Chapter 132: Throwing money and enclosing land
Pudong, a name that will surely leave a strong mark in the history of China's reform and opening up, is a benchmark area that completely activates the economy of Shanghai and the Yangtze River Delta.
Although Pudong can be said to be famous all over the world in the future, it is still a poor country where birds don't.
Compared with the prosperity on the other side, this can only be regarded as a poor area at the "junction of urban and rural areas", otherwise the citizens of Shanghai would not have such a sentence: I would rather have a bed in Puxi than a room in Pudong.
However, no one expected that this well-known "shantytown" was about to take off.
Since the mid-80s, the state has been conducting research on Pudong, and the intention to develop Pudong has become obvious. However, the idea is good, but the implementation is difficult, and after several years of slow preparation, there is finally a clear result this year.
In April 1990, Premier Li announced at the celebration of the fifth anniversary of the founding of Shanghai Volkswagen that the state had agreed to speed up the development of Pudong and implement the policy of economic and technological development zones and certain special economic zones in Pudong.
This event marks the official opening of Pudong's development and opening up, and a new economic myth miracle will soon be presented to everyone.
However, although the state has made this clear, Rome was not built in a day after all, and there is still a long way to go.
Even in the eyes of some people, there are countless variables in this, and no one dares to put a heavy bet on it now. However, just when everyone is cowering and afraid to invest in development, some people have begun to make great strides forward.
Half a year after the state announced the development of Pudong, many people seem to have slowly forgotten about it, but one news completely detonated the matter.
Cheung Kong Asset, Wheelock, Suning Real Estate and SS Financial Holdings jointly announced in Hong Kong that they would jointly invest 4 billion yuan to establish a Chinese investment and development company. The newly established Chinese Investment and Development Company will take the lead in responding to the policies of the mainland government and entering Shanghai to invest in the development of the Pudong area.
Shortly after this announcement, the Hong Kong Stock Exchange informed the market that the "ship king" Bao Yugang and Su Zhenbang each held a 5% stake in Cheung Kong Holdings, and Li Jiacheng and Su Zhenbang each held a 5% stake in Wheelock.
This announcement undoubtedly had an almost earthquake-like impact on the entire Hong Kong stock market, and the stock prices of Cheung Kong and Wheelock rose sharply for a while.
However, compared with the reaction of shareholders, several giants in Hong Kong have felt another taste.
Which of these tycoons is not a human spirit, they can naturally see that Li Jiacheng, Bao Yugang and the newly rising Suning Real Estate have formed an alliance, and they will present a common situation in mainland investment.
In fact, many Hong Kong people, including these Hong Kong tycoons, want to know more about what this Su Zhenbang is sacred. You must know that Su Zhenbang now owns 5% of the shares of Cheung Kong and Wheelock, and he can become a few Hong Kong billionaires by relying on these two alone.
However, when Su Zhenbang's many identities were exposed, everyone's jaws dropped.
Soon, "Sing Tao Daily" took the lead in exclusively reporting Su Zhenbang's identity - a mainland entrepreneur, who owns Suning Electric, Suning Real Estate, Suning Beijian, ANTA Sporting Goods Company and many other companies.
If Su Zhenbang's enterprises are only in the mainland, the people of Hong Kong will not be so surprised.
However, these companies are now well-known in Hong Kong, and many of them are closely related to the daily lives of Hong Kong people.
You know, now Suning Electric has completely entered the Hong Kong home appliance retail industry, ANTA is in the Hong Kong market with Nike, Adidas three parts of the world, Suning Beijian has also become Hong Kong's best-selling health care products, Suning real estate in Hong Kong is even more famous.
However, because none of these companies are listed, the specific value is not very clear. However, some media reports say that with the excellent performance of these companies in mainland China and Hong Kong, once listed, they will usher in a sharp rise, and their market value will be extremely gratifying.
Some media even broke out that Su Zhenbang's net worth has already exceeded 10 billion, and he can definitely be ranked among the top ten richest people in Hong Kong.
For a while, Hong Kong people who worship wealth began to talk about a mainland tycoon named "Su Zhenbang" after tea and dinner.
Regarding this newly emerged Su Zhenbang, the wealthy people in Xiangjiang have different opinions on this, some pay attention to it, and many ignore it.
The "fourth uncle" Li Zhaoji has a heart for this mainland tycoon who has recently become famous in Xiangjiang, because he sees a big business opportunity.
"Jewelry King" Zheng Yutong didn't pay much attention, after all, he hadn't even seen this person.
"Gambling King" He Hongshen is basically indifferent to this, the industry he is involved in is too far away from the industry reported in the newspaper Su Zhenbang is involved, but he doesn't know that the two will be close soon.
However, compared to other Hong Kong tycoons, there is one person who is quite concerned about this.
As the richest Hong Kong tycoon with the closest relationship with the mainland, Huo Yingdong looked at the newspaper report about Su Zhenbang, and couldn't help but secretly say that Li Jiacheng and Bao Yugang had a good ally.
Maybe others don't know Su Zhenbang, but Huo Yingdong knows that this person is famous in the mainland. Moreover, Huo Yingdong also knows a little about the extraordinary relationship between Su Zhenbang and the high-level, which he values very much.
Not to mention what these Hong Kong tycoons say about this matter, the newly established Chinese investment and development has already begun to enter the state of work.
The first step of Chinese investment is very simple - in Pudong staking land, the job is so simple that you just need to keep throwing money.
However, there is also a level limit to this money, and it is not a random money enclosure, only a prime location or a future prime location is worth throwing money and enclosure.
This work is obviously difficult for Su Chenyu, but he knows which places in Pudong have development value, and some places must be circled.
If you want to find the most valuable place in Pudong, there is no doubt that Lujiazui is the first to be recommended.
According to the normal development steps of Pudong, then this place will become one of the major financial centers of Shanghai and even the whole country.
These are not the factors that make people happy, and the most important thing is that the land of this place is really valuable in the future generations. Taking advantage of the good time when the price of land has not risen wildly, Su Chenyu feels sorry for himself if he doesn't take half of Lujiazui.
At first, when the Chinese Investment and Development Company approached the Shanghai municipal government, it only said that it wanted to buy land in the Pudong area for development. The relevant departments of Shanghai City were very unconcerned about this matter when they came up, and they thought that Chinese investment would be a small development of hundreds of acres.
However, when the representative of Chinese Investment took out a plan map of the Pudong area and drew a large number of enclosures on it, everyone was shocked.
This time, the Chinese Investment and Development Company has encircled thousands of acres of land in Lujiazui, including the location of landmark buildings such as the Jin Mao Tower, the World Financial Center, and the Shanghai Center Building.
Such a large land sale was not something that these people below could decide at all, so it was quickly reported to the secretary of the municipal party committee.
Things have come to this point, and the Chinese Investment and Development Company has also decided to send out the bigwigs who are hiding behind the scenes. In order to highlight the importance attached to this enclosure action, Su Zhenbang soon rushed to take charge of the matter, and Li Jiacheng and Bao Yugang, who received the notice, also flew over from Hong Kong.
Mr. Su, Mr. Bao and Mr. Li Jiacheng soon met with Mr. Zhu, the party secretary, and the future iron-fisted prime minister was in favor of the matter. However, this matter is no longer the main thing that Shanghai can do, and the senior management has already known about this matter and said that it is being discussed.
The Chinese investment in thousands of acres of land in Pudong has also been exposed by the Hong Kong media, and once the deal is completed, it will involve the mobilization of more than one billion or even billions of funds.
All of a sudden, Hong Kong's real estate industry was completely shaken, and even some real estate development companies and financial investment companies in Asia and the West are paying close attention to this matter. Not only that, countless overseas companies and media also want to take advantage of this incident to see whether the mainland's top management will really open up Pudong to development.
Just when there was a lot of uproar about this matter outside, there were also huge disagreements within the top management, and the quarrel between the two parties even rose to the point of a dispute over the line. Staunch reformists are obviously supportive of this matter, and they hope to use this incident to completely open up the situation of Pudong's development and opening up. On the conservative side, they believe that this kind of behavior is a capitalist counteroffensive, and that such a large land transfer has not created the largest landlord in the country.
The fierce argument between the two parties made the No. 1 leader a little uncertain for a while, so the No. 1 leader asked the supreme leader for advice. The answer of the supreme leader is very clear: since development is open up, then we must resolutely continue to let the outside world know our determination.
Now that the supreme leaders have expressed their positions, the general direction of this matter has been set. Next, the central government sent a working group to nominally guide the Shanghai side to negotiate with the Chinese Investment and Development Company.
The enclosure went smoothly, and the relevant departments of the Shanghai municipal government, accompanied the professionals of the Chinese Investment and Development Company, to inspect the land situation in Lujiazui and some other places.
After that, the two sides conducted rounds of negotiations on the price of land, but fortunately, the current land price has not reached the point where every inch of land is expensive in later generations, and it is completely the price of cabbage.
In the end, the Chinese Investment and Development Company acquired nearly 6,000 acres of land in Lujiazui and other parts of Pudong at prices ranging from 100,000 to 300,000 yuan per mu. Moreover, the follow-up enclosure action is still in progress, and if it continues like this, the Chinese Investment and Development Company will be the rhythm of the king of Shanghai.
When the Shanghai Municipal Government and the Chinese Investment and Development Company officially signed the agreement, the two sides jointly announced to the outside media that the Chinese Investment and Development Company had acquired nearly 6,000 acres of land in Shanghai at a cost of 1.3 billion.
For a time, the Hong Kong real estate industry was shocked, and even many Western media reported on the incident.
Among them, the Wall Street Journal even wrote an article claiming that if the mainland government unswervingly continues to develop and open up Pudong, then the land bought by the Chinese Investment and Development Company will bring amazing returns.
After this article was reprinted by many Hong Kong media, the stocks of Cheung Kong Company and Wharf rose sharply again for a while.
In fact, everyone didn't know that when the outside world was discussing this matter, Suning Real Estate took advantage of this shareholder wind and had a lot of land in the Shanghai circle. As soon as he thought of the housing prices of tens of thousands of square meters in Shanghai in the future, Su Chenyu felt so excited that his blood flowed.
This speculative enclosure is completely thousands of times more profitable, just ask - who can refuse?