Chapter 618 The Beginning of a New Era

Chapter 618 The Beginning of a New Era

Chapter 618 The Beginning of a New Era

"It turns out that Qi Dezun is not only good at real estate and stocks, but also has a knack for snatching business from British companies." Yang Wendong said with a smile, his words also full of admiration;
Among the current British businessmen in Hong Kong, Qi Dezun is the one he admires the most. His ability is estimated to be no less than that of Ma Shiming in the future, and he started his business from scratch. Although the entrepreneurial process is a bit greedy, as long as it does not violate the law or is not discovered, it is fine.
Wei Zetao smiled and said, "Yes, I checked. Hutchison's annual imports of steel products are as high as 50 to 60 million Hong Kong dollars, and the data is still rising. If we really expand the steel plant, it will affect his business.

Although Hutchison Whampoa is not an industry within our group, it is also invested by you, so..."

"Just do what you have to do." Yang Wendong shook his head and said, "Don't just talk about Hutchison, even if it's other subsidiaries, normal competition has nothing to do with it;

I have basically banned unnecessary internal friction among you, but if there is a conflict between different industries, I will choose not to intervene. The two industries will develop on their own, and whoever wins will survive. "

The internal division of labor of Changxing Group is very clear. Real estate and finance, no other companies are allowed to touch. Shipping companies are responsible for shipping, shipyards, etc., Changxing Industry is responsible for various home furnishings and office supplies, Honor is responsible for electronics, and Watsons is responsible for beverages and food;

Each industry can expand its investment into its own back-end sales chain or front-end industrial chain according to its own needs.

Under normal circumstances, they would not interfere with each other, but if non-industry competition really occurred, for example, an electronic product of Honor would threaten a daily necessities of Changxing Industrial, then Yang Wendong would naturally not interfere;
In the past, many large companies were defeated by garage entrepreneurs. The core reason was that they were unwilling to reform themselves for the sake of existing interests. For example, Kodak refused to transform in the late 90s when everyone knew that film was about to end. Of course, the bigger reason was that the internal interest chain had too much resistance.

Wei Zetao smiled and said, "Okay, I'll prepare for this right away, but do I need to tell Qi Dezun in advance?"

"There's no need. It's just normal competition. It's already good enough that I don't allow Changxing Trading to do this business." Yang Wendong shook his head and said.

Changxing Trading is also positioned as a trade between Hong Kong and the international or mainland China, and it is likely to compete with any other traders.

It’s just that there are too many industries to do everything, so basically we focus on cooperating with several subsidiaries, such as Watsons’ food and sugar, Carrefour’s daily necessities, Changxing Industrial’s plastics, pulp, and chemicals, Honor Electronics’ various electronic components, etc.

If these are done well, it will be very powerful, especially for daily necessities. If the supermarket giants in Europe and the United States such as Walmart, Costco, Auchan, Metro and the like are developed, they can easily become one of the Fortune 500 companies. Moreover, the purchase of large quantities of daily necessities will have great significance and influence in Asia in the s and s.

Wei Zetao said: "Yes, I think Qi Dezun's main focus now is real estate and finance. As for other industries, he basically plans to increase the stock price."

"You've figured it out. It seems that Hutchison's market value is really inflated." Yang Wendong suddenly said.

Qi Dezun is indeed very capable, and with his own support, Hutchison Whampoa's current market value is close to HK$20 billion, which is indeed too large. It is higher than those of old British companies such as Wharf Holdings and HK Electric.

Wei Zetao thought for a moment and said, “I just feel that Hutchison’s current scale and profitability should not be worth so much, but then again, market value is not just about the present, but the future;
Qi Dezun's ability is at least recognized. Many British investors regard him as the first British investor in Hong Kong's business community. With so much capital being optimistic about him, it is normal for the stock price to be inflated. As long as there are no problems later, that is the true market value."

"That's right. Expectation is the greatest weapon in finance." Yang Wendong nodded and said.

In fact, in history, Hutchison Whampoa in the 70s and Carrian in the 80s both relied on “expectations” to push their share prices sky high.

But if there hadn't been an economic crisis and the business had been more stable, there might have been a chance for a soft landing. But there are no ifs in history, and if you lose, you lose.

Time soon came to July 7th. On this day, a piece of news that shocked the world was released from America:

The mainland and the United States have reached a consensus that the current US President Nixon will visit the mainland before May next year, and China and the United States are about to prepare to establish formal diplomatic relations;
At the same time, the United Nations will also vote on the mainland's entry into the normal seat of the United Nations.

Such bombshell news made the Hong Kong media unable to react for a while, but smart people knew that this would be a huge opportunity for Hong Kong, a port city, so stock prices soared, and the Hang Seng Index rose by 72 points at one time. A large amount of Hong Kong and external funds poured into the stock market.

The same is true for the real estate market, but real estate transactions are not as convenient as the stock market and there is a certain delay, so we are only optimistic, but the data will not change immediately.

The media also began to bombard the matter on the 18th, and various famous people in society came out to explain and analyze the matter.

But more wealthy people in Hong Kong did not stand up and say anything. Many reporters wanted to interview these wealthy families who control the future destiny of Hong Kong, but they were met with setbacks everywhere. Obviously, everyone was waiting and watching at this time.

In the Yang family villa, after reading the newspaper, Su Yiyi said, "I never thought that the relationship between the mainland and the United States has improved. If I had said this 20 years ago, no one would have believed it."

"There is no eternal hatred between countries. Interests are the most important." Yang Wendong smiled and said, "It's the same as those of us who do business. Unless there are personal conflicts, we can cooperate anyway."

In his previous life, Pao Yu-kong snatched Wharf Holdings from Jardine Matheson, but half a year later, the two sides came together to develop a real estate project. It can only be said that as long as there are interests, previous conflicts are no longer a problem.

Su Yiyi asked again: "So, what impact does this have on us?"

Yang Wendong said: "There will definitely be an impact. At least the mainland will definitely import more overseas materials and industrial equipment through Hong Kong. We may also be able to participate to some extent."

The reform and opening up is still a long way off, but what is near is the mainland's various overseas purchases, especially during the first oil crisis. Overseas countries' consumption collapsed due to the sharp rise in oil prices, and various industries and agriculture urgently needed new markets. This gave the mainland and even the polar bears a good opportunity to purchase overseas goods.

In this era, Hong Kong is the only window connecting the mainland and overseas. Perhaps core commodities will not go here, but many civilian supplies must pass through Hong Kong.

"Hong Kong trading companies are going to make a fortune again now." Su Yiyi said with a smile.

Yang Wendong nodded and said, "Maybe. People's livelihood trade is indeed not what we are good at. However, things in the mainland will change a lot in the future. Maybe the current benefits are just a drop in the bucket."

The 70s also marked the beginning of a new era.

PS: Please give me a monthly ticket
I dare not write too much in this chapter~
(End of this chapter)