In mid-August, when the property in Mong Kok was launched, the price of the ground floor and the units with bad layouts was reduced by 20 Hong Kong dollars per square foot. Not only that, there was also a lucky draw for gifts, and those who bought the property could get a souvenir when they left.

The news was reported very quickly, and many people thought Nie Zhan was crazy. Some people also speculated whether Wansheng Real Estate had a problem with its capital chain, otherwise why would it reduce the sales when the real estate market is so hot now. When the reporter interviewed Nie Zhan, he said that the company's debt ratio was relatively high, and he wanted to recover funds as soon as possible to pay off part of the debt.

Because Wansheng Real Estate borrowed heavily to buy land, its debt ratio has now reached 68%, far exceeding the normal level. His statement can be recognized by the public.

Hu Zhifeng had long advised him not to have such a high debt ratio, and when he saw him repay his debts after collecting funds, he felt that his persuasion had worked. Tao Yong directly helped his girlfriend Shi Xinyu to buy two houses in Mong Kok and asked Nie Zhan for the internal price.

After Shi Xinyu bought the building, she immediately called Lu Jiaxin: "Jiaxin, do you know what I won? I won a gold necklace."

Wansheng Real Estate has prepared a variety of prizes, including electric fans, rice cookers, gold necklaces, and the grand prize is an air conditioner.

Lu Jiaxin smiled and said, "So lucky?"

Shi Xinyu said excitedly: "Yes, Tao Yong also said that I am lucky. Jiaxin, I will treat you to afternoon tea tomorrow."

In fact, the gold necklace was very thin and could be bought for a few hundred yuan, but it was a good omen. Tao Yong also felt that his fiancée had been doing well recently and now she had won a prize, so he praised her. For Shi Xinyu, who had always been denied, her boyfriend's praise was more gratifying than winning a prize.

Lu Jiaxin agreed with a smile.

Shi Xinyu was very puzzled and asked, "Jia Xin, aren't you bored staying at home every day?"

Lu Jiaxin smiled and said, "Not boring."

Why am I bored? My morning classes are packed, I have to do homework after a nap, and I have to make appointments occasionally in the evening. It is also afternoon tea arranged by Teacher Xinyu. If I were to play ball, I would have no time.

Shi Xinyu said, "Sister Meitong has to go to work tomorrow, so I won't call her. I'll treat her when she's on break!"

She still thinks that she is the best now. There is a store manager in the store. She can go over to take a look when she is free. She can also entertain customers when she is in the mood. If she doesn't want to move, she can stay at home or get together with two friends. Unlike Yu Meitong, she has to work from Monday to Friday and occasionally attend lectures on weekends. Although I know she is making progress, it looks so tiring! "Tell her about this."

"Yes."

Not long after she hung up on Shi Xinyu, she received another call from Su Heyuan, who was asking about real estate. The real estate market is so good now, everyone is raising prices, Wansheng Real Estate not only lowered prices but also held a lottery to attract buyers. Nie Zhan said that he wanted to recover funds to pay off debts, but he was skeptical.

Thinking that he had a new building to be launched next month, Lu Jiaxin said, "It's hard to explain over the phone. Come over after get off work and we can talk in person."

He said it was abnormal, but Su Heyuan didn't want to wait until after get off work: "I'll come over now."

"I have to go to class, so I don't have time now. Come over at noon!"

Su Heyuan then remembered that she had classes in the morning, and there was no time to chat in detail: "Okay, then I'll come over for lunch."

Thinking that he liked to eat sashimi, Lu Jiaxin smiled and said, "It just so happens that Feng Qinglei sent tuna and Australian lobster, you are in for a treat today."

After calculating the time, when Su Heyuan arrived at the Lu family mansion, Lu Jiaxin had just finished her class. Lu Jiaxin had no appetite at this time, so she took him to the study.

Lu Jiaxin drank half a glass of water and said slowly: "Just as the report said, the funds are recovered to pay off debts and reduce the debt ratio."

"What else?"

Lu Jiaxin smiled and said, "The debt ratio is 68%, which is too high. Not only will all the funds raised from the property be used to repay the debt, but next month we will have to issue shares again to raise funds, and the money will also be used to repay the debt."

Wansheng Real Estate raised funds through rights issue in the previous year and last year. Lu Jiaxin was the one who facilitated the rights issue next month. Of course, the funds raised were not used to repay debts. They were used to buy at the bottom after the stock market crash and to buy land after making the money.

Su Heyuan said doubtfully: "It is enough to keep the real estate debt ratio at 60%. The funds recovered from the two real estate projects should be about the same."

Lu Jiaxin didn't respond to his question, but asked, "How much money did you invest in the stock market?"

Su Heyuan said without thinking: "I bought 46 million worth of stocks, and I have made more than 24 million so far. My grandfather said that the stock market is a bit overheated now, and asked me to sell some of the stocks. I have already told the stockbroker to sell half, so that the principal can be recovered."

No wonder Mr. Su was able to escape unscathed from the stock market crash that year. His sobriety was much stronger than many others. In fact, the stock market was too hot, and many people were uneasy, but greed played a role and they always wanted to make more money.

Lu Jiaxin said: "Ah Zhan also feels that the stock market is overheated now, so he wants to quickly recover funds to pay off part of the debt. The company's debt ratio is too high, and if there is a big fluctuation in the stock market, the bank will come to collect the debt."

"Nie Zhan also thinks the stock market is overheated?"

Lu Jiaxin asked back: "Don't you think the stock market is overheated now?"

Su Heyuan was also unsure, so he followed the old man's advice and sold half of his stocks at the end of the month. Thinking that Lu Jiaxin's fortune had always been good, he asked, "You also bought a lot of stocks? Did you sell them all?"

Lu Jiaxin didn't hide it from him and said, "I will sell all my stocks next month, and I will also close all my futures positions when they expire next month. I've made a lot of money this time, so I can't be greedy, or I'll cry if I get stuck."

Su Heyuan said as soon as he heard it: "Then tell me when you clear your stock, and I will sell them all."

"Can."

Su Heyuan asked: "Jia Xin, do you think I should organize an event as well?"

As the second largest shareholder, Lu Jiaxin is also familiar with Yuansheng Real Estate's situation. Yuansheng Real Estate's debt ratio is 46%, which is within the normal range in the real estate industry. However, the stock market crash is coming, so it is better to sell the house as soon as possible to recover the funds. Otherwise, when the stock market crash comes, many people will suffer heavy losses and will not buy a house. If the house cannot be sold, the company will have to pay high interest to the bank, which increases costs.

Lu Jiaxin smiled and said, "Gifts don't actually cost much, but some people are used to being frugal, so if the house price and location are similar, they will definitely give priority to you."

Su Heyuan thought about it and decided to follow Lu Jiaxin's advice and prepare to hold a promotion next month. After the funds are recovered, they can be used to pay off debts or hoard land.

(End of this chapter)