Hong Kong: Starting with 10 billion

Chapter 90: Establishment of BFA
All civil engineering and construction work of the island estate,

Fang Hexuan did not look for outsiders, but directly entrusted it to the Xinchang Group of Ye Gengnian, a fellow townsman association.

Wanda Real Estate has also established a strategic partnership with this well-known construction company.

From now on, Wanda Real Estate will only be responsible for developing real estate projects.
The construction work was handed over to Xinchang, which has rich experience in the industry.

It is impossible for Fang Hexuan to supervise the construction of his own manor throughout the whole process.
So, he handed the project over to Wanda’s deputy general manager Luo Jianlong.

He will follow up the whole process and be directly responsible to Fang Hexuan.

Luo Jianlong was a senior executive who joined Wanda at the beginning of its establishment and had previously served as a manager.
There is generally no such thing as a vice president in Hong Kong, but Fang Hexuan still promoted him to a higher level.
The company’s vice president and general manager is Fang Hexuan himself.

Therefore, this vice president is actually the real CEO of Wanda at present.

After arranging the handover, Fang Hexuan turned his attention to the battle for Hutchison Whampoa.

Although in this time and space, Pao Yue-Kong made arrangements earlier than in history and made 7 million yuan by investing in gold,

But the confrontation with Jardine Matheson remains difficult to resolve.

1980年6月15日，包玉刚前后总共收购了36%的股份，而怡和目前控制了41%。

Moreover, Wharf Holdings’ current share price has reached HK$82.

Both parties are frantically buying up the few remaining shares in the market.

On June 6, Jardine Matheson announced that it would use "two new shares of Hong Kong Land plus a bond with a weekly interest rate of 18% at HK$76.6".
That is, the stock held by investors is purchased at a price of HK$100 per share.

Once the plan was announced, Jardine Matheson's stake increased from 41% to 49% two days later.

The situation was clearly not favorable for Pao Yue-kong.

Fang Hexuan visited Sir Bao and negotiated for more than an hour.

This time he came to repay his gratitude and thank Pao Yue-Kong for helping him many times when he needed help the most.

Therefore, he lent 20 billion Hong Kong dollars to the shipping king without hesitation.

In fact, Pao Yue-kong was not really worried about the money issue. With HSBC as his super nanny, his acquisition of Wharf Holdings was really destined.

But Fang Hexuan took the initiative to come to the door and give money, which was full of fellow-townsman friendship.

On June 6, Pao Yue-kong announced that he would increase the purchase price of Wharf Holdings shares to HK$22.

Retail investors and speculators who still hold Wharf Holdings shares suddenly became uneasy.

The share price of Wharf Holdings has risen from HK$13 three years ago to HK$ now.

Smart people know that there is not much room for improvement here.

As a result, everyone flocked to the arms of the ship charter king, trying to secure the profits.

Jardine Matheson is at the end of its rope. The previous share price increase to HK$100 was already their limit.

On June 6, Pao Yue-kong announced that he now controlled more than 25% of Wharf Holdings' shares.

At this point, the Wharf acquisition case has basically come to an end.

Pao Yue-kong became the largest shareholder of Wharf Holdings, surpassing Jardine Matheson Holdings and Hong Kong Land in voting rights.

It’s only a matter of time before he completely controls Hutchison Whampoa.

But the Hong Kong media will not wait that long to announce the victory.

The historical significance of the shipping magnate taking over Wharf Holdings does not lie in Fong Hok-hin becoming the richest man in Hong Kong.

After all, before Fang Hexuan, Pao Yue-kong was already the richest man in Hong Kong.

But from this acquisition, many people with a keen sense of smell saw certain signs and trends.

The rise of Chinese capital and the gradual control of Hong Kong's business world by Chinese are already happening.

Throughout June, Fang Hexuan not only paid attention to the acquisition of Wharf Holdings,
All his energy was basically focused on the establishment of two major automobile companies.

Although they are two companies, they basically share the same supply chain system.

The R&D center is also located in the same place.

Fang Hexuan rented a five-storey industrial building with an area of ​​6500 square meters and a three-storey industrial center with an area of ​​3500 square meters on Hung Hom Road, Kowloon.

The industrial building will be temporarily used for the research and development, assembly, and testing of the three major automotive components.

The industrial center will serve as an office area for R&D and administrative staff. Fang Hexuan also plans to build a vehicle testing base in the countryside of Yuen Long.

All of these are temporary and helpless choices.

Once the factory is built in Shenzhen, many processes will be completely moved there.

In addition, Fang Hexuan also recruits technical R&D personnel, process control experts, and production managers around the world through multinational headhunting companies.

He selected a senior management talent from Neon Toyota for BYD.

The executive who will serve as general manager is named Hisahiko Uchiyama, who is familiar with and proficient in the concept of lean production.

Fang Hexuan hopes BYD can learn from Toyota, not just imitate it like Great Wall Motors did in later generations.

Instead, it is hoped that in future global competition, BYD will be able to compete with the world's major vehicle manufacturers in terms of R&D, production and testing.

BMW chose a CEO from Mercedes-Benz, a typical German named Schermer.

Fang Hexuan hopes that the BMW of this time and space can inherit the common advantages of the original Mercedes-Benz and BMW.

It can combine excellent driving experience, good comfort and advanced interior design.

After finishing the framework building work, Fang Hexuan rushed to Shenzhen with two new CEOs and several senior executives.

On July 1980, 7, Fang Hexuan and SZ Mayor Wu Nansheng appeared in front of mainland media at the municipal government.

A contract was signed to build two automobile factories in what would later become Nanshan District.

The total funding for the signed project is as high as 10 billion RMB, which is over 30 billion Hong Kong dollars, which is equivalent to 6 million US dollars.

This is the largest foreign investment in the mainland since the reform and opening up two years ago.

The news shocked the whole of China.

At this time, China's demand for foreign exchange was extremely strong.

Fang Hexuan's investment this time is funded by US dollars.

Not only did he receive the green light from the authorities, he also received praise by name from the official media.

The two factories are built next to each other. BYD Auto's first phase is planned to cover 600 acres of land with a designed production capacity of 10 vehicles.

The first phase of BMW's plan covers 450 acres of land, with a designed production capacity of 5 vehicles.

The second and third phases of expansion will be carried out subsequently based on specific sales conditions.

These have been clearly written into the contract with the SZ Municipal Government.

The huge investment of US$6 million not only made other provinces and cities in China jealous,

It also gave a shot in the arm to the SZ City Government, which was about to establish a special economic zone.

This is the best gift for the establishment of Shenzhen Special Economic Zone.

To this end, the SZ city government, whose functions were not yet fully developed, set up two special task forces specifically for the two automobile companies.

Closely coordinate all needs of both companies.

In fact, before the contract was signed, the PLA's infrastructure engineering troops were already ready to go.

Three connections and one leveling are the basic conditions, and supporting them include the construction of a port terminal in Shekou, the entry of a small number of state-owned auto parts companies into the auto industry park, and the recruitment of a large number of workers.

This industrial park was requested by Fang Hexuan.

Although the Shekou Industrial Park was established in Shenzhen in 1979,
But industrial parks and industrial parks are not the same concept.

Fang Hexuan hopes that the city government will focus on his two car companies.

Attract supporting parts companies closely related to the automotive industry.
Together they form an interdependent symbiotic system.

This proposal and request was kept in mind by some people.

It became an industrial model that many cities later followed.

······
　Thanks to Yijidao, I heard there will be Aurora in May, and book friend 20220428091908666 for their recommendations!

　　"What! Black Tiger Village was recruited again?" by Yang Guo from Xuecheng is a very imaginative fairy tale work. I like it very much. Interested readers can take a look. Thank you!

　　I didn’t write any words of thanks for the release of this book, because I felt too embarrassed to write about this poor result. However, I sincerely thank all the book friends who are willing to subscribe to this book. I can only kowtow to you all for your kindness in providing me with food and clothing!
　　

(End of this chapter)