Wolf of Xiangjiang

Chapter 70 [Investing in Gold]

The next day.

"Boss, the stock price of Taifu Group has changed. It has dropped 15% in the four trading days this week. Yesterday it closed at only HK$1.7 per share (total share capital of 8640 million shares). Obviously, it is Huang Sheng who is cashing out!" Chen Weizhong walked in and reported. road.

Lin Zhengjie raised his head and said: "I know this! At present, the stock price of Taifu Group is speculated by me. When the stock price is 2 Hong Kong dollars, it is extremely unreasonable. After all, Taifu Group has a market value of 1.7 million, which is very large."

What is the value of Taifu Group's assets?

Even if the property is worth 8000 million Hong Kong dollars (valuation), Modern Publishing House is worth 3000 million Hong Kong dollars, plus 5000 million in cash, the total asset value is only 1.6 million. How can this support a market value of 1.7 million?
The reason why we achieved the previous results was because there were very few individual stocks outside, and Lin Zhengjie was sweeping the market again.

Now, Huang Qisong has begun to cash out, and the stock price has naturally fallen sharply.

Chen Weizhong reminded: "I am worried that Huang Sheng will continue to sell a large number of stocks and continue to suppress the stock price. By then, it will not be good for the credibility of our company, and the relationship with the bank will also undergo subtle changes!"

Lin Zhengjie nodded, he had also thought of this. In the psychology of bankers - they are willing to lend to companies with good performance and promising prospects.

Therefore, in order to gain the trust of bankers, we must 'build momentum' in the stock market and show the brilliance of the 'Taifu Group'. In the same way, bankers will also consider whether the head of a listed company is worth investing in when choosing a loan target.

"I already have a countermeasure, you don't need to pay attention to this matter for now!"

"Ok"

Immediately, Lin Zhengjie said: "There is a vacant office floor in the Tiexing Building. I plan to let Taifu Group move its office there next year. You can arrange for someone to decorate it later."

The Tiexing Building is its own property, with 5000 square feet on the first floor, which is temporarily sufficient for the offices of the 'Taifu Group'. In the future, after the other owners of the Tiexing Building expire, another floor will be vacated and added to the office of the 'Taifu Group'.

Chen Weizhong looked impressed. After all, the boss was so young and already owned a building in Central.

"Well, I will arrange it. By the way, boss, the securities department has been set up. When will the new manager arrive?"

In just one day, the securities department has been set up and the efficiency is quite high.

Lin Zhengjie said: "We will officially report next week. At the same time, we will also buy the stocks of Cheung Kong Group and Sun Hung Kai Properties, involving an amount of HK$5000 million."

Chen Weizhong nodded and said, "Okay, I understand!"

He did not fight for any rights, but instead assisted Lin Zhengjie to control all the rights and departments of 'Taifu Group (formerly Yiren Real Estate)'.

At this time, the three major businesses of Taifu Group have been controlled by Lin Zhengjie's people: the property leasing department, the publishing industry, and the securities department. They have been replaced by Lin Zhengjie's people: Li Guoji, Ye Shaoliang, and He Fangtang.

Chen Weizhong understood that as the deputy general manager, he needed to further gain Lin Zhengjie's trust. At the same time, he also knows that Taifu Group has great development potential, and his status will naturally rise in the future.

After Chen Weizhong left, Lin Zhengjie fell into thinking.

It is a sound investment to use most of the cash flow of the Pacific Group, that is, 5000 million Hong Kong dollars, to buy the stocks of Cheung Kong Group and Sun Hung Kai Properties.

The current market value of both companies is around HK$10 billion, but their asset values ​​are already very high. Therefore, the market value of these two companies next year is expected to be 25 billion.

Such a rate of return is already quite high!
(PS: The actual amount is more than 28 billion. In 1979, the two companies increased by nearly 200%)

Lin Zhengjie and Ma Yawen arrived at the Hong Kong Gold and Silver Trading Center on Ma Sha Street in Sheung Wan, Hong Kong. When they walked to the door, they were guarded by Indian police with loaded ammunition.

Of course, Asia Securities has obtained a 'membership' here, so you can pass after showing your work permit.

In fact, although this is a 'gold and silver trading center', if there are robbers coming to make plans, they are bound to not gain much. Because there are spot transactions and futures transactions here. But even if it is a spot transaction, there will be no on-the-spot settlement here.

After walking into the gold and silver trading center, I quickly met He Ruisheng, a partner of Tai'an Development, who is the son of the founder of Baosheng Bank.

There was a young man beside He Ruisheng, who looked to be less than 30 years old. "Zhengjie, let me introduce to you. This is Hu Jingchang, the eldest son of Mr. Hu Hanhui, and the general manager of Lichang Gold. He is a little older than you, but you are all young people."

Hu Hanhui is the chairman of the Gold and Silver Trading Center and the founder and chairman of the Gold and Silver Stock Exchange. He owns Li Chang Jinhao, Li Xing Real Estate, and Yongchang Securities, and his industry spans the financial and real estate industries.

As the eldest son, Hu Jingchang inherited Hu Hanhui's "property of fortune" - Lichang Gold, as well as the status of the gold and silver trading center.

Don't underestimate Li Cheong Gold Co., Ltd. This gold company produces 70% of the gold bars of the "Gold and Silver Trading Center". It can be said to be the "HSBC Bank" of the gold and silver trading market.

"I have been hearing about Lin Sheng's deeds recently, and I was wondering if there would be a chance to meet him. I didn't expect that we would meet him so soon!" Hu Jingchang stretched out his hand and said politely.

The chairman of a listed company, who is only in his 20s, acquired the Railway Building in Central. These achievements can be described as "very impressive". Who would despise Lin Zhengjie at this time?

Lin Zhengjie said modestly: "Everyone is praising me. I am just doing a small business with my friends. I am not as young as Hu Sheng. We have already been to New York with Hu Weng to auction gold from the US treasury."

Hu Jingchang was immediately impressed and felt that Lin Zhengjie was a person and he knew so much about outside affairs.

In 1974, the United States sold gold from its treasury. Hu Hanhui and Hu Jingchang were the only Chinese participants. Of course, they were nominally representing the 'Hong Kong Gold and Silver Exchange'.

Later, Lin Zhengjie introduced his partner Ma Yawen.

Hu Jingchang said politely: "Ms. Ma is the heroine of Asian Securities, I have heard about it for a long time!"

Asian securities are still somewhat famous on stock exchanges because the trading volume is still relatively large. (Hong Kong’s trading volume in 1978 was approximately more than HK$270 billion, and the trading volume of Asian securities accounted for more than 1%)

After some small talk, the four of them came to the second floor of the patio (trading hall) and leaned on the railing, with a clear view of the transactions below.

Below is a patio of more than 3000 square feet. One to two hundred gold traders wearing yellow waistcoat uniforms, like Spanish matadors, are wandering in the hall, searching for their prey. On the walls surrounding the patio, there are densely packed telephones and closed-circuit televisions monitoring the entire place.

Mu Ranjian.

A trader standing in the middle of the patio raised his right hand, but several of his fingers were bent outwards and made a few gestures; then a dozen traders immediately rushed towards him and grabbed him tightly; he had quick eyesight and quick hands among them. Each of the five traders tapped him on the shoulder, and the crowd quickly dispersed.

It only takes a few seconds, but a transaction worth millions of Hong Kong dollars may have been completed.

When speculating on gold in the trade market, the unit of calculation is 100 taels, commonly known as 'one lot'. If the finger is bent outward, it means selling; if the finger is bent inward, it means buying. The price is also determined by gestures, and only the two digits after the price are indicated. When the seller taps the buyer on the shoulder, the deal is concluded, and then both parties write down the transaction amount in their notebooks. The market is closed for lunch and afternoon, and both parties go to the Computing Department of the trading center to register. It's just registration, you don't need to trade gold on the spot, but it will be officially traded three days later. So in these three days, if you sell the gold in your hand to others at a higher price, or absorb other people's gold at a lower price, then you will make a profit.

Because of this, spot trading and futures trading are possible here.

Since the Hong Kong government abolished gold controls in 1974, the gold here has been '99 gold', and the trading volume has suddenly increased.

At the same time, the world's five largest gold merchants contacted local banks and major Chinese gold merchants to establish a 'Local London Gold Market'; however, unlike the '99 Gold Market' and the 'Gold Futures Market', this does not need to be concentrated in a specific venue. The trading activities in the gold market adopt a similar method of "foreign exchange trading" and are mainly conducted through telephone, telegram and telex.

"Lin Sheng, what do you plan to do?" Hu Jingchang asked curiously after explaining.

Lin Zhengjie is very powerful. He is a very public "big speculator". He speculates in land, buildings, and stocks. News about this has been reported in newspapers recently.

Can you continue to win when speculating on gold today?
Lin Zhengjie smiled and said: "I am still a little cautious about gold, so I plan to trade it in spot and deposit it in a bank vault."

Hu Jingchang asked: "Then Lin Sheng is optimistic about the potential of gold?"

Lin Zhengjie nodded and said, "I'm really optimistic about it!"

Although they said this, He Ruisheng and Hu Jingchang didn't take it to heart. Today everyone was more about getting to know each other.

Lin Zhengjie also came to visit the pier to facilitate trading activities at the gold and silver trading center.

(End of this chapter)