Rebirth in 1989: Building a Chinese Technological Empire

"Xiao Sheng, do you have any good suggestions?"

After taking a few puffs of cigarette, Director Yun asked directly.

Looking at Director Yun's worried look, Xu Huasheng felt distressed. At this age, he still worries about the country. These people have really devoted their lives to this country.

"Chief, I think that to solve the real estate problem, we still need to find the root cause. The most important thing to solve this problem is still four words. Houses are for living, not for speculation. We must understand the essence of houses. The essence of houses is to live in, and it is a place to live. It cannot be turned into a financial product. This is the most critical..."

Director Yun nodded at this. Yes, houses are for living, not for speculation. As long as the essence of houses does not change, it will largely avoid overheating of the real estate market.

"To prevent houses from becoming financial products, we need to work hard in many aspects. First of all, we need to limit purchases. Our Internet industry is coming, and computers will enter all walks of life. With computers, our national data can be connected to the Internet. You can find out how many houses you have in your name by just checking. Direct purchase restrictions stipulate that each person can have a maximum of a few houses in a city and a maximum of a few houses in the country. To the greatest extent possible, we can avoid real estate speculation groups from speculating in real estate."

"At the same time, there should also be a limited sales policy while limiting purchases. These real estate speculators want to cash out quickly, but if the holding cost increases significantly, they have to think about it. For example, restricting the sale of houses within five years of purchase, so that when they speculate in real estate, they have to consider whether they can afford the holding cost..."

Xu Huasheng's words made Director Yun laugh. Limiting purchases and sales is indeed a good method.

"In addition to restrictions on purchases and sales, we also need to constrain land finance and prevent local governments from selling land without restraint. The most important thing is to supervise funds and never allow excessive funds to flow into real estate. We should strangle the neck of funds and avoid too much money flowing into the real estate sector. In my opinion, it would be best to cancel the pre-sale system. All real estate projects must be sold as ready-made houses. This will directly block most people who do not have enough funds but want to take advantage of loopholes to make money..."

Xu Huasheng said directly, which surprised Director Yun.

"Make money with white gloves? How?"

Director Yun asked curiously.

"Chief, it's very simple. I first use a sum of money to buy a piece of land. Then I use this piece of land as collateral to get a loan from the bank. This is the first sum of money for this piece of land. Then I build a sales office and start selling pre-sale houses, and get the second sum of money from the people. When I build a house, I let the construction team or material supplier advance the money first. As long as my scale is large enough and the profit reserved for them is enough, this is completely fine. In this way, I paid for a piece of land and got three sums of money. Then I use these three sums of money to get three more pieces of land. In this way, I can get another nine sums of money. At that time, the snowball will roll bigger and bigger. When the real estate market is good, as long as the capital chain is continuous, I can continue to borrow and play. As long as the housing prices are rising and I can still deliver houses, it's okay. But once the real estate market is sluggish and the capital chain is broken, then this huge snowball will collapse and become a pool of water, drowning everyone..."

Xu Huasheng's operation made Director Yun a little stunned.

"Chief, it is very scary when this snowball rolls, because there are too many people who benefit, so there are also many people who push this snowball to roll. The most important thing is that if one person succeeds, then everyone will do the same, because the money comes too quickly. In the end, our country's real estate will become one snowball after another, and one real estate company after another will become bigger and stronger. Not only private enterprises, but also state-owned enterprises, central enterprises, and local enterprises will definitely come in. The money earned from running a good business in a year is not as much as the money earned from building a building. Who would still run a good business? At that time, all the funds will enter the real estate industry, and houses will be built all over the country, in big cities, small cities, counties, and villages. There are no restrictions. These capitals can build houses that can't be used up in several lifetimes. But the number of people who buy houses is limited. Sooner or later, the number of people who take over will run out, and the money in the wallets of ordinary people will be emptied. At that time..."

Xu Huasheng's words made Director Yun swallow his saliva. He could imagine how terrible that scene would be.

"Isn't this the case in Japan? We have also seen the final result. The real estate bubble bursts. In the next few decades, Japan's economy will stagnate and continue to pay off the debt owed by real estate. After this bubble bursts, the houses bought by countless families with their life savings will be worthless, and the money spent by ordinary people will become unfinished houses or even a wasteland. And those who made money from playing real estate will either be arrested or run away.Going abroad to have fun, what can the country do..."

Xu Huasheng's story made Director Yun immediately understand the routine of this game.

"So I said it's better to cancel the pre-sale system, strengthen supervision, and establish a supervision system to prevent this snowball from rolling. You developers take a piece of land, and the money obtained by using this land to borrow money can only go into the supervision account. This money can only be used to build this project and cannot be used for other purposes. Wait until the house is built, and then start selling the existing houses. In this way, even if the house price is high, at least it won't make our people empty their six wallets to buy a house and become empty-handed. Even if the house price falls in the future, at least they get a house and can live in it. You developers use the money obtained after selling the house to buy a second piece of land and continue to develop, avoiding the situation of making money out of nothing..."

"And in this process, strict supervision must be carried out, and responsibilities must be divided. Whoever supervises the money in the supervision account is responsible. For example, the pre-sale system is still adopted, and the developer does not use the money in the supervision account to build the house, but takes the money away for other reasons. As a result, the house is unfinished and cannot be delivered to the people. Then whoever is responsible for supervising the money needs to be responsible for building and delivering the house. You are the supervisor, no matter what the reason is, even if the developer is cheating, or the officials are colluding with businessmen, it is your internal fault. You can't say that you have no responsibility if your internal people are handed over to the law enforcement agency. You are asked to supervise the money, but the money is gone. You can't be free of responsibility for the employees' affairs..."

Xu Huasheng opened the conversation box and kept saying what he knew.

"Whoever supervises is responsible, this is right and natural."

Director Yun thought about it carefully and felt that it made a lot of sense.

"Yes, Chief, it's not just real estate, in fact, all industries should be like this. You are the supervisory department, you are the vested interest. Your department must bear the corresponding responsibility. For example, a senior executive of our Huasheng Group cheated the people's money in the name of our group and was finally arrested. Can our Huasheng Group just push all the responsibilities to the senior executives?"

Xu Huasheng asked back, and this made Director Yun look up at him.