Chapter 603
Investment
In April 1988, rumors circulated in the market that a Chinese consortium had acquired a substantial number of shares in Hongkong Land and intended to send a letter to Hongkong Land requesting the addition of a motion to appoint New World Chairman Cheng Yu-tung and Henderson Land Chairman Lee Shau-kee as directors of Hongkong Land at the annual general meeting on June 6.
Upon the news, Hongkong Land's share price immediately soared to HK$9.5, and there were subsequent weekly rumors about the acquisition.
Chen Wenjie was also among the members of this Chinese-owned consortium, but he was not the leader; it was initiated by Cheng Yu-tung and Lee Shau-kee.
Chen Wenjie naturally knew that the Chen family had already received enough benefits and would not continue to coerce the British capital; however, he could not refuse the enthusiastic invitation from the Chinese capital, so he joined in, but only by providing manpower without contributing any effort.
Regardless, only six months after the '1987 stock market crash,' Hong Kong-based Chinese capital is already eager to continue acquiring British-owned Jardine Matheson, demonstrating that Jardine Matheson's assets remain highly coveted.
In this life, Hongkong Land has actually lost prime properties such as Exchange Square, Jardine House, and Star House, as well as a significant portion of its retail business, leaving it with only 60% of the value it had in its previous life.
However, there's no way around it; Hongkong Land still owns seven or eight high-quality Grade A office buildings in the heart of Central, making it the envy of many.
"Mr. Chen, you don't seem to have much hope for this acquisition of Hong Kong Land?" In Cheung Kong's office, Mr. Rong, the general manager of 'Hong Kong Huaxin', who had come to discuss matters, raised a question.
Chen Wenjie sat on the sofa with a slight smile, but said in a reserved tone, "It all depends on human effort! However, Jardine Matheson and Landmark have recovered from their predicament and their strength should not be underestimated."
However, the first sentence inevitably gave people a sense of hypocrisy, so a sentence was added.
Young Master Rong nodded and said, "That's true, but it's always true that things can be accomplished by human effort."
He was quite proactive, and more or less had a sense of 'relying on his power'.
In reality, Chen Wenjie did not want the Chinese consortium to successfully acquire Jardine Matheson. Just as his father said, it would not be a good thing for Hong Kong to be without British capital.
Their family views these issues from a 'higher level' perspective. Therefore, in this acquisition by the Chinese consortium, Cheung Kong Holdings only holds 5%, while Hong Kong's CEFC Holdings holds 10%. This shows that Chen Wenjie was not interested in the acquisition and participated purely out of consideration for the Chinese consortium.
Then, Rong Gongzi looked at a 'tender document', which was a tender document for the 'development rights above the Lantian Metro Station'.
"Mr. Chen, this project is a great one, we absolutely must secure it this time!"
Two years ago, he took over as general manager of CEFC Hong Kong and began to make great strides.
Today, CEFC Hong Kong owns 12.5% stakes in both Hong Kong Airlines and Cathay Pacific, 33.3% stake in Asia Satellite Communications, 24.5% stake in the Eastern Harbour Tunnel, 20% stake in Macau Telecom, and also has property investments.
By securing the development rights for the Lam Tin MTR station, he has aligned himself with CK Asset Holdings, clearly aiming to ride the fast track to success.
Chen Wenjie calmly said, "There's no project that's guaranteed to be won, but we're very confident in our bid. Rong Sheng, don't worry!"
Seeing Chen Wenjie's calm and composed demeanor, Young Master Rong suddenly felt a pang of jealousy.
Speaking of which, the two families have quite a history. Sir Chen Guangliang and his uncle and grandfather met in Shanghai Beach, and he can be considered their junior in the business world.
By this calculation, Sir Chan Kwong Leong is of the same generation as his father. The two had met before the 1980s. In 1978, Sir Chan Kwong Leong briefly served as a director of Huaxin before passing the position to his son, Chan Man Kit, two years later.
Both families were once 'industrialists' and 'wealthy families' in the 1930s in Shanghai, but now the Rong family is clearly far inferior to the Chen family.
The Chen family is now a leading family among overseas Chinese with enormous influence, and the Ningbo Chamber of Commerce, which it leads, has become the world's largest and most influential Chinese chamber of commerce.
The Rong family was only highly regarded domestically.
"Good, with Mr. Chen's words, I can rest assured!"
Although Mr. Rong was eager for this project to bring huge profits to Huaxin Hong Kong, they were not familiar with real estate development, even though they held the same number of shares. Therefore, they prioritized Cheung Kong Holdings.
Later, Chen Wenjie saw Rong Gongzi off from the office, showing him great respect.
After closing the door, Chen Wenjie stopped worrying about it and called over Lu Xiaoqing, the real estate manager.
“Brother Xiaoqing, there’s nothing wrong with this bid. You can submit it.”
Lu Xiaoqing is the son of Lu Yuantai, the former head of construction at Cheung Kong Holdings. He is five years older than Chen Wenjie and is now 60 years old. Currently, Lu Xiaoqing still serves as the head of real estate at Cheung Kong Holdings.
"Okay, Mr. Chen."
Lu Xiaoqing then continued his report: "We have a very good chance of winning this project. If we win this project, Cheung Kong Holdings will have a plan to own 'five large housing estates' in the 1990s, and our market share is expected to increase significantly."
Today, CK Asset Holdings supplies approximately one-seventh of the residential buildings in Hong Kong.
But Cheung Kong Holdings' 'five large-scale housing estate projects' are indeed very ambitious:
First, the site of the former HK Electric power plant in Ap Lei Chau was developed into 'Harbour Peninsula', with approximately 35 buildings and about 10000 residential units.
Secondly, Laguna City in Cha Kwo Ling. In fact, Laguna City in Cha Kwo Ling and South Horizons in Ap Lei Chau were acquired through a combination of Hutchison Whampoa's joint venture, United Dockyard, exchanging shipyard land in Tsing Yi with Shell Oil Company's oil depot land in Cha Kwo Ling and Ap Lei Chau, and the relocation of a power plant by Hong Kong Electric Holdings from Ap Lei Chau to Lamma Island. Laguna City is planned to consist of 55 residential buildings, providing over 8,000 residential units and accommodating 25,000 residents.
Third, the Tseung Kwan O Waterfront Garden is a joint development with Wing Cheung Heavy Industries, a subsidiary of Cheung Kong Industrial Group. It is expected to consist of 60 buildings with 12000 residential units, accommodating 4 residents.
Fourth, the 'New Fung City' in Tsuen Wan is a joint development by Cheung Kong Holdings and New Fung Textile, a subsidiary of Cheung Kong Industrial Group. It is expected to consist of 50 buildings with approximately 10000 residential units, along with a large commercial area.
Fifth, there is the 'Blue Sky MRT Station Development Rights' which will be put out to tender soon, also known as 'Huijing Garden', which will build 20 residential buildings of 28 to 34 stories high, providing approximately 4,100 units.
The five projects will further increase CK Asset's market share, which is expected to reach up to 20%.
But there's no way around it; these are almost all 'reserve lands' of Cheung Kong Holdings or its affiliated companies. Cheung Kong Holdings has begun to lose interest in acquiring land from the market or auctions.
Chen Wenjie said, "Over the next ten years, Cheung Kong Holdings will be able to solidify its position in Hong Kong's real estate development. Therefore, we need to be cautious when acquiring land, or even temporarily suspend it."
"Ok"
After Lu Xiaoqing left, Chen Wenjie fell into thought.
He didn't have much sentimental attachment to the old family ties with the recently departed Rong Gongzi, and his cooperation with Huaxin was purely to build good relations with the domestic market.
Rong Gongzi came to Hong Kong in 1978 and is now not only the general manager of CEFC Hong Kong, but also a multi-millionaire. Therefore, some people say that his experience is legendary.
In reality, Young Master Rong's success was entirely due to his ancestors' influence.
The Rong family business split in two in the 1930s. The eldest brother, Rong Zongjing, moved to Hong Kong in the 1930s due to being kidnapped by the Nationalist government and other reasons, handing over the mainland business to his brother-in-law, Rong Desheng. Therefore, after the Jin Dynasty, the Rong family business was also divided into overseas and mainland branches.
Rong Desheng's lineage has members who have developed in Hong Kong, Brazil, the United States, and mainland China, and they are all scattered around the world and doing quite well, a typical example of betting on various fronts.
The branch of Rong Desheng that remained in mainland China has become a top-tier "official-businessman".
So when Mr. Rong came to Hong Kong in 1978, he first stayed with relatives.
His father held shares in some textile companies in Hong Kong. These textile factories, originally located in Shanghai, had been moved to Hong Kong shortly before the JF (Nationalist government). Rong never touched the dividends, and after nearly 30 years of growth, these textile shares are now quite valuable (two descendants of Rong Jingzong own textile factories in Hong Kong). However, the Hong Kong textile industry was in decline, so Rong's son resolutely sold his shares to raise capital. He then used this capital to start an electronics factory with his brothers Rong Zhixin and Rong Zhiqian. Rong's son served as the factory manager, and the products were sold to the mainland, where business flourished. Rong's son's shareholding increased from one-third to sixty percent initially.
This electronics factory was acquired by an American company for a high price. Young Master Rong showed no sign of regret at losing his empire. "The price is right, why not?" This privately held, unlisted company should have been protected at all costs, but Young Master Rong didn't act that way.
Rong Gongzi used a $200 million loan to make a pioneering investment in a computer-aided design company in the United States. The investment proved successful, and two years later, in 1984, the company went public in the US, becoming the first such company to do so.
Knowing when to quit while the opportunity was right, Rong Gongzi unexpectedly sold his shares, netting US$48 million, approximately HK$370 million. Combined with the HK$56 million he received from the sale of his Hong Kong electronics factory, Rong Gongzi's net worth had reached over HK$400 million. In just six years, he multiplied his capital many times over—clearly, Rong Gongzi has a natural talent for business. Of course, without his father and overseas relatives, his business wouldn't have been so successful. Among the new immigrants, there are many talented businessmen, but they are all penniless; where would they find start-up capital and large loans?
"It seems legendary, but it's mostly about human relationships!"
Chen Wenjie muttered something to himself.
He didn't look down on Young Master Rong; he was just stating the facts.
His father was doing a lot of charity work in mainland China, but he didn't see it as an investment in "favors." After all, given the influence of the Chen family, even without donations, they would still need to be actively courted in mainland China.
My father often said, "We are all compatriots! Besides, we are rich, and our compatriots are at their poorest time. So this is like sending charcoal in snowy weather."
Having been exposed to the world, Chen Wenjie knew that the mainland would definitely experience economic take-off in the future, but he just hadn't fully found his own path yet.
"Mr. Chen, it's time for your trip to Singapore!"
"it is good"
The assistant reminded Chen Wenjie.
Chen Wenjie needs to go to Singapore to participate in the investment of Singapore's largest real estate project, 'Suntec City'. Although CK Asset Holdings is not the lead company in this project, it still holds a 15% stake.
He went there in person mainly to meet with some wealthy friends and Singaporean tycoons, not because he valued the project that much.
The Serenity is a superyacht.
Sunlight.
The sea.
beauty.
Chen Guangliang, dressed in light clothing, sat under a parasol on the deck, accompanied by three women: Wu Guofang, Li Jiaxin, and Li Jiaming.
The relationship between the three is complicated because Chen Guangliang's relationship with Li Jiaxin and Li Jiaming is public, while his relationship with Wu Guofang has crossed the line.
Of course, the only 'official girlfriend' is Li Jiaxin, Chen Guangliang's girlfriend.
Li Jiaxin followed Chen Guangliang for a year, receiving a total of HK$5000 million in funds and a lot of investment advice. Currently, their assets are over HK$2 million, making them extremely wealthy.
Of course, the debt ratio remains high, around 60-70%.
"Sir Chen, Hongkong Land's stock has risen by more than 40%! You really know everything without even leaving home!" Wu Guofang said excitedly.
At this moment, she had already let down her guard against Chen Guangliang, and the market advised Li Jiaxin to be loyal.
Chen Guangliang said, "We can throw it away now."
Wu Guofang said in surprise, "Didn't they say that Huazi Group was in the process of acquisition, and Cheung Kong was also a member? So the acquisition battle hasn't even started yet?"
Chen Guangliang said, "I told you to throw it away."
Wu Guofang quickly replied, "Yes, I'll listen to you!"
Li Jiaxin quickly took Chen Guangliang's arm and said sweetly, "Mr. Chen, don't be so fierce to Mommy!"
Chen Guangliang, right in front of everyone, reached into Li Jiaxin's chest and said with a smile, "If you're disobedient, you naturally have to be strict. Are you hiding something from me?"
Li Jiaxin felt uneasy under Chen Guangliang's gaze. After a while, she finally said in a huff, "What's wrong? It's just that I signed up for the 'Miss Hong Kong' pageant. I just want to see how I am!"
Chen Guangliang learned from Li Jiaming that Li Jiaxin had secretly gone to participate in the Miss Hong Kong pageant, which was obviously not allowed. He rarely pursued already famous celebrities, for fear of being discovered by the media and reporters.
As for ordinary people, they don't receive much attention, so the three women, Kwan Ka-wai, Lee Chi, and Cheung Man, intervened in advance and recruited them.
"Withdraw from the competition immediately"
"WHY? I just want to make myself more valuable so that you will truly value me. I don't want to be just one of your many girlfriends; I want to be the most important, even the only one."
Li Jiaxin lost her composure; her face was now very stubborn.
She didn't lash out because Chen Guangliang's influence was too great and he was usually too authoritative.
Chen Guangliang said calmly, "This isn't a discussion with you, it's an ultimatum!"
Li Jiaxin said angrily, "I'm going to choose! I'll become Miss Hong Kong, and then I'll be your lover, your only lover!"
Chen Guangliang remained silent, but gave Wu Guofang and Li Jiaming a look. The two women quickly took Li Jiaxin's arm and led her into the cabin to begin their persuasion.
“Jiaxin, Sir Chan could never like a girl who is constantly in the media spotlight. His status doesn’t allow it, and neither does his family.”
“Mommy, how do you know it’s impossible if you don’t try? I should at least show the value I should have.”
Age doesn't matter; even if Chen Guangliang publicly acknowledges her as his 'young girlfriend,' she is still very happy.
“Jiaxin. Sir Chan will cut off our living expenses, and we will suffer losses if we cannot repay the subsequent loans for those properties. Moreover, he will not compromise with you. Why don't you wait another two or three years before running for office again?”
Li Jiaxin was stunned. It turned out that her family had already been manipulated.
She was somewhat unwilling to accept it!
"Would he really do that?"
"Hasn't he already made that clear?"
Li Jiaxin was powerless to resist. If their food supply were cut off, it would be an irreparable loss.
Li Jiaming seized the opportunity to say, "Jiaxin, and don't forget, even with his status and position, if he just puts in a good word with TVB, you might not be able to get elected based on your own merit. I heard that Sir Chan and Sir Chong are in-laws."
Li Jiaxin felt even more helpless and could only say, "I won't choose."
Li Jiaming immediately smiled and said, "Then go and fawn over Sir Chen, he won't really make things difficult for you."
No, Li Jiaxin came to Chen Guangliang again and took the initiative to fall into Chen Guangliang's arms.
Chen Guangliang didn't stand on ceremony, covering her breasts with his large hand and saying, "These still grow fast over the past year."
Upon hearing this, Li Jiaxin was both happy and embarrassed. This was being done in front of everyone, but she couldn't resist and could only let her dignity be broken step by step.
That night, Chen Guangliang invited Li Jiaxin and Li Jiaming to his room for a serious discussion about life. (End of Chapter)