After the outbreak of the property crisis, most banks in Hong Kong began to shrink their fronts and withdraw funds from the property market, even if they did not force some companies to repay their debts immediately, but it became extremely difficult to approve loans for new projects, which actually made the whole property market even worse.

Without the support of banks, how many real estate companies can develop projects with their own funds?

Hongkong Land, Cheung Kong Asset, Sun Hung Kai Properties and others have all been affected, while Hang Lung Group has been hit the hardest among the top real estate giants in Hong Kong.

In the 70s, Chinese capital rose to prominence, with five major companies: Cheung Kong Asset, Sun Hung Kai Properties, Hopewell Holdings, New World Group and Hang Lung Properties.

The founder of Hang Lung Properties is Chan Tsang Hei, founded the company in the 60s, and raised 200 million Hong Kong dollars in 72 years, becoming an upstart in the real estate market. Investing resources in a large residential property is a very risky behavior in a commercial operation, and once something goes wrong, the whole company will be in trouble, but the risk is great, and the profit is naturally high, and the land price in Hong Kong has been rising sharply throughout the 76-82 years, which has brought Hang Lung extremely high profits.

But when there was a problem in the local real estate market, Hang Lung also paid the price.

"Chairman, this is Mr. Chan Tsang Hee, the chairman of Hang Lung Properties. Yuan Tianfan introduced.

"Xu Sheng, hello. In the top-floor office of the Hutchison Building, Xu Zhi met Chen Zengxi.

Xu Zhi smiled: "Chen Sheng, it should have been a long time since we last met. ”

"It's been almost three years. Chen Zengxi recalled that three years ago, they met at Huo Yingdong's home, and Xu Zhi was just a newcomer in the rich circle of Xiangjiang at that time, and they only chatted a few words between them.

In the following years, we also met twice at some large drinking parties, but because there was no business connection, there was no communication.

"You may be seated. Xu Zhi said with a smile.

After the three of them sat down, the secretary brought a few coffees.

Chen Zengxi said: "Xu Sheng, come here today, is there one thing to ask for?"

"Speak. Xu Zhidao.

Chan Tseng-hee said: "The real estate market in the past year has not been very good, and I have a project where there is a problem with the funds, so I hope to borrow a fund from the Bank of East Asia. ”

Xu Zhi asked, "How much?"

"HK$1.5 billion. Chen Zengxi reported a statistic.

"That's not a small amount. Xu Zhi paused and said, "Chen Sheng is here for the property project along the Hong Kong Island subway, right?"

"Yes, Xu Sheng is right. Chen Zengxi admitted.

"I've heard about this project. Xu Zhi nodded and said.

Two years ago, in 1981, when Hang Lung's investments were gradually recovering and its business was at its peak, Chan Tseng-hei's ambition to beat Hongkong Land to become the largest real estate company in Hong Kong joined forces to bid for the development rights of nine MTR stations along the Hong Kong Island MTR, including eight commercial towers and 8,000 residential properties, with a total floor area of 7 million square feet (700,000 square meters).

The location of these properties was a prime location in the middle of the business, and with the help of the subway, it was arguably the largest project in Heung Kong at that time, with a construction cost of HK$7 billion alone, and a total property value of HK$18 billion based on the housing prices at the time, and if the development went well, Hang Lung could benefit HK$4 billion.

Historically, if this project is successful, then its scale and income will exceed that of Comrade Li's Whampoa Garden a few years later.

Unfortunately, history has no ifs, in September 82, Margaret Thatcher fell in Beijing, which opened the prelude to the negotiations between China and Britain on the future of Hong Kong, the real estate market of Hong Kong fell sharply, and Hang Lung Properties also paid a heavy price.

Hang Lung's 9 subway station businesses have invested heavily in the development of the first phase in 82, but when they can sell the pre-sale properties for cash (HK's pre-sale rule is 8 months before the completion of the entire project, it is not allowed to pre-sell houses before they are built), the land price has fallen sharply, and a large number of new homes have not been cared for, which has trapped Hang Lung's funds of nearly HK$1 billion in an instant.

However, the development of the second phase is imminent, when the entire project was won, Hang Lung Group signed an agreement with the Hong Kong government and the MTR company to do what must be done within the specified time, and the time for the second phase of development is approaching, and the land premium of HK$1.82 billion must be paid to the Hong Kong government before the development.

The first phase of funds was trapped, and Hang Lung could no longer afford to pay the land price of HK$1.82 billion for the second tranche, so he had to suggest to the Hong Kong government that the land price be changed to HK$1.4 billion.

Of course, the Hong Kong government will not agree, and you ask for a reduction in the price of land when the land price falls? Then after the auction of so many land plots in the past, the land price has risen again, and I haven't seen any real estate company come out to make up the money for the Hong Kong government, right?

What's even more devastating is that at this critical moment, a Japanese bank that had signed a contract to borrow HK$1.5 billion from Hang Lung forcibly defaulted on its contract and lost tens of millions of dollars and withdrew its loan plan, which completely broke Hang Lung's capital chain.

Chen Zengxi said: "Xu Sheng, since you have decided to invest in the No. 7 berth wharf and build Huangpu Square, a large-scale real estate project that is extremely rare in the history of global commerce, you should also be very optimistic about the future of Hong Kong."

As long as the future of Heung Kong is determined, then I don't need to say much about the value of Hang Lung Group's business along the subway line, so I hope that the Bank of East Asia can lend a sum of money, and the interest will definitely not disappoint Xu Sheng!"

Xu Zhi smiled: "Let's not talk about the interest first, but I hope to be able to change the way of cooperation?"

Chen Zengxi asked, "What kind of cooperation?"

Xu Zhidao: "I hope to be able to buy the entire subway project from Chen Sheng!"

Chen Zengxi immediately changed color and said, "Xu Sheng, are you taking advantage of the fire to rob?"

"Nope. Xu Zhi shook his head and said: "It's just a business, if you agree, we will trade, if you don't agree, I won't force it." ”

"Sorry, I won't be selling this item. Chen Zengxi directly refused.

Xu Zhi shook his head with a smile and said: "Chen Sheng, as far as I know, there is still half a month to go, and it is time for you to agree with the Hong Kong government to hand over the second phase of funds, and the first phase of the project in your hand has not even been sold for 13, and there is not enough cash in your hand at all, once you can't get the money when it expires, it will be too late?"

Except for the first batch of land that has been developed, the other land was forcibly repossessed by the Hong Kong government, and Hang Lung Group not only lost a deposit of HK$400 million, but also lost more than HK$1 billion in the entire project, and at the same time, the default with the Hong Kong government was also blacklisted by the Hong Kong government.

As a result, the entire Hang Lung Group has become sluggish for a long time, and has gradually been widened by companies such as Cheung Kong and Sun Hung Kai Properties.

"I need to think about it for a while. "Chen Zengxi normally didn't refuse strongly, and if he dragged on, losing money would be a trivial matter, and more importantly, he would be blacklisted by the Hong Kong government, which would be troublesome.

Xu Zhi nodded and said, "It's okay, but you have to hurry, I will leave Xiangjiang for a while in a few days, and then I'm afraid that even if Chen Sheng wants to trade, he won't be able to trade." ”

Chen Zengxi paused for a while and asked, "What price is Xu Sheng willing to offer?"

Xu Zhidao: "Your subway project is now half completed, and the specific price needs to be judged by professionals, but I can give you a choice, Hutchison can take over the entire project without losing money, I don't know what Chen Sheng thinks?"

"Not a loss?" Chen Zengxi frowned.

"Yes, according to the current land price, Hang Lung's project has lost hundreds of millions of Hong Kong dollars, and it needs to hand over the remaining funds to the Hong Kong government according to the original price. Xu Zhi explained.

Chen Zengxi also understood, and said: "It seems that Xu Sheng is really big in this game of chess. ”

"I'm Chinese, so of course I believe in the future of Xiangjiang, don't I?" Xu Zhi said with a smile.

Chen Zengxi nodded and said: "I can't make the decision in this matter, I need to go back to convene the board of directors, no matter what the result is, I will inform Xu Sheng as soon as possible." ”

"No problem. Xu Zhi said with a smile.