Chapter 608: Increased Investment in Southeast Asia

Chapter 608: Increased Investment in Southeast Asia

Chapter 608: Increased Investment in Southeast Asia
In March 1971, Hong Kong's economy continued to develop at a high speed and had become an economic miracle in Asia.

Many overseas capitals, especially Chinese financial groups in Southeast Asia, want to come in and get a piece of the pie. In addition, Hong Kong, a region with a large Chinese population and located on the mainland, makes many overseas Chinese feel more a sense of belonging.

On the 6th, Yang Wendong welcomed an old friend from Southeast Asia: Guo Henian, in his office in Changxing Building.

Standing on the window sill of Changxing Building, Guo Henian looked at the building not far away and asked, "Mr. Yang, is that the future Kangle Building?"

Following the direction pointed by Guo Henian, Yang Wendong said, "Yes, it started in mid-September last year. Now the foundation has been laid and 9 floors have been built. It is estimated that it will be completed by the beginning of next year."

The design of the Connaught Building comes from Bei Jinming, and the construction team is Jinmen Architecture, with the participation of a large number of top local construction teams in Hong Kong;

Because Changxing Real Estate always pays according to the agreement, everyone is very motivated, so the construction speed is also extremely fast.

Guo Henian smiled and said, "It's amazing. A building with more than 50 floors can be completed in just over a year. This speed is impossible in Malaysia."

“It’s not impossible, but it’s impossible for the Malays. It’s still possible for the Chinese team.” Yang Wendong shook his head and said.

One floor a week is nothing. The three hospitals during the special period in the previous life were built within a week. Although they were only short-term buildings, they were enough to shock everyone.

Of course, Hong Kong's organizational capabilities cannot compare to those of the mainland, but the fact that Chinese people are naturally more proactive and hardworking is also an important factor. As long as Party A pays the money in time, there will be no problem.

Guo Henian nodded and said, "That's right. The Chinese in Malaysia have more wealth, which is also a proof of our strength."

"In Southeast Asia, Chinese financial groups are indeed the majority," Yang Wendong agreed.

The native people of Southeast Asia are obviously inferior to the Chinese in all aspects. A large number of Chinese began to migrate to Southeast Asia a hundred years ago, and eventually gradually developed into a powerful overseas Chinese consortium. Even during World War II, overseas Chinese donated large amounts of money to the country to buy airplanes, but it was a pity that they became savings certificates for some people.

Guo Henian said with a smile: "No matter how many there are, it still feels like it's not my hometown, so now many Chinese in Southeast Asia want to invest in Hong Kong."

Although Singapore is also dominated by Chinese, in the eyes of many Chinese, it is still inferior to Hong Kong. As for Taiwan, there are still many restrictions on capital in this era. Basically, only factory investment is welcome. There are relatively few Chinese financial groups in Southeast Asia that have made their fortunes simply by relying on factories.
Besides, Chinese people like to return to China to invest for profit. With the real estate and stock markets in Hong Kong growing so well, it is natural that Chinese people in Southeast Asia want to get a piece of the pie.

Yang Wendong smiled faintly and said, "So you also want to invest in Hong Kong?"

In the 70s and 80s, a large amount of overseas Chinese capital invested in Hong Kong. Some of it used Hong Kong as a springboard to invest in the mainland in the 80s, but the former still accounted for the majority.

Today, because of its existence, Hong Kong's economy has developed at least three years earlier than in its original history, and naturally it may also attract more overseas Chinese capital.

Guo Henian nodded and said, "Yes, I have this idea. I didn't dare to do it at first, but Mr. Yang, you are from Hong Kong, so I came to ask for your advice."

Yang Wendong said: "If you want to invest, it's actually not a big problem. Hong Kong's economy will definitely grow significantly in the future. The only problem is, are you greedy?"

"Mr. Yang is right. How much leverage should I use?" Guo Henian asked.

Pure investment is not very risky. Even if asset prices fall, you generally won’t lose a lot. A normal economy won’t plummet, unless you buy at a high price and then see a sharp drop.
But in this case, the returns will be much less, and pure investment would be a waste of money, so some leverage will inevitably be used through financial means to ensure profit margins.

For example, if the leverage is 5 times, then if the value of the product increases by 10%, you will make a profit of 50%, otherwise you will lose 5 times. Although the risk is a bit higher, it is still more cost-effective than making a 10% profit. At this rate, people will not make much when they are old. If you want to make a fortune, you have to take risks.

However, if you can find the right investors, the risk probability will naturally be reduced a lot.

Yang Wendong nodded and said, "Yes, Mr. Guo, in my opinion, the real estate and stock markets in Hong Kong will continue to rise in the future, but there will be a real estate crisis every few years, just like in 57 and 66. You also understand the reasoning behind this;
No one knows to what extent this crisis will occur and when it will break out. It all depends on luck."

Guo Henian asked with a smile: "Mr. Yang, even you don't know?"

"How could I know?" Yang Wendong smiled and shook his head in denial.

Today, Hong Kong's business history has changed drastically because of his existence. It is hard to say whether the stock market crisis in 73 will occur at the same time. It may be earlier or later.

However, events like the 67, 83, or the Suez Canal crisis in the Middle East would not be affected by him.

Guo Henian smiled and said, "With Mr. Yang's ability, he is at least much better than me who knows nothing about Hong Kong."

Yang Wendong thought for a while and said, "Mr. Guo, if you invest in Hong Kong for a long time and don't care about the gains and losses in the short term, I can say that you will definitely earn satisfactory results in the end.
But if you are just speculating and want to make short-term profits, you will leave as soon as there is any sign of trouble, and continue to invest if there is no sign of trouble. If you keep going back and forth like this, it is completely based on luck, and even I can't help you. "

Although history has changed, Yang Wendong still knows the most likely direction of development, but he can't tell anyone, and no one can get such treatment;

In fact, it is very simple to make money by investing in Hong Kong. Just invest seriously for the long term. Even if history is the same, a person bought a property at the peak of the real estate market in 72, and the value fell by half the next year, but as long as he could wait, the price would naturally recover in 75, and then continue to rise; even in 81, the same logic applies. On the contrary, if you frequently go in and out, the risk will be higher.

"Mr. Yang is right. Long-term investment is the best way to go." Guo Henian nodded and said, "I plan to invest in a five-star hotel in Hong Kong."

"Hotel?" Yang Wendong glanced at Guo Henian. He had the impression that Guo Henian did own a Shangri-La Hotel, but he still said, "Mr. Guo, from an investment perspective, office buildings are much more convenient than hotels. First, they are easier to manage. Second, the income is stable. Third, the income from a hotel may not be comparable to that from an office building."

As long as the office building is safe, if it is not self-sustaining, the cost of other aspects can be passed on to the tenant, such as electricity, water, fire protection, etc. Of course, it cannot be too bad, and it certainly cannot be much worse than other buildings;

The construction cost of a hotel is much higher. The special design and expensive decoration make the cost about 30% more expensive than an office building of the same level. Not to mention the management, it is extremely troublesome with so many employees having to deal with customers.

However, the profit is not necessarily high. If the business is not good, you will lose money. If the business is good, the profit will not be much higher than that of office buildings. It is totally uneconomical. This is why many large real estate consortiums have not entered the hotel industry on a large scale. At most, they will build some as a small business of the group.

Even the Four Seasons Hotel will mainly adopt the franchise model overseas in the future. Only countries like mainland China and Hong Kong, which know the future increase in land prices, will hold on to their investments.

Guo Henian said with a smile: "I know, but my dream since childhood is to build a hotel chain. This is my life goal, so even if I make less money, I will do it. I have already thought of the name, it is called Shangri-La Hotel;
The name Shangri-La is still somewhat well-known in Europe and America, so it is very good for publicity.”

"Okay, since it's your dream, then you should do it. Aren't we all making money for a goal? Having a goal is a good thing, haha." Yang Wendong smiled and said, "Shangri-La is also a good name, not worse than my Four Seasons."

As long as the super-rich don’t mess around, they will have more money than they can spend in three or even five generations. So the purpose of continuing to make money is nothing more than a purpose without a purpose.

And if you have a more accurate life goal, it would be better, even if this business is not the most profitable. After all, there are too many profitable businesses in the world and it is impossible to be the "best". It would be best if you can make a profit and like it.

Guo Henian said: "Haha, yes, it's what my heart desires, so I plan to participate in the next Hong Kong government land auction in Central and find a suitable location."

"Okay, it's indeed a good place to put it in Central." Yang Wendong nodded. The land in Central, even if nothing is done on it, will be worth dozens of times in a few decades.

Guo Henian smiled again and said, "From now on, my Shangri-La Hotel will be in Hong Kong, and I hope Mr. Yang will take care of it."

"Okay, no problem. Mr. Guo can just take care of my business in Malaysia." Yang Wendong said with a smile.

Although there is competition among hotel groups, as long as it does not approach the level of monopoly, they cannot be considered rivals at all. In Hong Kong, there are only a few profitable industries and everyone is trying to squeeze in. If competitors are enemies, then any two consortiums will be at loggerheads.

Moreover, his focus for the next ten years is to invest in Southeast Asia, which requires building good relationships with local wealthy people and cooperating with them to expand the industry. If they want to invest in Hong Kong, he can do the same thing. In this way, it is a win-win situation.

Guo Henian said: "No problem, I heard that Mr. Yang is looking for a suitable place to sell cars on a large scale. Leave this to me. I promise that I will soon have a suitable location in Malaysia for you to choose from."

"Haha, that's fine." Yang Wendong was very satisfied.

His cooperation with Toyota was an opportunity for him to participate in the automotive industry when he had no technology but only capital. However, Southeast Asia was not his territory. No matter how powerful the outside dragons were, many things would not be as convenient as for the local snakes.

With Guo Henian's help and his own sincere financial contribution, the automobile retail industry will surely expand significantly, at least in Malaysia.

"Mr. Yang, you are too polite." Guo Henian smiled and said, "Mr. Yang, our first sugarcane farm in Kedah was profitable last year, so I think we can continue to increase our investment."

"Have you taken our investment and bank interest into account?" Yang Wendong asked.

At the beginning, the two of them invested in a farm in Malaysia together and bought a lot of cheap land. Although the land was cheap, the subsequent development cost was very high. This was also intentional by the Malaysian government. However, it was enough for them to get the land, and everyone was happy.

The huge investment naturally has to be made step by step. Once the first step is successful, experience is learned and more relevant people are gathered, the next step of expansion can be carried out.

Guo Henian nodded and said, "Yes, I also brought relevant information this time. I will give it to Watsons. You can also send someone to review it."

"Okay, I will negotiate with Mr. Zhou from Watsons." Yang Wendong nodded and said, "If there is no problem, I will naturally follow the next investment."

It is impossible to expect a high rate of return for this kind of agricultural industry. As long as there is no loss, it will be fine. With a sufficient area of ​​land, there can be enough sugar, and then there will be higher returns in subsequent related industries.

Guo Henian said: "Well, if Mr. Yang is in Malaysia and wants to invest in something, just tell me."

"Maybe there are some in Malaysia, we'll talk about it later." Yang Wendong paused and said, "Mr. Guo, how many wealthy Chinese people do you know in other Southeast Asian countries?"

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(End of this chapter)