I want to be a giant of Hong Kong Island

Chapter 536 [Stock Market Plunge]

Every January is undoubtedly Wu Guangyao's busiest time, because the annual reports of the previous year's group companies are freshly released;

As the boss, Wu Guangyao was undoubtedly most concerned about how much he earned!
Universal Building, group meeting room.

A group of directors and executives of Universal Group are holding a meeting.

"Universal Group's net profit last year was 10.7 billion US dollars, including 7.75 million US dollars in shipping, 2.7 million US dollars in ports, and 2500 million US dollars in aviation. Shipping has dropped sharply again, ports have begun to exert their strength, and aviation has steadily increased." Wu Guangyao presided over the meeting and said Said.

Shipping has indeed dropped a lot. In the two peak years (1969 and 1970), the annual profit of shipping was as high as 12 billion US dollars, a drop of almost 40%.

Of course, Wu Guangyao accounted for almost 30% of the oil tankers in the world;

After the closure of Suez, even if it is shipbuilding, it will take two years to fill the gap.

Therefore, starting from 1971, when the load capacity of oil tankers increased, the freight rate would naturally drop;

This also explains a truth, the monopoly business is the best and the most profitable!

Sanders asked: "According to this situation, this year (1973) should drop sharply by 20%. Could it be that the shipping situation is not good?"

Gao Ke of Global Shipping denied: "It's not that the shipping situation is bad, but that the shipping situation has returned to normal levels! If the Suez Canal is not blocked, the annual profit of the 2000 million-ton fleet will only be US$5 million to US$6 million. "

With a fleet of 2000 million tons of deadweight, the cost of new ships is about 30 billion US dollars;
Therefore, in the normal shipping period, it takes about five or six years to pay back the cost.

Wu Guangyao said with a smile: "There are various factors. In short, our global shipping has no loans, so there is no need to be nervous about earning more or less! This year, 2.7 million US dollars will be left as investment, and the remaining 8 million US dollars will be used for shareholder dividends."

No one raised any objections, and Shen Bi was much more honest now!

He Yuanzhang said: "Our high-level executives have also discussed the year-end bonus plan for employees. The minimum standard this year is three months' salary, and the highest standard is five salary. Universal Group has 13080 employees, and it is estimated that it will need to spend 1.5 million Hong Kong dollars."

After hearing this, the corners of Shen Bi's mouth trembled immediately;
Global Group issued 1.5 million Hong Kong dollars in year-end awards alone, and HSBC only made a profit of 3.5 million Hong Kong dollars a year;
This comparison reveals what the gap is!

"Approved!" Wu Guangyao made a final decision.

Cheung Kong Industries, Zipper Group, Baiyou Group, Dongfang Group.
After a lap, Wu Guangyao is busy and happy!

Various companies developed rapidly one after another, and each cash cow began to bring Wu Guangyao a lot of money.

At this time, Wu Guangyao's bank deposits had reached 25 billion US dollars, close to 150 billion Hong Kong dollars.

The annual turnover of the Hong Kong stock market in 1971 was 170 billion Hong Kong dollars, and the annual turnover in 1972 was 500 billion Hong Kong dollars;
And entering March 1973, Hong Kong's stock market had reached the point of madness;
In January, the transaction volume was HK$1 billion;
In January, the transaction volume was HK$2 billion;
In March, in just the past 3 days, the transaction volume has reached 8 billion Hong Kong dollars;
Entering March, Hong Kong's stock market has become dangerous due to excessive speculation;
Some stock market veterans who have made huge profits have begun to retreat bravely when they see that the momentum is wrong;

Only those newcomers who don't know the heights of the sky and the depths of the sea are still happily chasing the waves;
March 3th, Friday, an ordinary day;

There was neither sensational good news nor any significant influx of overseas funds. However, due to excessive speculation, the Hang Seng Index climbed to a historical high of 1880 points, with a single-day trading volume as high as 8 million Hong Kong dollars.

Such a situation made many investors jump for joy, but they didn't know that a storm was about to roll in.

At this time, Wu Guangyao had thrown away about 5% to 10% of all the company shares he held, making a total profit of 18 billion Hong Kong dollars.

Even so, the market didn't notice anything, because everyone was already crazy.

The total market capitalization of Hong Kong's stock market has reached 1050 billion Hong Kong dollars, while Hong Kong's GDP (in 1972) was only 350 billion Hong Kong dollars, with an average per capita of 8060 Hong Kong dollars.

The stock price of Hongkong Land is 50 Hong Kong dollars per share, and the price-earnings ratio reaches 178 times; that is to say, if the price-earnings ratio remains unchanged, investors can only get back their capital after 178 years;

One can imagine how crazy the stock market has become!

Shareholders had a happy weekend, and the stock market opened on March 3 (Monday);
However, the stock market caused panic due to the appearance of three fake stocks of Hopewell Industrial Co., Ltd.

The aftermath of the panic was triggering wave after wave of selling.

Because of the issue of a few fake stocks, various stocks have fallen one after another. It can be seen that the Hong Kong stock market is fragile in nature and cannot withstand any disturbance.

1500 points

1400 points

1300 points

By the end of March, the Hang Seng Index had fallen by 1288 points, a full 20 points in 600 days;
At this time, the Hong Kong government can't sit still. If this continues, the economy of Hong Kong Island will become a disaster.

The government and people in the market continue to call on investors to remain calm and not to panic;

It is even said that the stock market will stabilize soon, and Hong Kong's economic foundation is solid.

Then it didn't help, the market panicked, and the so-called government intervention didn't work at all.

Due to the rapid decline in the stock market and signs that it will impact the financial system and affect social stability, the heads of the four stock exchanges and major banks met with Financial Secretary Ha Ting-kei to discuss policies to stabilize the stock market;
After several rounds of meetings, the government still insists that it will not interfere with the operation of the free market, but expresses its support for some voluntary measures introduced by banks and exchanges.

These measures are as follows:

1. Postpone the listing of new shares for three months to reduce stock supply.

2. Brokers are strictly prohibited from delivering within 24 hours to curb short-selling hype;

3. Some large banks agreed to relax stock mortgage loans and loosen market monetary conditions;

4. Remove foreign exchange control and restore market confidence in investment.

Although everyone has made a lot of efforts, all efforts seem to be ineffective. Instead of turning around and rising, the stock market has fallen deeper and deeper;
The more everyone is like this, the more panicked and panicked some stockholders are.

The stock market crash is coming!

At this time, Hong Kong’s undeveloped investment culture, weak investment knowledge, uneven quality of enterprises, imperfect regulatory system and other internal reasons are what really caused the stock market crash.

Otherwise, a few fake stocks can have such great power!

Wu Guangyao watched with cold eyes. Knowing the history well, he knew that if he attacked to stabilize the stock market now, he might easily hurt himself;

Moreover, if the citizens of Hong Kong Island are not educated, it is really impossible for the stock market of Hong Kong Island to stand up, let alone develop into an international financial center.

In addition, the oil crisis in October has not yet arrived, so let's wait and see what happens!
(End of this chapter)