Started from Hong Kong Island

Chapter 398 396 [Preparation]

Hengxin Investment Company
Li Wendi sat on a leather chair, while Lin Dongmei stood behind him, massaging his shoulders, and said, "In October, the Hang Seng Index has broken through its 10-year high, rising to 73 points. Should we continue to wait for it to rise?"

"I heard that the real estate market has entered a period of adjustment. The stock market and the real estate market have always influenced each other. I am worried that the Hang Seng Index will fall. If so, we will suffer losses."

Li Wendi thought carefully about Lin Dongmei's words and said, "Then let's sell them all."

Lin Dongmei bought 912 million yuan when the Hang Seng Index was 5 points, of which 3 million yuan was a ten-fold leverage, so she could double her profit, that is, 5 million yuan.

Today, Hengxin Investment Company has assets worth more than 30 billion yuan. Although it is not listed, its strength is no worse than some of the top real estate companies in Hong Kong, and it may even be stronger, because most of Hengxin Investment's assets are cash, stocks, and securities that can be turned into mobilized funds at any time.

"How is Li Xi? I haven't hugged her for some time." Li Wendi asked with a smile.

Li Xi is his and Lin Dongmei's daughter, otherwise Li Wendi would not be willing to hand over a company with such assets to Lin Dongmei.

"Your daughter is very naughty now. She makes a mess of the house. Three servants are needed to follow her around, or she disappears in the blink of an eye." Lin Dongmei complained, but her face was full of joy.

"It would be good if she grows up a bit. Anyway, her daddy has so much assets that it will be enough for her to deal with." Li Wendi said jokingly.

Lin Dongmei rolled her eyes at Li Wendi. She knew very well that only Hengxin Investment Company would have a share for them and her daughter. As for other industries, she would probably have to negotiate with He Qijun. As for whether she could get them or not, it would depend on Li Wendi's intention.

"This is the kingdom you worked so hard to build. How can you allow her to squander it? Let her have fun for a few years. When Hengxin Investment is on the international track, I will teach her myself."

Li Wendi said, "If you are interested, you may settle down in Singapore, but we want to have a son first."

Although she knew that Li Wendi was joking, Lin Dongmei was very interested in the Singapore that Li Wendi mentioned. It would be one of the financial centers in Asia, not much worse than Tokyo, Japan.

"Really? You're not lying, are you?" Lin Dongmei walked around the chair and sat on Li Wendi's lap.

"Of course it's true. I've asked Starlight Real Estate Company to scout the area. With Cheung Kong Group taking the lead, they should be no worse off than Sun Hung Kai Properties in Hong Kong." Li Wendi placed his hand on Lin Dongmei's chest.

"Then you are not allowed to go back to Repulse Bay at night. You have to go to the villa halfway up the mountain to accompany me in giving birth to my son."

"Okay, dear!" Li Wendi said with a wicked smile.

After leaving Hengxin Investment Company, Li Wendi went to CITIC Bank and began to sell the 10 billion yuan of Hang Seng Index that he had bought with a ten-fold leverage. This 10 billion yuan investment could also bring in double the profit.

The 20 billion yuan loan owed to Citibank has long been repaid. Li Wendi now has 2 million US dollars in cash at Citibank and 4.5 million US dollars in stock market investments, mainly in technology stocks, including Apple, HP, and a few bank stocks.

Today, these shares have appreciated to US$6 million, and there is still a lot of room for appreciation.

As for investment in Singapore, the Changxin Group is targeting Yeo Hiap Seng Group and Haw Par International. It has now controlled three small commercial buildings and two hotels in Singapore, spending 3 billion Hong Kong dollars, of which 2 billion was a loan from Citibank.

Zhang Wentao was holding a document while reporting his work. "According to the information fed back by the marketing department, the loans for buying houses on the market have exceeded 155.56 billion yuan. Many banks have begun to lend cautiously. They need to see whether the mortgaged buildings are worth the money and the repayment ability of the borrowers. I estimate that the property market will move to the next stage. Should our group be prepared?"

"Since the banks are worried about the collapse of the property market, we are a real estate company and have always depended on the banks for our livelihood, so of course we have to follow suit," Li Wendi said with a smile.

Changxin Group has made a lot of money in the real estate market in the past two years. Even if it owes the bank billions of dollars in loans, it does not worry about not being able to repay it, because the debt ratio accounts for about 15% of the market value and about 10% of the actual asset value, which is an extremely low debt ratio. It can be said that the group can repay it at any time.

"How is the market for those shopping malls and shops? Have they been greatly affected?" Li Wendi asked. Changxin Group and its subsidiaries own many shopping malls and shop properties.

"The impact is relatively small. There are still many international speculators speculating in shopping malls and some stores with good geographical locations, and their scale is not small," said Zhang Wentao.

Li Wendi thought about it. It was only October now. He had never expected that the Hong Kong government's real estate adjustment signal would have such a big impact on the market. "If we sell a batch of scattered shops and office buildings, will there be a loss compared to the beginning of the year?"

Zhang Wentao replied, "According to the current feedback, we should be able to make a lot of money."

"Then sell it. The number of residential sites should be gradually reduced. Reducing it to 9 is the most appropriate." Li Wendi continued, "It can be completed in the first half of next year. There is no need to act too drastically and let the industry notice it."

The Cheung Kong Group has become one of the trends in Hong Kong. Some real estate developers act according to the actions of the Cheung Kong Group, so Li Wendi is worried that it will have unnecessary impact on the market.

"Are we being too cautious, boss?" Zhang Wentao believed that the adjustment was only temporary and that housing prices would eventually go back up and even set a new record.

"As a family with a large business, we need to be cautious. We would rather make less money than take too much risk," said Li Wendi. "Stability without forgetting development, development without forgetting stability, this is the group's new code of conduct. We now have a large amount of investment in Singapore, so we don't want too much pressure from both sides."

Then Li Wendi went to the Wharf Group and summoned the chief steward, Mai Lisi.

"The 9.8 million yuan in the company's account has been fully diversified into investments, controlling three small and medium-sized real estate listed companies, as well as stock market investments." Mai Lisi reported the current situation to Li Wendi.

"All the properties of these companies will be sold, except for some core properties," Li Wendi arranged.

MacIsley was not very familiar with the local city. Wharf Holdings was involved in multiple industries, and with Li Wendi at the helm, MacIsley focused his energy mainly on industries such as Harbour City, tram companies, and port terminals.

"Okay, I'll let them know. Does the boss have any other instructions?" said Mai Lisi.

"Start selling off the investment stocks slowly." Li Wendi is worried that the number of stocks held by his company is too large and he will not have enough time to sell them next year.

(End of this chapter)