Although Bao Yugang said this, he still had some things he didn't say. He suspected that Kobayashi Tenno's investment in the mainland's electrical appliance industry might be a smokescreen or an attempt to curry favor with the mainland.
Based on Kobayashi Tenno's past plans and strategies, he couldn't possibly be so unwise as to go to the mainland to do electronics business. No matter how you look at it, they can't compete with Japan.
However, both the news reports and the information he obtained through his own investigations confirmed that Kobayashi Tenno had invested heavily in the electronics industry in mainland China.
Meanwhile, in Li Ka-shing's office, he was discussing the news with his assistant, Zhou Qianhe.
Li Ka-shing held a newspaper in his hand, his expression calm, revealing little emotion.
"Chiwa, what do you think about Kobayashi Tenno's situation?"
Zhou Qianhe stood aside and respectfully replied, "Mr. Li, in my opinion, Mr. Kobayashi's move is too rash. No one can shake the global position of Japanese electronics in the short term. Mainland electronics manufacturers are far behind in terms of both technology and brand. Investing in them would undoubtedly be a losing proposition."
Li Ka-shing nodded slowly: "What you said makes sense. But Kobayashi Tenno might have his reasons for daring to do this. However, whatever his reasons, going against market rules will ultimately lead to punishment."
"Mr. Li, do you think the mainland electronics market has potential?" Zhou Qianhe asked curiously.
"There is definitely potential. The mainland has a large population, and with economic development, people's demand for electrical appliances will continue to grow. But potential is potential, and at this stage, mainland electrical appliances cannot compete with Japanese electrical appliances. To gain a foothold in this market, one must either have a technological advantage or a price advantage, and mainland electrical appliances have neither."
Li Ka-shing analyzed, thinking to himself, that Kobayashi Tenmoku may have seen the potential of the mainland market, but he was too eager for quick success and ignored the actual situation at this stage.
"Will the fact that Hongkong Land Group is investing heavily in the electronics sector affect its core real estate business?" Zhou Qianhe asked.
“It will definitely happen. Real estate projects require a lot of working capital. If the capital is diverted, the expansion of the real estate business will be restricted. Once the electrical appliance business suffers losses and the funds cannot be recovered, the real estate business will also be affected, and there may even be a situation where the capital chain breaks down,” Li Ka-shing said. “Hongkong Land is a long-established company in Hong Kong Island, it’s a pity.”
"Mr. Li, what do you think will happen to Hongkong Land's stock price today?" Zhou Qianhe asked again.
"Panic selling is inevitable, and a sharp drop in stock prices is certain. As for how much it will fall, that depends on the level of panic in the market," Li Ka-shing said calmly. "Our companies should not follow the trend and participate in the panic; they should simply observe the situation."
“Understood, Mr. Li,” Zhou Qianhe nodded in response.
In Guo Desheng's office, he was discussing the news with his son, Guo Bingxiang.
Guo Desheng threw the newspaper on the table, his tone tinged with dissatisfaction: "That young man, Lin Tianwang, is really ignorant of his own limitations! He abandons his perfectly good real estate business and runs off to get into electrical appliances, and mainland electrical appliances at that! It's utterly absurd!"
Sitting to the side, Guo Bingxiang chimed in, "Daddy, I also think he was too impulsive. Japanese electronics are so powerful, and nobody in mainland China buys them. He's definitely going to lose a lot of money investing in them."
"The foundation of Hongkong Land Group is real estate, yet he's diverting real estate funds to venture into unfamiliar territory—this is self-destruction!" Kwok Tak-seng said angrily. "The Hong Kong Island real estate market has a bright future, and instead of seizing the opportunity, he's taking such unnecessary risks. It's truly foolish!"
“Daddy, do you think Hongkong Land will collapse because of this?” Walter Kwok asked.
"Whether it will collapse or not is hard to say, but it will definitely be severely damaged," Guo Desheng said. "The newspapers have all said that there are mountains of unsold electrical appliances in mainland China. If the investment in Hongkong Land cannot be recovered, cash flow will be a problem. At that time, not only will the electrical appliance business suffer losses, but the real estate projects will also be affected."
“Those who bought Hongkong Land shares are probably in for a bad time today,” said Walter Kwok.
"Yes! Yesterday, some people were saying that Hongkong Land's stock would rise to 200 yuan. Now that this news has come out, it will definitely plummet when it opens today. Those who followed the trend and bought in can only blame their own greed if they lose money."
Guo Desheng said to himself, "Luckily, neither I nor my son bought any shares in Hongkong Land, otherwise we would have suffered heavy losses today."
"Daddy, should we take this opportunity to buy Hongkong Land's stock at rock-bottom prices?" Walter Kwok asked tentatively.
Guo Desheng shook his head decisively: "Not good! The situation is still unclear. Who knows how big Hongkong Land's losses will be? If the cash flow breaks down and Hongkong Land really goes bankrupt, we will be trapped if we buy at the bottom. Hong Kong business community, be careful, don't be greedy for small gains and suffer big losses."
“Understood, Daddy,” Guo Bingxiang nodded in response.
It has to be said that Lam Fook-wong's influence in Hong Kong has made these established Chinese tycoons take his every move seriously.
Before the news broke, these established Chinese businessmen, like Newbijian, had discovered from various clues that Kobayashi Tenno's Jardine Matheson was indeed investing heavily in electrical appliance manufacturers in mainland China.
This only made them more puzzled.
This time, Kobayashi Tenno really lost his mind, blinded by greed and overconfident.
Or does Kobayashi Tenno have a backup plan? None of these tycoons are fools; they won't completely believe the exaggerated reports in the newspapers.
...
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