Reborn Tycoon Rise

After being allowed, a reporter from Ta Kung Pao stood up and asked: "Xu Sheng, according to the information from the United States, all the funds for your acquisition of Disney came from loans from Standard Chartered Bank and Citibank. So, what is the 20 billion you have decided now?" Does the Hong Kong dollar investment plan also come from bank financing loans?

If so, will this increase the debt ratio of your company?

Also, Evergrande announced its investment plan for Tin Shui Wai a year ago, with a total investment amount of up to HK$20 billion. I wonder if you can tell me whether the investment plan in Tin Shui Wai will be affected?

Thanks! "

In today's Hong Kong, the debt problem has become a nightmare for all listed companies and shareholders. In addition to scattered industries, the four major economic pillars of Hong Kong, real estate, finance and shipping are all troubled by huge debts.

Among real estate companies, Giant Land has a total debt of HK$18 billion and a debt ratio of 70%. It has become the largest indebted company in Hong Kong and is nicknamed the "Debt King" by the media.

Among other established real estate companies, Jianian Real Estate suffered serious losses due to its aggressive expansion, and its debt scale led to a financial crisis. In March this year, its founder Peng Guozhen passed away, and the company was liquidated and bankrupt.

Several other companies, such as Hang Lung Properties Group (not Hang Lung Bank, there is no relationship between the two), seized the property development rights of 9 subway stations in one fell swoop in 1982. As a result, land prices plummeted, resulting in losses of more than 1 billion Hong Kong dollars. To this day, They are still arguing with the Hong Kong government over the matter of "paying land premium".

There are many real estate companies similar to this type, such as Great Eagle Group and Jianing Group, which are all in trouble due to huge debts.

In the financial industry, in addition to Hang Lung Bank, which was acquired by Bank of East Asia, two small banks in Hong Kong went bankrupt. In order to prevent a domino effect, the Hong Kong government promptly took over these two banks with exchange funds and assumed all the liabilities. Deposit Obligations.

As for shipping, except for Bao Yugang, who had abandoned his ship and landed a few years ago, several other shipping kings were caught off guard by the world's shipping disaster. Even Wheelock, one of the four major British-owned foreign banks, was forced to reduce its ships to reduce debt.

At this moment, Xu Zhi announced an investment plan of up to 20 billion Hong Kong dollars, which naturally aroused the concern of all reporters below. You know, the so-called economic problem now is that land prices are too low. If there is a support market of 20 billion Hong Kong dollars, then it will be extremely difficult. It may lead to a certain increase in housing prices throughout Hong Kong.

Once land prices rise, the relevant real estate companies will be temporarily out of trouble, and the financial industry will also benefit.

However, those present were also concerned about whether Xu Zhi’s 20 billion Hong Kong dollar investment was also a financial loan. This is extremely important and will attract a lot of attention. If so, such a large loan scale will inevitably affect all large-scale enterprises in Hong Kong. The bank's loan policy, and if the real estate market is in a long-term downturn, once problems arise with such a large loan, it will be a disaster for the entire Hong Kong.

Xu Zhi replied: "The main investment direction of this HK$20 billion investment plan is the construction industry, but the investment places are not in Tin Shui Wai, but in Central and the Kowloon Peninsula area.

The investment and development of Tianshuiwei has long been fully planned, and the investment is being carried out step by step according to the plan. It has nothing to do with this 20 billion investment.

As for the issue of liabilities, I can tell you clearly that the entire project will definitely be financed through banks, but the issue of debt ratio will be properly controlled and no financial risks will occur.

It just so happens that all my friends from the media are here, and I have another important news about Hutchison Whampoa to announce:

Two years ago, Hutchison Whampoa raised a total of 3 billion Hong Kong dollars in the stock market. According to the exchange rate at the time, it was converted into a total of 580 million U.S. dollars, all invested in the American industrial giant General Electric Company.

At that time, based on our investment, GE's total market value was approximately US$14 billion, and today, this number is US$30 billion! "

"Buzz..." A group of reporters below immediately started discussing among themselves in low voices.

Xu Zhi looked at the group of people below, paused for a while and then continued: "The GE stocks held by Hutchison Whampoa will be gradually cashed out within the next six months, and all the funds will be transferred back to Xiangjiang for Massive investment is coming.”

Some time ago in the United States, Xu Zhi's main focus was on the acquisition of Disney. After the acquisition was completed, Xu Zhi also contacted General Electric CEO Jack Welch and informed him that Hutchison Whampoa would sell off its holdings. of stocks.

The rise in General Electric's stock has actually just begun and will continue until 1999. If you continue to hold it, you will also receive considerable benefits in the future. But at this moment, Hong Kong is in the best period for large-scale investment. The return rate of the simplest real estate investment in the next fifteen years will not be lower than that of General Electric's stock. If the leverage financing effect of real estate is added, the income will be far more than Direct investment in General Electric, not to mention, in addition to the appreciation of real estate, the annual rent is also a considerable income.

At the meeting, as soon as Xu Zhi finished speaking, a reporter immediately asked: "Sheng Xu, did Hutchison Whampoa earn US$600 million from this investment?"

The security guard at the venue glared at the questioner who broke the rules, but saw no movement above, so he didn't ask any more questions.

Xu Zhi shook his head and said: "Not that much. After deducting the profit tax from the U.S. stock market, the final profit is estimated to be only about US$500 million."

…

"Only $500 million!"

At the venue, many people almost cried out. What does "only" US$500 million mean?

What is the concept of "$500 million"?

At the current exchange rate, US$500 million is worth at least HK$2.5 billion, and HSBC, Hong Kong’s quasi-central bank, only had a net profit of HK$2.3 billion last year.

It is simply unbelievable that one overseas investment can earn as much profit as the local emperor of Xiangjiang in one year.

"USD 500 million is just a fraction." Xu Zhi laughed to himself. In just one month, there will be a currency crisis in Hong Kong. The exchange rate of the Hong Kong dollar against the US dollar has plummeted, from 5:1 to 7.8:1.

By then, even if you do nothing, the US$1.1 billion in your hands will change from HK$5.5 billion to HK$8.58 billion, making a net profit of HK$3 billion out of thin air.

This is the charm of finance. When knowing the future, it is impossible for any industry to compare with the profits of finance.

Xu Zhi continued: "After these funds return to Hong Kong, they will be invested in various established construction projects, so this HK$20 billion is a solid investment plan. I also hope that through this investment, we can Recovering the economic losses suffered by Xiangjiang during this period can also create a large number of job opportunities and help ordinary people tide over this crisis together!"

A reporter from Oriental Daily asked: "Xu Sheng, I wonder when your 20 billion investment will officially start?"

Xu Zhidao: “It’s not that I want to keep this secret, but we don’t know yet at the moment. In addition to the Times Square project, other headquarters construction and Hutchison Whampoa’s large-scale investment require negotiation with the Hong Kong government. Only after the negotiations are completed, Subsequent plans will be announced later.”

The land in Times Square was one of the rewards that Xu Zhi got for helping Bao Yugang acquire Wharf three years ago. At that time, Xu Zhi bought the land for HK$300 million. This can be said to be an absolute preferential price, even if In this period of real estate crisis, this land is worth at least HK$800 million.

This piece of land was formerly known as Causeway Bay and Old Street Factory. The original land attribute was commercial land. You only need to apply once with the Hong Kong government to directly build commercial plazas and office buildings.

As for many other projects, such as the construction of headquarters buildings for Midea and other companies, according to Xu Zhi's plan, these buildings will be built on a piece of industrial land. According to the law, changing industrial land to commercial land requires an additional amount of land. The pen must be paid, and the amount of this fee has become the focus of disputes between Midea and other companies and the Hong Kong government, and it has not yet been resolved.