Chapter 657: Early American Planning
I am not planning to make much money from this project, but I am hoping that when the real estate crisis comes in the next two years, many of my internal construction workers or third-party construction teams will have something to do, so they won't be unemployed.
Another point is that if our team pays more attention, builds better quality houses, allows applicants to live better, and uses some technical models to ensure that greedy people do not participate or participate less, that would be a good choice.
This is what Yang Wendong can do as much as he can. As for promoting his own low-rent model, it is not the right time yet. At least the land price is very high at this time. Even if you choose a remote location, it is not cost-effective. It is better to wait until the next two economic crises and then find a way to buy land. Even if the low-rent model does not work, the land can have other value after it is purchased.
Representatives of Hong Kong Electric and Hutchison Whampoa continued to work secretly. One side promoted that Hutchison Whampoa had already controlled Hong Kong Electric, while the other side tried its best to promote that Hong Kong Electric was independent. Both sides seemed to have tacitly agreed not to show their cards directly. In this way, Hutchison Whampoa's stock market continued to rise sharply.
Under the operation of Hang Seng Bank, Standard Chartered Bank, HSBC and other joint banking groups, Hutchison Whampoa Group borrowed a huge sum of money from them. First, it was used to increase its holdings of Hong Kong Electric shares and operate other businesses. Second, it was used to buy land in a joint venture with Hong Kong Electric and then repay the debt.
What was more detrimental to Hutchison was that even though it was a joint venture, HK Electric did not contribute money, but used the shares of the joint venture as collateral to borrow money from the bank. Hutchison also had to participate in the guarantee, and even had to pay for the shortfall. It was completely under the control of Hutchison.
However, this model is also the joint venture model of many British and Chinese companies, because everyone knows that once the joint venture company is established to develop the land project, it is entirely up to the Chinese capital to have the final say. There are too many tricks in this, and the British company will inevitably lose a lot. So naturally, before the joint venture company is established, it is necessary to try to avoid risks and ensure that its own interests are not damaged;
All in all, as long as the real estate market continues to perform well, Chinese companies will still make more money under this model after the project is completed. Faced with Chinese founders who have made their own fortunes, those British bosses who are only concerned with guarding their ancestral businesses will simply not be able to compete.
Qi Dezun also knew this, and naturally agreed to it for the sake of greater profits in the end. Although doing so would bring Hutchison Whampoa heavy debt, as long as it took a few years to complete the project development, Hutchison Whampoa would be able to earn far more profits than HK Electric.
More importantly, even if such a large project cooperation results in a loss in the account, the stock market will see a surge in share prices, because the normal stock market does not only look at how much money a listed company has made today, but also how many existing projects there are, how great the potential returns are in the future, etc.
As the largest British-owned giant in Hong Kong, HK Electric owns high-quality land all over Hong Kong Island, some of which are even more valuable than Dairy Farm International. You know, Hong Kong Land spent such a huge price to acquire Dairy Farm International, but Hutchison Whampoa successfully "acquired" HK Electric in such a peaceful way, and also obtained its real estate development rights and a share of its very stable power generation business.
In the eyes of many shareholders and even stock market commentators, Qi Dezun's move is obviously much better than that of Hutchison Whampoa. The cost is much smaller, but he can get most of the profits without offending anyone. Especially now that Hutchison Whampoa's share price has fallen, many shareholders have found that they have lost money. Even though Hutchison Whampoa has no problems legally, it has been scolded by countless people, and its business reputation in the stock market has been completely overdrawn. Even if Hutchison Whampoa makes a profit in the end, it will be far less than Hutchison Whampoa.
Hutchison Whampoa's share price naturally rose even more impressively. In a very short period of time, its market value exceeded HK$60 billion, making it the second largest listed company in Hong Kong, second only to Hong Kong Land. Some stock analysts even predicted when Hutchison Whampoa's stock market value would exceed that of Hong Kong Land.
The rise of Hutchison Whampoa's stock market also brought a very good opportunity for Changxing Financial to gradually cash out. In order to cooperate with the market, TVB and Changxing Media also began to deify Qi Dezun and Hutchison Whampoa on a large scale in public opinion, claiming that he was the first British capital in Hong Kong and that Hutchison Whampoa would definitely be a top company in the future.
Yang Wendong also saw everything. Although history has changed a lot, his current status and wealth enable him to participate in and influence history.
However, compared with the achievements in Hong Kong, he cares more about the global market. After all, in the Hong Kong market, he can only make money. Whether it is the stock market or the real estate market, he can indeed make very considerable profits and stable income. But no matter how well he develops at this level, at most he will be a big Li Zhaoji in the future, not even Li Jiacheng.
Historically, Li Ka-shing's wealth was actually not much less than Li Ka-shing's, but his main wealth was in Hong Kong, while Li Ka-shing was fully committed to diversification. Therefore, too many people in the past believed that Hong Kong housing prices mainly belonged to Li Ka-shing, which was really a bit unfair to him. Among the four major families, the other families definitely had no less experience in real estate in Hong Kong than he did.
As for global business, the core of Changxing Group is still manufacturing, especially the electronics industry, which will be the only industry that can overtake others.
Time quickly entered July, and Yang Wendong came to the United States again. After owning a private jet, his travel became much more convenient. If he arranged it well, he only needed to sleep at night and rest for a few more hours on the plane to reach anywhere in the world.
After arriving in Los Angeles, Yang Wendong immediately went to Wilshire Boulevard, one of the busiest streets in Los Angeles. At this moment, in front of where Yang Wendong was, a large building was being built;
Zheng Zhijie, who is in charge of real estate business, said: "Mr. Yang, this building in front of you will become the first hotel of my Four Seasons Hotel in the United States in the next year and a half. The hotel will have a total of 828 rooms, and will also have high-end restaurants, gyms, swimming pools and other supporting facilities. Even in the United States, it will be a top-notch hotel."
"Of course, with a budget of 3600 million US dollars, it is impossible not to build a luxurious one." Yang Wendong said with a smile. He was well aware of the huge budget of this hotel. In this era, the US dollar is still very valuable. The total cost of the two World Trade Center buildings in downtown New York was only 7 million US dollars. These are two of the world's top super buildings.
The scale of the Four Seasons Hotel need not be compared with that of the World Trade Center, but the budget of $3600 million is still far larger than that of its peers;
This is also because the Four Seasons Hotel is positioned as a super high-end luxury hotel. Since the traditional five-star market positioning has long been taken away by Hilton and InterContinental, it can only compete in a different market. The second reason is that it knows the future and is optimistic about the future economy of Los Angeles. Both Silicon Valley and Hollywood will be at their peak in the next few decades, which will naturally drive the entire Los Angeles service industry.
Zheng Zhijie said: "Yes, this is also thanks to the financial support of Citibank. Otherwise, it would be very difficult for us to come up with so much money. Now that Watsons' Red Bull has begun large-scale promotion in the United States, the demand for funds is still very high."
"Well, the promotion over there is a project that cannot be mortgaged, so you can only use your own funds." Yang Wendong nodded and said, "So if you are doing a property project in the United States, you can use a loan if you can. As long as there is a mortgage project, it doesn't matter even if you lose money in the future, including the property over there at Best Buy."
Although many of his projects made a lot of US dollars in the United States throughout the 60s, they did not transfer them back to Hong Kong at the beginning, just to ensure that there would be enough US dollars when needed in the future;
By the 70s, many of its businesses began investing in the United States, especially in the terminal retail industry targeting the . market. Because so much money was involved, the previously reserved funds were insufficient, so it was natural to use as much bank funds as possible, which was also a business norm.
"Okay, I understand." Zheng Zhijie nodded.
Yang Wendong added: "These past two years have been the most difficult years for us in the United States. When our investment in the United States pays off, especially in the electronics industry, our financial situation will be much better. At that time, it will be much more convenient."
Best Buy's investment is also huge, because it needs to build terminal retail malls in multiple cities. Even though they are all located in the suburbs, the number is relatively large. However, in terms of returns, it is still losing money. The purpose of Best Buy's investment is to see the explosion of the electronics industry in the future, but the time has not come yet. However, it is precisely because the time has not come that various US local capitals will not be interested in this market, which gives Best Buy an opportunity.
Once Best Buy succeeds in its early large-scale investments and occupies many cities, it will be too late for other capital to enter the market. It will have a long-term stable income market. Even if the online shopping era comes in the future, it will be difficult to succeed with the efficiency of American express delivery, especially since Best Buy is doing its best to provide after-sales service while building its business. This is its biggest moat.
Another point is naturally the game arcade market. This market exploded earlier than the personal computer market. Although this market is far behind the various electronic giant industries of the future, it is easy to form a monopoly in the early stage, which can also provide huge profits. In the short term, it is not even worse than the real estate market in Hong Kong.
Zheng Zhijie also understood his boss's many investments in the United States and said with a smile, "I understand. It's the same as when we were in Hong Kong ten years ago. At that time, our real estate investment in Hong Kong was also similar."
"Yes, but ten years have passed in the blink of an eye. Time flies." Yang Wendong also had some feelings about the past, and said, "There's nothing interesting here. Let's go to Intel together. There have been new developments there."
PS: Please give me a monthly ticket
(End of this chapter)
I am not planning to make much money from this project, but I am hoping that when the real estate crisis comes in the next two years, many of my internal construction workers or third-party construction teams will have something to do, so they won't be unemployed.
Another point is that if our team pays more attention, builds better quality houses, allows applicants to live better, and uses some technical models to ensure that greedy people do not participate or participate less, that would be a good choice.
This is what Yang Wendong can do as much as he can. As for promoting his own low-rent model, it is not the right time yet. At least the land price is very high at this time. Even if you choose a remote location, it is not cost-effective. It is better to wait until the next two economic crises and then find a way to buy land. Even if the low-rent model does not work, the land can have other value after it is purchased.
Representatives of Hong Kong Electric and Hutchison Whampoa continued to work secretly. One side promoted that Hutchison Whampoa had already controlled Hong Kong Electric, while the other side tried its best to promote that Hong Kong Electric was independent. Both sides seemed to have tacitly agreed not to show their cards directly. In this way, Hutchison Whampoa's stock market continued to rise sharply.
Under the operation of Hang Seng Bank, Standard Chartered Bank, HSBC and other joint banking groups, Hutchison Whampoa Group borrowed a huge sum of money from them. First, it was used to increase its holdings of Hong Kong Electric shares and operate other businesses. Second, it was used to buy land in a joint venture with Hong Kong Electric and then repay the debt.
What was more detrimental to Hutchison was that even though it was a joint venture, HK Electric did not contribute money, but used the shares of the joint venture as collateral to borrow money from the bank. Hutchison also had to participate in the guarantee, and even had to pay for the shortfall. It was completely under the control of Hutchison.
However, this model is also the joint venture model of many British and Chinese companies, because everyone knows that once the joint venture company is established to develop the land project, it is entirely up to the Chinese capital to have the final say. There are too many tricks in this, and the British company will inevitably lose a lot. So naturally, before the joint venture company is established, it is necessary to try to avoid risks and ensure that its own interests are not damaged;
All in all, as long as the real estate market continues to perform well, Chinese companies will still make more money under this model after the project is completed. Faced with Chinese founders who have made their own fortunes, those British bosses who are only concerned with guarding their ancestral businesses will simply not be able to compete.
Qi Dezun also knew this, and naturally agreed to it for the sake of greater profits in the end. Although doing so would bring Hutchison Whampoa heavy debt, as long as it took a few years to complete the project development, Hutchison Whampoa would be able to earn far more profits than HK Electric.
More importantly, even if such a large project cooperation results in a loss in the account, the stock market will see a surge in share prices, because the normal stock market does not only look at how much money a listed company has made today, but also how many existing projects there are, how great the potential returns are in the future, etc.
As the largest British-owned giant in Hong Kong, HK Electric owns high-quality land all over Hong Kong Island, some of which are even more valuable than Dairy Farm International. You know, Hong Kong Land spent such a huge price to acquire Dairy Farm International, but Hutchison Whampoa successfully "acquired" HK Electric in such a peaceful way, and also obtained its real estate development rights and a share of its very stable power generation business.
In the eyes of many shareholders and even stock market commentators, Qi Dezun's move is obviously much better than that of Hutchison Whampoa. The cost is much smaller, but he can get most of the profits without offending anyone. Especially now that Hutchison Whampoa's share price has fallen, many shareholders have found that they have lost money. Even though Hutchison Whampoa has no problems legally, it has been scolded by countless people, and its business reputation in the stock market has been completely overdrawn. Even if Hutchison Whampoa makes a profit in the end, it will be far less than Hutchison Whampoa.
Hutchison Whampoa's share price naturally rose even more impressively. In a very short period of time, its market value exceeded HK$60 billion, making it the second largest listed company in Hong Kong, second only to Hong Kong Land. Some stock analysts even predicted when Hutchison Whampoa's stock market value would exceed that of Hong Kong Land.
The rise of Hutchison Whampoa's stock market also brought a very good opportunity for Changxing Financial to gradually cash out. In order to cooperate with the market, TVB and Changxing Media also began to deify Qi Dezun and Hutchison Whampoa on a large scale in public opinion, claiming that he was the first British capital in Hong Kong and that Hutchison Whampoa would definitely be a top company in the future.
Yang Wendong also saw everything. Although history has changed a lot, his current status and wealth enable him to participate in and influence history.
However, compared with the achievements in Hong Kong, he cares more about the global market. After all, in the Hong Kong market, he can only make money. Whether it is the stock market or the real estate market, he can indeed make very considerable profits and stable income. But no matter how well he develops at this level, at most he will be a big Li Zhaoji in the future, not even Li Jiacheng.
Historically, Li Ka-shing's wealth was actually not much less than Li Ka-shing's, but his main wealth was in Hong Kong, while Li Ka-shing was fully committed to diversification. Therefore, too many people in the past believed that Hong Kong housing prices mainly belonged to Li Ka-shing, which was really a bit unfair to him. Among the four major families, the other families definitely had no less experience in real estate in Hong Kong than he did.
As for global business, the core of Changxing Group is still manufacturing, especially the electronics industry, which will be the only industry that can overtake others.
Time quickly entered July, and Yang Wendong came to the United States again. After owning a private jet, his travel became much more convenient. If he arranged it well, he only needed to sleep at night and rest for a few more hours on the plane to reach anywhere in the world.
After arriving in Los Angeles, Yang Wendong immediately went to Wilshire Boulevard, one of the busiest streets in Los Angeles. At this moment, in front of where Yang Wendong was, a large building was being built;
Zheng Zhijie, who is in charge of real estate business, said: "Mr. Yang, this building in front of you will become the first hotel of my Four Seasons Hotel in the United States in the next year and a half. The hotel will have a total of 828 rooms, and will also have high-end restaurants, gyms, swimming pools and other supporting facilities. Even in the United States, it will be a top-notch hotel."
"Of course, with a budget of 3600 million US dollars, it is impossible not to build a luxurious one." Yang Wendong said with a smile. He was well aware of the huge budget of this hotel. In this era, the US dollar is still very valuable. The total cost of the two World Trade Center buildings in downtown New York was only 7 million US dollars. These are two of the world's top super buildings.
The scale of the Four Seasons Hotel need not be compared with that of the World Trade Center, but the budget of $3600 million is still far larger than that of its peers;
This is also because the Four Seasons Hotel is positioned as a super high-end luxury hotel. Since the traditional five-star market positioning has long been taken away by Hilton and InterContinental, it can only compete in a different market. The second reason is that it knows the future and is optimistic about the future economy of Los Angeles. Both Silicon Valley and Hollywood will be at their peak in the next few decades, which will naturally drive the entire Los Angeles service industry.
Zheng Zhijie said: "Yes, this is also thanks to the financial support of Citibank. Otherwise, it would be very difficult for us to come up with so much money. Now that Watsons' Red Bull has begun large-scale promotion in the United States, the demand for funds is still very high."
"Well, the promotion over there is a project that cannot be mortgaged, so you can only use your own funds." Yang Wendong nodded and said, "So if you are doing a property project in the United States, you can use a loan if you can. As long as there is a mortgage project, it doesn't matter even if you lose money in the future, including the property over there at Best Buy."
Although many of his projects made a lot of US dollars in the United States throughout the 60s, they did not transfer them back to Hong Kong at the beginning, just to ensure that there would be enough US dollars when needed in the future;
By the 70s, many of its businesses began investing in the United States, especially in the terminal retail industry targeting the . market. Because so much money was involved, the previously reserved funds were insufficient, so it was natural to use as much bank funds as possible, which was also a business norm.
"Okay, I understand." Zheng Zhijie nodded.
Yang Wendong added: "These past two years have been the most difficult years for us in the United States. When our investment in the United States pays off, especially in the electronics industry, our financial situation will be much better. At that time, it will be much more convenient."
Best Buy's investment is also huge, because it needs to build terminal retail malls in multiple cities. Even though they are all located in the suburbs, the number is relatively large. However, in terms of returns, it is still losing money. The purpose of Best Buy's investment is to see the explosion of the electronics industry in the future, but the time has not come yet. However, it is precisely because the time has not come that various US local capitals will not be interested in this market, which gives Best Buy an opportunity.
Once Best Buy succeeds in its early large-scale investments and occupies many cities, it will be too late for other capital to enter the market. It will have a long-term stable income market. Even if the online shopping era comes in the future, it will be difficult to succeed with the efficiency of American express delivery, especially since Best Buy is doing its best to provide after-sales service while building its business. This is its biggest moat.
Another point is naturally the game arcade market. This market exploded earlier than the personal computer market. Although this market is far behind the various electronic giant industries of the future, it is easy to form a monopoly in the early stage, which can also provide huge profits. In the short term, it is not even worse than the real estate market in Hong Kong.
Zheng Zhijie also understood his boss's many investments in the United States and said with a smile, "I understand. It's the same as when we were in Hong Kong ten years ago. At that time, our real estate investment in Hong Kong was also similar."
"Yes, but ten years have passed in the blink of an eye. Time flies." Yang Wendong also had some feelings about the past, and said, "There's nothing interesting here. Let's go to Intel together. There have been new developments there."
PS: Please give me a monthly ticket
(End of this chapter)
