Rebirth of the Industrial Tycoon

The main purpose of Zhao Jinshan coming to Li Weidong was of course not to discuss how to educate children. He also hoped that Li Weidong could point out another way to make a fortune.

After a few chats, Zhao Jinshan talked about how he had made money in recent months.

I saw Zhao Jinshan say: "Chairman Li, I listened to you before and went to South Korea to make a lot of money, but now there is not much oil and water in South Korea. I don’t know where to look for business opportunities next. You have to go again." Give me some pointers!”

"It's not like there is no money to be made in South Korea. They accept assistance from the International Monetary Fund, and at the same time they accept their additional conditions and open up many industries. These industries will bring huge profits. This is the real The big fat one!”

Li Weidong paused and then said, "It's just that it's not our turn to eat this piece of fat. The additional conditions designed by the International Monetary Fund are mainly prepared for Wall Street to acquire Korean assets.

Looking at the entire East Asia region, it has basically been taken advantage of by international financial giants, and there are not many business opportunities left. Mr. Zhao, during this Asian financial crisis, you made hundreds of millions, right? It’s too much, it’s time to stop! "

"Stop?" Zhao Jinshan was slightly stunned. This was not the answer he wanted. Then he said, "Chairman Li, I don't think those international financial giants have any intention of stopping."

Li Weidong explained: "Things that can be attacked by national financial giants must be areas with a relatively open financial system. Otherwise, even if 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 has not been robbed by international financial giants. The only one left is Hong Kong Island. I don’t think you will follow those hedge funds and short Hong Kong Island? "

"Of course not! No matter how uneducated I am, I, Zhao Jinshan, will not harm the interests of the country just to make money. If I really do that, if nothing else, the old man in the family will have to destroy me!" Zhao Jinshan said.

Li Weidong spread his hands: "That's why I said, we should stop now."

A trace of hesitation appeared on Zhao Jinshan's face, and then he said, "Besides Asia, there are also business opportunities in other places. I heard some news that some hedge funds are planning to go to the European market."

"The financial systems of European countries are much more sound than those of Asian countries. Moreover, European countries have developed for so many years, have relatively strong financial foundations, and have no obvious structural problems in their economies. It is unlikely that international financial giants will replicate Asia's success." Li Weidong said.

Zhao Jinshan smiled slightly and replied: "I'm not talking about Western Europe, but Eastern Europe!"

"You're talking about Russia, right?" Li Weidong immediately understood Zhao Jinshan's intention.

Zhao Jinshan nodded: "Russia is different from those Western European countries. I have studied Russia specifically. Their financial system has only been established in recent years, and many places are immature.

And since the collapse of the Soviet Union, Russia's economy has not been doing well. Their economic structure is worse than 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. The Soviet Union was so rich back then. Russia inherited the Soviet Union and its family foundation is still very rich. "

Li Weidong shook his head: "Mr. Zhao, if you believe me, you'd better not go into Russia's muddy waters. Fighting nations are unreasonable. If you are not careful, you will lose all your money." possible."

"Fighting Nation?" Zhao Jinshan had obviously never heard of this nickname.

"This is used to describe Russians, which means that they have a strong character, are naturally bold and unruly, and are fearless. But many of them do some unimaginable and ignorant things because of this." Li Weidong explained.

"I see, this adjective is very appropriate. I know a few Russians who always blow whistles!" Zhao Jinshan nodded.

There is no dispute that the Asian financial crisis broke out in Thailand.

As for the end of the Asian financial crisis, some people believe that China won the financial defense war on Hong Kong Island, while others believe that it was Russia's debt crisis.

After the collapse of the Soviet Union, Russia has been using shock therapy. As a result, the economy has fallen into recession, and its GDP has shrunk by 40%. It can only rely on selling oil and natural gas to maintain the normal operation of the country.

The Russian economy itself has many problems, and then it implemented shock therapy. Many places directly copied the Western European system, leaving many hidden dangers in their financial and economic systems. They were the targets of attacks by international financial predators.

After the outbreak of the Asian financial crisis, international financial giants immediately targeted Russia after making gains in East Asia.

Hong Kong Island has a relatively complete financial system, which relies on the power of the country to fight against international financial predators. Russia's fragile and imperfect financial system collapsed instantly after being attacked by international financial predators.

Capital flight, currency depreciation, and difficulty in repaying debts. What happened in Southeast Asian countries also happened in Russia.

However, international financial speculators have underestimated the fighting nation. The fighting nation's financial war is completely unruly. Russia directly made a big move, announcing an extension of the debt repayment time, or using goods to repay the debt.

For example, Russia said it would not repay the debt due in 1998 until 2000.

But you said you wanted to postpone the repayment. Who knows if you will continue to postpone it in 2000? If you postponed it once, won’t you postpone it a second time? If you keep postponing it, will the money still be repaid?

What’s more, there are factors such as inflation and currency depreciation. There are too many uncertain factors.

In the international debt market, unconditional announcement of postponed debt repayment is almost equivalent to defaulting on debt.

For international financial speculators, although short selling the ruble can make a profit, the money can only be withdrawn after a few years, and it is still unknown whether the money can be really obtained after a few years. This is undoubtedly a waste of money.

International financial speculators are all leveraging. A few hundred million US dollars can leverage tens of billions. That is why they pursue short-term profits and run away as soon as they make money.

With dozens of times leverage, how can international financial speculators wait for a few years to get their profits! 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 all their money. They were too naive. They didn't expect that the fighting nation would not play by the rules at all.

If the creditor does not want to postpone, Russia also provides a second way to repay the debt, that 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 fuel, which are included in the list of debt repayment commodities.

When repaying Kazakhstan's debt, Russia gave Kazakhstan more than 70 military aircraft and s300 air defense missile systems.

From this perspective, Russia is very sincere in daring to use nuclear fuel to repay debts.

However, as long as Russia's creditors are still Western European countries, Western European countries have outstanding industrial capabilities. They are not short of Russian industrial products, and NATO is unlikely to equip Russian weapons.

There is no money, and the goods are despised, which eventually led to the debt being unable to be repaid, and the Russian debt crisis broke out.

Although Russia used this trick to make many international financial speculators lose all their money, it also caused the country's credit to plummet. Since then, the status of the ruble has fallen sharply and has not recovered to this day.

Russia's debt crisis has also affected many European sovereign funds, causing many Western hedge funds to suffer heavy losses.

The most typical example is the US Long-Term Capital Management Company, which is also a very famous hedge fund in the United States engaged in debt arbitrage. Together with the Quantum Fund, Tiger Fund, and Omega Fund, they are called the "Four Heavenly Kings" of hedge funds.

The head of this company, Meriwether, is known as the father of Wall Street debt arbitrage. Among its partners are two Nobel Prize winners in economics, the former US Deputy Secretary of the Treasury, and the Vice Chairman of the Federal Reserve. It can be said to be a dream combination in the financial field.

However, during the Russian debt crisis, this hedge fund suffered. At that time, they played a 60-fold leverage and placed a heavy bet of more than 300 billion US dollars, hoping to make a big profit. As a result, in less than four months, they played themselves to death.

Fortunately, the vice chairman of the Federal Reserve is a partner of Long-Term Capital Management. In the end, the Federal Reserve personally arranged for 15 international financial institutions to inject capital, which saved Long-Term Capital Management from bankruptcy.

Li Weidong suggested that Zhao Jinshan should not go to Russia to cause trouble, but he didn't know whether Zhao Jinshan would listen to him.

Zhao Jinshan then asked; "Chairman Li, to be honest, I did make a lot of money this time, and I have accumulated a lot of funds. I can't keep so much money in my hands all the time. I have to find a place to invest!"

"That's right, you are a financial investment company, and the money in your hands must always flow."

Li Weidong thought about it and said; "There is a place worth investing, that is the Nasdaq in the United States. It's not too late to enter now."

"Are you asking me to buy American stocks?" Zhao Jinshan asked.

Li Weidong nodded: "Especially for stocks in the Internet industry, it is very suitable for short-term investment. At least it will be bullish in the next year, but it is 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 just disappear out of thin air, right?

How can the wealth accumulated by Japan, South Korea and Southeast Asian countries over the years be gone!

Where did all this wealth go in the end?

Two years later, the Internet bubble in the United States told the world the answer.

As early as 1994, the bubble of the Internet in the United States began to blow up, and the Nasdaq index, where technology stocks are mainly concentrated, began to rise continuously. Bill Gates also became the world's richest man in that year.

After the outbreak of the Asian financial crisis, Wall Street plundered a lot of capital in Asia, and capital flight occurred in Japan. In the end, all this capital gathered in the Nasdaq in the United States.

In 1998, the Internet bubble in the United States could continue to expand for two years. It is not too late to enter the market now, and you can still get a piece of meat.

Li Weidong's suggestion made Zhao Jinshan feel like he had found a treasure, and he quickly took notes.

Then Zhao Jinshan asked, "Chairman Li, you just said that Nasdaq is more suitable for short-term investment, what about long-term?"

"You still make long-term investments?" Li Weidong was slightly stunned.

In Li Weidong's impression, Zhao Jinshan's financial investment company should be similar to those hedge funds. They will fly wherever there is the smell of blood, and run away after making a sum of money.

Zhao Jinshan replied: "You can't always do short-term business! Long-term returns are more stable. Of course, it's best to have a higher rate of return."

Li Weidong thought for a while and said, "Long-term investment projects require relatively high returns. It's not impossible."

"What is it?" Zhao Jinshan asked immediately.

Li Weidong did not answer, but said with a smile: "Mr. Zhao, I am also interested in long-term investment. I happen to have some spare money on hand. How about counting me in?"

"Chairman Li is here very soon. I couldn't ask for it more!" Zhao Jinshan immediately showed a happy expression.

Zhao Jinshan is eager to get Li Weidong to join him. After all, Li Weidong will not joke with 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 kept talking but refused to invest real money, Zhao Jinshan would feel a little guilty.

Just listen to Li Weidong say: "Mr. Zhao, your financial investment company is mainly active in Hong Kong Island. Recently, housing prices in Hong Kong Island have dropped a lot, right?"

"It has dropped a lot, and no one is buying it even though the price has dropped." Zhao Jinshan said.

"This is a good investment direction! Hong Kong Island's economy still has great potential for development in the future. Taking advantage of the downturn in Hong Kong's property market, it is a good opportunity to buy at the bottom!" Li Weidong said.

"You mean to invest in real estate on Hong Kong Island?" Zhao Jinshan nodded as if he suddenly understood, and then continued;

"This is a good investment direction. I have heard a long time ago that buying a house on Hong Kong Island is a guaranteed profit. Many rich people on Hong Kong Island started their career in real estate."

Li Weidong said: "I'm not talking about residences, but shops! Take advantage of the current cheap housing prices, go to a prosperous commercial place like Causeway Bay, buy a shop on a street, and wait for the appreciation in the future!"

"Shop? Does that one have a higher return on investment?" Zhao Jinlong asked subconsciously.

"Of course it's high. There is a saying that one shop can support three generations. In a few years, the shops in Causeway Bay will be able to support three generations!" Li Weidong said with a smile.

The Asian financial crisis has had a huge impact on the property market in Hong Kong Island. This is also the best time to buy a house in Hong Kong Island. After this period of time, Hong Kong Island's economy developed rapidly, housing prices also soared, and buying a house became a luxury for ordinary people.

A house with a sea view of Victoria Bay costing HK$4,000 per square foot is simply unimaginable now, but at that time it required a good floor to sell it.

At that time, a public housing unit priced at 190,000 yuan, more than 20 years later, the price could rise to tens of millions.

The same is true for shops. In the most prosperous area of ​​Causeway Bay, the prices of shops have also dropped to the price of cabbage.

In the future, the monthly rent for one square meter here can reach 180,000 yuan. The monthly rent for a shop with a small size can easily reach millions. There are even more shops with a monthly rent of more than 10 million yuan.

The charter king alone collects more than 10 billion in shop rent every year. However, many charter stars and young models in Hong Kong are rich and have small businesses. In fact, their families do not have any business, they just have a few shops that can be rented out.

Compared with investing in residential buildings, the return rate of investing in prosperous shops is much higher.

Now is the time when housing prices are at their lowest on Hong Kong Island. If you don’t buy it now, wait until later!

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