Chapter 494 1968, the bull market begins

Helping Hu Yingxiang is just an interest, but his investment is actually not as good as that of Li Jiacheng and others;

However, his interest in mainland infrastructure may be of some help to his future self. Given the size of the mainland's infrastructure pie, even if Yang Wendong's assets were to increase a hundredfold, he could only take up a small portion of it. Naturally, he could bring other people to participate and share some political risks.

And people like Hu Yingxiang should also obtain higher wealth than the other four major families in the future. Perhaps, in the future, when there are some directions that they don't like or are not suitable for investment, they can also direct him to do it;
Of course, he must have enough shares, and mutual benefit and win-win are the kingly way. Otherwise, he will not do charity to help others get rich.

Hong Kong, Victoria Peak:

The Yang family arrived in front of a villa in several luxury Mercedes-Benz bulletproof cars;
After everyone got off the car, Su Yiyi looked around and said, "This area is much larger than our current house."

“Yes, of course the houses in Victoria Peak are much larger, otherwise how could it become the gathering place for people in Hong Kong’s political and business center?” Yang Wendong said with a smile.

After the real estate crisis broke out, he bought two normal villas in Victoria Peak in August. However, he did not want to live in second-hand houses, so he bought a piece of land in Victoria Peak directly from the Hong Kong government and built his own house.
The Hong Kong government generally rarely approves new land in the Victoria Peak area, but in special circumstances, it will not care;

Su Yiyi asked again: "When will this house be built?"

Yang Wendong smiled and said, "It was probably in the beginning of 69. Our house is not a commercial building, so we still have to take our time to do the work. Later, all kinds of furniture and decoration materials also need to be left alone for a while."

Although many of the household items he purchased were from the highest-end brands, in this era, people are not very environmentally conscious, and he is also worried that there will be carcinogens such as formaldehyde after the decoration is completed, especially since there are infants and young children at home, so he would rather wait a little longer, as there is no rush anyway.

"That's just over a year." Su Yiyi said after calculating.

Soon it was mid-December, and a mainland leader finally spoke out: Hong Kong would remain as it was;

As soon as the news came out, all the suspicion and disbelief of Hong Kong people about the future finally disappeared. So far, stock prices and housing prices have finally had a chance to breathe and gradually recover.
Zheng Zhijie and Fang Xianming came to Yang Wendong's office together to report their gains during this period.

"Mr. Yang, this is the detailed information of all the properties currently owned by Changxing Real Estate." Zheng Zhijie handed over a thick folder and said, "It also marks the investment or acquisition year of each property, as well as the early cost;
The latter part was acquired this year, involving 16 buildings, 417 street-front shops, 722 office properties of varying sizes, and 131 plots of land, with a total area of more than 800 million square feet.

"800 million? I remember that the properties held by Swire Properties are more than 1000, right?" Yang Wendong asked after opening the folder.

Zheng Zhijie said: "Yes, Hong Kong Land has many large buildings. One building is 300,000 to 500,000 square feet. There are more than a dozen such buildings. In addition, outside of Central, Hong Kong Island, there are also large tracts of land, buildings, warehouses, etc. These are also the accumulation of Hong Kong Land over the past century. We are still a little short of them in the past six months."

Yang Wendong smiled and said, "It's okay. We are close. Besides, this may be a two-way approach. Although the economic crisis may be over, I will still continue to acquire some properties."

Starting next year, Hong Kong real estate will start to rise and a bull market will begin. This will allow many British companies that have not been successful in developing their traditional businesses to enter the real estate market, such as Swire, HK Electric, Wheelock and so on.

However, these British investors do not know much about real estate and do not dare to operate in a fully leveraged model like Chinese investors. Therefore, they will conservatively adopt the model of selling land to raise funds and then develop another piece of land. Although this does not involve much risk, the profit margin will naturally plummet.

The wealthy people who took over those lands were some of the four major families in the future, or some other real estate newcomers. These companies made a lot of money by buying at the bottom in 67, and then got the best land from British companies at a low price. After developing the land, they made a lot of money, which also provided enough funds for their future rise.

Zheng Zhijie smiled and said, "That would be even better, but now we also have a lot of land, or very old buildings that are not suitable for renting, so should we develop them?"

Changxing Real Estate is now divided into three core businesses: development, property ownership and infrastructure.

Starting from 63, Yang Wendong ordered the gradual suspension of the development of this area, and it has been almost 5 years until today. It is too long, but it has also happened to avoid the most severe economic crisis of this round.

Yang Wendong said: "It can be developed, as long as it is not the core location of Hong Kong Island or Kowloon. Other places that are suitable for residential development should be developed into residential areas, and those suitable for office buildings should be developed into office buildings. Industrial land can also be used to build industrial buildings. Don't worry. The last wave of low prices fell to such a low level, and it will definitely be strong in the next few years."

Although he wants to surpass Swire Properties in terms of land area, which is a small goal, there is no need to keep properties in average locations for a long time. During the previous economic crisis, time was short and selectivity was limited, so he acquired almost all of them. But later, time was long and he also needed to develop these lands and then purchase properties in good locations to hold for a long time. Only in this way can he truly catch up with Swire Properties.

"Okay, I'll start preparing now." Zheng Zhijie said happily.

Although it is relatively easy and simple to collect rent from a large number of properties, this does not reflect the value of professional managers. Anyone who comes will not do a bad job. Development, on the other hand, requires a lot of technology. How can a community maximize profits, increase the capital return rate, shorten the development time, etc.? The strength of a real estate company depends on its arrangements in this regard.

Moreover, the start of a large number of development projects can also bring a lot of liquidity to the company, which can better demonstrate the strength of Changxing Real Estate Company to the society. Otherwise, many people have forgotten about it over the years.

"Okay, let me know when you've decided which communities to develop," Yang Wendong nodded, then looked at Fang Xianming and said, "How are the stocks of the companies I asked you to acquire?"

Fang Xianming said: “Mr. Yang, Jardine Matheson Group has three companies. I currently hold 3.5% of Jardine Matheson, 4.6% of Hong Kong Land, and 4.2% of Wharf Holdings.

As for Dairy Farm International, I currently hold a total of 9.05%. Dairy Farm's shares are relatively scattered and their market value is not high, so they are easier to acquire. I have 7.3% of Qingzhou Yingni's shares.

I have invested in other British companies with Qi Dezun, mainly Junyi Cangji and Anderson Industries. "

"This ratio is not bad." Yang Wendong said, "But the stock price will start to rise now, and the difficulty of acquisition will increase later. You should also be prepared."

There are so many large companies, and many of their shares are still held by themselves or their board members. Therefore, even if an economic crisis occurs, it is difficult to acquire enough stocks in a short period of time. It is enough to take advantage of the opportunity to acquire a part of them.

Fang Xianming said: "I know this. I have asked the trader to reduce the investment by half. Although it is a little more difficult, we have a long time to acquire it slowly and we can get enough shares."

"Well said, there is still plenty of time in the future." Yang Wendong added: "But our financial resources are limited, and it is impossible to launch mergers and acquisitions of these companies at the same time;

So your priority targets are still Wharf Holdings and Dairy Farm International, which are relatively easier to deal with.”

In the original history, Li Jiacheng and Pao Yugang attacked Wharf Holdings successively, and Jardine Matheson fought back. After the final failure, Li Jiacheng cut off his hand to save his life. He might have been a little resentful, but nothing happened afterwards.
But in the late 80s, Li Jiacheng and several major Chinese financial groups jointly besieged Hutchison Whampoa, and Jardine Matheson fought desperately to protect its protégé.

Even if I want to acquire all the high-quality assets of the Jardine Matheson Group, I cannot do it at the same time, so I have to pick the softest ones and take a bite first before I think about the rest.

Fang Xianming agreed, "Okay, the market value of Wharf Holdings and Dairy Farm is indeed much lower, but the tradable shares are also limited. If we continue with the acquisition, we may be discovered."

“Then let’s try to acquire enough to secure a safe amount first and we’ll talk about it later.” Yang Wendong said after thinking for a while.

This acquisition is not something you can accomplish just by having money, especially a hostile acquisition. You must acquire enough shares without the other party knowing. Only in this way can you have a foundation for competing after it is made public. Otherwise, you will have no chance at all.

In the past, Wharf Holdings had raised additional shares several times in order to develop real estate 68 years later, diluting the shares controlled by Jardine Matheson Group. If it were the same in this life, he could increase his own shares when the shares were raised.

If the other party does not raise funds, there is really no good solution in the short term. However, the operations of British companies are very poor. If they do not raise funds for expansion, their operating results will definitely be even more terrible.

Fang Xianming replied: "Okay, I understand."

Yang Wendong said: "The economy will also begin to recover, and now the confidence of the people has been restored. The next few years will be the golden period of our development."

The reason why so much land was bought at the bottom is not to hoard it, but at least some of it needs to be developed. As for stocks, the ultimate goal is to absorb some of the resources of old companies.

The time soon came to July 1968.

On the first day of trading, Hong Kong stocks saw a significant increase. Many entrepreneurs and factory owners who had left but had some fame began to return and attracted attention from some news media.

On January 1, the Hong Kong government held its first auction of the year, with the average transaction price being 8% of the reserve price, which gave enough confidence to all the real estate developers and reporters present.

Whether it is real estate or the stock market, the bull market is about to begin.

PS: Ask for monthly ticket
(End of this chapter)

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