Chapter 390: Initial Preparation for the Real Estate Crisis

Chapter 390: Initial Preparation for the Real Estate Crisis

Chapter 390: Initial Preparation for the Real Estate Crisis

"Changxing Shipping's ships are all large and cannot be used to transport this." Yang Wendong thought for a moment and said, "Then we can only ask them to buy a small transport ship, because large ships cannot dock at small ports."

Even a second-hand ship cannot do this as it is too big. Transporting a small amount of oil is a waste in itself, and the port is an even more unsolvable problem.

My future plastic smelting plant cannot be built next to the existing port, so I have to operate this kind of infrastructure myself.

Wei Zetao nodded and said, "Yes, there are small oil tankers for offshore transportation in Japan. The price is not expensive, just a few hundred thousand dollars. But in Hong Kong, we will have to build a small port near the factory in the future to facilitate the transportation of naphtha or plastics to be refined in the future. The total cost will probably be a million dollars."

"Yes, but there is nothing we can do. Hong Kong is not like Taiwan. Without this industry, there would be no such infrastructure. We have to invest in many things ourselves." Yang Wendong nodded and said, "However, if we don't try, we will never know whether we can do it, so we still have to invest what we should invest."

Nowadays, plastics have become the most core components of Changxing Industry, almost without exception; in the future, when we enter the home appliance industry, we will also need a large amount of plastics, and the same is true for Hong Kong's future economic development.

So even though I have invested in Formosa Plastics, this does not affect my personal trial. After all, it is unlikely that I will be able to obtain the controlling stake in the other party. Once Formosa Plastics really becomes the top company in Asia, it may not be subject to my control. I have to be prepared for the second time.

If Hong Kong doesn't work, then go to Singapore to invest in the oil derivative industry. This country has achieved some success in this area in the past, so at least it should be feasible.

"Okay, then I'll prepare to choose a place. I'll report to you once the specific data comes out." Wei Zetao said happily.

Even if a project involving millions of dollars is to be launched, it must be approved by the big boss Yang Wendong.

Yang Wendong added: “When choosing a place, you must consider the need for future expansion, so don’t refer to other factories and try to hoard land;

It can be placed in a more remote place. This industry itself is polluting and should not harm the people around it."

It is certainly important to hoard land to make money, but there is no need to mix this purpose with the very small number of polluting factories. Not to mention whether it will be controversial, even if the land is hoarded, it will cost a lot of money to clean up the land pollution when it is relocated and then developed.

Although it will definitely be profitable, it is too much trouble. With this energy, it would be more convenient to buy a piece of urban land next year. Or build more farms, which are simple, low-investment and more profitable.

Of course, if his oil derivative industry reaches a certain scale, and then an economic zone is formed around it driven by the market, then relocation will inevitably leave land with development value. There is nothing he can do about it, and it is not something he can control. He will not deliberately hinder the self-formation of wealth.
Wei Zetao thought for a moment and said, "Why not put it on Tsing Yi Island? The oil depot of Mei Mobil has also been moved there. I heard that the Hong Kong government is also planning to move the power plant of China Light and Power there.

I guess the Hong Kong government intends to turn it into a heavy industrial area in Hong Kong, so that some necessary heavy industries can be developed, these industries can be separated from residential areas, and the local economy can be promoted. "

"Qingyi Island? Sure." Yang Wendong thought about it and nodded in agreement.

In the past life, Tsing Yi Island was indeed one of the heavy industrial bases, but this heavy industry was only relative to other places in Hong Kong. Compared with other countries, it was child's play.

But this is normal. Heavy industry can only be successful if it is promoted by the government. In the past, the mainland, Japan, South Korea, Singapore, etc., heavy industry development was promoted by state-owned capital or the state encouraged large conglomerates to participate.
Hong Kong has always implemented the principle of "market freedom". Unless it is an essential industry such as power generation and oil for daily use, the Hong Kong government will not promote other heavy industries.

In this regard, Hong Kong does have a huge disadvantage compared to the other four little dragons and four little tigers. In the future, when industrial upgrading is needed, without the foundation of heavy industry, light industry will be just castles in the air. Once labor costs or land costs increase, it will inevitably die. Even if there is no domestic reform and opening up, the future industrial outcome of Hong Kong may be the same.

"Okay, then I will go and investigate the information right away." Wei Zetao said happily.

After Wei Zetao left, Yang Wendong looked at Zheng Zhijie and asked, "How many residential or commercial buildings do you have to develop recently?"

Zheng Zhijie replied: "There are still 7 in total, including 5 residential buildings and 2 small commercial buildings. It is estimated that they will be sold in the second half of the year."

"Okay then. Starting today, we will stop acquiring land for all projects. The entire Changxing Real Estate will stop all new projects." Yang Wendong said.

The laws in Hong Kong regarding pre-sale of properties are not like those in the mainland in the future. You cannot pre-sell properties after you have acquired the land but before the foundation has been laid. Instead, you can only do so within 8 months before completion. In this way, at least the buyers can see the floors, and because time is running out, the risk of unfinished projects is very low.

It can be said that this is a compromise solution that facilitates real estate companies to recover funds in advance, guarantees the interests of homebuyers, and controls risks from the whole social level. If the mainland was like this in the past, Evergrande’s 2 trillion yuan debt might not be so much. So many people would not have bought unfinished buildings, which would have ruined their lives.
Therefore, knowing that there would be problems in the real estate market in early 65, I would have stopped all actions at the beginning of this year. There was no need to earn the last penny. If the real estate crisis came earlier due to my own reasons, I would have suffered a huge loss. Of course, it might also be delayed, and such things are hard to say.

"Okay, I understand." Zheng Zhijie agreed quickly. This was also known to everyone. His boss was not optimistic about Hong Kong real estate, and no one would doubt Yang Wendong's judgment.

Yang Wendong added: "Except for Carrefour, you still need to be cautious. Unless it is in a prime location, don't buy it. If you really like it, let me take a look at it in advance."

We can only find a balance in this matter. Although the expansion of Carrefour is important, it will not take half a year or a year. And if there is really a good location, he will agree.

"No problem." Zheng Zhijie paused and asked, "Should we start cashing out the properties we have now?"

This is necessary because a large number of properties and land in Changxing Real Estate's hands were purchased with early loans. This is how the real estate industry operates. If you really rely on your own funds to buy a house, you will lose a lot of money.

Once you know that real estate prices are about to fall, you must sell some of them while they are high. On the one hand, you can get a lot of cash to buy at a lower price later, and on the other hand, you can reduce your debt.
Because once the real estate price drops, the value of the high-priced collateral will drop. In order to control the risk, the bank will require the company to repay the loan or increase the collateral. This is also the biggest reason why many real estate companies go bankrupt during the crisis. "Don't worry about this." Yang Wendong thought for a while and said, "In this way, in addition to Central, some larger properties or higher-value properties in other places can release news first to attract some buyers. If they are willing to buy, then we can negotiate.

For other ordinary properties, which are plentiful but easy to cash out, let’s wait until the second half of this year to start.”

For properties with higher values, selling them in bulk also takes some time and cannot wait until the last minute; however, there is no such hidden worry for small properties, but they cannot wait until the last two or three months because the quantity is too large.

Therefore, the former takes one year and the latter takes half a year, giving the market enough time to digest it, just like the stock market. Otherwise, if there is a large-scale market crash and the real estate crisis is triggered ahead of time, you will suffer huge losses.

"Okay, I understand." Zheng Zhijie nodded.

As an insider, he naturally knew what the boss meant, and this was normal operation.

Yang Wendong went on to say: “The same is true for the needs of other subsidiaries. As long as it involves real estate, the scale is less than 50 Hong Kong dollars, and it is needed for its own development, then it can be purchased without reporting;
If the value exceeds HK$50, or it is not urgently needed, you must tell me and I can only buy it after I agree. "

If it was before, when the real estate industry was on the rise, Yang Wendong would basically authorize his subordinates to make their own decisions on real estate investments within HK$200 million and property projects that had development needs. Of course, this also required the approval of the headquarters' review department, and after the transaction was completed, all information needed to be notified to Yang Wendong at the end of the month, and he would then make a judgment afterwards.

The purpose of doing this is to let my subordinates gradually understand my attitude towards this matter. If I don't say anything, my subordinates can do things based on their own experience in the future. Otherwise, they should be more cautious.

Although in the early stages this may lead to his subordinates making some acquisitions that Yang Wendong may not be satisfied with, the company is small in scale and it is impossible to lose money because the market is rising. It can also allow his managers to gradually understand him, laying a foundation for reducing his workload when the company becomes larger in the future. Otherwise, if he decides every little thing by himself, he will only tire himself out.

Now that the real estate crisis is about to come, he also needs to take back power because things are different now.

"Okay, I will notify others as well." Zheng Zhijie said again.

Yang Wendong took another sip of tea and continued, "In addition, starting this year, I will conduct a comprehensive investigation of the economically developed town centers in Hong Kong Island and Kowloon, including large properties, large plots of land or other high-quality properties; I want to check their area, information about the bosses behind them, and their operating conditions.

I also need detailed information about large British and Chinese companies in Hong Kong. I don’t need to include any personal information. What I want is business information, debt information, property information, etc. The more accurate the better.”

Zheng Zhijie's heart moved. He naturally understood that this was prepared for future bargain hunting, so he said, "Okay, I will find a way to get this information from the Commerce Bureau and the Lands Department."

"These data are considered government secrets, right? Would it be against the rules to ask the government for them?" Yang Wendong asked.

Although Hong Kong is now full of darkness, that is the bottom layer. At a higher level, everyone still abides by the rules, especially the Chinese community, who cannot let others find any handle on them. Even if they have to resort to some tricks, they will try their best to take the middle grey route and leave no handle.

As a time traveler, Yang Wendong is even more cautious because he needs to consider the future and his reputation for "justice". Unless he has to, if something can be resolved legally, it is better to do it legally, even if it costs a little more money.

Zheng Zhijie replied: "If you just want some superficial information, it won't be illegal. Some journalists in Hong Kong can investigate if they have some connections.
It's just that you can't take the information away, you can only view it. I can also send a few more people to watch it. At most, they can watch it more times and remember it by memory. This way, it won't violate the rules."

"That's fine. Just remember some important information. I don't really need all the information. Just investigate the core areas such as Central and Causeway Bay first." Yang Wendong nodded and said, "There are quite a lot of reporters in Oriental Daily. Those who are engaged in literature have strong memories."

"That's a good idea." Zheng Zhijie said with a smile, "Then I'll discuss it with Qin Sheng right away."

Yang Wendong nodded and said, "Okay, you do need his cooperation in this matter. Reporters are better at investigating business information in Hong Kong. It just so happens that he has also prepared some business rankings."

"Rankings?" Zheng Zhijie also understood and said, "Once this kind of thing is exposed, it will probably offend a lot of people, right?"

"Yes, I know, so I'm not going to do it for now." Yang Wendong paused and said, "Those related to the business world will be launched slowly, and the first step will be to launch those related to entertainment. That will be a lot, and we'll have opportunities in the future and test them step by step."

In 61, Qin Zhiye discussed it with Yang Wendong and thought the idea was feasible, but later he consulted some wealthy people and found that most of them disagreed, so the matter came to nothing.

Even though Yang Wendong has now become one of the richest people in Hong Kong, there is no need to offend so many people just for a little newspaper sales. It is totally not cost-effective.

Now, with the gradual development of the economy, movie box office has hit new highs, and TVB is about to be launched. It would be appropriate to first make a list of entertainment rankings, such as celebrities, music, movie box office, TV drama ratings, variety shows, etc.

This will make it easier for ordinary citizens to quickly find things that can entertain themselves. Secondly, for celebrities, this can also be considered exposure, and they will welcome this kind of exposure.

As for the wealthy group, we will test it step by step later, for example, starting with listed companies. This information is also public.

PS: Ask for monthly ticket

(End of this chapter)