Reborn in Hong Kong: The Tycoon Grows Up

While the tycoons were talking, the next steps were being discussed in the governor's office. Wei Yixin's pressure is much greater than that of his previous predecessors. Originally, he had nothing to do with him, but Yoder died during his term of office. He could only catch up and temporarily come to Xiangjiang to take charge of the situation.

It is useless to say more now. The Prime Minister has already issued the order; the entire UK has taken action. As a British citizen and the Governor of Hong Kong, he has no shirk of responsibility.

But today is different from the past. Hong Kong has already determined the date of its return; wealthy Chinese businessmen are counting the days. As time went by, the British Empire's influence on them gradually weakened. The last 5 billion pounds of war bonds have already made all walks of life in Hong Kong extremely dissatisfied; if you want to do this now, isn't it artificially creating conflicts?

But as a senior official of the country, he also knows what the situation of the British Empire is. Without Xiangjiang's financial support, it would be difficult to win the war with dignity. The Falkland Islands are too far away from the United Kingdom. After the war breaks out, the domestic consumption will be very large.

Britain has no other choice, otherwise it will become a laughingstock.

At this time, in the Governor's Office, Qiao Ant, the head of Xiangjiang's financial department, was reporting on the relevant situation.

This daughter-in-law of many years has finally become a mother-in-law. She has been working in the Governor's Palace since MacLehose. Not only is MacLehose's absolute confidant, Youde is also extremely dependent on him. Even if the Governor is replaced by Wei Yixin at this moment, he still remains. Trust him a lot.

Sometimes I have to admit that Joante is indeed outstanding and can definitely be regarded as a talent.

What exactly he has gone through while growing from secretary to the governor to head of the financial department; I guess only he knows best.

Wei Yixin said very seriously: "I want to know the current economic situation in Hong Kong and I need the most authentic data!"

Because of the emergence of Bao Zixuan, the world economy, especially the economic structure of Hong Kong, has undergone great changes.

Historically, there was a global stock market crash in 1987. The process that started with the collapse of the New York stock market in the United States and quickly triggered a series of sharp declines in the stock markets of major Western countries is the largest global stock market disaster to date.

In 1987, under the dual pressure of fiscal deficit and trade deficit, the dollar exchange rate weakened, inflation rose, and the price index rose to a high of 3.6%, almost double the increase of 1986. On September 4, 1987, the Federal Reserve announced that it would raise the discount rate from 5.5% to 6.0%. U.S. stocks reversed course, and an atmosphere of uneasiness began to envelope global financial markets.

With the rise of high technology, program trading began to become popular; new trading models were derived that were automatically traded by computers based on measurement patterns, and many of these models revolved around portfolio insurance. Portfolio insurance hopes to lock in the risk of a price decline for the entire portfolio. The traditional method is to buy current stocks and short futures. Once the U.S. stock market is hit by economic data, portfolio insurance investors will lock in the risk of decline by selling futures, thereby further amplifying the decline of the Dow Jones Index. With spot futures trapped in vicious interactions, the Dow Jones Industrial Average fell 108 points on October 16, with a cumulative decline of more than 9% for the whole week.

The New York Stock Exchange received a large number of selling orders as soon as it opened on Monday, October 19. Amid the chain reaction of panic, the Dow Jones Industrial Average fell to 1,738 points on Monday, a sharp drop of 508.32 points in a single day, a drop of 22.6%. This is the famous black Monday.

Affected by the plunge in U.S. stocks, the Hang Seng Index plummeted 11.1% on October 19. The Stock Exchange held an emergency meeting in the early morning of the 20th and announced a four-day temporary suspension of trading before the market opened. The announcement of the suspension was welcomed by retail investors with applause. However, the suspension of the stock market in Xiangjiang has been questioned, which undermines Xiangjiang's status as a financial center. What is even more disturbing is that there are still more than 20,000 futures contracts on the Futures Exchange that have not been closed, and a systemic crisis is imminent.

After much discussion, the government and a number of banks such as HSBC, Standard Chartered and Huayin Group quickly arranged to lend 2 billion in cash to Heung Kong Futures Guarantee Company for backup. The Banking Association subsequently announced interest rate cuts, but the market was indifferent to these rescue measures and instead viewed them as signs of a deepening crisis. On October 26, the stock market came under heavy selling pressure after it reopened, as institutional investors sought to avoid the risk of stock declines. After selling Hang Seng Index futures in the futures market to hedge, retail futures participants were forced to close their positions due to pressure from margin calls; the index plummeted 1,120.7 points to 2,241.69 points, a single-day drop of 33.3%, and Hang Seng Index futures plummeted 44%.

Later, the Association of Banks slashed interest rates again by 1% at the end of October. After the stock market crash in October, the Hong Kong stock market consolidated its position again. The Hang Seng Index fell to 1876 points on December 7. Since then, the market has stabilized. At the end of 1987, the Hang Seng Index closed at 2302 points.

The famous Black Monday still occurred in the U.S. stock market, but there were two places in the world that were not greatly affected. One is Japan. After the Plaza Accord, it seems that nothing can stop the rise of the Japanese stock market.

The other is Xiangjiang. The emergence of Heiyun Group has made Xiangjiang's economic scale more than several times that of the same period in the previous life. In addition, Hutchison Whampoa Company is a listed company in Xiangjiang; the Hang Seng Index has already exceeded 4,000 points. The collapse of the U.S. stock market seems to have little to do with Hong Kong.

At this moment, the Governor asked, it must be London that put pressure on him; Xiangjiang is a special existence, and apart from the Governor, it is difficult for other government officials to contact London. It is simply impossible to bypass the governor and report directly to the country.

Even as the head of the finance department, I don't know what orders No. 10 Downing Street issued.

But considering the current situation and the crisis facing the British Empire, it is not difficult to analyze; Xiangjiang blood transfusion is definitely needed. The domestic economic situation makes it impossible to easily defeat the Argentines. Modern war is about logistical support and overall strength; the British Empire at this time is far different from its heyday.

The Royal Navy, which had always been a warning, has long lost its courage; otherwise, it would not have been possible for Argentina to directly sink more than a dozen warships.

Your Excellency the Governor has become serious, and as a subordinate, you must pay attention to it. This is also one of the key factors that enabled Joant to remain at the core of Xiangjiang's power through three terms as governor; he could see the situation clearly and know the priorities of things.

Joante: "The current economic situation in Hong Kong can be said to be very good. Although there are some hidden crises, it will not have much impact on the overall situation."

"Last year, the GDP of the entire Hong Kong exceeded US$300 billion, and today's data will be even more eye-catching."

"But all this is mainly due to Heiyun Group. At present, Heiyun Group companies have contributed more than half of GDP. But Bao Zixuan has already focused on Fucaira, and future investment in Xiangjiang will naturally decrease; it is also unavoidable. Not facing the problem.

“It’s easy to see from the way I behave in recent years that I basically don’t stay in Hong Kong; I even live in Japan for most of the year.

"And the profits earned by Heiyun Group are basically used for the construction of Heiyun Town; on the surface it is to enhance the company's hard power, but everyone with a discerning eye knows it; it deliberately reduces profits to reduce taxes."

Xiangjiang has a population of less than 7 million and a GDP of more than 300 billion U.S. dollars; that is to say, the per capita GDP exceeds 40,000 U.S. dollars, which is definitely something to be proud of. He can even be ranked first in the world. It is not an exaggeration to describe him as extremely rich.

When he thought about returning to China, Wei Yixin's heart suddenly became heavy; in a city with such a strong economy, no one wanted to give up.

But now that Britain has declared war on Argentina, it does not dare to provoke the Chinese mainland; if it really makes the other side unhappy, it is no different than seeking death.

Xiangjiang's tax system is a classified tax system, with income tax as the main component, supplemented by behavioral taxes and property taxes. Specifically, there are two major categories: one is direct taxes, including property tax, profits tax, and salary tax; the other is indirect taxes, including inheritance tax, stamp duty, gaming tax, rates, car first registration tax, airport passenger departure tax, and commercial taxes. Registration fees, hotel room tax, tax on dutiable goods, etc.

Heiyun Group uses a large amount of its profits every year to build Heiyun Town, which is very detrimental to the UK; without profits, companies basically do not need to pay taxes. They will be evacuated in less than ten years, but they will get nothing in the future.

It makes no sense to directly stop Heiyun Group and Bao Zixuan; the normal development of the company is in full compliance with relevant laws and regulations. Being too deliberate can cause resentment.

Wei Yixin thought for a moment and said: "I want to know how much funds the financial department can mobilize at present!"

In the past, the taxes and fees that Xiangjiang paid to the United Kingdom each year were not very large, but the Xiangjiang government had to purchase a large number of expensive and unadvanced British items. It also has to pay for the daily salaries, expenses, arms purchases and all expenses of the British garrison in Hong Kong; all foreign exchange reserves must be kept in the UK.

The economic lifeline is completely controlled by British-owned foreign companies, and many senior officials in the government are also held by foreign companies. The profits earned by these companies have to pay taxes to both the United Kingdom and Hong Kong, and London can also indirectly receive taxes.

Because of the emergence of Heiyun Group and the overall good economic situation in Xiangjiang, tax revenue has naturally increased. Bao Zixuan never needed government funding to build schools for children and build roads and bridges; this attracted major companies to follow suit. Government fiscal expenditures have been greatly reduced, and there is basically no place to spend money.

Revenue has increased and expenses have decreased, leaving Xiangjiang with a large fiscal balance that is increasing every year.

Could it be that the Governor wants to use this money, but the money belongs to all the people of Xiangjiang; if it is really used by the British for war, the people of Xiangjiang will never agree.

But since you ask, you must answer truthfully!

Joante: "Currently, Hong Kong still has fiscal balances of 12 billion Hong Kong dollars, 4 billion US dollars, and 2.2 billion pounds."

Although he knew that Xiangjiang was rich, Wei Yixin was still extremely shocked after hearing the data.

I have never asked how much money is in the account before, and every time I simply look at the data. After all, I really don’t care much about these.

Wei Yixin: "If we use this money, will there be any trouble?"

Hearing this, Joante became nervous instantly.

The law stipulates that Hong Kong tax revenue can only be used for the construction of Hong Kong. Even if there is a financial surplus, it should belong to all the people of Xiangjiang and cannot be used by outsiders at all.

In such a sensitive period, if you are not careful, you will fall into an irreversible situation.

Joante said very seriously: "Your Majesty the Governor, this money must not be used unless absolutely necessary, otherwise there will be endless troubles."

"People in Xiangjiang are not stupid. They read the government's financial report every year. Strictly speaking, no matter how much money is left in the fiscal balance, it belongs to all people in Xiangjiang. If it is used rashly, it will inevitably lead to public resistance."

"Mainland China will never watch as Hong Kong's funds are siphoned off. The first Falklands War was just about selling war bonds to the people of Hong Kong."

Wei Yixin did not understand the seriousness of the matter, but the task assigned by No. 10 Downing Street must be completed. Simply relying on the people of Hong Kong to buy war bonds, you don’t have to think about it to know what the result will be.

A choice must be made now, otherwise it will be difficult to explain to the Prime Minister.

Wei Yixin: "To tell you the truth, the task given to me by London this time is 10 billion pounds; and it is only the first phase. How much funds need to be raised from Hong Kong in the future depends on the progress of the war."

"Just relying on the people of Xiangjiang to purchase voluntarily, you don't have to think about it to know what the result will be. As a subject of the empire, when the country is in crisis, you should do your best."

"Once the British Empire is defeated, you and I both know what will happen."

"Of course; using Xiangjiang's financial balance can only be the last choice; today is very critical, do you have any good ideas!"

The British really regard Xiangjiang as a fat sheep. The last 5 billion pounds just passed not long ago; now it is 10 billion again. They really think that the people of Xiangjiang are stupid. However, Wilson's worries were not unreasonable. Once the British Empire lost the war, its international status would naturally plummet. As a British person, no one wants to see this happen.

If you want to win the war, you must make preparations in the early stage; before the soldiers and horses move forward with food and grass, you must first solve the financial problem.

Joante: "The wealthy people in Hong Kong know each other very well. As long as we can deal with a few key figures, things will be much easier to handle."

"Most rich people look very rich, but they only have fixed assets. If they are asked to sell real estate and buy British treasury bonds, they will naturally not agree. Heiyun Group has very abundant cash flow, and Bao Zixuan has earned more than 100,000 yuan in Japan this time. Hundreds of billions of dollars in profits.”

"As long as we persuade the richest man Bao, all the problems will be solved. This man is very respectable. His Excellency the Governor will come over in person soon; I believe we can achieve certain results."

Wei Yixin: "A few days ago, Bao Zixuan met with the British Ambassador in Japan. Hearing what the Prime Minister wanted, the other party did not refuse, but he also did not agree. He said that he would make the final decision based on the performance of the domestic rich and nobles. "

"The royal family held dinners for celebrities from all walks of life and the super-rich; but they only sold 2 billion pounds of bonds. When they sent someone to invite Bao Zixuan, they made it clear that they hoped to meet him first."

"I was directly rejected by the other party, and my attitude was very clear; I didn't want to get involved. Even if Bao Zixuan has money, I can't just steal it from him; things are a bit difficult to handle!"

Qiao Ante thought for a moment and said: "At present, we can only do our best and listen to fate! But Bao Zixuan still needs to focus on it, otherwise the tasks assigned by London will not be completed at all!"

The task is too arduous and is beyond our capabilities; we have only raised so little funds domestically, and we cannot rely entirely on Hong Kong.