Started from Hong Kong Island

Chapter 221 [Union Party]

While Li Wendi was worried and thinking, Zhang Wentao walked in quickly with a little joy on his face. "Boss, as you expected, many medium-sized enterprises are beginning to run into operational difficulties. I just don't know how long this oil embargo will last. As long as we can hold out until the middle of next year, we can take over a medium-sized enterprise at a very low cost."

Li Wendi took the information and read it carefully, his expression changing constantly, as if the information was not to his liking.

In the past, he overestimated the strength of Changxin Real Estate Company and misjudged the situation of those real estate companies. Now he can consider taking action against some companies with poor qualifications, but how to solve the debts of these companies is a big problem.

If Changxin Real Estate Company is allowed to bear these debts, it will undoubtedly add a huge mountain to Changxin Real Estate's back. Moreover, the time when the local market will fully warm up is 76, which is still more than 2 years away. The interest may overwhelm Changxin Real Estate Company and make it a meal for others.

"It's not difficult to take it over. The biggest challenge is the subsequent operational issues." Li Wendi closed the document and looked at Zhang Wentao expressionlessly. "We don't know how long the crisis will last. If we act rashly, it will only increase the pressure on Changxin Real Estate Company. So let's put the acquisition aside for the time being. We will change our current plan and do our best to find more funds for the company."

Zhang Wentao looked a little dumbfounded. Why did the boss suddenly change the plan? Did something big happen?
"Do you think we still can't reach the bottom? Do we still need to wait for an opportunity?"

Li Wendi nodded. "The oil embargo is likely to trigger a global economic crisis. As the financial center of the Far East, it is impossible for Hong Kong to remain unaffected. Those companies will face a greater baptism. What Changxin Real Estate needs to do now is to preserve its strength and wait for an opportunity."

"Yes!" Zhang Wentao looked thoughtful. He still had to continue collecting information from other companies, but he didn't need to be as anxious as before. He could take his time.

next morning
All major newspapers have published reports on the "Hutchison Group's bankruptcy incident". As Hutchison's boss Qi Dezun has been keen on securities investment in recent years and misjudged the situation, the Hutchison Group still holds a large number of company stocks, including some companies that have gone bankrupt, such as Poly Construction Company, which has caused considerable losses to the Hutchison Group.

Although Hutchison Group is a public company (without family control), the head Boss Qi Dezun has great power, and even the board of directors finds it difficult to restrain him. However, Qi Dezun has caused such a loss at this time, so he must be held responsible and his resignation is inevitable.

The loss involved more than 1 million yuan in funds, which was difficult for even Hutchison Group, one of the four largest trading companies in Hong Kong, to withstand. At this time, Hutchison Group was already on the verge of collapse.

According to Li Wendi's guess, Qi Dezun should have taken the opportunity to buy a lot of low-priced stocks in March. He also believed that it was a short-term technical adjustment of the stock market and that the high prices of previous periods would soon return to normal. Unfortunately, this did not happen.

According to the original history, Li Wendi remembered that Hutchison Group would suffer a loss of 74 million yuan in 2. In order to prevent Hutchison Group from going bankrupt, Qi Dezun had no choice but to accept HSBC's taking advantage of the situation and bought new shares issued by Hutchison Group worth 1 million yuan at a price of 1.5 yuan per share, becoming the largest shareholder of Hutchison Group in one fell swoop.

However, HSBC was just a bank and according to regulations it could not directly manage the HSBC Group. So HSBC boss Stephen Simpson invited the famous "company doctor" Willis to be responsible for the management of the HSBC Group.

Willis was not an easy person to deal with. After achieving some success, he wanted to control the Hutchison Group as a professional broker and get rid of the control of HSBC. This led to the classic case of Li Jiacheng's acquisition of Hutchison Whampoa.

"A big drama is about to begin." Li Wendi couldn't help but sigh while holding the newspaper.

It would be a lie to say that he had no interest in Hutchison Whampoa (Hutchison Group and Whampoa Dockyard Company merged to form Hutchison Whampoa in 1977). However, Wendi Li did not have the strength to merge two large British groups (Wharf and Hutchison Whampoa). Moreover, the internal situation of Hutchison Whampoa was very complicated, and the senior management were almost all foreigners. It would require great patience to intervene or control it.

Of course, it can also be managed by professional brokers like HSBC. As long as Li Wendi wants dividends, the original intention and effect of acquiring Hutchison Whampoa will be greatly reduced. Therefore, Li Wendi prefers to acquire Wharf Holdings.

But Harbour City, owned by Wharf Holdings, was a money-eating beast. In the early 80s, Li Wendi had no chance of getting any dividend profit from Wharf Holdings. In other words, Li Wendi had to pay a large amount of acquisition funds and could not get it back in a short time.

And there is also a rival here, Bao Yugang of Global Shipping Company, a super boss in the cash flow world.

China Coal! (Full name: China Gas Company Limited.)
Li Wendi looked at the name appearing in the newspaper, his eyes sparkling with a gleam of light, this is good stuff!
Towngas Company Limited was established in 1862, registered in the United Kingdom and listed in Hong Kong through a rights issue in the 60s.

This company monopolized the gas supply in Hong Kong. It was a franchise company similar to Hong Kong Electric Light. Its asset value was not high, but it was a cash cow. After all, which family in Hong Kong didn't use gas? The chairman of the board of directors of China Gas Company was John Madden, chairman of Wheelock & Company. The four directors were Qi Dezun, the boss of Hutchison Group, Kou Cha, chairman of Kwan Yick Cang Co., Li Mingze of the Li family, and Li Fushu of the Li family. Hutchison Group controlled 4% of the shares of China Gas Company and was the second largest shareholder of China Coal.

Li Wendi had the idea of ​​taking advantage of the situation, so he immediately called Wu Xiong to inquire about the current share price of China Coal Corporation. After getting the answer of "2.3 yuan", he hung up the phone.

At that time, the share capital of China Gas Company was 8 million shares and the market value was 2 million yuan. At its peak, the stock price was once pushed up to 6 yuan and the market value once exceeded 4.8 million yuan. This was the result of the China Coal Board of Directors' lack of attention.

Li Wendi calculated that it would cost at least 3300 million to get these shares from Hutchison Group. Naturally, he did not have that much money. Although he could ask for a bank loan, the interest would also be a considerable amount.

So after much hesitation, Li Wendi decided to take a look at the situation first before visiting Qi Dezun. After all, Hutchison Group has not yet reached the point of desperation.

In the afternoon, Sing Tao Daily rarely published a noon edition. The biggest news was that ParknShop supermarket, which was established a few years ago, has become the biggest burden of Hutchison Group, with losses exceeding 3000 million yuan in half a year.

Such heavy news shook the market, and Hutchison Group’s share price fell again, by nearly 5%.

Department stores and supermarkets are money-burning businesses. If you want to make money, you can only achieve a monopoly. Otherwise, not making a loss is already the best outcome.

Qi Nian Newspaper
Li Wendi was holding a red invitation letter in his hand, which was sent by the staff of the Hong Kong Newspaper Industry Union, inviting He Qijun to attend the union's dinner.

The corners of Li Wendi's mouth curled up slightly, revealing a smile of contempt. He thought that the industry was very powerful and would not compromise with the Qinian Newspaper (it had ignored the warnings of the trade union before). Who would have thought that now they would forget their grudges with a smile, and it seemed as if the previous events had never happened.

It seems that in a place like Hong Kong, the rule has always been that the strong are respected.

He Qijun rolled her eyes. She could understand Li Wendi's smile and said unhappily, "It's not a good idea to invite us. What if everyone comes to question us? It will be a very ugly scene."

"." Li Wendi's smile froze in vain. Could it be that disgusting? The employees of the union seemed to be all intellectuals. They couldn't be so ignorant, right?

However, thinking of the events involving literati in history, as the people said, "scholars are the worst", Li Wendi couldn't deny this possibility.

"Do you want me to go with you? It won't be so embarrassing if there are more people? Or do you think that I, an uneducated person, can say some unpleasant things to you?" Li Wendi asked with a smile. He had already guessed He Qijun's purpose, which was nothing more than to go together.

He Qijun glanced at Li Wendi and pursed her lips and said, "So are you going or not? If not, I'll find someone else."

Li Wendi walked over and put his arm around He Qijun's shoulders. He knew that this woman was still angry about the "Junfu Jewelry Company incident". If she didn't need a favor from him, He Qijun would probably still be reluctant to pay attention to Li Wendi.

Faced with this kind of "affair" issue, He Qijun is already considered a generous person. After all, understanding is one thing, and acceptance is another.

"Of course I have to go. If they get aggressive, I can protect you. Otherwise, people will say that the Qinian Newspaper is strong on the outside but weak on the inside."

(End of this chapter)