Chapter 1177 The impact of the stock market disaster
This time the United States' actions have a huge impact, especially on the Asian financial markets. Hong Kong has not escaped the fate of the stock market decline.
This time it is not just American hot money that is selling. Many investors and investment institutions are frantically placing sell orders on the market. In order to be able to trade early, they push the transaction price downward again and again. The Hang Seng Index is also affected by this and has fallen rapidly.
This is not over yet. Not long after the Hong Kong stock market opened, news came again that the US destroyer stationed in Subic Bay crossed the South China Sea and approached the coastline of Vietnam. This is not only a provocation to Vietnam, but now there is panic in the stock market.
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When Li Guangyu received the news, he felt that the American consortium was crazy. This could lead to an escalation of the dispute at any time, and it also involved the mainland. They were really not afraid of ruin if they continued to play like this.
Although the South Korean government sent a letter of inquiry to the U.S. military department, asking the U.S. military to explain why it brazenly sent patrol planes into North Korean airspace without consulting them, this did not have any effect.
North Korea's reaction this time was also quite fierce. It announced that its troops on the line of control between North and South Korea would implement level one combat readiness, and at the same time announced that it would shoot down all hostile targets in North Korea's airspace.
The Vietnamese government, which only started to implement reform and opening up to the outside world last year, did not show weakness at this time. At the press conference, it warned the United States not to violate Vietnam's sovereignty. The Vietnamese people and army have the ability to repel any enemy that violates its sovereignty.
The mainland government also condemned the U.S. warship's transit of the South China Sea as a violation of the country's sovereignty and demanded that the U.S. warship leave the South China Sea immediately. The Chinese people and military will do their best to safeguard national sovereignty from infringement.
The United States can be said to be blatant this time, just to let the whole world know about their actions, which will cause tensions in the entire East and Southeast Asia to rise sharply.
In the fifth conference hall of Wheelock Building, the executives and presidents of the Li Group in Xiangjiang were already in place, and even Cao Weiqing came here.
After sitting down, Li Guangyu said: "You must have understood the current situation. It is impossible for us to protect the Asian stock market now. The American consortium is acting very crazy now.
Hot money from all parties are afraid that the United States will choose to start a war in order to divert domestic economic and social conflicts. East and Southeast Asian stock markets can no longer provide investors with a sense of security. Investment companies and hot money from all parties have chosen to withdraw funds from stock markets in various places.
I'm afraid that until the situation on the Korean Peninsula and Vietnam calms down, it will be difficult for the stock market to rebound quickly, so we need to make some preparations for the next development."
The impact of the stock market crash is all-round, not just the losses in the stock market. The inability to resume trading this time will inevitably lead to some listed companies becoming insolvent and directly declaring bankruptcy.
At the same time, it has also caused many investors to suffer huge losses or even go bankrupt. It will also cause the local economic development to slow down and may even stagnate.
The income level of local people has declined and their purchasing power has declined. This will inevitably lead to heavy losses for the Lee Group, which is centered on Greater China and Southeast Asia. The performance of major groups will be greatly affected, especially Bentley Group, Phoenix Group, Chunghwa Electric Group, etc.
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Xiangjiang Air Transport Group will also be greatly affected. Without money, there will naturally be fewer people traveling long distances.
Du Yuemei said: "Li Sheng, we won't suffer much loss in the stock market. The market value of the stock market does not have much impact on us. We have absolute controlling rights and we don't worry about the stock price at all.
Our major groups also mortgaged the shares of Xingyu Game Group and Hengyu Supermarket Group to several major Japanese banks, with a debt of US$5 billion. This is not a big problem for us.
What we need to consider now is whether our expansion pace and development direction should be adjusted due to the impact of the global stock market crash."
The Li Group has never worried about the stock market. They have not made many loans. If it falls now, it will naturally rise back later. There are always so many shares, and they have no real losses.
Some of the shares acquired by the Li Group are high-quality stocks from various places. Although the development of various places may encounter some difficulties later due to the impact of the stock market crash, these high-quality companies are not easy to go bankrupt.
As long as the impact of this stock market crash is eliminated, the market value of these companies will naturally rebound by then, and they don't need to worry about it.
The biggest problem now is that after the stock market crash, the demand for some products in various places will decrease due to economic reasons, especially in Southeast Asia, which is an extremely important market for the Lee Group. For this reason, the production plans of some groups under the Lee Group must be
Make adjustments.
At the same time, Tianyu Bank must also pay attention to the issue of lending. After this stock market crash, some dead debts are likely to appear. Tianyu Bank must reduce its losses as much as possible.
Chen Dong spoke up and said: "The impact of this stock market crash is very large, not only Japan, South Korea, Hong Kong, Taiwan and Southeast Asia, Australia, Canada, South America, and Western Europe have also been affected. These regions are also our main markets.
Especially our Bentley Group and Phoenix Group, whose products are all luxury goods. After the stock market crash, due to income problems in various places, those who originally planned to buy had to choose to give up, so these groups must be mentally prepared.
I personally think that in such a period, we must increase our development and layout in inland and Eastern Europe to avoid a decline in the performance of our major groups."
Affected by the economic crisis, there is a high probability that the performance of many groups will decline in the fourth quarter, especially groups such as Bentley, Phoenix, Chunghwa Electric, Feiyu, Xingyu, and Jinlin Toys.
All the senior executives know that after the global stock market crash, life will not be easy for everyone. At least it will be impossible to achieve good growth in the fourth quarter of this year. Now they want the group to have good performance.
We can only develop new markets, especially those that have not been affected by the stock market crash.
Eastern Europe can't be counted on for the time being, and the door there has not yet been fully opened. At this time, they can rely on Donghua Trading Company to sell their products, and the inland is their best choice.
The inland population exceeds one billion, people's income continues to increase, and the market is gradually growing. At this time, there are no other large groups to compete with it. It is a good time for them to occupy the market.
Fujiwara Huiyin has long wanted to accelerate the expansion of the South China Electrical Appliance Chain Group in various places, especially in the mainland. Naturally she will not give up this opportunity.
After the executives stopped speaking, she spoke up: "Li Sheng, our South China Electrical Appliance Group's sales performance in the mainland has increased month by month in the past few months. The demand for home appliances in the mainland is very large. I hope to continue to expand our sales in the mainland."
The number of stores in the mainland allows our South China Electrical Appliance Chain Group to have stores in cities open to the outside world and every provincial capital city, and can cover most areas of these cities."
At present, Li's group's directly-operated stores in the mainland can only be deployed in cities open to the outside world and various provincial capitals, and other urban markets are not yet accessible.
At present, the South China Electrical Appliances Chain Group has less than 60 large and small stores in the mainland. It is far from enough to cover cities open to the outside world and major provincial capitals. To cities like Shanghai, Beijing, and Huadu, each one needs to have five or six stores.
A large store, a small community store needs more.