Chapter 629
On the Eve of the Dot-com Bubble
Although Hong Kong won the financial battle, the impact of the Asian financial crisis on Hong Kong is still enormous, and an economic downturn is inevitable.
But the key question is, in which year can Hong Kong turn things around? (In its previous life, its GDP didn't surpass that of 1997 until 2005.)
Of course, the faster the better. For example, South Korea in the previous life quickly turned the situation around after the millennium by using export trade.
Singapore also rapidly closed the gap with Hong Kong after the Asian financial crisis, eventually overtaking it.
Of course, Hong Kong in this era already has multiple 'economic engines' and will inevitably turn the situation around quickly, just like South Korea and Singapore.
First, the "Culture Revitalizes Hong Kong" strategy proposed by Chen Mengyi of the media group has been incorporated into the overall strategy.
Currently, Hong Kong pop culture has a wide influence in Asia and boasts a huge fan base. Hong Kong dramas are exported in large quantities to Asian countries and regions; Hong Kong idols routinely hold concerts overseas; Hong Kong programs are not only sought after by Asian television stations, but also by European and American television stations. Hong Kong remains one of the world's top three exporters of game software. In addition to arcade and console games, it now leads the way in PC games and online games, with many PC games such as "Resident Evil" and "Age of Empires" ranking in the top ten of the best-selling charts. Comics, of course, are now number one in the world, while Japan has become a copycat. This huge cultural industry not only drives foreign exchange earnings, but also boosts tourism, retail, and many other sectors.
Secondly, there was the "Technology-Driven Hong Kong Development" initiative spearheaded by the Cheung Kong Industrial Group. Entering the 1990s, Hong Kong continued to produce a constant stream of inventions. From VCDs to DVDs, to PHS phones, MP3 players, and USB flash drives, all were "patented products" of Hong Kong's Midea Electronics. Yacht manufacturing and lithium-ion battery-powered commercial power tools, leveraging the mainland market and resources, allowed Hong Kong, despite its small size, to remain a leading city in innovative technology. This wasn't limited to innovative technology; it also extended to the internet sector, with Hutchison Whampoa investing in local portal websites (entering the mainland), travel websites, and the ICQ social networking site. Even the mainland was copying Hong Kong's internet practices.
Finally, Hong Kong's accumulated strength over the years will surely allow it to emerge from the mire soon.
(For example, Hong Kong's GDP in 1997 was US$2360 billion, which was 33% higher than in the previous generation.)
The more wealth a society has, the easier it is to revitalize the economy; a little 'temptation' can bring a large amount of capital into a particular market.
Of course, the Hong Kong government has also put forward some slogans, including the "Chinese Medicine Port" proposed by Governor Tung, as well as some other measures.
In short, everyone is trying their best to revive the economy and revitalize Hong Kong's economy, and the recovery needs to be rapid.
Time flies, and a year has passed in the blink of an eye.
It was the beginning of August 1999.
The 70th floor of the Ping An Bank Tower in Central is the 'Chen Guangliang Family Office'.
In the conference room, several second-generation members of the Chen family gathered together, including Chen Wenjie and Chen Wensheng from the first branch, Chen Wenjin, Chen Wenhua, and Chen Wenhai from the second branch, Chen Wenou from the third branch, and Chen Wenying from the fourth branch, a total of seven brothers attending the meeting.
In fact, all eleven brothers in the Chen family are 'permanent directors' of the family office, and Chen Wenjie has taken over as 'chairman' this year, replacing his father.
This council is the family office's 'second largest authority' and 'de facto management'.
The family office’s ‘first power body’ is actually the ‘family assembly’ composed of all adult family members, but this assembly has never been held.
At the start of the meeting, Chen Wenjie looked at his brothers and said gently, "The main reason we've gathered here today is to discuss the matter of 'cashing out internet investments'."
Everyone's eyes lit up. They believed this was an instruction from their father, who would always be their pillar of support.
Chen Wenhai immediately asked, "Brother, is that Father?"
"You little rascal!" Chen Wenjie laughed and said, "Do you really suspect me of forging an imperial edict?"
Chen Wenhai immediately responded with a smile, "We'll listen to what our elder brother says."
Everyone laughed. Although the old man was still in good health and had even fathered an illegitimate child last year, everyone had begun to adapt to the era of 'the eldest brother in charge'.
Chen Wenjie said seriously:
"Alright, let's get down to business first. Each branch of the family should report on the results of our internet investments. I'll start on behalf of the family office."
"Currently, the family office holds 0.8% of Microsoft, 1.5% of Yahoo, and 0.88% of Cisco, totaling $121 billion based on last weekend's market capitalization."
Chen Wensheng then said, "I used Ping An Investment and Barings Bank to invest in Yahoo, AOL, and Amazon respectively. The investments are relatively diversified, with a market value of about US$35 billion."
He represented the main branch of the family in this investment, but the main battleground was still in Asia, with Hong Kong as the primary focus.
Chen Wenhua continued, "I personally invested in this internet sector, holding approximately four billion US dollars in assets."
His company, United Madison, is a large publicly traded American investment firm that hardly touches the internet sector, focusing instead on pharmaceuticals and consumer goods. Its market capitalization is as high as $330 billion, although he now only holds 41% of the shares. Nevertheless, he remains a prominent figure on the rich list.
Meanwhile, his unlisted assets have exceeded 10 billion US dollars, getting closer and closer to the market value of his holdings in United Madison.
Chen Wenhai continued, "I mainly hold 1.5% of Microsoft, 1.35% of Cisco, 12% of Apple, Oracle, etc., with a total value of US$160 billion."
He is a board member of Apple and also invested in Microsoft and Oracle in the past, making him a top investor in Silicon Valley. In recent years, his net worth has grown very rapidly.
Chen Wen-ou then stated, "Our third family holds approximately US$60 billion in internet and telecommunications equity, with half in telecommunications. Regionally, the US only accounts for half; the majority is in the internet sector."
Finally, Chen Wenying said, "We are the largest shareholder of Yahoo. The market value of Yahoo alone is over 90 billion US dollars, and we also have about 40 billion US dollars in other internet companies."
After all the calculations, the Chen family holds approximately US$500 billion worth of internet stocks.
Chen Wenjie then said, “Let’s start cashing out. Starting in September, we will withdraw our respective internet stocks in batches over eight months. Of course, if you, Wenhai, hold Apple stock, you must reduce your holdings to ensure your board position. As for the cashing out of the family office, the seven of us brothers will be mainly responsible for it. The cashed-out funds will be mainly used to purchase gold and repay loans to each branch of the family.”
"yes, Sir"
The family office cashed out at least HK$100 billion this time, which coincided with the period between 1998 and 2003 when it needed to purchase HK$100 billion worth of gold.
By gradually cashing out over eight months, not only can the impact on the market be reduced, but higher returns can also be obtained, since the dot-com bubble has entered its peak phase.
Jia Hui Group was originally a listed company—IT Apparel Retailer—which gradually developed into a comprehensive enterprise engaged in apparel retail, real estate investment, and securities investment.
Of course, the most famous thing about this listed company is that its chairman is a stunningly beautiful woman named Guan Jiahui.
Even though Guan Jiahui is 37 years old this year, she still looks like she is only 27 or 28 years old, which is exceptionally eye-catching.
At the board meeting of Jia Hui Group.
President Li Songcheng reported: "The Ho Tung family plans to sell the Tung Ying Building in Tsim Sha Tsui for HK$12.8 billion."
Upon hearing this, all the directors looked at Kwan Ka-wai; this was an important decision.
Of course, at its peak, the market value of the Jia Hui Group was over HK$50 billion, back in 1997.
Although the Hong Kong property and stock markets subsequently plummeted, the Jia Hui Group clearly had expert guidance and promptly cashed out a large amount of properties and securities, obtaining nearly HK$2 billion in cash flow.
After holding onto this cash flow for a year and a half, Jia Hui Group once again invested in bottom-fishing, a strategy formulated by Guan Jia Hui this year.
At the same time, Jia Hui Group no longer buys up entire floors of office buildings or luxury shops, but instead tends to buy up entire buildings.
And here comes the opportunity!
Seeing that the situation was not good, the Ho Tung family saw some improvement (Hong Kong's economy recovered somewhat), so they rushed to sell their properties and go overseas or scatter to different places.
Guan Jiahui's heart fluttered. She was so anxious that when she was taking care of the old man, he said that there was no shortage of high-quality properties in the future, and that she just needed to wait patiently. He also pointed out that the Ho Tung family's properties were very likely to be sold off.
You're incredibly insightful!
She immediately said, "This is a great property, located in a prime location in Tsim Sha Tsui. I've decided to buy it. President Li, please go and discuss the details!" She trusted Li Songcheng very much because he was the CEO 'poached' from the Chen family business to replace the original CEO.
"Yes, Chairman."
The entire board meeting was one-sided, but it was remarkably harmonious.
It's very simple. 70% of the shares of Jia Hui Group are held by Guan Jiahui and Li Jiaxin, with Guan Jiahui holding 55% and Li Jiaxin holding 15%.
In addition, Ping An Investment became the third largest shareholder with an 8% stake, and the director it appointed was symbolic or had a guiding role.
After the meeting, Li Jiaxin went to Guan Jiahui's office and said jealously, "You seem to have it so easy being the chairperson. I feel like I could do it too!"
The two have maintained their love-hate relationship for so many years.
Guan Jiahui laughed and said, "You think it's that simple! As the chairman, I have to come to the company to clock in regularly, unlike you who can spend all day shopping or traveling. You should be content!"
Upon hearing this, Li Jiaxin immediately forgot her jealousy and, like sisters with Guan Jiahui, discussed the recent bargain-hunting situation.
Although they intend to purchase entire properties, they are ruthless in buying up entire floors of office buildings, prime shops (Central, Causeway Bay, Tsim Sha Tsui), luxury homes and villas in Central without hesitation.
With the large amount of cash they cashed out at the peak in 1997, and with the strong support of Ping An Bank and Hang Seng Bank, the two women are able to each acquire assets worth tens of billions (property + securities).
Once the next wave of momentum begins, both women will become 'super billionaires'.
At this time, Guan Jiahui's eldest son was almost 16 years old, but had not yet gone abroad to study, while her youngest son was only 12 years old.
As for Li Jiaxin, her eldest son is only 10 years old, and her youngest is only 1 year old. She forced him to have the child last year, and he was almost taken for a paternity test.
Fortunately, Chen Guangliang wasn't old and could tell at a glance that it was his bloodline; it was quite obvious.
In the sweltering summer, swimming pools are the coolest place, and the ocean is the largest natural swimming pool on Earth.
Chen Guangliang, who is about to turn ninety, still refuses to admit his age and stands on the diving platform of the "Ningjing" ship, ready to jump into the sea for a swim.
Six top-tier young Chinese and Western beauties are cheering for him, providing a very strong emotional impact.
Meanwhile, the bodyguards and maids are also holding fast to their posts, ready at any time.
"puff"
Splashes of water rose up, her perfect swimming style and powerful body made her feel like a fish in water in the ocean.
"Shipping magnate, shipping magnate, sea king, sea king!" an excited female voice shouted in English.
She is Donatella. Although she is 44 years old this year, she is still charming and beautiful, a true beauty. Her perfect figure and snow-white skin are just some of her advantages; it is her Italian-style demeanor that is most admirable.
Donatella made no attempt to hide her adoration and madness; as she waved her arms, her grandmother danced up and down and joined in the shouting.
"puff"
But Monica, unwilling to give up, jumped into the water and chased after Chen Guangliang.
"Damn it, don't let that woman get there first!"
In no time, the six women jumped into the water. Even though they hadn’t dared to swim in the ocean before, they had long since developed excellent swimming skills after spending so much time with Chen Guangliang.
Not to mention, at this moment, four motorboats and two small yachts are providing comprehensive protection on the sea.
Seeing their 90-year-old boss cuddling and playing with his lover in the sea, the bodyguards and maids were naturally used to it. They were also professionally trained to work for their boss.
When Chen Guangliang boarded the deck, the young maid immediately used a towel to wipe his body. Two maids even wrapped a towel around him, while another young maid took the opportunity to change his swimming trunks into clean shorts. Everyone seemed very professional, but there was something clearly unusual about it.
These maids, despite seeing their boss's private parts, still maintained their professionalism. In reality, most of them had been sexually assaulted to some extent, and those who were unwilling generally wouldn't have been in this position; of course, I haven't encountered any who were unwilling so far.
Sitting on the recliners, the six women changed their clothes and came out after a while, making it a world-class beauty pageant scene.
The children also gathered on the boat, but they didn't get involved in the adults' affairs.
“Starting this month, our family office will cash out its investments in US internet companies. We expect our family office assets to reach $50 billion next year. At the same time, I have instructed the family office to begin long-term investments in physical gold, with an expected investment of approximately 200 tons.”
The larger family office invested 1150 tons, and the smaller one invested 200 tons, totaling 1350 tons of gold. The entire process is expected to take 5-6 years.
Upon hearing this, everyone was greatly encouraged.
Six women, twelve children. Actually, Li Jiaxin's older sister also had a child, but Chen Guangliang did not accept her into the family office.
Donatella's eyes lit up as she asked, "What about those US stocks that Monica and I own?"
"Cash out in batches over eight months, regardless of how much the market goes up or down."
"Yes, we'll do as you say."
Donatella and Monica each hold $8 million worth of internet stocks, bringing Donatella's total wealth to over HK$120 billion and Monica's to approximately HK$100 billion.
Next, Li Zhi and Zhang Min reported on their situation. The two women mainly invest in mainland China, Hong Kong, and Singapore, and their combined net worth is estimated to be between HK$80 billion and HK$100 billion.
As for Kwan Ka-wai and Lee Ka-yan from Hong Kong, both women have already become billionaires.
"The property you bought from the Ho Tung family is quite nice. Redeveloping it into a high-rise retail building, similar to Windsor House in Causeway Bay, would surely generate very high rents. I think it should be called THE ONE!"
Guan Jiahui's beautiful eyes lit up, and she quickly said, "You're right, I'll listen to you."
Li Jiaxin quickly said, "Why not call it THE TWO?"
“Because THE ONE is you,” Guan Jiahui said with a smile, not making Chen Guangliang waste any more words, as she was already capable of managing Li Jiaxin.
Li Jiaxin said, "It doesn't seem like it's impossible."
Everyone laughed.
That night.
Chen Guangliang, still vigorous despite his age, dominated the scene with the feminine Monica.
Of course, he's gotten old; after all, he used to order two at a time. (End of Chapter)