This celebration banquet is regarded as Lin Hexia's official appearance in Hong Kong, which represents the birth of another powerful figure in Hong Kong.
Although he had served as the president of ATV before, due to his low appearance rate and limited direct contact with many businessmen, few people knew that there was such a number one figure in Hong Kong.
Later, he served as an umbrella holding company and became completely invisible.
Because this position does not require contact with other partners at all, the specific work is handled by each subsidiary itself. The holding company only needs to review the subsidiary's plans, finances and personnel.
It's different now. Although the umbrella holding company still does not participate in specific work operations, it has a lot of power.
It has complete control over its subsidiaries. Although this ability is not used normally, it is very useful at critical moments.
You must know that the Hong Kong Housing Company, a subsidiary of Umbrella Holdings, invested more than 1.2 trillion Hong Kong dollars in the land auctioned in Hong Kong this time.
In other words, the total assets of the Hong Kong Housing Company are now at least this much. Coupled with some of the real estate assets acquired previously, it has become the first consortium in Hong Kong.
During this celebration banquet, people from several stock exchanges in Hong Kong encouraged Lin Hexia to list the Hong Kong housing company and promised that after the listing, the company's market value would reach at least 3 trillion Hong Kong dollars. However, Lin Hexia refused.
The purpose of listing is mainly to raise funds, especially for companies with uncertain futures, so that they can share operating risks and obtain financing channels.
But for companies like Hong Kong Housing Corporation, there is basically no operating risk because the land is real.
If the funds for the previously auctioned land were borrowed, it will indeed bear the pressure of repayment, and more financing channels will be needed, and going public is a good choice.
However, Hong Kong housing companies have all their own funds, so there is no subsequent repayment pressure, and there is no risk of financial default.
At the same time, the assets are real estate and land. It is difficult for these fixed assets to depreciate. In the future, with the development of Hong Kong's economy, the value will only become higher and higher.
In addition to encouraging Lin Hexia to go public, the most important thing is to hope to obtain business cooperation with Hong Kong housing companies.
Among them are real estate companies and construction companies. Most of these businessmen attending the celebration banquet came for this purpose. They are all businessmen and they are doing things that are unprofitable.
On the second day of the banquet, Lin Hexia came to the Hong Kong Housing Company for a meeting. The topic this time was about the subsequent development of the Hong Kong Housing Company.
In the past, Hong Kong Housing Corporation only purchased existing properties, then rented them out and collected rent. The company had a small number of employees. Currently, it only has 1,000 employees, and most of them are real estate agents.
Hong Kong housing companies now hold a large amount of land in their hands, which needs to be developed reasonably, otherwise it will be wasted, which requires a lot of additional manpower.
Previously, the Hong Kong Housing Company only followed Lin Hexia's instructions to acquire land frantically, but there was no specific plan for the development of these lands. These also need to be explained at this meeting.
Lin Hexia said to everyone present: "Now the remaining undeveloped land in Hong Kong is basically in our hands, covering an area of more than 70 square kilometers.
It is impossible to leave such a large amount of land unattended, so we must begin to rationally develop these lands in the future.
According to the plan of the headquarters, the Hong Kong Housing Company will gradually develop the land according to the prosperity of the area. In other words, the land in Hong Kong Island and Kowloon will be developed first, so that the profits will be more substantial in the later period. I think everyone should have no objection in this regard. .
However, the properties and buildings developed by our Hong Kong Housing Corporation will no longer be sold, but will be rented. I think everyone here should understand what I mean.
Real estate sales only make temporary profits, but long-term profits can be obtained through real estate leasing and property management.
Although it is difficult to recover capital in the beginning with this business method, the long-term benefits obtained in the future will definitely exceed the one-time benefits.
Raising funds through the sale of real estate is something only those real estate developers with limited funds do and receive bank loans for development.
If they are not in a hurry to sell the property, it means that their capital chain will not be able to maintain the normal operation of their company.
But the Hong Kong Housing Company is different. Through this land auction, everyone has also seen the strength of the parent company, so the Hong Kong Housing Company's business model is mainly leasing.
Of course, the possibility of selling it is not ruled out, but the price will definitely be much higher than it is now.
You may guess that the funds of Hong Kong housing companies come from the mainland. Similar reports have been reported frequently in the media. Here I can say with certainty that these funds do not come from the mainland.
I don’t think anyone who is rational would think that the mainland government would provide so much money for Hong Kong.
The mainland is very big, but Hong Kong is very small. Although the mainland attaches great importance to Hong Kong, Hong Kong is not yet ready to let the mainland do its best.
Hong Kong does not have this qualification at any time. I hope everyone here will have a clear understanding and not believe the rumors outside.
Although this fund is not from the Mainland, it is related to the Mainland. The first purpose of this move is to maintain the stability of Hong Kong, the second is to solve the difficulties created by the British Hong Kong government, and the third is to completely solve the housing problems of Hong Kong citizens.
The Hong Kong Housing Corporation does not need to pay attention to the first two reasons, but the third point is a goal that the Hong Kong Housing Corporation needs to work hard to achieve.
I think we are all elites in the real estate industry and should be relatively clear about Singapore's housing policy model. Yes, the main role of the Hong Kong Housing Corporation in the future is to provide public housing similar to that of the Singapore government.
Let the middle- and lower-class people in Hong Kong afford spacious houses instead of being squeezed into pigeonholes like this.
Of course, we are not a government agency after all, and it is impossible to operate entirely in accordance with government responsibilities. Government departments do not need to consider operating conditions, but we are a private company, and we must take into account benefits.
Therefore, we need to customize a rental principle with appropriate prices, so that citizens can have a more comfortable living environment without feeling obvious rental pressure. This requires us to do a lot of research work.
The prosperity of various regions in Hong Kong is different, and the income levels of citizens are different. These are all factors that affect the level of rental prices.
Based on the per capita living area of 40 square meters, the rental income should not exceed 20% of the average income. "
In fact, the rent is calculated based on the upper limit of 20% of the family income, which is actually relatively high.
Calculated in 2019, the median wage in Hong Kong is HK$18,200 per month, and the labor force is 3.88 million people. Calculated based on 20% of the rent, the annual income of Hong Kong housing companies will be approximately HK$169.4 billion.
Although this calculation method is not very accurate, after all, the existing living area in Hong Kong is not small now, and there may not be so many tenants by then, but it can also give a rough estimate of the income of Hong Kong housing companies by then.
In other words, a dual-income family needs to pay more than 7,000 Hong Kong dollars in rent per month to obtain a house with a living area of more than 100 square meters.
Although it is not cheap, it has been greatly improved compared to the living environment in Hong Kong in later generations.
Of course, there will also be many low-income people, and the rent fees charged by the Hong Kong Housing Corporation will be much less on them. This is a flexible rent plan, not a one-size-fits-all approach.
“Unforeseen circumstances bring disaster and fortune to everyone, and it is impossible for everyone to be unemployed. In order to deal with the problem of employees being unable to pay rent after losing their jobs, the Hong Kong Housing Corporation should join hands with HSBC Bank to launch an unemployment rent insurance plan.
Employees only need to spend a small amount of money to obtain relevant protection, and they don't have to worry about being displaced once they lose their jobs.
At the same time, we should also consider the situation of retired elderly people. Their income after retirement is generally much lower than their working income.
If rent is paid in the normal way, it is estimated that many people will not be able to afford it, so the Hong Kong Housing Corporation can join hands with HSBC to launch a retirement rent insurance plan.
The specific settings of these insurance plans require professional financial talents. I am just giving an example. You can follow this idea.
I hope that an insurance plan acceptable to both parties will be launched by then, which will not increase the financial burden on the people too much, but can effectively solve their worries. " Lin Hexia continued.
Now that HSBC is considered a brother company, it is most appropriate for HSBC to launch related insurance services. If there are any problems between them, they can be solved through discussion.
In a mature market environment like Hong Kong, there will generally not be a large-scale unemployment wave. Calculated based on the average annual unemployment rate of 5%, and based on the above data, each employee only needs to pay 191 Hong Kong dollars for monthly insurance premiums. Less than 200 Hong Kong dollars.
Of course, the above insurance premiums are calculated based on break-even. Even if calculated based on the insurance company's profit of 10%, you only need to pay a monthly insurance premium of 210 Hong Kong dollars, which most working-class people can afford.
Of course, the retirement rent insurance plan is very different from this. The calculation is much more complicated, involving factors such as life expectancy, income level, insurance years, and even government fiscal policies, which requires overall planning. I will not go into details here.
“According to the plan, for every 500,000 people or so, a large business center needs to be built to meet the office and entertainment needs of residents in the area.
At the same time, every 100,000 people need to build a school that meets the needs of kindergarten, primary school, and middle school. This is a necessary facility and a necessary condition for citizens to be willing to rent our houses.
School construction needs to meet a certain margin and try to ensure that all school-age children and teenagers can attend school nearby.
The school can be run according to a non-profit model. The specific operation method needs to be communicated with the government. We do not need to make money in it, but we do not want to operate at a loss. We will discuss the specific operating model at that time.
Each community needs to reserve necessary commercial facilities, such as convenience stores, breakfast shops, barber shops, etc. These not only facilitate residents' lives, but also bring considerable rental income to the company.
At the same time, one large general hospital needs to be built for every 500,000 people to meet the medical needs of nearby residents, and one health clinic needs to be built for every 50,000 people to meet the treatment needs of nearby residents for minor ailments.
All these are just examples to illustrate that we need to create a new city that is livable for work, life, leisure and entertainment.
I believe that you are all capable of these tasks, so you need to start taking action from now on and make all preparations according to the plan. Lin Hexia said.
After listening to Lin Hexia's plan, the people present were actually quite excited. Now that they have a large amount of land resources in their hands, a company does not have much available funds, and subsequent development will definitely be very slow.
It turns out that this is not the case at all. The company actually still uses the rental operation method, and needs to invest a lot of money in the future. This is enough to show that the company or the parent company is wealthy. (End of chapter)