Chapter 194 Taking Over Land
On March 3, Jardine Matheson suddenly announced that it would move its registration to Bermuda.

At a critical moment in the negotiations, Jardine Matheson Land's decision clearly shows a lack of confidence in Hong Kong's future.

This immediately caused panic in Hong Kong's capital market, and the Hang Seng Index fell 5.8% the next day.

This high-profile move by Jardine Matheson not only caused a great shock in the market, but also led to many companies following suit and applying for relocation of registration.

At Shek O Country Club, Liu Zhicheng and Simon Keswick met here to discuss the transfer of shares in Swire Properties.

The club was built in 1925 and is located on the coastline of Shek O District, Hong Kong Island. The clubhouse is designed in a purely British style.

To join the club, one must first own property in a designated location in Shek O, or be the owner of a large business. Then, one must go through a rigorous process before one can apply to become a member.

Membership here has become a symbol of status.

Liu Zhicheng is of course a member here, and a specially invited member of the Hong Kong government.

After getting off the car, a waiter came to greet him, and after receiving his equipment, Liu Zhicheng came to the stadium.

"I can't sleep when I think about losing the property. I feel so sorry for my ancestors because this is all their hard work," said Simon Keswick as he walked along the court.

Now that the cross-shareholding issues between Hutchison Whampoa and Jardine Matheson have been resolved, Simon Keswick is eager to dispose of assets and invest overseas.

"Sir, don't take it too seriously. There is a Chinese proverb that goes like this: Lose in the morning, gain in the evening.

Although Jardine Matheson has lost the land today, it will definitely gain greater gains in other overseas locations.” Liu Zhicheng advised.

In fact, everyone is the same. Even if you experience setbacks, failures, or lose something, don't be discouraged.

As long as you keep working hard, you will get opportunities elsewhere and achieve success.

"Haha, I hope so, thanks to Mr. Liu's good words. Well, let's get started. Don't let him affect our good mood." Ximen said with a smile.

"Then please start."

After hearing the sound of "bang", Simon Keswick didn't care where the ball landed. He glanced at Liu Zhicheng and said.

"Our family now owns 29.8% of the shares of the company. Mr. Liu, please name your price."

“Now Hong Kong Electric is no longer in the portfolio and the share price…”

Before Liu Zhicheng could finish his words, he was interrupted by Simon Keswick.

"Mr. Liu, the current market value of Hong Kong Land is less than half of its net assets. If you want to talk about the stock price, then don't talk about Hong Kong Land today, just play basketball."

When Liu Zhicheng saw Simon Keswick's expression, he was not angry, but just smiled.

"What does Mr. Keswick mean?"

"We will buy it at a premium based on the net assets of Hong Kong Land, and we can sign a transfer agreement right away."

Negotiations are nothing more than asking for a high price and paying a low price.

"That's unrealistic, Mr. Keswick. Given the current market conditions, no one will pay a premium for the acquisition. Besides, you are in urgent need of cash for overseas investment. I think a 7% discount on the net assets is fine."

"Mr. Liu, I don't think you have any sincerity. Our Keswick family is not so poor."

"Mr. Keswick, my sincerity has always been there, otherwise I would not be able to meet you here today." Liu Zhicheng did not want any accidents to happen and just wanted to end the battle quickly.

In the previous life, it was because the Chinese financial group headed by Li Chaoren only wanted to acquire the company at a low price that they were unable to make a decisive decision and ended up suffering the consequences.

In the end, it was all in vain.

Next, the two sides had a heated argument and after some bargaining, they finally decided to use the net assets of the country to complete the transaction.

There are 9 buildings of Swire Properties in Central, not including the Exchange Square which is under construction. Once the Exchange Square is completed, the number of buildings will reach 12.

Swire also owns other properties and a large amount of reserve land. It also owns Dairy Farm, Wellcome Supermarket, Mandarin Oriental Hotel, etc.

After the Central redevelopment plan, Hutchison Whampoa’s properties in Central have become benchmarks for modern office buildings.

After valuation by the professional team of Shanfeng Investment, net assets are HK$150 billion after deducting liabilities. No wonder people used to say: It is difficult to shake up the land.

The final transaction was completed with a net asset value of HK$150 billion, which was recognized by both parties.

The final negotiation result was that Whampoa Group acquired 150% of the Keswick family's shares at a valuation of HK$29.8 billion.

Whampoa Group paid HK$44.7 billion to become the controlling shareholder of Hutchison Whampoa.

In May, the Daily Economic News published an exclusive news that shocked Hong Kong: "Breaking news! Liu Bancheng takes over the Hong Kong Holdings!"

It introduced that the Whampoa Group, a company under Liu Zhicheng, and the Keswick family reached an agreement, under which the Keswick family would transfer its 29.8% stake in Hutchison Whampoa to the Whampoa Group, making the Whampoa Group the controlling shareholder of Hutchison Whampoa.

The report did not reveal the transfer price, and citizens speculated that the transaction amount was around HK$50 billion.

As the news spread, more and more Hong Kong citizens learned about it and applauded.

It can be said that this acquisition is the most influential one in Hong Kong so far.

You know, this was the second time Liu Zhicheng cut his losses from the notorious Jardine Matheson.

This transaction made Liu Zhicheng a well-known real estate tycoon in Hong Kong, and further solidified his nickname "Liu Bancheng".

Due to the relocation of Jardine Matheson's registration, a chain reaction occurred among Hong Kong enterprises, and Liu Zhicheng did not flee with his capital at the critical moment.

Instead, it increased its investment in Hong Kong, clearly showing that it is optimistic about Hong Kong's future, and won praise from the media and Hong Kong citizens.

Oriental Mandarin Hotel.

"Mr. Liu, you scared me again." The charter king took a sip of tea and said with a smile.

"Mr. Bao, didn't you invest in Swire Properties as well? From now on, we will be true partners." Liu Zhicheng said with a smile.

Now the charter king owns 2% of the shares of Hong Kong and is also an important shareholder of Hong Kong.

"Don't worry, I will support you at the shareholders' meeting. My mind is now on HK Electric." The chartering king knew what Liu Zhicheng was thinking and immediately flattered him.

Because his health is deteriorating, his sons-in-law will need Liu Zhicheng to take care of them more in this small piece of land in Hong Kong.

"Thank you, Mr. Bao." Liu Zhicheng smiled and said, "Speaking of HK Electric, I have a suggestion. That is, we, CLP Power and HK Electric,
We can better cope with unexpected situations by connecting the power grid through the undersea tunnel. What do you think, Mr. Bao?"

Since the charter king took the initiative to show goodwill, Liu Zhicheng also gave him good news.

After being interconnected, HK Electric can not only reduce investment in power generation equipment, but also set aside more power plant reserve land for real estate development.

After all, CLP has now been connected to the mainland power grid and is building a nuclear power plant, so electricity will be supplied to Hong Kong in a steady stream in the future.

"Okay." The ship charter king answered firmly. Although he would be restricted in the future, he believed that Liu Zhicheng would not dare to mess around with the people's livelihood projects.

"Since Bao Sheng has no objection, he should ask both sides to send people to negotiate." Liu Zhicheng said.

The charter king took a sip of tea and talked to Liu Zhicheng about something. "Mr. Liu, Mr. Huo and Mr. Cao have received news that they are planning to set up an airline to break the monopoly of British-owned Cathay Pacific Airways. They want to invite you to join through me."

"Airline?" Liu Zhicheng was a little surprised.

In the previous life, in 85 after the negotiations ended, in order to break Cathay Pacific’s monopoly, several patriotic businessmen shared the same goal and invested HK$1 million to establish Dragonair in Hong Kong.

It was Cao Guangbiao who stepped forward to take the lead. He first contacted Huo Feiting and Baochuanwang, and later added companies such as Bank of China and Huarun.

It can be seen that at this time, Dragonair was a company with a purely Chinese capital background, and it also opened the prelude to Hong Kong's local aviation industry.

But later, the Hong Kong Civil Aviation Department took sides, questioned the identity of Dragonair's Chinese shareholders, and made things difficult for Dragonair at every turn.

Liu Zhicheng had to consider the risks involved, but since the leader took the initiative to invite him through the charter king, he had to consider his political background.

"Okay, how many shares can you give me?" Liu Zhicheng replied with a smile.

"Mr. Liu, since there are too many partners, we have only reserved 10% of the shares for you." The charter king replied with some explanation.

The charter king was afraid that Liu Zhicheng would dislike the small amount of shares he gave him, but Liu Zhicheng made the right decision. The Hong Kong aviation industry is too complicated and there will be too much competition in the future.

"Bao Sheng, I can buy this share, but you know I have many businesses under my belt and I may not have much time to manage them."

It is only 84 now, and Hong Kong Dragon Airlines will not be officially established until next year. It is actually too early to talk about these things now.

.........

With the support of the ship charter king, Liu Zhicheng was successfully elected as the chairman of the board of directors of New World at the extraordinary shareholders' meeting of Swire Properties.

At the board meeting, it was proposed that Hao Qingwen be appointed as general manager, which was passed unanimously.

At this point, Swire Properties officially fell into Liu Zhicheng's arms.

.........

The Whampoa Group’s 10 billion investment plan has officially come to an end, and the remaining funds will be used to fully support the development of Tin Shui Wai.

A project company has now been established in Tin Shui Wai and the land is being leveled. It is expected that the first phase of the project will be launched next year.

However, CLP's investment in the Mainland is too large, and coupled with the Tai Lam Tunnel, there will be no new investment in the short term.

The first phase of investment in Daya Bay reached 40 billion US dollars. Although the main investment was bank loans, an initial capital of 4 million US dollars was also required.

Now the only company under Liu Zhicheng that has spare capacity is Shanfeng Investment. In the early stage, Liu Zhicheng has already put out 20 billion Hong Kong dollars to stir up trouble in the Hong Kong stock market.

Liu Zhicheng asked Han Chunxi: "I asked you to invest in the stock market. How much stock have you bought?"

Although Han Chunxi has received 2 billion Hong Kong dollars from Liu Zhicheng since the stock market crisis, he has been operating in the stock market.

"Mr. Liu, I mainly invested in Hang Seng Index component stocks, half of which I have invested in." Han Chunxi was well prepared and he knew the investment situation very well.

"Did New World buy it?"

"I have bought New World Development. The share price of this enterprise is quite low, but the net assets are good. The stock is worth buying in large quantities. I currently hold 9.26%."

"What is the current share price? Has your large investment aroused their suspicion and caused the share price to rise?"

Liu Zhicheng couldn't help but ask several times, holding 10% of the shares would almost make him a major shareholder of New World.

"I not only bought a large number of New World Development shares, but also invested in hotels, China Bus, Swire, Sino Land, China Gas, etc.

These companies all have one thing in common: they are basically related to real estate. Given the current real estate market in Hong Kong, investors dare not follow it casually. "

Han Chunxi bought a large number of New World Development shares. After receiving the news, shareholders thought that he was going to acquire New World.

However, before the stock price could be pushed up, he immediately made a large-scale acquisition of Sun Hung Kai Properties. Investors began to think that he wanted to acquire Sun Hung Kai Properties and continued to follow suit.

As a result, he bought a large number of China Bus shares. After being led by the nose several times and with the current market conditions not being good, investors finally gave up following the trend.

It was judged that he was making normal investments and had no intention of acquiring anyone, so the share prices of these stocks eventually fell slowly.

Unless Han Chunxi raises his stake in these companies, there will be no more merger and acquisition rumors in the stock market.

"You have acquired so many corporate shares. How much capital do you have left?"

“Basically, they have all been invested.”

The only companies in which Hao Qingwen has bought 5% are New World and five other companies. The rest are small holdings, with shareholding ratios below 5%, and most of them are real estate stocks in Hong Kong.

The Hong Kong property market will become more prosperous year by year after this year. The share prices of various real estate companies will rise steadily, and there is a lot of room for appreciation.

Liu Zhicheng was very satisfied with this, nodded and said: "Well, you can rest assured to hold the Hang Seng shares and real estate stocks. You must have confidence in the future of Hong Kong."

The negotiation agreement is about to be signed, Hong Kong real estate will usher in another blowout, and the stock market will continue to rise.

"Also, Apple shares should be sold appropriately to a level below 5 points, and the same is true for Wal-Mart shares.

But you have to communicate with the major shareholders, try to negotiate the transfer, find a reason, and don’t let them misunderstand. "

Liu Zhicheng sold part of his shares in order to prepare to invest in new projects. There is a vast world in the mainland and room for him to show his talents.

"Also, you should assign someone to monitor the real estate investment with Lyon in RB, and don't just focus on this small piece of land in Hong Kong."

If we say that gold was the best international investment in the 70s, then investing in RB was the best in the 80s.

After World War II, RB chose a path of devoting national efforts to developing technology.

The state also made unified plans for the domestic economy, which enabled the RB economy to take off.

Moreover, under the special global context, the United States began to adjust its policy toward RB, from restriction to support.

These factors combined together determine the smooth development of RB's economy.

In the 80s, the economy of Russia was booming and people began to spend lavishly. Buying 70% of the world's LV bags was the epitome of this period, and "crazy" became synonymous with Russia at the time.

Tokyo's GDP is three times that of New York, which has resulted in rising housing prices and a booming stock market.

"Once they're fattened up, it's time to kill them." This is the basic principle of capital in the United States.

Liu Zhicheng is also a strong man. He has made preparations for long-term investment and is even prepared to work hard to make the most of the profits for ten years.

His investment plan was simple: to buy a large amount of real estate, sell it when the price was high, and then wait for the exchange rate to appreciate.

For capital, this may be a very unprofitable investment behavior, but it is also a very safe way of investment.

Liu Zhicheng also wanted to invest in the foreign exchange market, but computer trading had not yet been widely used at this stage, and individuals and general enterprises were completely excluded.

In order to avoid being taken advantage of by other forces, Liu Zhicheng came up with his own investment plan.

(End of this chapter)