Started from Hong Kong Island

Chapter 82 [Earn 082 a day]

Continuing to read, Li Wendi saw the news that the Hong Kong Cross-Harbour Tunnel was about to open to traffic. Although there was no large-scale report, it was second only to the coverage of the Wharf Holdings' acquisition of the Star Ferry. The entire article talked about the impact of the cross-harbour tunnel's opening to traffic on the Causeway Bay area.

This reminded Li Wendi of the Battle of Niu in his previous life, which was also closely related to the opening of the Cross-Harbour Tunnel, because everyone knew that once it was connected to Tsim Sha Tsui, Causeway Bay would usher in substantial development.

Before the cross-harbour tunnel was opened to traffic, he planned to purchase some properties and land in Causeway Bay. He was not concerned about how much he could buy, after all, the land in Causeway Bay was about to appreciate in value and was a good investment project.

The only problem is that Li Wendi doesn’t know exactly when Causeway Bay started to appreciate rapidly.

If too much capital is tied up in the land and properties in Causeway Bay, it will obviously hinder the development of his company. It seems that the loss outweighs the gain. His company is too weak and its funds are too limited.

After careful consideration, Li Wendi decided to take out a loan to buy a large number of Dairy Farm International shares, and use another part of the stock market funds to buy stocks that had risen significantly and could be sold, so that the profits earned could offset the interest on the loan as much as possible.

It is only April now, and there is still half a year until November. The interest for a loan of 4 million will probably be more than 11, or more than 500 in interest per month. Such a calculation makes Li Wendi gasp. It's not that he can't accept it, but he doesn't want to waste money.

The total number of shares of Dairy Farm International is too small, only 350 million shares. If Li Wendi wants to get more than 4%, he can only act now. Otherwise, when the Landmark Group takes action, it will be difficult for him to grab so many shares.

So it seems that these interests cannot be avoided.

Soon, Li Wendi put these thoughts aside and continued reading the newspaper to find out what happened in Hong Kong yesterday.

10 days later

In the early 70s, Hong Kong shipping entered the era of containerization and Kwai Chung Container Terminal was put into use.

In 71, the Blue Chimney Warehouse ceased operations and its site was sold to New World Development Company for a staggering price of 1.37 million.

Blue Chimney is a shipping company under the Swire Group. The site is a dilapidated dock and factory in Tsim Sha Tsui, but the geographical location is extremely advantageous, facing Central across the Victoria Harbour.

The Swire Group owns more than just the Blue Chimney wharf. There is also the Swire Dockyard in Quarry Bay, Hong Kong Island, which is larger than the Blue Chimney in Tsim Sha Tsui. At this time, the Swire Group announced the closure of the Swire Dockyard in Quarry Bay, and the dock may be withdrawn from Hong Kong.

As soon as the news came out, investors who were optimistic about Swire Group's stocks were excited and started selling Swire Group's stocks. Suddenly, Swire Group's stock price fell sharply, from 6.6 yuan to 5.8 yuan in one day.

Li Wendi felt that this was a trick played by the Swire Group, which was trying to make a fortune in the stock market, because in its previous life, the Swire Group developed the Swire Dockyard land into a small town and made a fortune.

Perhaps the intention now is to earn start-up capital for this piece of land from the stock market. In this era when financial regulations and laws are not yet perfect, such an approach will naturally not cause any big problems and will only be criticized afterwards.

The growth rate of Wharf Holdings' share price slowed down a lot. Li Wendi felt that he should choose a suitable time to sell Wharf Holdings' shares and buy Swire Group's shares. This was an opportunity to make a fortune and he must not miss it.

Three more days passed, and Li Wendi also stayed in the trading hall for three full days, because he had to grasp the real-time dynamics of the two stocks in case any unexpected situations occurred that would be difficult to deal with in time.

The share price of Wharf Holdings only rose by 0.1 yuan yesterday, so Li Wendi believed that the market trend of Wharf Holdings was over and it was time to sell the stock.

"Mr. Li, are you going to sell Wharf Holdings' shares?" Wu Xiong asked. Li Wendi nodded, "Yes, help me sell all of them right away, and make sure to get the funds back before today."

"You hold 36.7 shares of Hutchison Whampoa, accounting for % of the total share capital. The total amount is not large. Even if you sell them all, it will not cause market turmoil. You should be able to sell them all before the afternoon begins." Wu Xiong analyzed.

"Okay, I'll come back this afternoon." Li Wendi just stood up and asked, "What is the share price of Swire Group today? What's the trend?"

"5.2 yuan per share! It's still on a downward trend, but the decline is not very serious. Maybe it will stop falling the day after tomorrow." Wu Xiong felt that Li Wendi wanted to buy shares of Swire Group, otherwise he would not have asked this question.

Li Wendi nodded and left the trading room.

At around 2:30 in the afternoon, Li Wendi came to the trading hall again, and Wu Xiong also hurried over.

"Mr. Li, all of your Wharf shares have been sold. Among them, 5.88 shares were bought at 3.4 yuan, and the remaining 30.82 shares were bought at an average price of 4.9 yuan, a total of 36.7 shares, which were sold at 6.5 yuan. After deducting expenses, the funds recovered were 224.25 million yuan, the profit was 52.49 yuan, and the profit margin exceeded 30%." Wu Xiong reported.

Although the profit margin this time is not high, the amount of capital invested is relatively large, so the amount of money earned is also good.

"Okay, use all your funds to buy Swire Group's shares for me. You can buy slowly this time and don't alert other shareholders." Li Wendi ordered. He was not afraid of arousing market vigilance. Investing more than 200 million yuan in a large listed company like Swire Group is like a drop of water falling into a pond without splashing any waves. At most, there will be some ripples. He just wanted to buy it at a lower price.

"Mr. Li, if you buy it tomorrow, the stock price will be lower and it will not affect your funds to buy it." Wu Xiong suggested.

Li Wendi thought about it carefully and seemed to be too anxious. The recovery of Swire Group's stock price required the Swire Group's senior management to release positive news. It should not have fallen to their ideal price yet.

"Well, then you keep an eye on it for me and buy them all before the market closes tomorrow." Li Wendi said.

"Yes! I will do it, don't worry." Wu Xiong promised.

At about 4.9:45.77 p.m. the next day, Wu Xiong called Li Wendi and told him that all the funds had been used to buy shares of the Swire Group. The average purchase price was yuan, and the total amount was shares.

Based on the stock price before the previous decline, Li Wendi could make a profit of about 77.8 yuan. However, in Li Wendi's opinion, the top management of Swire Group would definitely not be satisfied with the stock price of 6.6 yuan, and it might rise to more than 7 yuan.

On April 4, Swire Group announced that the Quarry Bay Dockyard will be developed into a large residential area equipped with basic facilities such as shopping malls and schools.

In fact, these two pieces of news should have been released at the same time, but unfortunately the Swire Group needed a huge amount of start-up capital, which had to be earned from the stock market.

Although it attracted a lot of criticism from shareholders, it did not affect the surge in Swire Group's share price, which rose by 18% in one day, which was somewhat jaw-dropping.

Of course Li Wendi was very happy. He earned 40 yuan in just one day.

The upcoming loan interest was then collected.

(End of this chapter)