Chapter 202 Investing in the electronics industry
The Hong Kong delegation's journey to the north was actually quite simple, with the highlight being a reception dinner the night before and a symposium afterwards. The high-level reception of the mainland is to show that the central government is very concerned about and attaches great importance to Hong Kong, and at the same time, it is an opportunity to convey the views and policies of the mainland authorities on the future of Hong Kong.
"Li Sheng, I saw that you had a good conversation at the dinner, but you were very silent just now!" Xu Shixun specially lagged a few steps behind, and when Li Xuan, who was walking behind, came up and asked him with a smile.
"I'm a junior, with little seniority, and I don't have much experience in these family and country affairs, so it's better to listen and watch more!" Li Xuan shook his head lightly and explained.
"It seems that your previous analysis is good, the mainland's stance on recovering Hong Kong is very firm, if the British are unwilling to back down, the social situation in Hong Kong will certainly be drastically affected by the two powers! Li Sheng, you are in business, the market is overseas, and the impact will not be very great, and we will be in trouble if we engage in real estate!" Xu Shixun sighed and said with a frown.
"There are also opportunities in the crisis, and real estate is an industry with obvious cyclical characteristics, and there will always be peaks and troughs. Sell more buildings at peak times, buy more land at low peaks, and believe that after the dust settles on the Sino-British negotiations, you will be able to see the clouds and fog in one breath!" Li Xuan said with a chuckle.
"Haha, the business of the Dongfang Electronics Company is booming, and you can naturally sit firmly in Diaoyutai! If doing business were really that simple, wouldn't everyone be able to make a fortune! The first few times Hong Kong's real estate industry was at a low tide, which time did it not cause countless bosses to go bankrupt and jump off buildings! If you want to make money, you have to have real skills to accurately judge where the lowest point of property prices and land prices are, and how long the turmoil will last! If you make a mistake in judgment, you will put all your money on houses and land. Once the capital chain is tight, it may go bankrupt and go bankrupt at any time!" Xu Shixun scolded with a smile.
Everyone understands the truth of buying land at a low price and selling a house at a high price. But there are only a handful of companies that can really make money from it.
"What are you two talking about behind with your eyebrows fluttering!" another laughed and slowed down.
The person with a warm smile on his face is called Hu Yingxiang, and his father is Hu Zong, the famous "taxi king" in Hong Kong. He is a rich second generation like Xu Shixun. But Hu Yingxiang is not an idle rich second generation, in 1969 his father Hu Zong retired, handing over the family business to several sons to take care of.
Hu Yingxiang resolutely decided to start his own business, and with the guarantee of his father and friends, he borrowed a loan of 15 million yuan from HSBC to establish Hopewell Industrial. The current tallest building in Hong Kong, Hopewell Center, is a commercial building that has just been developed and completed by his name.
Hu Yingxiang is also the youngest person in the Hong Kong delegation other than Li Xuan. But even he is more than twenty years older than Li Xuan, and he is forty-five years old this year.
Ordinary people start from scratch. It will take at least half a lifetime to create a career, even if there is a shadow of his father to borrow. After training step by step, it will take more than ten or twenty years to wait until you really grasp the real power. And Li Xuan only used two years, so that countless people can only look at it for the rest of their lives.
Unlike other wealthy people who invest in the mainland, Hu Yingxiang is swimming against the current and is very optimistic about the mainland's future development prospects. His subsidiary, Hopewell Industries, has just reached a cooperation agreement with the Yuezhou municipal government to build a new five-star hotel, China Hotel, in Yuezhou.
And he also brought an issue with him when he went north this time. China's road traffic is backward and inconvenient for economic development. He hopes to work with the mainland government to invest in a new highway from the Shenhai Special Zone to the city of Guangdong.
"I was discussing with Li Sheng that he shouldn't eat alone and asked him if he had any other investment opportunities. Bring us to make a fortune together!" Xu Shixun glanced at Li Xuan and smiled at Hu Yingxiang.
"This is good, your Dongfang Electronics Company is really jealous! Now the first thing my son does every day after finishing his homework is to play a game console!" Hu Yingxiang said.
"Hu Sheng, I must warn you first. Children have poor self-control, and playing games on the TV screen for a long time hurts their eyes. In case your son becomes short-sighted, don't trouble me!" Li Xuan said pretending to be stern, causing everyone to laugh.
Everyone returned to the eighteenth floor of the State Guesthouse, and they were not in a hurry to go back to their rooms. Rather, it was a rare opportunity to get together, sitting in groups and interacting with each other in the spacious conference hall.
"Xu Sheng, Hu Sheng, if you really have spare money and want to invest in the electronics industry, I really have a few good projects!" Li Xuan took out a gadget from the briefcase in the hand of the assistant behind him.
"This thing is called a Walkman, and I like to call it a Walkman! It is a portable music player developed by Sony Corporation of Japan in 1979!"
Li Xuan pressed the start button, unplugged the earbuds, and a melodious piano music immediately came from the Walkman.
He continued: "Its main function is to allow people to listen to songs anytime and anywhere, and of course people who are learning foreign languages can also use it to listen to foreign languages! Sony has sold 2 million Walkmans in less than two years since it launched its first WalkMan in 1979!
Don't look at the small size of this thing, but the price is not cheap, it can be sold for 800 Hong Kong dollars in the Hong Kong market! But although the price is expensive, fans who like to listen to songs are willing to spend their money, and it has recently begun to become popular all over the world! If anyone is interested in investing in a factory to produce this kind of walkman now. I promise it's definitely a good deal!"
"Technical support is needed to produce this thing, and the Japanese may not be willing to sell technology!" Xu Shixun asked as if he was a little tempted.
"This kind of walkman is not a very high-tech thing, the Oriental Research Institute has completed a full set of technology development, if Xu Sheng is interested, the Oriental Research Institute can provide technical support!" Li Xuan pressed another button.
"If Xu Sheng is interested, the Oriental Research Institute can provide technical support", a sentence that Li Xuan had just said was retold from the recording of the Walkman.
"This product in my hand is an experimental product developed by the Oriental Research Institute, with the functions of recording and receiving broadcasts!" Li Xuan comprehensively displayed the product in his hand, and then held the headset that had just been pulled out of the Walkman in the palm of his hand, "With the Walkman selling well in the global market, the demand for this kind of headset is also rising rapidly, and it will also be a good industry in the future!
Clear-eyed people like Hui Shixun and Hu Yingxiang have already seen that Hong Kong's real estate industry may face a low ebb in the next few years, and have begun to diversify their investments to reduce risks. Hu Yingxiang chose to go north to the mainland, while Xu Shixun seemed interested in investing in the electronics industry.
This is definitely good news for Li Xuan. In the next few years, Hong Kong's political situation was turbulent, and real estate, finance and other industries were greatly affected, while the manufacturing industry was less affected because the market was external.
If Li Xuan can follow the microcomputer in the past few years and attract a group of safe-haven capital that has withdrawn from the real estate and financial industries to join the investment in the electronics industry, he can undoubtedly further expand his influence, after all, he cannot support the entire electronics industry by himself.
"If you have time, you can visit the real yàn building of our Oriental Research Institute near CUHK after returning to Hong Kong, and many of the scientific research results of the Institute can be transferred to industry colleagues in Hong Kong!" Li Xuan put an advertisement to the Oriental Research Institute by the way.
Like the digital pager technology that Li Xuan transferred to his eldest brother before, although the Oriental Research Institute has followed up on the technology of the Walkman, it is not ready to enter the industry by itself.
"Li Sheng, you are giving everyone the opportunity to make money, the God of Wealth Li really deserves his reputation!" Hu Yingxiang said with a smile.
He is still middle-aged and accepts new things faster than others, and at a glance he feels that this Walkman project has investment value.
Li Xuan smiled, but looked at another person not far away and said: "Zhong Sheng, you are the chief member of the Executive Council and the Legislative Council, and the Hong Kong government's support for the industry is very insufficient, you should help us appeal more! For example, the recently promulgated "Water Pollution Management Ordinance" has too strict restrictions on the industry. While I support environmental governance, I also need to take into account the interests of all parties.
For example, the "Water Pollution Management Ordinance" will make the cost of leather processing and other industries rise sharply, affecting the competitiveness of Hong Kong's manufacturing industry! And the Hong Kong government has not provided support and compensation in other aspects, which is forcing Hong Kong bosses to relocate their factories. If Hong Kong's industry collapses, how can the problem of feeding two or three million industrial workers be solved!"
Whether it is from the perspective of national feelings or from practical interests, Li Xuan can't have much good impression of the British government in Hong Kong. Hong Kong is a British colony, and the British government in Hong Kong naturally wants to safeguard its colonial interests.
In the early days, the main interest of the British in Hong Kong was trade, but after the Korean War, the Hong Kong government imposed an economic blockade on the mainland under strong pressure from the United States, and Hong Kong's entrepot trade shrank sharply, and it was forced to carry out economic transformation, relying on light industries such as textiles and began to take off economically.
At this time, the main interests of the British-funded group in Hong Kong gradually shifted to real estate. Companies such as Jardine Matheson began to develop real estate, relying on the large amount of land they owned in the early days. The Hong Kong government cooperated with the inflated land prices and robbed the citizens of the wealth accumulated by the industrial prosperity of the people.
The Hong Kong government's main source of income comes from land sales, so its policy has always revolved around the real estate sector, and has not paid much attention to the industries that really laid the foundation of Hong Kong's economy. This can be clearly contrasted from the policies formulated by Singapore and Hong Kong.
Both regions have little land and many people, and since the fifties and sixties have relied on light industry to achieve economic take-off. However, since the mid-to-late 70s, Singapore has vigorously supported industrial upgrading and transformation, not only relying on its geographical advantages of being located at the throat of the Malacca route, vigorously developing the petrochemical industry, but also focusing on supporting the emerging electronics industry. However, the Hong Kong government has repeatedly vetoed a number of industrial upgrading and transformation plans put forward by think tanks such as the Hong Kong Economic Development Commission under the pretext of active non-intervention. (To be continued......)