Chapter 21 Wisdom not corrupted by greed

"He has the spirit of going forward bravely and not willing to lag behind." Pan Shilin commented on his son, "But he is also very careful, he will look back at every step before moving forward, and he will never be rash." Pan Shiyi is a very cautious person. After SOHO China went public in 2007, Pan Shiyi mobilized people from the entire company to find land for him, and those who provided resources had a corresponding reward system, which shows that he was also eager to spend money.But this process is very short, and it didn't take long for the financial crisis.When the financial crisis came, he became cautious. "It's not like looking for land in a hurry like at the beginning. It's very prudent. Every piece of land has to be measured well, or wait to buy the bottom." Jin Huainan, sales director of SOHO China, said, "Mr. Pan is still prepared for danger in times of peace. Although rich, He is still more cautious in doing things, which may have something to do with the hardship he has suffered. The hardship he has endured is so great that most people have never experienced it. People who have endured hardship are different. It doesn't matter if it's a hundred million. He has cash in his pocket, so he feels at ease in his heart."

Perhaps, he has seen too many criticisms in the past, and he has seen too many ups and downs of people in that chaotic era.This sense of disillusionment with the impermanence of fate made him especially cautious.Pan Shiyi said: "Irrational people are like passing clouds. In the history of China's real estate industry, there are too many people in one batch, five-year batches, five-year batches, and soon disappeared, because of lack of discipline and rationality. " Because of rationality and "wisdom not destroyed by greed", Pan Shiyi once escaped from the bubble that burst in Hainan's real estate market in 1993.Recalling that year, his excitement was palpable, and Tianshui blurted out: "This is the book." That book is the account book of the Haikou City Planning Bureau, and all the secrets of the real estate in Haikou City have been clearly seen by Pan Shiyi.

Vantone Six Gentlemen got their first pot of gold in Haikou Jiudu Villa.According to Pan Shiyi, after paying taxes on the income from selling houses, the net profit is one to two million yuan (Wang Gongquan said it is about 4 million yuan).For Pan Shiyi, this money was a huge shock and unspeakable excitement.The money was transferred to the account, and he thought: Can this money really be used?He deliberately withdrew some money the next morning, and bought bread to eat.The bread is biting into the mouth, the money is really useful.He also bought a copy of "Hainan Daily" for 20 cents each.

Sell ​​the property, get rich, sell more properties, and make more money.Pan Shiyi's fortune is a real event like a dream.At that time, Hainan was like a rootless island shaking in the sea, shaking so that everyone involved in the real estate market had such a dreamy feeling. The vast majority of people only close their eyes and dream, but forget to open their eyes to see the waking reality.The virus called greed plunges the infected into extraordinary mass fantasies and mass madness.Hainan is replicating the carnival scene of tulip bulb bubbles in the Netherlands in the 17th century. At that time, the housing market in Hainan was completely chaotic, and the absurd drama of "building madness" was staged.Judging from the policies formulated by the government, the cost of violations is very low. Many developers build tens of thousands of square meters of houses, and the money they sell is much more than the fines handed over to the government. It is a good deal.Those houses that violate the regulations cannot obtain real estate certificates.According to Mr. Hu, the owner of a company who has lived in Haikou for 20 years, there are still more than 3,000 houses in Haikou that cannot obtain real estate certificates.

At that time, Hainan was doing house transactions without real estate certificates. Later, one person did business with Pan Shiyi with a real estate certificate, which made Pan Shiyi suspicious. How chaotic was the housing market in Hainan at that time?When a developer engages in construction, there are at least ten people behind him to speculate in real estate.People who buy a house can't see the building, don't know where the house is, and can't see it.Sometimes a house is sold to several companies, and it is not until they arrive at the same time when the house is collected that they find out that they have been cheated. "You want to buy a house, how do you know who else the other party sold it to? You don't have a real estate certificate, unlike now you can go to the Housing Management Bureau to check."

"It's just like buying stocks. How many people who buy stocks know what companies that go public and raise funds do? Buying a house is the same. Like a friend of mine, I bought a house and sold it to him and made a profit; he was unbalanced and sold it again. The person who took over my friend will sell it, and the person who takes over will not sell it.” Sun Deqing, general manager of the Promotion Center of Hainan Provincial Tourism Association, told me that he came to Hainan at the end of 1987. A person who has personally experienced Hainan's real estate from madness to bubble burst.

Sun Deqing said: "How ridiculous was the real estate at that time? In 1993, I went to a farm in a county below Hainan and spent several million yuan to buy land. I didn't even know which piece of land it was. There was no formal procedure, just a receipt It was like this at the time, it was crazy. The government sometimes asked me for road repair fees, and sometimes for water and electricity infrastructure fees, but they never gave me land. Until the lawsuit was filed in 2005 and the judgment was issued in 2006. I lost more than two million yuan. , the pain can only be swallowed in the stomach.”

At the end of 1991, before Deng Xiaoping's southern tour, Sun Deqing bought a building at a price of 1,100 yuan per square meter. After the Spring Festival in 1992, it rose to 1,600 yuan.He does not sell. In June 1992, 2,000 yuan, still not for sale. At the end of 1992, it was sold for 4,000 yuan.Net profit of more than 2 million yuan, "I was very happy at that time, and the money could not fit in a sack."According to the National Bureau of Statistics, the per capita disposable income of Beijing residents in 1992 was 2556.12 yuan for the whole year. Sun Deqing said: "Of course I am happy when I suddenly have money. You are happy, and others earn more and are happier. You earn 10 million, others earn 30 million, 50 million; earn 30 million, 50 million Yes, there are still people above who have listed companies.”

The vast majority of people who entered this market did not stop until the property market crashed and could not escape. On June 23, 1993, Zhu Rongji, then Vice Premier of the State Council, delivered a speech, announcing the termination of listing of real estate companies and comprehensive control of bank funds entering the real estate industry; The first strong regulatory measures include strictly controlling the total scale of credit, raising deposit and loan interest rates and treasury bond interest rates, recovering illegal lending funds within a time limit, reducing infrastructure investment, and cleaning up all projects under construction.Money tightened in an all-round way, like dominoes, and the property market in Hainan collapsed. 4,200 yuan, 5,000 yuan, 4,000 yuan, 3,000 yuan, 2,000 yuan, and 800 yuan. Sun Deqing bought a building at 4,200 yuan per square meter, which fell from 5,000 yuan at the peak to 800 yuan. The price of three thousand yuan.Sun Deqing witnessed the sight of someone driving a Mercedes-Benz at the beginning of the year and riding a bicycle at the end of the year.The boss of Huiyu Company, one of the top real estate developers, went to the United States and filed for bankruptcy. He was not even allowed to take a taxi.The boss sold the building and bought a lot of land in the county below.Later, no one took care of it, and the house was not built. The government took the land back and filed a lawsuit.Lao Liu, the judge of the Hainan Provincial High Court who tried the case at that time, also tried Sun Deqing's lawsuit.He asked Sun Deqing: "What's the matter with Huiyu? There are so many people suing him, and he only needs to refute some requests. The lawsuit is untenable, and he will not respond to the lawsuit." Sun Deqing said: "Maybe He doesn't care about it at all, if there are too many lice, it doesn't itch, if there are too many debts, it doesn't worry, it doesn't matter."

The bursting of the bubble is unbearable.Some people ran away, some people died. Sun Deqing said: "Many people I know can't be found. Either he jumped off the building, or someone he couldn't face jumped off the building."After the bubble burst, the person who gave the money jumped off the building. The bubbles dissipated, leaving behind patches of unfinished buildings. At the South University Overpass on Haixiu Middle Road, Haikou City, there is an unfinished building called Hongtai Building, which has become a paradise for homeless people.A few shirtless homeless men cook and eat with firewood on the first floor.This is the commercial center area of ​​Haikou City.According to Baoan, the failure to keep up with the investment at the beginning was the main reason for the unfinished business.Later, the lawsuit on this building was fought for more than ten years, and it has not been settled, and the property rights are not clear.Many companies have asked about cooperation here, but they were all scared away by the complicated property rights relationship.

Mr. Chen, a taxi driver, came to Hainan in 1999, and there were unfinished buildings everywhere. He pointed to several newly built high-rise buildings around Hongtai Building and said: "These were unfinished buildings before, and they were only repaired in the past two years." He said that when he was driving a few years ago, there were one after another on the side of the road, all of which were unfinished buildings.Every night, it's dark. In just three years, more than 20,000 real estate companies have appeared on the island with a total population of only 6.558 million, and housing prices have increased by more than four times.After the bubble burst, there were more than 600 "unfinished buildings", 18,834 hectares of idle land and a backlog of 80 billion yuan of funds. The bad debts of the four major state-owned commercial banks alone were as high as 30 billion yuan. See "Hainan Real Estate Bubble Warning in the 1990s" , author Yang Binbin, published in "Finance" magazine. Pan Shiyi and the others are said to be the very few who got out in time.Sun Deqing told me that 90% of the people who flipped houses in Hainan lost money. Pan Shiyi said: "The sense of smell of a businessman is the same as that of ordinary people. As long as you have a sound intelligence, you will have it. The most important thing is that your sensitive intelligence may often be destroyed by greed. Obviously there are risks, and you think you can still make money. If you want to make more money, you want to continue to make money, just like stocks. The result is a mess. It’s not that a businessman’s sense of smell is much higher than that of ordinary people, but what is actually needed is common sense. Don’t let greed destroy common sense and basic wisdom. " In Hainan, Pan Shiyi and the others speculated on several houses. The last house was called "Lian Yilu".The seller said that he had the real estate certificate and the keys to each door.This is abnormal in the housing market in Hainan, where there is no real estate certificate and no keys.Pan Shiyi has done five or six business deals in Haikou, all of which have a certificate from the Land Bureau and a certificate from the Planning Bureau. "Your real estate certificate can be printed by any printing factory. It's too easy to fake the key." This made Pan Shiyi suspicious.He felt that he should go to the planning bureau to check the information. A young man from the Haikou Planning Bureau refused: "The information is confidential." He came out of the Planning Bureau and met a friend.A friend asked him what he was doing, and he replied, "I went to the planning bureau to check the information, but they wouldn't let me do it." The friend said, "You have been in Hainan for many years, and you still don't know the rules of Hainanese?" When Pan Shiyi said this, I raised my right hand, twisted my thumb and index finger: "Do you want money?" He laughed and said, "My friend told me that there is no need to pay. It's just five catties of oranges and two 555 cigarettes. This is the standard!" On a road in front of the Haikou Planning Bureau, he found that the roadsides were full of vendors selling oranges and 555 cigarettes.He packed five catties of oranges and two 555 cigarettes in two bags and returned them to the Planning Bureau and put them on the young man's table.He didn't know what to say, so he just smiled embarrassingly.The young man didn't even look at him, he put oranges and cigarettes into his drawer with a bang, and threw an account book on the table without looking up. That book is the accounting book of the Planning Bureau, and all the secrets of the real estate in Haikou City are clearly visible to Pan Shiyi.After checking the notebook, he found that the per capita planning area of ​​Haikou was already 55 square meters, while the average per capita in Beijing was only 7.3 square meters at that time, and the average per capita in the United States was only 20 to 30 square meters.After returning, Pan Shiyi felt: "This place can't last long, it has to be withdrawn." The scene where everyone eats seafood cannot last long. Later, Pan Shiyi meandered northward in search of new projects.It was not until 2001 that he returned to Hainan to develop the Blue Coast in Boao.However, Sun Deqing has been involved in lawsuits for more than ten years, and it was not until 2007 that all the lawsuits were basically resolved, and he turned to the tourism industry.He said: "I don't dare to touch real estate anymore, I'm afraid. Almost all real estate developers in Haikou are not what they used to be." There seemed to be an alarm bell in Pan Shiyi's mind.In Hainan in 1993, he heard the alarm bell; on June 30, 2009, at the auction of No. 15 Guangqu Road, Beijing, he heard the alarm bell again in his head. In 2009, "land kings" appeared frequently, and this, together with the flow of 4 trillion yuan and the phenomenon of enterprises' national advancement and private retreat, became a hot topic of public discussion. Pan Shiyi said: "Judging from the market atmosphere, there is more or less panic among real estate companies, which is why there are so many land kings. The land price of Shanghai Changfeng Land is 22,000 yuan per square meter. I have seen it, and I think it is worth 10,000 yuan at most. Yuan, the land next to it was acquired by Tianhong, and it is only 2,200 yuan per square meter. You said that there is no panic, which is not true. The panic mainly comes from the capital market, which makes listed companies and listed companies panic about the land. In order to acquire land , Vanke issued an additional 10 billion. A few days ago we analyzed the land reserves of more than a dozen companies, and Vanke is not too much. The largest reserve is 153 years, and there are so many companies with 30-year reserves. Vanke’s reserves are not bad The later. The more bubbles, the more panic, the more backward, the more panic. The most important thing is to have concentration. If you follow the trend and others create bubbles, you also create bubbles. You may be the one who goes bankrupt. The land is tens of It is unimaginable for other industries to acquire a piece of land for 100 million yuan. Any piece of land may determine the success or failure of the company, so we must be very careful.” Jin Huainan said: "After SOHO China was listed, we went to auction land and found that state-owned enterprises did not consider the cost of land auction, and you still couldn't get the land." Among the many auctions, the auction of Land No. 15, Guangqumen, Beijing on June 30, 2009 attracted much attention.Later, the frequent news of "Land King" bombarded people's eyeballs, and people's sensitive nerves closely tied to housing prices were also shaken and numb by the news of "Land King" every three days. The auction of Guangqumen No. 15 has attracted so much attention. For this land, Pan Shiyi made careful preparations and made detailed calculations on the total price, unit price, internal utilization rate, sales and other data.He felt that he had a lot of money in his pocket, and the bank was willing to lend them money at a low interest rate, and made a maximum budget of 3.5 billion yuan.Before the auction, he called Ren Zhiqiang: "Mr. Ren, let's go and have a look." The other party said: "Don't go, you won't be able to buy it if you go." Sinochem Franshion, eager to reserve land, is determined to win this time. In his eyes, Pan Shiyi is not a person who is determined to win. "Pan Shiyi does not have the ambition to achieve anything. The ambition is to do it at all costs, just like R&F did with No. 10. I think a good businessman will not do things that everyone thinks is unreasonable. That is not a good businessman. " On June 30, 2009, the trading hall on the second floor of the Beijing Land Consolidation and Reserve Center. SouFun reporter Huang Guanggai recalled that there were so many media that day, he waited outside the door at 1:30 p.m. to grab a seat.After entering the arena, I saw that the hall, 10 meters long and 8 meters wide, was crowded with more than 200 people.Under normal circumstances, people are not allowed to stand beside the notary office and the auctioneer, but there were too many people on that day, even 10 security guards could not maintain order, and all the places where people could stand were full of people.At that time, Influenza A was still relatively serious, and the security guards wore white masks, and people had to take their temperatures before entering the venue. Although there is air conditioning, there are too many people and it doesn't work.In the steamy space, everyone was sweating profusely. After three o'clock in the afternoon, the auction began. There was no foreign company present. Of the 11 bidders, except for SOHO China, the remaining 10 are all state-owned enterprises.CITIC sits in front of Pan Shiyi, Sino-Ocean sits on the left, Vanke sits on the right, Poly and Sinochem sit behind... The representatives of these 10 state-owned enterprises, apart from Sinochem Fangxing, knew Pan Shiyi from the other nine.When he first entered, he shook hands with the representative of Sinochem Franshion and asked the other party which company it was from?The other party replied: "Small company!" Pan Shiyi said: "After watching the scene, you can know that China's economy is in a downturn, and private enterprises have withdrawn from the front line. In all walks of life, it is easy for state-owned enterprises to get money. Sinochem, COFCO, Poly, CITIC...the interest rates are very low. Small businesses can’t get money, look at the bonds issued by Country Garden, the interest rate is 12%. We have a good balance sheet, and the bank is willing to lend us at a low interest rate. The loan just now is 1.6 billion, with an interest rate of less than 3%. "Foreign capital doesn't understand. Private enterprises basically don't have such preferential treatment. We can be regarded as an alternative. Under the current situation, the entire market structure has shown a trend of state advancement and private retreat. The bosses of state-owned enterprises generally have a relatively short working time, three to five years. He has been in office for a year, and he is the boss of a listed company, so he should first increase the stock price, which is related to the size of the land reserve. As for the future, he can’t control it anymore.” After the auction figure rose to 3.3 billion, Yan Yan, President of SOHO China, began to raise his placards.Later, only SOHO China, Poly, and Sinochem Franshion were left to compete. Representatives of SOHO China and Poly would press the calculator first before raising their placards, but the representative of Sinochem Franshion didn't think about it at all, and he would raise them as soon as others raised them. Huang Guanggai said that Pan Shiyi has always maintained his signature smile.When SOHO just raised 3.42 billion yuan, the representative of Sinochem Franshion immediately asked for 3.5 billion yuan.Pan Shiyi turned his head and smiled at the sign holder of Sinochem behind him. When it reached 3.8 billion yuan, Pan Shiyi found that he had no calculation data.Yan Yan asked him if he would still try.Pan Shiyi quietly signaled, let's do it again. "When it was finally raised to 3.95 billion, I said forget it, why are you making this joke with him. It is a big joke to add 100 million to him once. The floor price is already 16,000 yuan per square meter. What if he If you don’t follow me, then I will be trapped, and I will lose a lot.” Pan Shiyi said. In early September 2009, Pan Shiyi won the land in the core area of ​​Wangjing, a 200-meter-high landmark building, with a floor price of only 10,000 yuan per square meter.He said: "At that time, I was very guilty. I saw (Sinochem) that they were very aggressive, and the three of them raised their cards without discussing. Later I realized that no matter how much I raised, he would suppress me. " The last time SOHO China raised its placard was 3.95 billion yuan.After the auctioneer called three times, the Poly representative immediately called for a price of 3.99 billion yuan.Before the auctioneer had finished speaking, the representative of Sinochem Franshion immediately raised 4 billion yuan.There was a commotion at the scene, the sound of "Oh, oh, ah..." and applause came and went, which lasted for nearly half a minute.At this time, Pan Shiyi clapped his palms and turned his head to look at the representative of Sinochem again. The auction was completed, with a turnover of 4.06 billion yuan! Pan Shiyi turned around and raised his thumb and said to the representative of Sinochem Fangxing: "You are awesome!"