The birth of the Hong Kong Island family

After New Year's Day.

Lin Zhichao made an appointment with Hu Yingxiang of Hopewell Real Estate and asked him to come to his office.

Hopewell Properties finally recovered in 1979 (the 1973 stock market crash triggered a 93% drop in market value). The real estate profit that year was HK$70 million. Later, it built the Hopewell Center in Wan Chai, with annual rents of HK$80 to 90 million.

By the early 1980s, Hopewell Real Estate turned to inland development. In 1981 and 1984, it twice proposed to senior officials to build at least three expressways in China - the Beijing-Tianjin Line, the Guangzhou-Shenzhen Line, and the Shenyang-Dalian Line.

Hu Yingxiang is a top student in a professional architecture class, so some people say that Hong Kong is too small and he can only go to the mainland to realize his ambitions.

"I came to you because I have an idea for you to do the sum total together!" Lin Zhichao said with a smile.

"Lin Sheng, please tell me!" Hu Yingxiang asked curiously.

Lin Zhichao nodded, then took out a map of Hong Kong, pointed at Lantau Island and said: "Hong Kong's Kai Tak Airport has entered the 1980s, and its load has become increasingly heavy. I think an international airport should be built on land here. In addition, Lantau Island also needs Build cross-sea bridges and undersea tunnels, and develop industrial and residential areas; finally, we can also build the Guangzhou-Shenzhen-Pearl Expressway connecting Hong Kong, Guangzhou, and Macau."

He just made a simple gesture and obviously did not really study it in depth, because Lin Zhichao knew that Hu Yingxiang was a professional planner. He was also a Hong Kong government planner and a civil servant.

Hu Yingxiang suddenly showed interest. While looking at the map, he said: "What Lin Sheng means is that our private consortium will invest in this large-scale project? This is the largest project since the opening of Hong Kong, even surpassing the subway project."

Lin Zhichao said: "Yes, the total investment is expected to be about 25 billion! But once we get permission from the Hong Kong government, we can use the profits from the residential area to support part of the investment. What's more, the undersea tunnel and the cross-sea bridge will stabilize cash flow. Infrastructure projects.”

Hu Yingxiang nodded and said: "Indeed, once this project is successful, it will not only bring huge economic benefits to Hong Kong, but also bring considerable profits to investors. Since Lin Sheng called me here, does he plan to let me come for him?" This engineering design plan?”

Changshi Group is extremely large. Although this project invested 25 billion, it actually only required one-tenth of the start-up capital, and the rest could be completed through bank loans.

Lin Zhichao called him, presumably because he wanted to take advantage of his skills.

"Well, civil engineering is not a long-term strength. The long-term strength is building engineering. If so, I hope you can come up with a rough plan, and then we will jointly invest and publicly announce it, and apply to the Hong Kong government for approval of the plan."

"Okay, I am very interested in this project. I didn't expect Lin Sheng to have such a creative idea. To be honest, I have also considered this plan, but I am not so bold."

"Haha, that's just right!"

The two quickly reached an agreement that Hu Yingxiang would come up with the plan, and then Cheung Kong Group and Hopewell Properties would apply to the Hong Kong government for approval and publicly announce the plan.

Hu Yingxiang left Changshi Group excitedly, but little did he know that Lin Zhichao had a smile on his face.

This smile is not a sneer or a sinister smile, it is just a very relaxed smile.

In fact, Lin Zhichao knew that this plan would not pass. After all, there were many things involved. In previous lives, the mainland and Hong Kong governments had been arguing with each other over the airport plan for a long time.

It’s not that the mainland wants to prevent the Hong Kong government from building the airport, but that it involves the new government in 1997 and whether it still has the money to run it!

In the joint statement, it is stipulated that the Hong Kong government cannot sell more than 50 hectares of land every year. This is because the mainland government is worried that the Hong Kong government will sell out all the land. How will the new Hong Kong government obtain fiscal revenue in the future?

Since Lin Zhichao knows that the private consortium cannot handle this "Western Seaport-Lantau Island Strategic Development Plan", why is he still complaining?

In fact, Lin Zhichao has three ideas:

First, it prompted the Hong Kong government to pay attention to the new airport plan in advance, even two years in advance, which is a great merit, because Kai Tak Airport has begun to operate over capacity.

Second, once this plan comes out, it will be "obvious" that the new airport on Lantau Island will be adopted. Even if it is not approved, the public will know that Lantau Island will be chosen for the new airport in the future. In this way, the fourth and fifth phases of Discovery Bay can be It’s even more profitable.

Third, if it is passed, then Cheung Kong Group will make huge profits, although this possibility is very small. What's more, whether it passes or not, it can bring huge influence and credibility to Changshi Group.

In short, he won't lose any money, and he also has a free 'part-time worker' - Hu Yingxiang.

After a while, Lin Ruihuan came to the office.

"Father, the plan for Singapore Taifu Plaza is ready!" He handed Lin Zhichao a stack of information.

Lin Zhichao nodded and did not look at it directly. This plan was already in final review and there was no rush.

Currently, Cheung Kong Group has two large-scale commercial projects under construction - Changjiang Plaza and Exchange Plaza. Singapore Pacific Plaza will be the third large-scale commercial project.

Cheung Kong Group can be described as the real king of real estate, and its commercial properties are enviable. It will soon become a company that is very reluctant to collect rents. Not only that, Cheung Kong Group is also a large development real estate developer in Hong Kong. It has a little more supply than the second-place Sun Hung Kai, although the gap is not huge.

"How is the business going in Japan?" Lin Zhichao asked.

Lin Ruihuan replied: "Everything is going smoothly. We have once again obtained a piece of land in Tokyo's business district and three comprehensive commercial office buildings in the second phase of funding. Changshi Group is ready to inject it into Dongtian Enterprises at any time and continue to invest. Japanese real estate business.”

Lin Zhichao nodded with satisfaction. Cheung Kong Group has injected a total of US$400 million, and Victoria Harbor Investment has injected a total of US$600 million, which will require at least more than US$3 billion of investment. In the future, the harvest will be a tenfold increase in value (leverage

"What about the company's cash flow?"

“Very good, and you can get billions of loans at any time!”

"I see!"

Hong Kong can no longer accommodate the expansion of Cheung Kong Group, and Japan has already laid out its plans. It seems that the only option is to expand in Europe and the United States. But this matter cannot be rushed, it must be done step by step.

After the Hang Seng Index rose to 1,200 points at the end of last year (1984), it rose to only 1,380 points in January 1985. It can be described as a sharp rise.

After that, it fluctuated repeatedly in the first half of February, giving people a feeling that the potential had been exhausted.

Just when investors and stock commentators were waning, news suddenly came on February 14 that the Qiu Deba Group from Kenzhou announced that it had purchased 14% of the shares from the Madden family and was preparing to fully acquire the company from other shareholders. Defeng stock is priced at 6 yuan for A shares and 60 cents for B shares, involving 1.9 billion Hong Kong dollars.

This news was nothing short of a shot in the arm, and the stock market immediately stopped falling and rebounded.

Regarding Xiao Maden's secret activities, Zhang Yuliang was the most anxious. Although Zhang Yuliang had already given up on the "1997" issue at this time, he never expected that Xiao Maden would make such a move, which caught him off guard.

If Qiu Deba succeeds in the acquisition, where will he put the face of this major shareholder? Will this make him less anxious?

"Obviously I am the major shareholder! Why didn't Ma Deng inform me?" Such a simple truth made Zhang Yuliang feel extremely shameful and humiliated.

To put it simply, it is like your own house, and others start to demolish it without your permission.

What's more, once the Qiu Teck Puat consortium succeeds, what will he do with the shares in his hands? Assuming that Qiu Teck Puat's consortium takes 51% of the equity and declares success, wouldn't he just let it be slaughtered?

Over the years, due to the secret "suppression" by Lin Zhichao, Zhang Yuliang felt that his family's career was not progressing smoothly.

Looking back on that year, the Zhang family made a fortune of about 20 million Hong Kong dollars in the "Peninsula Campaign" and was the first to get involved in the real estate industry (1953).

With such a start, the Zhang family's wealth is now only 38% of Wheelock's equity, plus a mere HK$670 million in assets.

Zhang Yuliang bought half of the shares in Wheelock Building and Marden Building in 1981, but soon encountered a sharp decline in real estate. Finally, Federal Real Estate, a subsidiary of Wheelock, bought back half of his shares at a discount.

One after another, Zhang Yuliang lost another 300 million!

"Find someone to join the anti-takeover!"

"Who are we looking for! Lin Zhichao is the most powerful, but it's a pity that he doesn't like me. I won't look for him even if I die!"

For a moment, Zhang Yuliang felt embarrassed.

Although there are many financial groups in Hong Kong, few can win compared to the Qiu Teck Puat Group.

"Sheng Zhang, Mr. Li from CK Hutchison Real Estate, I hope to visit you and left your phone number!"

While Zhang Yuliang was thinking hard, Li Jiacheng took the initiative to contact him.

Because Li Jiacheng knew that although he had a good relationship with Zhang Yuliang, Zhang Yuliang must think that he had no strength and would not think of himself.

Upon hearing this, Zhang Yuliang knew that Li Jiacheng might be interested. Although he doubted his strength, he still called back.

Soon, the two parties made an appointment at the Mandarin Hotel.

Noon, Mandarin Hotel.

Li Jiacheng said straight to the point: "Sheng Zhang, now that the Qiu Deba consortium has acquired the Wheelock Group in a 'hostile' manner, and many investors have sold their stocks in the morning, do you have any countermeasures?"

Zhang Yuliang was not surprised to hear that many investors were selling their stocks.

Wheelock's stock, known as the "Blue Lantern", has long been a waste for investors - a waste of money and a pity to throw away.

Wheelock mainly invested in real estate and shipping, and later developed into insurance, finance, department stores, manufacturing and trade, with many projects. Its subsidiaries and associated companies are: Harriman Development, Zhufu Development, Lane Crawford Development, Commonwealth Real Estate, Real Estate Trust, Wheelock Shipping and United Enterprises. The number of listed companies under its umbrella is the highest among all foreign banks.

According to the published figures, Wheelock's operating performance is not bad, but its listed stocks are called "Blue Lanterns."

What is "Blue Lantern"? According to Chinese traditional customs, whenever there is a festive event, lanterns must be decorated and red lanterns hung high; but only when there is a funeral, blue lanterns are hung.

It turns out that Wheelock's stock was always the last to rise in the past wave of stock market rises. When the rising wave of blue-chip stocks such as HSBC, Swire and Hutchison Whampoa was coming to an end, Wheelock started slowly. As soon as experienced investors see Wheelock's stock rising, they know that a market downturn is not far away. As a result, Wheelock's stock became a "blue lantern" - a signal that the stock market was "finished."

For a long period of time, Wheelock's internal and external style and development strategies have disappointed investors again and again.

For example: when AB shares are issued, the major shareholder obviously holds a large number of B shares with only one-tenth of the A share price, but allows them to enjoy the same rights as A shares. This is called taking advantage, and Defeng will be the only company in Hong Kong. (Some companies imitated it, but under the influence of public opinion, the Hong Kong government promptly stopped it)

For example: directors (or directors' family companies) take advantage of listed companies, the most obvious of which is Federal Real Estate. Federal Real Estate has maintained profits by renting two buildings for more than ten years. The company has no debt and no development. Its profits have increased year by year, but its dividends have remained unchanged. Over the past few years, Federal Real Estate has accumulated a large amount of cash. This cash has been deposited in Wheelock's parent company for a long time, and its interest is much lower than one year's time deposit interest. In this way, the parent company has gained a lot of income from this item alone, while Federal Real Estate has suffered a loss in interest. . There are also real estate trusts. There are many such incidents.

For example: Madden never believed in the future of Hong Kong, so he invested heavily in shipping. At the end of 1983, Wheelock Shipping Company owned a total of 29 ships with a deadweight of 1.4 million tons. Due to the sluggish shipping industry, its debt reached 2.18 billion yuan. In addition, it needed to pay 680 million yuan to Complete the ship under construction. Facing the long-term slump in the shipping industry, the heavily indebted Wheelock Shipping Company was forced to sell its ships at low prices and seek support from Wheelock \u0026 Company and similar companies. Due to active ship sales, in the first half of 1984, Wheelock Shipping Company reduced its liabilities by HK$560 million and its capital commitments by HK$468 million, but at the same time suffered a loss of HK$64.72 million. In March, there was even news that Wheelock Shipping Company might be liquidated due to debt problems. The difficulties of Wheelock Shipping Company triggered a conflict between Wheelock's two major shareholders, George Madden and Yuliang Chang.

Various factors have caused Wheelock Group's stock to rise unfavorably.

But in fact, whoever controls the Wheelock Group is equivalent to controlling a number of listed companies - as many as seven listed companies, including Commonwealth Real Estate, Real Estate Trust, Wheelock Shipping, Charlie's Development, and United Enterprises.

Seeing what Li Jiacheng said, Zhang Yuliang asked, "Is it possible that Li Sheng is interested in Wheelock?"

Li Jiacheng nodded and said: "If Zhang Sheng has an idea, I am willing to form a consortium with you to carry out a counter-takeover!"

He was very smart and proposed to form a consortium to fight takeovers. This would have two benefits:

First, he won honor and justice;

Second, if Zhang Yuliang intends to withdraw, he will not be killed off.

As expected, Zhang Yuliang shook his head and said: "My biggest hope now is that someone can accept the stocks in my hand and defeat Qiu Deba's consortium to take revenge. After all, I, a major shareholder, can be so indifferent to others."

In fact, he also hopes to cash out and leave!

Li Jiacheng was overjoyed. He made the right bet, so he said, "Since Zhang Sheng thinks so, I won't hide it from you. I can take over the shares from you at Qiu Deba's price."

Zhang Yuliang was a little surprised. Qiu Deba offered 1.9 billion to fully acquire Wheelock Group, so his 38% stake was worth 722 million Hong Kong dollars. The market value of CK Hutchison Real Estate is only a little over HK$2 billion, but it can come up with such a large amount of funds.

sharp!

If this person had a background, he might be at the level of the 'Four Major Families'.

pity!

"Li Sheng, I hope someone can defeat Qiu Deba without any suspense, so if you just buy the shares in my hand, do you still have the strength to fully acquire Wheelock Group?"

Li Jiacheng said: "No problem! I know Zhang Sheng's thoughts, and I am also concerned about whether I have the strength to defeat the Qiu Teck Pu Group. To be honest, I have already received a commitment from a large banking group to fully support me."

Although he has always been calm, the British-owned foreign companies in Hong Kong that can provide him with the opportunity at this time have the last chance left, and he will fight for it no matter what.

What's more, he understands that if Qiu Deba wins, he can also make a profit and exit because it is a comprehensive acquisition.

Zhang Yuliang said: "Really?"

Li Jiacheng said: "I don't dare to joke about this! If Zhang Sheng is willing, we can sign the contract tonight and announce the anti-takeover plan!"

At this time, Wheelock shareholders believed that there were no competitors, and since the stock was a bit hot, they were already selling in large quantities, so the counter-takeover must be quick.

Zhang Yuliang understood that Li Jiacheng would not joke about this. After all, he bought his equity with real money.

"Okay, let's get ready now!"

Li Jiacheng nodded and said: "I will also confirm with the syndicate behind me!"

Last time, Lin Zhichao did clearly support him, but after all, it was verbal support and he needed to confirm it again. (End of chapter)