Chapter 197 Real Estate Recovery
April 4, Hong Kong government auction house.

Today, the Hong Kong government will launch the 'Admiralty Land King' for auction with a reserve price of 5 million Hong Kong dollars.

How could Whampoa Group, as the largest real estate developer in Hong Kong, miss such a feast of wealth?

Liu Zhicheng must be a diner at the table, not a waiter, or a 'delicacy' on the table.

This piece of land later became the famous Pacific Place Phase 1, and is another indispensable golden location in Hong Kong.

Liu Zhicheng seemed to remember that in 1986, the Hong Kong government put another piece of land adjacent to this one up for auction, and it was still won by Swire Properties.

The two plots of land totaled 29 square feet, and were later built into a four-story podium building (shopping mall part) and four super buildings.

It includes two office buildings, three first-class hotels, luxury apartments and serviced hotel residences, with a total rentable area of ​​500 million square feet.

If Liu Zhicheng can take it down, it will also be a strong guarantee to ensure the century-old inheritance of his family.

Land auction revenue is the bulk of the Hong Kong government’s fiscal revenue, so naturally the government hopes that the real estate market will be good so that fiscal revenue will naturally be high.

Therefore, every time when the real estate in Hong Kong improves a little, the Hong Kong government will take out a piece of "land king" to test the market, hoping to declare that the real estate has come out of the trough through the auction of the "land king".

This land auction attracted a large number of real estate developers to bid, most of whom came to witness the recovery of Hong Kong's real estate.

More than 700 people, including senior executives from major real estate companies, senior officials from major banks, and journalists from major media outlets in Hong Kong, attended today's event.

Among them were real estate tycoons such as Huang Tingfang and his son (Sun Hung Kai Properties), Guo Desheng and his son (Sun Hung Kai Properties), Cheng Yutong, Lee Shau-kee, Chen Zengxi, and Wang Dehui who personally supervised the battle.

The scene was so spectacular that it is rare in the history of Hong Kong land auctions. It can be said to be unprecedented!

Liu Zhicheng and Lu Zhihe agreed to walk into the auction hall together. Liu Zhicheng is now the richest man in Hong Kong, and it is impossible for him to personally participate in the land auction.

Of course, he came here today just to support the auction and cheer for the Hong Kong real estate developers.

As soon as Liu Zhicheng got out of the car at the entrance of the auction house, media reporters swarmed around him, wanting to interview Liu Bancheng.

"Mr. Liu, your presence at the land auction today, does it indicate that Hong Kong's real estate market is picking up?"

"Mr. Liu, you are here in person at the auction today. Are you determined to win..."

Liu Zhicheng also owns a newspaper company, so he is considered half a media person. How could he not support the work of journalists?
But at this juncture, Liu Zhicheng certainly wouldn't say it in a very "explicit" way.

"Hong Kong's future is set, and I believe Hong Kong's tomorrow will be even better!" After saying this, Liu Zhicheng walked towards the auction venue surrounded by bodyguards.

As soon as Liu Zhicheng stepped into the auction hall, he saw many familiar faces in the city.

"Mr. Liu, long time no see." Zheng Yutong from New World was the first to come up and say hello.

He had always wanted to find an opportunity to chat with Liu Zhicheng. Recently, Shanfeng Investment had been aggressively buying New World shares from the open market, which made him a little nervous.

"Uncle Tong, I didn't expect to meet you here today. I'm honored." Seeing that Zheng Yutong's words were not pretentious, Liu Zhicheng spoke very politely.

Among the four major families, Zheng Yutong has never initiated an active acquisition war because he feels that taking over someone else's company is like doing evil.

In his previous life, the companies under his control had very clean backgrounds, and he was always invited to join by others.

"Mr. Liu, this is my son Jiachun. I hope you will take good care of him in the future." Zheng Yutong said as he introduced his son to Liu Zhicheng.

It seems that Cheng Yutong wants to support his son to take the position.

"Brother Jiachun, hello!"

"Hello, Mr. Liu! I look forward to your guidance in the future." Zheng Jiachun said very politely.

Zheng Jiachun was very happy today. Liu Zhicheng's fierce performance in Hong Kong made him admire him very much. Liu Zhicheng has become a role model in his heart.

In his previous life, Cheng Kar-shun was also a powerful man. After taking over New World, he was also very powerful in Hong Kong. He attacked everywhere, causing New World to be heavily in debt, forcing the already retired Cheng Yu-tung to take action again.

The two exchanged a few pleasantries, and Zheng Yutong took the initiative to ask what Shanfeng Investment’s attitude towards New World was.

"Uncle Tong, you can rest assured. I am just optimistic about the future of Hong Kong. This is just a pure investment."

Zheng Yutong seemed to be relieved, nodded with a smile, and said, "Mr. Liu, I would like to invite you to join the New World Board of Directors. Is that possible?"

Liu Zhicheng also smiled and said, "This is Uncle Tong's favor, so why wouldn't I be unwilling?"

Now Shanfeng Investment is an important shareholder of New World Development, and Hong Kong has the habit of inviting nobles to serve as directors of its own companies.

In this case, Zheng Yutong just went with the flow.

After chatting for a few words, some real estate tycoons in the city came over to greet Liu Zhicheng.

With Liu Zhicheng's current status in Hong Kong, he attracted countless attention as soon as he entered the real estate auction hall.

He is young and the richest man in the city, so it is impossible for people not to look up to him.

Liu Zhicheng had no way to stop others from admiring him.

For small real estate developers, being able to chat with Liu Zhicheng and Liu Bancheng and hear the advice from the richest man will also be a source of bragging capital in the future.

The auction begins.

The first plot of land, located in North Point, covers an area of ​​3.6 square feet and has a plot ratio of 3.2.

The so-called "plot ratio" is a term used in Hong Kong, which means that the buildable floor area is equal to the land area multiplied by the plot ratio.

For example, this land has a buildable floor area of ​​11.5 square feet, which is equivalent to 500 residential units of 230 square feet.

The plot ratio is not absolute and can be relaxed in special circumstances, but it is still difficult to obtain approval.

The first piece of land was sold for 2600 million. It looks like the Hong Kong government will make hundreds of millions of dollars again this time.

Next, the lands to be auctioned were of all sizes, ranging from as small as 15 square feet to as large as square feet.

"Now we are going to auction the fifth piece of land. This piece of land is located in Shau Kee Wan and covers an area of ​​9.2 square feet. The starting price is 5000 million, and each bid increment must not be less than 20. Peng. The auction begins!"

Shauqiwan was originally an industrial area. It was gradually transformed into a residential area in the 1960s and 1970s. Now that the subway is open, transportation is very convenient.

You can buy it, provided the price is right!
Liu Zhicheng signaled to Hao Qingwen that he could start holding up the signs!
"5020"

Next, Hao Qingwen, with great momentum, raised the price to 5900 million!
Many real estate developers looked at him sideways, mainly because Hao Qingwen showed a strong desire and was full of momentum, looking like a roaring water.

The people bidding against Hao Qingwen were the Huang father and son of Sino Properties, who are "super good friends" in the Hong Kong real estate industry.

Precisely because of their "super good friend", from June 1981 to June 6, Sino Properties suffered losses of up to HK$1984 billion and almost faced bankruptcy.

This real estate company purchased a large amount of land between 1983 and 1984, including more than ten pieces of land, and suffered heavy losses as a result.

Don’t think that you will make a profit by buying at the bottom. The premise is where the bottom comes from and how long it will take to dawn. You also have to consider the bank interest.

Seeing Hao Qingwen's enthusiastic performance, Huang and his son firstly did not want to fall behind, and secondly they also wanted to make a profit from Liu Zhicheng.

What they didn't know was that although Liu Zhicheng was young, his strategies were better than theirs.

He has excellent eyesight and a quick brain, and every move of the Huang father and son is in his eyes and mind.

Since this father and son have bad intentions and are against him everywhere (there was a dispute over the land in Tsim Sha Tsui East last time), he will return the favor today.

Liu Zhicheng whispered something in Hao Qingwen's ear. "6500 million"

When Hao Qingwen shouted out this high price, many people shook their heads. It was more than 500 million yuan more expensive. This young man was really spending money recklessly.

"Father, let's just forget it!" Huang Zhixiang advised.

Huang Tingfang did not hesitate to offer a new price: "6600 million"

Liu Zhicheng's mind was working quickly. In the late 1980s and early 1990s, the "Big Shadan" was auctioned nine times and ten times, and high prices were repeatedly reported.

"6800 million" Liu Zhicheng signaled Hao Qingwen to continue holding up the sign.

Although Liu Zhicheng was taking a risk, his face still showed a strong desire and a momentum of being determined to win.

Huang Tingfang looked sideways and saw Liu Zhicheng's expression. He immediately snorted in his heart. He was irritated by a young man today, and shouted without hesitation: "7000 million!"

After shouting, Huang Tingfang regretted it, and his son shook his head inadvertently.

Liu Zhicheng saw his son's action and shook his head pretending to be helpless, indicating that he had given up.

The premium is more than 40%. The real estate market has just stabilized and there are only slight signs of recovery. Is it necessary to spend so much money like this?
Huang Tingfang had an ugly look on his face. He had clearly discovered that Liu Zhicheng was desperate to kill him, so he planned to give him a lesson!

Although I was a little impulsive just now, fortunately, there will be no problem in making a profit on this land.

These were just appetizers. Soon the 'Golden Bell Land King' was taken out and auctioned off. This was the highlight of the day.

It is a piece of land that many big real estate developers in Hong Kong are determined to acquire.

Liu Zhicheng continued his usual performance, with unabated enthusiasm for bidding, and soon shouted out 5 million Hong Kong dollars.

“HK$5 million.” The representative of Swire Properties shouted out the high price without hesitation.

"5 million Hong Kong dollars." Before Hao Qingwen raised his sign, Li Chaoren of the Yangtze River Company raised his sign.

At this moment, a small accident occurred. The auctioneer's hammer fell off the table, causing shock to the audience and easing the tension.

This auction was extremely exciting. The fierce bidding, large number of bids and long duration were all unprecedented in Hong Kong real estate auctions.

"6 million Hong Kong dollars." Liu Zhicheng signaled Hao Qingwen to speed up.

…………

"HK$6 million"

When Hao Qingwen announced this price, the whole audience suddenly stood up and applauded warmly, announcing that the real estate recession that had lasted for several years had finally officially ended.

The Swire representative was not to be outdone: "7 million Hong Kong dollars."

"HKD 7 million." Liu Zhicheng knew that the land price had reached its limit and wanted to make the final decision.

At this time, the representative of Taikoo just shook his head and spread his hands to show that he gave up.

...............

In the end, it was the Whampoa Group, with its strong financial strength, that won the "Admiralty Land King" covering an area of ​​7.1 square feet at a price of HK$11.5 million.

This piece of land plus the subsequent construction costs will require an investment of at least HK$50 billion, and only large real estate developers can afford this!

After the auction, Huang and his son took the initiative to come up to Liu Zhicheng and greet him, seemingly having forgotten what had just happened.

Liu Zhicheng naturally knew that these were just for show, so everyone should just deal with it casually and not bear grudges.

Liu Zhicheng naturally didn't want to make an enemy, so he exchanged a few words with the Huang father and son.

…………

At the Sailboat Hotel, Liu Zhicheng was receiving Lyon to discuss their further layout in RB in preparation for the arrival of the Plaza Accord.

In the early 20s, the United States' fiscal deficit increased dramatically and its foreign trade deficit grew significantly.

The United States hopes to increase the export competitiveness of its products by devaluing the US dollar in order to improve its international balance of payments imbalance.

On September 1985, 9, the finance ministers and central bank governors of the United States, Russia, West Germany, France, and the British Empire held a meeting at the Plaza Hotel in New York.

The five governments reached an agreement to jointly intervene in the foreign exchange market to induce an orderly depreciation of the US dollar against major currencies.

The agreement was signed at the Plaza Hotel, so it is also called the "Plaza Accord".

"Leon, since the fall of 1978, when President Carter launched a "dollar rescue package,"
Is it true that the manufacturing industry in the United States is getting worse and worse, and the foreign trade deficit has increased significantly? "

"Mr. Liu, I'm also concerned about what you said. Many of our previously advantageous industries are now on the verge of bankruptcy." Lyon nodded.

"So, I think you will definitely want to devalue the US dollar, increase industrial exports, and save your manufacturing industry." Liu Zhicheng said slowly.

"Mr. Liu means that the US dollar faces the risk of devaluation." Lyon asked puzzledly.

"That's more or less what it means, but they must find a 'scapegoat' so that the US dollar can achieve a soft landing during the devaluation process and avoid a collapse," Liu Zhicheng continued to analyze.

Leon nodded and asked, “What does Mr. Liu mean?”

"RB's economy is strong now. I think this is a good 'helper'. This is also the original intention of my cooperation with you in investing in the Tokyo real estate market."

Leon thought for a moment and continued to ask: "How long do you think Liu Sheng will have to prepare?"

Lyon's assets are basically in US dollars, so he must want to find a safe haven for his assets.

"After research by my team, it is estimated to be in the third quarter of this year, not the fourth quarter," Liu Zhicheng said with some certainty.

"Thank you Mr. Liu for your advice." Lyon thanked.

"Mr. Lyon, there's no need to thank me. I just hope that we can increase our investment in the RB real estate market and seize the opportunity in the last two months to find a safe haven for our assets."

The Hong Kong dollar is pegged to the US dollar. Once the US dollar depreciates, the Hong Kong dollar will also depreciate. Similarly, Liu Zhicheng will try his best to avoid the loss of exchange rates and cause his wealth to shrink.

RB is very xenophobic, except for his American father, so Liu Zhicheng must find a white glove.

Lyon also understood what Liu Zhicheng meant, but he was willing to do it.

Because Liu Zhicheng can be said to be his benefactor, several "cooperations" with Liu Zhicheng have enabled his wealth to grow quantitatively.

Otherwise, it would be impossible for Liu Zhicheng to call a wealthy man from a beautiful country and send him away at will.

"Mr. Lyon, I recently sold some of my Apple and Wal-Mart stocks in America. I need to find investment opportunities in America again with these funds.

But this time I want to invest in some real estate. Can you help me find out if there is any automobile industry that wants to be sold?"

"Automobile industry?" Leon asked, "Mr. Liu wants to build cars?"

"I can say that I am optimistic about the future global automobile consumer market."

Liu Zhicheng didn't know how to say it clearly. Purchasing the American automobile industry was just an excuse. All he needed was the technology.

Leon nodded and said, “Okay, I’ll go and find out when I get back, and I’ll notify Mr. Liu as soon as I have any news.”

(End of this chapter)