I Want To Be a Rich Man on Hong Kong Island

  Chapter 533【Stock market crash】

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

  How much earned is undoubtedly what Wu Guangyao as the boss cares most about!

  Universal Building, group meeting room.

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

“Global Group’s net profit last year was 950 million US dollars, of which shipping was 775 million US dollars, ports were 150 million US dollars, and aviation was 25 million US dollars. Shipping dropped a lot again, ports began to exert strength, and aviation increased steadily.” Wu Guangyao presided over the meeting, and Said.

  Shipping has indeed dropped a lot. In the two peak years (1969 and 1970), the annual profit of shipping was as high as US$1.2 billion, a drop of almost 40%.

  Of course, it was also the oil tanker in the world, Wu Guangyao accounted for about 30%;

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

  So, starting in 1971, after the oil tanker's carrying capacity increased, the freight rate would naturally fall;

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

  Sundus asked: "According to this situation, there should be a sharp drop of 20% this year (1973). Could it be that the shipping situation is not good?"

Gao Ke of Global Shipping denied: "It is not that the shipping situation is bad, but that the shipping situation returns to normal levels! If the Suez Canal is not blocked, the 20 million-tonne fleet will have an annual profit of US$500 million to US$600 million. "

  For a fleet with a deadweight of 20 million tons, the cost of a new ship will be around US$3 billion;

  So, in the normal shipping age, it will be almost five or six years to pay back.

  Wu Guangyao said with a smile: "There are various factors. In short, we have no loans for Global Shipping. There is no need to worry about making more and less! This year we will leave 200 million US dollars as investment, and the remaining 750 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 senior executives also discussed the employee’s year-end bonus plan. This year, the minimum standard is based on three-month wages, and the maximum standard is five wages. Global Group has 13,080 employees and is expected to spend 150 million Hong Kong dollars."

  Shen Bi finished listening, and the corners of his mouth quivered immediately;

  Global Group only issued 150 million Hong Kong dollars in year-end bonuses, and HSBC made only 350 million Hong Kong dollars a year;

  This comparison, only to find out what the gap is!

   "Approve!" Wu Guangyao made a final decision.

  Changjiang Industrial, Zipper Group, Baiyou Group, Dongfang Group.

  After a lap, Wu Guangyao is busy and happy!

  Various companies have developed rapidly, and one by one cash cows began to bring a lot of money to Wu Guangyao.

  At this time, Wu Guangyao's bank deposits have reached 2.5 billion US dollars, close to 15 billion Hong Kong dollars.

  Hong Kong's stock market had a turnover of 17 billion Hong Kong dollars in 1971 and 50 billion Hong Kong dollars in 1972;

  In March 1973, Hong Kong’s stock market had reached a point of madness;

  In January, the transaction volume was 12 billion Hong Kong dollars;

  In February, the transaction volume was 13 billion Hong Kong dollars;

  In March, in the past 8 days alone, the transaction volume has reached 4 billion Hong Kong dollars;

  Entering March, Hong Kong’s stock market has become perilous due to excessive speculation;

  Some of the profitable stock market veterans, seeing that the momentum is wrong, have already begun to retreat;

  Only those newcomers who don’t know the height of the sky are still chasing the waves happily;

  Friday, March 9th, an ordinary day;

  Neither sensational good news nor significant influx of overseas funds, the Hang Seng Index climbed to a historical high of 1880 points due to excessive speculation, with a single-day trading volume of 800 million Hong Kong dollars.

  Such a situation has made many investors jump for joy, but they don’t know that a storm is about to come.

  At this time, Wu Guangyao has thrown away about 5% to 10% of all company shares he holds, making a total profit of 1.8 billion Hong Kong dollars.

  Even so, the market did not notice anything, because everyone was crazy.

  The total market value of Hong Kong’s stock market has reached 105 billion Hong Kong dollars, while Hong Kong’s GDP (1972) was only 35 billion Hong Kong dollars, with a per capita value of 8,060 Hong Kong dollars.

   One can imagine how crazy the stock market has become!

  Shareholders had a happy weekend, and the stock market opened on March 12 (Monday);

  However, the stock market caused panic due to the appearance of 3 fake stocks of Hopewell Industrial Co., Ltd.

  The consequence of panic is to trigger wave after wave of selling.

  Because of the problem of a few fake stocks, various stocks have fallen one after another. It can be seen that the Hong Kong stock market is inherently fragile and cannot withstand a little turmoil.

  1500 points

  1400 points

  1300 points

  By the end of March, the Hang Seng Index had fallen by 1,288 points. In 20 days, it had fallen by 600 points;

  At this time, the Hong Kong Government can no longer sit still, and if this continues, the economy of Hong Kong Island will become a disaster.

  The government and people in the market keep calling on investors to stay calm and not panic;

   even said that the stock market will soon stabilize and Hong Kong’s economic foundation is sound.

  Then it was of no avail. The market has panicked, and the so-called government intervention is useless.

  Due to the rapid decline in the stock market, and there are signs that it will impact the financial system and affect social stability, the heads of the four exchanges and major banks met with the Financial Secretary Xia Dingji 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 it has expressed support for some voluntary measures introduced by banks and exchanges.

  These measures are as follows:

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

  2. It is strictly forbidden for brokers to settle within 24 hours to suppress short-selling hype;

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

  4. Lift foreign exchange controls and restore market confidence in investment.

  Although everyone has made a lot of efforts, all efforts seem to be ineffective. The stock market has not turned around and rebounded, but has fallen deeper and deeper;

  The more everyone is like this, the more some investors panic and panic.

  The stock market disaster is coming!

  (End of this chapter)