novelones Chapter 224: One night collapse, the game of who can run faster begins
Chapter 224: One night collapse, the game of who can run faster begins
The reason why Wang Lei persuaded Wang Zhengyi to sell the real estate project was entirely because of the massive expansion after several years.
Wang's Real Estate looks a bit bloated, like an overfed python.
Leverage and short-term loans are also the most commonly used expansion methods of Wang Real Estate.
Even if the entire Chek Lap Kok project is supported by the cash flow of gambling kings, most of the project funds still come from bank loans.
You must know that between 87 and 97, housing prices in Hong Kong City increased tenfold in ten years!
But after the financial crisis broke out in Dongzhou, it fell by 70% overnight!
It's easy to go up, and it's even easier to go down.
There are a large number of people with negative equity in the port city. Everything is falling, but the price of coal is rising.
If Wang doesn't start to lose weight quietly at this time, it will be too late to run away when disaster strikes.
Some people want to ask, why don't you wait until 97 to sell it?
Given the size of Wang's Real Estate in Hong Kong City, if it were all sold off at once, it would probably trigger a crisis in advance.
I'm afraid those short sellers are not just clapping their hands and applauding, but are shorting the Wang Group based on the smell.
Since you have decided to run away, you must do it quickly and not be sloppy.
“National bankruptcy?”
"You mean these small countries will have financial collapse, stock market crash, and housing prices plummeting?"
Wang Zhengyi is not an ordinary person who knows nothing. On the contrary, he manages such a large group and knows a little bit about everything. His theoretical knowledge is far beyond that of ordinary people.
Naturally, I know that Wang Lei is not alarmist.
Insufficient foreign exchange reserves, high national deficit, downgraded credibility, currency collapse...
What caused was a series of chain reactions.
He immediately realized that he was sitting on a powder keg that was about to light up.
"The stock prices of Hong Kong City and several surrounding countries have risen sharply recently. This is because the short sellers are deliberately pushing higher, because the higher the stock market rises, the more bubbles there will be, and the more room they have for short selling."
As far as Wang Lei knows, after harvesting Sakura Island, several major hedge funds have taken a fancy to Dongzhou, a treasure land.
Since the 90s, Laosuo's Proton Fund and Tiger Fund have invested the funds they obtained in the stock markets of several small countries in Eastern Asia.
Hong Kong City, an economic free port, is no exception.
Fueled by short sellers, the Hong Kong stock index rose from around 1991 points in early 3000 to a peak of 1997 points in 16683!
There are only a handful of such bull markets in the world.
The more Wang Zhengyi listened, the more frightened he became, realizing that the Wang Group had reached a critical moment.
If he hesitates any longer, he could be plunged into a financial crisis.
If Wang Lei hadn't reminded him, he might still be living in the illusion that the Wang Group was prosperous.
The project can be stopped and the land can be left there to wait for appreciation in value, but there will definitely be a big problem in Wang's capital chain.
At that time, if the Wang Group wants to run away, it will have no choice but to cut itself off to protect itself, and there is no telling whether there will be a successor.
Seeing Wang Zhengyi sweating profusely, Wang Lei asked with concern:
"Dad, are you okay?"
"A Lei, I'm fine, I'm just a little scared."
"Dad, since you have realized the crisis, there is no need to rush. We can use the reason that entering the inland real estate market requires a large amount of funds.
Slowly, all the projects under construction in the port city were sold at high prices. "
"Well, according to the estimates of this report, there are still three years before the East Asian financial crisis breaks out. We have time to prepare for our escape."
But there was a tangled look on Wang Zhengyi's face again:
“Where will we invest the funds that will be withdrawn?”
"If we pay off all the foreign debt, we will still have a lot of cash flow left."
"If you put it in a bank in a beautiful country or abroad, it will most likely be harvested..."
Hearing this, Wang Lei smiled. Unexpectedly, his father had a high level of awareness of foreign banks.
"Dad, there's nothing to worry about. It's foreign debt. Don't rush to pay it back. Convert it into US dollars or soft currency.
When the financial crisis breaks out, you will be the ancestor of the bank. You will have room to negotiate and negotiate, and you may be able to get rid of a lot of debt.
Besides, when the Hong Kong dollar depreciates, Wang will be able to make a small profit by relying on the price difference. "
Wang Zhengyi thought about the profits, and smiled like an old fox:
"Yes, that's the truth. With your reminder, I don't panic anymore because I owe so much debt.
But we can’t do things like laissez-faire and transfers that empty out the group’s assets, and we must keep the bottom line.
Ah Lei, don’t do this thing like giving birth to a son without an asshole, you will be punished sooner or later. "
Wang Lei rolled his eyes at his father and couldn't help but complain a few words in his heart.
Seeing that Wang Zhengyi still looked worried, Wang Lei had no choice but to change the topic:
“As for the cash that was realized…
On the one hand, our expansion in the mainland does require a lot of cash flow. On the other hand, we can invest in the Internet industry of the beautiful country! "
Wang Zhengyi also supports increasing investment in the mainland.
In the past two years, as the cooperation between the Wang family and the mainland has become closer, Wang Zhengyi has truly felt the commercial vitality of Longguo, and one day is different.
Especially first-tier cities are becoming more and more in line with the international standards, and there are great opportunities everywhere.
This retail home appliance business alone has great potential.
But the beautiful country’s Internet that Wang Lei mentioned is a new term for him.
"Alei, please explain to me, what is the Internet?"
Wang Lei then remembered that there is no word Internet yet.
"Simply put, it is an industry that uses the Internet to develop various practical software."
As a multinational business tycoon, Wang Zhengyi is no stranger to computers and the Internet.
Many enterprises of the Wang Group are equipped with business computers and are at the forefront of social development.
"Are you optimistic about this new track?"
Wang Zhengyi actually dislikes this thing from the bottom of his heart. You say it is useful. Sometimes it is indeed more useful than the human brain, but you say it is practical. Only those who have used it know how troublesome it is.
And he couldn't figure out where the profit point of this thing was.
He didn't see any business opportunities in this.
Wang Lei saw his father's expression and explained:
“The Internet has indeed just started, and the beautiful country is also in the stage of cultivating users. These nascent Internet companies still have a long way to go before they can make profits.
But I don’t expect these companies to make profits for me. What really makes money is the financial industry that is closely related to them! "
"You mean, you want to make money by taking them public?"
"Yes, Dad, you can send someone to the beautiful country to investigate Microsoft, America Online (AOL), and a browser company called Netscape."
The famous Microsoft naturally needs no further introduction. Next year, Bill Gates will rely on the appreciation of Microsoft stock for the first time to become the world's richest man.
America Online (AOL) has also been mentioned before. It was originally a company that provided Internet dial-up. In order to provide more services to their customers, they developed a lot of software.