Chapter 547 The Establishment of the Far East Exchange

Chapter 547 The Establishment of the Far East Exchange

Chapter 547 The Establishment of the Far East Exchange

Yang Wendong said: "Ask them to come over, and ask Zhou Haoran from Watsons to come over as well, and we can discuss it together."

"Yes." Fang Xianming agreed and went out to make a phone call.

In the afternoon, the three of them came to Yang Wendong's office.

"Mr. Yang." The two brothers of the Wu family greeted him quickly: "Mr. Zhou, hello."

The Wu brothers used to sit together with Yang Wendong many times to discuss business. At that time, Yang Wendong's assets far exceeded theirs, but compared to now, the gap between them is even greater.

Together with the heads of subsidiaries of Changxing Group, their status in Hong Kong is very high, far exceeding that of ordinary Hong Kong companies, such as Maxim's Group.

"Everyone, please sit down." After Yang Wendong asked everyone to sit down, he said, "Wu Sheng, I called you brothers here today for this reason..."

Listening to the introductions of Yang Wendong and Fang Xianming, the Wu brothers also understood the purpose of coming here today. After listening, Wu Zhande asked: "Mr. Yang, we have considered doing the fresh milk business, but later gave up because the cost of raising cattle alone is too high;

Moreover, Dairy Farm International has basically occupied the entire market. If we want to compete with them, we will inevitably suffer losses for a long time in the early stage. If we don’t defeat them in the future, it will be difficult to make a profit.”

"I know this principle. When you considered raising cattle before, where did you raise them?" Yang Wendong asked again.

In fact, many businesses, especially large-scale, comprehensive service industries, do not have deep moats. Anyone with money can enter.
But the old giants are basically not worried, because for new players, the sunk costs are too high, and they need to invest a lot of money to compete with the old companies, which is completely uneconomical;
Just like food delivery, group buying and taxi-hailing in the Internet industry in the past, anyone can get involved and operate with light assets. However, in an era where there are already giants, others will have to burn money if they enter, and the old players will inevitably have to keep up. If they are really willing to do so, they may be able to occupy a certain market share, but they will definitely lose money. This is why Meituan and Didi were able to monopolize the market in the end. Even Douyin can only get a small share by relying on its huge traffic.

Wu Chan-tak replied: "I have considered Yuen Long. There is still a lot of original land there, which can be converted, but the cost is still relatively high, and there are no perfect roads, so the transportation cost is also very high."

"Yuen Long?" Yang Wendong glanced at the map of Hong Kong hanging on the wall, and then asked Zhou Haoran: "Old Zhou, can we raise cattle in Shatin? Isn't there a chicken farm over there?"

Zhou Haoran thought for a moment and replied: "I need to discuss this with Shatin government officials, and we also need to consider the size of the cattle farm. If it is concentrated breeding, the land required is not much, but this model will inevitably cause heavy pollution;
If the fish are raised in a free-range environment, it would be difficult to find such a large piece of vacant land in Sha Tin. In addition, water resources are not abundant in Sha Tin either.”

"What kind of breeding model does Dairy Farm International have now?" Yang Wendong looked at Wu Zhan De and asked.

Wu Chan-tak replied: "Dairy Dairy used to operate a free-range farming model, but as demand for milk increased, there were more cows and the local grassland was insufficient, so we switched to imported grass feed. However, the area was still quite large, so it was a semi-centralized farming model."

Yang Wendong thought for a moment and said, "Then we can adopt the free-range model, even in Yuen Long. The area is larger, and the fodder can be imported. We can build a road to the sea and a small port in Tin Shui Wai.
As for water, we can also dig a small artificial lake in Yuen Long to store water in the summer. Hong Kong is not actually short of water, it’s just that we can’t keep it. We can just dig a lake.”

Although the land price in Shatin is higher now, if you can’t get a large area, you might as well get a large piece of land in Yuen Long.

Historically, Yuen Long was proposed for development by the Hong Kong government in the 70s, but the effect was not very good in the short term. Later, in the 80s, the population of Hong Kong increased and capital from all sides flowed in, eventually forming a town with a medium economy.

Among the 18 districts in Hong Kong, Changxing Group has already focused its investment on 6 districts. It makes little sense to continue investing in these 6 districts unless there is a supply chain demand. Otherwise, it is better to invest in other areas, which will not only be convenient for itself, but also drive the development of various towns.

Zheng Zhijie said: "Yuen Long has no economic value. If we raise cattle there, the Hong Kong government should approve it. The land will definitely be agricultural land."

"It doesn't matter. Let's take the land first. The attributes are not important." Yang Wendong said nonchalantly.

First, he has the ownership, so no matter what the attributes of the land are, he can't get away with it. Now he has a lot of land with industrial attributes, public land attributes, agricultural attributes, etc. In the short term, he can only do his own thing;
But in the future, as the economy develops, industries will move to the mainland or other places and then be converted into commercial land. Even if you follow the rules and make up the difference when the land price is low, and then wait for housing prices to skyrocket in a few years, you will still make a lot of profit.

"Mr. Yang, Mr. Zhou," Wu Chan-tak said hesitantly, "Our Maxim's Group doesn't have the financial resources to acquire such a large piece of land. Raising cattle will also be a very high investment, and we will need to hire a lot of people to distribute the milk."

In front of a group of bigwigs, he, the founder of Maxim's, felt that his words did not count, but there was nothing he could do. The status of Changxing Group in Hong Kong was far different from that of Maxim's. Yang Wendong smiled and said, "It doesn't matter. You just need to do business. I will let Changxing Real Estate buy the land. As for the cost of raising cattle, I can inject capital or lend you some money. You can decide which one to choose.
The cost of the distribution model is also very high. Dairy Farm has a large number of stores, but you can put them directly in Carrefour, and then use Carrefour as the center to deliver directly to nearby areas, which can save a lot of costs. Carrefour itself has delivery staff, so if you operate together, the cost will be much lower."

After listening to this, Wu Zhande thought for a moment and said, "Mr. Yang's method is indeed good. If we can really reduce the cost, there will be great opportunities."

The biggest cost of delivering milk is the need for enough stations and the labor cost of delivering milk to the people around these stations. It took Dairy Farm International a long time to have enough stores and a large number of people for delivery in Hong Kong.
But if you can use Carrefour stores as transit centers, you can save a lot of rental costs. The same goes for reusing labor. For delivery workers, you can earn more.

Yang Wendong said, "Okay, you guys can discuss it. Make a plan for every link, including raising cattle, milking, and distribution. Calculate the cost and do some calculations. As long as it's lower than Dairy International or even similar, then we can do it."

In fact, it doesn’t matter if it loses a bit, as long as it can hit Dairy Farm International’s business and cause its share price to fall;
If Swire still wants to acquire Dairy Farm in a few years, he can take the opportunity to acquire a large number of Dairy Farm shares. If it does not do so, he can gradually acquire enough Dairy Farm shares. After Sir Zhou Xinian really retires, he can also gradually take over Dairy Farm International.

Zhou Haoran and Fang Xianming both said, "Yes, Mr. Yang."

Soon it was December 12th;
There is no Double 12 in this era, but today is the day when the Far East Exchange was established;
Li Fushu also invited many political and business celebrities to come to the platform, and Yang Wendong was also invited;

"Mr. Li, congratulations." Yang Wendong said with a smile: "Today, the first Chinese stock exchange was born. This is definitely a major event that will be recorded in the history of Hong Kong."

In the past, there were many stories about Hong Kong's business history, such as mergers and acquisitions, business wars, and finance. The foundation of these stories is actually the stock exchange. Without the stock exchange, companies cannot go public. Even if the acquirer has great financial resources, it cannot launch a hostile takeover.

Li Fushu laughed and said, "Haha, I hope so. I don't ask for money, but fame is also good."

When a person has no money, his only pursuit should be to make more money;
And when he is financially free, he can pursue many things.

"There will be some." Yang Wendong looked around and said, "Mr. Li, there are no foreigners coming. It seems that the British are also very unhappy about this."

"Haha, times have changed. These foreigners still think it was decades ago." Li Fushu said with a smile, "If the Hong Kong Stock Exchange had not prohibited Chinese companies from listing a few years ago, I would not have such an opportunity today."

"Their own actions have also brought themselves a big competitor." Yang Wendong nodded and said;
History always repeats itself. In the history of human commerce, many new enterprises have defeated large enterprises because large enterprises did nothing after monopolizing the market, thus giving others new market opportunities.

For example, in the chip industry in the previous life, Bill Gates once said that dumping is the most powerful conspiracy in business, and blockade is not. But it was precisely because of the blockade that Dongda was given a huge market, and the chip industry began to take off.

After a while, the Far East Exchange was officially listed. Many companies began queuing up for listing from 9 o'clock. Many investors also began waiting at the door. As soon as the door opened, a group of people crowded in.

"I want to buy stocks"

The scene suddenly became lively. The TVB camera crew had already arrived and were filming. Reporters from other newspapers were also conducting random interviews, trying to find news content that could make the headlines.

On the second floor, Yang Wendong asked Fang Xianming beside him: "How many of the people down there are ours?"

"About one tenth, not a lot. We have stronger financial resources and everyone has enough funds." Fang Xianming replied with a smile.

Yang Wendong nodded and said, "Okay, then just buy the real estate company's stocks. The stock prices have been raised a bit in the past few days. The more companies that come to the market, the better it will be for us."

PS: Ask for monthly ticket

(End of this chapter)