Hong Kong, Hang Lung Group Headquarters:

"Big brother, how are you talking? Did Xu Zhi agree?" Chen Zengxi had just returned to the office, and Chen Zengtao and his nephew hurriedly ran over and asked.

Chen Zengxi didn't answer directly, lit a cigar, sat on the sofa and smoked.

Chen Zengtao saw that his face was wrong, so he didn't ask any further, but waited for an answer.

After a while, Chen Zengxi said, "Xu Zhi didn't promise a loan, but he gave us another choice?"

Chen Zengtao asked: "Does he want to buy shares?"

Chen Zengxi shook his head and said: "It's good if he buys shares, he wants to completely swallow our project." ”

"Sure enough, we are ambitious enough to carry out several large-scale projects such as No. 7 Berth Pier and Huangpu Plaza at the same time, and we have also taken a fancy to our Hang Lung subway station project. Chen Zengtao sat opposite, also depressed, the subway station project has been tied to Hang Lung, and too much energy and resources have been invested before, and now it is too reluctant to let go like this.

Chan said: "However, Xu Zhi promised me that he would not let Hang Lung lose money on this, which means that we can recover the previous investment." ”

"What is the previous loss, what we value is the future income!" Chen Zengtao said: "This means that we in Hang Lung did not shoot this subway business in the first place, does that mean?"

Chen Zengxi nodded and said, "Almost!"

"Daddy. Ronnie Chan, who had not spoken beside him, suddenly said: "Does this Xu Zhi only say that he will bear our investment funds?"

"Do you see that?" Chen Zengxi looked at his son.

Ronnie Chan said, "Xu Zhi's request is ostensibly to bear Hang Lung's investment, but it does not allow us to recoup our previous investment.

The start-up capital of the subway property project is from commercial loans, and the interest is very heavy, and it is obvious that Xu Zhi will not count the interest loss in this. ”

"Yes, that's what it means, but I can't say anything, after all, the current land price is too low, and it would be good to be able to stop losses appropriately. Chen Zengxi nodded and said.

Chen Zengtao asked, "Big brother, do you mean to promise him?"

"Do you have any other way?" Mr. Chan said.

Chen Zengtao said with a calm face: "Big brother, now that the Sino-British negotiations have begun, the British side has given up the management of Xiangjiang, and the mainland has put forward the policy of 'one country, two systems, Hong Kong people governing Hong Kong', judging from the current rumors, as long as the two sides reach a consensus, the real estate market in Xiangjiang will inevitably recover, and by then, the properties next to these subway stations are the best quality assets?"

"You're very discerning. Chen Zengxi said with a smile: "It's a pity, we Hang Lung can't wait, in another half a month, we will have to hand over the second tranche of 1.82 billion Hong Kong dollars stipulated in the agreement to the Hong Kong government, and Sumitomo Bank has defaulted and withdrawn the loan, not to mention 18.2, now even 820 million Hong Kong dollars, we Hang Lung can't take it out, if it really comes to that point, the consequences will ......." ”

"This little Japan is so hateful, it has already signed a contract, but it actually withdraws the loan. Chen Zengtao slapped the table angrily, this feeling is like finding a treasure in the desert, and he is about to go out to enjoy the blessings, but because his mouth is dry, he has to take out the treasure and exchange it for a bottle of mineral water.

"It doesn't make sense to say this now, and Sumitomo Bank has also compensated for liquidated damages according to the contract, and you can't hold you accountable. Chen Zengxi shook his head and asked his son again: "Qizong, what do you think?"

"No matter how good the future of Hong Kong is, we must have the ability to live until that time. Ronnie Chan said to Chen Zengtao again: "Uncle, the current situation is not our turn to choose, once we can't come up with 1.82 billion Hong Kong dollars after half a month, the Hong Kong government will forcibly take back the entire project, then our losses will be great, now sell this project to Xu Zhi, even if we lose a little, but it will not hurt too much, as long as we survive until the real estate recovery, there is still an opportunity for us to rise in the future." ”

"I know these truths, I'm just unwilling, these banks are idiots, and they don't have any vision at all. Chen Zengtao said with some resentment.

"It's not that they don't have vision, they can see that there are many people in the future, we can see it, and of course others can see it, but can you tell me exactly when the Sino-British negotiations will end, and when will the real estate market start to recover?" Chen Zengxi asked continuously.

"This ......" Chen Zengtao pondered for a moment, shook his head and said, "I don't know." ”

"Yes, no one knows this, so these banks don't dare to gamble, if it drags on for three years and five years, even if we Hang Lung borrows money to develop the whole project, what if we can't sell it? At that time, it will be these banks that are unlucky, and several banks have gone bankrupt and liquidated because they can't recover their loans in the past year, who wants to take risks at this time? In this situation, unless we have a lot of money in our hands, we can only ask for a safe pass. ”

Selling high and buying low is a recognized trading rule in the real estate market, but in the process of operation, there is an extremely important factor, that is, time, because all people play real estate, will not use their own funds, whether it is real estate project development, speculation, will maximize the use of bank loans, and this will involve interest issues.

If leveraged financing enters the market when the land price is low, but the market has not recovered for a long time, resulting in the collapse of the capital chain, or the time point of entry is not right, and the housing price continues to fall, it will lead to insufficient collateral and the bank will forcibly repossess the property.

Therefore, during this period of time, most people with vision, even if they know the future prospects, there is no way to enter the market on a large scale, only those who have surplus food or courage dare to play, win, the future assets are easily doubled, and if they lose, they will naturally be doomed.

Chen Zengxi took a sip of tea to moisten his throat, and then continued: "Everyone is optimistic about this subway project, but except for Hutchison, who is currently holding a huge amount of money, who has the ability to take over?"

Chen Zengtao said helplessly: "Since the eldest brother has decided, I won't say anything more!"

Chen Zengxi nodded and said, "Okay, then let's convene a board of directors, Qizong, you sort out the ins and outs of this matter, and you will open this board of directors when the time comes!"

Ronnie Chan promised, "Okay, I'll do it right away." ”

......

After three days:

Hutchison Building:

"Chairman, there is news from Hang Lung's side that the board of directors of Hang Lung has agreed to transfer the subway project to Hutchison, and in a few days, someone will be officially sent to us to negotiate and hand over the subway project to Hutchison. Ma Shimin reported.

Xu Zhi nodded and said, "Okay, although I promised not to let Hang Lung lose money, but you also have to control the specific details." ”

The biggest cost of Hang Lung Group's property projects along the subway line is actually the transaction with the Hong Kong government, that is, the auction price, which cannot be changed, Hang Lung cannot do it, and Hutchison cannot do it, this is the price that has been auctioned out, and the Hong Kong government cannot give in because the land price has fallen.

In fact, Hang Lung has not lost much in this investment, and for Hang Lung, the capital chain broken caused by the inability to sell the first phase of the property is the biggest problem, and they also have to face the upcoming second payment to the Hong Kong government, and the bank's interest cannot be paid, and no matter how promising it is in the future, it will have to go bankrupt now.

However, this is not a problem at all for Hutchison with a huge amount of money, the first phase of the property can not be sold, then all hold, and the follow-up development projects are next to the subway station in the commercial district of Hong Kong Island, such a location, the entire Xiangjiang, is also extremely rare, and when the subway network is perfected, these properties are not available for money.

"I have arranged for the best accounting and legal team to go to Hang Lung's headquarters, and I hope I will be able to take over the whole project soon. ”

Xu Zhi nodded and said, "Okay, then that's it, I'm going to go to the mainland soon, if you have any information, feel free to contact me by telegram." ”