Break out of the courtyard

Chapter 843 The Wolf Nature of Capital

The next day, Tang Ren and his son Tang Lie rushed back to Hong Kong Island and held a party at the Renheyi Community on the Peak. They invited all the Hong Kong businessmen who had followed the Tang family in shorting Japanese stocks in the past few days.

They wanted to hold the party at Shenzhen Peace Hotel, but unfortunately the place was booked out and Zhang Heping was not available to attend.

"I heard that Mr. Zhang is busy doing research at Shenzhen Peace College recently and has no time to deal with Japanese stocks."

"If he didn't have time to take care of it, why would he let the Tang family take the lead in shorting Japanese stocks?"

"You don't know this. The Tang family's leading short-selling of Japanese stocks this time has nothing to do with Mr. Zhang."

"Haha, without Mr. Zhang's advice, I don't believe they have the guts to short Japanese stocks."

"Do you think you will continue to short Japanese stocks next week?"

Just as some Hong Kong businessmen were discussing privately, Tang Ren, the organizer of the party, walked to the makeshift small stage, said some words of thanks for coming into the upright microphone, and then handed the microphone to his third son Tang Qiang.

Tang Ren and Tang Lie were still far away in Magnesium a few days ago, organizing Hong Kong businessmen to short Japanese stocks. In fact, it was Tang Qiang who coordinated it in Hong Kong Island.

Strictly speaking, Tang Qiang did not organize the short selling of Japanese stocks. He just told the Hong Kong businessmen with whom he had a good relationship that the Tang family was preparing to liquidate their Japanese stocks.

Then, the herd effect occurred.

After Tang Qiang said some meaningless words, he handed the microphone to his elder brother Tang Lie.

Tang Lie took a glass of champagne to the stage, and smiled into the microphone, "I'm sure everyone is concerned about whether we should continue to short Japanese stocks next week."

As soon as these words were spoken, everyone in the audience quieted down and no longer gathered in groups of three or five to whisper to each other.

Tang Lie spread his hands and said helplessly: "To be honest, I'm not sure either!"

"What did Mr. Zhang say?" someone shouted from the audience.

"My uncle did not participate in shorting Japanese stocks this time!" Tang Lie gave an ambiguous reply, and then continued: "I received news that European Magnesium Fund will purchase a large number of Japanese company stocks."

"The reason why we were able to short Japanese stocks in the first three days was actually to help Euro-Magnesium funds lower the acquisition price."

A smart person in the audience immediately responded, "Mr. Tang means that if Euro-Magnesium Funds still want to lower the acquisition price of Japanese companies, we will have the opportunity to continue shorting Japanese stocks?"

"Who doesn't want to lower the purchase price as much as possible?" A pot-bellied real estate developer laughed and said, "It seems that we can continue to short Japanese stocks next week!"

"Everyone!" Tang Lie said loudly, "European Magnesium Funds want to continue to lower the price, but the Japanese people are definitely not willing to sell at a low price."

"This can be seen from the announcement of the Ministry of Finance of Japan on Friday afternoon."

"So, I'm going to wait and see next week."

Someone asked in confusion: "Mr. Tang! Why don't we first ambush the stocks of Japanese companies that European Magnesium Fund wants to acquire, and then sell them to European Magnesium Fund at a higher price?"

"Your idea is great!" Tang Lie praised first, then reminded: "But, at what price are you going to buy, and at what price are you going to sell to those European Magnesium funds?"

……

While this group of Hong Kong businessmen were discussing the direction of the Japanese stock market when it opens next week, various European and American funds were selling the Japanese yen.

These foreign investors took such actions because the Ministry of Finance threatened to suspend foreign exchange trading on Friday. Euro-Magnesium Capital seemed to be frightened, but in fact it was another disguised means of shorting Japanese stocks.

Over the weekend, as some foreign capital withdrew from Japan, rumors spread that Euro Magnesium Capital had stopped investing in Japanese companies, casting a thick cloud over the Japanese stock market.

Countless Japanese companies that have failed in stock and real estate speculation not only have to face the pressure of bank collection, but also have to take into account the company's performance and the interests of their employees.

The point is that many Japanese companies have turned their main business into stock and real estate speculation...

Monday, April 4th, has arrived in a flash.

The Japanese stock market opened lower as various funds were waiting for the Ministry of Finance's 10 trillion rescue funds.

On this day, Heping Group issued an announcement that it would repurchase all shares of Heping Automobile Co., Ltd. and prepare to withdraw from the Japanese stock market.

As soon as the announcement came out, Peace Auto’s stock price quickly turned red, causing many people to want to buy it but unable to.

It was this phenomenon that caused many Hong Kong businessmen to misjudge and rush to buy some Japanese stocks that they thought had good performance.

These Hong Kong businessmen wanted to wait for Euro-Magnesium Capital to come in and take over, but Euro-Magnesium Capital was waiting for the Ministry of Finance to come in and provide a guarantee.

As a result, a week passed quietly during the wait, and the Japanese stock market was like a stagnant pool of water, with occasional red spots appearing in the green.

What outsiders don’t know is that the Japanese government has been settling accounts this week.

Since the beginning of last year, the decline in real estate and stock prices has caused Japan to suffer wealth losses of up to 1350 trillion yen!

What does this number mean?

It is equivalent to the total personal financial assets of Japan, or the total GDP of Japan in the previous three years!

The worst thing is that after the real estate bubble was burst, land prices and housing prices continued to fall. Land and houses on the entire island of Japan could not be sold at all, and there were empty houses and unfinished buildings everywhere!

Therefore, compared to the Japanese stock market which has fallen to the bottom, the Japanese government is now more concerned about how to save the real estate that is rotting halfway up the mountain.

For this matter, the Aso couple came to Shenzhen Peace College again, wanting to ask Zhang Heping whether he was willing to take over the real estate in Ridao.

After all, the Heping Group once purchased a large amount of land and real estate in the eastern part of Ridao, and made a lot of money from it!

Of course, the Aso couple came here to find out what Zhang Heping was busy with at Shenzhen Peace College, which caused the mainland to build a military camp on Nanshan Mountain.

Unfortunately, they arrived at the wrong time. The school guard who stopped them told them that Consultant Zhang and his family were not at home and had gone out traveling.

The Aso couple made a number of phone calls but were unable to find out the whereabouts of Zhang Heping's family. They thought they might have gone to the mainland to work on some secret project, so they returned to Hong Kong Island first.

Zhang Heping and his family did leave Shenzhen and headed north, passing through Wucheng and Seoul, and finally arrived in the capital to celebrate Ma Xiuzhen's birthday.

The purpose of going to Wucheng is naturally to check out the production plans of the Wucheng Heping Automobile Branch and the Wucheng Shipyard, and to take a look at the progress of laser weapon development at the Heping Display Factory.

Going to Seoul was for the aircraft production plan of the Xishan Aircraft Manufacturing Plant.

Some people wanted to develop fighter jets first, some wanted to develop stealth bombers first, and some wanted to develop unmanned reconnaissance aircraft first. Finally, it came to Zhang Heping, who found that those junky equipment could not do anything.

After some inquiries, Zhang Heping learned that the Xishan Aircraft Manufacturing Plant was preparing to be converted into a car factory. When they learned that he wanted to form a joint venture to build aircraft, they urgently stopped the conversion project and then gathered together a lot of decent mechanical equipment.

Although Zhang Heping felt cheated, after all, he invested 50 billion magnesium yuan and only asked for 49% of the shares.

But he did not delve into the matter further and decided on the spot to sell the broken equipment and replace them all with new ones.

Finally, he stayed in Seoul for two days. With the warm hospitality of the locals, he finally promised to build a thorium-based molten salt reactor nuclear power plant in Seoul and Chang'an. He also called the Shenzhen Southern Electric Power Company on the spot and asked them to send people to inspect the construction site of the power plant as soon as possible.

By the way, the Southern Power Utility Company has had a lot of tasks recently. There are 10 thorium-based molten salt reactor nuclear power plants currently under construction, plus the two in western Shaanxi, the total number has increased to 2.

However, the Southern Power Company has trained a lot of nuclear power talents over the years. In addition, the construction periods of these nuclear power plants are staggered and not built simultaneously, so it doesn't matter if two more are added. The team engaged in the basic construction of the nuclear power plants is just idle.

Since two big projects were promised, Chang'an naturally had to show some appreciation. They kept Zhang Heping and his family in Chang'an and treated them warmly for a day before letting them leave.

Returning to the capital city after a long absence, I can see many busy construction sites on the way from the airport into the city.

When the convoy entered the city, it was a rare traffic jam, which shows that there are a lot more vehicles of various types in the capital.

……

Although the Aso couple did not meet Zhang Heping, they were not idle after returning to Hong Kong Island.

Thanks to Zhang Heping's special treatment of them, many Hong Kong businessmen still met with the two Japanese islanders when they heard that they were visiting them.

As a result, the news that Japanese people wanted to find Hong Kong people to invest in Japanese real estate spread.

It’s a pity that the leading Hong Kong businessmen, including the Tang family, the He family, the Guo family, and the Bao family, all went to the capital to celebrate the birthday of Zhang Heping’s mother Ma Xiuzhen.

Although it is a birthday celebration, 61-year-old Ma Xiuzhen is still not older than Chairman He and the charter boat king.

To put it bluntly, I just want to find an excuse to get together and talk to Zhang Heping about investments in Japan.

Ever since Zhang Heping made a fortune in Japanese real estate, the vision of these Hong Kong businessmen is no longer limited to the small piece of land of Hong Kong Island.

Unfortunately, when they finally met Zhang Heping, they were poured a bucket of cold water.

"In the past 20 years, I will not consider real estate in Rijima!" Zhang Heping was at his home on the north bank of Houhai. After listening to the explanation of his purpose by Chairman He, Chairman Guo and others, he stated his thoughts directly.

"Mr. Zhang, you may not know this!" Chairman Guo hastily added, "The land and housing prices in Japan have plummeted. If we can buy the assets of bankrupt Japanese real estate companies at a low price, the profits will be no less than what we make from stock speculation."

Zhang Heping picked up the teacup and shook his head slightly, saying, "The situation Mr. Guo described has two prerequisites. One is that Japan's land policy has not changed, and the other is that Japan's real estate can survive in a few years."

"Based on the current situation, as European and American funds withdraw from Japan, the Japanese stock and property markets will not recover in the short term."

"With the bad debts of Nippon Shima Bank, many Japanese companies will not only face repayment pressure, but also subsequent financing pressure. Do you think the Japanese government will allow these Japanese companies to go bankrupt and be liquidated?"

"I don't think so!" Zhongxin Rong Lao said, "Once the Japanese government agrees to the bankruptcy and liquidation of those Japanese companies, all the pressure of bad debts will be transferred to the Bank of Japan!"

"To save Japanese companies is to save Japanese banks!" Chairman He nodded and said, "If the Japanese government does not allow these Japanese companies to go bankrupt and be liquidated, then there is no such thing as buying up the assets of bankrupt Japanese real estate companies at a low price."

"Even if there are no cheap assets in this area, we can still buy some land and buildings at low prices!" Chairman Guo said somewhat unwillingly:

"After all, Dongdu is an international metropolis. Even if the land and housing prices in Dongdu drop to a lower level, they will rise again in the future!"

"So!" Zhang Heping said with a smile, "You want to bet that Japan's land policy has not changed!"

"What changes?" Chairman Guo asked puzzledly.

Zhang Heping casually said, "If you were the decision-makers of the Japanese government, after experiencing the sharp drop in the real estate and stock markets, what methods would you think of to save the market?"

"What methods will you think of to put an end to previous speculative behavior?"

“For example, land policy, do you think it is necessary to change it?”

The He family is also involved in the real estate business. Chairman He said, "If you want to limit land speculation and prevent real estate developers from not developing the land, I will propose to levy an idle land tax every year!"

Chairman Guo frowned and said, "I can just build a few houses on the land and leave them idle. When the land price goes up, it's the same thing as selling them."

Zhang Heping smiled and said, "If we remove the word 'idle', what if we still have to collect land tax every year?"

"Impossible!" Chairman Guo shook his head and denied it: "If the Japanese really do that, who will go to Japan to do real estate in the future!"

"You can't deny that doing so is the most effective way to prevent land speculation." Zhang Heping looked at Chairman Guo's face full of reluctance and asked with a smile:

"Mr. Guo is so concerned about Ridao Real Estate today. I wonder if he has heard some news?"

"What kind of information could he have?" President He said with a smile, "He was probably moved by the Aso couple's words and turned a blind eye to many foreseeable risks."

Zhang Heping finally reminded: "I am not optimistic about Japan's real estate anyway, not to mention how much loss the Japanese real estate and stock market crash has caused."

"Just looking at the scale of bad debts of Japan Island Bank, it would take at least 10 to 20 years to digest so much bad debts."

“Will Japan Island Bank continue to lend money to individuals and companies to buy or build houses while it digests those bad debts?”

"Even if it does, I think there will be a lot of restrictions."

If there are too many loan restrictions, it will deter people from buying homes and it will also prevent companies from building homes.

For real estate developers in Hong Kong Island who are accustomed to selling pre-sale properties and recovering funds in advance, if bank loans are restricted, their start-up capital will be limited, and they will not be able to play the trick of making money out of nothing.

"Old Guo, think more about the Ridao Real Estate matter!" Brother-in-law Tang Ren interrupted at the right time: "My brother-in-law will not harm you, you should think carefully about his analysis just now."

Tang Qiang had no interest in real estate. Seeing that the elders were silent, he hurriedly asked, "Uncle, it is said that after the European and American funds withdrew from Japan, they would no longer invest in Japanese companies, causing the Japanese stock market to fall for more than ten days."

"Do you think we should short Japanese stocks again? After that, we can buy Japanese stocks at the bottom and wait for the rescue funds from the Japanese Ministry of Finance to enter the market."

"Have you ever seen a wolf pack?" Zhang Heping took a sip of tea and said slowly, "If you think of those European Magnesium Capital as a wolf pack, you will find that you don't have to kill the prey they target right away. You can wait until the prey reveals a flaw before attacking it in a group."

"Then the question is, have you discovered what prey those European Magnesium Capital are targeting?"

Tang Qiang asked in surprise: "Aren't they those Japanese companies?"

"Yes and no!" Zhang Heping smiled calmly, "Those European Magnesium Capitals have similar ideas to yours. They probably all want to buy the Japanese stock and property markets at a low price."

"You all think that Japan, the world's second largest economy, can recover quickly and then let the Japanese stock market and property market rebound quickly."

"But what other advantages does Japan have in automobiles, machine tools, and electronic products?"

……