Chapter 207: Another Major Loan and a New Real Estate Boom
What does 8.5 million square feet actually mean?
Many people might not have a clear sense of the scale, but Ta Kung Pao made it very clear—it's equivalent to a rectangular area of 0.8 km by 1 km. That visual instantly made the concept click for the public.
"8.5 million square feet?" a young man exclaimed, stunned, as he read the newspaper.
"Did you say 850?" asked someone nearby.
"See for yourself."
"Damn! That's massive. My whole family of six lives in less than 300 square feet."
"Same here," a few others chimed in, joining the discussion.
They were all just ordinary folks, and all they could do was marvel at the fortune and scale of the super-rich, unable to truly grasp the meaning of such numbers.
Central, Hong Kong.
Zheng Yutong had just sat down for breakfast when he saw the bold headline in Sing Tao Daily: "8.5 Million Square Feet."
He immediately set aside his toast and grabbed the paper.
His wife, Zhou Cuiying, noticed his sudden focus. "What is it?"
"Take a look," Zheng said, handing her the paper.
As soon as Zhou saw the headline, she gasped, "8.5 million square feet?"
"Exactly," Zheng nodded. "That's more land than most property developers in Hong Kong have in their entire portfolio."
"But it's industrial land, not residential," Zhou pointed out.
"That's true," Zheng replied. "But the key is that it's land, and once you hold it, it's yours. That's what matters."
"You're right. But he only got that land because his factories solve a problem for the government. That's not something we could replicate," Zhou said.
Zheng nodded. "Yeah, all we can do is admire it. I've worked for years and only managed to secure a million square feet of gross floor area."
North Point, Hong Kong Island – Cheung Kong Industrial Factory
Li Ka-shing was reading the newspaper, so surprised that he forgot to drink his tea.
His wife, Chong Yuet Ming, walked over and noticed his expression. "What's wrong?"
"Look at this," Li said, handing her the paper.
When she saw the headline, she was also shocked. "Changxing Industrial's new factory needs that much space? And they plan to hire over ten thousand people?"
"That part isn't too surprising," Li said. "Our Cheung Kong plastics factory already has over 7,000 employees. Changxing's bestselling products—like their suitcases—aren't far behind in volume. So hiring over ten thousand makes sense.
But that amount of land? It's ten times the size of our factory."
Yuet Ming glanced back at the article. "Maybe it's because their suitcase manufacturing equipment is massive—it all has to go on the ground floor. We can stack our machinery across multiple floors, so we need less space."
"That makes sense," Li nodded. "And from the article, it looks like Yang Wendong is footing the bill himself. He'll build the park and then lease the facilities to his suppliers or other plastics factories.
Clearly, he has a lot of confidence in the future of the real estate market. Otherwise, he wouldn't invest everything himself."
"If you think real estate is worth investing in, of course he would too," Yuet Ming smiled. "And didn't his trading company recently start competing with the foreign importers of plastic pellets?
If he brings all those factories into his park, it'll make it even easier for him to dominate the import market."
"True. He's growing fast. In just a few years, he might become the top industrialist in Hong Kong," Li said with a mix of admiration and caution.
"His products are so creative, and demand is global. It's only natural we can't keep up," Yuet Ming reassured him. "Didn't you say you plan to shift into real estate soon?"
"Yeah, the plastic flower business still has demand, but too many small factories can make them now. We can't maintain our old profit margins," Li said. "I'll keep earning from plastics for a few more years, then switch fully into real estate."
"Sounds like a good plan," Yuet Ming agreed.
Though it was industrial land and not in a prime location, the sheer size made it exceptional. Yang estimated that even if the industrial park only returned modest profits, the land itself might be more valuable in the long term.
It was a reflection of Hong Kong's industrial reality. Many factory owners struggled for decades only to find their properties were worth more than their actual businesses.
Three days after the news coverage, Yang Wendong met with Bai Yushan.
After some passionate "exchange of affection," Bai asked, puzzled, "Dong-ge, I know the land you got is massive, but it's zoned industrial. You can only use it for factories.
Even if land values rise nearby, it'll be hard for you to cash out. The size alone makes it difficult to offload."
"I'm not looking to cash out anytime soon," Yang smiled. "But I have faith in Hong Kong's future. What seems like a remote area today could become a commercial hub tomorrow.
Kwun Tong might not match Central or Tsim Sha Tsui now, but if nearby commercial development takes off, I can just move the factory and repurpose the land."
"That makes sense," Bai nodded. "But you'd need to pay the full difference in value to convert industrial land into residential or commercial. The government won't give discounts.
Selling land is their biggest source of revenue—they can't allow any loopholes."
She was right. Land-use conversions required official applications. The government usually approved them—but only after collecting the full price difference between industrial and commercial value.
And there was no room for negotiation. If the government allowed flexible pricing, developers would stop bidding at auctions and instead buy industrial land for conversion—undermining the entire system.
"I know," Yang said. "But isn't the most important thing to have the land? Once it's mine, I can apply for a conversion."
The government was strict, yes, but not inflexible. Li Ka-shing had done something similar during the 1984 property crisis—turning the 2 million sq. ft. Whampoa docklands into commercial space and building what became Hong Kong's largest housing estate, earning nearly HK$10 billion.
Even if Yang couldn't copy that move exactly, he had other options. The basic logic: convert when land values are low, develop when values are high.
His site was less central than Whampoa but four times the size. If redeveloped one day, it could be even more profitable.
"Well, that's all in the future. For now, the industrial park is your main focus," Bai said.
"Exactly," Yang nodded. "Industry is the top priority. If I can create jobs for tens of thousands of people, it won't just benefit me—it'll uplift Hong Kong's poor as well."
He wasn't a saint, but he wasn't heartless either. When it came to helping fellow Chinese avoid starvation and misery, he wouldn't hold back—especially when it aligned with his own interests.
His bottom line was simple: no one should starve or suffer due to lack of water or food. As for housing prices later on? That was beyond his control.
"Maybe they'll write your name in the history books someday," Bai teased.
"There are no history books in Hong Kong," Yang laughed. "Just doing my part here and now is enough."
"You're right," Bai agreed. "I remember when I was dieting and skipped meals for a day or two—it was unbearable. I can't imagine how those poor kids go hungry every day."
"That's why they say: 'The rich waste food, while the poor starve on the streets,'" Yang said with a sigh. "A few years ago, I was the same. There were months I couldn't even afford meat."
"Is that why you want to help the poor now?" Bai asked curiously.
"If I can, I will," Yang smiled. "That's why I need both industry and funding. Only with both can I build something truly great—and achieve even greater success myself."
"Fast money still comes from real estate, shipping, or banking," Bai said. "Your Changxing Industrial is a rare exception in the manufacturing world."
"That's why I won't miss out on real estate or shipping either," Yang laughed. "I'm meeting with Sanders again tomorrow to discuss another HSBC loan."
"For the industrial park?" Bai asked. "Didn't you already finalize that deal?"
"Yes, that one's done. But this loan is for something else," Yang said with a mysterious smile.
Bai didn't press further. When Yang wanted her to know something, he told her. If he didn't, she respected that.
The next day, Yang visited HSBC headquarters in person.
"Mr. Sanders, good to see you," Yang greeted, after being led in by a blonde assistant.
Sanders had been expecting him. "Mr. Yang, welcome. Please, have a seat."
The two men chatted briefly. The assistant brought over coffee.
"This one's from Britain," Sanders said with a smile. "Please, try it."
"Thank you." Yang took a sip. He wasn't a fan of coffee, but Sanders clearly valued this meeting, so he gave him face.
It tasted like any other cup of coffee to Yang, but he smiled and said, "Excellent."
"Haha, if you like it, I'll send some over," Sanders chuckled. "Now, about your visit. The Kwun Tong industrial park deal is pretty much finalized. What can I help you with today?"
Yang got straight to the point. "I want to take out another loan from HSBC."
Although the land price for the industrial park wasn't too high per square foot, the overall area made it a massive expenditure. On top of that, land leveling and construction would need another HK$20 million in loans. But that wasn't what this meeting was about.
"A loan?" Sanders raised an eyebrow. "This sort of thing usually doesn't require you to come in person."
Yang smiled. "Normally, no. But this loan involves a substantial amount and touches on a few sensitive areas. I thought it best to speak with you directly."
Changxing Industrial still had ample cash and generated healthy profits each month. But many of the group's investments—such as the real estate acquisitions in Kwun Tong and the ship purchases for Changxing Shipping—had relied on Changxing Industrial as the financial backbone.
So loans were necessary to keep his cash flow intact.
"How much are we talking?" Sanders asked curiously.
Yang replied, "That depends on how much HSBC is willing to lend. I'd say HK$20–30 million would be the minimum. If you're willing to go higher—HK$40–50 million—I won't say no."
"HK$50 million?" Sanders looked visibly surprised. "Are you planning to enter the shipping market in a big way? Buying new ships?"
A loan of that size could only mean one thing—something on the scale of acquiring multiple brand-new freighters.
As for real estate—yes, it required a lot of capital too. But all of the large-scale development projects that would demand this kind of massive funding? Yang Wendong was already well aware of them. Those projects were already claimed by others.
Yang smiled and said, "No, I'm not planning to get into shipping—not yet. I'm just looking for a straight loan. As for what the funds are for, I can't disclose that yet—not even to your bank."
He might invest in new ships in the future, once his team became more experienced in maritime operations. When that time came, a major bank like HSBC would naturally be part of the picture—but not now.
Sanders frowned. "Mr. Yang, I understand you may have specific business goals, but this puts our bank in a difficult position.
If we don't know where the money is going, we can't assess the risk. We can't monitor it. Under such conditions, we simply can't lend much."
"I understand completely," Yang nodded. "But you've already reviewed Changxing Industrial's financials. Just give me a number—how much can I borrow with those assets as collateral?"
Changxing Industrial had grown too large to remain under the radar. Its exports were now so substantial that they had been mentioned in multiple news reports—especially since the release of the wheeled suitcase, which had gone global.
And with the recent industrial park deal in Kwun Tong shocking the entire Hong Kong market, Yang was prepared to use Changxing Industrial itself as collateral.
That meant exposing more internal data to the banks—but that didn't worry him. Even with offshore tax structures in place, he had intentionally left enough profits onshore to make his books look healthy for situations exactly like this.
Sanders thought for a moment. "Changxing Industrial's profit margins are indeed impressive. If you were borrowing to invest in real estate—and factoring in that real estate can also be used as collateral—I'd say a credit line of HK$30–50 million wouldn't be a problem. I think upper management would approve.
But since you can't disclose the purpose right now, I estimate we can offer you a loan of HK$10–15 million."
"That's a bit low," Yang said after a brief pause. "Mr. Sanders, I can at least tell you that this money may be used for acquiring real estate in Hong Kong. If that's the case, and the properties are quickly mortgaged back to HSBC, would your bank be able to release additional funds on short notice?"
His actual objective, of course, was to prepare for the upcoming run on Liu Chong Hing Bank.
Saving the bank was impossible—not because he didn't want to, but because it couldn't be done. Once a bank faced a liquidity crisis, it needed trust, not capital.
In the original timeline, Liu Chong Hing Bank saw more than HK$10 million withdrawn in a single day during the panic. After several consecutive days, the cash flow collapsed. Yang knew that even with all his wealth, he couldn't save them.
But he could benefit. The Liu family, trying desperately to save their bank, would start liquidating their most prized assets.
These properties were prime locations—assets that Liu Baoshan had spent a lifetime acquiring. Under normal conditions, they couldn't be bought no matter how much money you had. Acquiring even one of them often took years of patient negotiation and a stroke of luck.
Whether Yang bought them or not, they would be sold. It wasn't malicious; if not him, someone else would step in.
This was simply a rare real estate feast—and missing it would be a tragedy.
"If that's the case, we can discuss it," Sanders replied, still puzzled by the vagueness of it all. "In that case, I'll apply for a higher credit line for you. But the funds would need to be kept in an account with us.
If you're using it for property purchases, there won't be an issue. But if you intend to move the money elsewhere, or use it for something undisclosed, then there will be restrictions.
We'll need to include those clauses in the contract—how does that sound?"
"That's fine," Yang agreed immediately.
He didn't mind disclosing his intentions later. Once Liu Chong Hing Bank went into crisis and he began buying up their properties, it wouldn't be a secret anymore.
He was just laying the groundwork now. With Liu Baoshan's alleged net worth surpassing HK$100 million, such a massive asset liquidation would require advance notice to the banks.
Without that, even HSBC or Standard Chartered wouldn't be able to pull together that much liquidity in a short period.
Sanders smiled. "Excellent. Then here's to another successful partnership."
For the bank, the money would sit in their account, generating interest income. If the funds really were used for low-risk property acquisitions, all the better.
And if the borrower chose to redirect the funds elsewhere, the contract would still give the bank control over how much could be used.
From HSBC's perspective, it was a win-win.
"To a fruitful partnership," Yang said as they shook hands.
Even for commercial loans, banks usually needed to know how the money would be used. The only reason small business loans didn't always require strict oversight was because the amounts were small and typically backed by property or co-signers.
But large corporate loans like this were another story entirely. What Yang was asking for would naturally come with conditions.
The next day, Yang visited Standard Chartered and made the same request. Their response was similar—cautious, but willing to proceed with limitations. They gave a conservative commitment.
Yang understood perfectly. The last thing any bank wanted was a large, opaque loan.
If his factory weren't so profitable, and if he weren't already a known entity, they would never have considered his request.
Over the next few days, Yang visited both banks multiple times.
In the end, HSBC agreed to lend him HK$20 million, and Standard Chartered offered HK$8 million.
All of the funds would be kept in accounts at the respective banks. The loan agreements specified that:
If the funds were used for real estate, they could be fully accessed.If the borrower wished to transfer them to another bank or use them for an undisclosed purpose, only 50% would be released.
Yang accepted these terms without hesitation. They were exactly what he needed. He was now fully prepared for the upcoming crisis—and the property buying spree that would follow.
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