SEC Chapter 1016 The sensation caused by Lin Haoran, the White House's endorsement?
Chapter 1016 The sensation caused by Lin Haoran, the White House's endorsement?
On the same day that Lin Haoran flew to Beijing, something remarkable happened in New York, thousands of miles away.
The New York State Secretary of State’s Real Estate Commission released a report on New York real estate transaction data for the first two months of 1983.
One statistic in particular is quite remarkable.
The volume of transactions for entire commercial buildings in Manhattan has surged by 115% year-over-year!
In January and February of last year, only 38 commercial buildings were sold in Manhattan.
This year, there are a whopping 82 buildings!
With such dazzling numbers, it's hard not to be attracted!
If the New York real estate market is showing signs of recovery, it's certainly not surprising.
However, apart from Manhattan commercial building transactions, other data did not increase much compared to last year.
In other words, there is a clear anomaly in the transaction volume of Manhattan commercial buildings.
The unusual surge in Manhattan commercial building sales has caused quite a stir in New York's real estate sector.
Alan Friedman, a financial reporter for The Wall Street Journal, spent a day bribing staff at the Land Registry, an agency under the New York City Department of Finance, to thoroughly examine the transaction records of those 82 commercial buildings.
His investigation revealed an intriguing phenomenon: approximately 55% of the commercial buildings, totaling 45, were ultimately transferred to the same company.
The company is called Huanyu Property Management Company. It was established less than two months ago, which happened to occur during the transaction of these buildings.
Alan Friedman’s investigative report took up half a page in the financial section of The Wall Street Journal.
Huanyu Property Management Company—this name was repeatedly mentioned in the report.
According to Friedman's investigation, the company, which was established less than two months ago, has officially taken over the property management of these 45 buildings.
All 45 commercial buildings, located in the heart of Manhattan, New York, are under the ownership of a property management company that was established less than two months ago!
Subsequently, Alan Friedman visited the headquarters of Universal Property Management Company.
However, his request for a visit was directly rejected by the company, which declined to be interviewed by reporters!
Helpless, he could only compile the limited research data into an article.
Even so, this article became the most sensational financial news in New York that day.
Not because it exposed a scandal, but because it painted a chilling picture of a company less than two months old becoming one of Manhattan’s largest commercial landlords overnight.
Starting last December, in less than three months, they acquired 45 commercial buildings in Manhattan, New York!
This situation is extremely rare.
Even during the peak of the real estate speculation boom, such a frenzied buying spree has never been seen.
Robert North, former chairman of the New York Real Estate Council and a veteran real estate consultant, told The New York Times: "I've been in the New York real estate industry for forty years and have seen countless booms and busts, but I've never seen anything like this before."
In less than three months, forty-five buildings were sold entirely in cash, without any bank loans – an unprecedented event in the history of commercial real estate.
Robert North's remarks, quoted by The New York Times, quickly spread throughout the real estate industry.
Even a seasoned veteran with forty years of experience exclaimed that he had never seen anything like it before, which only added to the mystique surrounding Huanyu Property Management Company.
Therefore, the question of whose property Huanyu Property Management Company is has become the most concerning issue for the public.
The New York Times launched a reader letter column in its follow-up report to discuss this topic.
In just two days, the editorial department received more than 300 letters from readers, with some of the most outrageous speculations being both laughable and absurd.
Some say it's a secret investment by a Saudi prince, others say it's the Rockefeller family pulling the strings behind the scenes, still others say it's a vanguard for Japanese zaibatsu to enter the US market, and some even say it's the Vatican allocating overseas assets.
Although Lin Haoran owns a Global Investment Company in the United States, there are countless companies with the same name. Moreover, Lin Haoran's Global Investment Company has always been very low-key, almost never taking the initiative to expose itself, and has never appeared on the cover of any business magazine.
On Wall Street, the name "Global Investment" is far more unfamiliar than "Global Property Management".
Therefore, when readers of The New York Times speculated wildly about the real owner of Universal Property, none of their answers came close to the truth.
However, once this matter was exposed, it could not be kept hidden for long.
Soon, it was discovered that Huanyu Property Management Company seemed to have close ties with Citibank.
Although all 45 buildings were purchased with cash, the deals were negotiated with the assistance of Citibank.
This detail was discovered by a journalist who stumbled upon it after reviewing hundreds of pages of transaction documents.
In the buyer's intermediary section of every transaction document, the words "Citibank Global Real Estate Division" are clearly displayed.
This means that Huanyu Property Management Company did not work alone throughout the entire acquisition process, but was assisted by a professional team from Citibank. From finding the target, due diligence, price negotiation to the final transfer and handover, Citibank was deeply involved.
Since Huanyu Property Management Company refused to be interviewed, the reporters had no choice but to block the door of Citibank.
Left with no other option, Citibank contacted Huanyu Property Management Company.
And Anderson, the general manager of Huanyu Property Management Company, could only announce that the owner of Huanyu Property Management Company is Lin Haoran.
After all, when Lin Haoran left New York, he had told him that he was the behind-the-scenes buyer of these 45 buildings, and that he should keep it a secret if possible, but if he couldn't hide it, he should tell the truth.
In fact, when Lin Haoran decided to buy these commercial buildings, he had already anticipated that this scene would most likely occur.
After all, purchasing dozens of commercial buildings at once is a transaction of this scale, like throwing a boulder into a calm lake; it's impossible not to create ripples.
The only thing he couldn't be sure of was how, when, and how hard this wave would crash back.
Therefore, he tried his best to keep it a secret, but he also made all the necessary preparations for the news to be exposed.
Lin Haoran already had considerable influence in the United States.
His accurate predictions of the US stock market crash, his appointment as an executive director of Citibank, his acquisition of MGM Studios and hotels, and his near bankruptcy of Forbes—each of these events garnered extensive media coverage across the United States.
Therefore, Lin Haoran is now definitely one of the most familiar Chinese American figures to the American public. If you ask someone on the street who Lin Haoran is, they will most likely say they know him.
So when Lin Haoran's name was linked to 45 buildings in the heart of Manhattan, the entire American media circle was in an uproar.
His accurate prediction of the US stock market crash made him famous in 1981.
At the time, Wall Street experts were still proclaiming that the stock market would surge due to Reagan's policies, but this young man from Hong Kong, who was not yet thirty, listed in detail several reasons why the US stock market was about to crash in a public speech at MIT.
At the time, no one believed him; some even mocked him.
Sure enough, not long after, the US stock market crashed. The Dow Jones Industrial Average lost nearly 20 percent of its value in just a few weeks, and the Wall Street bigwigs who had mocked him as a "young upstart from the East" were rendered speechless overnight.
His appointment as an executive director at Citibank brought his name from the investment community into mainstream society.
Citibank is one of the oldest banks in the United States, with a history of over a hundred years. Its board members are all wealthy and influential, including members of the Rockefeller family and former Secretaries of State and Treasury.
The fact that a young man from Hong Kong was able to sit on the board of directors of Citibank caused a huge sensation at the time.
The acquisition of MGM Studios and hotels made his name known throughout Hollywood and Las Vegas, not only from Wall Street.
MGM, the Hollywood giant with the lion logo that produced countless classic films such as "The Wizard of Oz" and "Gone with the Wind," was acquired by a young man from Hong Kong, and now the six major Hollywood studios are still joining forces to squeeze out MGM Studios.
The Forbes scandal...
Each time, Lin Haoran entered a rigid circle as an outsider, but each time he shocked the entire United States.
Now, the other party has quietly bought 45 buildings in Manhattan in one go, which is absolutely insane.
Suddenly, all sorts of different opinions emerged.
"Is Lin Haoran going to buy up the entire Manhattan area?" "Is he crazy? The real estate industry doesn't look like it's about to boom at all. Isn't he afraid that housing prices will plummet?"
"That's right. If housing prices could rise, those people wouldn't have to sell at such low prices. Although there are signs of economic recovery, no one can say for sure whether this recovery can be sustained."
"These dozens of buildings must have cost at least a billion dollars, right? And he also bought MGM during this period. He's really rich!"
"He's really daring to invest. If housing prices stay in a slump, he'll lose everything!"
"That despicable Lin Haoran should get out of America!"
Immediately, various doubts arose from all sides.
Some politicians have even jumped out to call for censorship and restrictions.
Meanwhile, the Hollywood giants took this opportunity to continuously smear Lin Haoran, attempting to fish in troubled waters during this media storm.
The situation was escalating rapidly.
At the headquarters of Huanyu Property Management Company, General Manager Anderson took out a document from his drawer and looked at its contents, feeling a mix of emotions.
"The boss is truly a visionary; he actually foresaw all of this."
The document in his hand was a self-written account that Lin Haoran left behind as a precaution when he left New York.
Now, it's time to announce it!
As a result, the editorial department of The Wall Street Journal received this self-written statement.
"Hello everyone, I am Lin Haoran. By the time you see this article, you should already know that I have bought 45 commercial buildings in Manhattan."
I know this will definitely cause a huge uproar, after all, buying so many buildings at once is really unbelievable.
The reason I bought so many commercial buildings to rent out is simple: I believe in the future economic prospects of the United States and I believe that this investment decision will bring me long-term and substantial returns.
Some people may ask where my funds come from. You can rest assured that my funds are all from legal and compliant sources, and Citibank can vouch for that.
You might be thinking, am I crazy? I'd like to leave that question to time. If Manhattan's housing prices are lower in ten years, then I'm definitely crazy.
If Manhattan home prices are higher ten years from now, then those who called me crazy are the ones who are truly insane. In the world of investing, the difference between a madman and a genius is often just a matter of time.
Some might ask, "Should I buy the whole of Manhattan?" The answer is no!
As the world's largest city, New York City has countless skyscrapers. I only bought 45 of them, that's all. I bought these buildings because I think they are undervalued. When the undervalued assets recover to a reasonable price, I will consider selling them. I am not here to occupy Manhattan, I am here to make investments.
I know that some people worry that as a non-American of Chinese descent, I might have ulterior motives for buying property in the United States, and I can understand that concern.
After all, America is your country, and it's only natural that you care about your own country.
But what I want to say is that I do business in the United States because of its open market, sound legal system, and abundant opportunities.
I made money in the United States, and at the same time, I created jobs, paid taxes, and boosted businesses in the United States. It was a win-win situation.
My investment in the United States is not for charity, but purely for business. The essence of business is mutual benefit and win-win!
Finally, I would like to say a few words to those who question me, ridicule me, or even attack me.
I have heard your voices; I understand your concerns; but I do not agree with your judgment.
You say now is not a good time to invest in Manhattan, that's because you only see the present; you say the real estate industry has no hope, that's because you only see the difficulties; you say I'm crazy, that's because you don't dare to do what I'm doing.
It's okay, I don't blame you, because investing is inherently a game where a minority is right and the majority is wrong.
If the majority were right, there would be no poor people in the world.
I am simply a global investor who abides by local laws, believes in the value of New York City, and makes long-term business plans. I have no intention of interfering in any local politics and focus on business operations and social responsibility.
If the United States does not welcome my investment, I can reduce my investment in the United States, or even leave the United States altogether!
……
The entire article boils down to one core message: Lin Haoran believes in the future prospects of the United States and believes that investing in the US legally and compliantly is a win-win situation.
If he's not welcome, he can leave!
It is not a threat, not intimidation, and not a bargaining chip.
It's just a straightforward statement: if you don't welcome me, I'll leave.
The world is vast, and the United States is not the only option.
When the article was published in the latest edition of The Wall Street Journal, everyone fell silent.
The US economy had already been severely weakened in recent years due to the impact of the second oil crisis.
Factory closures, worker layoffs, and business bankruptcies—these words have appeared repeatedly on the front pages of American newspapers over the past three years, to the point that many people have become numb to them.
The unemployment rate was around 7 percent in 1980, but by the fall of 1982 it had exceeded 10 percent.
The image of over ten million Americans unable to find work and lining up for welfare has become one of the most heartbreaking memories of this era.
Despite this challenging environment, Lin Haoran continued to invest in the United States.
Although Lin Haoran's investment alone is not even a drop in the ocean compared to the overall US economy.
But his symbolic significance is too great.
The fact that a foreigner, during the darkest period of the American economy, put real money into betting on America's future is more inspiring than any empty "economic stimulus plan."
At this point, if we were to try to sideline him, the Reagan administration would be the first to disagree!
Otherwise, the US economy, which has just begun to recover, will face a collapse of confidence.
The collapse of confidence is more terrifying than any decline in economic data.
Because it makes investors hesitate, consumers tighten their purse strings, businesses stop expanding, and banks tighten lending.
One link leads to another, ultimately forming an unstoppable downward spiral that dragged the US economy, which had just surfaced and was catching its breath, back into the abyss of darkness.
The Reagan administration did not want to see this happen.
Therefore, once the Reagan administration reached a consensus, the White House acted much faster than the outside world had anticipated.
The morning after Lin Haoran's account was published, White House Press Secretary Larry Spyx was asked for his opinion on the Lin Haoran incident at a routine press briefing.
The reporters present all thought he would, as usual, dodge the question and say something like "no comment."
But the White House spokesperson didn't speak this time.
He stood behind the podium, with dozens of recording pens and camera lenses in front of him, his expression serious and focused.
"The President has taken note of the reports regarding Mr. Lin Haoran's real estate investment in New York. The President believes that Mr. Lin Haoran is a respectable investor, and his choice to invest in the United States at a time when the U.S. economy is facing challenges is itself a vote of confidence in the prospects of the U.S. economy."
The United States welcomes any investor who abides by the law, creates jobs, and contributes taxes, regardless of their nationality.
This statement was quickly interpreted by the media as an endorsement of Lin Haoran by the White House.
Although it wasn't an official White House statement, the words coming from the White House press secretary carried considerable weight. (End of Chapter)