Chapter 607 The Consortium’s Backer

While ensuring the normal operation of local business in Hong Kong, a large amount of resources of Changxing Film Company were also invested in the United States. A team of more than 100 people directly applied for work visas and stayed in Los Angeles.

Actors are only a small part of it. More importantly, it is about different professions in the process of filming. The main purpose in the past was to learn about American film shooting.
Fortunately, Changxing Group has been operating in Los Angeles for a long time, so it is no problem to arrange some accommodation and meals, which saves a lot of costs. These are the biggest costs for going abroad, and air tickets are just a small expense.

After Yang Wendong got a rough idea of the situation, he didn't ask too much about it. This kind of thing was not worth his concern. He just needed to wait for the movie to be completed and then look at the content, as well as the expected Christmas box office results at the end of the year.

Time quickly came to the end of February, and Hong Kong's economy was still developing normally as before. The Hang Seng Index broke through 2 points, and real estate prices repeatedly hit new highs. Countless people were rushing to buy houses and stocks, which formed a social trend.

At the Kwun Tong Industrial Park base, after Yang Wendong arrived here, Wei Zetao accompanied him for a walk.

Yang Wendong asked: "The material of the plastic bottle has not been researched yet?"

Wei Zetao shook his head and said, "It has not been completely successful yet. Our laboratories in the United States have already developed a method to produce plastics with lower toxicity during the heating process, but it is not yet food grade."

"Well, it's good to have some progress. Let's take it step by step." Yang Wendong was not in a hurry. There was no point in being in a hurry about this matter.

Both plastic and PET have been around for decades, and many beverage companies must have been dissatisfied with heavy and easily broken glass a long time ago. They must have thought about replacing it with plastic, but they spent a long time trying to find a suitable material, and even let metal cans come into being first.

Some properties of cans are better than glass, and they can withstand greater pressure, but they are still not perfect load-bearing objects, not to mention that cans of this era are still made of tinplate and are very heavy.

"I understand. I also hope to figure it out as soon as possible." Wei Zetao paused and said, "Mr. Yang, there is one more thing. Many factory owners in Hong Kong have become keen on speculating in real estate and stocks, and have paid less attention to the factories themselves.
One of the small factories that made plastic parts for us had a major problem and was sued for compensation. They closed down directly and are still in the process of suing over the compensation amount.

"Did this guy also make a lot of money speculating in real estate and stocks?" Yang Wendong asked with a smile.

Wei Zetao nodded and said, "Yes, his factory is worth about a million Hong Kong dollars, but I heard that he made millions speculating in real estate and didn't want to open a factory anymore. In fact, we only claimed a few hundred thousand dollars, but he took the opportunity to close it down."

Yang Wendong said: "Then I guess he is planning to change his career. Actually, it's normal. He can make money by speculating in real estate and he doesn't have to run the business and doesn't have customers, suppliers or workers. How great is that?"

Not to mention that many resource channels in Hong Kong are monopolized by financial groups in this era. Even in the mainland in the past, when real estate was selling well, many traditional factories and enterprises wanted to come in and get a piece of the pie. Even if they could not reach the national level, they would use their influence to make a little money in the surrounding cities.

The growth in real estate and stocks in Hong Kong during this era is even higher than when the mainland real estate was booming in the past. Few people can bear it.

Wei Zetao also said: "Yes, if it weren't for you, Mr. Yang, stipulating that only Changxing Real Estate can participate in real estate development, I would be very tempted."

As the largest industrial group in Hong Kong, it also owned a large number of warehouses, industrial land and other land in its early years of development. These lands were located on the fringes of Tsim Sha Tsui and Kwun Tong areas in the early years. Now, with the development of the economy, the value of these lands has also risen.

However, Yang Wendong stipulated very early on that any subsidiary could hoard land during its development and use the purchased land for its own use, but was not allowed to participate in development or sale. Even if these business activities were beneficial, they had to be reported to the headquarters, and then Changxing Real Estate would get involved. This cut off the idea of any subsidiary relying on the land in its hands to increase its own financial bills.

Because of this, even if the land prices outside soared, Changxing Industrial, Watsons, Honor Electronics and even several other subsidiaries would not be concerned at all, because even if the land was developed, it would have nothing to do with them.

This is also the group headquarters, to ensure that each subsidiary performs its duties and does its own work with peace of mind.

Yang Wendong smiled and asked, "Are there many companies like this? Have they had an impact on our group?"

Changxing Group's several manufacturing subsidiaries have suppliers in many places across Hong Kong. If some of these companies withdraw from the industry, it will definitely have an impact.

Wei Zetao replied: "At present, there are only a few such people, which has no impact on the company, but it is hard to say in the future. I am worried that the number of such people will increase, or they will not care about the quality of our company and pose risks to our products."

"This is indeed something that needs to be prevented in advance." Yang Wendong thought for a while and said, "Negotiate with these companies about quality collateral and strengthen post-event accountability to prevent these people from making money in the real estate and stock markets and then not taking the factory seriously.

But if they really don’t want to do it, we can’t force them. As long as they make it clear in advance, we can negotiate to transfer the supply chain to other factories, or let other suppliers buy their companies, etc.”

Changxing Group is so big that it won't force anyone to do anything. If you really don't want to do it, that's fine. Just follow the supply contract. Wei Zetao nodded and said, "Okay, but if we do this, our costs will be more or less higher."

"How can it be that Hong Kong's housing prices have risen so much without affecting us?" Yang Wendong smiled and shook his head and said, "Hong Kong's labor costs will also increase significantly, right? If the service industry has increased wages, our factories will also have to increase wages."

After the real estate and stock markets soar, although it is all virtual wealth, people's consumption capacity will increase significantly, because they have a bottom line in their hearts and feel that they are all rich people, so they naturally will not save money.

Large amounts of consumption naturally stimulate the service industry, and the wages of waiters will naturally rise. As a result, factories must also increase wages, otherwise their employees will be snatched away by restaurants and hotels.

Wei Zetao also smiled and said, "Yes, the annual salary increase is much higher than in previous years, and many employees also complain that prices are rising too fast."

Yang Wendong added: "Let's put it this way. We can consider relocating some very low-end industries, such as adhesive hooks or small products."

In the early years, many products of Changxing Group were transferred to Taiwan, Singapore, Malaysia and other places. However, these were for the purpose of diversifying the production areas, geographical location and transportation costs. The industry is basically available in all places, because although there are differences in cost, they are not very large.

Hong Kong's real estate industry is developing the fastest right now. It has not reached its peak yet, but the subsequent development speed will be extremely fast and the number of workers will be insufficient, so we naturally need to be prepared.

"Mr. Yang, I don't think it's necessary for now." Wei Zetao suddenly said, "There are still many immigrants in Hong Kong every year. It's okay to recruit these people to do simple jobs."

"You mean the north?" Yang Wendong thought for a moment and said, "That's fine. Move some simple factories to the New Territories. It will be easier to recruit people there. Transfer the land on the Kowloon Peninsula to Changxing Real Estate for development. The profits will be greater."

Not to mention now, even ten years later, there are still many people who want to smuggle into Hong Kong. These people are not wrong. After all, times have changed, and pursuing "wealth" is right.

If we can provide some simple jobs, they generally won't ask for the normal level of income in Hong Kong, which is a good match.

Wei Zetao smiled and said, "Yes, it is better to keep these jobs in Hong Kong for Chinese people than to give them to foreigners in other places."

Although the economies of Taiwan and Singapore are not as good as those of Hong Kong, their populations are not large either, and there are many other industries in their own country. Industries that are too simple and have too low profits will not last long in these two places. Although there are Chinese in Malaysia, it is impossible for any factory to only recruit Chinese.

Yang Wendong said: "Okay, you can arrange this matter yourself."

"Okay." Wei Zetao agreed and said, "Mr. Yang, in the past month, we have given China Resources about 1 tons of pulp. China Resources is still buying more, and I heard that they are also buying related chemicals and equipment from Japan."

"Normal. Such a big country must need paper." Yang Wendong nodded and said, "We can't control chemicals and equipment. If the domestic market wants pulp or paper, we will resell it. If not, forget it.
What about other things? Besides paper?"

Although the mainland was only reformed and opened up in 78, things have actually been different since 70. The most obvious example is this year's ping-pong diplomacy.

As the second most important factor in a country, the economy will definitely change in its external relations.

Wei Zetao said: "From some of the trade in Hong Kong, China Resources has indeed found many trading companies to import a lot of things from abroad, including industrial materials and daily necessities, and even some of our televisions have been imported."

"Okay, keep an eye on it. If there is any other progress, let me know in time." Yang Wendong nodded.

With the help of some opportunities in Hong Kong, he was able to develop into a top financial group in Hong Kong; but if he wants to go further and become a global level financial group, he must have a certain background behind him;

Even if it is the electronics industry, if there is no foundation behind it, it will be like a rootless duckweed even if it becomes big.

Although, we cannot completely rely on the mainland. At this time, Hong Kong still nominally belongs to Britain, so this can also become our support.

This will also be part of our own layout. The consortium can only grow if it has a national-level backer. This is true for consortiums in any country.

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

previouscatalognext