Chapter 577： Asian financial crisis

Chapter 577

George thought for a while and continued, "The entire Asian financial market is in a very strong financial bubble. It may not take long."

In the memory of his previous life, the Asian financial turmoil occurred in 1997, when the bubble completely burst. But before 97 again, the bubble has been accumulating and expanding, and the accumulation of risks is accelerating.

In fact, just now, the rent-to-sale ratio of Hong Kong's housing prices has far exceeded the level of normal countries. In order to control housing prices not to skyrocket in the short term, so as not to cause more problems or even trigger a chain reaction. The Hong Kong government also issued some regulations on the regulation of housing prices in the previous period.

However, these weak regulations cannot change the general trend after all. The policy of the Hong Kong government has always only hoped that housing prices will rise slowly, rather than really intending to control housing prices, or to restore housing prices to a level that the manufacturing industry can adapt.

Regardless of the previous life or this life, the Hong Kong government did not have the guts to burst the bubble. As long as the Hong Kong government does not have the guts to pierce the bubble and try to make a fortune in this bubble, there will be a steady flow of inflow.

In the final stage of the bubble, these big capitalists will sell the bubble in their hands to the civilians in a beautiful package.

Once that time comes, all newspapers, media, magazines and television, and even senior officials of the Hong Kong government will come out to endorse and guarantee these powerful capital.

At that time, all public opinions will collectively endorse the high housing prices and use various methods to prove that housing prices will always rise, forcing everyone to get in the car quickly.

It wasn't until those people who realized afterwards bought these sky-high price bubbles that the bubbles collapsed, and the last people who took the order were trapped for a lifetime.

George continued, "Beijing, in 1993, greatly devalued the RMB exchange rate from 5.5 to 8.3. In the past two years, through the sharp depreciation of the RMB, the capital has gained a lot of money in coastal areas. With foreign investment, a large number of factories have sprung up along the coast."

"In this case, the entire manufacturing industry in Southeast Asia is being swallowed by the capital."

He continued, "Southeast Asia has lost its manufacturing industry, but in the past two years they have not thought of improving their own manufacturing environment. They have adopted more radical measures than Hong Kong. Southeast Asian countries have not only failed to experience a decline in manufacturing Tax cuts." Huang was late

"On the contrary, in order to maintain high taxes, they borrowed heavily from international capital and used the borrowed funds to push up the real estate and stock markets. They created false prosperity in order to maintain their taxation and luxury lives."

He emphasized, “Once the international capital is unprofitable, the capital that fled will instantly destroy the financial order in Southeast Asia. At that time, Hong Kong will not be immune. Judging from the current flow of capital, Asia The time of the financial crisis is not far away, just within these two years."

Others were shocked. There will be a financial crisis within two years. This is big news. However, even economists can't judge this kind of thing. Can the chairman in front of him really judge it accurately?

Xu Wenbiao sighed and said, "In two years, I don't know how much is left in those manufacturing industries."

He hesitated for a moment, and plucked up the courage to continue speaking, "Chairman, at the current price, we are still profitable to buy those manufacturing industries."

"If there is a financial crisis within two years, we should buy those manufacturing industries. At that time, the real estate bubble has burst, and owning some manufacturing industries will make our situation better."

If possible, he hopes to help those entrepreneurs in the manufacturing industry, who employ a large number of workers and also provide Hong Kong people with familiar commodities.

But in the process of skyrocketing real estate, these hard-working people did not get the rewards they deserved. With the skyrocketing housing prices, they became poorer and harder to maintain.

Finally, the entrepreneurs have planned to close the factories and leave Hong Kong completely. And those workers who stay, they will lose their jobs, will be dismissed, and they will have nowhere to go.

George looked at Xu Wenbiao and said in a gentle tone, "Mr. Xu, you are a very thoughtful and ideal person. I like to work with people like you, but sometimes, when doing business, you can’t just Relying on ideals. The decline of Hong Kong's manufacturing industry and the gradual hollowing out is the general trend, and it cannot be changed by two people alone." Brilliant Night

He said in an encouraging tone, "Compared to real estate investment, although it is easy to make money, I actually prefer manufacturing. Manufacturing is the foundation of other industries and the foundation of wealth creation."

"But I will not invest in manufacturing in a place that is not suitable for manufacturing. If you are really interested in manufacturing, whether it is a branch in Europe or America, you will be welcome."

George hesitated and said slowly, "Or, if you don’t want to go that far, I can consider asking you to set up related companies in Guangzhou or Shenzhen. After all, compared to cheap manpower on the other side, For the land that was given away for nothing, Hong Kong has no possibility of turning over in the manufacturing industry ."

George still likes Xu Wenbiao's ideals very much. Once people are rich, they will inevitably have many ideas. For a small amount of money, if it can promote the rise of a talent, he is still very happy to see it.

Seeing Xu Wenbiao’s hesitation, George continued, “You can also persuade those businessmen who plan to sell the factory, instead of selling the factory at a low price, watch their efforts being dismantled and sold by others.”

"It's better to relocate the factory as a whole. The other side is attracting investment at this time. If they are willing to go, they will get a lot of preferential treatment. Maybe they can catch up with a good time and do something big."

Xu Wenbiao said hesitantly, "Is the chairman very optimistic about the economic development on the other side?"

He already believed in the things analyzed by the chairman. After listening to the chairman, he was willing to provide financial support. He also has some thoughts and ideas. He believes that the hard work of Hong Kong people is not lost to those of other places.

As long as there is a suitable place, Hong Kong's manufacturing industry can also develop.

"Of course." George said in an unquestionable tone. "There has never been an East Asian country that has not achieved tremendous economic development after deciding to open up."

"Think about Japan, think about South Korea, the other side chooses to follow this path, even if the worst development becomes a developed country. With the size of the other side, it is enough to create a shocking wealth behemoth.

(To be continued.)