Chapter 483 Shipping Market Booms

"In this case, the bigger Qi Dezun's business is now, the more he will help us in the future," Zheng Zhijie said with a smile.

Yang Wendong nodded: “Yes, that’s why I funded him and let him gather a large number of other British companies as British capital, so that it will be easier for us to swallow up these assets in the future;

If Qi Dezun really has the ability to successfully run these companies, that’s fine, just treat it as a normal investment on my part.”

History has changed too much. If Qi Dezun is lucky enough to avoid the crisis of collapse in this life, then his investment income will be returned dozens of times;

However, the possibility is not high. Qi Dezun is too arrogant. His only goal is to become famous. He has taken on crazy debts in order to expand the scale, just like the Wheelock Family, which sold most of the company's shares to the Zhang Yuliang family in order to expand the scale.

Human nature cannot be changed, and neither can capital’s greed for profit and power.

"Qi Dezun is indeed very capable among the British foreigners. He is the only one among the British investors who dares to buy at the bottom now." Zheng Zhijie added: "By the way, Mr. Yang, Li Jiacheng and Li Zhaoji also came to me one after another and wanted our group to invest in them, but they were unwilling to give up their voting rights."

"I guess he has discovered opportunities in the real estate market, but his funds are limited, so he had to come to me," said Yang Wendong.

Li Jiacheng and Li Zhaoji are also frantically buying bottoms this year, but they did not rise until the late 70s and early 80s, which is also because their existing asset scale is not enough;
After seeing golden opportunities everywhere, they naturally want to obtain more funds, but in this era, bank lending for real estate and other items has dropped to freezing point. They cannot raise funds, so their acquisition capabilities will naturally decline.

"Yes, almost." Zheng Zhijie replied.

Yang Wendong said: "If they are willing to give us more shares, then yes, but if they just want to lend us money, then no, let them decide for themselves."

Compared with the earning power of the four major families in the future, even the future appreciation of today's real estate trough cannot compare, so he is still happy to buy more stocks, but if it is to borrow money, that is definitely not possible.

Funds are generally provided to the investee for strategic purposes. For example, the additional low-interest loans to Formosa Plastics were provided to enable Wang Yung-ching to develop rapidly and be able to provide himself with the plastic raw materials needed by Changxing Industrial, so that his Changxing Industrial could earn higher profits and market.
But although investing in real estate can bring huge profits, it is just huge profits. You just need to invest on your own. It is impossible to lend money to others to invest in real estate and only earn interest on it.

"Okay, I'll let them know." Zheng Zhijie said, "But I don't think it's likely that they'll agree. We already have 20% of their shares."

"That doesn't matter." Yang Wendong said indifferently.

Today, he no longer cares whether he holds a lot of shares in the future four major families, because he can still acquire them after they go public.

12th:
"Mr. Yang, Ms. Zheng is here." The phone on the desk rang.

Yang Wendong pressed the button and said, "Let her in."

After a while, Zheng Yuhua from Changxing Shipping walked in with a happy face.

Yang Wendong asked with a smile: "So happy? The freight rates have gone up like crazy in the past month or so, right?"

"Yes." Zheng Yuhua replied: "Last month, the Middle East crisis broke out and the Suez Canal was blocked due to the ZZ. More than half of the world's ships had to take a detour, especially oil tankers, which accounted for more than 70%;
The freight rates have almost doubled compared to two months ago, and our various oil tankers are gradually expiring and no longer being renewed, so we are now preparing to operate them ourselves.”

"Okay." Yang Wendong nodded and said, "Now is the time to pick up the gold with a dustpan. Don't waste any time."

In this era, Asia's economy has just taken off, and its share in the world is not high. The main economies are still Europe and the United States. To go to these two places from Asia, except for the western United States, all other routes have to go through the Suez Canal;

Not to mention oil. Oil from the Middle East must go through the Suez Canal.

In the past few years, the annual growth rate of global trade has far exceeded the speed of shipbuilding. In addition, the Suez Canal was suspended, and ships had to go around the Cape of Good Hope. The efficiency of a single ship was greatly reduced, further exacerbating the shortage of ships. Naturally, freight rates increased significantly.

Among them, the biggest increase is in oil tankers, because many daily necessities and industrial products originally relied on Asia for production in the United States and the West. If the price rises sharply, they will use less, or they can also produce some locally if they still have manufacturing capabilities. But there is no oil.
Zheng Yuhua said: "I understand. Now, our second-hand ships have been favored by European and American companies, and the prices they offer are very high. I calculated that in a year, we can earn twice the price we paid for the ship."

Yang Wendong asked: "Is there any problem with safety?"

Zheng Yuhua replied: "As long as we do a good job of maintenance, safety preparations and pay attention to the weather, there will be no big problem. We didn't leave before not because we couldn't leave, but because if we went to Europe and the United States, all kinds of maintenance would need to be done in Europe and the United States, which is very expensive. The cost will be even higher after the ship is stopped, which is not economically cost-effective. In addition, some ports in Europe and the United States also have laws restricting old ships.

Now that profits are high, all of this is no longer a problem, and European and American ports have also begun to lower restrictions.”

"That's good." Yang Wendong said with a smile.

I worked so hard to buy ships just for today. This global shipping crisis can earn me more profits than the Hong Kong real estate crisis, and I can continue to earn a lot of cash in the next few years, which will also facilitate my investment in Hong Kong and even Southeast Asia. Zheng Yuhua said, "Mr. Yang, there is one more thing. Many European and American shipping companies want to ask us to buy ships at a high price, especially tankers. They offer 12 million US dollars for a 3000-ton tanker?"

"What kind of dream are you having? Ignore them. A new ship costs 5000 million dollars now, right?" Yang Wendong shook his head and said, "We just need to operate the business with peace of mind. If we are really short of money, the price of ships is so high now, and we can still borrow money by mortgaging them."

High-quality assets are always more valuable than cash because they can be mortgaged in the modern financial society, especially in assets that are gradually appreciating in value, such as real estate. If house prices rise high enough after a few years, even a discounted loan will be more valuable than the full payment a few years ago.

Ships are indeed not as valuable as real estate, but there will be a global shortage of ships in the next eight years. Even Jardine Matheson in the 8s was thinking of exchanging Central Buildings for oil tankers. It was just that the money was too much, so even if I wanted to sell it, it would not be now.

"I understand. I am not short of cash at the moment." Zheng Yuhua added, "If the situation in the Middle East doesn't stop, I estimate that I can pay off all my previous loans in a year."

"Okay, repay the loan from Japan first. You have been in too much debt in recent years." Yang Wendong added, "But you also know the situation in Hong Kong during this period. If I don't have enough funds, I may need to mortgage some of your ships."

Today, the shipping market is booming, while the Hong Kong real estate market is sluggish. One can desperately earn cash, while the other needs cash to buy properties or stocks of other British companies. They are a perfect match, but the timelines overlap too much. The shipping market has not yet received enough cash, but it can also be mortgaged.

"No problem." Zheng Yuhua replied.

Kwai Chung:

Yang Wendong, Zheng Zhijie and more than a dozen employees of Changxing Group came to the beach. At this moment, a large number of construction machinery were working.

Zheng Zhijie introduced: "Mr. Yang, this is the location of our future port's No. 1 pier. The workers are currently building the foundation."

Yang Wendong asked: "Will Hong Kong construction companies build this kind of dock?"

Zheng Zhijie said: "I don't have experience in this area, but according to the construction of Singapore and Brunei terminals, as well as overseas information, the difference between container terminals and traditional terminals is that they have a large number of mechanical lifting equipment, and the berths are different, but everything else is the same;

I have also invited a professional dock construction company from the United States to come here to guide the work, and other places are handed over to the seaport engineering department. "

"Harbor project? Is it the one Qi Dezun mentioned last time?" Yang Wendong asked.

Zheng Zhijie said: "Yes, this company specializes in the construction of docks and bridges. In addition, although our Hung Hom Cross-Harbour Tunnel will be contracted to a British company, a large number of workers will still be responsible for the construction company here in Hong Kong."

"Okay, this aspect can only be left to professionals." Yang Wendong nodded and said, "But during their construction process, we also need to learn more, at least to ensure maintenance capabilities."

"Don't worry, Mr. Yang, we know what we are doing." Zheng Zhijie said with a smile.

Yang Wendong asked again: "When will this dock be completed?"

Zheng Zhijie said: "It is estimated to take two years."

"So we will be able to operate in the second half of 1969?" Yang Wendong said, "Give me a plan for the future progress, and I will arrange for people to come and check regularly."

He didn't understand this kind of highly professional construction, so he just needed to watch the progress. As for internal quality and other issues, he could leave them to third-party professionals outside the company. This is what Changxing Group has always done. Many things require more than just internal inspections.

"Okay, I'll give it to you in the next two days." Zheng Zhijie said.

Yang Wendong asked: "When will the undersea tunnel be open to traffic?"

Zheng Zhijie said: "The tunnel will take a little longer. There is no way to increase manpower, so we can only do it step by step. It is estimated to take three years and will be completed by the middle of 1970."

"Okay, then I'll wait for this day to come soon." Yang Wendong added: "Hong Kong's manufacturing industry and economy are looking forward to these two large infrastructure projects."

Infrastructure is the core of a city’s economic operation. The reason why the mainland developed so rapidly in the past was also due to the ability of the “infrastructure maniac”.

The city of Hong Kong does not have many core infrastructures, and tunnels and docks are definitely the top priorities.

PS: Please give me a monthly ticket
(End of this chapter)

previouscatalognext