Wendi asked, "What about the milk company? How much did you buy? What is the current price?"

"The share price of the Dairy Farm Company is still 98 yuan. I bought 5.1 shares. There is no upward trend yet." Wu Xiong glanced at Li Wendi and was puzzled as to why Li Wendi bought shares of the Dairy Farm Company. He wondered if Li Wendi had gone crazy?
"Well, how many scattered shares are there in the stock market?" Li Wendi was certainly not satisfied with 5.1 shares. He could make double the profit from this stock.

"It's about the same as before." Wu Xiong said after thinking for a while.

This made Li Wendi ponder. According to the past history, the Hong Kong Land Development Company would have made its move at the end of October. Now it was already the beginning of July. Why hadn't the Hong Kong Land Development Company made its move yet? Was it going to give up on the acquisition?
Soon Li Wendi rejected this speculation because the land in Causeway Bay and Pokfulam was very valuable, and historical records showed that the Hong Kong Land Development Company acquired the Dairy Company without spending much money, so it was unlikely to give up.

"Help me sell the Mobil Corporation stock, and the funds can be used to buy Dairy Farm shares." Li Wendi did not want to miss this classic takeover battle.

Wu Xiong knew that he couldn't persuade Li Wendi, so he sighed and agreed. However, he did not promise to buy all the shares of the dairy company, only that he would try his best.

After all, the situation in the stock market changes rapidly. If Wu Xiong fails to get the promised number of shares, he will be considered derelict in his duty. In serious cases, he will not be able to continue in the financial circle.

(End of this chapter)