Chapter 477 Preparation before Buying at the Bottom

Chapter 477 Preparation before Buying at the Bottom

Chapter 477 Preparation before Buying at the Bottom
"It's not difficult to develop these two industries, but if you want to sell well, you still need a container terminal." Yang Wendong said: "Otherwise, the transportation cost of sea transportation is too high, even in Southeast Asia, it will be difficult to get through."

Containers are very helpful for controlling transportation costs, not only at the sea level, but also at the land level. With containers, things are packed in factories and unloaded all the way to the destination.

The current traditional transportation mode is to constantly change transportation tools and load and unload along the way. The appearance also needs to be protected and even waterproof, rainproof, sun-proof, scratch-proof, impact-proof, deformable, etc. In order to ensure these, very high costs are incurred along the way, and the larger the item, the more difficult it is to protect.

Therefore, in this era, there are many home appliance industries in Europe and the United States, while home appliances are extremely expensive in Southeast Asia. Among the core home appliances, only televisions are smaller and have higher unit prices that can afford such freight costs. Other large home appliances are almost impossible. This is why refrigerators before the 80s were very small. It is easy to make them bigger, but the transportation cost is too high.

Wang Fengzhi also knew some big things at the group level, so she said, "Mr. Yang, since we have proposed the container terminal plan, the Hong Kong government should also promote it."

"I hope so." Yang Wendong nodded and said, "But there is no rush for now. Even if refrigerators and washing machines are manufactured in the short term, it will not be so easy to sell them to Europe and the United States. It is not easy to build a brand for such large appliances."

Even Japanese home appliances took more than a decade to gain a foothold in the United States.
"Yes." Wang Fengzhi continued, "Carrefour's total turnover this year is 1.34 million Hong Kong dollars, which includes data from 52 stores in Hong Kong, and 13 stores in Taiwan and Singapore, with a net profit of 700 million Hong Kong dollars;
The Hong Kong economy is not very good this year, and many people have cut back on spending. In addition, Jardine Matheson is also waging a price war with us, so the data is not very good. ”

“The people from Jardine Matheson are really unwilling to give up.” Yang Wendong smiled.

In the early years, when my own supermarket achieved success, Jardines was the first to follow suit and compete with me. In the following years, the two sides occasionally coexisted peacefully and occasionally competed, but it was also normal business behavior and everyone abided by the rules.

Wang Fengzhi said: "Many of Jardine Matheson's supermarkets and shops belong to Landmark, which has a huge advantage. Although our shops are similar, we also invested huge amounts of money to buy them in the early days, and some are rented."

"It's okay. Since they want to fight, I'll let them have a good fight this year." Yang Wendong said, "We'll have a meeting with Zhou Haoran after the New Year. This year I'm going to play a big game with Yihe."

The so-called counter-cyclical price war is definitely not the first of its kind by Samsung. Many large companies have taken advantage of economic crises to squeeze out their competitors. Today, Yang Wendong is also preparing to do the same and force Jardines to withdraw from the supermarket industry.

As for the entertainment industry, he actually does not want Hong Kong to complete the monopoly, because this is not good for its own cultural industry. However, for supermarkets or other real economies, they should first complete the monopoly of Hong Kong, use the huge market to increase purchasing power and then lower prices. This will not only guarantee the interests of Hong Kong consumers, but also provide Carrefour with a foundation for entering the Southeast Asian market.

"Okay, if we can monopolize the supermarkets in Hong Kong, it will be easy to double our turnover." Wang Fengzhi said with a smile.

"Yes." Yang Wendong nodded and asked, "There are still Changxing Real Estate and Changxing Shipping left, right?"

Wang Fengzhi said: "Yes, Changxing Real Estate's main investment last year was in Singapore, and it was all investment. In addition, there are not many projects in Hong Kong, so we only collected some rent throughout the year, so the annual turnover was only 4000 million, and the net profit was calculated to be 0 by balancing the accounts;

Changxing Shipping's total turnover last year was HK$2.37 million, including self-operated and leased ships, and its net profit was HK$6800 million. However, this figure is, to a certain extent, large data within the legal scope, which is convenient for this year's ship purchase plan. However, Mr. Yang, the risk of buying another ship is really great. "

"Okay, as long as it's legal." Yang Wendong nodded and said, "Once we buy the ship this year, we may not consider it for the next few years."

When the Middle East crisis breaks out in the middle of this year, you won’t have to think about buying a ship, because everyone will drive up the prices like crazy at that time, and even an old ship in your hands can be sold for three times the price of a new one. This is also an opportunity for shipowners in the shipping crisis. In history, Pao Yu-kang, Tung Chao-yen, Zhao Cong-yen and others all successfully became global shipping kings with the help of these eight years.

"Okay." Wang Fengzhi said.

Yang Wendong continued, "That's it for this year's financial report. Just prepare for the New Year. There will be a lot of things to do at the beginning of next year."

The Spring Festival of 1967 was a dull one, not only for the Yang family but for the whole of Hong Kong. The economic blow made life difficult for many ordinary people. House prices plummeted, and many factories closed down, causing many people to be unable to repay their mortgages.

After the Spring Festival, on February 2, Yang Wendong met with Ho Sin Hang of Hang Seng Bank in the presidential suite of the Four Seasons Hotel.

"Mr. He, long time no see." Yang Wendong greeted with a smile.

He Shanheng also smiled and said, "Yes, Mr. Yang has been very busy recently. His investment in Singapore is booming."

"Hong Kong is not suitable for investment at the moment. The laws in Taiwan do not allow excessive foreign investment, so I can only go to Singapore," Yang Wendong explained.

He Shanheng said: "Yes, Singapore is the most suitable place for us to invest. In recent months, many of my clients have immigrated to Singapore or Australia and Canada. Fortunately, I listened to Mr. Yang's advice and established branches in Singapore and the Chinese communities in Canada and Australia, so they did not withdraw their bank deposits."

"A lot of people are leaving now. If we can keep their deposits, it will be a good thing for Hang Seng." Yang Wendong nodded and said.

"Yes." He Shanheng asked again: "Mr. Yang, what is the matter with you asking me out today?"

Yang Wendong said, "There is one thing I would like to entrust to Hang Seng Bank."

"Please go ahead." Ho Sin Hang said with a smile, "Mr. Yang is also a major shareholder of Hang Seng, so it is only natural for him to serve the major shareholder."

Yang Wendong said: "The real estate market has plummeted recently. Many people cannot repay their loans or want to leave Hong Kong. There should be many such customers in Hang Seng Bank. I hope to get the property information and data."

Although it is not yet the second half of 67, when housing prices were the lowest, just like when I sold a large number of properties before, it will take a long time if I want to acquire a large number of properties now, and I must prepare early.

As long as the scale involved is large enough, it will be impossible to cash out at the peak, nor is it possible to buy at the bottom. As long as it is close, you should prepare to start, and now he just wants to collect information.

Ho Sin Hang is a smart man. He understood what Yang Wendong meant as soon as he heard it, so he asked, "Mr. Yang, are you planning to buy at the bottom?" "Not really. I just need some information at the moment." Yang Wendong said, "And it's not just Hang Seng Bank. If there are similar situations in other banks, I can also consider it, provided that I can get the information first."

There are a lot of properties for sale in Hong Kong, so he won't buy blindly. Instead, he gets information first and then buys at the bottom according to demand.

He Shanheng asked again: "Mr. Yang, are these data confidential to the bank?"

"Don't worry, I don't need the specific information of the owner. I just need information about properties with heavy debts. I don't need to know how much they owe, I just need to know the proportion or whether it's very serious." Yang Wendong said, "This will make it easier for me to choose the right target."

There are too many suitable acquisition targets. Some owners will actively release the news of selling, but some may not. In this case, if you want to buy at the bottom, you must quickly find a target with a high success rate. Generally speaking, the heavier the debt, the higher the success rate.

However, it is difficult for outsiders to know the debt information, and only the bank’s internal staff know it.

"Okay, no problem on my side." He Shanheng nodded and said, "As for other banks, I'll ask the Chinese banks, but it shouldn't be a problem. If Mr. Yang can buy it, it will be less risky for these banks, but the specific information will definitely not be disclosed."

"Okay, thank you very much." Yang Wendong said.

Although I have some departments under my company that focus on real estate, they are no match for the bank's internal staff, who are the most efficient and can provide me with some information quickly.

He Shanheng added: "Mr. Yang only wants commercial real estate this time, right? Will you consider industrial and residential real estate?"

Yang Wendong replied: "Industrial real estate can be considered, but residential real estate will not be considered unless it is in large quantities and located together."

Even for simple rental management, a location that is too cluttered will affect management costs. Although you can make money by acquiring some simple residences, acquiring commercial and industrial properties may make more money and is easier to manage, so the latter will naturally be given priority.

"OK, I understand." He Shanheng agreed readily.

On the third day after meeting with Ho Sin Hang, Yang Wendong received the first batch of information, which included more than 60 properties, most of which were located in Hong Kong Island.

Afterwards, he arranged for his assistant to call Zheng Zhijie and Fang Xianming, and then handed the information to him: "Take a look."

After Zheng Zhijie looked at it for a while, he said, "This information is very valuable to us. Should we try to acquire it now?"

"No rush for now." Yang Wendong shook his head and said, "First, we can find out the information of the people behind these properties. Hang Seng Bank has not given us the information of the owners due to professional ethics, so we can check it ourselves.

After checking, we will arrange people to keep an eye on it. If they are urgently selling, we will contact them. If there is no movement, we will wait."

There were only four months left before housing prices were halved. During these four months, he had to look for the easiest targets after the crisis, because the crisis ended at the end of 4. Although housing prices were not very high at that time, many properties would not be sold.

The real estate industry is all about confidence. With confidence, smart people will not sell their properties even if house prices are low at the moment. Therefore, his bottom-fishing period is only half a year.

"Okay." Zheng Zhijie agreed.

Yang Wendong asked again: "Has the Hong Kong government made any progress regarding the container terminal?"

Zheng Zhijie replied: "It has not been officially announced yet, but I heard that British companies such as Jardine Matheson, Swire, Wheelock, and Whampoa have all visited the Governor's House. I wonder if they discussed this matter."

"It's really inefficient." Yang Wendong nodded and said, "Then just wait patiently. I'll ask again when I have a chance in a few months."

The efficiency of the British Hong Kong government was very low in many things, such as the construction of reservoirs, purchase of water from the mainland, undersea tunnels, etc. in the early years. On the one hand, they felt that Hong Kong needed them, but on the other hand, they felt that they might lose money after they were built, so they procrastinated, and when they were really confirmed to be needed and then made emergency investments, it was too late.

By promoting the container terminal ahead of time, in addition to being able to obtain terminal revenue, it can indeed help Hong Kong's manufacturing industry and even the entire economy. However, whether it can succeed still depends on the Hong Kong government. If not, it can only wait until the early 70s to compete with British capital. At that time, the mainland will have good relations with Western countries and restore its status as a permanent member of the United Nations. Then Chinese capital in Hong Kong can officially begin to rise.

Then Yang Wendong looked at Fang Xianming and said, "Old Fang, you should also prepare funds and financial institutions. In the next few months, I will invest heavily in the Hong Kong stock market, especially the shareholder information of several major British-funded foreign companies. I also need to investigate it clearly."

The economic crisis has affected more than just the real estate market. The Hong Kong stock market is also experiencing an avalanche. Jardine Matheson, Hong Kong Land, Wharf Holdings, HK Electric, etc. are all top-quality assets. As long as we succeed in this wave of bottom-fishing, we can wait until the right time to completely launch the "China-UK War".

"No problem. I already have a lot of information on British listed companies. I will verify it in detail later." Fang Xianming agreed immediately.

But he was also very shocked. His boss wanted to check the information of the British foreign banks. Was he planning to take action on these banks? Or was he just investing?
The latter is unlikely because in terms of pure investment, the management capabilities of these British-owned companies are very average. It is only because of the years of hard work of their ancestors that they have made so much money that their scale is still large.

But if they want to take action, it will be difficult to get past the Hong Kong government, right? With the scale and strength of the Changxing Group today, it is actually not afraid of the British financial groups in Hong Kong. Even HSBC, if it does not have the official "quasi-central bank" background, is inferior to the Changxing Group.

If we just want to deal with them, the biggest problem is not the economy, but the government. After all, the British Hong Kong government is still in power. With the scale of the Changxing Group, it is still easy to acquire a British company in good faith. But once it takes action against a large British company, it is uncertain whether the Hong Kong government will intervene.

Then he glanced at Zheng Zhijie next to him. It was obvious that the two of them were thinking about similar issues, but they didn't dare to ask the boss directly about this kind of issue.
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(End of this chapter)