Although the Fu Family will not be affected much if the Hong Kong economy collapsed, it is not something Fu Guangzheng wants to see. Other than a few unscrupulous speculators, no one will want to see their country’s economic collapse.
“What’s wrong?” Feng Yu looked at the gloomy Fu Guangzheng. This is not his character.
“Should the government implement some measures to cool the property market?” Fu Guangzheng asked.
Huh? What is wrong with Fu Guangzheng? Does he want to interfere with this, and he can influence the Government?
Oh, Fu Rongqi can persuade the Government. That means Hong Kong’s property market might still be saved.
“Are you going to suggest this to the government?”
“You can go instead of me. You are quite influential in China, and should have some say about Hong Kong, right?”
Feng Yu: “……” Damn! It’s been a while since I get involved with politics!
“I will not get involved in this. If you want, you can suggest it yourself. Just increase the property taxes for the second and above properties, and it will curb these speculations. You can also suggest increasing the property transaction taxes and limit property loans, especially for second and above properties, and checks for vacancies, etc. This will cool down the property market.” Feng Yu casually replied.
Anyway, Feng Yu will not step forward and be the hero. Since Fu Guangzheng wants to be one, go ahead! Even if Feng Yu had to be a hero, he would be a hero behind the curtains!
“Wait… slow down. Let me write it down.” Fu Guangzheng said.
“You are going to suggest this to the Government? Are you from the housing committee?” Feng Yu never expect Fu Guangzheng to take his words so seriously.
“No, but my Second Uncle is. The majority of my Second Uncle’s investments are in properties. My Eldest Uncle had advised him to offload his overseas properties, but he still keeps lots of properties in Hong Kong. If the property market collapse, his losses will be massive. You might not know about the culture here in Hong Kong. If anything happens, the residents might go on the streets to protest and affect Hong Kong’s economy.” Fu Guangzheng explained.
“Alright. I will repeat what I said, and you must remember it. Tell your Second Uncle first, and it is up to him whether if he wants to suggest these to the Government. I don’t want to get involve…” Feng Yu repeated what he said, and Fu Guangzheng wrote it down.
Fu Rongqu will only be slightly affected if Hong Kong’s property market collapsed because he did not take loans for his properties. Fu Rongqi had told them not to take loans unless necessary. Cash is king!
That is why even if property prices fell, Fu Rongqu will not suffer any losses for the time being. Most of his properties were commercial properties like office buildings and shops.
Fu Guangzheng left to meet his Second Uncle. He thought about what Feng Yu said, and felt it should be effective, but it is not easy to implement it.
Many people, especially those speculators, will object to these cooling measures. But the majority of the residents in Hong Kong will welcome it, as most of them cannot afford to buy properties.
Fu Rongqu listened to Fu Guangzheng and thought hard about it. He knew the Hong Kong property market has a serious problem, and he had experienced Japan’s property bubble before. If he had not left the market in time, he would have lost all his money!
Fu Rongqu thought the Hong Kong property market can last for another two years, as Thailand’s property market is still doing well after their economy collapsed.
But during this period, when the Hong Kong stock market plunged, a large number of funds entered the property market, and it includes foreign funds. Many people do not know how to trade futures and felt futures are risky instruments. But all of them felt investing in properties is simple. It’s just bought low sell high, and even when there are risks involved, their property will still be around!
How popular is Hong Kong’s property market now? Units were sold out even before construction starts, and it is normal to see people buying 5 to 10 units at once. These people are not buying these properties to live. They are hoarding the units, waiting for prices to go up! Most of them do not have so much money to buy these properties and had to rely on bank loans.
Property prices are rising every day and made more people join the bandwagon to speculate properties. Furthermore, Soros’s defeat in Hong Kong made people believe Hong Kong’s economy is strong, and many investors from other Southeast Asian countries channeled their funds into Hong Kong!
The property market is too hot, and problems will surface. If the Government made any changes, those who speculated in properties would lose their money.
Feng Yu’s suggestions might be good, but it will be hard to implement, as it will affect the interest of many people.
“Guangzheng, what do you think of these measures? Do you think these can be implemented?” Fu Rongqu asked.
“Uncle, I think these measures are not bad. We can modify the measures slightly to make it more lenient. For example, transactions between family members can be exempted from additional taxes and increased down payment and taxes for third properties instead of the second property. It should be easier to get these measures implemented.”
“Suggesting these to the Government by myself is not enough. I need to contact some friends, and with their support, it will be easier. But if they refuse to help, it will be impossible.”
Fu Rongqu’s friends are all top businessmen in Hong Kong’s property market, and two of them are Hong Kong’s top ten wealthiest men. Of course, he had included Superman Li too.
If all of them agreed to the cooling measures, Hong Kong’s Government would approve it, but if they refused, it would be impossible to get these measures implemented. After all, these measures will harm their interest.
When the property market collapsed, it is the speculators who will suffer, and the developers had sold all their units and are counting their profits.
Limiting the property market is equivalent to limiting the property developers’ profits. But if the market crashed, their real estate companies will also suffer losses in the future.
Now, the decision lies with the developers. Do they want to make some fast cash, or make long-term profits?
“Guangzheng, you are the one who came up with these measures. Since Feng Yu does not want to get involved, we should not mention his name.” Fu Rongqu said.
“But if these measures got implemented, the one who suggested these will be popular with the ordinary folks.”
“You also said, ‘if it got implemented.’ What if it didn’t get implemented? Many people will be offended, and your relationship with Feng Yu might be soured. Since you are the one who asked Feng Yu, you should take up the responsibility.”
Fu Guangzheng nodded. “Ok.”
Fu Guangzheng does not mind taking the blame, because he knows Feng Yu cherished his reputation. Also, he doesn’t think Feng Yu is afraid of any Hong Kong tycoons. Even if Feng Yu had to go against Superman Li, Fu Guangzheng would put his money on Feng Yu winning. To Fu Guangzheng, Feng Yu had never lost before!
I will take responsibility, regardless if it is a hero or villain!
