Chapter 369: Investing in Li Ka-shing
Early the next morning, the sunlight streamed through the windows of the presidential suite at the Four Seasons Hotel, casting a golden glow across the room.
Yang Wendong was stirred awake by the brightness, his eyes fluttering open. He turned his head and noticed that Bai Yujie was already awake. Rolling over, he wrapped an arm around her and asked, "What are you thinking about?"
"About you, obviously~" Bai Yujie replied cheekily, but then said nothing more.
Yang Wendong grinned. "If you were thinking about me, you could've woken me up."
"You were sleeping so well just now. I didn't want to disturb your beautiful dream," she replied, gently pushing away his wandering hand.
Yang Wendong leaned in and whispered in her ear, "There are some very special ways you could've woken me up…"
"In your dreams~" Bai Yujie let out a small squeal, only to have her protest quickly muffled.
An hour later, the sun had risen higher, its rays now shining along the edge of the windows. Yang Wendong stood at the window, gazing out at the clusters of buildings on the western edge of Hong Kong Island and across Victoria Harbour.
Bai Yujie came over with a glass of milk, handing it to him. "What are you thinking about?"
"I'm thinking about this view," Yang Wendong said, gesturing across the skyline with a slow sweep of his hand. "How much of all this might be mine in the future?"
Bai Yujie laughed. "Trying to become Hong Kong's biggest landlord now? I thought you said manufacturing was the heart of your business empire?"
"Important things aren't mutually exclusive," Yang Wendong replied. "Real estate, shipping, manufacturing, media—I want them all. And who knows, maybe I'll expand into even more industries in the future."
Once a financial group grew beyond a certain point, it was difficult to stop, assuming you had the ability to keep growing. Whether it was in the West, Japan, Korea, or even mainland China later on, the pattern was the same. Business expansion was like running downhill on a slope: unless something big got in your way, you could only go faster.
Take sticky notes, for instance. At first, his company had only produced that single end-user product. But then they started making the core components—adhesive and paper. Once those two arms matured, they branched out into other end-use applications for those same materials.
Of course, part of that was due to the lack of a well-developed surrounding supply chain. In order to control costs, vertical integration was necessary. But if this had been a few decades in the future, in mainland China where supply chains were mature and suppliers could drive costs down through scale, he wouldn't have had to go through all that. At most, he'd invest in suppliers the way Formosa Plastics did.
Bai Yujie didn't overthink it. Instead, she smirked and asked, "So your women are just like your industries, huh? Always growing in number?"
"Jealous?" Yang Wendong countered with a smile.
It was the best kind of question to avoid answering—by flipping it around and dodging entirely.
Bai Yujie said, "I don't mind. But maybe you should be more concerned about Sister Yiyi and my sister…"
"Hmm~ Then when are you planning to officially join the family?" Yang Wendong asked.
"I… I don't know," Bai Yujie hesitated. "I think we should wait a bit longer."
"Alright, I respect that," Yang Wendong nodded.
"I should head out," she said with a smile. "I've got afternoon classes at the university."
"Oh? Do you need an excuse for not going home last night?" she added teasingly.
"What excuse?" Yang Wendong shrugged. "I don't always go home. Some of my offices have private rooms with beds. Sometimes I just stay there if I'm tired—or if it's late and not safe to travel."
That was true. Infrastructure in Hong Kong still had many shortcomings, especially at night. Crossing the harbor from Kowloon was troublesome, and the roads were poorly lit in many areas.
There were also still punks and petty criminals roaming at night. While established gangs usually avoided provoking big names, the real danger came from unpredictable young delinquents or desperate thugs.
"Oh, I figured," Bai Yujie laughed, then said, "Alright, I'm off."
"Need me to have someone drive you?" Yang Wendong asked.
"No need, I brought my own car," she said, waving as she turned to leave.
Left alone in the suite, Yang Wendong continued to bask in the morning sun, gazing out at the buildings glittering under the daylight—structures that symbolized wealth, power, and the endless opportunities ahead.
That afternoon, in another suite of the Four Seasons, Yang Wendong met with the chairman of Cheung Kong Industries—none other than the future business legend of Hong Kong, Li Ka-shing.
"Mr. Li, a pleasure," Yang Wendong said, extending his hand with a friendly smile.
Li Ka-shing returned the handshake warmly. "Mr. Yang, your hotel is truly magnificent. I dare say it outshines even the Peninsula."
"Haha, you're too kind," Yang Wendong chuckled. "If you're interested, you're welcome to stay a night as my guest. Or sample some of the services we offer at the Four Seasons. In the future, when international clients visit, you could consider hosting them here."
Although luxury hotels catered mainly to external guests, in this era without the internet, most travelers had no idea what hotels were available or how good they were. That made local business networks essential to a hotel's success. In short, winning over domestic corporate clients was key.
As for tourists, hotels generally relied on partnerships with travel agencies. But tourism was a small slice of the market at this point—the global economy hadn't taken off yet, and very few people from the surrounding region visited Hong Kong for leisure.
Li Ka-shing nodded. "Alright. Later I'll borrow your phone to let my wife know."
"Of course—feel free," Yang Wendong said with a smile.
Indeed, the Four Seasons would soon need to forge ties with major traders and manufacturers in Hong Kong, ensuring their clientele would be referred directly.
After a bit of small talk, Li Ka-shing asked, "So, about the collaboration you mentioned yesterday—what exactly did you have in mind?"
Yang Wendong replied, "Mr. Li, I'd like to invest in your company. How do you feel about that?"
At present, among the future Four Great Families of Hong Kong, Sun Hung Kai had already received investment from him. Henderson Land hadn't been founded yet, though he had built ties with Lee Shau Kee. Assuming history remained unchanged, he could wait and invest once Henderson was established.
As for the remaining two families, while they'd be harder to invest in, it wasn't impossible. He had to at least try.
"Invest in my company?" Li Ka-shing didn't seem too surprised. This wasn't the first time someone had expressed interest in investing in his business. "But the plastic flower industry isn't doing well right now…"
Yang Wendong smiled. "Plastic flowers are just a product, and they're not patented. If I wanted to invest in that, I'd just do it myself. What I want to invest in… is you, Mr. Li."
"In me?" Li Ka-shing asked, visibly intrigued. "Mr. Yang, I'd like to understand—how does this partnership benefit us both?"
Smart people always asked that question. A sustainable partnership had to benefit both sides—only then could it last.
Yang Wendong answered, "From my perspective, I believe in your ability. Even if the plastic flower market has cooled, I'm confident that you'll find the next big thing."
"…It depends on what you're looking for," Yang Wendong said with a slight smile. "What I can offer you is access to certain resources. For example, if your factory's current profitability isn't great, I can outsource some of Changxing Industries' manufacturing to you. I won't claim it'll make you rich, but it'll at least stabilize your company's scale. That would buy you the time you need to think carefully about your next move."
Many of Changxing Industries' products were outsourced to external manufacturers—especially plastic-based ones, like rotating mops, adhesive hooks, and countless other items. There were simply too many SKUs, too complex and labor-intensive to produce all in-house. If the company tried to handle everything internally, its energy would be drained on low-margin production work. The number of employees would balloon, and management would become a nightmare. Even in Europe or the U.S., large enterprises eventually suffered from the same ailments.
The ideal model was to let suppliers handle production while maintaining equity stakes. Being the buyer, Yang Wendong could also dictate the supply of plastic pellets in Hong Kong—especially as a shareholder in Formosa Plastics. That gave him control over much of the industry's total profits.
And since he already had plenty of suppliers, having Cheung Kong Industrial become one more made perfect sense. On top of that, he could invest in them directly.
If it weren't for the recent collapse of the plastic flower market, getting a piece of Cheung Kong Industrial—once making millions of Hong Kong dollars annually—would've been nearly impossible.
"Mr. Yang, this proposal sounds very promising," Li Ka-shing admitted, clearly intrigued. The current glut in the plastic flower market had forced him to consider layoffs at his factory.
But layoffs sent a bad signal to the public and potential investors. Unless it was absolutely necessary, he didn't want to go that route. If he could become a supplier for Changxing Industries, the profits might be modest, but it would preserve his company's scale.
Yang Wendong pressed further. "So, Mr. Li, do we have a deal?"
"Something like this… I'll need to hear your terms in full before deciding, wouldn't you agree?" Li Ka-shing replied with a smile.
"Fair enough." Yang Wendong nodded. "I'm not yet fully up to date on Cheung Kong Industrial's financials, and collaboration with Changxing Industries can get a bit complex. But what I can promise you is this—you'll receive enough orders to maintain your production scale.
As for my side, I'd like to acquire a 20% equity stake in Cheung Kong Industrial. I'll invest based on a fair valuation, using post-audit financial data to determine the amount."
"That sounds reasonable," Li Ka-shing said, pausing briefly before adding, "Mr. Yang, would you mind if I asked a non-investment-related question?"
"Of course," Yang Wendong replied.
"I've been increasingly optimistic about the real estate market lately," Li Ka-shing said. "In my view, no matter how much Hong Kong earns through industrial growth, most of that capital—aside from the small portion that gets converted to foreign currency and moved overseas—will ultimately flow into real estate. Some of it will go to the stock market, of course, but the bulk will enter property.
So I keep wondering, rather than breaking our backs running factories, wouldn't it make more sense to do real estate? You've got both real estate and industrial assets—what's your perspective?"
"Your thinking is very sound," Yang Wendong replied with a nod. "In Hong Kong, a significant portion of accumulated wealth does end up in property. Running a factory requires a high level of ability, and even then, it often doesn't yield better returns than real estate."
And that was putting it conservatively. Without the rare genius-level talent needed to build an elite manufacturing operation, running a factory in 1960s Hong Kong was almost always less profitable than property. The wealth generated through industry, trade, shipping, and services ultimately funneled into real estate—it was simply no contest.
Of course, Yang Wendong had his time-travel advantage, allowing him to tap into global markets. But even with that, if not for electronics and the eventual rise of the internet, it would've been hard to beat the returns from Hong Kong real estate—or, later, from markets in mainland China and Taiwan.
Fortunately, the two sectors didn't have to be mutually exclusive. They could be developed in parallel.
"Well said, Mr. Yang," Li Ka-shing agreed. "It's just… property prices in Hong Kong are too high now. And looking at the history of global real estate markets, downturns are inevitable. Hong Kong has already experienced one a few years back. That's why I haven't dared make a move yet. I've just used my existing capital to buy a few industrial buildings and collect rent."
"Industrial buildings are indeed the safest investment," Yang Wendong replied with a smile. "Even if the real estate market takes a hit, the demand for industrial space usually holds up.
As for property crashes—they absolutely happen. But tell me, what business doesn't carry risk?
Running a factory carries the risk of bankruptcy too. Or take the shipping industry—if there's a crisis and freight rates skyrocket, a bunch of factories could be wiped out. Real estate, by comparison, is a bit less risky."
Even rental properties weren't without risk. Most real estate businesses relied on leverage—buying properties on credit and paying off loans through rent. If a crash came, rental yields would fall and mortgages could become undercollateralized. The result? Cash flow collapse—unless the company had grown large enough to hold vast properties outright, with zero debt. But reaching that level required years of stable operations and careful planning.
"So you also believe Hong Kong property prices are too high right now?" Li Ka-shing asked. "I've noticed Changxing Real Estate hasn't been very active in recent government land auctions."
"That's right," Yang Wendong confirmed. "Since 1958, housing prices have risen three to four times over. That kind of growth is approaching the limit. It's just a matter of when things normalize again."
"When that happens, it'll be time to strike," Li Ka-shing said with a grin.
"Exactly." Yang Wendong nodded.
Most people understood that in theory—but the smart ones knew when to act. That was the real difference. If you mistimed your entry point in a V-shaped downturn, even if you survived the peak, you could still be wiped out by a poor investment decision and excessive leverage.
Every crisis had its victims—people who resisted the temptation at the top, only to fall by mistiming the bottom.
After thinking for a moment, Li Ka-shing said, "Alright, Mr. Yang. I'll need some time to consider, and I'd like to discuss it with my wife."
"No problem at all," Yang Wendong replied. He knew that Li Ka-shing wasn't the only decision-maker. Zhuang Yueming, his wife, was also actively involved in Cheung Kong's operations.
That evening, Zhuang Yueming came to the Four Seasons Hotel and met with Li Ka-shing in a suite that Yang Wendong had arranged for them.
After hearing Li Ka-shing's summary of the proposal, Zhuang Yueming looked around the room and asked in a hushed voice, "Do you think this place is bugged?"
Li Ka-shing chuckled. "I thought about that too. That's why I didn't take the presidential suite—I randomly selected this room. The Four Seasons is a massive business, far bigger than Cheung Kong. I doubt they'd stoop to something like that."
"True," Zhuang Yueming nodded. After pondering for a moment, she said, "This partnership sounds pretty good. But the key isn't just getting some plastic orders…"
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