Rebirth of Hong Kong's tycoons, shorting Eagle Sauce

The reason why Wang Lei persuaded Wang Zhengyi to sell the real estate project was because of several years of massive expansion.

Wang's Real Estate seemed a bit bloated, like a giant python that had eaten too much.

Leverage and short-term loans are also the most commonly used means of expansion for Wang's Real Estate.

Even if the entire Chek Lap Kok project was supported by the cash flow of the gambling king, most of the project funds still came from bank loans.

You should know that from 1987 to 1997, the housing prices in Hong Kong City increased tenfold in ten years!

But after the outbreak of the Dongzhou financial crisis, it fell by 70% overnight!

It's easy to rise, and it's even easier to fall.

A large number of negative asset holders appeared in Hong Kong City, and everything was falling, only coal prices were rising.

If Wang's didn't start to lose weight quietly at this time, it would be too late to run when the disaster came.

Some people want to ask, why not wait until 1997 to sell?

With the size of Wang's Real Estate in Hong Kong City, if all of it was sold at once, it would probably trigger the crisis in advance.

Those short sellers would probably applaud and short Wang Group.

Since they have decided to run, they should do it quickly and not drag their feet.

"National bankruptcy?"

"Do you mean that these small countries will have financial collapse, stock market crash, and housing prices will plummet?"

Wang Zhengyi is not a man who knows nothing. On the contrary, he manages such a large group and knows a little about everything. His theoretical knowledge is far beyond that of ordinary people.

Naturally, he knows that Wang Lei is not exaggerating.

Insufficient foreign exchange reserves, high national deficit, credit downgrade, currency collapse...

It caused a series of chain reactions.

He immediately realized that he was sitting on a powder keg that could be ignited at any time.

"The stock prices of Gangcheng and several surrounding countries have risen sharply recently. This is because the short sellers are deliberately raising the prices, because the higher the stock market rises, the more bubbles there are, and the more room they have for short selling."

As far as Wang Lei knows, after harvesting Sakura Island, several major hedge funds have successively set their sights on the precious land of Dongzhou.

Since 1990, Lao Suo's Proton Fund and Tiger Fund have put the funds they obtained into the stock markets of several small countries in Dongzhou.

The economic free port of Hong Kong City is no exception.

With the help of the short sellers, the Hong Kong stock index rose from around 3,000 points in early 1991 to a peak of 16,683 points in 1997!

Such a bull market is rare in the world.

Wang Zhengyi was more and more frightened as he listened, realizing that the Wang Group had reached a critical moment of survival.

If he hesitated any longer, he might fall into the quagmire of financial crisis.

If Wang Lei hadn't reminded him, he might still be living in the illusion that the Wang Group was thriving.

The project can be suspended, and the land can be left there waiting for appreciation, but Wang's capital chain will definitely have big problems.

At that time, if the Wang Group wants to run away again, it can only cut its own flesh to protect itself, and it is still unclear whether there will be a buyer.

Seeing Wang Zhengyi sweating profusely, Wang Lei asked with concern:

"Dad, are you okay?"

"Alei, I'm fine, just a little scared."

"Dad, since you have realized the crisis, there is no need to rush. We can use the reason that we need to recover a large amount of funds to enter the inland real estate market.

Slowly sell all the projects under construction in Gangcheng at a high price."

"Okay, according to the estimate of this report, there are still three years before the outbreak of the Dongzhou financial crisis. We have time to prepare to get out."

But Wang Zhengyi's face showed a tangled expression again:

"Where will we invest the recovered funds?"

"If we pay off all foreign debts, we will still have a large amount of cash flow left."

"If we put it in banks in the United States and abroad, it will be harvested in nine out of ten cases..."

Hearing this, Wang Lei smiled. He didn't expect that his father had a high level of knowledge about foreign banks.

"Dad, there's nothing to worry about. As for foreign debt, don't rush to pay it back. Convert it into US dollars or RMB.

When the financial crisis breaks out, you will be the ancestor of the bank. You will have room for negotiation and may even be able to waive a lot of debts.

Besides, when the Hong Kong dollar depreciates, Wang's can make a small profit by the price difference."

Wang Zhengyi thought that it was profitable and smiled like an old fox:

"Yes, that's the truth. With your reminder, I am not panicking about owing so many debts.

But we can't do things like being a deadbeat and transferring and emptying the group's assets. We must stick to the bottom line.

Alei, don't do things like giving birth to a son without an asshole. You will be punished sooner or later."

Wang Lei rolled his eyes at his father and couldn't help but complain in his heart.

Seeing that Wang Zhengyi still looked worried, Wang Lei had to change the subject:

"As for the cash that has been converted into cash...

On the one hand, our expansion in the mainland,We do need a lot of cash flow. On the other hand, we can invest in the Internet industry in the beautiful country!"

Wang Zhengyi also supports increasing investment in the mainland.

In the past two years, due to the increasingly close cooperation between the Wang family and the mainland, Wang Zhengyi has truly felt the commercial vitality of Longguo, which changes every day.

Especially first-tier cities, which are increasingly in line with the international standards, have great opportunities everywhere.

The retail home appliance business alone has great potential.

But the Internet in the beautiful country that Wang Lei mentioned is a new term for him.

"Alei, explain to me what the Internet is?"

Wang Lei then remembered that there is no word for the Internet yet.

"Simply put, it is an industry that uses the Internet to develop various practical software."

As a multinational business giant, Wang Zhengyi is not unfamiliar with computers and the Internet.

Many companies in the Wang Group are equipped with business computers and are at the forefront of social development.

"Do you think this new track is promising? "

Wang Zhengyi actually looked down on this thing from the bottom of his heart. You said it is useful, sometimes it is indeed more useful than the human brain, but you said it is practical, only those who have used it know how troublesome it is.

And he couldn't figure out where the profit point of this thing was.

He didn't see any business opportunities in it.

Wang Lei saw his father's expression and explained:

"The Internet is indeed just starting out, and the United States is also in the stage of cultivating users. These newly emerging Internet companies still have a long way to go to make profits.

But I don't expect these companies to make profits for me. The real money is still in the financial industry that is closely related to them!"

"You mean, you want to make money by listing them?"

"Yes, Dad, you can send someone to the United States to investigate Microsoft and America Online (AOL), and a browser company called Netscape. "

Microsoft, a well-known company, needs no introduction. Bill Gates will become the world's richest man for the first time next year thanks to the appreciation of Microsoft's stock.

AOL has been mentioned before. It was originally a company that provided Internet dial-up services. In order to provide more services to their customers, they developed a lot of software.