Chapter 577 Asian Financial Crisis

Chapter 577 The Asian Financial Crisis

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

In the memory of his previous life, the Asian financial crisis occurred in 1997, when the bubble completely burst. But before 97 again, the bubble was already accumulating and expanding, and the risk was accumulating at an accelerated rate.

In fact, right now, the rent-to-sales ratio of Hong Kong housing prices has far exceeded the level of normal countries. In order to control housing prices, do not skyrocket in the short term, so as not to cause more problems or even trigger a chain reaction. The Hong Kong government has also issued some regulations on housing price regulation some time ago.

But these weak and powerless 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, not really wanting housing prices to return to a level that the manufacturing industry can adapt to.

Whether it is a previous life or this one, the Hong Kong government has no guts to burst the bubble. As long as the Hong Kong government doesn't have the guts to burst the bubble and try to make a fortune in this bubble, there will be a steady flow of money.

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

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

At that time, all public opinions will collectively endorse the high housing prices, prove that housing prices will always rise in various ways, and force everyone to get on the bus quickly.

It wasn't until those people who realized it later bought these sky-high price bubbles that the bubble collapsed suddenly, leaving the last people to be trapped for a lifetime.

George continued, "In Beijing, the exchange rate of the RMB has been greatly depreciated in 1993, from 5.5 on the bright side to 8.3. In the past two years, thanks to the sharply depreciated 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 sector in Southeast Asia is being swallowed up by the capital."

He continued, "Southeast Asia has lost its manufacturing industry, but they have not thought about improving their manufacturing environment in the past two years. They have adopted more radical measures than Hong Kong. Countries in Southeast Asia have not only not experienced a recession in the manufacturing industry. Tax cuts." Phoenix was late

"On the contrary, in order to maintain high taxes, they borrowed a lot from international capital, and with the borrowed funds, they pushed up real estate and the stock market. They created false prosperity to maintain their taxes and luxury life."

He emphasized, "Once international capital becomes unprofitable, those fleeing capital will instantly destroy the financial order in Southeast Asia. At that time, Hong Kong will not be spared. Judging from the current flow of capital, Asia's The financial crisis is not far away, within two years.”

Everyone else was shocked. There will be a financial crisis in 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 accurately?

Xu Wenbiao said with a sigh, "In two years, I don't know how much of those manufacturing industries will be left."

He hesitated for a moment, then summoned the courage to continue, "Chairman, at the current price, it is still profitable for us to buy those manufacturing industries."

"If within two years,

If there is a financial crisis, we should buy those manufacturing industries. At that point, the real estate bubble burst, and having some manufacturing would make us better off. "

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

However, in the process of skyrocketing real estate, these hard-working people have not received their due remuneration, and they have become poorer and poorer under the skyrocketing housing prices, making it difficult to maintain.

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

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

He said in an encouraging tone, "Compared with 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 won't 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 very welcome."

George hesitated and said slowly, "Or, if you don't want to go that far, I can consider letting you set up a related company in Guangzhou or Shenzhen. After all, compared to the cheap manpower on the other side, The land given away for free, Hong Kong has no chance of turning over in manufacturing."

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

Seeing Xu Wenbiao's hesitation, George continued, "You can also persuade those businessmen who plan to sell the factory to sell the factory cheaply and watch their efforts be 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 of the other side?"

For the things analyzed by the chairman, he already believed it, and he heard the chairman say that 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 inferior 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 without doubt, "there has never been an East Asian country that has not achieved great economic development after deciding to open up."

"Think about Japan, think about South Korea, if the other side chooses to follow this path, even if the development is the worst, it will not become a developed country. With the size of the other side, it is enough to create a shocking beast of wealth."

(To be continued.)