Chapter 388 Harvest and Plunder
The Hong Kong Stock Exchange established the Hong Kong Brokers Association as early as 1891, and has a history of more than 80 years.

From having only one Hong Kong Stock Exchange, to the Far East Stock Exchange founded by Li Zhaofu in 69, to the Kowloon Stock Exchange and the Gold and Silver Stock Exchange opened in the past two years, the number of listed companies has increased tenfold from more than 60 in the 30s to more than 300.

The increase may seem small, but from 70 to 72, within just three years, more than 200 new listed companies were added.

As for why so many companies are allowed to go public?
That is of course to reap the wealth of Hong Kong.

The 60s was a period of great economic development in Hong Kong, but transshipment freight and light industry coexisted, especially light industry, which had surpassed freight to become the largest pillar industry.

However, Hong Kong's industry only pursues one-sided labor-intensiveness, without any technological or industrial upgrading, and is completely a mess.

Just to earn that last penny from low-end labor.

No one can make this money except the hardworking Chinese. If the British want to collect it, they can only do so through taxes and export quotas.

Hong Kong has a set annual textile export quota. You don't even need to open a factory, as long as you use the quota, you can exchange it for money.

Luo Dingbang, the owner of Bossini Service in Hong Kong, was thought by outsiders to have made his fortune in the garment industry, but in fact he relied on the export quota of Hong Kong's textile products.

He and the British foreigners from the Hong Kong Trade Bureau controlled part of the export quota. As long as the export used his quota, he would charge 2% of the quota fee.

Another person who started out in the same way is Lin Baixin
But by the 70s, Hong Kong's financial resources had accumulated to a considerable level. England, thousands of miles away, was no longer satisfied with the small amount of taxes collected each year, not to mention that a portion of these taxes had to be used in Hong Kong.

Otherwise, Hong Kong, the pearl of the Far East, will soon be unable to sustain itself.
The public is resentful and it is not just empty talk.

So, they changed their tactics and used finance.

In 65, Chinese banks were hit by a massive run and went bankrupt. It cannot be denied that the British were behind this.

Of course, we can only blame the fact that many Chinese banks themselves are not operating in a standardized manner. Many of them transfer money from one hand to the other, such as Hang Seng and Far Eastern, which has resulted in many loans not being recovered.
If Wang Deming had not intervened, Chinese banks such as Hang Seng Bank and Far Eastern Bank would have been controlled by foreign banks, just like in the past, when HSBC spent only 5100 million Hong Kong dollars to acquire Hang Seng Bank with 7 million deposits, and Citibank acquired Far Eastern Bank.
This was also the reason why the Far East Club was approved in 69, and why MacLehose approved the Gold and Silver Club and the Kowloon Club in 71 and 72.

Through the stock market, all the money in Hong Kong can be absorbed into the stock market, and then it will be more convenient to collect it.

In the eyes of the big guys, every bull or bear market in the stock market is a good time to reap the profits. The only difference is that the investors themselves don’t know it.

"Ah Cheng, do you want to exchange the milk company stocks you have?"

The Xiangjiang Club is located in a 7-storey white building on Queen's Road in Central. At this moment, whether outside or inside the door, it is like a vegetable market with a lot of people.

The brokerage representatives wearing various vests screamed desperately: "The price of the property is 112 yuan. Is there anyone who wants to exchange it for shares?"

"Dairy Company 191!"

"Hutchison shares are 56 yuan!"

Those wearing vests are not real brokers. Hong Kong's securities model is a continuation of the Western model. Brokers have specific numbers and seats, and can be passed down from generation to generation.

Stock transactions in the secondary market must be bought and sold through a broker, so a brokerage seat is worth millions in this era.

The vests are all workers, and their dream is to occupy a brokerage position and be truly called: broker.

The man called Ah Cheng was wearing a white shirt and black trousers, had long hair and a pair of black-framed glasses. In his hand were a few colorful stock certificates with the words "Milk Company" written in large letters.

It was the stock certificate of the Dairy Farm Company. "I haven't decided yet."

He was almost squeezing water out of those milk company vouchers. He nervously watched the vests in the field shouting non-stop, and then promptly writing the latest prices on the blackboard in the middle.

"Hey, Ah Cheng, are you stupid?" His friends, who were dressed similarly to him, looked at the milk company stocks in his hand with envy.

"The Hong Kong Land Company is the number one real estate company in Hong Kong!"

"Look at the tallest building in Hong Kong that is being built outside? This building alone is worth more than the Dairy Farm! Once it is completed and rented out next year, the annual rent will be several hundred million. That's making money without doing anything."

"What does a dairy company have? Just a few cows and the land where they are raised!"

"But if you don't build a building on the land, it's worthless!"

"Wait until the land purchases the dairy company and builds a building on the land. What do you think?"

"Gulp!" Ah Cheng swallowed hard and tightened his grip on the stock in his hand. "Ali, how did you know?"

"I'm telling you, don't tell anyone else." The man named Ali looked around and whispered in Ah Cheng's ear, "I have a relative who works at Landmark."

"You know Luo Decheng, right? Sir Luo Wenjin's youngest son?"

"Of course I know that all three of them are members of the Legislative Council. But what does it have to do with Hong Kong Land?"

"This is a big deal! Barrister Lo Tak Shing is a director of Hutchison Whampoa and his eldest son is the Chinese tycoon of Hutchison Whampoa. How could the news he heard be wrong?" Ali became anxious and immediately refuted.

"So what's the news?"

"Hong Kong Land has already negotiated with HSBC's boss, Mr. Sanders. Once the Dairy Farm is acquired, the future rent of the Connaught Building for five years will be used as collateral to obtain a loan of HK$5 billion. The company will build apartments in Pokfulam and prepare to build another building in Causeway Bay. Just imagine how much Hong Kong Land's stock will rise after this news comes out."

"real!"

"How could I lie to you?" Ali slapped his chest, "We have been brothers for so many years!"

Ah Cheng's forehead was covered with sweat. He gritted his teeth and said, "Okay, I will exchange the shares of the milk company for the shares of the land company right now!"

Coincidentally, at this time in many places, there were people who kept talking about the future prospects of the Hong Kong Land Group and persuading people who had Dairy Company stocks to exchange them for Hong Kong Land shares.

Especially when the milk company has not responded at all.

A few days later, the Landmark Company published another news in the newspaper: The Landmark Company has revalued its shares, and according to the latest stock valuation, the Landmark Company has increased its capital by 18 billion. This capital will be used as the year-end stock dividend for 72 years.

It is expected that the dividend per share will be 72 yuan at the end of 1.2, 73 yuan per share in 1.5, and 74 yuan per share in 2, with a higher dividend each year, and an average annual increase of 25%.

Hong Kong's stock market is boiling!

Many retail investors who held Dairy Farm shares held up their stocks and shouted at the exchange to exchange their shares.
As to how much is true and how much is false, it is unclear.
Soon, Swire Properties published another announcement in the newspaper: it had exchanged 10% of the shares of the Dairy Company.

On November 11, before the close of Friday's market, Zhou Xinian of Dairy Farm could no longer sit still.
(End of this chapter)