Chapter 417 Ding Quan Storm
Huo Zhengting hurried to the study and saw his father copying Wang Xizhi’s “Lanting Preface”. He slowed down and stood by the table.

Huo Guantai exhaled, put down his writing, and asked, “What’s the matter?”

“Dad, I saw the accounts. The company just spent 20 million to acquire land in the New Territories.” Huo Zhengting said anxiously, “The real estate market in Hong Kong is falling. The property market in Hong Kong and Kowloon has suffered a setback. We are still going to the New Territories to acquire bad land. Be careful not to waste money.”

Huo Guantai actually sneered and turned to look at his eldest son: “It’s about taking away the rights of the people, not the land.”

Huo Zhengting was stunned for a moment, and asked in confusion: “Dingquan is land, what’s the difference?”

Huo Sheng turned his head and stared at him and said, “Look carefully, what is the difference between Ding Quan and the land? Look carefully and learn from Atang.”

If they win this battle, the Huo family’s sluggish real estate industry will see a turnaround, and they will have a chance to return to the ranks of major real estate developers.

Although the Huo family was able to accumulate tens of billions of wealth through the sand and gravel franchise and shipping company, as long as the country continues to develop, the property prices in Hong Kong Island will reach new highs sooner or later.

The New Territories Dingquan acquisition project was being pushed forward very vigorously, and the grandfathers of the major clans convened clan hall meetings to force the acquisition.

In Hong Kong Island, you can question the power of the Governor at will, but never question the power of the gentry in the New Territories. From the Qing Dynasty to the present, the imperial power has never interfered in the New Territories.

When the villagers walked into the ancestral hall, whether they were willing or not, they had no choice but to sign and hand over their Ding rights.

The financial department sent by Huo’s Real Estate received contracts and gave money on the spot. The acquisition of Ding Quan was carried out in the form of a mass movement with great fanfare.

At the same time, Liao Runchen submitted a proposal to the Heung Yee Kuk titled “Using Ding Quan to Build High-Rise Buildings”. The Kuk passed it unanimously, approving real estate developers to use the acquired Ding Quan to build high-rise residential buildings of the same area.

The “Ding Quan Storm” began to appear on the front pages of business newspapers, and Huo Xingtang Real Estate, which had not made any major moves for a long time, suddenly became a star in the real estate market.

The four major Chinese real estate developers, namely “Henderson Land”, “Sun Hung Kai Properties”, “Cheung Kong” and “New World”, all focused their attention on the Fok family.

Among them, Cheung Kong and Sun Hung Kai Properties have no intention of intervening in the New Territories, but Henderson Land Development is engaged in demolishing old buildings, starting with small units and even acquiring half a unit.

When low-priced Dingquan came on the market, he was naturally very tempted. However, Cheng Yutong’s New World Development started late and lacked land reserves, so he became interested.

At the same time, many small and medium-sized Chinese real estate companies heard the news and sent land acquisition managers to the New Territories to buy up land.

The British financial group smelled an opportunity and took immediate action.

Jardine House.

Simon Keswick, the chairman of the board of directors, was reading a report on the acquisition of Ding Quan.

Since 1975, Jardine Matheson Group has lost its strategically positioned cargo warehousing company, Wharf Holdings. In order to ensure the leading position of Jardine Matheson Properties, the former chairman, Newbigin, adopted a “linked ship” strategy, resulting in the parent company Jardine Matheson and the property company each holding a % stake.

The chairman of Jardine Matheson Group also served as the president of the property company. Later, Newbigin also made large-scale acquisitions of Hong Kong Telephone and Hong Kong Electric shares and purchased land in Central in an attempt to rebuild Jardine Matheson’s leadership position.

After the Sino-British negotiations in 82, Hong Kong Island’s status plummeted, the stock market fluctuated, and the revitalization plan that Seamus Niu invested heavily in caused Jardine Matheson to suffer heavy losses.

At the beginning of the year, the group’s board of directors replaced Newbigin and sent Simon Keswick, a representative of Jardine Matheson’s shareholder “Keswick Family”, to take the helm of Jardine Matheson.

The Keswick family from Scotland, whose ancestors for three generations served as directors and managers of foreign companies in the Shanghai International Settlement, is a vampire family with roots in Asia.

Trapped by political influence, Simon Keswick had originally abandoned his expansion strategy and adopted a contraction strategy, but the emergence of Ding Quan seemed to bring a turning point.

Tony, a director of Jardine Matheson, was smoking a cigar, wearing a well-ironed suit, leaning on the sofa, and slowly exhaling white smoke: “Chairman, Swire Group and Hysan Properties have both been sold.”

“If Jardine Matheson does not go ahead to acquire the company, it may fall behind in the next round of development in the New Territories.”

82 was a critical year when British real estate began to fall behind, mainly as a result of the Sino-British negotiations, which caused British capital to lose cities and land, leaving only the “Central Land King” Jardine Matheson, the “Admiralty Land King” Swire, and the “Causeway Bay Land King” Lee Ka.

Without political protection, British capital began to shrink strategically and was gradually surpassed by Chinese real estate. The foreigners knew that being conservative was a death sentence, but since they were defeated politically, shouldn’t they be more conservative in economics?

If the negotiations failed and the war broke out, all investments in Hong Kong would be wasted. However, the 84 negotiation agreement had not yet been signed, and many foreigners were still dreaming and thinking about buying at the bottom.

The Swire Group is wealthy and powerful and dares to take action. The Li family is a comprador who forgets morality when he sees profit. How can they be willing to lag behind others?

Only Simon Keswick was very cautious. He stood up and said, “Dingquan has always been the lifeblood of the New Territories indigenous people. The Hong Kong government has tried several times to ask them to hand it over for development, but to no avail.”

“This time, the New Territories natives sold their rights to Chinese real estate companies. If there is something hidden behind it, it could lead to disaster. Jardine Matheson can no longer afford to be forced to sacrifice its own flesh and blood again.”

Tony frowned, looking somewhat dissatisfied: “Chairman, the British consortium only bought a minority of the properties, the Chinese real estate developers are the major buyers.”

“How can those Chinese merchants dare to invest so much money when they can’t control the natives of the New Territories? I have found out that it was Huo Guantai who reached an agreement with the clan leaders of the five major surnames. There seems to be a Chinese shadow in it.”

Simon Keswick raised his eyebrows: “The Chinese side wants to develop the New Territories?”

Tony said, “That sounds good. After collecting Ding’s rights, we can build a building and sell it to people in the New Territories. We can still make money from them. A sheep changes its owner, but it is still a sheep.”

Simon Keswick nodded slowly: “Let’s wait and see.”

In a month, almost all the well-known real estate developers in Hong Kong were buying properties in the New Territories. Huge amounts of money were poured into the market, and there was even a rumor about a “New Territories Development Plan”, claiming that the Hong Kong government would invest tens of billions to develop the New Territories.

Detailed terms of the Sino-British Agreement were also leaked, which stipulated that Tsuen Wan and Hong Kong Island would be a bonded area, and the entire New Territories would be set up as a special economic and trade zone on par with Shenzhen.

Countless favorable clauses appeared in the newspapers, and all Hong Kong people unexpectedly reached a consensus that the New Territories will be developed on a large scale!
A huge real estate bubble is getting bigger and bigger.

The price of a Ding right increased from 50,000 to 60,000, 70,000, and 80,000.

While the villagers were secretly complaining about selling at a low price, Yin Zhaotang had already earned millions just by reselling Ding rights, and Huo Sheng had earned over tens of millions, which was no different from speculating in futures.

The market price was expected to be 20 billion, and the price went up with the tide. After more than 10 billion yuan of capital poured in from all parties, 100,000 Ding rights have not yet been received.

In Shangshui Township, in front of the Liao Clan Ancestral Hall, hundreds of villagers wearing T-shirts and holding protest signs were shouting, “Give us back our Ding rights, give us back our Ding rights!”

A row of village women holding steel forks and carrying manure walked in the front, many of them with children.

Many young and strong people held steel pipes, hid behind their backs, and shouted loudly: “Protect the environment, prohibit development!”

“Give me back my Ding Quan, give me back my Ding Quan!”

The slogans were so loud that they could be heard in the ancestral hall. Ling Yin Zhaotang could not help but frown slightly. Liao Runchen, who was entertaining guests, waved his sleeves and said, “Clear the people at the door. The leaders will seize the ancestral hall and cut off their hands and feet in front of the ancestral tablets.”

The second son, Liao Zhixing, was in charge of village affairs. Upon hearing this, he immediately clasped his fists and said, “Yes, Dad.”

Liao Runchen sipped his tea and said calmly, “I’m sorry, Atang, I made you embarrassed.” Many villagers who were among the first to sell their Ding rights were extremely dissatisfied when they saw the price increase, and claimed that they were deceived by their families.

At the instigation of some real estate companies, people began to gather to protest and cause trouble.

Yin Zhaotang drank his tea and smiled slowly, “Some companies don’t dare to stop me openly, but they try to be clever in private, hoping that I will take some power.”

“Without me, the price can be lowered.”

In the eyes of Chinese real estate developers, he was Mr. Huo’s manager, who came specifically to help collect rights in the New Territories.

Liao Runchen said in annoyance: “Those people are really just complaining. Asking them to collect less is to make them lose less. The street thugs are the same. They come to the ancestral hall for a few dollars. It’s really shameful.”

“After the price of Ding rights plummeted, how many of the speculators who bought them at high prices would actually break ground for construction? If you want to wait for a house to live in, you’ll have to wait until you die!”

“But those who sold it to Mr. Huo got 50,000 yuan, which is not much, but they will definitely have a house to live in. No matter how much you try to persuade them, it won’t work.”

Hundreds of strong, fierce-looking militiamen armed with sticks suddenly rushed out from the roadside and started beating the protesting crowd with sticks.

During the fight, women and children howled, men screamed in anger, and there were also screams of pain from being stabbed. In a blink of an eye, more than a dozen people were knocked down, and the scene was extremely chaotic.

As the most primitive organization, the clan will not only help the villagers to safeguard their interests, but also has “house rules” as guidelines and local militia as fists. When it is time to strike hard, they will not care about human life.

Yin Zhaotang turned a deaf ear to the voices from outside. Why did the real estate developers have to get the approval of the five big families when they wanted to develop the New Territories? Because the five big families could not only stir up trouble, but also make it happen.

If you connect with individuals, you may not be able to collect many Ding rights in a year or two. If you connect with clans, you can buy thousands or tens of thousands of them at a time.

With tens of billions of dollars pouring into the New Territories, the villagers’ little troubles are simply insignificant.

Money can reshape a person’s three views. When everyone around you has money, the society will definitely be filled with a trend of money supremacy and mutual comparison.

This month, underground gambling dens, foot massage parlours and massage shops in the New Territories have been doing booming business, and there are more weddings being held in restaurants than usual.

Perhaps after the bubble bursts, the New Territories will be in chaos, but the influx of funds will always remain in the New Territories and create more factories.

As for personal fortune, it depends on one’s mind. Some people get rich, some jump off buildings, it’s all the result of development. The Chinese real estate developers who participated in the speculation of high-end rights, those who have the guts to build buildings in the New Territories, will also make profits after 84. For speculators with insufficient funds, it depends on who runs faster after the wave of foreigners entering the market.

If you dare to speculate, you will certainly have to bear the ups and downs.

However, after reaching 10 billion, both Chinese and British real estate companies have gradually stopped buying. Their rich experience in acquiring land has already determined that the price has reached its peak.

Surprisingly, until this point, the Swire Properties had not entered the market.

It seems that after losing Wharf Holdings, Jardine Matheson’s vigilance against Chinese capital has reached its peak.

Yin Zhaotang played with the teacup and said slowly, “Uncle Liao, please inform the villagers that Mr. Huo’s securities issuance has been approved.”

“This coffin is for the foreigners. Please do not enter.”

It would be fine if the villagers sold their rights and squandered all their money, because at least they would have a place to live and the money would be spent in the New Territories.

But if there are smart people who use the money from selling the rights to subscribe for securities, the money may be lost when the bubble bursts.

It is better to advise villagers to give up and avoid getting carried away and losing their entire fortunes by holding on to their securities during the downturn and waiting for a long-term rebound to finally reap profits.

Liao Runchen understood his good intentions and nodded, saying, “Don’t worry, I will strictly control it.”

“Do your best.”

Yin Zhaotang said.

The heat of the Ding rights storm has subsided, and real estate developers are holding nearly 100,000 Ding rights, including 3,000 from Howard Johnson, 4,000 from Henderson Land, and 8,000 from New World.

The Li family has 5,000 shares, the Swire Group has 10,000 shares, and the rest are scattered among hundreds of real estate companies, including some international hot money.

On average, every thousand Dingquan is enough to build a high-rise residential community. If 100,000 Dingquan are really developed, high-rise buildings will be erected in the New Territories.

However, given the appearance of the New Territories mountain village and industrial zone, it is impossible for capital to develop all 100,000 Dingquan.

After obtaining the approval document, Huo Xingtang Real Estate officially established the project in Tsuen Wan District and began to sell securities, using the Tsuen Wan Dingquan project as collateral. Those who subscribed to the securities could receive a high annual interest rate of 10%.

In the tide of economic development, the real estate industry can drive all industries and has always been an economic booster, combined with financial tools such as securities financing and pre-sale properties.

The flow of money will be rapidly accelerated, everyone’s expected returns will become higher, and everyone in the link will seem to be making money, even consumers will feel they have made money.

It forms a wonderful scene of prosperity and flourishing industries.

After the Huo’s securities were snapped up by investment institutions, the remaining real estate companies successively launched projects and issued securities, with the strength of Henderson Land, New World, Swire Group and the Li family.

Getting approval and issuing securities is not easy at all.

The funds raised from securities are then used to collect rights and develop new projects, while the money for building the projects is paid for by selling pre-sale properties and by real estate speculators.

As the last link in the real estate finance chain, real estate speculators only have the role of baggers, and some even think they are also investors!

Real estate bosses use upstream and downstream companies to cash out, enjoy the income from rising company stocks, and grab money under the banner of financing.

In 1982, the emergence of the Dingquan Storm turned Hong Kong’s economy from gloomy to sunny.

Although the Hong Kong government could not collect rates from Ding Quan, the industries it stimulated also led to an increase in tax revenue for the Hong Kong government, and the new governor had achieved remarkable results.

Jockey Club, Sha Tin Racecourse, Club Restaurant.

HSBC President Stephen Smith, wearing a green knitted sweater and a white sweatshirt tied around his neck, was chatting with Swire President Raymond Ballard with a smile on his face.

The Royal Jockey Club’s 12-member board of directors holds a supervisory meeting with the executive level every month. After the meeting, the board members will gather in a dedicated restaurant to keep in touch.

When two presidents of foreign companies meet, they either talk about women or money, and the topic soon turns to Ding Quan Securities.

Paulide, holding a cigar in his mouth and wearing a Patek Philippe diamond watch on his wrist, asked confidently, “Mr. Shen, how much goods did HSBC buy in the market?”

(End of this chapter)