As soon as we entered July, I don't know why, some of the government's tone began to change a little.

No matter who asked, the government did not respond much to the land and real estate market in Xiangjiang.

But now, one by one, government officials are starting to speak.

"I think the housing prices in Xiangjiang have risen a bit too fast recently, and if you look at it in the long run, it may not be too good. —An official of the Chief Secretary for Administration.

"Well, it's a bit chaotic right now, and we need to discuss how to rectify it. - The three bosses of the political secretary.

"Governor MacLehose is very concerned about the current living environment in Xiangjiang, and does not rule out taking some measures to suppress the increasingly rampant wave of property speculation. —A close friend of the Doge's Palace.

“……”

With these statements, the land market in Hong Kong has not moved much, but immediately, a real estate project of Chinachem Group immediately opened with a price cut of $50 per square foot.

This is an unprecedented price reduction since last year!

In the past, people were raising prices, and the more they rose, the more they bought.

What now?

Chinachem has reduced the price, and a 300-square-foot house can save 15,000 yuan, which is more than half a year's salary!

But the strange thing is that Chinachem has lowered the price, and when this real estate was opened, there were only people who asked, and there was not even a single transaction.

No, it's not just Chinachem.

In the past few days, no one has bought all the real estate projects that have been launched one after another.

For the rest of the properties for sale, no one continues to buy.

This made the real estate merchants in Xiangjiang panic.

Is the government really going to strike a thunderbolt?

How can it be!?

They don't rely on the sale of land to eat, they don't rely on the collection of taxes on real estate, and what other major income do they have?

But at this time, no one dared to continue to reduce the price.

If an avalanche is triggered, I'm afraid it's all over.

It is the right decision to hold on and see what the situation is.

At such a time when people were panicking, the secretary of the Xiangjiang Government officially issued a decree.

"From now on, the Finance Department will strictly review the accounts of major financial companies and resolutely crack down on illegal lending and illegal lending activities. It is hoped that all financial companies will be prepared and take the upcoming inspection seriously. ”

I grass!!

When this policy came out, it immediately aroused more worries.

Before 1978, it was very difficult to obtain a banking license in Hong Kong, so before that, many banks entered Hong Kong in the form of "finance companies" to carry out some borrowing and deposit business.

Then, after the banking license was opened, they still continued to use the method of a financial company that they were accustomed to to carrying out deposit and loan business.

These can be called regular armies.

There are also some less formal, that is, those privately opened financial companies in Xiangjiang, or those set up by associations.

In the Xiangjiang movies of the 80s and 90s, those people owe debts and high interest loans, which are basically debts owed to these financial companies.

The financial company is authentic, but if your mortgage conditions and so on are not qualified, then they will not take the regular way, then it is a high interest loan.

How many finance companies are there in Hong Kong?

As of July 1981, there are 533 of them.

Yes.

You read that right.

Such a small Xiangjiang has a total of 533 financial companies!

Basically, there are 5.33 financial companies for every 10,000 people on average, right?

However, of these 533 companies, more than 400 were established after 1978, and more than 300 were established last year.

This can also be seen how prosperous the real estate in Hong Kong is, and how many loans there are.

Ordinary people who do not meet the bank's requirements usually come to the finance company for a loan.

Although the interest rate of the financial company will be slightly higher, even if it is a club, as long as you have enough collateral and have a normal job, then they will come in accordance with the formal procedures and will not be cheated. Since you have stepped into this business, as long as it is a legitimate loan, you can't bring all the vices of the community over, otherwise all financial companies will jointly resist this rat.

The problem now is, of course, not the financial companies of these associations, but the real estate lending of the whole of Xiangjiang.

Seeing that countless people have taken out loans for 20 or even 30 years, putting all their savings on real estate, and not even enough for daily living, the Xiangjiang government will naturally not sit idly by.

If it goes on like this, there will definitely be problems.

And there will be big problems!

Therefore, in fact, as early as June, after two consecutive big deals, the Xiangjiang government began to hold a closed-door meeting to secretly discuss how to curb the current crazy rise in real estate.

It is definitely not possible for real estate to not rise, but if there is such a sharp rise, skyrocketing, and uncontrolled crazy price increase like the current one, once the people can't stand such strong pressure, it is very likely to affect the order of the entire Xiangjiang.

But you can't just beat you to death with a stick, such as directly announcing that you are not allowed to take out a loan to buy a house...... In this way, the real estate market has completely collapsed, and only the Xiangjiang government itself has cleaned up the mess.

They discussed it for more than half a month, and finally came up with a feasible solution.

Today, the reorganization of large and small financial companies is only the first step in the whole plan.

First, when the financial companies are cleaned up, if the large and medium-sized banks are not interested, the Xiangjiang government will immediately announce the second step.

If the second step doesn't work yet, then there is a third step, a fourth step...... It will become stricter and stricter until all property developers and banks relent.

The Hong Kong government has not managed the real estate market for a long time.

Now as soon as it strikes, the financial company panics, but it is the ordinary people who are even more alarmed.

The interest rate of a finance company lending to a private person is much higher than that of a bank.

In the same way, if they take deposits, the interest rate will be much higher than that of the bank.

Therefore, many citizens of Hong Kong have deposited their savings in financial companies.

Of course, they don't dare to give it to those small financial companies, but those large and medium-sized financial companies, with a banking background behind them, are their favorite places to save money.

Now, when I hear that the government says that these financial companies are not standardized, and they need to be thoroughly investigated, ordinary people think, my money must be taken back quickly, otherwise what if it is not insured, what will happen if it is swallowed by them?

In particular, those depositors who only have a three-month, half-year, or one-year term don't want to think about it directly, and would rather not have interest than withdraw their money.

For a time, more than 300,000 people in Xiangjiang went to various financial companies and took out their money.

Now the financial company wants to cry without tears.

Even banks are in danger of collapsing in the event of a run, let alone financial companies like them.

If they weren't all relatively formal, these short-term deposit lists alone would be enough for them to drink a pot.

But even so, they also passed through their parent company outside Xiangjiang and urgently transferred a sum of money before they could pass the customs.

Why?

Because they don't put these deposits in their accounts!

They all lend out these deposits, or go to various stocks, investments, and so on.

Finance companies understand that it is an unforgivable waste to let money lie on the account, and they certainly do not make such a mistake.

And investing a large amount of money in this way will inevitably lead to insufficient reserves, and it is very dangerous to run on the stock in the event of a run.

Finance companies are now encountering such a huge risk, and the money in the account is simply not enough for depositors to withdraw!

Therefore, if it were not for the full support of the parent company, I am afraid that there would be direct bankruptcy.

In such a situation, how dare they lend money again?

If you lend again, you will really collapse!

If it fails, all the money will be lost.

As a result, these financial companies not only did not dare to continue lending, but immediately urged those who had already taken out loans and were about to repay them.

Even large and medium-sized financial companies dare not lend money, and small financial companies are also immediately vigilant, and quickly leave some money to prepare for the shortage, and can still resist it when something happens.

As a result, whether it is a loan that is under review or has been approved, all of them have been stopped in the past few days, and no loans have been given at all

If the customer is in a hurry, they would rather lose a little money and push off these loan businesses.

Between survival and money, they can only choose one, and idiots know which one to choose.

Okay.

Before the Finance Department started to inspect, it had already scared the people and the financial company like this, and the real estate developers in Xiangjiang suddenly had a bad feeling in their hearts.

Their feelings, in fact, are right.

Just three days later, HSBC, one of the note-issuing banks in Hong Kong, issued an announcement.

"From now on, the Bank will conduct stricter qualification review for real estate loan customers. This includes, but is not limited to, checking whether the mortgaged property meets the value and the lender's ability to repay...... And so on."

Even HSBC did this, and soon Standard Chartered Bank, Hang Seng Bank, etc. also issued statements, all of which were all practices to control loans.

These banks are not finance companies! The decree issued by the Chief Secretary does not include them at all.

But they reacted immediately, which shows that they are very serious about the government's signals.

At the same time, it is also a signal from the bank to the government.

Look, I'm pretty good, right?

So you don't have to issue a decree against us, we'll just do it ourselves!

Please don't upgrade again, although our family has a big business, we can't afford you to toss it like this!