Chapter 143 Arriving in Kyoto
The profit of residential property is indeed huge, and the recovery period is short. The cost of developing and holding commercial buildings is much higher than that of developing and selling residential buildings.
The characteristic of residential buildings is that they can quickly recover funds and invest in the next project with a small investment. Self-owned commercial real estate, on the other hand, is a heavy asset.
With the amount of capital Liu Zhicheng has, if he enters the residential building development on a small scale, the total profit will not be large and it will not be attractive.
If they enter on a large scale, Hong Kong's housing prices will inevitably soar further, which may cause the real estate crisis to break out prematurely, and one may be trapped in it if one is not careful.
Therefore, apart from developing his own land, Liu Zhicheng mainly holds commercial office buildings or shopping malls, collects rent and waits for housing prices to appreciate.
After all, manufacturing and high-tech fields are the core of Liu Zhicheng's companies, and the profits from real estate are only used to invest in these industries or future infrastructure projects in the mainland.
"What are you two talking about?" The boat charter king came over and asked.
Liu Zhicheng smiled and said, "Just chatting casually. Does Bao Sheng have any projects that he is interested in when he goes to Beijing this time?"
"I plan to donate and build a five-star hotel in Beijing." The ship charter king said with a smile.
"Five-star hotel?" Liu Zhicheng paused after hearing this.
Some time ago, he said that he was involved in an investment in Yangcheng, and returned to his hometown Ningbo to invest in a port. Now he has invested in a five-star hotel in Beijing.
Liu Zhicheng recalled and seemed to remember that when he was in Pengcheng, the king of Taihe airship charter had mentioned this matter to him.
Liu Zhicheng thought it was quite troublesome to build a five-star hotel in the inland area, so he proposed to build one in Pengcheng.
There was no modern hotel in the capital, so the charter king offered to donate 10 million US dollars to build a five-star hotel.
But at that time, the mainland wanted him to order a huge cargo ship, and he was ready to use this method to refuse, but this incident also caused a lot of trouble.
If it was just a donation of a hotel, there would be no problem, but the charter king asked that the hotel be named after his father.
This put many high-ranking officials in the mainland in a dilemma and they dared not accept the funds because such a thing was outrageous under the policy at the time.
It is conceivable that the most luxurious hotel in the capital at that time would be criticized for being named after a capitalist.
It was not until a year later that the five-star hotel was confirmed after higher-level leaders gave the order.
"Congratulations to Bao Sheng. He has already got a big project before he even arrived in Beijing."
……
By 10 o'clock, everyone had arrived and boarded the business jet to Beijing.
The interior of the plane is very luxurious, and every seat is more luxurious than a normal first-class cabin.
The cabin can normally accommodate more than 140 people, but this business jet only has 36 seats.
Liu Zhicheng chose a seat near the window, eager to see the real mainland in the early 80s.
But the plane was at an altitude of ten thousand meters, so it was impossible for it to not see the specific scenery below clearly.
Liu Zhicheng couldn't help but shook his head. Curiosity kills the cat, and that's absolutely true.
Liu Zhicheng knew that if the plane flew over some famous rivers, it would still be able to be seen.
"Mr. Liu, are you free?" A voice came from behind.
Liu Zhicheng looked back and saw that it was Hu Yingxiang. He smiled and said, "Mr. Hu, it's very convenient."
Hu Yingxiang smiled and said, "I'm sorry to bother you, Mr. Liu. It's so boring on this plane that I had to come over to bother you."
Liu Zhicheng knew that it was definitely more than just a nuisance, so he said, "Please sit down, Mr. Hu."
"Mr. Hu, please come in." Liu Zhicheng opened the door, and the person outside was indeed Hu Yingxiang.
After Hu Yingxiang sat down, he said, "Mr. Liu, I came to bother you this time because I heard that you have plans to invest in highways in the mainland."
"Guangshen Expressway?" Liu Zhicheng asked.
This matter was no secret among the top business leaders in Hong Kong. As soon as Liu Zhicheng proposed the plan, although it had not yet been implemented, it was used by senior officials from the mainland to promote investment promotion.
After all, this is a project with an investment of over 10 billion US dollars. It would be strange if it was not used by the mainland to promote and attract investment.
Hu Yingxiang nodded and said, "Yes, I heard that Mr. Liu has a grand investment plan in the mainland, which shows that he is optimistic about the development of the mainland."
"This is beyond doubt. After all, my main business is manufacturing." Liu Zhicheng left the words unsaid. It was impossible for him to just shout out his investment as a slogan.
"The Guangzhou-Shenzhen Expressway is located in the core area of the future mainland economy. This investment will definitely have a high return," Hu Yingxiang continued.
"So what's the problem now?" Liu Zhicheng asked with a smile.
Hu Yingxiang would not be so kind as to analyze the benefits for you. He must be interested in this project just like he was in his previous life.
Hu Yingxiang did not answer the question directly, but continued: "I heard that Mr. Liu is currently facing two problems in investing in the Guangzhou-Shenzhen Expressway. One is that the mainland is still somewhat hesitant and is somewhat uncertain about this method of investing with loans and charging fees to repay the loans."
"The second is that the loans involved are as high as tens of billions of US dollars, so many banks will be cautious." Although infrastructure investment is huge, there is actually not much start-up capital prepared. Many large projects do not even have 1% of the start-up capital prepared.
It is entirely dependent on loans. Otherwise, with more than one billion US dollars, investing in anything else will be no better than investing in highways.
For banks in Hong Kong, lending more than US$10 billion would be difficult.
Moreover, the mainland is now in the early stages of reform and opening up. Once the mainland's economic development is not as good as expected, loans cannot be recovered, resulting in bad debts, a bank run will definitely occur.
Liu Zhicheng asked, "Does Mr. Hu also think highly of this and want to invest in it?"
The Guangzhou-Shenzhen Expressway will be the most profitable expressway in the entire mainland in the future, with annual revenue exceeding 20-30 billion yuan. In terms of return rate, it may not be as good as some other industries.
The most important thing is the loan pressure. Although Liu Zhicheng is now a super rich man, a loan of more than 10 billion US dollars is not so easy to solve.
Moreover, the interest rates on loans are extremely high nowadays. For such a large loan, it would be strange if the bank did not charge you 15 points.
When Liu Zhicheng first invested in the highway, he had no idea how much money he could make. His main purpose was to get returns from other aspects in the future.
Wouldn't it be better to bring in a strong business partner and work together to persuade the bank? Now that Hu Yingxiang has taken the initiative to join the game, why not give him a share of the pie?
Seeing Liu Zhicheng asking him, Hu Yingxiang smiled and said, "Mr. Liu, how about we set up a joint venture company?"
"Of course, I hope that more people like Mr. Hu who support reform and opening up will join us and work together to persuade the mainland government and Hong Kong banks that as long as the banks are willing to issue high-ratio loans, we don't actually need to invest a lot of money."
"Mr. Liu is very straightforward. Let's talk about it in detail when we return to Hong Kong." Hu Yingxiang nodded and said.
"Mr. Hu, I hope Mr. Hu will have a chance when we go to the capital this time. It would be best if you could mention it. Maybe it will work."
Liu Zhicheng knew that even if he obtained a consent permit during this trip to Beijing, the specific details of the cooperation would still require a long period of time and numerous subsequent negotiations.
Flying in the air is much more boring than being on a yacht, but fortunately I can see the beautiful scenery through the window.
Flying from Hong Kong Island to Beijing, the plane flew in the air for 3 hours and landed at the Beijing Airport.
After the plane stopped, the flight attendant opened the cabin door. When Liu Zhicheng walked out of the cabin, a cold wind blew, making people feel a little cold.
But the moment he walked down the ladder and stepped onto the airport, his heart was warm and a smile appeared on his face.
The mainland government attached great importance to the Hong Kong delegation and sent a senior leader to pick them up at the airport.
When in Hong Kong, Liu Zhicheng and his entourage already learned from the Xinhua News Agency that the senior executive who would be welcoming them was named Yang, who also served as Vice Minister of Commerce.
As the TV cameras filmed, the mainland government leaders shook hands with the members of the Hong Kong delegation one by one to express their welcome.
"Mr. Liu, let's take a photo together?" Minister Yang recognized Liu Zhicheng and greeted him with a smile while shaking hands.
Liu Zhicheng was also a little flattered. So many people asked to take photos with him individually. He definitely gained a fan.
In fact, it is hard not to recognize him. There is only one young man here, Liu Zhicheng. Anyone with an eye can tell who he is.
"Okay." Liu Zhicheng replied.
The two of them shook hands knowingly and let the camera flash a few times. This would be on the news.
It would be best if you could appear on the news broadcast, even though it might only be for a few seconds, it would also be an honor.
After the airport welcoming ceremony was over, the mainland arranged three large imported buses, and there were police cars leading the way in front of the bus convoy.
There was no stop along the way, and judging from the fact that they were driving at high speed the entire time, the road had already been closed for this group of people.
I could never have imagined such courtesy in my previous life, but I didn’t expect to encounter it in this life.
In the capital of this era, the sky is still blue, and ordinary people probably don’t know what smog is.
Soon, the convoy arrived at the residence designated by the group.
In 1981, after two years of reform and opening up, Beijing had already summed up a lot of experience in foreign affairs.
However, the hotel infrastructure still lags behind the international level. As far as Liu Zhicheng can remember, there is probably not a single large-scale hotel in the entire capital.
Otherwise, the charter king would not have invested in a five-star hotel in Beijing.
Liu Zhicheng and others got off the bus and immediately saw the sign at the door: Diaoyutai State Guesthouse.
He shook his head seeing this. He was even given the treatment of a state guest. He would be embarrassed to return to Hong Kong unless he made a big investment.
Then, under the guidance of the waiter, we came to our own small building. Basically, each person had an independent small building.
When Liu Zhicheng arrived at the door of his small building, his assistant team had already arrived and were standing in the cold wind to greet him.
This time when Liu Zhicheng went north, he brought Yang Minli with him, so Cherie Chung and Ka-wai Kwan did not go north, but stayed in Hong Kong to look after the house.
(End of this chapter)