The Pentium Era - South to North

Although Liu Ligan and others thought they had made preparations, the next situation was still much worse than they expected. Starting from the second half of 1997, China's economy entered a six-year recession. Deflation, slowing economic growth, low price levels, increasing employment pressure, and significant decline in exports.

Deflation is caused by a combination of factors. The main reason is, of course, this year's Asian financial crisis, which has reduced the purchasing power of neighboring countries and caused a sharp decline in China's product exports. At the same time, these countries' direct investment in China has also significantly reduced.

Another important reason is that since 1993, the inertial effect of the country's vigorous measures to control inflation happened at this time.

Since the reform and opening up, China's economy has generally developed along the trajectory of "growth-expansion-governance-tightening-stagnation-relaxation-expansion".

After Deng Xiaoping's speech during his southern tour in 1992, a new round of inflation appeared in China. Starting in the summer of 1993, austerity policies with the main content of suppressing inflation were implemented. Hainan was the first to bear the brunt of the stormy series of austerity policies. The media It's called a combination punch, and it made Liu Ligan, Meng Ping and the others dizzy, and they finally ended their dream of Hainan.

This round of tightening policies lasted until the end of 1996, and China's economy successfully achieved a "soft landing."

However, the implementation of any policy will have recoil and inertia. The tightening policies adopted during this period continued to have lagging effects in 1997.

In addition, the continuous advancement of the reform of state-owned enterprises has resulted in an increase in laid-off workers in some industries and enterprises. In addition, many of the township and village enterprises that were prosperous in the past few years have been gradually eliminated in the competition, resulting in the problem of absorbing the surplus rural labor force. With the weakening of capacity, the surplus rural labor force is concentrated in cities on a larger scale, resulting in increased employment pressure in cities.

For Liu Ligan and others, the direct impact is that although the reform of the housing system and the social security system have been launched, there is always a sound of thunder, and the rain keeps falling, one piece here and another here and there, and the implementation of the system There is a gap. In almost every city, housing reform is underway and welfare housing distribution is still going on.

This has made many units that carried out housing reform early and quickly regret it.

The uncertainty of housing and pension policies makes people feel uneasy and insecure. They don’t dare to spend the money they have, so they keep it in banks. Although the central bank has repeatedly lowered deposit interest rates, it is increasingly uneconomical to save money in banks. The deposits in the bank are increasing instead of decreasing. The people seem to have made up their minds. If they don't spend money, they don't spend money. I won't spend it anyway.

The superposition of these factors has directly resulted in insufficient purchasing power in society as a whole and insufficient momentum to promote economic growth.

Not to mention Liu Ligan and others, even Zhang Chen and others felt that after the second half of 1997, it seemed that the number of people buying clothes began to decrease, and the sales of specialty stores across the country dropped significantly.

The stall owners in the dynamic zone downstairs began to complain one by one that it was difficult to do business.

Several of Zhang Chen's clients who provide private customization services came to Zhang Chen directly and shyly told him that their family business was in trouble. There were no orders and even workers' wages could hardly be paid.

Zhang Chen understood that this was to terminate the consulting service between them. Although it was not allowed according to the contract, Zhang Chen still refunded the money that was due to them.

These people never appeared again, and I don’t know whether it was because they felt embarrassed, or they then returned to the ranks of common people, going to the market to buy food, haggling for every cent or two, and caring about what is fashionable or not. .

Sales of Liu Ligan's Mishihe project have dropped much more than Tan Shuzhen expected. Although they have adjusted their sales strategy, it still doesn't help.

Tan Shuzhen had to suggest starting to stop more and more projects, because if these projects continue, even if the houses are built, no one will buy them and they will remain vacant. Looking at the newspapers and TV, the financial crisis is still continuing. When No one knows what it is.

Although the news also talks about expanding domestic demand, and the central bank is also cutting interest rates and adjusting deposit reserves, the purchasing power and the people's desire and courage to spend money are like being restrained and cannot be raised.

Liu Ligan and Tan Shuzhen were panicking. Liu Ligan said, if it doesn't work, why not try lowering the price?

Tan Shuzhen and Ying Ying both objected immediately. They knew that this could not be tried. In today's climate, if you dare to lower the price, the first people to come to you to settle accounts will be those who have already bought a house. Unless you can Refund them the difference.

Ying Ying led her people and quietly conducted an investigation, and found that it was not the price at all, but people nowadays who had no desire to buy a house at all.

Those who don’t have money can’t afford it at all, while those who have money feel that there are too many uncertain factors in the future. They need to save for retirement, for medical treatment, and for children to go to school. It seems that money is spent everywhere, so how can I save this money? It's not enough. The current old house can only make do with it.

Even those who run businesses dare not spend some money. Their businesses are not dead, but they are frightened when they see others die. They feel that what they keep may be the money to save their own lives. It's not easy to sell the things produced in the factory. Money isn't as easy to make as it was in previous years, so we don't dare to spend money.

Tan Shuzhen didn't dare to spend it. It wasn't that they didn't have money, nor were they short of money. On the contrary, banks were under great pressure to lend money. In turn, they asked them if they could help with a loan, but how could they dare to lend?

In this world, there is no cost if there is no money. They are not short of money now, but have too little income. Without income, there is no profit. Without profit, how can they bear the interest on the loan?

You never know when these days will end. No matter how much money you have, you will always run out of money. Tan Shuzhen first asked Hangcheng Center to slow down the progress of the project, and then she simply gritted her teeth and stopped the project. It's better to be in the account than to become reinforced concrete and fill that huge hole.

At this point, Liu Ligan and Tan Shuzhen had a dispute. Liu Ligan believed that the project could not be stopped. It would be too ugly to stop, even if a dozen people were left to show off on the construction site every day.

Tan Shuzhen told him, brother, what matters now is how to survive, not about face. If you build a house out of concern for face, but it turns out that it cannot be sold and it is empty, wouldn't you still lose face? I had no face at that time, but after spending hundreds of millions, it would be worse to have no face now.

Besides, we stopped work voluntarily, not forced to stop work. Our company is still operating normally, and our construction site does not owe anyone a penny. No one will go to the construction site to pull up banners. What is there to be embarrassed about?

Lao Tan supported Tan Shuzhen's statement. Lao Tan and Liu Ligan said, "Gangzi, don't forget the hardships we suffered in Haicheng. Both of us are the same. We both refused to stop. As a result, the losses increased and we finally lost our ability." Clean up, if we stop as soon as we find a problem, will our life be so sad?

Many times, you don’t just accept things when they are good, but you have to accept when they are bad. It is more difficult to accept when things are bad than when they are good. Those who gamble until they lose their fortune are people who do not know how to accept when things go wrong. If he had that kind of control and would stop at the sight of trouble, how could he have ended up like that?

After listening to Lao Tan's words, Liu Ligan was a little moved. He remembered the time when he and Meng Ping went to the Macau casino. Whether it was at the slot machine or the baccarat table, didn't they just know how to take advantage of the situation? , and what Chen Qihang was most worried about about himself and Lao Meng was that he and Lao Meng simply did not have the self-control.

Liu Ligan looked at Tan Shuzhen and asked angrily: "After stopping at Hangcheng Center, do you want to stop at the 'City in the Sky' too?"

"Yes, I will." Tan Shuzhen said, "I will stop as long as necessary or if the situation does not improve."

Tan Shuzhen looked at Liu Ligan and said to him seriously: "Gangzi, have you ever thought about it? Whether it is the Hangzhou Center or the 'Sky City', they are not that urgent for us. These two projects Even if we continue, it is still too early to leave the market, and it cannot bring us immediate benefits. There will be no harm if we stop for a year.

"What we want to protect now is the 'Peach Blossom Spring' and Mishi River projects, especially the Mishi River, which can bring us direct benefits. According to Miss Cai's current situation, by the end of the year, we will propose Kunpeng Company They will definitely have no objection to a dividend distribution. Even if we cannot repay all the 500 million loan, we can still repay part of it.

"For us, this will reduce our expenses by tens of millions a year. Do you dare to use the money lying in your account to repay the loan now?"

Liu Ligan was speechless when asked by Tan Shuzhen. It is true that under the current circumstances, the annual interest on this loan is a great pressure for them, but they must take the money on the account to repay the loan. Liu Ligan didn't even dare to take out a loan, as that would only bring greater pressure. Cash was king, and the more difficult the situation, the more cash he needed to have on hand.

Using the dividends from the Mishihe project to repay this loan is indeed the best source.

"Moreover, the Mishi River project is now a barometer for us. When will the situation improve, when will the purchasing power increase, and when will our Hangzhou Center and 'Sky City' be able to resume work? The Mishi River project They will tell us." Tan Shuzhen and Liu Ligan said.

"Pole, listen to Zhenzhen, Zhenzhen is right, stop in the center of Hangzhou first."

Old Tan said on the side, Liu Ligan thought about it, and what Tan Shuzhen said was indeed correct. Moreover, he knew in his heart that once Tan Shuzhen had this idea, the center of Hangzhou would have to stop. This woman, She won't give up until she achieves her goal, unless you fall out with her.

But does Liu Ligan dare to fall out with her?

Liu Ligan stopped quietly in the center of Hangzhou.

Tan Shuzhen took a long breath. Now, the only thing that makes her feel relieved is that the second phase of their "Peach Blossom Spring" is still in operation. People will come to see it every few days, and it can still be sold after ten days and a half. One or two buildings fell.

Tan Shuzhen understood that even if there is a knife from the sky, there will always be someone who can avoid it. The ability and ability of rich people to hide are better than that of ordinary people.

Thank you Qianqian dad for your monthly ticket! Thanks for all the reading and votes! Have a good evening everyone!