Chapter 307: The New Land King of Central
Afterward, Yang Wendong followed Takao Yagyu to the site of a massive 120,000-ton oil tanker.
Takao Yagyu introduced it with great pride. "Mr. Yang, this is our shipyard's standard oil tanker model. Its deadweight capacity is 120,000 tons."
As Yang Wendong gazed at the vessel stretching nearly 200 meters in length, he asked, "How much does this ship cost?"
Takao Yagyu replied, "The sale price for this ship is 13.6 million US dollars."
"Probably the most expensive tanker in all of Asia, huh?" Yang Wendong said with a light smile.
This one ship cost nearly as much as his group's entire net profit for a year. Without bank loans, he wouldn't even be able to afford it.
Takao Yagyu nodded. "Yes, but this type of tanker also has the strongest transport capacity. A single shipment can meet the fuel needs of many small nations for several months."
"Mm," Yang Wendong nodded, saying nothing more.
"Would you like a detailed introduction?" Takao Yagyu asked again.
"Sure," Yang Wendong agreed. Of course, he wouldn't pass up the opportunity.
He wasn't necessarily going to buy this particular ship, but he was happy to learn more first.
For over an hour, an engineer from Yagyu's team explained the features of the massive vessel in front of them, also covering other ship models as reference.
"This kind of industrial capability really is something to admire," Yang Wendong remarked as he stood on the deck, genuinely impressed.
Even though the industries under his own group were profitable, they still fell short compared to heavy industries like shipbuilding.
Zheng Yuhua laughed and said, "Mr. Yang, Hong Kong actually used to have shipyards. Vessels for river use and smaller ships were once built here quite successfully.
But when orders from the mainland dried up completely, the industry gradually faded. Now all that's left are a few repair yards."
"Mm, a place like Hong Kong could never really support heavy industry in the long term," Yang Wendong said, nodding.
Hong Kong's complete shift to real estate and finance had been inevitable. As globalization advanced, industrial clusters began forming in specialized regions. It wasn't just Hong Kong—even many countries with weaker industrial foundations had their entire manufacturing base hollowed out due to competition with major industrial powers.
Zheng Yuhua then said, "President Yagyu asked me privately just now if we're interested in buying a tanker of this 120,000-ton size."
Yang Wendong thought for a moment and asked, "Do you think our current crew can handle a ship this size?"
Operating a large oil tanker required a much higher level of skill than a regular cargo ship. At present, Changxing Shipping had six 50,000-ton oil tankers involved in water transportation. Although this operation was low-risk, it had provided valuable training ground for cultivating talent in large tanker navigation.
This trip to Japan was meant to purchase ships of similar tonnage—nothing too risky.
Zheng Yuhua replied, "There's not much difference between large and small tankers in open water. The real difficulty is during docking. But we can always recruit experienced captains.
In 1959, Tung Hao-yun ordered a 100,000-ton tanker in Japan. At that time, he hired foreign captains and trained local Chinese crew under them. To this day, there haven't been any major problems."
Yang Wendong smiled. "So what you're saying is that we're in a better position now than Tung Hao-yun was back then?"
"Exactly," Zheng Yuhua said. "Plus, once we own a ship like this, there'll be no shortage of clients. Its massive capacity makes the per-ton shipping cost extremely low.
The only real inconvenience is that it has stricter port requirements. But nowadays, many countries have offshore loading and unloading capabilities, so docking is no longer a strict requirement."
Yang Wendong asked, "A ship of this size can't pass through the Panama Canal, right?"
Zheng Yuhua nodded. "Correct. It can't. But it can go through the Suez Canal. As long as we're not doing business with the Americas, it's not a problem."
"Alright. What about the banks?" Yang Wendong asked.
Even the most profitable business required bank backing for such large-scale purchases.
Zheng Yuhua said, "President Yagyu mentioned that their partner banks are willing to finance 60% of the ship's cost. That's one percent higher than what's typical.
Combined with our existing relationship with HSBC, we'd only need to provide a relatively small down payment."
"An extra 10% of coverage?" Yang Wendong was clearly tempted. "They're willing to take on that much risk?"
On paper, it didn't look like much, but for a buyer, a 10% difference in down payment could reduce their upfront capital requirement by a full third. With some creative leverage, the difference could be even more pronounced.
It was just like speculative real estate in mainland China in later years. A small shift in loan conditions from the bank meant people could finance an extra apartment, pushing the bubble higher.
If the market went up, they might double their profits—or more. If the market went down, they'd be wiped out.
For the bank, this was clearly a higher-risk loan.
Zheng Yuhua said, "Banks in Japan are commercial entities too. They pursue profit. And in their eyes, the risk isn't that high.
Right now, Japan has a massive shortage of oil. The bigger the tanker, the more attractive it is to them. After all, oil from the Middle East doesn't need to pass through any canal to reach Japan."
"So we might end up using our tankers to ship oil to Japan?" Yang Wendong asked.
"That's very likely," Zheng Yuhua replied. "Japan is already one of the world's largest oil importers. And even if not Japan, Europe has huge demand too."
Yang Wendong thought for a moment and said, "Alright, it's worth considering. As long as the loan terms are favorable. Remember, loan amount is key. I don't mind paying slightly higher interest if it gets us a higher loan ceiling."
For most people, that approach was too risky. If the shipping business slowed down, that higher interest could be fatal.
But for someone who had seen the future, the next ten years would be a golden age for large oil tankers. After the Middle East crisis, oil prices and shipping rates would explode. At that time, just selling the ships themselves would bring several times their original price.
"Yes, I'll negotiate with the Japanese financial institutions," said Zheng Yuhua.
"Good. Also, considering HSBC's risk control policies," Yang Wendong added, "we need to secure clients here in Japan ahead of time. But only sign one-year contracts."
"Understood," Zheng Yuhua agreed immediately.
He was well aware that his boss, Yang Wendong, operated very differently from Bao Yugang when it came to long-term ship leasing. None of Changxing Shipping's vessels—whether newly built or second-hand—were signed under long-term charter contracts. Even the ships purchased last year were leased to Japanese enterprises on a one-year basis.
Yang Wendong continued, "In addition to that large tanker, we also need to consider purchasing 50,000-ton class oil tankers and bulk carriers. Right now, financial institutions across Asia are bullish on maritime shipping. This is the best time for us to expand."
If they missed this window, there might not be another. When banks were willing to lend, one would be foolish not to borrow—whether the funds came from Japan or Hong Kong.
If he were bold enough to acquire multiple large-capacity ships now, the investment could be recovered within just a few years. And when the Middle East crisis hit, the returns would be astronomical.
Opportunities like this only came once in decades. The speed at which these ventures could generate wealth far surpassed that of traditional manufacturing—or even real estate in Hong Kong.
Over the following week, Yang Wendong visited several of Japan's largest shipyards, touring their facilities and expressing purchase intentions. This encouraged competition, ensuring the most favorable terms for himself.
Such large-scale ship deals required extensive negotiations over technical specifications—details Yang Wendong himself didn't need to get involved in.
December 31, Yang Wendong returned to Hong Kong from Japan and met with Saunders at the Peninsula Hotel, as previously arranged.
After some polite small talk, Yang Wendong briefed him on the progress of his Japan trip.
"Looks like Mr. Yang is planning to go all-in on the shipping industry," Saunders commented after listening.
"Exactly," Yang Wendong nodded. "Compared to Tung Hao-yun or Zhao Congyan, my current fleet tonnage is still far behind. So I'm preparing to begin large-scale purchases of new ships."
Saunders chuckled. "Now that's more like it. I must admit, when you bought so many second-hand vessels earlier, I thought you were short-sighted. But now, with most of them transporting water, it turns out I was the one who lacked vision.
What you've gained through that effort is worth far more than just profits."
Yang Wendong smiled modestly. "Those benefits weren't my primary goal—but they're certainly welcome."
Once Changxing Shipping began large-scale water transport, the Governor and many other government officials started viewing Yang Wendong more favorably. So did the public—both within the business community and among ordinary citizens.
This was human empathy at work. While most people might not sacrifice their own interests to help others, they still admired those who did. Just like in the TikTok era back in his previous life—whenever someone jumped into a river to save a drowning person, they'd receive near-universal praise, even though most of the people praising them wouldn't have done the same themselves.
Of course, as a time-traveler, Yang Wendong's good deeds were never without planning. He always ensured that both society and himself benefited, so the operation could be sustainable.
Saunders nodded. "From what I hear, many officials in the UK have expressed admiration for your actions. The same goes for mainland authorities. That alone is enough to ensure a stable business environment for you in the future."
"Haha, even better," Yang Wendong said with a smile. "If I'm stable, then partnering with me carries far less risk for HSBC as well."
"Absolutely," Saunders agreed. "For lower-risk ventures, we're more than happy to offer preferential terms."
"So then, for my next round of oil tanker and bulk carrier acquisitions, HSBC will be fully supporting me?" Yang Wendong asked.
"I'd certainly support it," Saunders replied. "But we're talking about sums in the tens of millions of US dollars. That's not something I can authorize on my own.
We'll need complete documentation, proper risk assessments, and to go through formal approval processes. Only then can we determine the loan amount and interest rates."
"Of course. Japanese banks have similar procedures," Yang Wendong said.
Deals of this magnitude involved coordination between shipyards and multiple banks, with agreements on purchase price, loan limits, interest rates, delivery timelines, and repayment methods. Even the shipyards themselves needed to enter into agreements with the banks.
Building ships required massive capital. In truth, shipbuilders and shipowners were both leveraging financial instruments to the maximum—trying to get major projects off the ground with minimal upfront funds.
"Well then, let me congratulate Mr. Yang in advance on becoming one of Hong Kong's future shipping kings," Saunders said with a smile. "I look forward to continuing our long-term partnership."
Given Yang Wendong's track record—and the clear upward trajectory of the global shipping market—HSBC had no reason not to cooperate. If they didn't, Yang Wendong could simply go to another bank.
For a major commercial bank, what mattered most was securing large-scale, low-risk, capital-intensive clients. Building long-term relationships with such clients was a win for everyone.
"I certainly hope so," Yang Wendong replied with a nod.
In real estate, he could rely on local banks. But for shipping, he would need HSBC.
"Indeed." Saunders took a sip of green tea, then added, "By the way, there's something I can give you an early heads-up about."
"Oh?" Yang Wendong asked curiously.
"You'll hear about it officially soon," Saunders said with a smile. "The Governor's Office held a meeting recently about how to address the water crisis. I attended as well.
I can't share all the details, but the main takeaway is this—there's going to be an increase in the budget for purchasing water from the mainland, especially next year. To raise the necessary funds, the government has decided to auction off a premium land parcel."
"Really? Which land parcel?" Yang Wendong asked.
It seemed his recent efforts had paid off. Perhaps his meeting with the Governor had had an influence after all.
In truth, auctioning off a valuable piece of land was the best way to raise emergency funds. A single prime lot could sell for tens of millions. That amount of money going toward water purchases would be incredibly effective.
Historically, the Dongjiang Water Supply Project had cost only a few tens of millions of yuan to build—although the exchange rate at that time was complicated.
Saunders replied, "It's a plot on Queen's Road Central. About 25,000 square feet in size. Given the location and scale, it could easily become the next land king of Central."
"A plot that size on Queen's Road Central definitely qualifies as a land king," Yang Wendong agreed.
In today's Central, edge locations saw a few auctions each year, and some old buildings could be purchased directly. But land in the core area was extremely rare.
Especially with companies like Jardine Matheson and other British conglomerates constantly eyeing core Central real estate.
"It seems Mr. Yang is interested?" Saunders asked with a smile. "But I suspect Jardine will be as well."
"Jardine?" Yang Wendong chuckled. "So what? Just because they're interested doesn't mean I have to back off."
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