Chapter 711 Mutual Rescue Cooperation

Chapter 711 Mutual Rescue Cooperation

Chapter 711 Mutual Rescue Cooperation
As the most important representative of Chinese capital, Yang Wendong's core targets are still those large British capitals. He usually disdains to deal with small ones and lets other interested Chinese capital go. Even if there are none, it doesn't matter. After all, Hong Kong will be a modern international city in the future, so it is normal to have some foreign capital.

But if these small players take the initiative to provoke him, then don't blame him for being rude, and in the process clean up the entire industry, allowing Chinese-funded trading companies to intervene in some business;
For the people of Hong Kong, although Chinese-owned trading companies may not necessarily make concessions on their own initiative, as long as the British monopoly is broken and multiple Chinese-owned trading companies are allowed to compete with each other, it will be beneficial to the entire society;
Under the operation of Changxing Media, the relevant reports naturally ended quickly. A few days later, Wei Zetao also brought his own plan. After Yang Wendong read it for a while, he said, "Let's do it according to your plan. Invest in these Chinese-funded trading companies, and then use some group resources to expand their scale and squeeze the market of British-funded trading companies."

"Okay, Mr. Yang, we are already in an economic crisis now. As long as we operate well, many British trading companies will suffer serious losses within half a year." Wei Zetao said with a smile.

Yang Wendong nodded and said, "Okay, tell me the results later."

"I understand." Wei Zetao continued, "There is one more thing. Huang Kejing from the Chinese Manufacturers' Association also found me. They said that many plastic companies are really going bankrupt and hope that we can lower the ex-factory price of plastics."

"Our prices are already cheaper than those imported from overseas. This is how the international market is now." Yang Wendong shook his head and said, "If I really lower the price, I don't know how many manufacturers will profit from it."

Wei Zetao nodded and said, "I also told President Huang the same thing, but he said that we can provide appropriate discounts specifically for those small businesses. These companies have approached us before, but I rejected them. Now they have approached the All-China Manufacturers Association.

Chairman Huang means that we need to help these small businesses appropriately, otherwise they will all go bankrupt, which will not be good for the current Hong Kong economy. In the long run, it will also affect Hong Kong's manufacturing industry and even our Changxing Industry."

"How many small and medium-sized enterprises are facing this problem now?" Yang Wendong asked again.

Wei Zetao said: "Quite a lot. What these people said may be false, but I also arranged for people to investigate. Many plastic factories have indeed stopped production or have very low production capacity. They cannot fake this.
On the one hand, the price of plastic particles has risen too much. On the other hand, the overseas economy has been greatly affected by the oil crisis, and purchase orders have plummeted. Even our Changxing Group has been affected.

If this continues, I am afraid that many small and medium-sized plastic companies will go bankrupt, and even industries such as textiles and toys will be greatly affected.”

"It seems like we have to be the saviors then." Yang Wendong said with a smile;

Wei Zetao continued, "Mr. Yang, Huang Kejing also wants to see you, what do you think?"

"Okay, let's arrange it. It's semi-official at least." Yang Wendong nodded in agreement.

Wei Zetao replied: "Okay, I'll arrange it then."

The next day, Huang Kejing came to the headquarters of Kangle Building and met Yang Wendong.

"Hello, Mr. Yang." Huang Kejing shook hands very politely.

Yang Wendong also shook hands and said with a smile, "Hello, President Huang."

There are several chambers of commerce in Hong Kong, which were established by many Hong Kong businessmen in the early years. They represent the interests and needs of many people. When there are needs, everyone discusses together to avoid excessive malicious competition, or when encountering major problems, they negotiate together.

The presidents of these chambers of commerce are usually not the bosses of a company, but rather people of high moral character, in order to seek fairness for all members as much as possible;

Because Changxing Group had little competition with other peers in its early years, it did not join. Later, as its scale grew, it naturally would not participate.

However, the president of the Chamber of Commerce still has some influence in Hong Kong, and even the Governor of Hong Kong sometimes has to give him some face.

After the two exchanged pleasantries for a while, Huang Haking said directly: "Mr. Yang, you also know my purpose. Now many small and medium-sized enterprises in Hong Kong are facing bankruptcy. Whether it is the Hong Kong government, me or ordinary citizens of Hong Kong, we do not want things to come to this point, so I hope you can help as much as possible."

"My pricing is actually much cheaper than overseas import prices. President Huang can investigate this." Yang Wendong shook his head and said, "Even without counting the shipping costs, my factory price is cheaper than other countries' domestic prices.

If it's any cheaper, do you believe that many people will take advantage of me for no reason, and some will even resell the goods to Southeast Asia?"

Businessmen are born to pursue profits, no matter how big or small. Even though a lot of small business owners are crying miserably now, if they really buy cheap raw materials, they will immediately swallow up all the price difference. First, they will not share it with their employees, and they may even take the opportunity to deduct their wages. Second, they are likely to buy more and then resell it for profit. "What Mr. Yang said makes sense, and human nature is indeed like this, but we can't just watch so many companies go bankrupt, right?" Huang Kejing said awkwardly.

Yang Wendong thought for a moment and said, "It's not that there is no solution. We can just follow the normal business model. I can provide appropriate assistance, but these companies will also have to pay a little."

"Please speak, Mr. Yang." Huang Kejing asked immediately.

Yang Wendong said: “I will let my people select some strong companies from these companies to invest in and negotiate cooperation;

For other companies, let them contact Hang Seng Bank to see if they have any properties to mortgage. I will ask Hang Seng to appropriately lower the mortgage requirements to ensure their normal operations first, at least to ensure the capital chain, and there is no need to force them to start work first;
As for the overseas market, we can’t do anything about it. After all, Changxing Industry itself has been affected.”

Under the oil crisis, even if Yang Wendong was fully prepared, the overseas market was hit. Many people in Europe and the United States could not get gas and lost their jobs. A large number of companies cut their budgets, and so did families. In this situation, no company could escape the fate of being affected.

The Chinese Manufacturers' Association is a semi-official association, so some respect must be given. He also does not want too many manufacturing factories in Hong Kong to close down. If this is the case, after two years of Hong Kong's economic recovery, these people will most likely only speculate in stocks and real estate, and will not be able to engage in manufacturing.
At least in the next ten years, Changxing Group still needs to consolidate its roots in Hong Kong. Only places with more factories are more suitable for the operation of large factories. Moreover, Changxing Trading controls Hong Kong's plastics. If these companies go bankrupt during the oil crisis, they will still suffer losses in the long run.
So his plan was not to help them start many jobs, but to ensure that they would not die. The first oil crisis only lasted for half a year. After it was over, although oil prices were high, the European and American economies would begin to recover, and these companies would gradually return to normal.

As for the risk, there is almost none. As long as the property is mortgaged, the property value will increase several times after a few years, and there will be no problem on the Hang Seng Bank's side.

"Use their factory as collateral?" Huang Kejing asked.

Yang Wendong nodded and said, "The factory should be fine. As long as the location is not too remote or the building is too bad, Hang Seng Bank will approve it. I will notify them in advance about this."

Huang Kejing said again in embarrassment: "Mr. Yang, in fact, many factories are already insolvent, especially some people who used to speculate in stocks and real estate and suffered heavy losses. I understand that your requirement is already very low, but I am afraid that many people cannot meet this requirement."

"If this cannot be achieved, then the company will have to close down." Yang Wendong shook his head and said, "Whether it's you or me, it's enough to ensure that some of them don't have any problems. How can we save every one of them?
If it is just a debt problem, then your Chamber of Commerce may be able to mediate and sell the factory. If it is a management problem that is difficult to cure, then it should go bankrupt. With the Hong Kong economic crisis and the oil crisis, it is normal for some companies to go bankrupt. "

It wasn’t like he was helping the mainland with poverty alleviation in his previous life, so how could he possibly help every family?

After listening to this, Huang Haking also nodded in agreement and said, "That's good. On behalf of all the plastic merchants in Hong Kong, I would like to thank Mr. Yang."

"You're welcome. I don't want any major problems to occur in Hong Kong's industry either." Yang Wendong said with a faint smile.

After Huang Haking left, Yang Wendong called his assistant and said, "Make an appointment with Ho Sin Hang of Hang Seng Bank and tell him that I have something important to discuss with him."

"Yes, Mr. Yang." The assistant agreed.

That afternoon, Yang Wendong came to Hang Seng Bank and visited its new headquarters.

Yang Wendong smiled and said, "Mr. He, your headquarters is quite good, and the location is good too."

"Haha, it's far inferior to Mr. Yang's Kang Le Building." He Shanheng said with a smile;
Yang Wendong smiled and then asked, "How does this wave of economic crisis and oil crisis affect Hang Seng Bank?"

He Shanheng replied: "There are quite a few impacts. The overall economic downturn has definitely had an impact, and there are also some bad debts. But I also have to thank Mr. Yang for reminding me. I have suspended the acquisition of overseas banks and gathered enough cash. In addition, I have also sold some of the higher-risk businesses. So at present, the operation of the entire company is still fine. At most, I will make less profit or suffer a small loss in the past two years."

"That's good. Banks are different from ordinary companies. They can't bear too much risk, otherwise they will be finished if they encounter a run." Even Yang Wendong today is a little afraid of this, and then said: "Mr. He, I came to you today because I hope you can significantly increase your support for Hong Kong's industry."

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(End of this chapter)