HLnovel Chapter 188 Going to Hong Kong
Chapter 188 Going to Hong Kong
Once he had the idea, Qi Tongwei immediately took action; the VCD project needed to be completed as quickly as possible.
Otherwise, the only option is to obtain a design patent.
The first step was to set up a company in Hong Kong, and then go to the United States to purchase MPEG video decoding technology from C-CuBE.
They also registered a patent for the VCD's form factor worldwide.
Then, we found a domestic chip manufacturer to customize the decoder.
Qi Tongwei asked Xiao Fan to go to Hong Kong and invest 1000 million to establish a company called Biyun Technology, which would be controlled by a trading company.
Biyun Technology's first task is to register the appearance patent for VCDs globally.
Qi Tongwei had already drawn all the popular VCD designs from his previous life.
However, registering design patents for these VCDs also requires a lot of money.
1000 million might not be enough.
The only option is to go to Shenzhen to find someone to exchange it. By the time the investment actually takes place in Hong Kong, there will probably only be about five million Hong Kong dollars left.
At an exchange rate of 1.3:1 between Hong Kong dollars and Chinese yuan, 1000 million Chinese yuan can be exchanged for 769.23 million Hong Kong dollars.
However, this is only the official exchange rate. In private exchanges, 1.3 Huaxia coins cannot be exchanged for 1 Hong Kong dollar.
Therefore, 10 million Chinese yuan can only be exchanged for more than 6 million Hong Kong dollars. After deducting the cost of renting a place in Hong Kong, the actual funds available for investment are only about 5 million.
Qi Tongwei needs to let Biyun Technology Company make some money first.
Historically, the Hong Kong stock market experienced a bull market in 93.
Starting from 5437, the Hang Seng Index broke through the 7000, 8000 and 9000 mark in the middle of the year, and broke through the historic mark in December. Hong Kong society was in an uproar. At the end of the year, the index rose by 115%, with a turnover of HK$12 trillion, an increase of 74%.
It's not even mid-year yet, and the Hang Seng Index is still below 7000 points. If you enter the market now, you can make a lot of money by the end of the year.
"Mayor, I've already exchanged the money, but I don't dare go to Hong Kong alone. I've heard it's very chaotic there!"
A week later, Xiao Fan called Qi Tongwei.
While exchanging Hong Kong dollars in Shenzhen, Xiao Fan inquired about the situation in Hong Kong and learned that it was very chaotic there.
It's very unsafe to bring six million Hong Kong dollars to Hong Kong.
"Alright, make arrangements for the trading company and wait for me in Pengcheng!"
Qi Tongwei understood Xiao Fan's concerns; most people would be worried the first time they go out.
Qi Tongwei reported to Chen Xinghua about his plans to develop VCDs and mentioned that he was going to Hong Kong.
"Tongwei, is this VCD you're talking about really promising?"
Chen Xinghua expressed strong skepticism about Qi Tongwei's statement, after all, this was high technology, and the industries in Biyun Township had absolutely nothing to do with high technology.
Not only the industries in Biyun Township, but also the industries in Yunmeng County, have nothing to do with high technology.
Even the industries in Iwadai City and Kyoto City have little to do with high technology.
"Yes, the market is worth at least 100 billion, and it will quickly replace video recording."
I heard from my classmates in Beijing that the United States and Japan have already developed VCDs, and they will be launched on the market this year.
If we act quickly, we can get a share of the pie, seize the domestic market, and occupy at least a billion-dollar market.
In this way, we can create at least one billion in GDP.
With an additional 1 billion yuan in GDP, Biyun Township will become the top township in Handong, and may even rank among the top 500 in the country.
Consequently, our county will become the number one county in Handong, and may even squeeze into the top 100 in the country.
The core components of VCDs are not available domestically and must be imported from abroad.
However, obtaining these parts from overseas as quickly as possible is not easy; we need to find a way through Hong Kong.
Qi Tongwei made a big promise to Chen Xinghua.
Once VCD is successfully developed, Biyun Township will have another new growth point, potentially generating over a billion yuan in growth within two or three years.
Qi Tongwei believed that Chen Xinghua would be interested in such a temptation.
Chen Xinghua has been a deputy division-level cadre for almost a year.
He went from being a deputy county head in charge of agriculture to a member of the county party committee standing committee, director of the county party committee office, and deputy county head in charge of agriculture. He must have had his own ambitions for becoming a full-fledged county head.
Biyun Township has truly created a company with revenue of over one billion yuan, and his contribution is immense.
Qi Tongwei wanted to get involved in VCDs in order to climb to the deputy director level; he needed to get rid of Liang Lu's suppression as soon as possible.
"Alright, since you're confident, I'll fully support you!"
After thinking for a long time, Chen Xinghua said that once VCDs are developed, they will be of great benefit to him.
After persuading Chen Xinghua, Qi Tongwei then met with Fang Zhigang and Lei Yaohua to report on the VCD matter and expressed his desire to visit Hong Kong.
In order to gain the consent of Fang Zhigang and Lei Yaohua, Qi Tongwei said he would find people from Hong Kong to invest in Yunmeng County.
In this day and age, foreign investment is extremely rare.
If a region attracts foreign investment, regardless of the amount, it is considered a huge political achievement.
Lei Yaohua and Fang Zhigang expressed their support, and they wanted to go with Qi Tongwei.
Going abroad is a very rare opportunity these days.
Hong Kong is still under British control, so it's considered overseas. Going to Hong Kong is equivalent to going abroad.
Having the experience of studying abroad gives them a competitive edge over others.
Soon, the formalities were completed, and Qi Tongwei set off with Fang Zhigang, Lei Yaohua, and their group.
The group was small, consisting of Lei Yaohua, Fang Zhigang, Qi Tongwei, Lou Xinghe (Director of the Industry Bureau), Zuo Junman (Director of the Commerce Bureau), and Lü Zixuan (Director of the Foreign Trade Bureau).
Upon arriving in Shenzhen, Qi Tongwei brought Xiao Fan along and exchanged HKD 100 million.
Upon arriving in Hong Kong, Qi Tongwei instructed Xiao Fan to distribute some Hong Kong dollars to Lei Yaohua, Fang Zhigang, and others.
Then he took Lei Yaohua, Fang Zhigang and others to visit some famous places in Hong Kong.
Next, Qi Tongwei took Xiao Fan to establish Biyun Technology Company.
Setting up a company in Hong Kong is not difficult; you can just hire a lawyer to handle it.
After hiring a lawyer, Biyun Technology Company was quickly established, with the trading company investing HK$500 million and holding 100% of the shares.
Then, Biyun Technology Co., Ltd. commissioned lawyers to register various design patents and MPEG-1 and MPEG-2 patents for VCDs in Hong Kong.
mpeg-1 was just trying his luck, in case C-CUBE, an American company, hadn't registered in Hong Kong yet.
MPEG-2 won't be available until next year (94), so Beyotime Technology can seize the opportunity by registering now.
Then, Biyun Technology opened a stock account and invested HKD 300 million with ten times leverage to go long on the Hang Seng Index.
It's already late May, nearing the end of the year, and the Hang Seng Index in Hong Kong is about to enter a period of continuous and significant increases, rising by more than 2,000 points in a short period of time.
If they seize this opportunity, Biyun Technology will soon be able to make a lot of money.
Qi Tongwei instructed Xiao Fan to call the trading company and withdraw another 1500 million, convert it into Hong Kong dollars, and then invest another 1000 million in Hong Kong to go long on the Hang Seng Index.
The trading company doesn't need to pay any funds to the township this month.