Although the first cooperation forum has ended, its impact has just begun. All parties are evaluating Xiangjiang Capital's large-scale entry into the ASEAN market.
In particular, the Japanese consortium, which regards the Southeast Asian market as its own back garden, sees Heung Kong Capital making troubles and competing with them in multiple industries. This makes them unable to sit still as they are bent on attacking the North American market.
In order to stabilize its own market, the Japanese government and Japanese companies have taken frequent actions, and a large-scale visit to ASEAN by Japanese political and business circles is brewing.
The U.S. consortium also did not remain silent. On the third day after the meeting, news that the U.S. political and business circles were about to visit South Korea spread around the world.
And more content has come out, including cooperation in electronic semiconductor, automobile, shipbuilding, chemical and other projects. The purpose is obviously to use South Korea to suppress Japan and the Hong Kong Consortium.
Western European capital is also unwilling to be left alone, and its industries such as Rose Consortium, Juncker Consortium, and BNP Paribas Consortium have also entered ASEAN on a large scale, especially the retail, automobile, oil, and financial industries.
The butterfly effect is very scary, and Li Jianhui doesn't know how much impact it will have on the north. For the benefit of the Xin Jian Department, he had to do this.
After the forum, he, Su Jiangting and many senior officials from the Xin Jian Department visited Kuala Lumpur Wheelock Plaza and the construction of Tanjung Pelepas Port.
As for the development of Nanlong Holdings and Chenggong Group, Li Jianhui only listened to Li Zaiwei's report and had no plans to meet with the top executives of the two major groups.
Compared with the high profile in Malay, Li Jianhui returned to Hong Kong with a much lower profile. Throughout May, he just went to and from get off work on time and did not make any big moves.
The assassination of the Pope and the assassination of the President of Bangladesh, which have attracted attention from all over the world this month, have caused Li Jianhui to take stricter protection for the safety of his family.
On the first day of June, due to the sluggish stock market in Hong Kong and the situation upstairs, Tung Wah Club held a joint meeting of senior executives of its real estate and banking companies in the 204 conference room of Xinhui Hotel to discuss the development in the next few years.
In the past, members of the Tung Wah Association basically discussed and made decisions with each other. This is the first time that the Tung Wah Association has held such a meeting where senior executives from various companies sit together to discuss, and it also marks a further step in the relationship between Tung Wah Association companies.
Today is the first time for such a meeting, but it will definitely not be the last. There will be more such joint meetings in the future, such as film and television media, electronic semiconductors, Internet, etc.
Many senior executives from the Xinjian Department came here. The presidents, executive vice presidents, and general managers of the administration department of Wheelock Land, Hutchison Real Estate, Xinjian Real Estate, and Xinjian Bank all came to the venue. The general manager of Xinjian Investment was also present.
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Senior executives from Chinese Real Estate, Guanghua Construction, Kowloon Construction, Xinhui Holdings, Guanghua Holdings, Bank of East Asia, Dao Heng Bank, Wing On Bank, Haojiang Holdings and other participating companies are already here.
With the arrival of Li Jianhui, Li Guobao, Lei Juekun and others, the meeting related to the development of Tung Wah Club in Hong Kong real estate and finance in the next few years officially kicked off.
As the helmsman of the Tung Wah Association, Li Jianhui first spoke: "Since the announcement of the British Ministry of Defense during the Spring Festival, Xiangjiang real estate and the stock market have been in decline.
Although we once rescued the market in order to stabilize the Hong Kong economy and the Hong Kong dollar exchange rate, we still could not change the downward trend of the property market and stock market.
In the past May, many developers on the market have been unable to bear the burden. Whether in Kowloon or the New Territories, housing prices have dropped significantly, and in some places they have even been cut in half.
The stock market is not much better, because the chain reaction of the property market has directly affected banks, and the two pillar industries of our stock market are real estate and finance.
As a result, the Hang Seng Index fell below 1,000 points, the East Asia Index also fell below 700 points, and the Kowloon Index fell below 500 points.
There is nothing we can do about the overall situation, which is a game between big countries, but in terms of our own corporate development, we need to make some adjustments to try to avoid ourselves suffering too much losses.
I invite everyone to sit together today because I hope to brainstorm and formulate a feasible plan for development in the next few years."
The senior management of Defeng Real Estate was relatively calm at the scene. The property market plummeted, causing the stock prices of these real estate companies to plummet. As the banks that mainly provide real estate loans, they also did not escape, and their stock prices also fell sharply.
As of the end of last month, HSBC's market value had plummeted by nearly HK$20 billion and is currently hovering around HK$50 billion. Standard Chartered is not much better, with a market value of less than HK$30 billion.
On the contrary, it is Huihong Group. Because it is not a real estate or financial company, and its main market is not in Hong Kong, and the new game released in May was a hit, its market value exceeded 80 billion Hong Kong dollars, and it has firmly established itself as the largest company in Hong Kong.
The throne of listed companies.
As the second person in Xiangjiang, Li Guobao saw everyone's attitude and said with a smile: "Although everyone was caught off guard because of the black swan that flew in at the beginning of the year, we don't have to be too depressed.
Because of some reminders from Jianhui last year, our real estate development projects have basically been sold out and funds have been withdrawn. The halving of the property market will not have a big impact on us.
On the bank side, I remember that since last year, Xinjian Bank has strictly restricted the inflow of funds into real estate. Although our Bank of East Asia's restriction threshold is not as good as that of Xinjian Bank, the current pressure on bad debts is not great, and it will not affect the development of Bank of East Asia.
We are sitting here together today. First, we want to understand the current specific situation of each company, especially the bad debt situation of our banks.
The second is the development of real estate and banks in the next few years. The current situation forces us to go out."
After Li Guobao finished speaking, major banks reported on some of their current situations.
Although the Tseung Kwan O incident occurred in Xinjian Bank, its bad debts are currently the lowest among the four major banks. The amount of bad debts of Xiangjiang Branch is less than 20 million.
Next is the Bank of East Asia. Although it has more money than Xinjian Bank, it is still less than 50 million.
On the contrary, there are two major banks, Daoheng and Yongan. These two banks did not raise the threshold much last year, and their loans to real estate companies and real estate speculators were quite large.
As housing prices in many areas have halved, many real estate speculators simply cannot afford to pay interest, resulting in a large number of bad debts.
Even several customers of these two banks who were engaged in real estate development fled Xiangjiang last month, and their loans became dead debts. The two major banks suffered considerable losses.
At present, the bad debts of Dao Heng Bank's Xiangjiang Branch are as high as HK$160 million. Wing On Bank's strength is far inferior to that of the three major banks, and its bad debts are also as high as HK$120 million.
Fortunately, this news has not spread yet, and whether it is Tao Heng or Yong An, Tung Wah Club is behind the scenes, otherwise the stock prices of the two banks will plummet again.
If this is all, it will not cause any concern. The key is that the current property market collapse has just begun, and bad debts will probably continue to rise in the future.