The birth of the Hong Kong Island family

Time flies and we arrive in 1987 in a blink of an eye.

February 12 (Thursday), Lantern Festival.

On this day, Cheung Kong Group held its annual financial report press conference, which was highly sought after by domestic and foreign media in Hong Kong and packed the press conference.

As the company with the highest market value in Hong Kong, Cheung Kong Group can only barely rank among the top five in terms of profit. This is because many investments are long-term investments, and the increase in book assets cannot be directly reflected in the financial report.

But this year’s financial report must be very good-looking!

At the press conference, reporters pointed their guns at the rostrum, and some noisy voices filled the venue.

When Lin Zhichao walked into the venue with senior executives such as Lin Ruihuan, Mai Lisi, Huo Jianning, etc., the reporters immediately became energetic and said hello to Lin Zhichao one after another!

"Lin Shengzao"

"Lin Shengzao"

The greetings came one after another, mixed in English, with a tone of admiration and admiration.

Lin Zhichao smiled and waved to everyone and said: "Good morning, everyone is here so early!"

Everyone laughed!

Why is Cheung Kong Group’s press conference the most anticipated every year?

First, all news about Lin Chichao is the most read by Hong Kong citizens and overseas Chinese.

Second, although Cheung Kong Group's profits are generally at a 'normal level', they occasionally make HSBC feel ashamed. For example, the 1981 financial report was more than three times that of HSBC that year (non-recurring profits).

Third, Cheung Kong Group is the most enterprising enterprise, and there are always new investment moves every year, which are highly anticipated.

Subsequently.

Huo Jianning, the ‘Deputy Managing Director’ of Changshi Group, made the annual financial report.

"The total profit of Cheung Kong Group last year was HK$11.2 billion, of which non-recurring profits were HK$9.4 billion and normal profits were HK$1.8 billion. In view of the excellent performance, Cheung Kong Group decided to distribute dividends to shareholders: HK$0.31 per share, involving Funding is HK$410 million.”

The audience was already stunned. If they knew the rules of the press conference, they might not be able to help but ask questions right away!

"Cheung Kong Group's non-recurring profits mainly come from an investment in oil futures, which is a purely sporadic investment event. Cheung Kong Group's hopes for the future are more pinned on multiple large-scale commercial investments in Hong Kong and Japanese commercial real estate investments. And seek better real estate breakthroughs in the future.”

This is the first time that Huo Jianning has been the financial report spokesman this year. It has always been the job of veteran Zhou Fuzhao, but now Huo Jianning has become the Minister of Finance of the Changshi Department, and he is only 35 years old this year.

If not for his experience in Japan, Huo Jianning would not have reached this height. After all, he is now in charge of the entire financial system of the Cheung Kong Group, including descendant companies such as Hutchison Whampoa and Hong Kong Electric.

His financial and technical arrangements in Japan allowed Dongtian Company to invest only 1 billion US dollars in capital, and ultimately supported an investment of 4 billion US dollars, and there were no defaults on the bank. Of course, he also conducted it based on Lin Zhichao's general trend analysis. Otherwise, once the yen does not appreciate and real estate does not appreciate, no matter how good the financial and technical arrangements are, they will eventually collapse, just like the former Jiali Group (if it were not for the Sino-British negotiations, Jiali Group would have collapsed). The Ning Group will most likely succeed, but of course it will collapse again in the future. This is because a person’s character determines his destiny).

on site.

After the financial report was reported, it quickly entered the reporter's question period, which was Lin Zhichao's job.

Although reporters were allowed to freely ask questions to the people on the rostrum, it was obvious that all reporters were asking Q\u0026A with Ke Ze and Lin Zhichao.

Reporter from the Hong Kong Economic Journal: "Lin Sheng, what are the details of that non-recurring profit? Can you briefly explain it?"

Lin Zhichao smiled and said: "I won't use my own money to subsidize the company, so don't worry about this!"

The scene burst into laughter and the atmosphere became relaxed.

Then, Lin Zhichao added: "This is a crude oil futures investment. Originally we did not invest that much. At that time, our team analyzed that crude oil prices would fall with the possibility of OPEC increasing production, so we transferred some funds from the London Investment Department Invest. However, due to the sudden surge in crude oil, we could only cover up our positions to avoid being liquidated, and finally supported the OPEC Ministerial Meeting. Fortunately, we finally made considerable profits."

"Economic Journal": "In other words, Changshi Group's investment has persisted from a futures price of US$30 per barrel to a futures price of more than US$10 per barrel."

Lin Zhichao said: "That's probably it!"

The scene was in an uproar. This level of investment was too high!

Of course, there are many details here, such as why Bren crude oil rose against the market in advance, why Changshi Group dared to increase funds, etc., but it is obvious that Lin Zhichao will not answer these questions.

Next, there are reporters who are ‘looking for trouble’.

Overseas media: "Mr. Lin, Cheung Kong Group has large investments in Japan and the UK. Are you worried about 1997?"

Lin Zhichao: "If I say that Hong Kong is too small and cannot find investment in large-scale projects for the time being, I believe many of you will think that we are arrogant. But that is the fact!" He then added: "If the real estate environment in the mainland matures, I will also go to the mainland to invest."

The reporters were immediately convinced, and the audience burst into applause.

This is not bragging by Lin Zhichao. Just look at the current size of Cheung Kong Group. It has a large land bank in Hong Kong and is one of the largest development real estate developers in Hong Kong. It has a huge commercial real estate portfolio and diversified development.

Next.

Reporter: "Can Lin Sheng tell us about the progress of Changshi Group's investment in Japan?"

Lin Zhichao: “The progress of our commercial projects in Japan is very successful. It is very pleasant to cooperate with several allies (Victoria Investments, Yoshiaki Tsutsumi, Momofuku Ando and other Japanese tycoons and Japanese financial companies). Affected by the appreciation of the yen, The rate of return has been higher than that of investment in Hong Kong. In terms of specific projects, we have planned five Raffles City malls and five comprehensive commercial buildings. The results are outstanding. I am impressed by my colleagues!"

He didn't even mention it, but he also purchased a large number of properties, otherwise it would be really shocking.

Dongtian Investment and Development has invested US$4 billion (1 billion principal and remaining loans), including US$1 billion from Japanese allies and Hong Kong allies, and the total investment is US$5 billion.

Of course, these 5 billion U.S. dollars are actually worth 10 billion U.S. dollars. Just the appreciation of the yen is already this increase in value. Lin Zhichao predicts that after 1989, the value of these properties will be as high as 25 billion US dollars.

Compared with Japan’s previous investment of US$5 billion in Hong Kong from 1986 to 1989, it is already twice as much (in terms of investment amount).

The reporters just listened to the brief introduction of Japanese investment and were already amazed at the power of this investment!

Cheung Kong Group’s investment in Japan began two years before the Plaza Accord, so just the appreciation of the yen was equivalent to nearly doubling its profits. At the same time, what is also amazing is that Lin Zhichao can also invest smoothly in Japan, winning cooperation with Japanese real estate developers and establishing relationships with the Japanese financial community.

Of course, everyone knows that Lin Zhichao met many Japanese celebrities when he was doing shipping business in Japan in his early years, so it is very convenient to invest in real estate now.

at last.

Reporter: "Mr. Lin, can you introduce the situation of the London Investment Department?"

Lin Zhichao: "London investment is currently limited to investments in the financial sector. The wave of privatization in the UK in recent years has made the return rate of the British stock market close to that of the United States, so we have also made considerable profits in these years."

He didn't answer more. Soon he would go to London for a third meeting with Thatcher - to discuss investment in Canary Wharf.

The next day.

Cheung Kong Group’s stock immediately soared by 10%, approaching the 50 billion mark, and Lin Zhichao was immediately dubbed the ‘Stock God’.

Hong Kong business people are shocked. They have made nearly 10 billion Hong Kong dollars in crude oil futures. What a trick!

The citizens were talking a lot.

"I understand. When buying stocks from now on, I will buy Changshi. It is safer than buying HSBC!"

"That's right, the stocks of all companies owned by Mr. Lin Zhichao will rise sharply!"

In the following period, Hutchison Whampoa announced last year's profit of 2.12 billion, and Hong Kong Electric announced last year's profit of 1.58 billion.

The long-term fruit series has entered a period of great harvest!

Wharf Group also performed very well, with profits exceeding 1.6 billion, including a non-recurring profit (foreign exchange) of 600 million.

For a time, Lin Zhichao's reputation reached its peak.

London.

Lin Zhichao met with Thatcher again to discuss the Canary Wharf matter.

In October last year, the Thatcher government implemented the "Financial Big Bang", which was probably to open up the financial market more to compete with Wall Street. For example, foreign securities companies can obtain brokerage licenses in London and allow foreign consortiums to acquire and control British listed companies.

In fact, the London government has been planning the "Financial Explosion" since 1983, during which it gave local financial companies three years to prepare to deal with the impact of external financial companies.

Opening up does not mean that foreign capital suppresses local companies, but it means that local companies can grow more healthily and more funds flow into open places. In short, the advantages outweigh the disadvantages. It is better for a family to talk than for a family to enjoy it, and to enjoy it alone is not as good as to enjoy it among all.

Lin Zhichao knew that the Thatcher government wanted to transform the British economy and focus on the financial services industry; in this case, the Canary Wharf project was a very important part and equivalent to a major achievement of the Thatcher government.

Now, the companies that were preparing to develop it have announced their withdrawal in January, and Canary Wharf has become an 'unowned property'.

meeting venue.

Thatcher and government officials received Lin Zhichao, Lin Ruihuan and Melis.

"Mr. Lin, our government attaches great importance to this project, and I personally believe that you are a very powerful businessman. But what we need now is a clear investment target!" Thatcher looked at Lin Zhichao eagerly.

She attaches great importance to this project. After all, London needs this project to become Europe's 'Wall Street', but today's huge investment scares many investors away.

Only Lin Zhichao is the one she trusts the most! After knowing each other for so many years, she understood that there was nothing Lin Zhichao couldn't do. She knew many things about Lin Zhichao and knew that this man was unfathomable. For example, this man's lover was Audrey Hepburn, her good friend, and now Audrey. Hepburn's growth into a major American plutocrat was the result of this man's promotion.

Lin Zhichao nodded and said: "I have been studying this project for more than a year. I personally believe that in order to be successful, investors need an investment of no less than US$7 billion; secondly, the London government must ensure three public transportation lines: light rail DLR station, Jubilee MRT station, Elizabeth MRT station.”

Without transportation, who would come to your office?

Thatcher said: "This requires huge government spending. I think 7 billion US dollars will also provide assistance in this regard, right?"

Lin Zhichao said: "Yes! Developers can provide assistance to public transportation, such as the DLR light rail station, but it needs the full support of the London government, especially the Jubilee subway station."

The Jubilee Underground Line, another new underground line named in 1979 to commemorate Queen Elizabeth's Silver Jubilee, is one of London's main underground lines.

The entire project is tax-free and does not cost a penny. The tax money will be used to support public transportation.

Of course, Lin Zhichao cannot immediately spend 8 billion US dollars to do this, and he is not mentally ill. However, Cheung Kong Group has already earned more than 1.6 billion US dollars in the London financial market, which is enough to start capital.

Lin Zhichao’s idea is to form the Canary Wharf Group and inject the London Investment Department of Cheung Kong Group into it. Canary Wharf Group continued to invest in British financial products and sought support from large banking syndicates.

In this way, even if he invests 10 billion US dollars, Lin Zhichao may end up paying only 100 million US dollars. It was in the early 1980s that Cheung Kong Group invested US$100 million to establish the London Investment Department.

Of course, Lin Zhichao is not that stupid. He plans to build all the commercial projects in this project at once. He plans to develop it in phases. If Jubilee Metro Station is not invested in its construction, he will not invest too much.

Let’s see who can spend more time than whom!

This project is like a "face-saving project" in the UK. If the government sees that the "project is unfinished", it will have a great impact on the government's credibility and the development of the entire London.

Therefore, Lin Zhichao is not worried about being tricked in the future.

Thatcher said cheerfully: "Of course, without good transportation, there is no way to develop a new financial city. Our government will fully support this project."

She is supportive, and if she remains in power like Merkel in her previous life, the project could be truly completed soon. It's a pity that her term is only three years, so Lin Zhichao is still on guard.

Next, the two parties had a friendly exchange and almost reached a willingness to cooperate.

A week later.

The Cheung Kong Group, a consortium from Hong Kong, has reached an agreement with the British government to develop Canary Wharf.

The two parties agreed that the Cheung Kong Group would form the 'Canary Wharf Group' to develop the 1.26 square kilometers of land in Canary Wharf (11 million square feet, equivalent to 5 Taikoo Shing in Hong Kong, and the entire Canary Wharf is 22 square kilometer).

The agreement has no specific content. After all, it will be finalized based on subsequent planning, but it also reveals the development plan and direction of the project.

For a time, this news attracted the attention of the world media! (End of chapter)