The collapse of Jianing Group has an impact on the entire Xiangjiang River, second only to the scene of Margaret Thatcher's wrestling last year, with its total debt exceeding 10 billion Hong Kong dollars, and banks and financial institutions such as HSBC, Standard Chartered, Hang Seng, and Wing On have been severely impacted.

In the real estate industry, a large number of Jianing's properties and projects under construction have been seized by the court, waiting for the auction to pay the creditors.

This approach is naturally no problem, but in Xiangjiang, a large number of real estate projects are not wholly-owned, but jointly developed by several major consortia.

Jianing is currently developing dozens of real estate projects, and the bankruptcy turmoil has pitted a bunch of partners, and Hongkong Land is the largest of them.

Since Hongkong Land's tragic loss of Wharf in 1980, the top management, led by Niu Bijian and Bao Fuda, in order to prevent Hongkong Land from repeating the mistakes of Wharf, came up with the trick of JRE, each holding about 40% of the other party's shares, and the Hong Kong government changed the conditions for triggering the general takeover offer from 51% to 35% in order to protect the British consortium.

It's just that the dikes began to collapse from the inside, and after the mutual control of Yizhi, Hongkong Land's investment strategy underwent a major change, giving up the previous conservative, steady and serious style of renting and lending, and began to become aggressive, eager and speculative, and entered the market when the real estate price was extremely high, and insisted on supporting the high housing prices by itself. At the same time, he knew that the future of Xiangjiang was uncertain, but he blindly believed in the British government and bet his life on it.

Hongkong Land's senior management made serious mistakes in judging the political and economic situation in Hong Kong, and in September 82, the Iron Lady wrestled, and the land price of Hong Kong plummeted, and only the four major investment projects of Exchange Square, Miramar Hotel, Jianing Building, and Baibi Mountain Development Plan lost more than 5 billion Hong Kong dollars.

The collapse in land prices has also triggered a drop in rents and a bleak business in shopping malls, which were originally Hongkong Land's main businesses, but the return of funds has slowed down, coupled with heavy debts, Hongkong Land has had a very difficult time in the past year, and HSBC has repeatedly called for debts, almost driving Niu Bijian and Bao Fuda crazy.

However, at the most critical time, there is a problem with the exchange rate of the Hong Kong dollar, you must know that the financing channels of the entire Jardine Matheson Group are not only in Hong Kong, but also in Japan, Southeast Asia, the United Kingdom, and European banks have cooperated with the Jardine Matheson Group, and this kind of transaction is naturally based on foreign exchange borrowing.

When the Hong Kong dollar exchange rate was stable, borrowing foreign exchange was not a problem, but now the Hong Kong dollar exchange rate has plummeted, increasing the overseas liabilities of the entire group out of thin air. Although the Hong Kong government finally set a new linked exchange rate, the Hong Kong dollar was 5:1 against the US dollar when Jardine Matheson borrowed money, but now it has become 7.8:1, and the original debt of 100 million US dollars only needs to be repaid by 500 million Hong Kong dollars, but now it has become 780 million Hong Kong dollars.

The house leak happened to rain overnight, and at this most important moment, Jianing Group went bankrupt.

Bao Fuda felt that he was about to go crazy, if Jianing was just a normal bankruptcy, then it would be fine, but he couldn't imagine that the entire Jianing, a super consortium with assets of 10 billion Hong Kong dollars and a scale not lower than Hongkong Land, was all cheated?

All of Jianing's assets were seized, including several large-scale projects with companies such as Hongkong Land.

Jardine Matheson executives immediately convened an emergency meeting.

After Niu Bijian entered the conference room, the first thing he said was: "Today's meeting is not to hold anyone responsible, but to discuss a way to get our Jardine out of the whirlpool of Jianing, and at the same time, to ensure that many of our previous projects with Jianing will not suffer serious losses." ”

Everyone nodded silently, when it comes to responsibility, they naturally have all these high-level leaders, who would have thought that Jianing, one of the top ten consortiums in Xiangjiang, was actually a catastrophic scam, although even the Hong Kong government and HSBC were also deceived, but if the entire Jardine Matheson Group suffered serious losses because of this, then their management would not have good fruit to eat.

Although the shareholding of the Jardine Matheson system has been seriously dispersed, and the only major shareholder, the Keswick family, has only 10% of the shares, and the management headed by Niu Bijian has controlled the board of directors, under normal circumstances, there is no force to challenge their group, but if the entire Jardine Matheson Group incurs huge losses, all shareholders are easy to be called up by people with intentions to convene a general meeting to remove them.

At present, although Jardine Land has incurred losses, the overall reason is that the Xiangjiang market has encountered big problems, which can be regarded as a reason to dump the pot, but if there are huge losses due to Jianing's involvement, then the Keswick family, who have long been eyeing the intention of regaining control of Jardine Matheson, will take this opportunity to make trouble.

Bao Fuda said: "Ladies and gentlemen, at present, we have a total of 3 cooperation projects with Jianing Group:

The first is the rebuilding plan of the original site of Ka Wei Plastics Factory in Yuen Long, which was originally intended to build an industrial building, but in the past year, the price of industrial land has fallen too much, and the building has been stopped halfway through, and at present, this building has been seized by the Heung Kong Court, but the scale of this investment is not large, and we have invested a total of 80 million Hong Kong dollars.

The second cooperation project is the Miramar Hotel, which cost a total of 2.8 billion Hong Kong dollars on this piece of land at that time, and is currently in a state of suspension, and 400 million Hong Kong dollars have been invested in the construction, and we have invested 40% of the shares in this project, which means that we have invested 1.28 billion Hong Kong dollars at present.

The third project is the Jianing Building, which we spent almost HK$3 billion and the construction cost of HK$1.92 billion in order to buy the Hilton Hotel from Hutchison Whampoa, plus the subsequent demolition costs. Because of Jianing's problems, the building has been sealed off and cannot be sold, waiting for the auction by the creditor bank. ”

"The creditor banks of Jianing Building should be Standard Chartered Bank and Bank of East Asia, right?" asked Niu Bijian after listening carefully.

"Yes. "The loan for the purchase of the Hilton hotel came from Standard Chartered Bank, and the construction cost of the subsequent building was a loan from the Bank of East Asia. ”

"In other words, if we want to continue to sell the off-plan properties of Jianing Building, we have to convince Xu Zhi and Saides?" asked Niu Bijian.

"Suffice it to say that according to the law, as long as the creditor banks loosen their mouths, the property can return to normal operations. Bao Fuda said.

Niu Bijian pondered for a moment and said: "Now that Hongkong Land and Jardine Matheson have insufficient liquidity, we must take back Jianing Building and sell the pre-sale property as soon as possible to cash out, otherwise, with the current debt situation, our funds will not be able to last for a few months." ”

"Then we have to make an appointment with Xu Zhi and Saides, if either of them agrees, we won't be able to get back Jianing Building. Bao Fuda frowned and asked again, "Is that a covenant together, or a separation?"

Negotiating together makes it easier for the other two to form an alliance, and apart, even if you can still get in touch, it's much better.

"Let's go together!" Niubijian sighed, "It's not long now, let's solve this problem as soon as possible." ”