Rebirth of the Industrial Tycoon - Vol 2 Chapter 537
Chapter 537 Don’t buy at this time, when will you wait!
The main purpose of Zhao Jinshan’s approach to Li Weidong was certainly not to discuss how to educate children. He also hoped that Li Weidong could point out another way to get rich.
After a few small chats, Zhao Jinshan talked about his money making in recent months.
I saw Zhao Jinshan said: “Chairman Li, I listened to you before and went to Korea to make a lot of money, but now there is not much oil and water in Korea. I don’t know where to look for business opportunities next. Point to me!”
“South Korea is not completely out of oil and water. They accept the assistance of the International Monetary Fund and at the same time they also accept their additional conditions. They have opened up a lot of industries. These industries will bring great profits. This is the real thing. The big fat!”
Li Weidong paused, and then said, “It’s just that this piece of fat is not our turn. The additional conditions designed by the International Monetary Fund are mainly prepared for Wall Street’s acquisition of Korean assets.
Looking at the entire East Asia region, it was basically caught up by the international financial crocodile. How many business opportunities are there? Mr. Zhao, in this Asian financial crisis, you have earned hundreds of millions, right? That’s a lot, it’s time to stop! ”
“Closing?” Zhao Jinshan was taken aback. This was not the answer he wanted, and then he said; “Chairman Li, I see those major international financial crocodiles, but there is no plan to stop.”
Li Weidong explained; “What can be attacked by the national financial predators must be areas with a relatively open financial system. Otherwise, even if the hot money goes in, it may not be able to come out.
Looking at the entire East Asia region, the financial system is relatively open, and it has not been looted by international financial predators. Only Hong Kong Island remains. I don’t think you will follow those hedge funds and become an airport island, right? ”
“Of course not! I, Zhao Jinshan, no longer learn and useless skills, and I will not harm the country’s interests in order to make money. If I really do that, the family elder must abolish me!” Zhao Jinshan said.
Li Weidong spread his hands: “That’s why I said, I should stop now.”
A hesitation appeared on Zhao Jinshan’s face, and then he said, “In addition to Asia, there are also business opportunities in other places. I have heard some news that some hedge funds are planning to go to the European market.”
“European countries have a much more sound financial system than Asian countries, and European countries have developed for so many years, they have relatively strong financial backgrounds, and there are no obvious structural problems in their economies. It is unlikely that major international financial crocodiles will replicate the success of Asia.” Li Weidong said.
Zhao Jinshan smiled slightly and replied: “I’m not talking about Western Europe, but Eastern Europe!”
“Are you talking about Russia?” Li Weidong immediately understood Zhao Jinshan’s intentions.
Zhao Jinshan nodded: “Russia is different from those Western European countries. I have studied Russia specifically. Their financial system has just been established in recent years, and many places are not mature.
And since the disintegration of the Soviet Union, Russia’s economy has not been very good. Their economic structure is worse than that of many Southeast Asian countries. Although I don’t understand any structural problems, I know that Russia’s economy must have many problems.
The most important thing is that Russia is a big country. The so-called centipede is dead but not stiff. How rich was the Soviet Union back then. Russia inherited the Soviet Union, and its wealth is still very rich. ”
Li Weidong shook his head: “Mr. Zhao, if you believe me, you’d better not go to this muddy water in Russia. The fighting nation is unreasonable. If you don’t care, you can lose money. possible.”
“The fighting nation?” Zhao Jinshan had obviously never heard of this nickname.
“This is a description of Russians, which means that they have a relatively sturdy personality, naturally bold and unrestrained, and fearless. But many of them do some unthinkable and unimportant things.” Li Weidong explained.
“So that’s it, this adjective is very appropriate. I know a few Russians, and I always go to Hara’s post!” Zhao Jinshan nodded.
The Asian financial crisis broke out in Thailand. There is no objection to this point.
As for the end of the Asian financial crisis, some people believe that China has won the financial defense war on Hong Kong Island, while others believe that it is Russia’s debt crisis.
After the disintegration of the Soviet Union, Russia has been using shock therapy. As a result, the economy has fallen into recession, and GDP has shrunk by 40%. It can only rely on selling oil and natural gas to maintain the normal operation of the country.
Russia’s economy itself has many problems, and then shock therapy was implemented. Many places directly copied the Western European system, resulting in many hidden dangers in their financial and economic systems, which happened to be the target of attacks by the international financial crocodile.
After the outbreak of the Asian financial crisis, the international financial crocodile immediately targeted Russia after a round of harvesting in East Asia.
Hong Kong Island has a relatively complete financial system. It must rely on the power of the country to fight against the international financial predators. Russia’s fragile and unsound financial system collapsed instantly after facing attacks from the international financial predators.
Fleeing capital, currency depreciation, and difficulty in repaying debts, what happened in Southeast Asian countries also appeared in Russia.
However, international financial speculators underestimated the fighting nation. The fighting nation’s financial warfare is completely unruly. Russia has directly adopted a big move, announcing an extension of the debt repayment time, or the use of commodities to repay the debt.
For example, the debt that originally matured in 1998, Russia stated that it would not repay it until 2000.
But you said you want to postpone the repayment, who knows if you will continue to postpone it in 2000? Is it postponed once, won’t it be postponed a second time? If the postponement keeps on, will the money be returned?
What’s more, it also includes factors such as inflation and currency devaluation. There are too many other uncertain factors.
In the international debt market, an unconditional announcement of a delay in debt repayment is almost tantamount to failing to account.
For international financial speculators, although short selling the ruble can make a profit, the money will have to wait a few years before it can be withdrawn, and it is still unknown whether the money will actually be available after a few years. This is undoubtedly taking the money. drift.
International financial speculators all play with leverage, and hundreds of millions of dollars can leverage tens of billions of dollars. Because of this, they are all seeking short-term profits.
With dozens of times of leverage, how can international financial speculators wait until a few years later to get their earnings! They can only close their positions and bear the losses themselves.
Therefore, the international financial speculators who went to the Russian market to make money, including Soros, eventually lost their money. They are still too naive. They didn’t expect that the fighting nation would not play cards according to their routines at all.
If the creditor does not want to postpone, Russia also provides a second method of debt repayment, which is to use commodities to repay the debt.
Russia’s heavy industry is still very strong, such as metallurgical products, machine parts, electricity, energy, and even weapons and nuclear fuels are all included in the list of debt repayment commodities.
In repaying Kazakhstan’s debt, Russia gave Kazakhstan more than 70 military aircraft and the S300 air defense missile system.
From this perspective, even if nuclear fuel is dared to pay off debts, Russia is also very sincere.
But Russian creditors, as long as they are still Western European countries, Western European countries are equally capable of industrialization. They do not lack Russian industrial products, and NATO cannot equip Russian weapons.
There was no money to ask for, and the goods were disliked. In the end, the debt was not paid, and the Russian debt crisis broke out.
Russia’s use of this trick has made many international financial speculators lose their money, but it has also caused the country’s credit to plummet. Since then, the status of the ruble has fallen by a thousand levels, and it has not been relieved until today.
Russia’s debt crisis has also affected many European sovereign funds, causing heavy losses for many Western hedge funds.
The most typical is the United States Long-term Capital Management Company, which is also a very famous hedge fund engaged in debt arbitrage in the United States. Together with Quantum Fund, Tiger Fund, and Omega Fund, they are also called the “Four Kings” of hedge funds.
The head of this company, Meriweather, is known as the father of Wall Street debt arbitrage. The partners include two Nobel Prize winners in economics, former US Treasury Secretary, Federal Reserve Vice Chairman, etc., which can be described as the financial sector. The dream-level combination.
However, in the Russian debt crisis, this hedge fund suffered. They played a 60-fold leverage and placed a heavy bet of more than US$300 billion, hoping to make a fortune. In less than four months, he killed himself.
Fortunately, the vice chairman of the Federal Reserve is a partner of the long-term capital management company. In the end, the Fed personally came forward and arranged for 15 international financial institutions to make capital injections to prevent the long-term capital management company from going bankrupt.
……
Li Weidong advised Zhao Jinshan not to go to Russia to do things, and he did not know if Zhao Jinshan could listen.
I saw Zhao Jinshan continue to ask; “Chairman Li, it is true that I did make a lot of money this time, and I also accumulated a lot of funds in my hands. So much money, I can’t keep it in my hands. , You have to find a place to invest!”
“It is said that you are a financial investment company, and the money in your hand always flows.”
Li Weidong thought for a while and said, “There is a place worth investing in, and that is the Nasdaq in the United States. It’s not too late to enter the venue.”
“Are you asking me to buy American stocks?” Zhao Jinshan asked.
Li Weidong nodded: “Especially the stocks of the Internet industry, it is very suitable to make short-term investments. At least it will be bullish in the next year, and it will be hard to say after one year.”
During the Asian financial crisis, the wealth of Japan, South Korea, and Southeast Asia was looted, but the wealth can’t disappear out of thin air, right?
Japan, South Korea and Southeastern countries have accumulated wealth for many years.
Where did all this wealth go in the end?
The Internet bubble in the United States two years later gave the world the answer.
As early as 1994, the Internet bubble in the United States began to blow, and the Nasdaq index, which is mainly concentrated in technology stocks, began to rise continuously. In that year, Bill Gates became the world’s richest man.
After the outbreak of the Asian financial crisis, Wall Street raided a large amount of capital in Asia, and Japan also experienced capital flight. In the end, these capitals were all converged to Nasdaq in the United States.
In 1998, the Internet bubble in the United States could continue to inflate for two more years, and it’s not too late to enter the market now. You can still eat a bite of meat.
Li Weidong’s suggestion made Zhao Jinshan a treasure, so he quickly took down notes.
Then Zhao Jinshan asked; “Chairman Li, you just said that Nasdaq is more suitable for short-term investment, but what about the long-term?”
“Are you still making long-term investments?” Li Weidong was taken aback.
In Li Weidong’s impression, Zhao Jinshan’s financial investment company should be similar to those hedge funds. Wherever there is **** smell, they will fly wherever they are, and they will run away when they make a fortune.
Zhao Jinshan replied: “You can’t always do short-term! Long-term income is more stable. Of course, it is best to have a higher rate of return.”
Li Weidong thought for a while, and said, “Well, long-term investment projects need to have a relatively high rate of return. It’s not impossible.”
“What is it?” Zhao Jinshan asked immediately.
Li Weidong did not answer, but he said with a smile; “Mr. Zhao, I am also more interested in long-term investment. It happens that I also have some spare money, such as me, how about it?”
“Chairman Li is here, I can’t ask for it!” Zhao Jinshan immediately showed a happy expression.
Zhao Jinshan is eager to get Li Weidong into the partnership. After all, Li Weidong will not make fun of his own money. If Li Weidong is willing to come, it means that this investment project will definitely make a lot of money.
On the contrary, if Li Weidong just opened his mouth and refused to put in real money, Zhao Jinshan would feel a little guilty.
I just heard Li Weidong say: “Mr. Zhao, your financial investment company mainly operates on Hong Kong Island. Recently, Hong Kong Island’s house prices have dropped a lot, right?”
“It has dropped a lot, and no one has bought the price yet.” Zhao Jinshan said.
“This is a good investment direction! The economy of Hong Kong Island still has great potential for development in the future. Now, taking advantage of the downturn in the property market in Hong Kong, it is a good opportunity to buy the bottom!” Li Weidong said.
“Do you mean to invest in real estate on Hong Kong Island?” Zhao Jinshan nodded suddenly, and then continued;
“This is a good investment direction. I have heard it a long time ago that buying a house on Hong Kong Island makes a profit without losing money. Many rich people on Hong Kong Island started their businesses in real estate.”
Li Weidong said, “I’m not talking about houses, but shops! Taking advantage of the low prices now, go to a prosperous place like Causeway Bay to buy shops on a street, and wait for the appreciation in the future!”
“Shop? Is that high return on investment?” Zhao Jinlong asked subconsciously.
“Of course it is high. There is a saying that one shop raises three generations. After a few years, the shops in Causeway Bay will be rich for three generations!” Li Weidong said with a smile.
……
The Asian financial crisis has had a huge impact on the property market on Hong Kong Island. This is also the best time to buy a house on Hong Kong Island. After this period of time, Hong Kong Island’s economy has developed rapidly, housing prices have also soared, and ordinary people buying houses have become a luxury.
Four thousand Hong Kong dollars a foot Victoria Bay ocean view room, it seems that it is unimaginable now, but at that time it needed a good floor to sell it.
At that time, the price of a public housing unit of 190,000 units could rise to tens of millions after more than 20 years.
The same goes for shops. In Causeway Bay, the most prosperous area, the price of shops has also dropped to the price of cabbage.
In the future, the monthly rent for a square meter here can reach 180,000. A little shop can easily cost millions of monthly rent. Shops with a monthly rent of more than 10 million will be everywhere.
The charter Wangguang collects shop rents, which cost more than 10 billion yuan every year. On Hong Kong Island, many celebrity foam molds are rich and small. There is actually no business at home, but there are only a few shops that can be rented out.
Compared with investing in residential buildings, the rate of return on investment in Wangpu is much higher.
Now it is the lowest time for housing prices on Hong Kong Island. If you don’t buy it at this time, when will you wait!
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(End of this chapter)