The birth of the Hong Kong Island family

The beginning of October.

After a little more than a week, the USD/JPY has fallen to around 215 points, which is a drop of nearly 20% from the 262 points at the beginning of the year, and a drop of about 12% from the 242 points in the first half of September.

The appreciation of the yen means that Lin Zhichao and his companies have entered the harvest season, including: Victoria Harbor Investment, Lin Zhichao Family Office, Cheung Kong Holdings, Hutchison Whampoa, Uniqlo Enterprises, Shangri-La Hotels and Resorts. Investment projects include: stocks, real estate, foreign exchange.

Therefore, as long as the funds flow into Japan and are converted into Japanese yen, it is essentially equivalent to a profit. Because of this, from the moment the Plaza Accord was signed, a large amount of money began to flow into Japan. In addition, Japan opened its financial market and allowed free convertibility of the yen last year.

this day.

A groundbreaking ceremony was held for the Cheung Kong Group Center Building, where celebrities from Hong Kong were invited, including the heads of Xinshe, Bank of China Hong Kong, and the Hong Kong government, as well as a number of wealthy and famous families in Hong Kong.

At the scene, Cheung Kong Group displayed its blueprint generously, which attracted the attention of many people, including reporters who also took pictures. The host even explained the Cheung Kong Group Center, including specifically stating that the right angles were flattened to show the good neighborliness of the Cheung Kong Group.

Of course, on the other side of the building that looks like it doesn't want to offend the neighbors, the building's "eight triangular shapes", "square base", "base with chainmail", etc. all give people a feeling. This building has special meaning.

Simply put – don’t mess with me!

Governor Youde was the first to praise: "The beautiful and classic architectural design style, once completed, will become a landmark building in Hong Kong. I believe it will also have a place among the world's famous buildings. I heard from people that the overall style of this building , was it designed by Mr. Lin himself?”

People around him became curious!

Lin Zhichao responded: "I can't design at my level, but in terms of appearance, the designer listened to some of my opinions."

Everyone knows that Lin Zhichao is being modest. Even if Lin Zhichao is not a professional designer, he still has very professional architectural knowledge. This is something everyone knows.

At the scene, Ieoh Ming Pei was also invited to attend today. He was focusing on studying around the design blueprint. In his early years, I.M. Pei was also good at skyscrapers, but later he was more interested in the design of libraries and art museums, among which the expansion of the Louvre was the pinnacle of his career.

Of course, the American design company that designed the Yangtze River Group Center is the world's top architectural design company and is even more authoritative in the field of skyscrapers.

So this time I.M. Pei was invited and he was willing to give face. In addition to wanting to see what the building would look like when competing with the Bank of China Building, he also wanted to learn from and appreciate each other among the strong.

"Mr. Lin, what is the name of this tower on the top?" I.M. Pei asked curiously.

Of course, Lin Zhichao couldn't directly call it the 'Freedom Tower', otherwise it would be more or less politically biased, so he said: "This tower symbolizes the status of Hong Kong's free economy. I have been doing business in Hong Kong for many years and have been to many countries for business. Discovering Hong Kong’s free economy is the biggest factor in achieving my achievements today.”

This is what he has always emphasized, and Hong Kong’s so-called free economic system means that the government does not interfere, capital comes and goes freely, and the market competes and regulates freely.

Just the freedom of capital entry and exit will defeat 99% of the countries and regions in the world. In addition, there is a system of free trade.

To put it simply: For example, if investors believe that Japanese real estate will rise, it only takes a few hours or even less to mobilize funds from Hong Kong to Japan, which greatly speeds up efficiency; for example, it may take six months for new electronic products in Europe and the United States to be launched in Japan. A new product may take three months to market, but in Hong Kong it only takes about two weeks, or even a week. Products produced in the mainland are not shipped directly to the world, as this is a waste of time. Instead, they are re-exported in Hong Kong first, which can increase efficiency by half.

Lin Zhichao explained that people representing the Hong Kong government are the happiest. Of course, those representing the mainland have no objections. After all, they are also enjoying the convenience brought by a free economic zone.

After the groundbreaking ceremony, a simple reception was held, but the media storm that followed led to a formal comparison of the three buildings, the Yangtze River Group Center, the Bank of China Tower, and the HSBC Tower.

In the conference room of Changshi Group, senior executives were having a meeting, and Lin Zhichao was still presiding over the meeting.

At this time, although Cheung Kong Group has entered the second generation management system, including Lin Ruihuan, who has also taken the position of 'deputy managing director', Lin Zhichao still holds the position of chairman of the board of directors after all.

Normally, Lin Zhichao does not interfere with the operation of Cheung Kong Group; however, when Lin Zhichao needs to make arrangements, everyone will follow his instructions.

This was the first meeting chaired by Lin Zhichao after the Plaza Accord. Everyone was very happy. The boss’s decision to invest in Japan this time was really a wise one!

Lin Zhichao first said: "Jianning, how is the business progress in Japan? You can give everyone a work report!"

Huo Jianning nodded immediately, and then reported: "At present, Changshi Group has injected a total of 400 million US dollars into Japan, accounting for 40% of the equity of Dongtian Development Investment. Dongtian Company's investment in Japan is a commercial real estate investment. , first of all, there are plans for four 'Raffles City' malls. The first two have already started construction. The total investment in these four 'Raffles City malls' is as high as 2.2 billion US dollars. Of course, there are other Japanese investors (accounting for about 30% of the shares). %). In addition to the 'Raffles City' project, Dongtian Investment and Development also invests in comprehensive commercial office buildings in Japan. There are currently seven buildings with a cost of US$1.25 billion. This part is fully owned by us. Finally, we also own four Commercial land can be used to build commercial complex buildings at a cost of US$350 million. These properties are distributed in the business districts of Japan's three major metropolitan areas, and the Kyoto business district accounts for 70% of the investment."

A full investment of 3.8 billion US dollars, even if the 660 million Japanese investors are excluded, has already been fully invested 3.14 billion US dollars. But the start-up capital for Dongtian Investment and Development is only US$1 billion, and the rest is obviously completed through loans.

In fact, Japanese loans during this period are not as easy to obtain as in the next few years, but Lin Zhichao's connections in the Japanese financial community and the strength of Cheung Kong Group are fundamental to obtaining loans.

Of course, half of the US$2.2 billion investment in Raffles City Tower 4 has not yet been spent, so the loan is not too exaggerated.

After listening to this, everyone's faces showed joy. I am afraid that their investment in Japan will make a lot of money.

Lin Zhichao commented: "As the yen appreciates, our investment in Japan is equivalent to appreciating; in the next year, the high probability of the yen is that the five countries will join forces to abandon the U.S. dollar, which in turn will drive investors to abandon the U.S. dollar and the Japanese yen Continue to appreciate; the world's funds are flowing into the Bank of Japan, so the banks will definitely lower interest rates and issue loans, and eventually the funds will flow into real estate and the stock market. This is the reason why I chose to invest in Japan. I believe you understand it now!"

Everyone nodded one after another, showing admiration.

Lin Zhichao continued: "Jianning, Japan's commercial real estate investment can be continued appropriately based on financial arrangements. As long as the Bank of Japan is willing to lend, we can continue to make additional loans. The last year has been a good time."

Huo Jianning nodded and said, "No problem, boss!"

Lin Zhichao nodded with satisfaction. Huo Jianning was very reassuring in terms of financial arrangements.

"Since the Japanese business is on the right track, I plan to let Huo Jianning go to Hutchison Whampoa to serve as a director again!"

Huo Jianning said calmly: "Thank you boss for your trust!"

Others were surprised. Huo Jianning was promoted very quickly. In 1983, he became a director of Cheung Kong, and only two years later he became a director of Hutchison Whampoa.

Of course, Huo Jianning also had outstanding achievements at this time, that is, the Japanese business was doing very well.

Everyone also has some doubts. Lin Ruihuan, the general manager, is not yet a director of Hutchison Whampoa. Among the directors dispatched by Cheung Kong Group to Hutchison Whampoa, they are Lin Zhichao, Mai Lisi, and Huo Jianning. As for Li Yeguang, he was invited by Hutchison Whampoa, although he is Lin Zhichao's adviser.

However, Lin Ruihuan has no objection. Although Hutchison Whampoa has a wide range of businesses, Cheung Kong Group is larger and has a wider business distribution. Although he is 36 years old this year, he has never thought about taking over. After all, he understands his father's physical condition.

However, in Lin Zhichao's eyes, otherwise Lin Ruihuan went to Hutchison Whampoa to serve as a director, it was just that the time had not arrived. As long as Lin Ruihuan has a good relationship with Melis and Huo Jianning, it will not be logical to control Hutchison Whampoa in the future. What's more, this is the time when Ma Shimin is favored, and Lin Zhichao doesn't want him to restrict him too much.

As for arranging Huo Jianning to join, the first is to train Huo Jianning, and the second is that Huo Jianning can support overseas business.

Lin Zhichao asked: "How is the leasing situation of the Exchange Building?"

Next month, the Exchange Building will also be put into use, with a total floor area of ​​1.5 million square feet.

Lam Sui Huan Hui reported: "The current vacancy rate of Exchange Square Phase 1 is 5%, which is much better than the 7% vacancy rate of Central Tower. This is due to the fact that many large institutions have chosen Exchange Square and its unique location The current rent at Exchange Square is HK$23-25 ​​per square foot, and the annual rent is about HK$450 million."

The investment in the entire Exchange Plaza is HK$8 billion (including interest), and the current annual rent is only HK$450 million, which is obviously not much; of course, there is also the 500,000 commercial floor space in the second phase of the Exchange, including a 125,000-square-foot shopping mall. The rent can even be very high.

However, considering that in the late 1980s, the rent of Exchange Square could reach HK$85 per square foot (increasing year by year), that was already a very high return.

Hong Kong's rents have risen sharply, and of course they will not be polite if they fall. In short, they "rise and fall with the market". The government only has a small amount of policy intervention, which does not affect the overall rise.

But Lin Zhichao believes that it is better than ‘not allowing the decline’, and that free market adjustment is more important.

Lin Zhichao said: "Well, in addition to developing commercial real estate in Japan, Changshi Group may also develop commercial real estate in Europe and the United States in recent years."

Everyone nodded, and Meris then said: "Changshi Group has a low debt ratio and high annual income. Appropriate investment in overseas real estate will help the company's long-term development."

Over the years, Merlis, an economist, has also figured out Lin Zhichao's law - that is, buying the bottom when the real estate industry is at a low point, and tightening the real estate industry at its peak. Of course, this approach should be taken, but there are a few bosses in the world who can see the situation clearly. But Lin Zhichao, the boss, not only sees the situation clearly, but more importantly, he does not invest with high debt.

However, some time ago, the Cheung Kong Group did make Meris a little worried, investing up to 10 billion Hong Kong dollars (40% equity) in Japan; now, his worries have finally disappeared.

After the meeting, Lin Zhichao asked Lin Ruihuan and Mai Lisi to come to his office.

He spread out a map of London, pointed at Canary Wharf and said: "This place is being planned and developed by the British government, and private consortiums will be introduced to develop it in the future. As for this place, I am very optimistic about building a second financial center in the UK, similar to The Wall Street of the United States will become the Wall Street of Europe.”

Meris immediately said: "Boss, there is no public transportation here, and the investment is huge, it is too risky!"

Lin Zhichao nodded and said: "What you said makes sense, but what if Thatcher promised me that the subway, light rail, etc. would be built here? After all, since the British government wants to develop here, they naturally have to provide good external conditions. "

Meris immediately said: "Even so, this project will probably cost more than 5 billion US dollars!"

Lin Zhichao nodded!

Lin Ruihuan said: "Investment funds in London have invested more than 300 million U.S. dollars in investing in London stocks over the years and made more than 200 million U.S. dollars in profit, but it is far from enough. Unless, after the profits from Japan are clear, they can gamble A handful. The UK has a good business environment and a stable political environment.”

Lin Zhichao said: "If you want to invest in this project, it will cost at least 5 billion US dollars, and it may take ten years to enter the payback period. Of course, 5 billion US dollars is not all at once. Let's keep in touch and see the situation. After all, it won't be possible to negotiate. It might take a year or two.”

Seeing this, Mai Lisi stopped refuting.

Of course he has no objection to investing in the UK. After all, he is a British person and knows that the UK's business environment and political environment are among the best in the world. After all, it is a country built on business.

Lin Zhichao continued: "Before this, I want you two to arrange a 'short crude oil' investment! According to the analysis of many years of crude oil transportation, the United States wants to force OPEC to increase production, and Saudi Arabia also wants to regain pricing power. Under these factors Next, crude oil will plummet. It is also very promising to drop to more than ten dollars!”

The two listened attentively, and Merlis then said: "The boss wants investment companies in London to short Bren crude oil?"

Lin Zhichao nodded and said: "I plan to use 100 million U.S. dollars as the principal of this investment! But instead of investing it all right now, I want you to make preparations first. When the opportunity is about right, I will report to you You gave the order. As for the 100 million U.S. dollars, you can use the stocks in the London stock market as collateral and get a loan to raise it!"

"OK"

"clear"

This time, Yangtze River Holdings also participated in shorting oil, using US$100 million and 10 times leverage, or US$50 million and 20 times leverage. Of course, the time of buying is key. Lin Zhichao plans to buy in ten trading days starting from the last week of November, so as to control the risk to the maximum extent and reduce the attention.

Of course, Victoria Harbor Investment will also participate, which will invest US$200 million, with at least 10 times leverage.

Lin Zhichao has calculated that this wave of shorting oil can obtain more than 6 times the income in a short period of time, and he and his company can gain 2 billion US dollars.

Investing in Canary Wharf in the UK may require nearly US$10 billion over the next 10 years or so. In the previous life, the Canadian Yorkman family went bankrupt directly because of this project, and in the end they did not wait for the victory.

Of course, Lin Zhichao would not be so stupid. He first had to ensure that he could afford it, and secondly, he had to ensure that he made enough money in the British financial market, so that he would invest.

It was difficult for Cheung Kong Group to invest solely in this project. Victoria Harbor Real Estate could join in in the future. In the end, Lin Zhichao made this project the golden rooster of Lin Zhichao’s family. (End of chapter)