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Over the past few months, the share price of Jianing Real Estate has been rising, and Focus's near-flattering coverage has had a significant impact on the financial world, and stockbrokers' filings are another source of influence, such as SDA brokerage and Focus, which are competing to cheer Jianing on.

In short, Chen Songqing was more or less unreservedly supported by the media and public opinion, allowing him to blow a tempting "bubble" in the second half of 1980.

The Gammon Building deal has led to a series of credit assessments, both in Hong Kong and internationally, particularly in the Asia-Pacific region.

The price change of the stock provides a kind of market supervision for the credit rating.

The shares issued in the expansion and its ostensible continued rise make it a hugely popular currency and collateral.

When Chen Songqing applied for a loan, he pledged the shares as collateral and promised to buy them back at a fixed price, which was accepted by some banks.

And for bankers, out of herd mentality, instinctively feel that rising stocks are a near-perfect collateral; And for the shareholders of the acquired company, Chen Songqing's shares also seem to be a better currency than cash.

Although my Hang Seng Bank does not completely refuse to use stocks as collateral, there are many factors that will be considered when taking out loans, and it may not be possible to get a loan of HK$50,000 for shares with a market value of HK$100,000 when pledged to Hang Seng Bank.

I want every stock investor to know that there are bull markets and bear markets in the stock market, and when the bear market comes, the shares of many listed companies will shrink severely, and even the stock prices of high-performing stocks will fall. It may not be a small decline, and listed companies will also go bankrupt and go bankrupt.

Write here. Let me state that I am not unoptimistic about the Hong Kong stock market. If Hong Kong's economy can maintain its current growth rate in the future, the Hang Seng Index still has a lot of room to rise, and the stocks of many listed companies are worth investing in.

To get back to the point, from June 23 to 30, the issued shares of Meihan Enterprises held by Jianing Group rose by more than 80%, and the share price rose from HK$5.05 to HK$6.85, an increase of nearly 16% in a week, while the Hang Seng Index rose by less than 2% in the same period.

Jianing Group holds more than 70% of the shares of Meihan Enterprise. They also continue to increase their shareholdings, and even the average investor would think that the actions of major shareholders are aimed at driving up the stock price.

On June 26, the Hong Kong Economic Journal accurately predicted that Chen Songqing would inject the assets of the Golden Gate Building into Meihan, and because of the huge profits, Meihan would give out bonus shares, and at this stage, the market value of Meihan would be about HK$920 million at a market value of HK$6 per share.

You can think of the sources in the Hong Kong Economic Journal...... No matter where the news came from, to a certain extent, it helped Jianing Group push up the stock price of Meihan Enterprise.

In July, Jianing Group went through a series of intensive news and market operations. Lifting the share price to HK$9, the Hang Seng Index barely rose over the same period.

On July 15, Meihan Company released impressive results. This confirms the report of the Hong Kong Economic Journal.

In August, the company announced a 100% increase in dividends, giving out three bonus shares for every five shares, and expects to maintain the same dividend after the share capital increases.

Jianing Property purchased the property from Far East Consortium International Limited (Sortium) for HK$103 million, of which HK$61.8 million will be paid for by shares of Jianing Property Company Limited (equivalent to 6.866 million shares of $9 each).

At this time, the concept of stocks can be used as money appeared!

On Aug. 7, Focus claimed that the Golden Gate Tower (26-storey office building) had been sold to "buyers from the UK". The price is HK$1.557 billion.

On August 14, it was reported that the buyer was actually Chinese. According to the information registered at the registrar on the same day, Chen Songqing's group controlled about 84% of the issued shares. The share price rose to HK$11.80, and the company's market capitalization was HK$1.815 billion.

On August 14, Jianing announced that it had reached a "preliminary agreement" with Baining Shun Group to sell the 17-storey office building of Golden Gate Tower for HK$1 billion. The deposit has been paid and the transaction is closed on September 13.

Focus' interpretation of the statement was that it confirmed the magazine's report on the Chinese businessman's purchase and estimated that the sale of the rest of the building would bring in HK$800 million in revenue.

On September 4, the so-called preliminary agreement was quickly replaced by another statement that the 26-storey office tower of Golden Gate Tower would be sold to Penn Shun in its entirety for HK$1.28 billion, and that the deal would be completed on or before October 31. This means that within 6 months after the purchase of the building, Jianing will make a profit of about 580 million yuan through this transaction.

This pivotal announcement was just one in a series of big news and deals in September.

On September 2, it was reported that a team from Jianing had set off to Oakland, California, to investigate a real estate development plan worth about HK$1 billion. On September 8, Jianing purchased a ship with a price of 60 million Hong Kong dollars, which became the precursor of the "Jianing Fleet"; By the middle of the month, Jianing's share price had risen to HK$15.40.

Compared to the HK$6 share price at the time of the acquisition of Meihan's shares, the share price of Jianing Property Co., Ltd. has risen by nearly 150% in the past nine months, which is a staggering one.

The market capitalisation of Jianing Real Estate has risen to HK$3.619 billion.

By the end of September, Jianing Group had exchanged 2888888 shares of Jianing Property Co., Ltd. for its shares in RAMA in Bangkok, by which time they had been able to set the share price at HK$17.30 per share.

During this period, the Hang Seng Index rose from 857 points at the time of the purchase of Meihan to 1,213 points on September 30, an increase of 41%, and the share price of Jianing Real Estate Co., Ltd. has been nearly 300% of the original purchase price, and the loyal Focus has once again helped to raise the stock price, the magazine reported that "Jianing has privately increased its stake in RAMA by 24%, and acquired an 80% stake in Barm, a travel agency in Manila, for 884,000 shares of Jianing." ”

Focus commented: "One can expect Jianing to become the largest travel agency in Asia by the end of the year. ”

October was relatively quiet compared to September, which was full of hot spots.

On October 22, Focus tried to settle accounts for Jianing Group in a special analysis. The magazine pointed out that due to "within 6 months of becoming the owner of Meihan, Jianing's market value has exceeded 4 billion Hong Kong dollars." It's not far from Jardine Matheson's market capitalization. ”

The analysis concluded that Jianing has obtained about HK$1 billion in liquidity through profits.

And again: "One should not forget." When Jianing first started, it did not have a surplus of HK$1 billion to use. So we can expect a big move in 1981. ”

On November 1, Bai Ning Shun Company announced that "the acquisition of Golden Gate Building was completed on October 31, 1980. ”

The message is short, but it's evocative.

I also learned an interesting thing from this news - Deacons Law Firm is the lawyer on both sides of the transaction.

While it is not uncommon for law firms to serve both sides at the same time, as different partners do not interfere in each other's business, Deacons Wong & Chin (G) seems to represent the buyer's Lam brothers on the one hand and Chan Chung-ching on the other. Meantime. Mr Wong and another partner, Poon Siu-chung, took a stake in the deal, which further implicated the law firm.

On November 4, Jianing Real Estate Co., Ltd. announced its interim results, declaring a pre-tax profit of HK$677.7 million, and the profit from the sale of Gammon Building was "included in the group's operating income". It also declared a dividend of 30 sen per share and 2 bonus shares for every 5 shares.

On November 7, a company under Jianing Group bought a 35% stake in another listed real estate company, Jielian Investment Co., Ltd. (Ltd.) (HK$6.60 per share, a total of 23.8 million shares).

On November 25th. As if to cap off an amazing year, Jianing issued 4.5 million new shares at HK$14.80 per share to buy a 21 percent stake in Nikkatsu, a Japanese company that is said to make adult films.

In this barrage of messages. At the same time, I would like to warn the minority shareholders who invested in buying this stock that buying and selling Golden Gate Building is not a recurring profit, and the market value of the company's shares cannot be simply multiplied by the price-earnings ratio. Instead, it is added as a total asset.

……

The reason why Li Hualong wrote the article "The Hidden Crisis After the Soaring Stock Price of Jianing Real Estate" is because he still remembers the early eighties. The Jianing incident occurred in Hong Kong's financial circles, and later generations called it the Hong Kong version of the "Enron incident". Originally, he had forgotten it, but in the past year, he had seen too many reports about Jianing Company in the newspaper, and Jianing Company had acquired his multi-storey office building in Kinmen Building, so he remembered it.

After reading the newspaper reports, Li Hualong found some problems, originally, he didn't want to care about this matter, but the media reported more and more, Jianing Real Estate's stock price continued to soar, thinking that in the future there may be many small investors who suffered huge losses because of the bankruptcy of this company, he decided to take the initiative to burst this bubble, rather than waiting for it to burst on its own.

"The Hidden Crisis After the Stock Price of Jianing Real Estate Soared" was published in "Ming Pao", which caused a huge sensation, if this day was a stock market trading day, then the stock price of Jianing Real Estate would definitely plummet.

Li Hualong deliberately chose to publish it on Sunday, which can give the Hong Kong government time to investigate Chen Songqing and others, and wait until next Monday, Jianing Real Estate can suspend trading, which can prevent small shareholders from suffering too much loss.

That afternoon, more than a dozen people, including Chen Songqing, Zhong Zhengwen, Huang Jianqian, and Pan Zhaozhong, were taken away by the police one after another.

The next day, Monday, before the opening of the Hong Kong Stock Exchange, it was announced that Jianing Real Estate would be suspended.

Before Chen Songqing and others were investigated by the Independent Commission Against Corruption, they had already read the articles in the "Ming Pao", and they knew that the East Window incident had occurred, and several people who were not very serious crimes had taken the initiative to turn to the police and turned into tainted witnesses, and in the end, Chen Songqing and others were convicted of illegal stock price manipulation, fraud, and embezzlement.

Although Chen Songqing committed a crime, the Hong Kong government confiscated all his property.

There is a bubble in the high stock price of Jianing Real Estate, but in the eyes of many investors, Jianing Real Estate is still worth some money.

In order to pay the fine and repay the loan of U-Ming Education, Chen Songqing found someone to help him contact several buyers, including the shares of Jianing Real Estate Company, he sold all the shares of the company in his hands, and in the end, there were more than 20 million Hong Kong dollars left.

Chen Songqing sold all the shares of Jianing Real Estate Company, the board of directors of this company was reorganized, and the company was renamed Xinxin Real Estate, and then resumed trading, and on the first trading day after the resumption, the company's stock price shrank by 50 percent, and then continued to fall.

After Xinxin Real Estate released its financial report for the second half of 1980, the company's share price rose again, and two years later, when Hong Kong's stock and property markets were in a downturn, the company was privatized and delisted.

After the privatization of Xinxin Real Estate, the 26-storey office building of the Golden Gate Building in its hands was sold to the Golden Gate Construction Company at a price of 750 million Hong Kong dollars, before that, the Golden Gate Construction Company sold these office buildings at a price of 700 million Hong Kong dollars, one sold and one bought, adding 50 million Hong Kong dollars of support, but the Golden Gate Construction Company did not suffer at all, 700 million Hong Kong dollars were stored in the bank for more than three years, and the profits were hundreds of millions, not to mention, this money was used by Li Hualong to invest, and the income was more than 1 billion Hong Kong dollars.

In Chen Songqing's eyes, Li Hualong, a nosy person, is the culprit of the "murder" of the "Jianing Empire" he founded.

Chen Songqing knows very well that in front of Li Hualong, a super-rich man, he is like an ant, provoking the other party, and he may not know how to die himself, although he hates Li Hualong in his heart, but he has never thought of revenge on Li Hualong.

After Chen Songqing was imprisoned, his life story did not end there, and after he was released from prison, he left Hong Kong to do business in Indonesia. At the beginning of 1997, the company he founded landed in Singapore to be listed, hit by the Asian crisis, his company's stock price plummeted, because the debt was too high, unable to repay the debt, the company went bankrupt, he chose to commit suicide by jumping off the building, and his life ended...... That's all for later, so don't mention it. (To be continued)