novelraw Chapter 36 Dogfuck Capitalism
Chapter 36 Dogfuck Capitalism
Thursday, August 9th.
The dairy company has finally launched a counterattack!
A press conference was held: all board members were present. The press conference was hosted by Ke Lun, executive director and general manager of Milk Company Limited, and specially invited Chairman Madden of Wheelock and Chairman Chi Tak-chung of Hutchison Whampoa Limited.
Lee Chu-tzu, the chief director of the Rothschild family, listed three main reasons for opposing the acquisition on behalf of the Dairy Farm Company:
1. Hongkong Land's dividend is too low. Dairy Farm pays HK$3 per share, while Hongkong Land pays HK$2.4 per share.
2. Hongkong Land's profits are too low. Dairy Farm's earnings per share are HK$3.65, while Hongkong Land's earnings per share are only HK$2.58.
3. Hongkong Land's poor reputation. Dairy Farm's excellent reputation can protect the long-term interests of shareholders, while Hongkong Land's real estate developments are subject to huge fluctuations in the market.
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Friday, October 10th.
Hongkong Land also held a press conference:
Half of Hongkong Land's board members were present, and directors from major Jardine Matheson Group companies also came to lend their support, making the event even more impressive than the milk sales.
Hongkong Land's Newbikin announced two pieces of news:
1、此前以两股面值5港币的置地股票，换一股面值7.5港币之牛奶股票，收购方案已于11月7日寄与牛奶公司各股东。
2、现以两股面值5港币的置地股票加5港币现金，换一股面值7.5港币之牛奶股票，接受收购者须在11月29日前至毕打街登记处。
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The Hang Seng Index has gone completely mad.
After breaking through the 700-point mark, the rally continued, with Dairy Farm's share price rising to a high of HK$290 per share, followed closely by Hongkong Land, which surged to a high of HK$140 per share.
Thanks to the strong support of Milk Company and Hongkong Land, and even more so to the eager investors who rushed to act as "leeks" (victims), Chen Guanjiang sold all his shares in just one day.
While 36.96 shares may seem like a lot, it is just a drop in the ocean for Hongkong Land Group, which has a total share capital of 6000 million shares.
Stock market investors are delighted by the rise in paper wealth, but they never imagined that someone was turning paper wealth into reality, with massive sell orders hidden in this extreme frenzy.
The average selling price per share is HK$123!
HK$4546 million was cashed out that day!
After calculating the costs, Chen Guanjiang was so angry that he wanted to call the police.
The securities commission is 2.5%, and the various taxes and fees are 0.69%, totaling HKD 145 million, which is not too bad.
扣除739万港币的配资及三个月15%的短期配资利息110.7万港币后，还剩3552万港币利润和270万港币本金。
However! !
Hong Kong has not yet transformed into a financial services industry, nor has it implemented a two-tiered profits tax system. The current taxation method is: 5% for annual taxable income below HK$2 million, and 10% for income above HK$2 million.
Furthermore, regardless of the price, the 18.36 shares of Hongkong Land will be bought back and returned to the Jardine Matheson consortium three months later. The actual revenue was not HK$3552 million; it would be good if HK$3000 million were left.
With the year drawing to a close and other unresolved issues weighing on his mind, Chen Guanjiang, whose financial knowledge was severely lacking, had no idea how much tax he should pay. He felt dizzy.
"Fuck your mother! You son of a bitch! You son of a bitch, capitalism..."
The foreigner, Gard, couldn't understand what they were cursing, but after glancing at the numbers on the paper, he understood what was going on. He smiled and suggested, "Mr. Chen, you don't need to worry about the tax rate. I can introduce you to a lawyer to help you legally handle your taxes."
Today, Hong Kong is still primarily a manufacturing and shipping industry, and its tax avoidance methods are quite different from those of the financial services industry.
For example, the classic offshore company model is no longer viable. Only after the ownership was confirmed in the 80s did England create a financial offshore center in order to hollow out and continuously reap profits.
The income comes almost entirely from stock trading and is completely transparent; the model of asset appreciation, dividend income, and profit sharing is not feasible. Since there is no overseas trade, speculation, or R&D activities, it is not possible to apply for a profit tax exemption.
In the past four months, although Chen Guanjiang has adapted to this era, he has not yet touched upon the professional knowledge of legal tax avoidance. Without understanding, he dares not act rashly, which is no joke.
After much thought, hiring a lawyer seems more convenient, but deciding which lawyer to hire and what level of lawyer to hire requires further consideration.
Junior-level barristers lack the capacity to entrust such matters, and senior-level barristers are unlikely to be interested in the millions of Hong Kong dollars in taxes.
As for hiring a King's Counsel-level barrister to research tax avoidance methods involving millions of Hong Kong dollars? That's akin to verbally abusing someone.
The best approach is to choose a lawyer who is currently practicing, highly capable, and has the potential to become a top-tier lawyer in the future.
In this way, one can both afford a small amount of money (a few million Hong Kong dollars) and keep up with the growth rate of Chen Guanjiang's wealth, while also having the potential to become a "partner" in the future.
In the United States, lawyers are also classified into three levels: Associate, Senior Associate, and Partner.
Whether it's the King's Counsel in England or the Partner in the United States, they rarely appear in court anymore.
In England, the custom is to be invited to become a company director, while in America, the custom is to become a company partner. In essence, there is not much difference; both involve receiving a high-salary affiliation.
Other companies, seeing that it had such a prominent figure, would just tolerate being bullied and let it pass.
If both parties are affiliated with the same Buddha, then the Buddha could simply arrange a private meeting and that would be the end of it.
If someone is truly willing to disregard appearances and tear off the mask, a lawyer can show them what the right to interpret the law really means.
During his tenure, Zhou Junnian served as a director and chairman of more than ten companies. Even after retirement, he was still hired by many companies and enjoyed the honor of being a lifetime legislator.
Zhou Xinian, relying on his brother's illustrious reputation, served as a director of more than fifty companies, and even forcibly seized the position of chairman of the British-owned Dairy Farm Company.
Unfortunately, Zhou Junnian passed away last year, and the Zhou Yongtai family was brought back to its original state the following year, which shows the power of a lawyer and the importance of the right to interpret the law.
After much deliberation, Chen Guanjiang finalized his choice and asked, "Does Mr. Jia De know Li Guoneng?"
Li Guoneng graduated from the University of Cambridge in England with dual master's degrees in literature and law, and obtained her junior barrister qualification in 1970.
Given the current upward momentum of the Li Peicai family, it won't be long before they elevate Li Guoneng to the rank of Senior Counsel, and ultimately help her achieve the status of King's Counsel.
After her death, she lost her King's Counsel title but was promoted to Chief Justice of the Hong Kong Court of Final Appeal, which demonstrates Li Guoneng's professional competence and her family's influence.
The foreigner, Gard, thought for a moment and said, "I don't know him, but I know his uncle, Li Fuzhao. He's the one who started the Far East Society."
"Could you help me get an introduction?"
"No problem!"
“…………”
Chen Guanjiang couldn't help but look up at the third floor, his heart filled with mixed emotions, from the initial trading seats on the first floor to the exclusive VIP room on the second floor.
Now I can finally ascend to the next level, stepping onto the top floor of the Far East Stock Exchange, and meet that legendary figure in Hong Kong's financial industry...