During the Christmas season, Charles brought Gao Yuanyuan and Lin Chi-ling to Hong Kong. While it was a vacation, Charles primarily intended to meet with Lily Ying.
Hong Kong was a shopping paradise, and Gao Yuanyuan and Lin Chi-ling freely enjoyed the pleasure of shopping.
Charles, however, was in Lily Ying's office, feeling a mix of joy and frustration. He sighed, "So this is what it feels like when money turns into strings of numbers!"
The stock price of Freddie Mac had already fallen to $20 per share, and it wouldn't be long before the US government would have to step in.
"You'll never be able to spend all your assets now. Your worry should be how to spend it," Lily Ying laughed.
"Have you started buying US Treasury bonds?" Charles turned his head and asked.
Lily Ying shook her head, "Not yet. I think there's still room for them to drop!"
"When $100 Treasury bonds fall to around $30 to $35, it'll be enough," Charles was a greedy person too.
"By the way, soon I'll need a large amount of British pounds. Be prepared!" he added.
"Arsenal Club?" Lily Ying asked.
Charles nodded, "Yes, after Christmas, there should be some news from the UK."
"No problem. HSBC Bank, right? I'll talk to them," Lily Ying had no issue with it.
"When do we sell the Freddie Mac stocks?" Lily Ying inquired again.
"Around February next year. By then, each share won't even be worth $10. A global economic crisis always makes some folks filthy rich," Charles didn't see a need to wait until each share was down to just a few cents.
"No surprise, the financial meltdown will sweep global markets next year. It's not just finance and real estate; it will affect real industries, energy, and gold. Have you thought about how to spend the money?" Lily Ying continued.
Charles smiled, "I'll invest part of it in real estate industry, and I'll buy stocks when the financial storm hits hardest!"
"Besides capital rewards, is there anything else you want?" Charles asked Lily Ying.
"Red Fruit Entertainment. Give me 30% of Red Fruit Entertainment's shares. How about that? I have a good feeling about China's movie industry," Lily Ying smiled.
"That's it? That's not worth much. I own half the shares, I can give it all to you, is that okay?" Charles wasn't one to care about such things.
Lily Ying glanced at Charles, "If you don't own part of Red Fruit Entertainment, why would I want it? In the entertainment industry, your insights are the most valuable. Whenever you're free and see a good movie, you can develop it!" Lily Ying explained.
Charles smiled, "I see. Then I'll also give you 30% of East Asia International. The Japanese and Korean entertainment markets aren't small, although we don't have Korean business yet."
Lily Ying nodded, "Fine, I will take care of the East Asia market. I understand Japan and Korea."
"Don't worry, my Capet Pictures will support you when the time comes," Charles intended to have fun with East Asia International, whose most significant asset was Red Fruit Entertainment.
...
The next morning, Charles took Lin Chi-ling and Gao Yuanyuan out to sea, enjoying the weather that was comfortably in the twenties without a hint of cold.
In the afternoon, Charles left Lin Chi-ling and Gao Yuanyuan and went to Capet International's Asia-Pacific headquarters in Hong Kong.
"Among the world's leading film nations, we have Capet International distribution offices everywhere except Russia," said Xu Xiaoling with a smile. "We've expanded very quickly these past years!"
"Your work in the Asia-Pacific region isn't bad either. Although the Chinese market is small, including Japan, Korea, and Southeast Asia, it's quite large!" Charles complimented Xu Xiaoling's work.
"The Singapore office handles Southeast Asia distribution, and Masami Takahashi oversees Japan," Xu Xiaoling glanced northward. "We need to put more effort into the Korean market!"
"Korea? Didn't they change the domestic film quota system under U.S. government pressure last year?" Charles was surprised.
"The quota for domestic Korean films was reduced from 146 days to 73 days!"
Korea previously required theaters to show domestic films for 146 days a year. Under pressure from U.S. trade, the quota was halved last year.
"That's right. Korean films hit a rough patch last year and this year. Their cultural exports have always been significant, but the local film market share fell below 50%," Xu Xiaoling explained. "Attendance has dropped a lot. Though the overall market grew slightly, it was due to higher ticket prices and the impact of Hollywood films. With the economic crisis looming, Korean film production might continue to decrease!"
Charles understood. "So, you mean we should seize the opportunity to enter the Korean domestic film market?"
Xu Xiaoling nodded. "You know, Korea's cultural exports in film, TV, music, games, and comics are a big chunk of their economy, about 5-6%. Especially in Asia, Korean cultural exports are very strong!"
Charles nodded and continued, "In recent years, Korea has indeed produced some influential films. Shiri, Memories of Murder, Oldboy, Sympathy for Lady Vengeance, and My Sassy Girl. Regarding investing in Korean domestic films, do you have any thoughts?"
Xu Xiaoling considered for a moment. "I think we should follow Hollywood's usual strategy: collaborate with experienced and capable production companies or directors. But, this is just a preliminary idea.
Our most important task remains ensuring our own films' successful distribution in Korea.
Currently, no major Hollywood distributors have invested in Korean domestic films. The local market is very resistant to outsiders."
Charles drummed his fingers on the table. "The Korean entertainment market isn't small, but as you said, the local competition is fierce. In movies, TV, music, and more, Korean companies do a good job. Last year had The Host, and this year Dragon Wars was a big production. They've got the basics of a film industry. Keep an eye on it."
Xu Xiaoling nodded. "The Korean market is about 1 billion dollars a year, so there aren't large-scale investments. Their actors lack international influence. Still, I don't have a specific plan. If opportunities arise, I'll pay attention. We're mainly focused on Hollywood productions for now."
Charles nodded. Maybe he should visit Korea himself and use East Asia International as a foothold?
*****
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