Chapter 580 [Real estate developers control Hong Kong]
After more than a week of inspection in the mainland, Lin Zuhui returned to Xiangjiang.
New Era Group's investments in the Mainland are adding many projects every year, and Lin Zuhui participates in every project and listens to the opinions of his subordinates.
He is very efficient. He only needs one on-site inspection of a project and he already has a clear understanding of it. Subsequent development is mainly based on reports from his subordinates. If he happens to be in a city for inspection, he will try his best to take the time to go there.
The real estate projects invested in the Mainland are all large projects, and there is no point in doing it on a small scale.
.......
In mid-May, Lin Zuhui withdrew 3.3 billion Hong Kong dollars from Matrix Capital, which meant that the initial capital of Matrix Capital was adjusted to 1.7 billion Hong Kong dollars.
After withdrawing 3.3 billion Hong Kong dollars, Lin Zuhui used another 1.7 billion Hong Kong dollars from this year's dividends, and poured 5 billion Hong Kong dollars into Hengjin Investment to purchase all American bank stocks.
This is also to avoid assets not appreciating and causing waste.
U.S. bank stocks will rise sharply from 1995 to 1998, and the return rate will be very high, possibly as high as 35% on average, such as: U.S. Bank, Dow Jones, State Street, Wells Fargo, Wachovia, etc.
The reason why financial stocks surged during this period is that from 1991 to 1994, the U.S. banking industry went through a round of major mergers and reorganization, coupled with the overall strong U.S. economy and other factors.
Last year's 10 billion was specifically invested in information technology and health care. In about a year, 15 billion Hong Kong dollars have been invested in the secondary market of the U.S. stock market. This does not include family offices, Hengjin Investment, and the large number of U.S. stocks previously invested.
These U.S. stock investments in the secondary market could bring Lin Zuhui more than HK$300 billion in book assets by the end of the 1990s. Microsoft's 2% stake alone would be worth HK$80 billion by then, and Oracle's 2% stake would also be worth HK$30 billion.
Hong Kong dollars...
As for Matrix Partners’ venture capital investment, it is believed that it will be around HK$200 billion in size by then.
Of course, if there are really US stocks with a market value of 500 billion by then, Lin Zuhui will not choose to cash out all of them. He will probably cash out over a period of nine months from July 1999 to March 2000.
Internet stocks like Amazon (temporarily) and Google do not need to cash out at all, because the bubble crisis will have less impact on them;
There is no need to cash out on stocks such as Nike, Johnson & Johnson, Coca-Cola, Procter & Gamble, etc. You can consider selling high and buying low when it comes to Lehman.
After investing another 5 billion Hong Kong dollars in US stocks this year, Lin Zuhui plans to stop investing in US stocks. Eggs cannot be put in one basket. This is his consistent policy.
Hong Kong, Hengjin Investment.
After explaining the situation with George and other senior executives, Lin Zuhui retained Wu Guoming. Recently, there have been no good opportunities in the Asia-Pacific region, and senior staff of Xiangjiang Hengjin Investment have also gone to the United States to work, which can also broaden their international horizons.
In recent years, Lin Zuhui has been slowly changing one thing, which is to increase the proportion of Chinese senior staff in the family office and Hengjin Investment. It is not that he does not trust foreigners, but he hopes to have one-third of Chinese senior staff.
This is the best combination.
"Arrange 1 billion Hong Kong dollars to short-sell the U.S. dollar and yen, and use 1 billion Hong Kong dollars as reserve to short-sell using 20 times leverage." Lin Zuhui said calmly.
He decided to short the US dollar and the yen purely on a temporary basis. The current US dollar and yen index is around 103 points, and he did not sell short when it was above 110 points some time ago. Of course, although it was a temporary decision, he was very confident. Because Lin Zuhui
We know that next year the U.S. dollar and yen index will reach a record low of 80 points, so of course we are short selling during this period.
When the U.S. dollar and yen reached 80 points, that is, in 1995, the next step was the "strong U.S. dollar", which was a prerequisite for Soros and other Wall Street capital to acquire Asian wealth.
At that time, the backhand is to buy USD/JPY, and the profit is no less than Soros, and it is still easy and does not attract hatred.
Wu Guoming said: "Okay, I'll start right away! However, if it takes up 2 billion Hong Kong dollars in cash, then boss, you will only have about 300 million Hong Kong dollars in cash left."
By implication
I mean, if Lin Zuhui has high consumption, he will be nervous.
For a long time, Lin Zuhui has put his "expenses" in Hengjin Investment (expenses of hundreds of millions), and only put some pocket money (not more than 100 million); in this way, Hengjin Investment is actually equivalent to Lin Zuhui's
"It's like a private office."
The family office is for the entire Lin family. The annual living expenses of each member is 12 million, and the whole year starts from the year the child is born. In fact, the expenses of the family office are already very large, and the family
Members receive 280 million per year, and operating expenses range from 150 to 200 million.
A yearly expenditure of more than 400 million would be a bit overwhelming if the stocks invested by the family office were not all high-return. For example, by selling high and buying low in Hong Kong blue-chip stocks, one should be able to earn 1.5 to 2 billion in income in one year.
, you can operate a family office for 4 years.
Lin Zuhui said: "It doesn't matter. One billion reserve funds can not only prepare foreign exchange to cover positions, but also can be used for emergencies. What's more, I have so many companies, so why worry!"
Wu Guoming nodded, he just reminded the boss, what if the boss has such high consumption as a private jet?
After Wu Guoming left, Lin Zuhui touched his nose and couldn't help but feel a little funny. The world's richest man actually only had hundreds of millions in cash. If the robbers heard this, they might think that Lin Zuhui was playing tricks on him!
However, Lin Zuhui opened a bank, so it didn't take time to raise and borrow cash.
........
Back at New Era Group, Lin Zuhui called Liang Zhenxun.
"Arrange to repay a loan of HK$5 billion and control liabilities to HK$15 billion."
Liang Zhenxun nodded and said with a smile on his face: "Okay, it just so happens that several loans are about to expire recently. The company currently has 10 billion Hong Kong dollars in cash on its books and has repaid 5 billion. It is still a cash-rich consortium company.
.”
In less than five months, New Era Group has withdrawn HK$8.5 billion in capital, making it a cash flow super player. This was mainly due to the peak residential sales season in the first quarter, when the company sold many large-scale housing estates.
Lin Zuhui asked: "When will the Crown land from 1994 to 1995 be auctioned?"
Talking about this, Liang Zhenxun immediately said with caution on his face: "The first batch of auctions will start on May 26. The first one is located in Luen Wo Hui, Fanling, with a base price of HK$1.8 billion, and the second one is in Organ Street, Yuen Long, with a starting price of HK$480 million.
Hong Kong dollars. However, major real estate developers seem to be interested in joining forces to acquire land, and plan to give the Hong Kong government some color."
After saying that, Liang Zhenxun looked at Lin Zuhui carefully. He knew that the boss was a little concerned about reputation now, and he definitely didn't want to participate in this kind of thing. However, now all the big real estate developers are united. If the New Era Group is absent, it will be equivalent to fighting with the entire Hong Kong.
Real estate developers are alienated.
Lin Zuhui was stunned and soon understood that unlike him, other real estate developers had other industries where they could make huge profits, and real estate was their main source of wealth.
In the past two months, the Hong Kong government has frequently cracked down on the property market and disrupted the market, so everyone felt unwilling to do so and planned to unite to show you the face of the Hong Kong government.
Once everyone joins forces, the two pieces of land may be 5% to 10% higher than the reserve price, and then they will be auctioned. After the auction, the big real estate developers will naturally develop it together and make profits together.
But as a result, the financial revenue of the Hong Kong government has been greatly reduced, and the operation of the Hong Kong government relies entirely on real estate developers to auction official land, pay land fees, pay taxes, etc.
Major real estate developers believe that this move can be described as "giving color" to the Hong Kong government. What is important is that public opinion is now leaning towards real estate developers, which is somewhat unfavorable to the Hong Kong government - they have taken the lead in speculating on land prices and have low land supply.
After a long time, Lin Zuhui said: "These people are a bit confused. Now the public opinion is in our favor. If we join hands to land the land, public opinion will immediately change direction, and we will become the public outlet. Even if we win, so what? The Hong Kong government will take advantage of public opinion to change direction."
, it is necessary to introduce more stringent countermeasures against speculation.”
Liang Zhenxun was shocked. When he thought about it carefully, it was really like this. The boss's analysis was reasonable and well-founded, but other real estate developers couldn't understand it.
"Then what should we do?" He couldn't say whether he would participate. After all, if he didn't participate, he would be "isolated" by the real estate developers.
Lin Zuhui thought for a while and said: "Anyway, it is a president-level participation, and the major real estate developers will not attend in person. In this way, Chen Bin will not go to participate, it is up to you. Remember, the project manager must not be us, anyway
If you can’t take the lead, you should just follow the crowd.”
Liang Zhenxun is only the vice president and executive director, and Chen Bin is the president and executive director, so reducing it this way has certain benefits.
Liang Zhenxun nodded and said: "Okay, I know what to do. The British-owned Swire, Development Bank of Singapore, China Overseas, Sino, and Kerry are participating this time. These have brought together various capitals. If it is suitable, I will
Reduce the shareholding ratio to the minimum, and do not compete or grab.”
Lin Zuhui nodded and said: "Yes, that's it. New Era Group has been able to slowly get rid of its absolute position in real estate development and carry out all-round development. Therefore, we don't want to earn the last copper plate."
"I understand what the boss means!" Liang Zhenxun said seriously.
He has a guess that U.S. stocks will rise many times, and U.S. office buildings and shopping malls will also become an important profit contributor, and the Canary Wharf project in London will also be successful.
In short, the group is prosperous, and it no longer competes for every inch of land and makes every penny in real estate development as before.
Finally, Lin Zuhui said: "Let the people in the investment department prepare to invest in the Japanese stock market. As for the funds, we will try to invest 5 billion Hong Kong dollars in a stock in the Japanese stock market in the second half of the year."
Liang Zhenxun has long been accustomed to his boss's investment methods, and he also admires and trusts his boss very much.
"No problem, I will definitely make financial arrangements!"
There are still more than seven months left, and New Era Group can withdraw at least 10 billion Hong Kong dollars, plus there is still about 5 billion Hong Kong dollars left on the account; therefore, even if it invests 5 billion Hong Kong dollars to buy Sony stocks, the impact will not be special