Chapter 712: High-value newspapers in the Middle East market

Chapter 712: High-value newspapers in the Middle East market

Chapter 712 High Returns from the Middle East Market

"Hong Kong Industry?" Ho Sin Hang asked in confusion. "Mr. Wei has already contacted me and asked me to provide appropriate financial support and loan limit to some plastic factories. I have also basically relaxed the standards for the review."

Generally speaking, during this kind of economic crisis, banks also need to recover loans and try to ensure that they have sufficient funds on hand; however, Changxing Group is also a major shareholder of Hang Seng, so naturally they will give it some face.

Such small-scale matters generally do not require Yang Wendong to come in person.

Yang Wendong explained: "Originally it was only for the plastics industry, but I thought that we could provide some appropriate assistance to some companies in Hong Kong that are in short-term difficulties to prevent some originally normal companies from closing down due to capital chain problems. Many small and medium-sized enterprises are facing this problem now. It would be a pity if they closed down like this;

The second reason is that Hang Seng Bank saved these companies. When the oil crisis is over, these companies will definitely become Hang Seng's customers. I also control a lot of imports and exports and raw materials. In the long run, the more prosperous the manufacturing industry in Hong Kong is, the better it will be for us.

Even real estate and the stock market belong to the tertiary industry. If they want to develop well, they also need sufficient industrial support. "

Hong Kong's original main economy was factory exports, and real estate was secondary. If it were not for the improvement of relations between the mainland and the West and the reform and opening up, Hong Kong would have become a transit station. Otherwise, when the industry collapsed, the real estate and stock markets would have found it difficult to continue to prosper in the long run.

Although Hong Kong's industry will inevitably move north after the mainland's reform and opening up in the future, being able to preserve more manufacturing industries today can also ensure that more manufacturing industries will move to the mainland in the future. The role of Changxing Group in this process cannot be replaced in the short term.

"Yes, but are you sure you can control the risk?" Ho Sin Hang asked uncertainly, "It's not just Hong Kong that is experiencing an economic crisis, it's a global oil crisis, which is much more serious than an economic crisis."

The economic crises of previous years actually had little impact on Hong Kong’s industry, and even on industrial real estate, because the core factor that determines Hong Kong’s industry is overseas demand;
But now the economic crisis has not only broken out in Hong Kong, but also overseas, and it is caused by oil shortage. If this problem cannot be solved in the short term, it will be a horrific economic disaster.

Yang Wendong shook his head and said, "The oil crisis is unlikely to last long. If the Middle East goes too far, it will force other countries to develop their own oil fields, so they will only impose appropriate restrictions.

Moreover, many overseas oil fields are expanding production right now, and governments have begun planning to further develop new oil fields, so it won’t take long.”

The actual situation is exactly like this. When the Middle East restricted oil, it brought a major blow to the United States and the West, but this was just a surprise attack. It is not that there is no solution, because there are many oil fields in European and American countries and even in South America and Asia.
In the past, oil in the Middle East was easy to dig, and these people were suppressed by the Seven Sisters of Oil and had little profit, so there was naturally no need to operate other oil fields. However, this oil crisis has taught everyone a lesson;

In 1978, the second oil crisis broke out, which dealt another blow to Western countries that were not fully prepared. Then Europe and the United States made up their minds not only to develop their own oil fields, but also to spend huge amounts of money to build strategic oil reserves.

Of course, the actual situation is more complicated than this, such as Saudi Arabia's full surrender to the United States in 1974, the civil unrest in the Middle East, and so on.
After listening to him, He Shanheng said, "That makes sense. I will trust Mr. Yang this time, but proper risk control is still necessary. At least I have to look at the property mortgage or previous operating conditions."

"Of course." Yang Wendong nodded;
Although the risk is indeed not high, that is for him as a time traveler; for banks, even if they are sure that there will be no risks in the future, they still have to follow certain procedures, otherwise if they win ten times, they may lose everything if they lose once.

He is willing to lend a helping hand to Hong Kong's manufacturing industry if appropriate support is given. In the long run, it will be of great help to himself, the Hong Kong economy and even the future investment attraction after the reform and opening up of the mainland.

At the level of Changxing Group today, we often cannot just think about ourselves, but need to form a common prosperity with a regional group, and also need to win over enough groups;

Hong Kong's manufacturing industry may decline in the future, but it will become stronger and stronger in the next decade or so. In the 80s, Hong Kong's manufacturing industry's overseas investment once ranked fifth in the world, which also shocked many politicians and business circles in Europe and the United States, making Hong Kong's economy the subject of research by many overseas universities.

If the population is not too small, the real estate economy is not kidnapped, and the mainland industry is not siphoned away, then Hong Kong's future industry will be no less than Singapore's. It is still possible.

But even so, more than ten years is enough. A person's life does not have many decades. Even between countries, more than ten years of relationship is considered a long time. Everything is changing. As long as it is beneficial for a period of time, it will be enough.

Hang Seng Bank soon began to inspect many factories in Hong Kong. In this era of economic downturn, bank staff were not very busy, so they invested in it in an all-round way. Many companies that were in financial difficulties received funding from the bank in a short period of time.
If the business is still good, it will continue to develop normally. If the business is not good, it will enter a state of barely maintaining.
At the same time, representatives of Changxing Industry and Changxing Financial Company also began to visit some Hong Kong manufacturing companies of a certain scale. If there are suitable ones, they will invest in them. In addition, they will provide some support other than funds according to the actual situation, such as direct orders, introduction of new customers of trading companies, technical upgrades, etc.

The most important thing is to bring these enterprises under the left and right wings of one's own group. After the reform and opening up, they can be guided into the country together to maximize the benefits. This can appropriately avoid the situation where these capitals abandon the manufacturing industry due to the future surge in Hong Kong's housing prices and stock prices, which would be quite a pity.

Factory managers who are able to make a career in Hong Kong all have certain abilities. Among these people, as long as they go to the mainland, with the unique conditions and policies, they can definitely achieve even greater results.

With the cooperation between Hang Seng Bank and Changxing Group, Hong Kong's small and medium-sized manufacturing enterprises have also ushered in a certain hope. Even if they suffer losses, as long as the capital chain can be stabilized temporarily, they will be able to hold on for a while.

Yang Wendong also knew that the first oil crisis would not last long, and Hong Kong's manufacturing industry would still be able to survive. He also took this opportunity to integrate those who were capable and provide support, so that everyone could grow together and strengthen Hong Kong's manufacturing industry, especially the electronics industry. The next ten or twenty years will be the golden age of the electronics industry. Before the mid-90s, the mainland was not attractive enough for the electronics industry. During this period, South Korea, Taiwan and parts of Southeast Asia were the gathering places for the electronics industry. In the future, Hong Kong will naturally be the place. There is even a chance to grab some high-end electronics industry in the future.

To reach this point, many factors are needed, one of which is that the manufacturing industry cannot be interrupted. Even if there are only a group of low-end industries, as long as there are enough workers, it is possible to gradually upgrade to high-end industries. If there are no low-end industries at all, thinking about restarting the manufacturing industry or even directly engaging in high-end industries is completely a dream. For example, the re-industrialization of the United States decades later is completely ridiculous.

Hong Kong cannot have only one Changxing Industrial Company. Only when multiple companies cooperate can the entire industry be stabilized. When the electronics industry explodes in a few years, Hong Kong will have the opportunity to seize this opportunity.

But that is in the future. We need to wait another two years to see when personal computers will become popular. It is unknown whether Jobs will still establish Apple as he did in history. Yang Wendong did not deliberately interfere and just waited for the time being.

Time quickly came to the end of December and another year is coming to an end. When you are no longer a child, you always feel that time passes quickly.

Hong Kong also experienced a cold wave. Although it was not very cold, it was a bit chilly.
Inside Kangle Building, the heating was turned on in Yang Wendong's office. Several people sat on the sofa in the reception area. The slanting sunlight just happened to shine on this position, which was quite refreshing.

"Mr. Yang, our business orders in the Middle East have increased dozens of times recently. The factories in Hong Kong are almost running out of production." Watsons' Zhou Haoran said with a smile: "Other factories have stopped working and reduced production due to the sluggish global market, but we are the only one that is extremely busy."

"Haha, the oil price has increased three or four times. Those countries in the Middle East are making a lot of money. They can be said to be nouveau riche now." Yang Wendong said with a faint smile.

Before 70, the price of oil exported from the Middle East was only $1.98 per barrel. Around 70, the Middle East negotiated with the Seven Sisters of Oil for several years before raising the price by $1 to $3 per barrel.
Now, for some reasons, Russia has completely fallen out with the West, and global oil prices have skyrocketed. Although there is an embargo on the West, there are still many countries where Russia can do business, and even many countries do resale business. All countries know about this, but they have acquiesced, just like Europe’s sanctions on Russian oil and gas decades later;
Under such circumstances, it is difficult for the Middle Eastern countries not to develop. After they have money, although most of it is owned by the nobles, a part of it is still given to their own citizens.

With huge wealth gained all of a sudden, the consumption capacity of the entire Middle East market will naturally surge;

The investment that Yang Wendong arranged in the Middle East market in the early days has finally begun to pay off. However, any normal person, if suddenly they have money, especially with subsidies at the national level, even those who have received many years of education in the country may not be able to resist the urge to consume and enjoy, not to mention the Middle Eastern group with an average cultural level.

Zhou Haoran also smiled and said, "Yes, our various foods and snacks are selling very well in the Middle East, and Fanta Cola is the same. Because of the relationship with the United States, the local area directly banned American brands, and the entire market was completely left to us."

The Middle East has already imposed an oil embargo on the United States, so naturally there will be restrictions on European and American goods in other areas. In the early years, it was only Coca-Cola that was restricted, but now even Pepsi is restricted;
As for the cola brands in the global market, there are basically only Pepsi and Coca-Cola, while the others are all local. Only Yang Wendong specially arranged for Feichang Cola to enter the Middle East market first even if it was at a loss. Now, with the drastic market changes, Feichang Cola has gained the market in an instant.

"Okay, during this period of time, we will advertise more in the Middle East market and try to make Fanta Cola famous. Then, the Middle East will become an important base for our cola brand." Yang Wendong nodded and said.

With the two cola giants operating globally for a century, it is very difficult for Fanta to compete with them, not to mention in other places, even in Hong Kong. If it were not for Carrefour's strong support, it would have been defeated long ago.

Looking around the world, there are only a very few regions where Feichang Cola may find suitable opportunities. This requires the "prophetic ability" of the time traveler to prepare in advance. One is the future mainland, and the other is the current Middle East market.

Zhou Haoran said: "I understand. As long as our Fanta Cola has a firm foothold in the Middle East, it will be much easier for other brands in the future."

Once a product is successful, it will gain popularity and customers will be more receptive to similar products. Similarly, channels can also be shared, so Coca-Cola can easily launch brands such as Sprite, Fanta and even mineral water.

Yang Wendong suddenly asked: "Some of our foods must not contain pork, especially ham sausage, otherwise it would be a taboo in the Middle East."

Each country has its own taboos. In the past, many people in the mainland may not be aware of the troubles involved. Once they are touched, they may suffer economic losses or even criminal offenses. Someone was sentenced to ten years in prison for drinking in India.
Zhou Haoran replied: “Don’t worry, Mr. Yang, we have a dedicated international legal department and will communicate with local lawyers and trading companies to avoid legal and cultural disputes;
The ham sausages in the Middle East only have chicken and corn sausages, and never pork."

"Okay, you take charge of this aspect yourself. The Middle East market will be one of our largest overseas markets in the future." Yang Wendong reminded.

This is a new market with a population of over 100 million and strong consumption capacity in the future. Before the reform and opening up of the mainland, this will be one of the markets that Changxing Group values ​​most.

At this time, Wang Zhiqun of Honor Electronics also said: "Mr. Yang, in the Middle East market, our Honor Electronics' home appliances are also very popular."

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(End of this chapter)