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Chapter 1324: Chapter 1179: Real Estate Bubble? (Please Subscribe!)
Seeing this title,
Tang Kai was startled.
He had not heard about Ling releasing any such white paper.
Just about to ask, Tang Qing directly explained, "Uncle, this will be released in a few days and it’s not really a secret; moreover, the language inside is quite official."
Tang Kai continued to flip through.
After a while,
indeed.
There was no mention of specific distribution of interests. It was a plan for a deep tourism development across the entire Myanmar, including the construction of characteristic scenic spots in the inland provinces alongside those in the coastal ones.
It almost covered all provinces of Myanmar.
The document required
that within three years, the planned hundreds of scenic areas had to be renovated and be operated in a standardized manner, ensuring the quality of tourism and international image, with numerous regulations proposed for construction standards and management.
For instance,
accessible transportation must be available,
as well as supporting infrastructure construction.
Transparent standards for pricing and public displays of prices were a must.
Just like the prevailing tourism management regulations in the Myanmar Economic Zone, in terms of protecting the interests of tourists, it was codified into legislation. For this, Ling was even preparing to establish a new department—
---National Tourism Bureau.
Actually,
it wasn’t exactly a new department.
It was merely an expansion and renaming of the previous Tourism Bureau, with increased authority and more work duties.
In the document,
it especially mentioned the tourism real estate development plan, and Delin Province, which had the longest coastline and the most islands, naturally received the most mentions. Going forward, this place would become the most important tourism province in Myanmar.
Without equal.
The long coastline.
The first ten percent was designated for tourism use, with dozens of islands included in the development plan. Conservatively estimated, the projects outlined in this document would require over one trillion Asia Dollars.
A lot?
Not really.
It further mentioned
that local infrastructure and supporting facilities would be resolved through local government and higher-level allocations, while the development and operation would be left to other companies. Auction would be used to decide the distribution of these "slices of the cake."
What amused Tang Kai most was
this auction.
It wasn’t a matter of everyone gathering together and calling out bids, but a silent auction—the base price was set, and each participant had one chance to bid on each slice of "cake." As for who would come out on top... that would depend on luck.
Seeing the final line "the results of the auction will not be made public,"
Tang Kai knew
that there was plenty of room for maneuvering here.
Ling could give it to whoever they wanted.
And no one else could raise an objection, because all participants had already been screened once; those who were selected were in agreement with this distribution rule—who would dare to speak out?
"Tangtang, if I go to bid, what are my chances of winning?" Tang Kai closed the document.
"For this bidding, half of the projects actually already have their prospective owners, the remaining half are open for fair competition. In other words, Ling will ensure that related families and powers get one or two guaranteed projects."
"If you propose to participate in the bidding, you’ll definitely win," Tang Qing explained.
Hearing this,
Tang Kai was delighted; this feeling of being ’looked after’ was truly wonderful. ’Privilege’ may cause resentment among average people, but for those who enjoy ’privilege,’ the feeling is indescribable.
"What are the standards for foreign bidders?" Tang Kai asked.
"As long as they have related industry development experience and sufficient strength, that’s enough. This time, for the tourism development, Myanmar’s domestic banks won’t grant a single penny of loans to these foreign developers," Tang Qing said.
Incapable.
Thinking of reaping benefits without contribution.
Dream on.
This is a common tactic of many International Capitals, entering a foreign market and often not using their own funds, but taking out loans in that country. In the end, little of their own money is spent to get the job done.
As a result,
the risk falls on the local banks.
If it’s profitable,
everyone is happy.
If it’s a loss,
they secure another bank loan to stay afloat or abscond, and instances of loan defaulting or misappropriation are common. This generally occurs in emerging market countries, due to their lack of investment.
But here,
there’s no shortage of funds.
If you want to make money,
you’ll need to invest your own genuine funds. Want a loan? Maybe when the second batch of real estate is opened, they’ll consider such policies. For the first round, Tang Qing was set on establishing this tradition.
Wanting to make money without investment?
Sorry,
please turn right and leave.
Thinking of Ge Feng’s cousin’s situation, Tang Qing went on to say, "Uncle, you can reply to Ge Feng’s cousin next time; making money also requires sincerity, not just looking for loopholes."
"According to the requirements there, as long as she passes the preliminary qualification review, she will have a guaranteed share. If she wants more, she can bid for the ’public portion,’ and there’s no shortage of such projects."
"Alright, then I’ll talk to Ge Feng tonight."
"Mm."
"However, Tangtang, with such an inflow of capital, asset price bubbles are bound to arise. The skyrocketing real estate prices—doesn’t this go against Ling’s goal of stability?" Tang Kai suddenly recalled the situation in Thailand.
The Thai Baht crash
originated from the real estate bubble.
The bigger the bubble,
the easier it bursts. Once it bursts, his Asia Dollar assets would also be affected.
On hearing this,
Tang Qing frowned and said, "Uncle, you’re worrying too broadly. Even if some currency attack or collective withdrawal of foreign investment occurs, that’s a problem for much later. Ling isn’t freeloading."
This real estate market hasn’t even taken off yet,
yet we’re concerned about it crashing down.
This cycle,
often measured in five to ten-year units, could potentially erupt due to the long construction periods of properties, requiring anywhere from one to five years, so it is hard for bubbles to inflate quickly.
Unless there’s a real prospect of playing ’hot potato.’
But here,
there’s no ground for such a game.
Moreover,
even if there is a bubble,
Tang Qing wouldn’t give others the chance to burst it. This is also why Tang Qing has continually imposed various restrictions on foreign investors. Other countries yearn for foreign investment,
but there,
Tang Qing’s strategy favors strongly supporting local capital.
Because
foreign capital is adept at shifting with the wind and fleeing swiftly. These fence sitters often directly lead to economic and financial crises. Such investors must be controlled within a certain limit.
Relatively speaking,
local capital "absconding" is much less likely.
Those industries and projects that can cause significant economic fluctuations
must be tightly controlled.
"That makes sense."
"As long as we maintain the ’unique value of existence’ here, there cannot be a repeat of Thailand’s issues in the past. As for economic health, it’s far ahead of Thailand at the time."
"Then I’m relieved. Later on, we’ll see if we can secure a big Island. The Islands of Delin Province are very beautiful and maintain their natural ecology, plus our family gets an additional vacation spot..."
Tang Kai said cheerfully.
This kind of business,
making money,
had become a secondary consideration.
First and foremost, his thoughts were about
making things convenient for our own people.
"You’ll have your wish."
Hearing his uncle’s description, Tang Qing thought to himself.
