Consumption, investment and exports are seen as the "three horses" driving economic growth.

Among these three methods, Hu Zhenhua chose investment.

As far as the current Shanghai is concerned, the effect of investment is obvious.

Take Xinzhong Machinery Factory as an example. After receiving the order, it began to purchase raw materials and parts, driving many upstream and downstream industries.

The effect of investment in boosting the economy is immediate.

After the factory had money, it began to pay workers back wages. In order to boost workers' enthusiasm, Zou Du, the manager of Xinzhong Machinery Factory, even gave substantial performance rewards.

The workers had money and started buying snacks for their children, making cheongsams for their wives, and buying supplements for the elderly...

It also boosted consumption.

As stores sell more goods, merchants will purchase more goods in order to make profits, and these goods will eventually become factory orders.

This creates a virtuous cycle.

On May 5, Hu Zhenhua was stunned when he saw the report in his hand.

The housing prices in Shanghai have returned to the level before the "Amethyst Incident".

A large amount of capital poured in, causing real estate speculation.

The Red Army stopped south of Wuxing and west of Suzhou, and the newspapers began to boast about the special status of the Magic City and that the CCP did not dare to attack.

Hu Zhenhua rubbed his eyebrows, feeling quite emotional.

"When the sword doesn't really fall, there are always people who hope for the best!"

Money can blind people's eyes and make them turn a blind eye to the impending risks.

This is particularly evident in the stock market.

In a bull market, everyone turns a blind eye to bad news.

In a bear market, everyone turns a blind eye to good news.

People tend to follow others blindly, especially when everyone agrees, they tend to convince themselves.

This is the current situation in Shanghai. Everyone is immersed in economic recovery and turning a blind eye to the impending war.

Hu Zhenhua turned his head to look at Atlan and asked,

"Are there any signs of the foreign company selling off its properties?"

TA company does so many things to reap profits, not to be the leeks themselves.

If the foreign company ran away first, Hu Zhenhua would have no place to cry.

Atlan blew out a smoke ring and laughed.

"Housing prices are soaring right now, and the trend of hoarding properties is prevalent. No one is willing to sell, and there are fewer and fewer houses available for sale, which is fueling the rise in housing prices."

Old Hu finally felt relieved.

"What about the house we have? Have we taken the opportunity to sell it?"

"Right now, a small portion of those houses have been turned into raw materials and are being secretly stored throughout the Magic City. We have too many houses, so we have to work slowly. It will take several days to process them all."

Atlan paused and said,

"Chairman, the price of raw materials has risen too much. Compared to our contract price, it has increased by at least 30%. Should we consider suppressing it?"

Hu Zhenhua waved his hand.

"Only if traders can profit will they desperately ship all kinds of raw materials to the Magic City! Atlan, if you have time, it's best to read economic works like 'The Wealth of Nations'. In the future, you will be the CEO of a world-class company, and you must have the ability to control the overall situation."

"Yes!"

Hu Zhenhua glanced at him and continued to paint a rosy picture.

"The scale of TA's company is growing. If I hand over the entire group to you now, can you steer this giant ship of Tongan?"

Upon hearing this, Atlan quickly put down the cigar in his hand and sat up straight.

After a brief thought, Atlan sighed.

"Chairman, I still need to learn more from you!"

“Learn from each other!”

Hu Zhenhua looked out the window and shouted,

"Send letters to all the major traders immediately, urging them to fulfill their contracts. They've taken my deposit, so they can't just sit there and wait!"

"Yes! I'll do it right away!"

As you can imagine, sending a letter will have no effect.

If you sell in bulk, you can earn 30% more profit.

And there is no problem selling the goods. As soon as the goods arrive at the port, everyone rushes to buy them.

If the TA company's contract is executed, the profit earned will be quite limited.

Even if the TA company's deposit is returned and a 10% penalty is paid, the major traders can still make an additional 20% profit!

Even a fool knows how to choose.

Atlan thought for a moment and said,

"Chairman, we can't let the price of raw materials continue to rise like this. Every one yuan increase in the price of copper will cost us hundreds of thousands of yuan more!"

Hu Zhenhua looked at the list in his hand.

So far, Tongan has acquired more than 8000 tons of copper through bulk purchases. Compared with the planned purchase volume, 8000 tons is just a fraction!

Seeing Hu Zhenhua remained silent, Atlan continued,

"Those traders, not only make huge profits, but they also boast: these pigs are so easy to slaughter, they're lining up for us to cut them down!"

Hu Zhenhua clenched his fists, but soon relaxed them again and said with a smile,

“Did they invest all the money they earned in real estate?”

“Most of them were invested!”

Hu Zhenhua snorted coldly and shouted,

"It's still unclear who the pig is! Immediately and secretly notify the manufacturers in the Magic City and jointly limit the price to drive it down! But their company can't intervene in this matter! They can only operate in secret. Atlan, do you understand what I mean?"

Atlan's eyes were bright and he smiled.

"Chairman, do you mean to make traders think that Tongan is manipulating prices in order to force them to fulfill their contracts?"

Old Hu nodded slightly.

"That's what I mean, but the 'truth' must be discovered by the major traders themselves."

"I understand!"

Atlan thought for a moment and continued,

"This kind of alliance has no binding force at all. Someone might join the alliance on the surface but actually make purchases in secret!"

Hu Zhenhua waved his hand indifferently.

"This is inevitable. We only do what we should do. Whether we succeed or not is irrelevant! If you want to destroy them, you must first drive them crazy. When traders win a great victory, they will raise prices even more recklessly!"

"I understand!"

Hu Zhenhua chuckled and said, "The meat is already rotten in the pot. No matter how high the price is, it will be paid with banknotes."

Money earned in Shanghai is spent in Shanghai, so don’t even think about taking a single cent home.

……

An open-air cocktail party is being held outside the Huifeng Foreign Company building, and the invited guests are the political and business celebrities of Shanghai.

Charlie stood on the podium, holding the microphone, and said excitedly,

"Ladies and gentlemen, thank you all for coming to today's reception. Please look in the direction of my finger. Today's star is there!"

The reporter turned the camera and pointed it at the area covered by the red cloth.

Charlie waved his hand, and the red cloth was lifted by the staff, revealing the true appearance inside.

It was a three-dimensional planning map of the community.

This method is the content in the plan. It can present the plan to everyone in the most intuitive way.

The sandbox is extremely large, covering an area of ​​more than 300 square meters.

Of course, this kind of sandbox cannot be compared with later generations, but it is already a dimensionality reduction attack.

Charlie said excitedly,

"Ladies and gentlemen, what you are seeing now is a joint development project by major foreign companies: the Peony Palace!"

After Charlie finished speaking, he stopped and let the reporters press the shutter.

Peony represents wealth, while palace represents nobility.

After a long time, Charlie saw that the flash lights were not so dense, and then he spoke.

"Mudan Palace, covering 4000 acres, is planned to include residential areas, leisure and shopping areas, hospitals, schools, gardens, and sports fields. Living here, you can enjoy meticulous security and attentive service. In the future, this place will be a gathering place for political and business celebrities. To purchase a property in Mudan Palace, you must be a high-net-worth individual."

Charlie's voice was high-pitched and seemed to have a shocking effect.

"American television, Romantic cuisine, Japanese maids, Gentleman’s butlers, and Philippine servants—the Mudan Palace will provide them all. Here, you are the emperor, you are the queen."

"Mudan Palace has also reached agreements with well-known educational institutions, allowing your children to enjoy first-class education. For example, Earl Kindergarten. In the future, we will also cooperate with well-known universities in the United States and Europe to provide recommended admission for outstanding students."

"The Mudan Palace will also build a world-class hospital. Our hope is that if you can't get a cure for your illness here, you won't have to go to any other hospital!"

"Imagine that you might run into a billionaire on your morning run, or sit at the same table with your business partners for breakfast. If you want to play ball, all you have to do is make a phone call and your friends can gather in five minutes."

"The Peony Palace is not only an ideal residence, but also a commercial center! When you're worried about an investment, your neighbor might be able to offer sound advice. When you're in trouble, an elderly chess player might just wave his hand and solve the problem. Because the Peony Palace is inhabited by prominent figures in politics and business. Living in the Peony Palace will greatly expand your network!"

"The Peony Palace is synonymous with wealth and prosperity. You deserve it!"

Charlie became more and more excited as he spoke, and it was a full half hour before he stopped.

Behind Charlie, there are twenty or thirty foreign companies and hundreds of trading houses. This force is enough to influence the economy of the Magic City.

Charlie handed the microphone to Morris and said with a smile,

"Now, please allow Mr. Morris to introduce the construction plan of the Peony Palace to everyone!"

Charlie represents British capital, while Morris represents American capital.

Logically speaking, there should have been Chinese investment involved, but Tongan was not invited to the project from the beginning, which angered Hu Zhenhua. For this reason, Morris was framed and took the blame for lending money to Anlin Supply and Marketing Cooperative!

Although Morris later invited Hu Zhenhua, he refused outright, and it was obvious that he was still angry!

Morris picked up the microphone and said with a smile,

"Ladies and gentlemen, I'm Morris from Huaqi Foreign Company. Thank you all for joining us for today's reception. Let me first report on the progress of the Peony Palace. We have completed the land acquisition, and according to plan, we will complete the land leveling within a month. Next comes the construction work, which will be completed within six months. After that, it will take another three months to complete the renovations. In other words, everyone can move into the Peony Palace before the Lunar New Year."

This speed seems a bit exaggerated, but with the precedent of Chongming Industrial Zone, no one feels there is anything wrong with it.

Morris finished speaking, looked around and smiled.

"Ladies and gentlemen, you may now ask questions!"

A Chinese reporter immediately asked,

"There are so many companies participating in the Mudan Palace project, but why is TA the only one missing?"

Morris secretly groaned. He had long discovered the disadvantages of leaving TA company, but there is no medicine for regret in the world.

Fortunately, Morris had a plan in mind and said with a smile,

"Of course TA Company is involved. Many of the projects at the Mudan Palace will be undertaken by TA Company's construction companies!"

A reporter raised his hand and said,

"Mr. Morris, aren't you afraid of the risk of war?"

Morris laughed.

"It is precisely because of the war that our land acquisition costs are lower. War is temporary, but development is eternal!"

A reporter raised his right arm and asked,

"Mr. Morris, do you have any inside information? Or is there some kind of agreement or tacit understanding between the consulate and the Chinese Communist Party? I heard a rumor that Huaqi Foreign Trade Company provided a loan to the Red Trading Company, so you are not afraid of the risk of war, right?"

Morris's face looked a little ugly.

The loan to Anlin Supply and Marketing Cooperative is top secret, how come these big-mouthed reporters know about it?

Of course the reporter couldn't know, but what if Lao Hu secretly revealed something?

When something happens, they say it was a leak from the Secret Service, because they have the motive anyway.

After a moment of silence, Morris said lightly,

"We have never reached any agreement or tacit understanding with the CCP. Please don't misunderstand!"

Not only did the guests not believe this, even Charlie didn't believe it.

Morris saw that the situation was not good and said quickly,

"Rumors stop with the wise. Please remain rational. The following question session will be handed over to Mr. Charlie!"

What Morris didn't know was that this wave of his outrageous actions sent a "peace" signal and cheated countless foreign investors.

Charlie was also full of questions. After taking the microphone, he said a few perfunctory words, handed the microphone to Kenny, and went to find Morris to inquire about the news.

Charlie chased into Morris's car and asked anxiously,

"Mr. Morris, has the US made any substantial progress in its contacts with the Red faction?"

"Charlie, I have no right to answer any of your questions. If you want to find answers, I suggest you go to Carter!"

"So, you have indeed made substantial progress!"

Morris said calmly, expressionless.

"I can neither admit nor deny what you said!"

……

Although Morris ran away, the topic he left behind is still widely circulated.

Loans are bad news for the authorities.

But for businessmen, it is good news!

A peaceful environment is the prerequisite for development.

The housing prices in Shanghai started to rise again, but in less than half a day, they began to fall slightly.

At the Cathay Hotel, Hu Zhenhua lay on a throne chair basking in the sun.

It's a rare opportunity to relax, so of course I have to enjoy some sunbathing.

Suddenly, Atlan came in a hurry,

"Chairman, this is terrible! House prices have dropped! I'm afraid there will be a chain reaction!"

Hu Zhenhua took off the towel from his face, slowly opened his eyes, and smiled.

"Money is like water in a pool. It doesn't appear or disappear, it just flows from one pool to the next. Shanghai's real estate is one pool, and the Peony Palace is another. Now many people are eyeing the land around the Peony Palace and want to buy at the bottom. They're pulling money out of real estate, so of course housing prices are going to fall!"

Atlan nodded.

"If too much money is withdrawn, there will still be risks."

Hu Zhenhua covered his face with the towel again and said with a smile,

"Don't worry. There have been more and more cargo ships arriving at the port lately. Where will the funds from traders' sales go? They'll all flow into the real estate market. Land prices in Shanghai will continue to rise."

Funds are withdrawn from this side and funds are poured in from that side.

Overall, more funds are pouring in!

Economics is sometimes very simple. It can be summed up in one sentence: when more people buy, the price goes up!

Tap the screen to use advanced tools Tip: You can use left and right keyboard keys to browse between chapters.

You'll Also Like