Chapter 773 Indirect Plot

Chapter 773 Indirect Plot

Chapter 773 Indirect Plot

South Korea's Samsung is now a top conglomerate, but its subsidiary Samsung Electronics is much smaller;
According to records, Samsung Electronics recently acquired a Korean semiconductor company and prepared to enter the semiconductor industry. This was opposed by Samsung founder Lee Byung-chul and many senior executives, who also knew that the semiconductor industry was too expensive.
But Samsung's second-generation founder Lee Kun-hee insisted on his own opinions and tried to survive in the cracks. As a result, the semiconductors he produced were not even used by his own company, and there were indeed major problems with quality.

The fundamental reason for Samsung's rise is that it took advantage of the US sanctions on Japanese semiconductors, and then desperately poached people from Japan, and was willing to make concessions to Wall Street. In the end, it succeeded because of the right time, right place, and right people.

Honor will also get some benefits from Japanese engineers at the right time, but it is hard to say whether it can replicate Lee Kun-hee's experience. After all, Hong Kong has the mainland behind it, and the United States is still relatively cautious. If it does not provide the market, it will be difficult for any company to rise.
Therefore, investing in Samsung is the best choice. As for Honor, it is enough to stabilize its existing market and the mainland market. The main focus is to meet its own needs and enable it to have a certain bargaining power with suppliers.

However, the current scale of Samsung Electronics is not very large, and the situation in South Korea is somewhat special, so he will not participate and let his subordinates do it. Anyway, there is no rush, and it doesn't matter if it is delayed for a year or two;
Time soon came to June;
The MTR has officially started auctioning two plots of land near the Central and Sheung Wan MTR stations, using a sealed auction model;

That is, all bidders submit their proposals and then go back to wait for news;

And it doesn't end here. MTR Corporation will contact several of them and secretly negotiate to change the cooperation conditions. When they are almost ready, it will announce the cooperation.
The auction at the venue was not lively. Some reporters came and only saw a group of business leaders chatting with each other. Then when the time came, they sealed the documents they had prepared and handed them to the staff of the MTR Corporation, and then the auction ended;

Yang Wendong and Li Jiacheng happened to be sitting next to each other, so Li Jiacheng said, "Mr. Yang, how about I treat you to a simple meal at noon?"

"Okay." Yang Wendong nodded;
He still gives Li Jiacheng some face. No matter what he does in the future, at least few will doubt his business ability.

At this time, a group of reporters also gathered around: "Mr. Yang, may I ask..."

Without waiting for them to ask questions, the bodyguards were already prepared and directly blocked them back. When the boss did not need an interview, they were also informed and cleared the area immediately.

Yang and Li came to a hotel room downstairs;
Yang Wendong looked at Li Jiacheng and asked, "Mr. Li, it seems that you are very confident about this subway property auction?"

"Haha, I dare not. Mr. Yang is also involved. I'm afraid I'm just here to go through the motions." Li Jiacheng laughed.

Yang Wendong also knew that this guy was talking nonsense, but he didn't say much. He asked, "Mr. Li, if the auction is successful, are you going to develop and sell all the properties?"

Li Jiacheng nodded and said, "Yes, I actually want to hold it, but my financial resources are limited and I can't do anything about it."

Yang Wendong said: "Okay, if you really win the bid, you can tell me after the development is completed, and I can buy it at the market price."

Although he was very confident about his bidding proposal, such things were not guaranteed to be 100% successful, especially since the MTR Corporation was also British-funded and backed by the Hong Kong government. The Hong Kong government probably did not want to see his capital map continue to expand in Hong Kong, so he would most likely be treated specially.

So the backup plan is that if you are not selected, you can buy it from the selected person. It may cost a little more money, but compared with the future value, it is just a drop in the bucket.

Li Jiacheng asked, "It seems that Mr. Yang is preparing to build a second Jardine Matheson."

"You can say that I won't be involved in too many sales projects." Yang Wendong replied;

When the capital scale is too large, even if you engage in residential or office building sales, it is impossible to multiply it several times a year like small capital. Instead, long-term and stable investment is the most appropriate.

At the beginning, Jardine Matheson Land also started out as a normal real estate business, but later, as its scale grew, it had to go down this path; the four major families in history and the future were actually similar.

Li Jiacheng smiled and said, "Then we have to thank Mr. Yang, otherwise we would be under a lot of pressure to compete with you."

Yang Wendong said: "I have your stocks, so we are still working together. If you have any problems with funds, or if any big projects require a lot of funds or bank loans, you can come to me."

If Li Jiacheng, Li Zhaoji and others need to raise funds again, Yang Wendong is basically 100% assured. After all, their achievements in the past life are there, and he also knows the historical fluctuations of the real estate market. As long as they don't do large-scale projects in 81, there will be no big problems.

Li Jiacheng paused and said, "Mr. Yang, I do have a project that I would like to discuss with you."

"Tell me about it." Yang Wendong became interested.

Li Jiacheng said: "This project is not in Hong Kong, but in Canada. I have observed that many Hong Kong people have immigrated to Canada over the years. However, the projects in Canada are all developed by local real estate developers and are not suitable for Chinese people to live in. So I want to try Toronto."

"Go to Canada?" Yang Wendong thought for a moment and asked, "Isn't Hong Kong enough? The return rate of the Hong Kong market is not lower than that of Canada, right?"

In the past, many people cursed Li Jiacheng, saying that he was the one who drove up the housing prices in Hong Kong. This statement is not wrong, but it is not entirely correct. In this regard, Li Jiacheng did contribute, but the other three major families in Hong Kong contributed even more than he did.
Because among the four major families in Hong Kong, Li Jiacheng is the most successful in internationalization. He began to invest his assets overseas as early as the 1970s and 1980s, and the proportion of his investment in Hong Kong has become smaller and smaller. On the other hand, the asset scale of the other three major families is not much less than that of Li Jiacheng, but their assets are almost all in Hong Kong.
Li Jiacheng replied: "The rate of return in Hong Kong is definitely higher than in Canada, but the competition here is too fierce. In Canada, there is no competition. Although the project is in Canada, it actually serves Hong Kong people, so it is not a problem to count it as a half Hong Kong project.

Moreover, the Imperial Bank of Canada has promised to give me sufficient loan budget, so my investment in Canada is not very large. Most of the money I use is from the bank, which does not affect my investment in Hong Kong very much.

"That's not bad if you look at it that way." Yang Wendong nodded and asked, "Then tell me why?"

Li Jiacheng smiled and said, "On the one hand, Mr. Yang, you are also a shareholder of Cheung Kong Holdings. On the other hand, I also hope that we can form a joint venture together. What do you think? This way, we will have a better chance of success."

"Joint venture? Okay, I will inform Zheng Zhijie and he will contact you later." Yang Wendong also agreed readily. It was not a big deal.

Li Jiacheng smiled and said, "Thank you, Mr. Yang. I will work with Mr. Zheng on the details of the cooperation."

"Yeah." Yang Wendong nodded;
After returning to the company, Yang Wendong informed Zheng Zhijie of Li Jiacheng's cooperation. Zheng Zhijie replied: "This is indeed a good idea and it is quite suitable for us. At present, our group is no longer suitable for large-scale expansion in Hong Kong, so it is also possible to consider entering the overseas market appropriately."

"Then you can go and talk to him and test the waters first." Yang Wendong added: "However, this project still serves Hong Kong customers, so the scale is still not large. If you want to expand overseas, you still have to rely on infrastructure, not real estate. Basically, all countries have very strict control over their own real estate, unless you just want to buy a house." Real estate projects are a kind of foreign exchange balancer. Some countries with foreign exchange protection will not allow foreign capital to enter the real estate market. This will easily drain away their hard-earned foreign exchange. In the past life, the mainland also had very strict control, which was also necessary;

Zheng Zhijie said: "I understand. I am also involved in the operation or construction of some container terminal projects in Southeast Asia with Hutchison Whampoa, but currently we only have the right to build. Southeast Asian countries still have to control the terminals themselves."

"This is normal. The initial dock must be a core and important location, and it is unlikely to be given to outsiders." Yang Wendong smiled and said, "We just need to do a good job of construction first, and then build docks in some secondary locations in the future. Then there may be opportunities."

This is just like the construction of highways or docks after the reform and opening up in the past. The first ones to be built must be the core cities and economic regions. Such projects are generally owned by themselves, and only a small number of Hong Kong investors can participate. Besides, Hong Kong investment is not strictly foreign investment, and it is still in their own hands.
Zheng Zhijie agreed: "Okay."

Yang Wendong asked again: "Follow up on the MTR subway station project to see if there is any progress."

"Yes, Mr. Yang." Zheng Zhijie replied;

Inside MTR Corporation:

A group of foreigners were gathered around several documents, and one of them asked, "Everyone, which one do you think is the best?"

"Need I ask? Of course it's Changxing Real Estate. They will give us cash directly so that we can build the subway immediately." said a blond foreigner.

"What about Changxing Real Estate?" the leading person said slowly.

"why?"

"You don't need to ask this. It's the opinion of a senior figure in the Hong Kong government that it's better not to give this project to Changxing Group. They have too much influence in Hong Kong."

The others looked at each other and realized that the only people who could influence the boss of the MTR Corporation were those in the Governor's Office.

"If we remove the Changxing Group, then the most suitable one is Cheung Kong Industries. Li Jiacheng means that we share 55% of the profits of the entire project, and he will also mortgage the project to lend us some funds in advance, which can be used for the initial construction of the subway project."

"This method does look good." Many people were happy. You know, the rule in Hong Kong's industry is generally that each person holds 50% after a joint venture. Li Jiacheng was really willing to break the rule and give the profit to himself.

"What about Landmark's proposal?"

"It's just so-so, 50%, and they don't even pay me in the early stages. They're so arrogant."

"That's it."

The leader thought for a moment and said, "It sounds like Cheung Kong Industries is a good choice. Although we cannot choose Changxing Group, his proposal is a bargaining chip. So, Mike, go and communicate with Cheung Kong Industries and try to get a better proposal."

"Yes, sir."

Two days later, Yang Wendong was watching the latest Hong Kong and international news when Zheng Zhijie walked in and said, "Mr. Yang, the MTR has already contacted Li Jiacheng, but we don't know what they discussed."

"It seems that MacLehose is also secretly targeting us." Yang Wendong said after putting down the newspaper.

Zheng Zhijie also said: "Yes, the proposal we put forward is definitely in the best interests of MTR. There is no reason for them to choose anyone else."

Anyone who bids for the MTR project does so to make money, but Changxing Group is not like that. Changxing Group is willing to pay to buy the land and then develop it and hold it by itself. MTR can directly obtain funds;

As for other companies, no matter how they distribute the profits, they need to wait until the project is completed before they can get their share. In the early stage, at most they can mortgage some money from the bank to give to MTR.

"It's normal, after all, we are not British, and we can't really expect the Hong Kong government to implement the principle of absolute fairness. Relative fairness is enough." Yang Wendong shook his head and said;
Many governments say they treat different races in their country fairly, but in reality no country can do so, not even the United States.
It is normal for the British Hong Kong government to favor British companies, as long as they do not openly suppress Chinese capital, which they actually dare not do.

Zheng Zhijie said: "In that case, let's implement plan B. When Li Jiacheng gets the project and completes the development, we will buy it all at once?"

"I'm afraid the British guys will also think of this trick. There may be some restrictions, such as requiring public sales, then we won't be able to buy them all." Yang Wendong said.

Zheng Zhijie said: "If that's the case, then we can probably get about half of it, and the rest can actually be acquired slowly later, but the housing prices are rising right now, so if we do that, it will cost a little more."

"The cost is not a big deal, so let's just leave it at that. We'll talk about it later when we get some of it." Yang Wendong added, "This is actually a small matter. If the Hong Kong economy recovers, the Hong Kong government will have money. Now they are not as friendly to us as before, so we have to pay proper attention in the future."

The economic crisis had just ended and the Hong Kong government still had something to ask for, so it was naturally willing to cooperate with Yang Wendong, including the industrial-to-commercial transformation of Whampoa Garden;

But things are different now. Hong Kong's real estate economy has taken off, the Hong Kong government has no shortage of money, and there is no shortage of jobs in society, so the Hong Kong government has become tougher.

Zheng Zhijie said: "There is indeed such a possibility, so it seems that we still have to make appropriate overseas investments."

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(End of this chapter)