Chapter 211 The beginning of the run on Liu Chongxing Bank

Chapter 211 The beginning of the run on Liu Chongxing Bank

Chapter 211 The beginning of the run on Liu Chongxing Bank

Yang Wendong's wife gave birth to a boy, and the news soon spread among a small class circle in Hong Kong.

The next day, several groups of people came to visit. Zhao Liming, Lin Haoyu and their families were naturally the first group, and several senior business executives under him were the second group.

After that, there are a few business partners with whom we cooperate more frequently.

Yang Wendong also greeted the guests happily, and after they left, he started to look after the children.

But he also discovered a problem: in this era, there were no diapers, only cloth diapers.
A few days later, Hong Kong's famous private hospital: Hong Kong Sanatorium and Hospital.

Yang Wendong held the baby in his left hand and fed the baby with a bottle in his right hand.

"Drink more." Yang Wendong said with a gentle smile.

These days, he has been staying in the hospital to accompany Su Yiyi and her son. As for the company, there are managers there, so it won't have much impact if he goes a few days late. The company's direction is correct, and they are operating according to their own requirements.

After a while, the baby fell asleep while drinking milk, and a nanny immediately took the child away.

At this moment in the hospital, in addition to Yang Wendong and Aunt Guo, there were three nannies who were constantly taking care of them.

Su Yiyi also recovered somewhat, but her face still looked bad. Yang Wendong stepped forward and asked, "How do you feel?"

"Much better." Su Yiyi said with a smile, "Our baby is so cute."

"Of course. With our genes, it's not bad." Yang Wendong smiled.

Then I looked at the baby sleeping on his side next to me. His profile really looked like the curve of Crayon Shin-chan.

A week later, Su Yiyi and her son returned to their home, where preparations had already been made to take care of them.

Yang Wendong naturally spent more than half of his time accompanying them, watching his children grow up gradually. The joy in his heart was happier than earning tens of millions of Hong Kong dollars.

Time quickly came to March.

Yang Wendong once again came to the top floor of the Honghua Building, where Changxing Real Estate is located.

"Is the Geely Building almost finished?" Yang Wendong asked after seeing Zheng Zhijie. "When I passed by just now, I saw that the main building had been completed."

Zheng Zhijie said: "Yes, the main building has been completed and the decoration is almost done. It was done simultaneously before. Now the desks and chairs for office supplies have also been brought in. It just takes about a month to wait because the smell inside is a bit strong."

"Well, okay. It's summer now, so the smell will dissipate quickly." Yang Wendong nodded and asked, "Isn't it enough here at Hong Kong China Building?"

Hong Kong China Building now has four business divisions: newspaper, radio, real estate and shipping.

In the early days, several companies were just starting out, and there was still a lot of idle space. However, over the past year or so, several companies have experienced explosive growth, and the number of employees has also increased dramatically;

What’s more, the headquarters office of the entire Changxing Group is also here, making it even more crowded.

Zheng Zhijie nodded and said, "Yes, now we are just waiting for the Geely Building."

"Well, how are the communities in Causeway Bay and North Point?" Yang Wendong asked again.

"I'm ready to sell the property." Zheng Zhijie hesitated and said, "It's just that the real estate prices have dropped a bit in the past few months. I'm wondering if I should wait a little longer."

"No need to wait, as long as there is no loss, the funds need to flow." Yang Wendong said nonchalantly.

Although there was a bull market from 58 to 64, a long-term bull market does not mean that real estate prices will continue to rise on average. To be precise, they will rise overall amid constant fluctuations.

This was the situation in 61. Everything was fine at the beginning of the year, but in April, real estate prices stopped rising. In May, there was a slight drop, and the magnitude was larger than usual, which even caused panic in the market.

But it is actually normal. From 58 to 60, land prices in many places almost doubled. This continuous high-speed growth will always pause for various reasons. After a period of time, investors and home buyers will get used to it and increase their investment again.

This is normal self-regulation of the market.

Zheng Zhijie added: "There is another thing. At the beginning of this year, the Fortune Building in Tai Kok Tsui ran out of funds because the boss behind it failed in investment in other places.

In the end, the owner had to pay extra money to have the house built. This incident caused heavy losses to the two banks. The Hong Kong government is preparing to legislate to restrict pre-sales of uncompleted properties, but it is not yet known how to restrict it. "

"It's better to have some restrictions." Yang Wendong didn't care. He said, "Although the restrictions will make it harder for us to make money with higher leverage, the entire real estate market will be much more stable. In the long run, it will be good for us."

Although Hong Kong was the first city to invent the pre-sale of property, there were not many unfinished buildings from the 60s to the new century.

On the one hand, it is because housing prices are indeed rising rapidly, and in this social environment, it is difficult to leave a project unfinished.

In addition, in order to avoid financial risks and possible social unrest, the British Hong Kong government began to legislate to restrict pre-sale properties after the initial emergence of unfinished buildings.

This point was not learned well by a certain apprentice, which eventually led to a certain Xu owing a huge debt.

Zheng Zhijie smiled and said, "Okay, then I will proceed with the auction as normal. Before the Hong Kong government's policy comes out, we can still recover the funds earlier."

"Well, OK." Yang Wendong asked again, "Has the land price in Kwun Tong also dropped?"

Zheng Zhijie said: "That place is different from other places, probably because of the 10,000-person industrial park of Changxing Industry;

Although the current economic benefits are not high, real estate developers will brag that with future potential, local land prices can still be stabilized. Land prices near our factory are still rising, and many people have already started doing business as factory construction workers. "

Yang Wendong nodded and said, "Okay, don't worry about the current fluctuations in the real estate market. It's the same as before, and the land price is a little lower now. You should strive to buy more properties."

"No problem." Zheng Zhijie agreed, and then said: "Mr. Yang, there is one more thing. Although the Geely Building is almost completed, with the development speed of our group, I estimate that in one or two years, the existing office space may not be enough.

So I think I'm going to build another building nearby, and I've already bought the land."

"Okay." Yang Wendong naturally agreed: "Even if we can't use it after it's built, we can still rent it out." 66 will be a hurdle, but the land in Central cannot be acquired unlimitedly even in 66. If you want to acquire properties or land here, you need to operate for a long time and wait for opportunities slowly.

Of course, directly acquiring companies that own properties in Central is also an option. However, most of the companies that own properties in Central are British giants, and a small number are newly emerging Chinese giants. It also takes time to wait for such an opportunity.

"Okay, I'll show it to you once the design is out." Zheng Zhijie said with a smile.

Yang Wendong nodded, and then said: "Old Zheng, I will give you another task. Go check the status of all the assets under Liao Baoshan.

The Liao family's real estate company is not a listed company and uses its own bank funds. In addition to a few well-known Central buildings, I also need to know other information. "

According to the original history, there would be a bank run on Liu Chong Hing Bank in mid-June. However, because of his appearance, Yang Wendong did not know whether history would change or whether the bank run on Liu Chong Hing Bank would be postponed.

However, there is a high probability that it will happen, because the way Liao Baoshan plays it will inevitably explode as long as there are problems in the real estate market, and now, there are problems in the real estate market.

This problem is not a big problem for ordinary real estate companies, as they can make some money at most, but it is fatal for companies with particularly large leverage. The Liao family's real estate company has always been dependent on leverage and has never had any ground.

"Okay." Zheng Zhijie didn't know why the boss wanted to check, so he just did it himself.

Time soon came to June 6. On this day, Zheng Zhijie brought the information he had collected after a week of investigation: "Mr. Yang, these are the main properties currently under Liao Baoshan!"

"Let me see." Yang Wendong immediately put down the financial information in his hand, took it, looked at it for a while, and said with some emotion: "This is a lot of properties. The total area looks like 5 or 6 million square feet, right?"

"Almost." Zheng Zhijie nodded and said, "This is just what I found, and it's actually some semi-public information.

Liao Baoshan once publicly claimed that his assets were worth hundreds of millions. Although that may be an exaggeration, I estimate that it is still in the tens of millions.

Outsiders don’t know how much money he owes his bank for these properties. These are all top secrets. It is said that few people in the entire Liao Chongxing Bank know about it.”

"That's about right." Yang Wendong nodded and said, "The deposits of Liao Chong Hing Bank are estimated to be around 200 to 300 million. Among Chinese banks, it is second only to Hang Seng Bank and Bank of East Asia."

“Yes.” Zheng Zhijie also said: “And Liao Baoshan is really a business-minded person. In the past, all banks valued rich people, or at least senior employees of large companies.

He was the only one who thought of gathering the wealth of the lowest class of citizens, and within ten years, he expanded Liu Chong Hing Bank to become the top Chinese bank in Hong Kong. "

Yang Wendong agreed and said, "Yes, he must be very capable. This move is a way to overtake other banks.

But he was too greedy. If he was doing normal banking business, there would be no problem. But he used so much bank funds to do real estate for himself. It was like walking on a tightrope on a cliff. If he was not careful, he would be crushed to pieces. "

Not to mention a normal person, even Yang Wendong, a time traveler, would not dare to invest the bank's funds on a large scale into the real estate industry if he opened a bank.

Even if you know the future trend, there will be declines during the upward trend, and you may lose money if you are not careful.

For ordinary real estate companies, it doesn’t matter if they make a small loss, but for banks, it’s the same. This is determined by their inherent characteristics.

Zheng Zhijie asked cautiously: "Mr. Yang, do you mean that the rumors about Liao Chongxing Bank in the market in recent days will cause it to have problems?"

"It's very likely." Yang Wendong said with a faint smile: "Even if nothing goes wrong this time, Liao Baoshan's way of playing will definitely not last long."

As the Hong Kong real estate market slowed down in April and May, many people held on to their money and waited because house prices had risen so sharply before, which led to many properties being unsold.

In the case of leveraged lending, a single unsold product may lead to a break in the capital chain, which may affect other businesses within the same company and cause a domino effect.

Many of Liao Baoshan's properties under development have encountered such problems, and there are already a lot of rumors on the market.

Zheng Zhijie frowned and said, "If there is a problem with Liao Baoshan's real estate business, it is very likely that it will affect his bank."

"Yes, so I asked you to transfer all your deposits a long time ago." Yang Wendong said.

Today they still have a lot of cooperation with Liao Chongxing, all of which are loans.

As for deposits, they will all be cleared this year. For this reason, Liao Liewen also found Yang Wendong and wanted Changxing Group to use the account of Liao Chongxing Bank as a public account. Of course, he did not agree.

Zheng Zhijie also understood the boss's intention, so he said, "Then what do we need to do?"

"You don't have to do anything, just wait." Yang Wendong shook his head and said.

Since it was something that was bound to happen in history, there was no need for him to do anything about it. After all, Liao Chong Hing Bank had helped him in the early days, and Liao Liewen was half a friend of his, so there was no need to go to extremes.

He would even be willing to save Liu Chong Hing Bank as long as he could gain some benefits.

Unfortunately, the hole is too big. Once the bank is run, even if tens of millions of cash are poured into it, it will not be enough. The only ones who can save Liu Chongxing are the Hong Kong government or reputable banks such as HSBC and Standard Chartered.

"Okay, I understand." Zheng Zhijie nodded.

……

The time will soon come to June 6st.

There are more and more rumors about Liu Chong Hing Bank in the market, and they are becoming more and more outrageous.

The Liao family immediately came out to refute the rumor, but it was useless. More and more people came to Liao Chong Hing Bank to withdraw money.

On June 6, several newspapers revealed that Liao Baoshan had invested in real estate and suffered huge losses.

That afternoon, a large number of citizens crowded the intersection in front of Liu Chong Hing Bank, queuing up to withdraw money.

The first bank run in Hong Kong’s history has begun.

(End of this chapter)