In Hong Kong, we build a global business empire

Chapter 23: Making a New Plan

Lin Haoran examined the stocks he had on hand and estimated the capital flow over the past month.

During this month, he not only invested HK$150 million of his own money into the stock market, but also raised HK$5000 million through loans.

Except for taking out 50 Hong Kong dollars as tea money, the remaining 4950 million Hong Kong dollars has been deposited into the bank account linked to the stock account.

Therefore, his total investment in the stock market was actually HK$5100 million.

Specifically, in the past month, he successfully purchased 645 million shares of Qingzhou Yingni. As the stock price rose to an average of HK$4.96 per share, this investment has cost about HK$3199 million.

As for Wharf Holdings' shares, although it only started buying them five days ago, it has already purchased 38.79 shares at an average cost of HK$23.05 per share, with a total expenditure of approximately HK$894 million.

Adding up the investment amounts of these two stocks, the total expenditure to date has reached approximately HK$4093 million.

This means that the actual remaining funds available to Lin Haoran at present are approximately HK$1007 million.

This mere 10 million Hong Kong dollars is obviously not enough according to his subsequent grand plans.

After all, his investment blueprint is not limited to continuing to increase his holdings in Green Island Cement, but also aims to control more shares of Hutchison Whampoa.

Considering that the company would need to rely on Wharf Holdings' stock transactions to earn enough price difference to repay the huge loan, the existing amount of funds would be insufficient.

Therefore, how to make efficient use of every penny will be an issue that Lin Haoran must carefully consider next.

How to raise more funds?

Lin Haoran quickly came up with an idea.

His eyes were focused on the Qingzhou Yingni shares in his hands.

Recalling the previous agreement with Yang Changdao, he promised in the agreement that after acquiring a sufficient number of shares, he would mortgage shares worth approximately HK$20 million to Yu Min Financial Company.

However, the agreement set a six-month deadline, which meant he had plenty of time to operate.

Given that the six-month deadline was still a long way off, Lin Haoran was not in a hurry to immediately mortgage his stocks to Yumin Financial Company.

Instead, he saw an opportunity to use the shares as leverage to further increase the loan amount and thereby absorb more shares.

According to the original body's understanding of the Hong Kong stock market, the current Hong Kong stock market does not have the model of later generations where one can rely on the shareholdings in hand to obtain leveraged financing in the stock market.

This model should only appear in the late 1980s.

Since the stock market itself does not provide direct leveraged investment opportunities, Lin Haoran decided to create the leverage effect himself.

He plans to use the stocks he holds as collateral and obtain more funds by raising funds from financial institutions or individual investors to expand the scale of his stock investment.

In this way, he can indirectly achieve the effect of leveraged investment, that is, use less of his own capital to control larger assets.

For others, this strategy comes with certain risks.

But Lin Haoran, who knew the history of Hutchison Whampoa's share purchase war, knew that there was no risk at all.

In a huge market like Wharf Holdings, the tens of millions of Hong Kong dollars he was about to invest were just a drop in the ocean and could not shake its solid market position and overall trend. Therefore, he decided not to rush to fulfill the agreement with Yumin Finance Company, but to take advantage of the stock price fluctuations and potential growth during this period to maximize the use of resources in his hands and lay a solid foundation for future stock market layout.

Since Wharf's shares are about to be sold on a case-by-case basis in the coming months, they are clearly not suitable as collateral for applying for a loan.

Based on this actual situation, Lin Haoran could only use Qingzhou Yingni’s shares as collateral.

At present, the market value of the Qingzhou Cement shares he holds has exceeded 30 million Hong Kong dollars. With these high-quality stocks as collateral, he expects to be able to easily obtain a loan of more than 30 million Hong Kong dollars from financial institutions.

Once this strategy was formulated, Lin Haoran's concerns disappeared.

He plans to push forward his investment plans in both Wharf Holdings and Ching Chau Cement shares at the same time, as the two will complement each other and jointly promote the growth of his wealth.

Lin Haoran is very confident that through careful planning and steady operations, he can achieve ideal returns on both stocks.

Putting down the notebook in his hand, Lin Haoran noticed that Su Zhixue had not left yet, so he said gently: "Zhixue, you go back first. Your son is in a critical period of recovery. With more people at home to take care of him, he will recover faster. Go back early and it will be better for the two of you to accompany him together."

Recalling that two weeks ago, Su Zhixue's son underwent surgery, and the operation went very smoothly. He then embarked on a meticulous recovery journey.

In view of this, Lin Haoran was very understanding during this period and specially advised him to leave first after the stock market closed at 4 pm every day so that he could devote himself to taking care of his family.

Anyway, since he has not yet formally established a company and has not yet established strict company rules and regulations, there is no need to be too rigid and inflexible in management.

"Mr. Lin, I'll go back first. Thank you." Su Zhixue said goodbye to Lin Haoran with gratitude.

After Su Zhixue left, Lin Haoran started thinking in the office.

Next, if he wanted to apply for a loan based on the Qingzhou Yingni shares in his hands, it would obviously not be possible to do so from Yumin Financial Company.

So, which bank or financial institution is best to get a loan from?
There is no doubt that the largest financial institution in Hong Kong at present is Hui Feng Bank.

If you want to gain a foothold in Hong Kong, you must establish good relations with them.

Moreover, it will be more convenient to obtain a loan from Huifeng Bank as they have stronger cooperative resources.

Of course, their loan rules will be more rigorous and complete. It is impossible for HSBC to lend 50 million Hong Kong dollars with a mortgage of more than 10 million yuan, as done by Yumin Financial Company.

In addition, there is another consideration, that is, the stock that Lin Haoran is currently paying attention to, Qingzhou Yingni, is also a British-owned company.

If he went directly to HSBC to apply for a loan to increase his stake in Qingzhou Cement, his act of becoming its major shareholder might be leaked, bringing unnecessary risks.

At present, Lin Haoran has no plans to publicly announce the news that he has become a major shareholder of Qingzhou Yingni. He chooses to keep a low profile to avoid attracting too much attention and unnecessary fluctuations in the market. This strategy will help him to advance his investment plans more steadily and announce them at an appropriate time in the future.

However, if he could personally negotiate with the senior management of HSBC, especially the boss Shen Bi, he might not have to worry too much.

Senior executives of Shen Bi's level usually keep business secrets strictly. For a small company like Qingzhou Yingni, they are unlikely to damage their professional ethics and reputation for such information.

What is uncertain is whether this loan of 30 million Hong Kong dollars can attract Shen Bi’s attention?

Thanks to the book friend 20220521060221066 for the reward,
New book, please read it, please read it, please read it~
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(End of this chapter)