One evening in early March, Li Huawen came to Li Hualong's house for dinner after getting off work.

"Aaron, the stock market is still rising recently, what do you think?" Li Huawen asked.

"No particular opinion." Li Hualong smiled lightly, "The stocks I should sell have already been sold, and the stocks I hold in my hands are not ready to be sold." ”

"If you sell the shares you sold before and sell them now, you can make at least 10% more, or even more than 20%.

"Big brother, I think no matter what business you do, including investing in stocks, it's best not to make the last dollar."

"Don't make the last dollar?" Li Huawen muttered, pondered for a moment, nodded with a smile, and said, "Makes sense." Making a dollar less can reduce a lot of risk. ”

In the days that followed, the Hang Seng Index continued to rise, but at a much lower rate.

On Friday, March 9, there was no particular upside and no significant influx of money, but the Hang Seng Index soared to an all-time high of points.

On this day, the total single-day trading volume of the four stock exchanges in Hong Kong was as high as 619 million Hong Kong dollars, which is equivalent to about 30% higher than the normal trading volume of usual.

That night, Li Hualong felt that the Hong Kong stock market was too crazy, and he deliberately spent two hours writing an article "Hang Seng Index Points, Where is the Hong Kong Stock Market Going", hoping to pour some cold water on the Hong Kong stock market.

Two days later, on Sunday, March 11, the Hong Kong Economic Times published an article written by Li Hualong on the front page.

In the Hang Seng Index Points. Where is the Hong Kong stock market going?", Li Hualong used data to analyze the current situation of the Hong Kong stock market, and he advised Hong Kong citizens. Invest rationally, it is impossible for stocks to rise in price all the time, even if it is a world-class high-quality company, in the face of a bear market, there will be a decline in stock prices.

"Investment is risky, and you need to be cautious when entering the market. There are a lot of bad opportunities in the world that can be found in the stock market. For the majority of the general population, only a handful of lucky ones are able to reap the benefits. Recent. I have heard that some citizens quit their jobs to speculate in stocks full-time, and after making money in the stock market, they make shark fin food. Anyone with a clear head knows that this is an abnormal phenomenon......"

"Seeing the crazy situation in the stock market, I thought of a group of people who were drinking and drinking and playing a game of drumming and passing flowers, and when they played, everyone was happy, but in the end, there was always one person who got the flowers, and he needed to be punished. When the stock price has an inflection point. A person who goes from the highest to the bottom, falls sharply, and buys the stock at the highest price. Seeing that his assets are constantly decreasing, seriously shrinking, and his hard-earned money is wasted, it is conceivable that he will definitely be very distressed......"

"Finally. I sincerely advise friends who entered the stock market with the idea of getting rich overnight, to be strong. Money is something outside the body, even if there is nothing, as long as the person is alive, everything can be started again! ”

On this day, Li Hualong did not go out and stayed at home to rest.

After breakfast, the family sat in the living room, reading the newspaper and chatting.

Yang Meng read the article written by Li Hualong and said with a smile: "Ah Long, what is your purpose in writing such an article?" ”

"I feel that the Hong Kong stock market is too hot now, and if we don't pour cold water, there will be more stockholders."

"It's not that simple, isn't it?" Yang Meng smiled, looked down at the article written by Li Hualong, and continued, "You really dare to write, the last sentence is too straightforward, isn't it a curse for people who speculate in stocks to go bankrupt." ”

"It's not a curse, it'll be true soon." Li Hualong smiled slightly, paused, and continued, "If someone thinks that they have a talent for stock speculation, then the house is mortgaged to borrow from the bank, or even borrowed from usury, and when the bear market comes, the stock price plummets, maybe they will really go bankrupt and become nothing!" ”

Chen Sisi quipped: "You are gloating, it's too bad!" ”

"I'm telling you the truth." Li Hualong said lightly, restrained his smile, and sighed lightly, "Loyalty is against the ear, and good medicine is bitter!" ”

"Whatever you think in your heart, I still think you're a little bit gloating." Li Yisong smiled and said, "Ah Long, in front of your family, it's nothing for you to joke. When you are socializing outside, don't praise you because others, you have drunk a few glasses of wine, and you have no sense of proportion. ”

"Do things in a high-profile manner and be a low-key person." Li Hualong smiled.

"Even if you can keep a low profile, it's better to keep a low profile." Li Yisong said.

"Got it." Li Hualong replied with a smile.

Li Hualong's article did not have a very big effect, and the trading volume on the next trading day, March 11 (Monday), was as high as 490 million, compared with the previous trading day, the trading volume was lower, but the trading volume was still amazing.

On this day, the prices of some stocks fell slightly, while others continued to rise, and the Hang Seng stock index fell by only 3 points.

Don't say good things a second time, there are still many people who have the idea of making a fortune by speculating in stocks, Li Hualong doesn't want to care about these people at all, let them go crazy.

……

In the past few years, Hong Kong's stock market has been bullish, and the property market has also been bullish.

As early as 1967, Premier Zhou ordered the Pengcheng garrison not to allow the masses of the Cultural Revolution to flood into Hong Kong, which indicated that Hong Kong was valuable to China and that the country would protect it.

In 1968, Hong Kong real estate gradually recovered from the 1967 riots, that year, Li Hualong's real estate company frequently bought a large amount of land from the government, and wanted to win in the competition with others, and the price of buying land was not low.

The recovery of the property market has stimulated the recovery of the stock market, and small shareholders have also restored their confidence, and the stock market is considered to be an easy product to cash out, and it is very difficult to buy a house during the riots, and in order to maintain its value, the funds pouring into the stock market have skyrocketed.

The Hong Kong dollar has long been pegged to the British pound, and until June 1972, the British pound continued to weaken, the Hong Kong dollar depreciated, and Hong Kong experienced high inflation.

Since June 1972, the British government has decided to allow the pound to float freely. After that, the Hong Kong dollar began to be pegged to the US dollar.

In the past few years, many people have been trying to preserve the value of their money. Investing large sums of money in the property market and the stock market has not only caused housing prices to continue to rise, but also caused the stock prices of listed companies to continue to rise, even if the stock prices of companies with poor performance have increased significantly, and some large companies with outstanding performance have tripled in just two or three years. Some have even increased by more than five times.

Most of the old investors have made a lot of money in this bull market, and they are willing to put more money into the stock market. Their success sets an example, and many people are influenced by them to put their money into the stock market.

Before the establishment of the Hong Kong Stock Exchange, in which Li Hualong took a stake, at that time. Investors buy and sell too few stocks to place orders with brokers.

Investors successfully place orders with brokers, who use their own assets to secure their clients before they can trade through brokers. At that time, the commission of a stockbroker was about 0.75%-1%, and errands split the commission from it.

With the establishment of the Hong Kong Stock Exchange, the number of brokers has increased dramatically, and these brokers have been much more active. Reduced commissions and margin services. Ninety percent of mortgages can be made.

In recent years, Hong Kong's industrial structure has begun to gradually transform, with the rapid development of industries such as tourism, finance and commerce. a large influx of hot money from overseas; The government initiates the implementation of the new town development plan; In 1972, the government formulated the "10-year housing plan"; In addition, there is a lot of news that the Hong Kong government is going to build a number of subways.

This reason has led to a recovery and prosperity in the property market, with house prices and rents soaring. Speculation is rife and speculation is serious. Developers are reluctant to sell.

Both the stock market and the property market are permeated with a strong speculative atmosphere, and the frenzy is irrational.

This time, Li Hualong wrote an article to pour cold water on the Hong Kong stock market, and many people were very unhappy when they read his article, and these people said that he was a black sheep and that he was nosy with rats.

……

The appearance of Li Hualong not only built the Gemdale Building in Admiralty, but also asked Hong Kong's largest stock exchange to move its headquarters to the Gemdale Building.

Another time and space, in March 1973, the trading floor of the Far Eastern Securities Exchange, the largest stock exchange in Hong Kong at that time, was located in the Chinese Bank, which was an old building with substandard fire protection facilities.

As early as 1967, Li Hualong had already acquired the Dairy Farm Company, and his acquisition made another time and space, Hong Kong's financial history leave a mark on the "Hongkong Land Drinking Milk" incident did not almost happen, but Hongkong Land Company is still the tide in this wave of bull market.

In the past few years, Hongkong Land has actively acquired other listed real estate companies through the issuance of new shares, and actively participated in land auctions by the Hong Kong government, and last year (1972), the company invested nearly HK$700 million to buy land from the Hong Kong government.

Li Hualong intends to buy Hongkong Land after the bear market comes, so he is particularly concerned about the company in which he has no shares, and he feels that Hongkong Land's management strategy is too aggressive and not potentially risky.

Li Hualong understands the "radical" of the management of Hongkong Land, and his income is linked to the company's stock price, to be precise, it is linked to the company's stock price increase, and the senior management has stock options in their hands, and the more the stock price rises, the higher their income, and in order to increase their income, they will naturally come up with some business strategies that can promote the stock price to rise sharply.

In the past year or so, Hongkong Land has issued four new shares, which will be used to repurchase the company's shares, in addition to acquiring other companies and purchasing land, as well as investing in new projects.

In addition to issuing new shares, Hongkong Land also spun off shares, which is called "bonus shares".

At this time, the vast majority of Hong Kong shareholders did not have the concept of "ex-dividend" and "ex-rights", and did not know that giving bonus shares was actually a numbers game, so they rushed to buy Hongkong Land's shares, and it took time for the stock transfer to freeze a large number of Hongkong Land shares, resulting in the illusion that the stock price had risen sharply.

As of March 11, 1973, when the stock market closed, Hongkong Land's share price was as high as HK$57, the company's total share capital was 210 million shares, and the market value was as high as HK$11.97 billion, making it the second highest market value in Hong Kong after HSBC.

In late March, the Hong Kong stock market began to correct, but there was no sharp decline, and the daily volume remained high.

In the first three months of 1973, the Hong Kong stock market went crazy, with a monthly turnover of 9.449 billion, 9.543 billion, and 9.493 billion in January, February, and March respectively, and a quarterly turnover of 28.485 billion, nearly double the annual turnover in 1971 (14.793 billion), equivalent to 70% of the annual trading volume in 1972 (43.758 billion), such a figure shows the madness of the stock market.

On April 1, April Fool's Day, Li Hualong's Hualong Real Estate Company was the first to discover counterfeit Hopewell Industrial Company stocks, and then, other securities companies have found "fake stocks", although the number is not large, and few people have been deceived, but the matter has spread widely and has a great impact, and many shareholders are worried that the stocks they hold will become waste paper and cause market panic.

A few days later, on April 4, the Hong Kong Inland Revenue Department suddenly published in major newspapers that "profits from stock trading are subject to capital gains tax", which made people even more uneasy.

For various reasons, investors are not optimistic about the stock market, whether it is Gemdale Group, Hang Seng Bank and Intercontinental Hotels Group, which are absolutely controlled by Li Hualong, as well as HSBC and Hongkong Land, the two companies with the highest market capitalization, the stock prices have fallen one after another, falling sharply, and the Hong Kong stock market has officially entered a bear market.

With the bursting of the stock market bubble, the property market also collapsed, and property prices and rents fell sharply.

Although the market is not good, Li Hualong's real estate company still actively participates in land auctions organized by the government, and although it often participates in auctions, it has not successfully bought many lands, and the land bought is all high-quality land.

Li Hualong feels that in the next year or so, the Hong Kong property market will not improve, and even continue to fall, but he feels that the government releases high-quality land, it is still worth buying at a "high price", he knows that there is a lot of room for housing price growth in Hong Kong in the future, and the price of buying land may be higher than the market price now, but in the future, invest in high-rise buildings, and hold them for a long time, in the long run, these investments can make huge profits.

Of course, compared with previous years, especially in 1967 and 1968, the Hong Kong property market has begun to decline, and Li Hualong's enthusiasm for acquiring land has dropped considerably.

Li Hualong remembers very well that the global oil crisis is about to break out, and he, who has a large amount of money in his hands, is ready to "take advantage of the fire" in this crisis, and make reasonable and legal investments to obtain profits that will be the envy of drug = traffickers.

In addition, Li Hualong also plans to convert the funds in his hands into US dollars after the outbreak of the oil crisis and buy a large number of stocks of listed US companies with the potential for appreciation. (To be continued)