Hong Kong Island's New Rich Era

Chapter 291 Legendary Color
Thursday, May 5th.

ATV Group and Cheung Kong Company held a press conference in Hong Kong to announce the details of the transaction, which caused a public outcry.

No one had expected that the Liu family and the Li family would cooperate, and no one had expected that the Asia Television Group would acquire Dragon TV.

Dragon TV started anew, becoming affiliated with Asia TV and operating independently.

In fact, it works closely with the group and can obtain the convenience of purchasing program and drama copyrights from ATV Group (financially independent accounting).

Of course, many people think that the price paid by Asia Television Group for the controlling stake in Dragon TV, which is valued at nearly HK$50 billion, is worth it.

Asia Television President Chow Sau-yee answered: "The Group is interested in the potential value of satellite TV, because Satellite TV already has experience and influence in Asia and covers a wide range. After Satellite TV leases a second satellite, the coverage will be even greater.

Dragon TV and Asia TV will form a satellite TV network to expand their influence in Asia, spread the "Hong Kong culture" to all parts of Asia, and drive the growth of Hong Kong's overall cultural industry."

The attentive media immediately grasped the key point, that is, "Hong Kong culture" appeared in the mouth of the president of ATV.

Everyone in Hong Kong knows that Liu Zhicheng is the godfather of "Hong Kong culture" and he himself hopes to make "Hong Kong culture" a pillar industry in Hong Kong.

He has always been very supportive of the development of this industry, and has personally participated in it and established relationships with the Hong Kong government and society.

In the past two years, Hong Kong culture has developed very rapidly, almost catching up with the influence of "Hong Kong films" in Asia in the 1970s and 1980s.

Tseung Kwan O, Asia Television City.

As ATV City covers an area of ​​230 million square feet (Taikoo Shing has the same area), it is sufficient to meet the office and recording needs of ATV Group after 2020.

Therefore, Dragon TV will soon move to the 'ATV Building' for office and recording.

At this time, ATV Group owns 10 channels, 8 satellite channels and 2 radio channels. More importantly, it has the greatest influence in Asia.

AsiaSat-1 is Asia’s first communications satellite, Asia Satellite TV is Asia’s first satellite TV station, and Dragon TV is Asia’s second satellite TV station.

Japan only started to dabble in satellite TV this year, and South Korea does not even have the conditions to establish a satellite TV station.

In fact, overseas viewers of satellite TV are generally divided into two channels:
First, the number of people who privately install satellite receivers is very small compared to the number of television viewers in the country.

But satellite TV has a wide coverage, so the audience of Asia TV is larger than the population of South Korea.

Second, every country’s guesthouse will install satellite receivers. There are also many three-star guesthouses in the mainland that host foreign guests and some other countries’ institutions and departments that have installed satellite receivers.

In short, if satellite TV is developed, the advertising fees will still be much higher than those of wireless TV stations.

Arriving at the ATV building, I couldn't help but feel a little excited. I didn't make much money, but I felt very present. This was how Liu Zhicheng felt about the ATV Group.

The ATV building has an area of ​​80 square feet and can accommodate 3000 to 4000 people working in the office at the same time without appearing crowded at all.

The ATV building is not tall, with only 28 floors, but each floor has an area of ​​nearly 3 square feet.

In May, a recording building in Asia Television City was put into use. As for the remaining two recording buildings, they will be put into use in the second half of the year.

The 'ATV Film and Television Base' will be completed in the first half of next year, which will improve the overall quality of dramas and movies.

Liu Zhicheng came to the office and asked his assistant to call people one by one.

The first person to arrive at the office was ATV's Chow Sak-yee.

The acquisition of Dragon TV only requires spending nearly HK$15.6 billion in cash and ATV shares worth HK$15.6 billion.

Cash is a short-term debt borrowed through banks, and ATV does not want to have huge long-term debt.

Liu Zhicheng asked: "How is the progress of the private placement of new shares?"

The so-called "targeted" means issuing new shares to the Li family and Cheung Kong Holdings and paying 15.6 billion yuan.

Zhou Liang Shuyi said: "Well, it is progressing smoothly and is expected to be completed next week. The short-term loan of 15.6 billion Hong Kong dollars has also been approved, and I plan to pay them immediately."

Liu Zhicheng nodded and immediately said, "Do you know why it's a short-term loan?"

Zhou Liang Shuyi replied: "I know, the stock market is hot right now, and the boss is planning to raise funds through offering shares to raise cash to repay this fund!"

"Right, we'll arrange a rights issue in the next two months to raise HK$20 billion."

"Okay, I know!"

Rights issue, bonus issue, convertible bonds, etc. are actually similar forms, but the details are slightly different.

After a while, several core senior executives also came to Liu Zhicheng's office, and everyone looked at Liu Zhicheng with admiration.

Although these people are television professionals, they are not experts in capital operations. Liu Zhicheng expanded the Asia Television Group with ease, which amazed everyone.

Who would have thought that Li Chaoren’s family would sell Dragon TV!
After all, Dragon TV is catching up with Asia TV, and everyone thinks it will surpass Asia TV this year. After all, it has four channels and will soon be able to broadcast Cantonese programs.

No one dreamed that it was Li Zekai who advocated the sale because he wanted to start his own business and needed a large sum of capital.

This transaction made Li Zekai famous in Hong Kong, because he sold Dragon TV at a high price and made three times the profit in less than three years. He can be said to be a real "little superman".

Little did these people know that Liu Zhicheng was paying a huge sum of money for the horse's bones and directly offered a price that Li Zekai could not refuse.

After all, Liu Zhicheng knew very well that the only way to get the Li family to sell was to pay a large sum of money and get ahead of Australia's Murdoch.

Of course, everyone knows that Liu Zhicheng is the founder of "Hong Kong Culture" and has devoted himself to expanding the Asia Television Group at all costs.

“For the time being, Chen Qingxiang will still be the CEO of Dragon TV. We need to boil the frog in warm water and slowly change the program format of Dragon TV.

The first thing that needs to be changed is Dragon TV's self-produced programs. You can come up with a plan later. As for the broadcast channels, we will talk about it later. For now, keep the status quo."

Zhou Liang Shuyi nodded and said, "Okay, we get it. Dragon TV's self-produced programs are not very good. They need to be gradually changed according to our model and add more Hong Kong cultural elements."

Zhao Zhenqiang said: "In this case, we need to increase our investment in TV series again. It is estimated that it is reasonable to shoot about 35 to 40 series per year."

在亚视没有起来前，无线每年大概拍摄20~25部；而如今亚视每年拍摄在30部~35部，再增加5部也是合理的。

Liu Zhicheng said: "The two satellite TV stations' self-produced programs must be differentiated. Asia Satellite TV can focus on 'music' and 'idols', while Dragon TV focuses on 'dramas'.
Later, we will provide two satellite channels to broadcast news and variety shows. In other words, in the end, there will only be two channels broadcasting European and American programs. "

The focus is not exclusive. After all, Hong Kong culture has not yet been fully developed and is still in its foundation stage.

The late 1990s was probably the time when Hong Kong culture was fully developed.

Everyone nodded!
Zhao Zhenqiang raised a question: "Boss, is it time to put Hong Kong culture's variety shows on the agenda?"

Although "Music Bank" is considered a Hong Kong pop program, it does belong to the music category.

Liu Zhicheng said: "We can make more programs about Hong Kong idols, such as celebrity interviews, but they are still essentially 'music' and 'idol' programs.

As for Hong Kong-style programs, you need to explore them slowly, but don’t rush into it. For now, our programs should still focus on ‘international programs’ and ‘traditional Hong Kong-style programs’.”

International programmes are designed to sell copyrights and increase global influence, while 'old Hong Kong programmes' (The Prize Master, Comedians Save the Earth) cater to veteran audiences.

After a few years, when there are more and more Hong Kong idols, Liu Zhicheng will launch "X-an", "Infinite Challenge", "Family Outing", "Runngan" and other "Hong Kong variety shows".

These programs were very familiar to Liu Zhicheng and took no effort at all.

"Okay, we will definitely develop steadily!" Zhao Zhenqiang said admiringly.

Liu Zhicheng nodded with satisfaction. The entire ATV Group was ultimately serving the "Hong Kong culture", which was Liu Zhicheng's original intention.

The ultimate goal is to export "Hong Kong culture", create more practitioners and jobs, and earn huge foreign exchange. It will become a pillar industry for Hong Kong.

This kind of career did not bring Liu Zhicheng happiness in terms of money, but rather spiritual happiness and a powerful influence.

That's why he enjoys participating in it over and over again.

Of course, every time he came to ATV Group, he felt very comfortable enjoying the admiration of handsome men and beautiful women.

The stars who were high and mighty in his eyes in his previous life are just small figures in this life. If he takes a fancy to a female star, the female star will come to him on her own initiative.

………The Hong Kong stock market performed very well in the first five months of this year (1993), with a rise of more than 5500%, which made most investors make a lot of money. From less than 5 points at the beginning of the year, it broke through to 7200 points by mid-May.

Liu Zhicheng's personal investment company, Hongli Investment, also made a huge profit of nearly HK$10 billion because it started trading index futures contracts at the beginning of the year.

In terms of real estate, luxury home prices have been rising steadily since the beginning of the year, with brisk trading in April and May, with sales prices rising by 2% in two months.

Driven by luxury buildings, the prices of small and medium-sized residential units have soared again, with the average price approaching the 5000 yuan per square foot mark.

Driven by residential buildings, the rental and sales prices of office buildings in Hong Kong have both risen sharply.

In just less than half a year, the prices of Grade A office buildings in Central and Wan Chai have increased by about 2%, and are expected to increase by more than 3% for the whole year, with the Central District possibly seeing a 4% increase.

As prosperous commercial areas spread from the core to the periphery, Hong Kong's shopping malls and stores are also performing well.

In particular, Wan Chai, Causeway Bay, North Point and Tsim Sha Tsui on Hong Kong Island performed best.

Looking at the Causeway Bay area, since the opening of SOGO Department Store, the area has seen a surge in traffic, attracting many large chain groups to open branches nearby, causing rents in the area to rise sharply.

At this time, Hong Kong's shop rents ranked first among the 12 major cities in the world.

Among them, a shop in Causeway Bay has a monthly rent of HK$3429 per square foot. A buyer offered HK$19 per square foot to buy it, but the sale was later shelved because the business was reluctant to sell.

With the profits from real estate rolling in, all major real estate developers, agents, and house speculators are smiling happily.

Foreign capital has begun to flow into Hong Kong's securities and real estate sectors, hoping to get a piece of the pie.

Saturday, October 5.

In the morning, Liu Zhicheng held a small meeting with core real estate executives in the office of Huangpu Group.

He said: "In mid-May, the Hong Kong government announced the annual 'official land auction' plan, and the stock market soared immediately. From this point of view, the property market will continue to be strong for several years.

Therefore, we had to make a big move to acquire land in the three years between 1993 and 1995, so as not to fall behind Sun Hung Kai Properties and Henderson Land Development, lest we lack the stamina to do so in the future.”

In the past year or so, Whampoa Group has not been as aggressive in land purchases as before, but it has remained at the forefront of Hong Kong real estate developers.

Hao Qingwen nodded and said, “Due to the booming real estate industry, our company’s profits are continuously generated, and we can indeed increase our land purchases.

However, now that major real estate developers are boldly chasing high prices, it is not so easy to get land at government land auctions. "

This is true. The better the market conditions are, the more people will buy at high prices. The worse the market conditions are, the more timid and cautious people will be.

In any case, Huangpu Group will strengthen its land reserves as much as possible in these three years.

As for 1996~1997, I naturally would not chase high prices. That year and a half was the last frenzy. On the contrary, I had to sell at high prices.

Therefore, in the recent official land auction, if there is good land or luxury residential land, Whampoa Group will try to get as much as possible, after all, there is a large amount of cash flow coming.

Real estate in Hong Kong still accounts for the absolute majority of the group's profits, although the Whampoa Group has successfully diversified.

However, overseas and domestic investments have not yet generated much return.

For example, property rentals in Manhattan do generate more than 10 billion in net rental profits each year.

But the interest on that investment would require nearly 7.5%, and the current annual return on the eight skyscrapers is %.

This is the case when buying at a low price, otherwise the estimated return rate is only 4~6%.

So, it is not easy to make money from the American people. In the past, a large number of Chinese companies in the mainland purchased office buildings in Manhattan after 2010, when the prices were high. In the end, they lost everything.

There are also companies that come to Hong Kong to buy properties and land, but almost no money is made, and they become the leeks of Hong Kong real estate developers.

The level is really poor!

The deeper reason is that it has only been a few decades since the reform and opening up, and everyone’s international business vision has not yet been cultivated.

I talked with everyone about the general direction of the company's real estate, and everyone left the office with full confidence and devoted themselves to work.

…………

At the end of February this year, the World Trade Center bombing occurred in New York, the United States, killing six people and injuring thousands, shocking the whole world.

After that, starting from mid-March, the price of gold in London began to rise from US$330 per ounce.

In mid-May, gold climbed to over $380 per ounce and stabilized at over $375 per ounce at the end of May.

When Liu Zhicheng's psychological price was US$390 per ounce, he started to close his positions.

Although he knows that the price will break through the 400 US dollars per ounce mark this year, he will not try to "earn the last penny", which is the investment philosophy he has always adhered to.

In May, due to the sharp rise in gold prices, some people dug out that Octopus Bank had purchased a large number of gold bars as reserves at the beginning of the year. For a time, many people began to think about this news.

Octopus Bank, that is Liu Zhicheng’s property.

Liu Zhicheng is a legendary "stock god". He suddenly invested heavily in spot gold. Does he think the price of gold will skyrocket?
Therefore, those who know the market situation in the industry have begun to invest in gold. Of course, this is only the behavior of a small number of people.

HSBC.

Pu Weishi asked his assistant, "How much gold reserves does Octopus Bank hold?"

The assistant said: "According to the review of the Banking Regulatory Commission and our HSBC Commissioner, the data they submitted is 100 tons, and the cost price is about US$330 per ounce. The current profit is quite high."

HSBC is equivalent to half of the central bank, and HSBC was originally the rotating chairman of the Banking Association.

Therefore, it does have a supervisory role on Hong Kong's banks, but of course it can only serve to cooperate with the Banking Regulatory Commission.

Pu Weishi was stunned and frowned. As the boss of a large British bank in Hong Kong, he definitely did not want Chinese banks to grow.

In Hong Kong, the Chinese have dominated every aspect of the industry including real estate, trade, and manufacturing, except for the banks, which have suffered a major collapse. This is equivalent to the last stronghold of British capital.

In the 1960s, Hang Seng Bank, a Chinese bank, was HSBC's biggest rival.

As a result of the bank run, HSBC acquired Hang Seng Bank at a very low cost.

In the subsequent rounds of banking crises, Chinese banks in Hong Kong changed hands one after another and became subsidiaries of foreign capital.

There are only a few local Chinese banks in Hong Kong today, including Bank of East Asia, Octopus Bank, Dah Sing Bank, Liao Chong Hing Bank, Tai Sang Bank, and Tai Yau Bank. The proportion of their deposits and loans in Hong Kong is less than 20%.

It can be said to be a great defeat!
Things seem to be a little different now. Since the establishment of Octopus Bank, relying on Liu Zhicheng's personal influence, the bank's deposits have been increasing day by day, its business has been flourishing, and its prospects are extremely promising.

And now, Pu Weishi has learned that Octopus Bank has made a book profit of more than 10 billion from this gold reserve.

This means that Octopus Bank, which originally had to wait until after 1995 to turn its accumulated losses into a positive, will be back to normal this year or next year.

Then, relying on Liu Zhicheng's personal reputation and influence in Hong Kong, Octopus Bank may really endanger the position of Hang Seng Bank.

After all, Liu Zhicheng is a very legendary person.

Pu Weishi asked: "What do the officials of the Banking Regulatory Bureau say about Octopus Bank's purchase of gold reserves?"

The assistant replied: "Nothing was said. After all, Octopus Bank is not listed, and its financials are very sound. There are no violations. On the contrary, everything is done in a very formal manner.

There is also news that Octopus Bank will be listed at an appropriate time. "

Pu Weishi immediately sighed: "Hang Seng Bank's biggest enemy will not be Bank of East Asia, but Octopus Bank.

Although Liu Zhicheng is not a banking expert, he is a financial genius. Octopus Bank will surely have a great future."

Having said that, HSBC is now in a difficult situation. This year, the Hong Kong government approved the issuance of banknotes by Huayin Bank, which accounts for 5% of the market share.

Although the number is small, it shows one thing: Hong Kong is no longer the world of HSBC, but the world of the Chinese.

If HSBC wants to operate in Hong Kong, it has to integrate into Chinese society, rather than having the Chinese accommodate it.

(End of this chapter)