Reborn as a tycoon in Hong Kong

The day after Lin Baicheng established Galaxy Bank, Standard Chartered senior manager Huo Yaohua and HSBC senior manager Shen Chow contacted him.

As Lin Baicheng guessed, the two people contacted him to ask about the future cooperation between his company and the two banks, and Lin Baicheng naturally said that he would continue to cooperate with the two banks.

Although Galaxy Bank was established, it is now only a small bank and has not even completed its merger and reorganization. Besides, even if Galaxy Bank completes its reorganization and develops into a bank that is not inferior to HSBC and Standard Chartered, Lin Baicheng will still have to cooperate with other banks.

It is true that Galaxy Bank belongs to Lin Baicheng, but it does not mean that Lin Baicheng can loan all the depositors' money in the bank to companies under his name in the future. This is not allowed by law.

Galaxy Bank can lend money to companies under Lin Baicheng's name. First of all, Galaxy Bank can use its own funds to lend as much as it wants to other companies under Lin Baicheng's name. After all, the money belongs to Lin Baicheng, so it is left to the right.

However, depositors’ money in Galaxy Bank is different. In order to lend this part of the money to a company under Lin Baicheng's name, the loan company must meet the bank's loan conditions, and the loan funds cannot exceed a certain proportion of the depositors' total funds.

Otherwise, if the company under Lin Baicheng's name goes bankrupt and the bank cannot collect the loan, causing the bank to go bankrupt, what will happen to the depositors' money?

Therefore, if the company under Lin Baicheng's name needs a loan, sometimes it is better to go to another bank for a loan. On the contrary, his own bank needs to deal with business matters and cannot provide excessive loans to avoid violating the truth and violating the law.

It would be different if it were another bank. Take the Jupiter Toys company as an example. If this company wants to loan 100 million Hong Kong dollars, it is usually impossible to get such a loan because the company is not worth that much money. But relying on Lin Baicheng's face and assets, he was able to get so much money from HSBC and Standard Chartered, which was not convenient for Galaxy Bank to do.

Therefore, although he established a bank, Lin Baicheng never thought about not cooperating with other banks. Cooperation was still necessary.

Hutchison Whampoa.

Lin Baicheng was working in the office, and Wei Li came to see him.

"Mr. Lin, except for HSBC's 500 million Hong Kong dollars, all the company's debts have been paid off. As for Watsons, I believe President Cheng has also reported it to you. Now it is in the process of orderly delisting. I believe Watsons will be delisted soon. It will become a wholly-owned company of the group.”

"I know all this. I don't think you came here to tell me this?"

Lin Baicheng nodded when he heard this. He already knew the two things Wei Li said.

"There is something I need to report to Mr. Lin and ask for your opinion."

Weili said aloud: "You asked the company to focus on developing real estate and retail industries, of which I am mainly responsible for the real estate industry. The company's land is mainly industrial land, which means that these lands can only be built on factories. If you want to If it is converted into commercial land, the price difference must be paid to the Hong Kong government."

"Of course, the company also has a lot of commercial land, but with the company's current scale and investment in real estate development, those commercial lands can only be developed until next year, and the company will face the dilemma of having no land available."

"The Hong Kong government hosts land auctions every month, and companies will also participate in them. However, there are many real estate companies auctioning land, and it is difficult for companies to acquire too many plots. And if a large number of plots are auctioned at too high a premium, let alone The issue of whether it is cost-effective and offending too many peers will be detrimental to the development of the company."

"Therefore, I would like to ask Mr. Lin for your opinion. Should you choose to pay the difference to the Hong Kong government and convert the industrial land into commercial land? Or should you slow down the development of the real estate industry and auction the land while developing your own commercial land?"

"That's something I didn't expect."

After hearing this, Lin Baicheng thought to himself that after acquiring Hutchison Whampoa, he only looked at the land area owned by Hutchison Whampoa, but did not pay attention to the use of the land. After all, he had never done real estate development before, and he did not think about the use of industrial land. There is such a thing as unauthorized conversion of land for commercial use.

Lin Baicheng originally thought that all the land under Hutchison Whampoa's name could be developed into office buildings, residential areas, etc. It was nothing more than developing different buildings according to the location of the land. Unexpectedly, this is not the case. Hutchison Whampoa's land is more industrial land. If you want to convert it into commercial land, you must spend money to pay the difference to the Hong Kong government.

"Weili, what do you think?"

Lin Baicheng asked aloud. He wanted to hear Wei Li's opinion.

Wei Li had already thought about this before coming here, so he said: "The development of every industry has its peaks and troughs, and the real estate industry is no exception. Now it is the time for the real estate industry to move upward. At this time, Hong Kong It is actually not cost-effective for the government to pay the price difference. When house prices collapse and land prices also plummet, it is the best time to ask the Hong Kong government to pay the price difference and change the land use, because then the money required will be lower."

"And Mr. Lin, if you are firmly optimistic about Xiangjiang's real estate industry and believe that land prices will rise in the next ten years or even longer, you can also choose to pay the difference to the Hong Kong government now and then develop the land."

"I'm afraid that after we pay the price difference to the Hong Kong government, it will take another one or two years to develop the land, and then housing prices will start to fall within a few years, and the company will suffer huge losses."

"What you said makes sense. We should wait until the real estate industry recovers to make up for the price difference."

Lin Baicheng knows very well that the real estate industry in Xiangjiang will rise in the long run for decades, but he knows better that when China and Britain start negotiations on the return of Xiangjiang, the real estate industry in Xiangjiang will inevitably fall sharply, and it will not be too late to make up the difference at that time.

"Mr. Lin, in fact, in addition to developing our own land, we can also purchase shopping mall buildings and hold them, charging fixed rents every year. If housing prices continue to rise, we can also benefit."

Wei Li made a suggestion. After discussing with his subordinates, he believed that this was a way to expand the company's real estate industry.

"Acquisition?"

Lin Baicheng was moved when he heard this. Under the situation that the company cannot develop a large amount of its own land, external acquisition is indeed a way of development. Although the company currently does not have much self-owned funds, it can obtain a loan from a bank to purchase a building and sell it in a few years. The profit will definitely be higher than the bank's interest rate.

"Then let's make external acquisitions. You can discuss the targets to be acquired and report to me then."

Wei Li nodded: "Okay, Mr. Lin, we will report to you in a few days."

Soon after, Weili said goodbye and left the office.

Although the development direction of Hutchison Whampoa has been adjusted, from completely self-construction to self-construction plus external acquisitions, the development direction has not changed, and the real estate industry is still focused on expansion. It will definitely cost more money to acquire already built buildings or shopping malls from outside, but you will definitely not lose money if you hold on to it. It is perfectly fine to keep the company's land for future development. The later it is developed, the more money it can make.