Hong Kong: Starting with 10 billion

Chapter 37 HSBC: Do you think I'm a cash machine? (Please collect, recommend, and vote)
Fang Hexuan had a reason to ask You Bingwen to stay calm.

But he won't tell the other person directly.
Because only people with a reborn perspective can see this clearly.

It was only March 1978.

It will take at least one or two years for Hong Kong's real estate market to pick up steam.

The development of any industry,
In addition to the support of the overall environment,
It also requires the promotion of government policies.

At present, the mainland has not yet officially opened up.
Investors do not have full confidence in the future of Hong Kong.
Naturally, they dare not invest large sums of money into the real estate industry.

In addition, although the Hong Kong government has relaxed foreign exchange and gold controls in recent years,
But it is not enough to support Hong Kong to become the financial center of Asia Pacific.

Only by liberalizing the issuance of banking licenses,
Only then will a large number of international banks enter Hong Kong.

This will drive a surge in demand for commercial rental properties and high-end residential properties in Hong Kong.

Only after seeing clear and strong demand did businessmen dare to enter the real estate industry and spend large sums of money.

Only government land can be sold at a high price.

In short, now is not the right time.

If Newbigin wants to rip off Wanda, someone has to be willing to spend real money to cooperate.

1978 3 Month 25 Day.

The Hong Kong government has officially unfrozen the issuance of banking licenses.

Li Wenli finally breathed a sigh of relief.

This time I really made the right bet.

No need to follow a broken boat all the way to the dark,

It's already quite lucky.

After Liu Juncheng learned the news,

He just laughed out loud.

Since the last time I cried,

He became more confident, cheerful and mature.

Fang Hexuan's instructions to You Bingwen were,

You can talk, you can talk slowly, that's also fine.

No rush anyway.

The bank license has just been unfrozen.
By the end of the year, there were only 98 licensed banks.
It is within a mile of the real international financial center.
It will take another one or two years to prepare and accumulate strength.

The current real estate market does not show any room for speculation or hype.

You know, just last year in 1977,
Li Ka-shing only spent HK$2.3 million to acquire all the shares of the American company Yonggao.

The company's most valuable asset in Hong Kong is the Hilton Hotel in Central.

Li Ka-shing later completely demolished the hotel.

And built the headquarters of his own business empire, Cheung Kong Group——

Yangtze River Group Center.

Next to it is the Bank of China Building and the HSBC Group Headquarters Building.

It can be said that the location of this hotel is the best among the best.

The location is much better than that of the Golden Gate Building.

Only less than a year later,
The land market in Central has not changed dramatically.
If the Golden Gate Building is valued according to the actual valuation,

It will not exceed HK$6 million.

Two years later, Hong Kong's status as a financial center had been established.
High-end office properties in Central are indeed becoming in short supply.
The Hong Kong Land Group spent 7.15 million to buy the Golden Gate Building from its parent company.
There are factors that increase valuations after the real estate market turns prosperous.

Therefore, Fang Hexuan would never believe it.

Is there any smart person who would be willing to pay 6.5 million like him to acquire the Golden Gate Building?

Fang Hexuan was also forced to do so.
He was mainly afraid that the Hong Kong Land Group would suddenly go crazy.
Join in and compete with him for this building.

Until then, unless the price is raised,

Otherwise, he would not be able to compete with Jardine Matheson's own son.

But this does not mean that he will allow Jardine Matheson to control him at will.

In the first round of negotiations with Jardine Matheson,

He asked You Bingwen to deliberately lower the purchase price.
It was reduced from the original 6.5 million to 6 million Hong Kong dollars.

This outrageous move completely confused Jardine Matheson's negotiators.

It was the first time for them to see a situation where the party actively seeking to purchase something lowered the price instead of raising it.

Then there was anger and quarreling.

But You Bingwen and Wanda shrugged their shoulders and said it didn't matter.

They gave reasons -

Wanda is a newly established company, and its boss is not familiar with the real estate market.

The price was quoted blindly.

After market investigation and research, the company's professional executives

Rejected the boss's offer,
It is believed that 5.5 million is the actual market value of the Golden Gate Building.

But the boss admired Jardine Matheson,

I also think that people must be honest.
So the team raised the offer to HK$6 million.

this price,

From the boss to the employees,

All considered reasonable numbers.

After hearing this nonsense, Yihe

I wanted to continue the attack but I no longer had the interest.

They think this is a rubbish company.
So amateur and unprofessional.

The first round of negotiations ended in a bad mood.

After Newbigin knew the result,

I was so angry that I started cursing.

He asked the team not to waste time with Wanda in the near future.
Talk directly to other interested companies.

The day after the first round of negotiations,

Wanda sent another fax to Jardine Matheson.

Ask them for their decision.
And we sincerely look forward to the second round of negotiations between the two sides.

Newbigin curled his lips in disdain.
Tell your subordinates not to make any reply.

See who is more anxious!
He is confident that Wanda will be more anxious than Jardine Matheson.
Wanda's executives are indeed anxious.
But there was no point in their haste.

The real boss Fang Hexuan is as steady as an old dog.

This dragged on for half a month.

During this period,
Jardine negotiated with five companies in succession.

Three of them are just trying to fish in troubled waters.
No strength but ambition.
Jardine kicked them out directly.

The remaining two companies are also sincere.

But they couldn't agree on the price.

The offer they made was even tens of millions lower than Fang Hexuan's 6 million Hong Kong dollars.

Both Jardine Matheson and the others conducted more than three rounds of negotiations.

One company finally refused to give up on the HK$5.8 million.

Jardine Matheson was not polite either.

Just tell them to get out.

The last one left,
The price was finally given at 6 million Hong Kong dollars.

Just at this time,

Wanda faxed Jardine Matheson again.

The boss agreed to increase the offer to HK$6.2 million.

Only then did Newbigin breathe a sigh of relief.

During these 15 days,

Wanda sends faxes to Jardine Matheson every day.
Urge a second round of negotiations,
But there is no mention of raising the bid.

In fact, Newbijian was already secretly regretting it in his heart.

He misjudged the current market situation.

But fortunately, there is still a rich man who is willing to wait for Yihe.

Finally, Newbigin also played a trick.

He had the two companies sitting in the same big office.

Bid against each other for three rounds.

Facing Wanda, which is determined to win,
The little-known company dropped its bid in the third round.

Finally, Wanda successfully acquired the Golden Gate Building for HK$6.8 million.

Afterwards, Newbijian said to his subordinates in a happy mood:

"It's always good to have competition. This is 3000 million higher than Wanda's initial offer. This is a victory for Jardine Matheson!"

The subordinates clapped and blew whistles to show respect.

But in my heart, I complained.

Damn, after all the talk, it’s only 3000 million more, you really have the nerve to brag about it.

The day after this auction,
Wanda signed an acquisition agreement with Jardine Matheson.
Officially took over the Golden Gate Building.

However, what made Yihe feel a little uncomfortable was that

Wanda specifically proposed before the signing of the agreement.

The acquisition funds of HK$6.8 million,

It needs to be repaid in three installments and settled within one year.

These are nothing.
This is common practice in the Hong Kong business community.

But Wanda proposed that the first payment was only 1 million Hong Kong dollars.
This made them a little unhappy.

However, this episode did not affect the cooperation between the two companies.

Jardine Matheson boss Newbigin was afraid that something unexpected might happen again.
Agreed to Wanda’s conditions.

The successful acquisition of the Golden Gate Building

All the staff of Wanda Real Estate worked hard for nearly a month.

Fang Hexuan asked You Bingwen to take out 100 million as a bonus.
This made everyone at Wanda, which originally had only a few dozen people, excited.

They are happy.

Some people are unhappy.
Can't say I'm not happy.
I just feel a little helpless.

You Bingwen approached HSBC again.

They proposed to use the Golden Gate Building as collateral.

Loaned HK$6.8 million from HSBC.

The HSBC manager's expression at the time was -

Do you treat HSBC as an ATM?

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(End of this chapter)