Chapter 168 Negative Assets

Yang Xing’s idea is to develop a group of high-end residences to motivate them to improve the treatment of education and technology personnel. In a popular saying, “Plant good sycamore trees and attract phoenixes.” If you want to introduce high-tech technology and educational talents, how can you do without good living conditions? With good housing, you also need a beautiful living environment? With a beautiful living environment, you also need convenient living facilities? Come to the Rose Garden, come to the World Garden, here is everything you dream of, and this is your paradise!

"Hey!" Cheng Canghai interrupted Yang Xing's advertising slogan with laughter and cry, feeling that he was too rash in his tacit agreement with this kid and asked him to find another way to contact Beijing to continue his project. Yang Xing quickly interrupted his fantasy and sat upright. He should not be too arrogant in his life. He is probably the first one who dares to be distracted in front of the Prime Minister.

Cheng Canghai asked: "Let's talk about the main purpose of letting you come this time. Do you think the current situation in Hong Kong is very bad? Do you need the central government to come forward to express your opinion?" He said this because the news of Hong Kong's prospects in this financial storm recently reported by the Academy of Social Sciences, the State Council investigation team and other units is not optimistic. In particular, Yang Xing provided many economic organizations, including him, have a unified understanding of the economic pessimistic forecasts of the entire East Asia in the next year. The serious situation must strive to block the impact of the financial storm from the country.

As a domestic financial breakwater and external window, Hong Kong suffered such a severe blow as soon as it returned to the motherland, which is something the central government does not want to see. Cheng Canghai announced his support for the Hong Kong economy on behalf of the central government at an appropriate time, so that they can support the current new Hong Kong government and give them confidence in the war of exchange rate defense. Second, it is to introduce measures to protect Hong Kong, which can not only bring the economic ties between Hong Kong and the mainland closer, but also gain the sense of identity of Hong Kong citizens with the country.

In fact, because of early preparation, the situation in Hong Kong is much better than Yang Xing's previous life. If he doesn't know the future skills, he is not sure about the duration and degree of damage of the financial crisis. Now everyone knows the value of the information provided by Yang Xing last year. It is recognized that this young man has unique insights into the international economy. Since he is clear-headed and is in Hong Kong, he will surely be able to give Cheng Canghai some first-hand information.

Yang Xing was flattered by this. After careful consideration, he shook his head and rejected Cheng Canghai's plan to take action. "The Hong Kong government has taken action in advance to clean up several major banks. Recently, it is unlikely that it will be more honest to join forces with funds outside to impact the linked exchange rate again. The stock market has been actively squeezed out of the bubble. Now it has fallen to around 10,000 points, and it is unlikely that it will fall another 6,000 points. Hong Kong's economy is running smoothly, so we don't have to worry about it." Cheng Canghai nodded in agreement and obviously agreed with Yang Xing's reason.

"But Hong Kong is not fine. I found that its doors are the real estate market. Before the return, the Hong Kong real estate market rose several times. Hong Kong real estate speculation was prevalent. A house was sold seven or eight times, and the house price rose by about 10%. Some Hong Kong people divided their houses into several beds and divided them into three upper, middle and lower shops to collect rent. This time, the financial crisis hit, and foreign capital rushing into the real estate market fled, and Hong Kong is a free port again, making it easy to enter and exit funds. The collapse of the property market has greatly affected many ordinary Hong Kong families."

Cheng Canghai frowned. Obviously, this was the first time someone raised the unnoticed side of Hong Kong's impact on this time - real estate. Yang Xing continued to analyze, "Start Dog Research Institute once gave me a report. In June 1997, the unit price of mid-to-high-end properties in Hong Kong could reach 7,000 to 8,000 Hong Kong dollars per square meter, equivalent to 80,000 yuan per square meter, and the price of luxury houses was 200,000 Hong Kong dollars per square meter. However, the Asian financial crisis hit, and the linkage between the real estate market and the stock market led to a sharp drop in housing prices. In addition, the Hong Kong government's inventory of speculative funds and the 85,000 plan launched, adding fuel to the fire made the housing prices fall by 30% in less than three months! This is a catastrophe for millions of Hong Kong families."

"Hong Kong now has a new term - negative assets. What does it mean? It means that middle-class people spend half their life trying to buy a house worth tens of millions, hoping to rise to 20 million in the future, so that the family can have no worries about food and clothing. The down payment is half 5 million, and they borrow 5 million from the bank. However, when the financial crisis blows, the house is only worth 7 million now, and they have to pay the difference of 3 million in the bank. It's nothing to fill the difference, so they grit their teeth and tighten their belts to survive. Chinese people like to have their own houses. But another question is, how can people with negative assets have the mind to consume? They reduce consumption, which reduces income in other industries and the economy goes into a recession. This will push up the unemployment rate, cause social turmoil, and form a vicious cycle."

Yang Xing talked in a casual manner, and secretly observed Cheng Canghai's face. Seeing him frowning and falling into deep thought, he knew that his words had effect. From this and that, what he was considering now is not just a problem in Hong Kong, but a reflection of the upcoming domestic commercial housing reform. Obviously, these problems arise in Hong Kong, which claims to be free capitalist. Can the domestic self-proclaimed socialist commercial housing reform escape this disaster?

Yang Xing then continued to analyze many deep-seated problems exposed in Hong Kong during the financial crisis, which are not limited to the real estate market, but also involve industry, as well as signing closer economic arrangements (CEPAs) with the mainland in the future. It delayed Cheng Canghai's visit time for a long time, which led his secretary to frequently look into the office and remind them of the time. When he was dry and wanted to drink water, Cheng Canghai interrupted him and said with a smile: "You little guy said so much, I found that you are uneasy. You want to wait until Hong Kong suffered a big loss and ask for central support, and then rescue them. It would be easier to pass the closer economic arrangements (CEPAs) between Hong Kong and the mainland, right!"

Yang Xing touched his nose and smiled awkwardly: "After all, we keep saying it

'Hong Kong people govern Hong Kong', the central government is not going to interfere too much in their affairs, but now it is impossible for them to interfere. How could they be willing to ask for help if they don't let them suffer? "Cheng Canghai pointed at him and smiled: "You are a Hong Kong resident, why don't you take the initiative to tell the Hong Kong government what you said just now?"

Yang Xing spread his hands: "You think I haven't tried it! When they launched 85,000 public housing units, I reminded me that it would impact the real estate market. I said that this kind of measures related to people's livelihood must be carefully selected. It must not only calm down housing prices, but also not cause a plummeting house price. Otherwise, it will be a good intention to do something bad. Now that the financial crisis is coming, housing prices are not guaranteed, isn't it a big deal to promote affordable housing? People are now trapped in stocks in the stock market, housing market prices fall, houses earned by hard work have lost all their wealth, can't afford to pay for houses, bank loans cannot be collected, bank bankruptcy, people are all scolding the government! Unfortunately, they think it's enough to listen to my alarmist words, so I can only let them learn from their mistakes."

Of course, Cheng Canghai would not only listen to Yang Xing's one-sided words, but the word "people's livelihood" mentioned by Yang Xing still attracted his attention. The reason why he supported Yang Xing to enclose land and build houses in Jiudu, Shanghai and other places was not because he had any special relationship with Yang Xing, but because he noticed that Yang Xing always took into account the interests of home buyers, demolition households, governments and other aspects in his plan. As the central government has reached a consensus, it is necessary to promote housing system reform. Yang Xing's behavior is undoubtedly a good reference, and experience and lessons are worth discussing. Domestic scholars generally believe that housing prices rise too high or too fast are not good, but now the harm of short-term sharp drop in housing prices is not small. This young man's thinking has surpassed the scope of ordinary businessmen, and he even thought about what many government officials did not expect.

He saw the secretary reminding himself again that there were still visitors and said to Yang Xing: "Don't rush back to Hong Kong in the next few days. The central government is discussing housing system reform recently. There will be major measures this year. You can also attend and explain carefully the views you talked to me today. The welfare housing distribution system under the planned economic system cannot be maintained for a long time, but according to your statement, the government will bear most of the public housing methods like Singapore and Hong Kong. There are also difficulties in countries at present. How to take a road to housing system reform that suits China's national conditions? It seems that our task is very arduous!"

Yang Xing had a bitter face and could only accept this task that felt supreme glory for others. The meaning of Cheng Canghai's dialect has regarded him as a private think tank for equal discussion. It's just that the topic of real estate is a hot potato in more than ten years later, Yang Xing was really not sure to take on this heavy burden. He could only hope to take one step at a time and find a way slowly!

When leaving Zhongnanhai, Cheng Canghai's secretary took him to the doorman department, recorded his various ID documents and his appearance characteristics, stamped his work documents, and sent him a Zhongnanhai entry and exit certificate. Cheng Canghai's secretary told him seriously that his documents had been recorded in writing and entered into the microcomputer. In the future, he could contact the Zhongnanhai duty personnel without notice. But he also reminded him to use this power with caution, otherwise he would be held political and criminally responsible. Yang Xing was overjoyed and thought that this was the big inner waist card used to meet the emperor in feudal society in the past? It seems that Cheng Canghai is paying more and more attention to himself!

In the car, Zheng Yunlong, Wang Yunqi, Wang Yiren and others came up to take a closer look at the mysterious Zhongnanhai entry and exit permit. Zheng Yunlong said in amazement: "Brother, you have a way. After a trip to Beijing, you can coax the second boss to send you an entry and exit permit and agree to continue to build real estate in Beijing. Your idea of ​​developing high-end properties under the banner of university towns and high-tech parks is simply amazing. Now it's time for Lao Wang and I to do work in Beijing. It's just a pity that the land of the industrial park is built in Fangshan."

Yang Xing shook his head and said, "It's not that simple. This is the foot of the emperor. People are watching every move. The old mayor collapsed and the new mayor was transferred from outside. The so-called emperor and ministers were no longer useful in the past. There are also a large group of hungry wolves waiting for us to take action. But after all, we invested in it with real money. The so-called "no one to stay here, there will be no place to stay here. When dealing with officials, you must not be humble or arrogant. Remember that we are not begging for food, and there is no need to hang ourselves on a tree in the capital." Everyone has been immersed in the business world for many years and knows that the negotiation skills Yang Xing said are indeed accurate.

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