Chapter 519: Big crash

When Sir Youde received this news, his whole body trembled involuntarily. Therefore, this is what Huaxia people often say, "Fortune is unparalleled, and misfortunes never come singly?"
London is suffering from an unprecedented financial attack. Prime Minister Iron Lady warned him more than once to stabilize the Xiangjiang River, but the volcano here has also erupted!
Britain, the former empire of the sun never set, the king of the seven seas, what happened to this?
Doubts belong to doubts, and the problem still needs to be solved. The Hong Kong government has made a lot of money over the years by relying on the rapid growth of the economy and the ever-increasing land prices. However, the holes of the Overseas Trust Bank and Hang Lung Bank are too big, so take the two The bank swallowed the government several billion in one go, and then it would be a little bit powerless to pick up Ka Wah's offer.
In desperation, Sir Youde had to find one of the two real giants in Hong Kong, the Rong family, and at any rate, the Rong family reluctantly bought a 91.6% stake in Ka Wah Bank at a floor price of 350 million yuan. And the bank officially changed its name to CITIC Jiahua.
Despite these effects, the stock market has fallen by more than 20% as a whole, but the disposal of these three banks is finally in time. Although the huge debts owed by the three banks cannot be repaid immediately, they have met people who are in trouble. Within the tolerable range of the market.
So, this time should be over, right?
However, what happened next finally let Sir Youde, who had been exhausted, know what it means to be "defeated like a mountain".
Yongan Bank, a bank that has always been known for its conservative style, has not escaped the catastrophe in this wave of banking explosions. The grandson of its founder Guo Quan and current general manager Guo Zhikuang was revealed to have misappropriated US$10 million from the bank. The funds were used for stock trading and lost all the money.
Union Bank suffered a lot of trouble in this wave of runs that all banks in Xiangjiang were not immune to. Because the run broke the capital chain, Wen Rencai, chairman and general manager of the bank, left Xiangjiang and went to the United States in the name of treating illness. Afterwards, six directors of the bank resigned, resulting in no leader in the bank...
The entire Hong Kong banking industry is turbulent and crumbling!
Undoubtedly, because of the problems with many banks in HeungKong, the funds in the market suddenly became tense. While the interest rate continued to soar, it also severely damaged another industry that was extremely hungry for funds and extremely sensitive to interest-real estate.
The first to suffer is, of course, companies that are full of fraud in their operations, such as Carrian Real Estate.
Founded by Chen Songqing and rising in the late 1970s, Carrian Property was once one of the benchmarks in the real estate industry in Hong Kong. At the end of 1979, Carning acquired a controlling stake in the listed company Meihan Enterprise at a high price, renamed it Caring Real Estate, and used it as the flagship of the group.
What made Caring Real Estate famous in Hong Kong was the famous Golden Gate Tower transaction.
In January 1980, Carrian Real Estate purchased the Golden Gate Building in Admiralty from the Land Group at a price of 998 million yuan. In September 1981, Carrian announced that it would resell the Golden Gate Building to Lin Xiufeng Brothers for 1.68 billion yuan. The Bainingshun Group has made hundreds of millions in profits in less than a year. This transaction made Carrian Real Estate a shining star in the Hong Kong stock market. At the end of 1981, its market value was as high as 3.921 billion yuan, making it the fifth largest real estate in the Hong Kong stock market after Land, Cheung Kong, New World, and New Land. the company.
By the way, this transaction of Golden Gate Building was handled by the law firm Huiheng Law Firm where our lawyer Yu Peng Xia Yu worked.
After the success of this transaction, Caring Real Estate took advantage of its excellent performance and immediately started the issuance of new shares, and borrowed from the bank to raise a large amount of funds, and launched a large-scale acquisition activity. By the peak of early 1982, Caring had already It has become a large-scale enterprise group in Xiangjiang, with as many as 100 affiliated companies, and its businesses cover real estate, construction, trade, shipping, tourism, insurance and other fields, and it is very popular.
However, there is a good saying that only when the tide recedes do you know who is swimming naked.
Beginning in mid-1982, the Hong Kong Financial Industry, which had been baptized by a financial turmoil, began to tighten money and increase lending, especially the interest on real estate loans. Carrian's capital chain was suddenly tight.
With the spread of this wave of bank failures, Carning finally couldn't bear it.
After a series of failures to repay the due debts in time, the Hong Kong police conducted a surprise investigation on Carrian Real Estate, and then they were surprised to find that the so-called stock market star Carrian Real Estate was nothing but a castle built on the beach, and it took off. The source of it actually came from a shocking scam!
The famous "Golden Gate Tower" transaction in Hong Kong was never completed!
With the deepening of the investigation, multiple fraud cases of Caring Real Estate were exposed one by one, the chairman of the board of directors Chen Qingsong was arrested, and Caring Real Estate was wiped out overnight.
And this incident undoubtedly dropped a blockbuster in the real estate sector of Hong Kong.
Many real estate companies that had been shaky due to the recent continuous decline in real estate prices were affected. The old real estate company Carnival closed down; the Eagle, Regal Hotels and Paliburg three listed companies lost as much as 2 billion yuan and fell into a serious financial crisis ; Hang Lung Real Estate (in fact, the two have no relationship with Hang Lung Bank except for the same name.) They did not collect the land transfer fee, and after negotiating with the government to request the extension of payment, they had to abandon the bid. Several subway superstructures have lost more than 400 million deposits...
Even one of Hong Kong’s real estate leaders, the veteran real estate company Land Group controlled by British Capital, was not immune. Only the three major investment projects of the Central Exchange Square, the Miramar Hotel Old Wing, and the Baibi Mountain Development Plan suffered losses. More than 3 billion yuan, and a one-time provision of a loss of 1.583 billion yuan for the quarter. The public financial report showed that its debt was as high as 15.07 billion yuan. With this achievement, it was ranked as the largest debt company in Xiangjiang and was dubbed the "debt king" by investors... …
These successive bursts of bad news finally completely shattered the confidence of the financial market. For two consecutive weeks, the stock market has been declining. After the Hang Seng Index broke the 1,000-point integer mark, it still failed to stabilize its pace and kept hitting new lows during the year. , And finally barely stabilized near 700 points, almost cut in half.
Xiangjiang’s market was in chaos. The real estate crash, the stock market cliff, and the exchange rate fell sharply. The Hong Kong dollar even hit a high of 1:9 against the US dollar. The banking and real estate industries were terrible, and almost all industries were at stake. Horror scene.
In terms of land prices, compared with previous years, the current land prices in Hong Kong have generally fallen by 40% to 60%, with the largest declines being industrial land and high-end residential land.
To cite a few examples: The selling price of industrial land in Kowloon Bay, calculated by floor area, dropped from the highest level of 360 yuan per square foot in December 1980 to the current 25 yuan per square foot, a drop of 93%; Hong Kong Island South The high-end residential land along Bay Road also dropped from the highest level of 1502 yuan per square foot in September 1980 to the current 540 yuan per square foot, a drop of 60%!
The figures given by the finance department are even more chilling.
Although it has not yet reached the end of the year, after their calculations, it is estimated that the revenue and expenditure of the Hong Kong government in 1982 will have a deficit of nearly 4 billion yuan, which is in sharp contrast with the continuous surplus in previous years!
Sir Youde couldn't cry without tears in the face of this situation, and these figures were collected by some agencies and got to the negotiating table that is in the process of arduous seesaw on the Xiangjiang issue, and was slapped with a loud slap in the face. Only the rule of Britain can bring the face of Xiangjiang's prosperous foreign minister...