The Industrial Giant Reborn

"Okay, let's fight for it. This time is the time when the risk is the greatest and the reward is the greatest. If you use leverage to buy land or properties on a large scale, you can easily earn several times if you win the bet." Chen Tianfu nodded and said.

Chen Zhiwen said with a smile: "During this period, Cheung Kong and Sun Hung Kai have been absorbing a large amount of land. Their vision is not bad. We don't need to understand the details of the market, just keep an eye on these people."

Chen Tianfu said: "That's true. Follow them. You shouldn't go wrong. Aren't you going to buy the bottom?"

"I'm also planning to buy the bottom, but it's not the land." Chen Zhiwen shrugged and said, and then said that he planned to acquire Yonggao.

"Okay, I know you have a vision, and you don't like those mediocre land." Chen Tianfu laughed. He often chatted with his son in the past six months, and he also felt that his son seemed to be ambitious, and he was not on the same level as him. , but he did not expect that he would directly prepare to acquire the Central Building.

Chen Zhiwen said: "Dad, from now on, we can borrow a lot of money, but we need to lock in the loan interest rate."

"Why lock in interest? Isn't it safer to follow the market?" Chen Tianfu asked.

Chen Zhiwen replied: "Because of the oil crisis, European and American countries have fallen into recession. Even if OPEC resumes production capacity, the era of low energy prices is over. This will inevitably lead to large-scale inflation in the next few years. Under normal economic logic , serious inflation will definitely raise interest rates.

Once the United States raises interest rates, the global dollar will return, and the currencies of other countries will depreciate. The only way to deal with it is to raise interest rates to retain funds. Hong Kong dollars will raise interest rates regardless of whether they are denominated in US dollars or British pounds. We lock in interest now. It is equivalent to transferring the risk. "

"I don't understand." Chen Tianfu was very honest. Although he was doing well in the business world, he still didn't know enough about the macro economy.

"Anyway, just trust me. The Hong Kong government has raised interest rates four times this year, and raising interest rates will definitely be the norm in the future." Chen Zhiwen said with a shrug.

The sharp drop in Hong Kong stocks this year is due to natural economic factors and the reason for the Hong Kong government to raise interest rates. The most fundamental logic is that under the stock market crash, a large amount of funds fled and were converted into US dollars and pounds to leave, which put great pressure on the foreign exchange reserves of the Hong Kong government. , In order to retain funds, interest rates can only be raised several times, and the rate hikes will inevitably cause the stock market to plummet, and the funds will want to flee even more, forming a death spiral.

Then came the oil crisis, which dealt a heavy blow to Hong Kong's economy. Fortunately, in March 1974, the oil crisis ended and confidence in the global market was restored. However, high oil prices became a reality. Inflation in Europe and the United States exploded, and they were forced to raise interest rates. Naturally, a small place like Hong Kong could only follow suit. Something similar happened a few years later.

In later generations, in 1980, the highest loan interest rate in Hong Kong was as high as 20%. Bao Yugang, the shipping tycoon, forcibly bought Wharf and asked HSBC to borrow 2 billion. He sold the property within a year and paid it back. The interest rate is too high. Yes, few industries can afford it.

Had it not been for the various good news in the northern mainland that stimulated the Hong Kong property market, it is estimated that the real estate market would not have risen at all in the late 1970s.

"Okay, then it's up to you." Chen Tianfu nodded. As long as the real estate market recovers, even if the interest rate drops in the future, the land bought at a low price will still make money, just earn more and earn less.

After spending Christmas and New Year's Day at home, time entered 1974.

On January 8, Chen Zhiwen made an appointment with Shen Bi, and arranged a banquet at the Mandarin Oriental Hotel for him.

"It's such a sumptuous meal. The two of us eat it. Isn't it too wasteful?" Shen Bi couldn't help laughing when he saw more than twenty dishes on the table after entering the luxury private room.

Chen Zhiwen stood up, smiled and stretched out his hand and said, "Mr. Shen Bi, the real Manchu banquet has 108 dishes. Hong Kong's ability is limited. Otherwise, I will definitely gather them all to entertain you."

"Chen Sheng is polite." Shen Bi was also very satisfied. Although the young man in front of him was young, after several exchanges, he found that the other party was quite knowledgeable, and his predictions on the stock market and real estate were also very accurate. The investment has made him worth hundreds of millions, and at such a young and successful situation, he is not arrogant at all, not only for him, but also for many others. This is very rare. It can be said that he is very optimistic about Chen Zhiwen in Hong Kong s future.

"Please sit down." Chen Zhiwen said with a smile.

After the two sat down, the waiter stepped forward and poured thousands of Hong Kong dollars of French red wine into their glasses, and then exited the private room.

"Good wine." Shen Bi took a sip and said with some aftertaste.

"As long as Mr. Shen Bi likes it." Chen Zhiwen smiled and said, "I have already ordered a few boxes from France, and I will arrange for someone to deliver it to Mr. Shen Bi's mansion."

"That's unnecessary. Accepting such an expensive gift is always risky, and it's not necessary." Shen Bi shook his head lightly and refused.

"Okay." Chen Zhiwen is not hypocritical. No matter how expensive red wine is, it is just something outside of the body, and the meaning it contains is the most important. Shen Bi is not yet a bank executive, and there are other candidates for the next executive. A century-old company like HSBC must have internal factions. A lot, if you pay too much, it may not be a big deal, but there is no need to take this risk.

Shen Bi said: "Chen Sheng, you want to acquire Universal Electronics, Huodoli has already negotiated with the other party, 5.5 million Hong Kong dollars."

"Huodoli is really expensive and fast!" Chen Zhiwen said in surprise. His former subordinates also had contact with Universal Electronics, but although they did not completely reject his side, they always ignored them and delayed many things. It took less than a month to get it down, but I didn't expect HSBC to be so fast.

Shen Bi smiled and said: "The boss of Universal Electronics is old, and actually plans to retire. In addition, business is not good during this period, and they owe a lot of loans to HSBC. According to our contract, we need to increase As for the collateral, it requires a lot of investment, but they can get a sum of money after selling the company, and they naturally understand the choice between coming and going."

"I see." Chen Zhiwen nodded and said that HSBC's presence was indeed a great pressure for a manufacturing company whose business was not good and relied on long-term order loans.

The boss of Universal Electronics probably wanted to sell it too, but before the Xinghe people went, they didn't know the details and dared not make a random decision, but HSBC came forward and it was different, this is the golden signboard.

"Is this fund Chen Sheng owns in full or a loan?" Shen Bi asked.

"How about a loan?" Chen Zhiwen laughed. Although there are not many, the rules for inviting HSBC to acquire a company must be followed. In addition to charging a handling fee, the transaction funds are generally obtained from HSBC's loan when HSBC acquires a company. The same is true for many projects, so this is actually hello, me, hello, everyone.

"Then follow the old rules, 30% to 70%." Shen Bi said indifferently, he didn't care about the millions of Hong Kong dollars, the 30% to 70% was paid by the third-tier counterparty, and 70% was HSBC loans.

Chen Zhiwen then asked: "Mr. Shen Bi, how is the Yonggao matter?"

PS: It's still cloudy, ready to enter the top 16 finals!