Chapter 444【Hong Kong Island Financial Restoration 1】

In early January 1969, Everbright Securities.

Liu Yu got here to Wu Guangyao’s workplace and stated: “Boss, Buffett has notified our companions that his funds are going to be refunded!”

Wu Guangyao pretended to be contemplative, after which stated for a second: “How about our earnings within the Buffett Funding Membership?”

Liu Yu replied: “The principal was 100 million US {dollars}. After two years of funding, the belongings reached 165 million US {dollars} presently.”

Wu Guangyao nodded, and stated: “With a return price of practically 30% yearly, Buffett just isn’t straightforward!”

Liu Yu stated: “It is actually not straightforward! A very powerful factor is that he’s fairly calm. The U.S. inventory market has risen for nearly ten years. How many individuals can maintain calm!”

Plainly Liu Yu additionally agrees with Buffett’s judgment and has a sure sense of hazard for US shares.

Wu Guangyao stated: “Effectively, evidently the U.S. inventory market goes to fall! Anyway, there are not any low-cost shares within the U.S. inventory market. Let’s withdraw too!”

Liu Yu stated: “Okay, then withdraw instantly, in order to not encounter a inventory market crash!”

Liu Yu is satisfied of Wu Guangyao. If Buffett has a little bit of foresight, then his boss is much more authoritative on this regard!

Wu Guangyao stated: “The funds of the Buffett Funding Membership shall be withdrawn instantly, and the Wu Household Fund of the Tiger Fund can even withdraw for me inside 3 months.”

After the withdrawal of those two funds, Wu Guangyao is equal to having practically 300 million US {dollars} of movable funds;

As well as, delivery will obtain 400 million U.S. {dollars} in dividends instantly, in addition to the income of assorted firms final 12 months;

So, Wu Guangyao had a money circulation of 800 million US {dollars} in early 1969.

Easy methods to spend 800 million US {dollars}?

Clearly, if there’s a financial institution, it’s dropping cash!

Cash can solely be preserved by investing!

Proceed to spend money on gold spot, there is no such thing as a doubt that Wu Guangyao already owns 300 tons of gold (buying is in progress);

Wu Guangyao determined to take a position one other 400 tons of gold spot, which is predicted to price 500 million US {dollars}.

There may be nonetheless 300 million U.S. {dollars} left, and Wu Guangyao rapidly decided;

Wu Guangyao determined to divide 300 million US {dollars} into two components, of which 100 million US {dollars} shall be used to spend money on actual property in Tokyo, Vancouver, Toronto and different locations;

The opposite 200 million US {dollars} are deposited in China Everbright Financial institution, prepared for their very own funding.

Liu Yu hesitated and stated, “Boss, the shares you advised me are certainly high-quality shares in Hong Kong shares. However presently, the inventory market is rising quickly. I believe we should always put out one other sum of cash. To spend money on different securities.”

Wu Guangyao stated: “Sure, Everbright Financial institution will offer you 50 million Hong Kong {dollars} in your operations! However the shares I talked about are associated to my main occasions and usually are not used for funding and hypothesis. Subsequently, they don’t seem to be allowed to be offered and need to proceed. Purchase me quietly.”

Liu Yu hurriedly stated with a severe face: “Don’t fear, the boss, I bear in mind this clearly, and I did it personally. It’s completely confidential.”

Wu Guangyao nodded, after which stated, “Are you able to analyze the state of affairs of Hong Kong Island’s inventory market presently?”

Liu Yu sorted out his ideas and stated: “The inventory market rebounded in April final 12 months (1968), and it truly began. After 9 months of rising, the inventory index rose from 56 factors to 130 factors, a rise of practically twice. .”

I’ve summarized six causes for this case: steady state of affairs, inflow of overseas capital, plentiful native sizzling cash, financial institution flooding (extreme deposits), optimistic financial improvement prospects, and inadequate inventory provide. “

When Liu Yu stated this, Wu Guangyao got interested and stated: “Clarify these six causes to me!”

Liu Yu knew that the boss was testing himself, and he shouldn’t be ashamed.

“The primary motive is that the state of affairs is steady. After experiencing the riots, the individuals of Hong Kong Island are wanting ahead to the peace and stability after the riots, and so they cherish it. This can be a results of the’individuals’s minds for governance’. In reality, entering into it. Since 1968, there have been voices eager for peace and calling for concord within the Chinese language political state of affairs on the periphery, the worldwide state of affairs, or the inner Hong Kong Island society. This ambiance is clearly essential to traders.

In the beginning of final 12 months, the political surroundings on Hong Kong Island stabilized. Excessive-level mainland officers instructed to not change the established order of Hong Kong, and resumed the provision of every day requirements from the Mainland to Hong Kong. Different exports additionally elevated enormously; thus, the economic and business industries on Hong Kong Island developed. That is the inventory market. A elementary think about energetic buying and selling. “

Wu Guangyao nodded, Liu Yu’s first motive evaluation was right;

Presently, Hong Kong Island has a steady political state of affairs and a sound authorized system.

Seeing Wu Guangyao affirmed himself, Liu Yu was assured, after which stated:

“The second motive is the inflow of overseas capital. After the state of affairs in Hong Kong stabilized, the funds that escaped in 1967 started to return. In spite of everything, Hong Kong Island is probably the most appropriate place for our Chinese language to outlive; A sequence of political instability within the decade additionally not directly accelerated the circulation of funds again to Hong Kong;

Hong Kong has all the time performed an middleman position in speaking with Chinese language communities at residence and overseas; this position just isn’t solely outstanding in enterprise and commerce, however can be mirrored in data alternate and monetary alternate.

Hong Kong Island has all the time been regarded by the Chinese language in Europe, the US, Australia, Canada, and Southeast Asia as a ‘fund security zone’. They’re significantly within the economic system of Hong Kong Island. “

Wu Guangyao stated with a smile: “That is the reality. Hong Kong Island is near the Mainland, and abroad Chinese language are all the time considering of the motherland. Hong Kong Island is everybody’s wharf, able to help the motherland at any time.”

Liu Yu naturally knew that his boss was additionally a patriotic businessman, so he supplied flattery.

“Boss Gao Yi!”,

Wu Guangyao waved his hand to sign Liu Yu to proceed!

Liu Yu went on to say: “The third motive is that native sizzling cash is plentiful; the Chinese language on Hong Kong Island have been adhering to the standard virtues of’accumulating grain to forestall starvation’ and’making wealth by means of diligence and thrift.’ The deposits of Hong Kong residents have reached an astronomical determine.

The depreciation of the Hong Kong greenback in 1967 has made many voters perceive a reality: that’s, the meager financial institution curiosity can not offset the losses attributable to inflation and forex devaluation.

The result’s that some savvy residents started to seek out some funding channels that may observe the tempo of financial improvement, and the inventory market is undoubtedly the primary channel that everybody thinks of;

So, a lot of residents started to contact the inventory market and selected to take a position. “

Wu Guangyao nodded, and echoed: “Even the individuals round me have began to commerce in shares. Plainly that is the final development of society!”

Liu Yu stated: “I heard that the boss helped a number of individuals round him to settle the funding loss?”

Wu Guangyao waved his hand and stated: “Set it proper? If I don’t put strain on them, I’m afraid they must make harmful strikes; so I allow them to slowly return the cash each month with out affecting their lives.”

Liu Yu nodded and stated: “Sure, it’s too straightforward to face up, these individuals will select to overlook! You possibly can’t let the boss come to assist each time, and the boss can’t be too busy!”

Wu Guangyao nodded, after which stated, “Go on!”

Liu Yu stated: “The fourth motive is financial institution flooding. When overseas capital flows into Hong Kong Island, they may first select to deposit in native banks, and native deposits have additionally elevated unabated. Naturally, native banks have flooded (extreme deposits). ). There’s a saying within the West: “Bankers are the neatest traders.” In an surroundings with ample deposits, banks scale back curiosity on deposits on the one hand, and calm down lending situations on the opposite, in order that clients’ deposits change into “theirs”. Cash making software’;

Amongst them, the financial institution’s rules on “inventory mortgage” have change into significantly energetic; banks have “relaxed their arms” for creditworthy and well-operated clients (brokerage corporations), and have nearly achieved “Huang Daxian” (will reply to requests). There are extra favorable.

Due to this, the procedures are easy and the fee is low, so hypothesis actions have change into significantly energetic. “

Wu Guangyao sighed: “As soon as the pyramid falls, it is going to be a catastrophe!”

Liu Yu remained silent, considering in his coronary heart that China Everbright Financial institution has been very energetic in lending this type of loans just lately, for concern of the boss’s thought;

However Liu Yu believes that earlier than the pyramid fell, China Everbright Monetary Division may need escaped.

This isn’t solely the boldness in oneself, but in addition the belief within the boss!

Subsequent, Liu Yu analyzed the 2 causes for ‘optimistic financial improvement prospects’ and ‘much less inventory provide’, and he additionally analyzed the highest factors;

The prospects for financial improvement are optimistic. This was initially a development on Hong Kong Island, and it was totally manifested as early because the mid-Nineteen Fifties;

The dearth of inventory provide is as a result of there are few listed firms on Hong Kong Island. Nevertheless, the variety of listed firms on Hong Kong Island will improve by a big quantity sooner or later, and it might double this 12 months.

Liu Yu’s efficiency made Wu Guangyao very relieved. With Liu Yu’s means, coupled together with his personal basic outlook, he will certainly make nice achievements within the securities area sooner or later.

(Finish of this chapter)