Chapter 206: Government Support and Securing 8.5 Million Square Feet of Land
"Of course, we also hope that the Chinese people of Hong Kong can live and work in peace," Sir Robert Black said with a warm smile.
Yang Wendong replied with a polite grin, "You're too kind, Governor."
Although he understood perfectly well that British colonial officials weren't truly altruistic toward the Chinese population, there was no reason not to offer a compliment when needed.
Regardless of their motives, if they could actually do something to improve the lives of ordinary Hongkongers and make the city more prosperous, then that made him one of the better governors—no need to judge the heart when the deeds were beneficial.
After all, even a Chinese person in the same position might not do better.
Sir Robert continued, "Mr. Yang, despite your youth, you've already created thousands of jobs and significantly contributed to Hong Kong's economic growth over the past few years.
If you were just a bit older, I'd be recommending you to Her Majesty for a knighthood."
"A knighthood?" Yang's eyes flickered. This was indeed one of the colonial government's tactics for winning over the local elite in Hong Kong and other British territories.
It was, in essence, just a title—completely ceremonial, with no real power.
Still, those knighted often enjoyed favorable treatment in policymaking circles, and it was considered a mark of social and political recognition.
Sir Robert added, "The youngest person to be knighted in the British Empire was 31 years old, and that was a decorated fighter pilot during WWII. He broke the record with his distinguished service."
Yang laughed. "Perhaps in a few years, when the time is right, I'll consider it."
"If I'm still in office then, I'll do everything I can to make it happen," Sir Robert said with a smile. "But even now, I believe you're qualified to become a councilor for Tsim Sha Tsui."
"That sounds good. I'd love to contribute to Tsim Sha Tsui's development," Yang replied.
At this point in time, Hong Kong's legislative council was quite different from its Western counterparts.
There was a big gap in actual authority.
Official members had some power—they were government appointees and functioned more like actual policymakers.
Unofficial members, on the other hand, were essentially honorary titles handed out to wealthy local elites and prominent families. Their influence was symbolic more than practical.
Still, having the title was better than not having it at all.
Sir Robert then asked, "Mr. Yang, as one of Hong Kong's most successful Chinese entrepreneurs, do you have any suggestions regarding the city's future economic development?"
Yang paused for a moment. "I come from an industrial background, so I'll only offer suggestions about industry."
"Please go ahead," Sir Robert said.
Yang continued, "Hong Kong's manufacturing sector is currently doing well, but based on global trends, I believe the electronics industry will become the cornerstone of industrial growth over the next few decades.
If Hong Kong wants to develop even further, it should actively support the electronics industry."
"Electronics?" Sir Robert turned and looked at a nearby radio. "You mean products like radios?"
"Yes," Yang nodded. "But not just radios—also televisions, refrigerators, fans, air conditioners, music players, even kitchen appliances.
These products can create massive employment opportunities, which will help solve the unemployment issue facing the government.
In Japan, the government actively supported companies early on. Now their home appliance industry is a key pillar of their economy."
"That does sound promising," Sir Robert agreed. "But under Hong Kong's free market policies, the government can't directly get involved in such matters."
"I understand," Yang said. "But the government can still provide indirect support—like lowering taxes or reducing land use fees for electronics manufacturers."
Hong Kong already had very low corporate taxes for manufacturers—an intentional policy to encourage industrial investment.
But Yang knew that even a slight reduction could boost growth in specific sectors.
Sir Robert thought for a moment. "I'll have to look into that before making a decision."
"Of course," Yang nodded.
He was only making a suggestion. If it didn't work out, no harm done. If it did, it would benefit all of Hong Kong—and his businesses too.
Now that his major industries were on stable footing, all he had to do was maintain course. And the early 1960s were the dawn of Hong Kong's electronics boom. He couldn't afford to miss the wave.
"Mr. Yang, I've heard that you're also investing in real estate and shipping," Sir Robert said. "Any thoughts on those industries?"
Yang shook his head. "Those are newer ventures for me. I'm not yet an expert, so I'd rather not offer advice."
In truth, he could give advice on real estate. But that sector didn't create value in the same way. He was only in it for the profits.
Saying too much might tarnish his reputation later.
As for shipping, he really didn't know much. He was simply acting on knowledge of the future, combined with a bit of spare capital and a need to support his factories.
"I see," Sir Robert nodded. "Do you have any requests, then?"
Yang thought for a moment. "Governor, this project is huge. I will face some pressure on the financial side.
Given the size of the industrial land involved, banks might not be too confident using it alone as collateral.
So I'd appreciate it if you could help coordinate with the banks—perhaps HSBC—and see if they can offer more favorable lending terms or reduced interest rates."
Besides land, the two key financial variables were total loan amounts and interest rates.
Interest determined profit margins, while loan size determined feasibility. Even if Yang could fund the project himself, doing so would strain his other investments—especially in real estate and shipping.
Long term, that wouldn't be wise. Even buying land in 1961 and selling in 1964 could yield massive returns.
Sir Robert thought it over. "The government can't order the banks to act, but I'll mention it to HSBC.
They don't always follow our requests, but I can guarantee you'll receive better terms than you normally would."
"That's good enough," Yang said with a smile. "Thank you, Governor."
Hong Kong was still largely under British capitalist control. HSBC, as a quasi-central bank, generally followed government guidance—but it was still a business, and always acted in its own interest.
After a bit more small talk, lunchtime arrived. Sir Robert invited Yang to join him for a modest steak meal.
It was supposedly British-imported beef, though Yang couldn't really taste the difference.
...
After returning to Changxing Industrial, Yang told Su Yiyi about his conversation with the governor.
"A knighthood?" Su Yiyi asked curiously. "That sounds impressive."
"It's just a title," Yang chuckled. "The British use it to win over the local elite. It doesn't come with any real power."
"But I heard Justice of the Peace is quite influential?" Su Yiyi asked.
"That one has actual authority," Yang explained. "But I won't qualify for it anytime soon. I'm still too young. In politics, age matters."
Unlike business, where a teenager could earn wealth through talent, politics was more hierarchical.
Even a prodigy needed to reach a certain age to be taken seriously—true everywhere in the world.
"Still, being a councilor isn't bad, even if it's just a title," Su Yiyi smiled.
"Our real power comes from business," Yang said. "The more jobs we create, the more even the Governor has to show us respect."
In the end, the government only sought him out because his businesses created thousands of jobs. That was the source of all influence.
"Then let's keep producing in Hong Kong," Su Yiyi said with a nod.
"Yes, unless Hong Kong really becomes unsuitable for production—like with plastic pellets," Yang Wendong said with a nod.
For the next twenty years or so, Hong Kong would remain an ideal place for industry. It wouldn't be until the 1980s that large-scale relocation to nearby Shenzhen became viable.
Su Yiyi asked, "So now we're just waiting for the government's reply?"
"That's right," Yang nodded. "There's no way we could acquire such a massive area of land through private purchases. Only the government has the means to make it happen. Whether this succeeds or not depends entirely on the government."
Even acquiring fragmented properties in a commercial district could take years. To piece together land on the scale required for this project would be almost impossible through normal market purchases—even if you had all the money and used both legal and underground connections, it could take a decade or more.
Several days later, at the Changxing Industrial factory:
Yang Wendong was reviewing internal documents: financial statements, HR reports, technical briefs, and quality assessments. As the company's boss, it was his job to periodically stay informed on all key aspects of the business.
Nearby, Su Yiyi was reading the newspaper when something caught her eye. "Dong-ge, this article in Sing Tao Daily says Liu Baoshan's net worth has passed HK$100 million. He announced it himself during a recent interview."
"Sounds about right," Yang said with a chuckle. "With all that money sitting in Liu Chong Hing Bank and with him moving so much capital into real estate—plus how much property prices have risen these past two years—who knows how much he's actually worth?"
When a whale dies, many fish feast.
If Liu Chong Hing Bank collapsed, many others would benefit.
Particularly since they held so much property in Central and other key districts. Even if Yang had the money, slowly acquiring those assets would take years—and a lot of luck.
Su Yiyi nodded. "He really is wealthy. Their bank offers high interest on savings, even more than Hang Seng."
"You've got money in Liu Chong Hing?" Yang immediately asked.
Though they were married, they still maintained independent personal accounts for day-to-day use—not large amounts, just pocket money.
"Yeah, I've got around HK$50,000 or HK$60,000. Mom's got another HK$20,000 or HK$30,000 in there," Su Yiyi said.
Yang said firmly, "The risk with Liu Chong Hing is way too high. I've already pulled all our company funds out. You should find time to withdraw all of yours too—who knows when it might all vanish."
"Is it really that serious?" Su Yiyi wasn't very financially savvy, but she trusted Yang completely. "Alright, I'll go withdraw it tomorrow."
"Good. Put it in HSBC or Standard Chartered," Yang smiled. "You're not relying on interest anyway."
Ding ding ding~ Just then, the phone rang.
Yang picked it up and began speaking fluently in English with the caller.
After a few minutes, he hung up.
"Was that the government?" Su Yiyi asked.
"Yes," Yang replied. "The secretary from Government House. He said the government has basically agreed to our proposal, but because it involves significant funds and land, we'll need to go into detailed negotiations."
"That's fantastic news," Su Yiyi said happily.
"I'll call Wei over now," Yang said as he picked up the phone again.
Soon after, Wei Zetao arrived, and Yang filled him in on the situation.
After listening, Wei said, "I already have our legal, finance, and facilities teams on standby. We're ready to start talks with the government at any time."
"Good," Yang said. "Focus on negotiating for the largest possible plot at the best price. And we'll deal with HSBC after the government side is finalized."
"Understood," Wei replied, brimming with confidence.
"Alright, head over there this afternoon and make introductions. It's time to start the official discussions.
The government's under pressure, too. They're spending huge amounts each month and worried about social unrest. The sooner this gets finalized, the better it is for everyone."
"Got it." Wei left to begin the next stage of the negotiations.
Over the next half-month, Wei's main task was shuttling between government offices, the Kwun Tong site, and Changxing's suppliers.
Both sides needed to understand each other thoroughly before moving forward.
March 23, early morning — at Yang Wendong's office.
Wei entered and reported, "Mr. Yang, we've just about finalized everything on the major points."
"Let's hear it," Yang said, setting aside his work. This was the most important project on his desk.
Wei said, "The government is offering us a plot of 8.5 million square feet, and they'll also give us an adjacent residential land parcel for resettling the original residents who'll be displaced.
The industrial land will be sold to us at HK$2.50 per square foot. The residential land will be priced at local market rates—the exact number isn't known yet, but it shouldn't be too expensive. Kwun Tong's land is still relatively cheap."
"HK$2.50?" Yang thought for a moment. "That's acceptable."
It was about 25% cheaper than the standard industrial land rate in Kwun Tong. More importantly, for a plot this size, no amount of money could secure it unless the government had a compelling reason to sell. Even a giant like Jardine Matheson wouldn't be able to buy it under normal circumstances.
And Kwun Tong was still considered an underdeveloped area—otherwise, this deal wouldn't have even been possible.
Wei continued, "Of course, we'll also have to factor in the cost of land leveling and construction. That part hasn't been finalized yet because we still need to coordinate with our suppliers about how to lay everything out.
As for financing, HSBC has already sent people to inspect the site. They'll approve the loan, but we'll need to pledge assets from Changxing Industrial as collateral. Interest rates will be slightly lower than standard."
"Who did HSBC send?" Yang asked.
"The head of their credit department—Sanders."
"Oh, an old acquaintance." Yang smiled. "Alright, keep negotiating. After this deal, we'll be one of HSBC's mid-sized clients."
The total investment might hit HK$20–30 million, which was huge by most standards but still modest compared to the shipping deals or massive projects handled by British conglomerates.
"Yes," Wei said, handing over a folder. "Here's the preliminary draft of the agreement. Our legal team is reviewing the risks. Please take a look. If everything looks good, we'll sign a memorandum of understanding with the government.
That will officially secure the industrial land, and they'll begin the resettlement process."
"How long will the resettlement take?" Yang asked.
"Around one month. The government will provide temporary rent subsidies and move residents out first. After that, compensation and rehousing will be discussed.
But our housing will have to be built first."
"Good. The faster, the better," Yang said with satisfaction. "I'll give you my feedback on this document tomorrow morning."
March 28 — A landmark day.
Changxing Industrial officially signed an agreement with the Hong Kong government, purchasing an 8.5 million square foot coastal plot in Kwun Tong for HK$21.25 million to build a massive industrial park.
It would be the first large-scale industrial park in Hong Kong's history, primarily used to manufacture Changxing's range of plastic products—including the now-famous wheeled suitcases, adhesive hooks, and spin mops.
Initial staffing was projected at 5,000 workers, including 1,500 transferred from existing suppliers and 3,500 recruited locally. Training programs would be implemented on-site.
Eventually, the workforce would surpass 10,000, making it one of the largest industrial parks in all of Southeast Asia.
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