My fintech empire.

Chapter 1347 [This is why you must choose a good location]

Meditation in the villa.

"According to the original plan, a total of 4725 billion US dollars will be repatriated by the end of this month." Tian Jiayi, who has returned home, is now reporting to Fang Hong that the budget directly spent by Qunxing Capital for the 4 trillion housing welfare plan being promoted this time will be repatriated from overseas.

US$4725 billion is equivalent to RMB 3 trillion, and the remaining RMB 1 trillion gap is shared by more than 1770 holding subsidiaries.

America was also aware of Qunxing Capital's operation because it used the SWIFT settlement system. She was definitely furious, but she couldn't really remove Qunxing from the SWIFT system.

In this game, it was a game of chicken, and America showed her true cowardly nature.

Tian Jiayi said: "The recent foreign exchange market situation is quite complicated. We have noticed that on the one hand, a lot of overseas funds have flowed in, while on the other hand, a large amount of funds have flowed out. In addition, with our large-scale repatriation, the offshore RMB exchange rate has depreciated."

Fang Hong said: "It's normal. This year is a turbulent year."

Tian Jiayi muttered, "It seems like it's like this every year."

Fang Hong smiled and said, "It's more this year, and of course next year may be even more than this year."

From a macro perspective, there are too many factors. Currently, the two largest economies in the world are hurting each other through trade wars, financial wars, and public opinion wars, etc.

In addition, another factor that cannot be ignored is that the insiders and colonists are working hard to transfer wealth overseas, and these people are very determined because none of the money they make is clean.

A considerable number of wealthy people who have transferred their wealth overseas have actually become wealthy by dividing up G-capital over the past few decades. They are trying every possible means to move their money overseas, and the depreciation of the offshore exchange rate is not surprising.

Fang Hong said calmly, "Let's go. It's better to go. It's not easy to cut them in the mainland. If we run away, we can cut them without any scruples."

It is indeed not easy to deal with it in the mainland. These insects can still make some waves with their fangs and claws, but after they get the money overseas, they are like jackals with all their teeth plucked out. They have no resistance at all when they are bitten, and they dare not make a fuss about it. They even try their best to distance themselves from the money because it is not clean. They can only hide in the toilet and bang on the door in tears.

Finally, Tian Jiayi brought the topic back to the topic: "The 4 trillion plan currently launched is only enough to distribute to the current 1400 million employees of the Galaxy Group, but as time goes by, the number of employees will definitely continue to increase, and additional budget will be needed."

With the current upward momentum of the galaxy, it is far from reaching its ceiling and will surely continue to grow.

Fang Hong said: "This is why we have to choose a good location. After the 4 trillion yuan, there will be no need to spend extra money for a long time. Whether it is basic operating expenses or the expansion of additional housing for new employees in the future, we can anchor this fixed asset and package it into the market to issue bonds for financing. The capital cost generated can also be digested and absorbed in the form of inflation through a longer period of time."

There is no doubt that this fixed asset is fully collateralized and can be financed from the market without any problems.

These 1370 million homes are themselves an extremely large fixed asset. According to the current market fair value estimate, the conservative stock index can be worth 13 trillion yuan. And as time goes by, the valuation will gradually rise to more than 20 trillion yuan, because inflation will gradually accumulate over time.

But the prerequisite is that this fixed asset can resist inflation, or even outperform the inflation rate, so you have to choose a good location, at least within the second ring road of a second-tier city. Only in this way can you ensure that the house will not depreciate in the future.

In a few years, when the real estate market enters a downward cycle, it will become polarized. Some cities will remain prosperous, while some cities will become "ghost towns". The prices of houses in third- and fourth-tier cities will be cut in half again and again. Even in second-tier cities, if the net inflow of population is insufficient or even there is a net outflow, houses in remote suburbs or in poor locations will not be able to support the current prices.

Only houses in first-tier cities and prime locations are always popular, and their prices may even continue to rise during a downward cycle, especially luxury homes.

Because in the downward cycle, everyone is selling their houses in third- and fourth-tier cities, and after the sale, a large amount of cash flow will be generated. Such a large amount of money will depreciate if kept in hand because of the existence of inflation factors, so it has to find a place to go in order to maintain and increase its value.

The stock market is risky and most people don't dare to play with it. Assets like gold cannot absorb so much money. If everyone is scrambling for gold, the price of gold will definitely be high. It's okay for those who get on board early, but those who get on board late are afraid of having to take over.

After much thought, I finally decided that houses are more reliable, but I can only choose houses in big cities and good locations, especially first-tier cities and prime locations. They can not only maintain and increase their value, but also have liquidity. If I want to sell them for cash, I can complete the transaction quickly, and there are plenty of people to take over, because such high-quality assets are also scarce.

There are 300 cities in the country that can truly be called first-tier cities, namely the original four first-tier cities plus the newly emerging new cities, a total of five first-tier cities. High-quality houses in prime locations in major cities are scarce resources.

Qunxing Capital spent an astronomical sum of over 1370 billion yuan to acquire these 7000 million residential units in prime locations. When the property market enters a downward cycle in the future, these houses will be able to maintain their value, and after a slow recovery, they will be the first to appreciate in value, and the appreciation is % certain.

Because such huge local debts will not disappear out of thin air, they will only be transferred slowly. To put it in a more intelligent way, it is to exchange time for space. To put it bluntly, it is to dilute it through printing money and issuing bonds and other means so that everyone has to pay the bill together. Inflation is undoubtedly inevitable.

The houses under Qunxing Capital are all high-quality assets, so of course they will appreciate in value. In other words, not only will they not join in paying the bill, but others will help pay the bill. The fact that they don't help pay the bill is reflected in the asset prices, that is, these houses under Qunxing are becoming more and more valuable.

Finally, Fang Hong instructed: "In the capital market, the SGX 50 Index will continue to rise, and continue to guide and drive the 'savings migration' to the SGX market, but the entry of leveraged funds into the market must be strictly controlled. This is the bottom line and there is no room for compromise."

Human greed is eternal, and Fang Hong is clearly aware of this. It is absolutely necessary to put on the tight ring.

The public needs to "move their savings" into the SGX market to play the role of a reservoir, but it must not trigger a nationwide frenzy, just like the epic leveraged bull market three years ago, which was bound to collapse and the same tragedy would be staged again. There is no doubt that Fang Hong will never tolerate this.

Once you control the leveraged funds, the risks are controllable no matter how you play, because the listed companies in the SGX market are supported by underlying assets. Not to say 100%, but 80% is certain, especially the companies that went public in the first two years are all from the K God's Strictly Selected series. Their underlying assets are very strong and cannot be compared with those money-making companies next door. Those companies can't wait to sell the company to you directly.

There are also many high-quality assets of enterprises in various star systems that serve as the absolute guiding star and ballast of the market. This market is not a castle in the air. As long as you don't fall into the carnival of leveraged financing, you can play it however you want. Even if there are some sudden risks, they can be controlled.

……

(End of this chapter)