We are all reborn, who wants to be the richest man?

Many people ask why Western Europe was able to develop so rapidly and have such a high national level after experiencing so many wars.

In fact, it all comes down to one reason, which is the primitive accumulation of capital.

Even they themselves have discussed this topic, called the sheep-eating-man movement.

During the First Industrial Revolution, Britain's textile technology emerged, and capitalists lacked a large supply of raw materials, namely wool.

Then what? Just enclose more land to raise more sheep, because once textiles are produced, there is no worry about selling them, and there is no worry about overcapacity.

A large number of farmers lost their land for various reasons, so they refused to work. In serious cases such as France, the king was even sent to the gallows.

These capitalists realized that this was not a good idea. It was ridiculous to make money but have no life to spend it.

As a result, the colonial era developed rapidly, markets and industries expanded outward, and the West accumulated a large amount of capital.

What is industrialization? It is the development of resources, the transformation of resources into industries, the use of industries to produce products, and finally the use of products to cover the market.

But for most developing countries, if they want to form industries, they need investment. In fact, the core is that they must have capital, whether it is private or official.

However, almost all countries do not have the conditions to form capital, especially small countries with limited land and small population.

But Western European countries developed because they achieved bloody capital accumulation.

Relying on these capitals, they developed industries and cultivated a large number of talents.

So even if the factories are destroyed, as long as the talent, technology and private capital are still there, they can still recover quickly, and the most advanced products they produce can be quickly sold to the world.

Then make a lot of profits, complete capital accumulation again, and invest again in research and development of better technology to produce better products.

All of this is inseparable from one core, that is, the capital accumulation rate.

With the influx of a large amount of money, Hong Kong's capital will inevitably become larger and the accumulation will inevitably be greater.

But now Robert's words have made Luo Nianzhong feel a sense of crisis, and it is also a huge problem that will affect the future of Hong Kong Island.

"Capitalist Roader". Luo Nianzhong's insightful words.

What is the reason for the low increase in capital accumulation? It is capital flight.

While a large amount of money poured into Hong Kong Island, a large amount of capital also flowed overseas, or did not return to Hong Kong Island.

Hong Kong Island is an export-oriented economy because the land and population are located here, which is a natural defect.

Therefore, Luo Nianzhong wants to promote the transformation of Hong Kong Island and transform it towards the upstream research and development direction.

As a business, you may not build a factory in Hong Kong Island, but you must keep all the money.

How to retain it? That is to invest in research and development.

If all companies set up their R&D centers on Hong Kong Island and their production factories in surrounding areas, a virtuous circle would be formed.

Half of the production profits will be invested, and the other half will flow back into research and development.

By then, Hong Kong Island will have a steady stream of funds and world-leading technological patents, and the cycle will continue.

"That's right, it's a massive capital outflow."

Robert obviously knew about this situation and investigated it.

"The biggest among them are the old families in Hong Kong Island, and the real estate companies are the worst."

In recent years, due to the suppression and promotion from the Far East, the growth of Hong Kong Island's housing market has been among the highest in the world, but it is relatively reasonable.

The most crucial issue is that Luo Nianzhong prevented the real estate market in Hong Kong from experiencing the same sharp drop as in previous lives. At most, it experienced a simple correction.

In fact, all real estate developers should thank Far East and Luo Nianzhong.

In the past, Hong Kong Island's stock and housing markets were very fragile. Whenever there was a problem with the stock markets in the United States or Europe, Hong Kong Island's stock and housing markets would plummet and were greatly affected by external factors.

But things are different in this life, because Hong Kong Island is now dominated by manufacturing, and it is a world-leading manufacturing industry.

Even in the event of an economic crisis and a global economic downturn, the Hong Kong stock market would only experience a reasonable decline and there would be no possibility of a sharp drop.

Because everyone knows that Hong Kong's manufacturing industry will recover sooner or later, and global consumers need Far Eastern products.

The housing market will experience smaller fluctuations because Hong Kong Island’s manufacturing industry will not and cannot go bankrupt, and these high-income middle-class people will not lose their jobs or sell their homes.

Therefore, there will never be a situation where a large number of properties in Hong Kong Island are vacant and no one is interested in buying them, and the property market will naturally remain stable.

What does this lead to? It makes it easier for big real estate developers to get bank loans, as banks do not believe that the real estate industry in Hong Kong Island will collapse.

Therefore, there is no need to act as a white glove, and you can develop well on your own.

House prices in Hong Kong Island are increasing every year, which can bring huge profits to real estate developers.

Bank loans have given them huge amounts of funds, but if they were to invest only in real estate in Hong Kong Island, there would not be such a huge demand.

What to do? One is to invest in other regions, and the other is to enter other industries.

But there is a problem now. Everyone knows that the people's livelihood industry and retail industry in Hong Kong Island are firmly controlled by the Luo family, and the technology industry requires large investments, which they don't understand.

For example, the second son-in-law of the ship charter king is an example of an outsider forcing his way into the business.

If we can’t figure out how to play the new industries, we can only return to the traditional industries. If Hong Kong can’t develop further, we can acquire companies from other countries.

So what did these old families do with their money? They went to Southeast Asia, Europe, North America, and all over the world to acquire and invest.

Whether it is the energy industry, retail industry or water and electricity.

The world is so large that it is beyond the capacity of just one or a few companies to handle it.

For example, Li Bancheng not only acquired Canada's Husky Oil in the early years, but also acquired several energy companies in Northern Europe and South America in recent years.

Another example is Uncle Li, who has invested in MEGA, a department store chain owned by the famous southern Italian company Lianzhong Group, and is its second largest shareholder.

There is also Shark Dan Tong. The Zheng family focused on Southeast Asia and not only acquired a local retail supermarket brand in Indonesia, but also acquired a very large rubber resin company in Thailand.

"So, the culprit is the Far East."

It is precisely because the Far East has become a stumbling block for these companies in Hong Kong Island that they continue to invest abroad and invest the money they earn overseas.

It’s not that this is a bad thing, but Luo Nianzhong still hopes that more funds can flow into the technology and Internet industries.

No one can guarantee that the Far East will always maintain its current dominant position. There is no problem now. Luo Nianzhong knows the future direction of industrial development, and the Far East aircraft carrier will not deviate from its course.

But what about twenty or thirty years from now? What should we do when our own prophet is gone?

Who can guarantee that Far East will not become the next Nokia? If Far East collapses, the economy of Hong Kong Island will face collapse.

Therefore, only with more capital involvement and competition can we avoid eating up all the resources, and pressure is the driving force.

The endless emergence of top technologies in Hong Kong Island and the continuous emergence of various innovative enterprises can ensure that Hong Kong Island's economy will always be full of vitality.

In Luo Nianzhong's mind, Hong Kong Island is following the Swedish path.

Sweden alone has so many world-class companies and so many cutting-edge technologies.

Hong Kong Island’s land is not as abundant as Sweden’s, but Sweden’s technology companies are only concentrated in two or three cities.

Moreover, Hong Kong has advantages that Sweden does not have. One is talent. Hong Kong has far more high-end talents than Sweden.

There is also the Far East, which gives Hong Kong Island a first-mover advantage.

Today's Sweden is definitely not as advanced as Hong Kong in terms of cutting-edge technology.

Although Robert didn't say it explicitly, he was guiding.

"I understand about this matter. Let's hold an enlarged meeting in the group tomorrow to discuss some countermeasures."