The birth of the Hong Kong Island family

It’s another new year, and the time has come to 1986.

New Year's Day has just passed.

Ma Shimin, managing director of Hutchison Whampoa, hosted Hutchison Whampoa's first overseas office in London and said at the ceremony: "Hutchison Whampoa is seeking acquisition targets and has the ability to invest 1 billion in Europe in the next 12 to 18 months. dollars.”

"Hutchison Whampoa has established a set of guidelines for overseas development. This set of guidelines includes that the overseas companies acquired must have a certain scale, have reasonable profits and assets, not be engaged in labor-intensive industries, and must be businesses that Hutchison is familiar with. , the region must be politically stable, have a good economy, have a reasonable tax structure, and make it easy to remit earnings, etc. In addition, currency and population are also important reference standards."

There is no problem with these words. Ma Shimin's idea has always been the same as Lin Zhichao's, that is - based on Hong Kong and expanding overseas.

However, as a foreigner, Ma Shimin did not understand that his words would be misinterpreted by the media.

Therefore, Ma Shimin's remarks soon became known in the Hong Kong media as - Hutchison Whampoa will follow Jardine Matheson and focus on investing overseas; some media directly said - Hutchison Whampoa will follow Jardine Matheson and become the first company to relocate its capital and domicile. Two major groups.

Public opinion was in an uproar!

Mr. Lin Zhichao, who once made a high-profile publicity that he would not relocate his registered office or capital, and was absolutely optimistic about Hong Kong's prospects, is he going to change his behavior now?

Under such public opinion, Lin Zhichao quickly came forward to clarify.

He said in front of reporters and media: "What he (Ma Shimin) really means is that Hutchison Whampoa has the ability to invest US$1 billion overseas in the next five years."

"Hutchison Whampoa's strategy is to base itself in Hong Kong and expand overseas. Therefore, overseas investment cannot be higher than the investment in Hong Kong, and it will not even exceed 40%."

"As for the decision to invest overseas, there is no other reason, just financial arrangements - Hutchison Whampoa has sufficient cash flow, and there are no suitable projects in Hong Kong in the short term, so the funds will find a way out."

"Take Cheung Kong and Hutchison's investment in Japanese real estate as an example. Judging from the 25% appreciation of the yen today, they have already produced very optimistic book profits. Therefore, we have only one purpose in investing overseas - to bring better benefits to our shareholders. s return!"

Public opinion immediately subsided!

But soon investors noticed that the investment in Japan by the Cheung Kong Group had produced a large amount of book profits, so the stocks of the Cheung Kong Group rose again.

Victoria Harbor Centre.

In the office of Changshi Group, Lin Zhichao received Henry, the president of Canadian Imperial Bank of Commerce, and his delegation, accompanied by his eldest son Lin Ruihuan, Mai Lisi, and Ma Shimin.

Recently, Lin Zhichao receives Canadian guests at office meetings every week, including Canadian businessmen, trade officers, and provincial prime ministers.

After hearing that Hutchison Whampoa had established an "overseas office", these people came to visit one after another to "calculate" Lin Zhichao's pocketbook. And in their view, as long as Lin Zhichao, the richest Chinese man, chooses to invest in Canada, other Hong Kong rich people will follow suit. This is the role of the leader.

Canada has always been the first choice for Hong Kong citizens to immigrate, especially Vancouver, which has the largest number of Chinese and is also the most suitable place for Chinese to live. Canada is also the country that gives the most favorable treatment to Hong Kong immigrants, followed by Australia and the United States.

The United States is the most powerful country in the world and is known as the number one political and economic power. It does not have to worry about the inflow of capital and talent, so it is the style of Uncle Sam. Therefore, in the new wave of immigrants from Hong Kong, the United States has only slightly relaxed immigration quotas.

Australia is more proactive than the United States, but still not as favorable as Canada.

Canada divides business immigrants into three types: the first is self-employed businessmen (professionals in commercial organizations) and people engaged in sports and performances; the second is entrepreneurs, who must hire at least one Canadian employee; the third is investors, who That is to invest at least 250,000 Canadian dollars in a certain enterprise (1 Canadian dollar is about 5.5 Hong Kong dollars).

The purpose of Canada's immigration is to attract capital and talents. For wealthy Hong Kong people, buying a Canadian passport for 250,000 Canadian dollars is really cheap. Professionals, with their degree, diploma and professional qualifications, can obtain permission to immigrate. But when they boarded the flight, they also had a considerable amount of money in their pockets as capital to buy a home and a foothold.

Lin Zhichao and Henrik have a very good personal relationship. Henrik was very happy when it was mentioned that Changshi Group was interested in investing in Canada.

He immediately said: "Mr. Lin, Canada very much welcomes entrepreneurs like you to invest, and we guarantee that we can provide quite favorable conditions."

As the saying goes, ‘A thousand gold buys horse bones’, as long as Lin Zhichao is willing to invest in Canada, other Hong Kong rich people will come to invest in Canada.

Lin Zhichao said: "Well, I also value Canada's business environment. If there are good projects, I will seriously investigate and think about them."

Henrik then said: "I came to see you this time just to think about an investment project. I wonder if you are interested?"

Lin Zhichao said politely: "Please tell me!"

He understood that it was definitely not the Husky Oil Company. After all, the oil price had just fallen recently, and Husky was not so quick to "get hot".

Henrik said: "I wonder if you are interested in investing in Canadian Imperial Bank of Commerce. If so, we are willing to issue 5 to 10% of new shares for your investment!"

Lin Zhichao thought about it for a while. The Canadian Imperial Bank of Commerce was also one of the top ten banks in Canada. Although the return rate of investment banking was low, it was more stable and higher than the interest rate.

Then he said: "My eldest son Lin Ruihuan holds a Canadian passport. If this project is suitable later, I will ask him to invest in the Canadian Imperial Bank of Commerce in his own name!"

Lin Ruihuan obtained a Canadian passport a few years ago, which can be withdrawn at any time. What's more, as the second generation leader of the Cheung Kong Group, Lin Ruihuan will definitely obtain a foreign passport, so as to facilitate business.

Henrik looked at Lin Ruihuan and said happily: "That's great. Mr. Xiao Lin already has his father's business skills. If you buy a stake in our bank by then, I will definitely convince the board of directors to let you become our director."

Lin Ruihuan immediately expressed his gratitude and praised the Canadian Imperial Bank of Commerce for its excellent style and promising development prospects.

On the same day, Lin Zhichao also hosted a banquet for Henrik and his party at the Shangri-La Hotel, which was a warm reception.

For Lin Zhichao, the management of Hutchison Whampoa is handed over to Ma Shimin, but as the boss, he still has to create a good environment.

Lin Zhichao and the eldest son of his second wife, Lin Ruihai, came to inspect the construction site of Times Square in Causeway Bay. This place will be put into use in 1988. At this time, keen investors have already sensed the huge investment potential of Russell Street and surrounding shop properties, so they have begun to look for targets. .

Of course, Lin Zhichao's three lovers have already been in nearby online stores, and currently each owns a lot of properties on Russell Street and surrounding areas.

Times Square does not need to pay land premium, which simply greatly reduces the cost, and the total construction cost is 2 billion Hong Kong dollars. Once completed, it will provide a full 2.4 million square feet of commercial area.

According to Lin Zhichao's speculation, the rent in 1988 could be about HK$500 million, which is quite nice! (The previous life was completed in 1993, with a construction investment of 2.4 billion and a rent of 900 million in the first year).

During the inspection, Lin Ruihai did not forget to report to Lin Zhichao. He is now basically in charge of the Wharf Group, and Lin Zhichao, the chairman of the board of directors, seldom interferes.

Of course, this also means that Lin Zhichao is more partial. The eldest son (Prince)'s long-term strength is too strong!

Fortunately, this family division has been settled for a long time, and there is no need to talk about it. The sons have never expressed dissatisfaction. They have already worked conscientiously in their positions, hoping to gain the approval of their father, Lin Zhichao.

"Father, at present, the hotel department of Wharf Group - Marco Polo International Hotel Group, is on the right track to take over the management of Hong Kong Hotel Group's three hotels in Hong Kong (Hong Kong Hotel, Marco Polo Hotel , Prince Hotel) and the management rights of Marco Polo Hotel in Singapore. I want to expand investment in the hotel field!" Lin Ruihai said seriously.

He sincerely approved of his father's "children's decentralization plan", but of course he also wanted to lead the Wharf Group to develop better.

Lin Zhichao said: "How do you want to expand investment in the hotel field? Do you have any specific ideas?"

Lin Ruihai immediately said: "Increasing hotel investment in North America and Europe is mainly to acquire hotel management groups, and the cost of light assets is low."

When Lin Zhichao thought about it, the return rate of hotels in North America and Europe was very low. In their previous lives, Bao Yugang and Zheng Yutong both tried this kind of large-scale investment, but the final results were not satisfactory.

"Ruihai, investment in the hotel industry in North America and Europe is very low. I'm afraid we can only collect interest. Unless we have a lot of cash flow, don't invest easily. This is why Shangri-La Hotel chose Japan instead of North America and Europe."

Lin Ruihai suddenly felt a little regretful and disappointed. He didn't expect that his plan would be rejected by his father. Of course he believed in his father's vision, but he just felt a little regretful.

"Father, the Wharf Group now has relatively abundant cash flow. If it does not increase hotel investment, it will only choose real estate development in Hong Kong or other investments in the future to sustain the development of the company. But if you participate in real estate development, it will inevitably It makes people feel that our family is a bit too monopolistic. Because of this, I have recently been thinking about the future development direction of Wharf!"

Lin Zhichao patted his son on the shoulder and said, "We will go to the office to discuss it later. I have some ideas!"

Lin Ruihai immediately said: "Yes, father!"

The Wharf Group's acquisition was some time earlier than Hutchison Whampoa. During this period, Lin Zhichao also made some "financial and technological investments", which quickly helped the Wharf Group get out of its financial difficulties. Therefore, in these years, the financial situation has been better and Lin Ruihai can consider the importance of development. Lin Zhichao is more pleased.

Lin Zhichao knew that Lin Ruihai wanted to learn and compete with Lin Ruihuan, but it was obvious that the Wharf Group could not become a comprehensive enterprise, and at best it could become a commercial real estate king.

But even in the field of commercial real estate, Cheung Kong Group may be better than him.

It is impossible for Lin Zhichao to be "equal to a bowl of water". The eldest son is the eldest son, and the eldest son is the prince. This is for sure.

Back at the Wharf Group Headquarters (Harbor City), Lin Zhichao was sitting in his office, with Lin Ruihai standing next to him.

"Rui Hai, the matter of the branch company was almost already arranged when you just gave birth. Your three mothers have no objection!"

Lin Ruihai said quickly: "Father, have you misunderstood what I meant today? I want to express that I can also assist you to make the Wharf Group more sustainable."

Lin Zhichao said: "Well, I know, so let's not talk about it!"

Lin Ruihai nodded and said, "Well, it's good that my father knows what I mean. My brothers and I have never had any estrangement because of this. We are all brothers of the same heart."

Seven brothers, each in charge of a group!

The two sisters are also involved in the family business and the affairs of the two groups!

Next, Lin Zhichao said: "The Wharf Group's funds are still a little short, so you should immediately contact the Singapore Investment Department of Overseas Trust and ask them to short the US dollar and yen futures for us, and spend 200 million Hong Kong dollars to buy it with 20 times leverage. Prepare another 200 million as a deposit."

Currently, the exchange rate of the US dollar against the Japanese yen is 202, and this wave can at least fall below 160 points, and that was before September this year.

If it goes well, this little money can earn 1 billion Hong Kong dollars!

Lin Ruihai said calmly: "Father, is this investment risky? The Japanese yen has appreciated by 25%."

He knew that his father had already analyzed the appreciation of the yen and had made a lot of profits.

Lin Zhichao smiled and said: "You are right to listen to me! Of course, I do not allow you to invest in such risky financial products. It is right to be down-to-earth!"

"OK"

Most of the funds invested in Times Square are bank loans, and the lenders are Hang Lung Bank and Overseas Trust Bank.

There is currently no Hong Kong banking law that expressly stipulates that it is not allowed to lend money to oneself. Otherwise, Overseas Trust and Hang Lung Bank would not have collapsed in the first place. However, in order to formalize it, the Wharf Group's loan was secured by the Times Square project, and there was collateral.

Then, Lin Zhichao said: "There will be many opportunities for the subsequent development of the Wharf Group, so don't be too hasty. After all, after the completion of Times Square, we have to consider rebuilding the five high-end residential buildings in Harbor City into five first-class commercial buildings. Office buildings. In Singapore, we can also find opportunities to invest in the commercial complex on Orchard Road. If the mainland changes its opening in the future, the Wharf Group can also enter the mainland to invest in commercial real estate. As for Europe and the United States, I will have to study it later!"

Lin Ruihai said: "Okay!"

Lin Zhichao nodded. He really needed to think carefully about the development of Wharf Group.

In fact, these group companies will usher in the world. But how to go out requires Lin Zhichao, a person with future memory, to make a decision. Otherwise, if the investment is wrong, it will be a missed opportunity.

In previous lives, Bao Yugang, Zheng Yutong, Lee Shau Kee, etc. all tried to invest overseas, but eventually found that the investment was not ideal, and they also returned to Hong Kong and the mainland. Mainly they invest in the hotel and real estate industries, which have no strength or skills. They can only guarantee no loss, but the rate of return may not be as good as the interest earned.

But Lin Zhichao is different. He knows the best time to buy at the bottom, so he can save costs. He also knows about financial investments and can use them to reduce costs.

In this way, he can collect rent without having to pay high interest rates. (End of chapter)