The birth of the Hong Kong Island family

In early September, Lin Zhichao returned to Hong Kong.

This overseas trip started from Japan and finally arrived in Hong Kong from London.

There are many ships that need to renew their contracts. Lin Zhichao directly signed the five-year contract, and all major employers smiled.

As everyone knows, Lin Zhichao is also very happy.

First, the shipping market this year is good, reaching a market where new ships can pay back their costs in a little over five years, and second-hand ships can pay back in 20 to 24 months. Of course, this is a long-term rental market; if it is a short-term rental, it is not easy to say, after all, whether the business can be filled is the key, but it should be higher.

Second, these contracts were signed in July and August, so they would expire in July and August of 1967; and the third Middle East war broke out in early June of 1967, so these ships could catch up with the good market. Lin Zhichao didn't have to pinch it just right, for example, some of the later ships might have contracts that expired in the first half of 1968. After all, the Suez Canal will be closed for eight years, and it doesn't need to be just right to avoid suspicion.

After returning to Hong Kong, Lin Zhichao urgently held a high-level meeting of Global Shipping, and another vice president did not return to Hong Kong.

He sat on the main seat and said with a serious expression: "How much loss do we have?"

Typhoon Wendy hit Hong Kong on August 27 and did not dissipate until September 1, causing a lot of damage to Hong Kong.

Lin Zhichao has already received the news overseas. He only set out to return to Hong Kong on September 3, and he must avoid the typhoon.

Feng Yongfa said: "No ships during the lease period were damaged because they all avoided the typhoon zone. However, many of the 18 ships that have just been eliminated are still overseas; and two second-hand ships in Hong Kong ran aground. , two boats collided, causing heavy losses. This typhoon was so severe that about 500 small boats sank in Hong Kong, and even the domestic boats in the typhoon shelter suffered serious losses."

Lin Zhichao breathed a sigh of relief. The eliminated ships were originally planned to be sold at a low price; if the ship in the lease was damaged, it would be a waste of time and money, although the insurance company would compensate.

Lin Zhichao asked: "Do the damaged ocean-going ships still have insurance?"

The senior person in charge of this aspect immediately said: "Some of them are already negotiating with the insurance company."

Unexpectedly, when you prepare to sell it at a low price, you can still earn an insurance premium; no wonder, British insurance companies will increase the insurance premium for second-hand ships next year, because these second-hand ships are risky.

At this time, Global Shipping is seizing the opportunity to eliminate old ships that are more than 30 years old. In the end, there will only be 50 ships "under 30 years old" left in one year; and within this year, almost 100 ships will be eliminated. Thirty ships were all ocean-going vessels, and eight second-hand oil tankers were all eliminated.

Even the remaining fifty second-hand ships will be gradually eliminated in the next three to five years.

Lin Zhichao said: "I heard that many people in Hong Kong are missing and dead?"

Feng Yongfa replied: "Well, the vast majority of the dead people were in Shatin and Tai Po Districts in the New Territories when they were hit by the Tolo Harbor storm surge. The number of people affected this time may reach more than 50,000, so it is higher than in previous years. The loss is much greater.”

Lin Zhichao nodded and said: "Well, this is not the most terrifying thing. I am afraid that the typhoon will worsen the drought in Hong Kong!"

Everyone's faces sank. Hong Kong has been suffering from water shortage in recent years. If it worsens, it will be really troublesome and will cause a lot of trouble to the ordinary citizens of Hong Kong.

Fortunately, wealthy people will not be greatly affected, because Hong Kong's reservoirs give priority to the urban areas of Hong Kong and Kowloon.

Next.

Lin Zhichao asked: "Will Global Shipping's profits this year be higher than expected?"

Financial manager Li Zhonghe immediately said: "It's higher than expected. The price of the contract renewal for more than one month is higher than expected."

It is higher than expected, that is, the profit is about 45 million US dollars, and the profit next year will definitely reach 60 million US dollars. Because this year, millions of tons of ships have been launched one after another.

Lin Zhichao immediately announced a new shipbuilding plan: "Well, at the end of this month, I will go to Japan to build five 130,000-ton oil tankers and five 18,000-ton cargo ships, which will cost almost over 70 million US dollars. There may be more this year. If we go to Europe to build a few ships, the shipbuilding expenditure will reach 80 million US dollars."

The carrying capacity is almost more than 800,000 tons, which was lost to last year’s plan, not to mention that it is still a few months late this year. This is because the previous savings have almost been used up.

Everyone showed excitement. Although global shipping has been around this level every year since 1959, it has obviously been very powerful for four years.

At the same time, Global Shipping has finally begun the ‘debt era’.

After the meeting, Feng Yongfa will prepare to lead a team to Japan for inspection, paving the way for Lin Zhichao's trip to Japan.

The work content of the two vice presidents is actually to assist Lin Zhichao. But everyone has a focused direction (there is no strict direction). Bobby focuses on European and American business and external business, and Feng Yongfa focuses on Asian business (Japan is the most important) and internal management.

Overall, Lin Zhichao is very satisfied with the current team.

The news that Global Shipping Lines sold 14 ocean-going ships at once quickly caused a huge stir in the Hong Kong shipping industry. At first, everyone thought that Global Shipping Lines was selling ships damaged by typhoons. However, they soon discovered that others had clearly stated that these ships were for sale. They are in good condition and have not been damaged. The only drawback is that the boats are over thirty years old.

The advantage is of course that the price is cheap. Basically, it only costs 150,000 to 250,000 US dollars, and it immediately becomes a favorite. Because everyone understands that if the ship price is cheap, then a 10,000-ton cargo ship can hope to earn a profit of 150,000 to 200,000 yuan in a year, and the maximum recovery time is 12 to 18 months.

Because this incident became news in the shipping industry and was known by the media, eventually some media described it as "if Global Shipping loses a bone, it will attract competitors in the industry to eat it", which became a joke.

But it's a joke, who can't live with money, so the transaction intention meeting held by Global Shipping in the office building that day attracted many Hong Kong shipowners to participate; including Bao Yugang, Zhao Congyan, Cao Wenjin and other later generations of 'shipping kings' Lin Zhichao, the owner of the ship, felt a little funny when he heard about it.

At this time, Bao Yugang should be stronger than Zhao Congyan; not to mention Cao Wenjin, who was only lifted from the "ban" by the US Department of Commerce this year, ending his days of moving stones.

But Bao Yugang has not built a new ship so far. It is obviously under the influence of Lin Zhichao, and it is far worse than in his previous life; after all, in his previous life in 1961, he had built a new 7,500-ton cargo ship, and by 1968, Bao Yugang Yugang already has a fleet of 3.5 million tons.

In the conference room, there were about seven or eight shipowners who came to choose ships, and Feng Yongfa presided over the trade fair.

The trading rules are very simple. Everyone gets the information of 14 ships. Whoever submits the letter of intent to purchase first will get it first.

"Everyone, these ships are more than thirty years old. The information above is all there. Everyone has heard about the maintenance of our ships by Global Shipping. Here, I also promise that every information is very true, and the price Of course, it goes without saying that we are selling at a low price, and we can pay back the cost in almost a year, so the price is not negotiable. Okay, let’s take a look next time, everyone!"

Somewhat humiliating!

Bao Yugang, Zhao Congyan and others thought that, as the outside media said, Global Shipping is really the absolute leader in Hong Kong's shipping industry; this time it threw 14 ocean-going ships of about 10,000 tons in one go, which was really shocking.

Similarly, it also shows that these ship owners are just picking up other people's leftovers to eat!

Bao Yugang sighed inwardly. During the period from 1959 to 1961, he picked up a lot of second-hand ships and expanded his fleet to 30 ships with a total tonnage of 250,000 tons. It was already a lot of effort.

First of all, the business was not very good in the first three years, and it was difficult to rent out for long-term leases (global shipping is a special case, the situation is much better), or the price was crazy;

Secondly, many of the second-hand boats picked up in three years are old boats in their thirties, which are generally ready to be dismantled, and only a small number of old boats are more than 20 years old.

"After purchasing these ships, I will build new ships immediately, otherwise the gap with Global Shipping will be too big! I just don't know if HSBC is willing to provide a loan?" Bao Yugang thought.

It turned out that Sandas of HSBC was not optimistic about Bao Yugang as an imitator, so he seldom gave Bao Yugang loans. What's more, HSBC now invests a lot in shipping, so it is more prudent in lending.

But this year's market is good, maybe HSBC will consider letting go.

On the other side, Zhao Congyan and Cao Wenjin didn't have too many ideas, and they were hurrying to buy. These are from global shipping, and they definitely have a good reputation. At least others have done a good job in maintaining the ships, which is recognized by the industry.

Time passed quickly, and everyone took action quickly. Bao Yugang, Zhao Congyan, Gu Guomin (Gu Zongrui's eldest son, Dong Haoyun's brother-in-law), and Cao Wenjin were all very fast. Compared with other shipowners, they understood that opportunities were rare.

Soon, the fourteen ships were divided up by everyone!

It happened that Lin Zhichao also came to the meeting room to communicate with everyone.

"Congratulations to Lin Sheng, you have been elected as the chairman of the International Tanker Association, and you have brought honor to Hong Kong's shipping industry!" Cao Wenjin stepped forward to congratulate.

Looking at Cao Wenjin, Lin Zhichao couldn't help but sigh, these wools are really well harvested; during the internal occupation, Lin Zhichao encouraged Li Gaofu to smuggle goods to the northern JF zone port, where Cao Wenjin's wool was harvested.

Unexpectedly, Cao Wenjin has developed now, but he probably only has a few ships in his hands; after all, it is impossible to develop shipping due to US sanctions against him.

Lin Zhichao smiled and said: "Cao Sheng received the award, it was just a false name."

Afterwards, he greeted everyone again. Unexpectedly, Dong Yunhao did not come. Instead, his wife and brother came. Dong Yunhao’s father-in-law was a mainland shipping king in the 1930s. After arriving in Hong Kong, he purchased a 5,000-ton second-hand ship with a loan. Continue to operate the shipping industry.

However, Lin Zhichao lamented that war is really terrible. It can make a person's wealth expand very quickly, and it can even make a person's wealth disappear in an instant. A shipping king in the 1930s actually started his business in 1949 with a 5,000-ton second-hand ship. It was said that the ship was very dilapidated and cost only a little over 100,000 US dollars.

When Lin Zhichao started his business, he seemed to have more than 1.7 million US dollars, starting with three 10,000-ton ships that were less than 20 years old.

"Everyone, while buying second-hand ships, don't forget to find ways to build new ships. Shipbuilding in Japan is very cheap now, and it also provides low-interest loans to outsiders, which is a good opportunity. After all, without new ships, it will be difficult to do something big. powerful."

He is sincerely pointing everyone out!

Times have changed. In the past, Japanese shipping companies were willing to lease second-hand ships, but now Japanese shipping companies have begun to discriminate against second-hand ships. Because their country can build new ships, they naturally give priority to new ships, and the rents for new ships are higher.

Lin Zhichao has built 18 cargo ships in recent years, almost all of which have been leased to Japan's three major shipping companies.

"What Lin Sheng said makes sense. It's just that this ship costs one million US dollars. You can buy five or six second-hand ships like today, but the rent is not much different! Building a new ship is not a problem for you. For us, we have to settle this account." Zhao Congyan said.

Bao Yugang said: "We can't just settle this account. After all, such a second-hand ship can run for three to five years, which is already good! And a new cargo ship still has a long life. More importantly, the new ship It’s a credibility boost.”

When Zhao Congyan saw that Bao Yu had just refuted him, he was a little confused and said: "Building new ships takes up funds, this is the most important thing!"

Bao Yugang smiled relaxedly, and then said: "What Lin Sheng did, we should do it!"

Everyone was confused, including Lin Zhichao. What was Bao Yugang referring to?

Next, Bao Yugang said: "I heard from Japanese friends that Lin Sheng had two ships before, and it was a tripartite agreement with the shipyard and the Japanese shipping company. Only 20% of the funds were required, and the remaining funds were all provided by the shipping company. The company's rent is paid to the shipyard in installments. In order to support the shipyard, this model does work in Japan."

Many people’s eyes lit up!

Lin Zhichao smiled and said: "It does work! Japan supports shipyards and the interest rates are very low, even lower than the Japanese, so they are unwilling to build ships; and as long as the shipyards can steadily recover the shipbuilding payment, they will agree to this kind of payment The best way is to rent it to Japanese shipping companies, which gives them the most peace of mind.”

Many people began to think that this method is indeed very good.

It doesn't matter if you say it. It's not a secret anyway. We are all representatives of Hong Kong shipping. It doesn't matter if we make progress together. Anyway, we are earning foreign exchange.

After some exchanges, everyone returned with a full load!

Lin Zhichao also sent everyone off with the pace and smile of a shipping king.

The mood is very relaxed, he will never regard these as opponents again!

Today, Bao Yugang only has a second-hand ship of less than 300,000 tons and is preparing for his first new ship; when HSBC cannot fully help him and Japan's three major shipping companies trust Lin Zhichao more, he can In 1968, it had 1 million tons, which was already very powerful.

In mid-September, the Hong Kong government suddenly announced revisions to the 1955 construction conditions, which mainly stipulate the plot ratio of land for various uses (that is, what we often call floor area ratio). The building area under the new regulations is larger than before Reduced by about 20%. However, there was a grace period in the implementation of this regulation, which allowed it to be officially implemented on January 1, 1966.

The original intention of the Hong Kong government was to curb the overheating of real estate; however, once this regulation was implemented, it would inflate Hong Kong real estate in disguise.

This is because major real estate developers will rush to develop their land before 1966 to avoid losing 20% ​​of the area.

The supply of housing units this year (1962) may only be 11,000, but by the peak in 1965, it may reach 29,000, an increase that is simply incredible.

At the same time, so many real estate developments will naturally lead to a large amount of bank funds flowing into the real estate industry. This will eventually lead to insufficient cash flow in banks. In 1965, a large-scale bank run event broke out, which was unique in Hong Kong history. .

At this time, commercial land in Central, Hong Kong has reached HK$2,000 per square foot, and Tsim Sha Tsui commercial district has reached HK$1,000 to 1,200 per square foot; residential land in urban areas of Hong Kong and Kowloon has reached HK$200 per square foot (the prices vary depending on the location). Not the same, just for reference).

"The amount of land auctioned by the Hong Kong government this year has already reached 150 million, right?" Lin Zhichao asked Hu Zhaoxu who came in.

"Yes, it should be 170 million! In the remaining three months, I am afraid it will steadily exceed 200 million Hong Kong dollars and set a historical record." Hu Zhaoxu naturally knows all this.

Lin Zhichao knocked on the table and started thinking!

This year, Cheung Kong Holdings also contributed nearly 10 million Hong Kong dollars to purchase two very good pieces of land.

Now a 20,000-square-foot plot of land in Yau Ma Tei is already priced at 4 million. If it were in Causeway Bay, it would probably cost 6 million.

The price of residential buildings has also risen sharply. A unit in Causeway Bay costs more than HK$60,000, and in Yau Ma Tei it costs more than HK$50,000.

"Cheung Kong should digest its existing projects. Even if it has to acquire land, it will be enough to acquire two small sites." Lin Zhichao said.

Hu Zhaoxu said without hesitation: "Okay, I understand!"

Other home buyers think that the more crazy the real estate is, the more they are willing to invest; while their own bosses, the worse the real estate is, the more they want to buy bottoms, and once the market is too high, they will stop or slow down.

At this time, it is the best portrayal. Of course, Hu Zhaoxu also understands that the land bank owned by Yangtze River Industry is sufficient for development until the 1970s, so the boss is certainly not in a hurry.

After Hu Zhaoxu leaves.

Lin Zhichao is thinking about the problem:

He analyzed and predicted that if a bank run broke out in January 1965, it would last for about a year. During this period, real estate would plummet by about 30-40%, but it would not be the best opportunity to buy bottoms;

By 1966, there might have been some recovery, but by 1967, real estate plummeted. Perhaps a high-end residence in Causeway Bay was originally worth 200,000 Hong Kong dollars, but only 50,000 Hong Kong dollars in 1967, a drop of more than 70%. The important thing is that the market is full of middle- and upper-class people eager to sell their properties, cheap assets are everywhere, and they are waiting for the money to immigrate immediately.

Therefore, Cheung Kong Industries will stop developing new development projects almost in 1964. Of course, a mid-level mansion can also be developed, but it will not be sold.

A little bit of pretentiousness, so as not to say that Lin Zhichao is a prophet. However, in the past few years, Changjiang Industrial has been developing large projects, and it may only start one or two sites a year, so it is not surprising.