Now that he has arrived in Southeast Asia, Li Jianhui cannot be in Brunei alone. On the morning of the 3rd, Li Jianhui, Su Jiangting and some senior officials from the Xin Jian Department took a special plane to Xingzhou.
Li Jianhui has traveled to many countries and regions in the past few years, including the ASEAN side every year. He has also visited Malaysia and Thailand many times, but this is the first time for Li Jianhui to come to Sin Chew.
Tung Wah Hui also has quite few industries in Sin Chew. It has a petrochemical base that has been assigned to Nanhua Petrochemical, which mainly produces marine oil, a Wheelock Plaza, a Xinhui Hotel, and a Whampoa Shipping Group warehousing base, and the others are
Some banks have branches and retail stores here.
This time Li Jianhui and others came, firstly to attend the opening ceremony of Sin Chew Wheelock Plaza, and secondly to communicate with the Nanyang Society on ASEAN market development matters.
The Nanyang Society not only invited core members of the Xin Jian Society, but also the Sun Hung Society, the New Asia Society, and the Nanjiang Society to Sin Chew.
Nowadays, there are no obvious geographical differences within the major associations. The Tung Wah Association has Southeast Asian and Taiwanese members, and the same is true for the Sun Hung Association, the New Asia Association, and the Nanjiang Association.
The members of the Nanyang Society are not only members from Southeast Asia, but also members from Hong Kong and Taiwan.
What these major associations have in common is that they are all Chinese or members of Chinese descent, and they all identify themselves as descendants of Yan and Huang.
This time the Nanyang Conference invited several parties to gather together, mainly for the ASEAN market. Although the Donghua Conference is currently strong in this market, Europe, the United States, Japan and South Korea are also not weak, and competition in many industries is fierce.
The ones facing the greatest pressure are the Chinese-owned families in ASEAN, especially the Nanyang Society whose main industries are in ASEAN.
Regarding the current situation in the ASEAN market, all parties are very clear in their hearts. Regarding the cooperation mentioned in the Nanyang Conference, all parties have different attitudes.
Li Jianhui said: “Since our various industries have many and complex industries, some competition is unavoidable.
We have to see that regardless of Japan, South Korea or Europe and the United States, entering ASEAN mainly focuses on retail, home appliances, automobiles, industrial equipment and other products, and does not have much impact on the core real estate, finance, hotels and textiles of each company.
In terms of retail, each company is facing greater pressure. Whether it is Carrefour, Wal-Mart, Ito-Yokado, Lotte, Metro, etc., they are all relatively strong and compete with our retail companies in various ASEAN markets.
But the strength of our subsidiaries is not weak. Whether it is Lane Crawford, Watsons, Berjaya Department Store, Cosway, SM, Hong Leong Supermarket and other enterprises, they all have strong potential and competitiveness in ASEAN.
I think the current development of the ASEAN market is pretty good and there is no need to make any major changes."
The Nanyang Association was complaining inwardly. The Tung Wah Association was strong and many industries occupied the leading position in the ASEAN market. Naturally, there was no idea of changing the current situation.
To put it bluntly, the main reason why Xinhong, Xinya, Nanjiang and Nanyang are under increasing pressure to develop in ASEAN is that the industry is relatively simple and does not have high technological content, so it is easy to suffer losses in the face of competition.
Looking at the main industries of the conference, including the Xinjian Department, the top two are finance and real estate. Hotels are also available in every house. There is also a lack of film and television media. Retail is also in business, and there is no shortage of textiles and clothing.
When looking at the companies under its subsidiaries that have more technical content, Xinjian Group is a little better, but there are really not many other major consortiums that can be found.
Nowadays, several major consortium industries in Hong Kong have entered the ASEAN market, which has caused several companies to compete among themselves.
In fact, the pressure mentioned by the Nanyang Conference is not pressure from Europe, the United States, Japan and South Korea, but more pressure from several major financial groups in Hong Kong.
However, the Nanyang Conference obviously cannot directly mention this matter, so it specifically brought out Europe, the United States, Japan and South Korea, hoping that several major consortiums would cooperate, put aside their competition, and jointly attack European, American, Japanese and Korean companies.
Li Zhaoji said: "We all know the current specific situation of the ASEAN market. In terms of home appliances, automobiles, electronic semiconductors, etc., the main competition is between the Tung Wah Association and Europe, the United States, Japan and South Korea.
In terms of clothing, sports clothing also competes with Europe and the United States. In terms of high-end clothing, Western Europe is the mainstream. Although Xinyang clothing has developed well, it is outnumbered.
In terms of industrial equipment, Europe, the United States and Japan are basically monopolized, and each of us basically has no say.
Mr. Guo Henian mentioned that our Chinese-owned family faces great pressure from European, American, Japanese and Korean companies in the ASEAN market, which is really untenable. The only pressure is probably on retail sales.
Since everyone is gathered here today, I think it is better to be open and honest. Only in this way can we truly achieve cooperation.
At the same time, we at Sun Hung Hui hope to include the northern market in this discussion, and hope that we can cooperate to develop the northern market and avoid excessive competition in the early stage that will allow other forces to snatch away the benefits."
Zheng Yutong also spoke: "The main industries of our major associations are relatively similar. In the ASEAN market, due to the rapid expansion of Xinjian, East Asia, Daoheng, Yongan, Jiahua, and Nanlong banks in ASEAN, Nanyang Association has become the leading bank in ASEAN.
The financial market has indeed been severely squeezed.
In terms of real estate, although Tung Wah Club's subsidiaries such as Hutchison Real Estate, Chinese Real Estate, Guanghua Construction, Kowloon Construction, and Hin Leong Real Estate are relatively controlled, they mainly develop in Johor Bahru, Kuala Lumpur, Cebu, Bangkok, Bandung, and Rayong.
However, these cities are also cities with extremely rapid economic development in ASEAN, which has also squeezed the Nanyang Society real estate market to a certain extent.
In addition, real estate companies such as Sun Hung Kai, Henderson Land, Chow Hing Properties, Chinachem, Cheung Kong Holdings, Hang Lung, Xidian Properties, Shun Tak and other real estate companies have entered the ASEAN market on a large scale and expanded rapidly in major central cities, which is also squeezing the living space of Nanyang Hui industry.
I believe that we all share the same origin and should cooperate for win-win results instead of fighting among ourselves like this.
I suggest that everyone adjust their development directions and regions to avoid multiple companies competing in one place, resulting in no profit, and the same should be true for the mainland market."
Li Chaoren also made a speech, with similar opinions. He hoped that several parties could communicate and discuss their respective key development areas to avoid fierce competition among several companies in the same area. He focused on the mainland market.
When Donghuahui heard this, it was still unclear. I am afraid that these parties had already passed the agreement in private. Their purpose was only one, that is, they did not want Donghuahui to occupy most of the market in the north. As for the ASEAN market, this was even more
Mostly just excuses.
Li Jianhui said with a smile: "The ASEAN market has developed into what it is today. Let's not mention it for now. Let's talk about the northern market first. What do you think?"
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All parties have obviously made plans in advance. Let’s not mention several major industries and finance in this area. The North is more strict in this regard, so don’t think about it in the short term.
In terms of real estate, several parties hope that Donghua will be centered on the west, and Pengcheng, Shanghai, Ludao, and Beijing will jointly develop. Guangdong, Hunan, and Hubei will be developed mainly by Xinhonghui and Nanjianghui, and Fujian and Jiangxi will be developed by Nanyang Hui is developed, Jiangsu and Zhejiang are developed by Xinyahui and Xinhonghui, Shandong province is developed by Nanyanghui and Xinyahui, and the North China market is developed by Nanjianghui and Nanyanghui.
Without waiting for further comments from several parties, Li Jianhui immediately said: "We at the Donghua Association will never agree to this division. If we really don't want large-scale competition, it's not impossible.
Starting from Sichuan and Shu provinces, it includes Hubei Province, Hunan Province, Anhui Province, Jiangsu Province, Zhejiang Province, Shanghai Municipality, plus Dian Province and Guizhou Province as the key development areas of our Donghua Association, including South China, Fujian and Jiangxi, North China, Shandong Province, the northeast and northwest markets can be given to you."
These parties obviously will not agree to Li Jianhui's proposal. They know very well that the Yangtze River line is the essence of the northern market.
Several parties quarreled and even argued about market in one province, but after constant exchanges of concessions and compromises, a rough agreement was reached.
The time is tentatively set at ten years. During this period, Donghuahui Capital will mainly enter the southwest market, whether it is real estate or financing local enterprises, and few others will enter.
The market in Fujian Province, except for Ludao, is mainly dominated by capital from the Nanyang Society. As for the competition that may come from the Xianghua Society, that depends on the Nanyang Society itself.
In addition to Pengcheng, Shantou, and Baidao, Guangdong Province is entered by the Sun Hung Society. It may also face competition from the Xianghua Society. After all, Huo and Hu have a deep affection for Guangdong Province.
Shandong Province is entered by the New Asia Association, and the North China market, except for Beijing, including Tianjin, is entered by funds from the Nanjiang Association.
Tung Wah Club enters Jiangsu Province, Nanyang Club enters Zhejiang Province, New Asia Club enters Hunan and Gansu provinces, Xinhong Club enters Hubei and Anhui provinces, the northwest and northeast as well as Pengcheng, Ludao, Baidao, Shantou, and Shanghai. There are no restrictions in Beijing and several cities.
The initial ten years are set to prevent several parties from competing with each other in the northern market and providing opportunities for European, American, Japanese, Korean and other capitals to take advantage of during these ten years.
The main reason why Li Jianhui is willing to accept this agreement is that he does not want several major financial groups in Hong Kong to fight with each other, causing the overall strength to stagnate.
In fact, Japan's six major consortiums have done better in this regard. Although each of them owns various industries, they will not engage in fierce competition, let alone a price war. This is why the other side has the confidence to compete with the American consortium. reason.
Relatively speaking, the major consortiums in Xiangjiang are far behind, not only in terms of strength, but also in terms of approach.
There is a saying called internal fighting, which is quite appropriate to describe several major financial groups in Hong Kong.
That is to say, it is because the strength of the Donghua Society is too strong compared to other parties, so several parties are willing to sit down and communicate together to avoid too much competition. If Donghua Society does not suppress it, I am afraid that the bayonet will be red. , where can there be such a meeting.
Therefore, at the end of the meeting, Li Jianhui specifically said: "For our company to be competitive, this alone is not enough. We also need to have world-leading technology products so that we will not be afraid of competition.
I also hope that everyone will stop focusing on finance, real estate, film and television media, hotels and other industries, and instead enter more technology-based research and development enterprises. This is what a mature business consortium should do.
The semiconductor industry is in the ascendant. It is an extremely huge industry. Why are we not willing to invest in this industry?
What I hope is that our major Chinese-funded business consortiums will be able to compete with several major Japanese consortiums in the future.
A Donghua Association is not strong enough. When several of us have the strength to compete with the world's top consortiums, we will no longer fight alone in the face of pressure from European, American and Japanese capital.
This is also the reason why our Tung Wah Association has not targeted any of your major associations. Even the Nanyang Association, after the misunderstanding was resolved, our Tung Wah Association has also been quite restrained in its expansion.
I just hope that everyone can really think about the long-term development of their own consortium. A consortium that does not possess certain industry-leading technologies will have little influence in the world, and it is even less likely to become the world's top consortium."
Li Zhaoji, Zheng Yutong, Li Chaoren and others knew very well that since the establishment of the Donghua Society, except for a little trouble with the Far Eastern Society and the Xianghua Society, they have not targeted them much, allowing their development to be relatively stable.
It's just that these parties obviously don't have any confidence in entering the R&D industry. Over the years, they have become accustomed to making money through finance and real estate, which is easy and risk-free.
However, they also know that what Li Jianhui said is true. Just look at the Donghua Group and it will be clear that its Phoenix Group, Huaxin Group, Huahong Group, and Donghua Communications Group all rank among the top in Hong Kong in terms of market value.
At present, Sun Hung Hui is doing better. Although it cooperates more with the Texas Consortium, a California consortium, it has indeed entered many manufacturing and R&D companies, such as Sun Hung Technology Group, Kwai Tsing Electrical Appliances Group, and others.
Nanhua Automobile Company, a joint venture with Luofu.
In terms of the semiconductor industry, Sun Hung Hui is second only to Tung Wah Hui. It not only develops integrated circuits, but also monitors (screens). The chip packaging and testing workshop was put into use on the 2nd.
The other companies are much worse. The only manufacturing industry is the textile and garment industry. Judging from today's meeting, several parties still want to focus on developing the real estate industry. Even if it is only a joint venture, these companies are still flocking to it.
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Li Jianhui can only mention that the specific development depends on them. He has never hoped that these companies can provide strong help to Donghua Association when Donghua Association faces difficulties in the future.
At this meeting, several parties also reached some cooperation, first of all on the right to issue Hong Kong dollar notes. Several parties unanimously supported Xinjian Bank to become a note-issuing bank.
In addition, several major film and television media groups have reached cooperation with Jiayi, and in the future, filming will mainly use Jiayi studios.
The most important cooperation is for several parties to jointly invest in the construction of a city central business district, and the location is temporarily designated as the Shanghai Stock Exchange.
As for the specific planning and Shanghai stock market policies, it is up to Cao Wenjin, whose hometown is in Shanghai, to communicate.
Li Jianhui has no hope in the short term. The core issue is the land issue. If it is a joint venture, it is not feasible based on the current situation. The main reason is that the scale of investment is too large.
According to the plans of several parties, the total investment is likely to exceed 100 billion Hong Kong dollars. At this time, the finances of mainland cities are relatively tight, and the Shanghai Stock Exchange is no exception. The other party has provided so much funds for the joint venture.