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Chapter 500 - 500 488 Even the Wealthy Third Generation
Chapter 500 - 500 488 Even the Wealthy Third Generation
?Chapter 500: Chapter 488: Even the Wealthy Third Generation Faces Difficulties Chapter 500: Chapter 488: Even the Wealthy Third Generation Faces Difficulties Wansheng Real Estate acquired land worth over 8 billion in one go, and then its investment department continued to follow up on two old buildings and three plots of land.
According to the financial report of Wansheng Real Estate (a listed company, hence financial transparency), this obviously exceeded their cash flow.
Father Hu was puzzled and called Hu Zhifeng over to ask, “The funds that Wansheng Real Estate retracted before the stock market crash, a portion of which was used to repay bank debts, with just over ten billion in cash flow on their books, how did they come up with so much money to buy land?”
Hu Zhifeng didn’t know either and said, “I chatted about this with Nie Zhan while playing golf two weeks ago; he said they didn’t have enough funds on the books, otherwise they could have stockpiled more land when the opportunity arose.”
Yet Wansheng Real Estate’s recent major moves didn’t seem indicative of a cash squeeze. However, having known Nie Zhan for over a decade, it seemed unlikely that he would deceive him, and there was no need for that either.
Seeing that Hu Zhifeng was also in the dark, Father Hu said, “Next month there’s a land auction in Tsim Sha Tsui, invite him for dinner and feel him out to see if he’s also intending to bid.”
He too wanted to stockpile more land, but the recent stock market crash had caused the company’s stock price to fall a lot, and he was planning to buy back some of the shares. Moreover, since he had set his sights on the land in Tsim Sha Tsui a while ago, the company needed to retain some liquidity, so stockpiling land on the same scale as Nie Zhan was impossible. Besides, that would be too risky; if the real estate market fluctuated greatly, even the monthly interest payments would pose a large problem.
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