Crossing the Hong Kong River: Empire of Wealth

Chapter 201 Bank Run
On Friday morning, Xinjian Real Estate and Hutchison Real Estate successively transferred enough funds into the account of the Land Planning Department, which also marked that the land was officially owned by the two companies.

In the afternoon of that day, the news that Xinjian Bank, Dao Heng Bank, and Bank of East Asia loaned most of their funds to Xinjian Properties, Hutchison Properties, and Wheelock Land spread like wildfire.

Its core meaning is that the three major banks do not have much liquidity at all, and the deposits of depositors are basically loaned to several major real estate groups.

And there is a lot of information to support it, such as the large-scale investment of Xinjian Real Estate, the start of construction of several major squares of Wheelock, and the construction of a large number of projects by Hutchison Real Estate.

One stone can be said to have stirred up a thousand waves, even though many citizens are at work today, there are long queues in various business offices of the three major banks, countless reporters are conducting live interviews, and ATV and TVB even broadcast live.

Inside the Wheelock Building, after Li Jianhui received the report, he didn't bother to find out who was targeting the Xin Jian faction and its allies at this time.

He immediately called Li Zaiwei and asked him to immediately contact Citigroup, Fuji, First Quanye Bank, Sumitomo, Bank of China, HSBC, Standard Chartered and other banks to exchange Hong Kong dollars worth one billion US dollars back to deal with this crisis.

At the same time, Li Jianhui told Feng Jingyao and Li Guobao not to worry, as long as they survive today, Huihong Group will deposit two billion Hong Kong dollars in each of their banks tomorrow morning.

With Li Jianhui's promise, Feng Jingyao and Li Guobao were relieved a lot. After arranging for the high-level executives to transfer reserve funds to support major outlets at any time, they personally attended the bank's external press conference.

At the meeting, the two major banks announced their loan status. Whether it is Dao Heng Bank or Bank of East Asia, Xinjian companies currently have zero loans.

Regarding the previous loan of the Xinjian Department, as early as the end of January, the Xinjian Department had already repaid all of them.

Regardless of Li Guobao or Feng Jingyao, they both promised at the press conference that as long as it is working hours, the business outlets will not be closed, and at the same time ensure that the funds of each business outlet are sufficient.

As for Xinjian Bank, they were not moved by it at all, and Li Jianhui and Xinjian's top management did not stand up and hold any press conference.

Li Zaiwei was so fast that even HSBC and Standard Chartered did not delay the exchange time. Before the major banks got off work that afternoon, more than 51 billion Hong Kong dollars were exchanged.

At first, Li Jianhui thought that if HSBC and Standard Chartered made things difficult for Xin Jian, he would drag them into the water to see if he could break the monopoly of the two banks on the right to issue banknotes in Hong Kong dollars.

I didn't expect these two banks to be so straightforward, even faster than the other big banks, and they didn't give the Xinjian Department a chance to attack them.

Apart from HSBC and Standard Chartered this time, Li Jianhui looked for banks with fairly good relations, because he directly approached the person in charge of their Xiangjiang, and didn't talk about how long it would take to review. As long as the US dollars pass by, they can be exchanged for Hong Kong dollars.

HSBC and Standard Chartered are the issuers of Hong Kong dollars. If the two major banks cannot exchange U.S. dollars for Hong Kong dollars, then there will be a big problem. Once the news gets out, I am afraid that it will immediately cause a financial turmoil.

When the bank was about to close in the afternoon, the Xinjian Department issued an announcement through Jiayi Group. In order for the general public to get back their deposits from Xinjian Bank, Xinjian Bank extended its business hours to nine o'clock in the evening.

This news not only stunned the citizens, but even the bigwigs in the business world felt confused. Those who opened the bank were most afraid of a run, and the vast majority of bank failures were also due to runs.

The Xinjian department is so confident in the face of a run on people, they don't need to go to work normally, and they even extend their working hours. This is the first time they have encountered it in decades.

Before they came to their senses, Dao Heng Bank and Bank of East Asia also issued an announcement at the same time that the business hours of Xiangjiang outlets were extended to : p.m. today.

In a box of the Peninsula Hotel, Shen Bi said to Shi Huaiya, Niu Bijian, Chen Zengxi, Li Chaoren and others: "You should try your best not to let this matter involve you, the Xinjian department is simply There is no shortage of funds. This afternoon, only million US dollars of Hong Kong dollars were exchanged at our HSBC.

I also asked about Standard Chartered, which also exchanged million U.S. dollars in Hong Kong dollars. According to HSBC’s investigation, several senior executives from Xinjian visited Bank of China, Fuji, Citigroup, Sumitomo and other banks at the same time this afternoon. Obviously It is also in exchange for Hong Kong dollars.

Even if these banks are half as small as ours, it will be several billion Hong Kong dollars. It is impossible to rely on this to make Xin Jianyi collapse. "

The faces of the few people present were quite bad, which was completely different from what they had imagined.

Newbijian said: "Shen Bi, are you sure those dollars are real? Where did they get so much money?"

This kind of question is also what other people present want to ask. Where did the Xinjian Department get so much money? I thought I had a better understanding of the situation of the Xinjian Department. I didn't expect that the so-called understanding before was so ridiculous.

As far as the financial strength shown by the Xinjian Department is concerned, what do they use to compete with it? The most important thing is that they have no idea how powerful the Xinjian Department is.

"At present, I don't know how much money the Xinjian Department has, because Xinjian Bank is not a listed bank, and it is difficult for us to know how much foreign exchange they have.

However, I have already contacted the Financial Management Authority. They will conduct an inspection of the major banks in the next two days. By then, they should be able to understand the specific situation of Xinjian Bank's cash flow and foreign exchange reserves. "

After the MacLehose era opened up Xiangjiang Finance and allowed the free entry and exit of foreign exchange, under normal circumstances, it was difficult for the Monetary Authority to grasp the specific foreign exchange reserves of each bank, especially those banks that were not listed.

Although HSBC and Standard Chartered have the right to issue banknotes, they cannot print banknotes casually. This aspect is strictly supervised by the Monetary Authority.

Xinjian has a lot of industries, especially Huihong Group's game products have been selling well in the past two years. They don't know how much foreign exchange they have accumulated for Xinjian Bank.

This is also the advantage of not having a listed company. They do not need to announce their company's financials every quarter.

Chen Zengxi said in a deep voice: "Now let's discuss what to do next, the Xinjian Department still has such a huge amount of funds in hand, it is bound to accelerate the expansion of the industry in Xiangjiang.

Once the Xinjian Department of Shatian is also developed like Tianshui City in Tseung Kwan O, we don't want to increase the price. This will not only affect our profit, but also deal a heavy blow to our stock market. "

There is no good way for everyone in this regard, or they will pay the same price as Xinjian Real Estate, or they will wait for the development of the Xinjian Department.

As for the follow-up plan that was designed before, the unfavorable people directly chose to give up. They need to understand the specific situation of Xinjian Bank before making a decision.

(End of this chapter)