In Hong Kong, we build a global business empire

Chapter 629: Bank of East Asia is half the size of Huifeng Bank
Naturally, the boss Lin Haoran was very satisfied with the effect of killing the chicken to scare the monkey.

Originally, the reason why he targeted Haitian Doors and Windows Company was to give a warning to other companies that depended on his company for survival.

Now, the result of things is just as he expected. The incident of Haitian Doors and Windows Company has indeed served as a strong deterrent to everyone.

Those companies that were originally waiting and hoping for the best, after seeing the fate of Haitian Doors and Windows Company, have restrained their thoughts and no longer dared to do anything that would harm the interests of companies such as Hong Kong Land Group and Hong Kong Electric Group.

As for the role played by Li Jiacheng in this business war, Lin Haoran did not feel much anger.

After all, he has always been very clear in his mind that Li Jiacheng and he have never been on the same path. They have different ideas and styles of doing things, like two parallel lines that will never intersect.

If he could have traveled to this era a few years earlier, when the situation of Hutchison Whampoa was still unclear and various forces had not yet fully infiltrated, he would have made early plans and conspired carefully to incorporate Hutchison Whampoa into his own business empire.

How could it be possible for Li Jiacheng to come from behind and stir up trouble?
On the other hand, as Galaxy Securities' plan to short-sell Bank of East Asia was implemented, the borrowed shares of Bank of East Asia had been sold out. The next step would naturally be for those companies that relied on companies such as the Hong Kong Land Development and the Hong Kong Electric Group to transfer their financial business from other foreign banks to the Bank of East Asia.

As for those companies that rely on Lin Haoran's companies such as the Hong Kong Land Group and the Hong Kong Electric Group for their livelihood, they dared not delay in the slightest after the incident with the Haitian Doors and Windows Company, and they all pushed forward the transfer of their financial businesses at the fastest speed.

The Haitian Doors and Windows incident was enough to let the bosses of these companies know how serious the consequences would be if they did not cooperate.

In fact, the bosses of these companies not only transferred their company's financial business to the Bank of East Asia, but also directly stated that their own family's deposits were also transferred from other foreign banks to the Bank of East Asia.

This is another great news for Bank of East Asia.

After all, apart from the company's assets, the personal and family assets of most of these bosses also amount to considerable wealth.

When they decided to transfer their own deposits to Bank of East Asia, this undoubtedly brought a huge inflow of funds to Bank of East Asia, greatly enriching the bank's cash reserves.

As a result, in just a few days, as the financial business of these companies and bosses shifted from other foreign banks to Bank of East Asia, Bank of East Asia's deposit business, capital turnover business, credit business and various intermediary businesses all showed explosive growth.

In terms of deposit business, the influx of a large amount of new funds has caused the deposit scale of Bank of East Asia to increase rapidly.

The originally spacious vault of Bank of East Asia now seems a bit "crowded" due to the large amount of cash and valuable assets stored. The bank has to urgently plan to expand the vault space and upgrade the security system to ensure the safety of funds.

In terms of capital turnover business, since the funds transactions for these companies' daily business activities are mostly conducted through Bank of East Asia, the bank's capital circulation efficiency has been greatly improved.

In the field of credit business alone, Bank of East Asia has ushered in unprecedented development opportunities.

As these companies establish in-depth cooperation with Bank of East Asia, the bank has a deeper understanding of their operating conditions, financial status and credit status.

Based on this information advantage, Bank of East Asia is able to assess credit risks more accurately and provide these companies with tailored credit products and services.

Some companies that originally had difficulty in obtaining sufficient credit support from other banks have obtained reasonable loan amounts and preferential loan interest rates from Bank of East Asia, solving the funding bottleneck problem in their development.

At the same time, the expansion of credit business has also brought rich interest income to Bank of East Asia, further enhancing the bank's profitability.

At present, the situation of Bank of East Asia is still unstable, so Lin Haoran is not in a hurry to mobilize Bank of East Asia’s funds to invest in Japan.

Therefore, it is still necessary for Bank of East Asia to continue its own loan business, especially in the context of a shrinking mortgage market.

Other types of intermediary businesses also reaped great rewards.

Bank of East Asia has already made adequate preparations to face this huge increase in business volume.

Even so, faced with such rapid and large-scale business growth, Bank of East Asia still feels certain pressure and challenges.

The load on the business processing system has increased dramatically. Although it has been upgraded and optimized before, small problems continue to arise under the impact of massive business.

There are also tensions in human resources.

The continuous influx of new business has significantly increased the workload of various positions, and it has become the norm for employees to work overtime.

Although a lot of employees were recruited in advance, the time was still too short. Many employees had just started training when they began the huge business processing work.

As a result, Bank of East Asia targeted employees of other banks, especially those of Huifeng Bank and Hengsheng Bank.

Dig, dig hard, and try to recruit more of their elite employees!

Afraid of undercover agents?

It can't be hidden in front of Lin Haoran's golden finger that can see loyalty!
For newly recruited employees, a new employee meeting is held every once in a while, and Lin Haoran will appear on the scene. On the one hand, he can encourage everyone, and on the other hand, he can use the golden finger to see if there is any traitor, killing two birds with one stone.

Previously, Huifeng Bank secretly poached people from Bank of East Asia, and this time Bank of East Asia secretly poached their people. It can be said that you do one thing and I do another.

The effect of this transfer of corporate financial business can be said to be more immediate and far-reaching than the previous effect of companies such as Hutchison Whampoa Group and Hong Kong Electric Group transferring their financial business to Bank of East Asia.

Moreover, these companies that can rely on companies such as the Jardine Matheson Group to survive can basically be said to be very high-quality companies, and there are very few risky customers.

Like the previous Haitian Doors and Windows Company, if it were not for the "report gate" incident, it would also be a very high-quality company with assets of tens of millions of Hong Kong dollars.

Among the cooperative companies of the Swire Group, Haitian Doors and Windows Company can only be regarded as a mid- to lower-stream enterprise at best.

This gives us a glimpse into the overall high quality of these businesses associated with companies such as the Hong Kong Land Group.

Now that they have collectively transferred their financial businesses to Bank of East Asia, what has brought about is not only a surge in business volume, but also a significant boost to the bank's reputation and industry status.

At this moment, the so-called mandatory "choose one of two" policy created by Huifeng Bank has become a huge joke. Not only has it failed to successfully prevent the market expansion of Bank of East Asia, but it has allowed its market share to continue to increase. Today, it has the strength to endanger Huifeng Bank.

As for other banks in Hong Kong, the business volumes have naturally declined to varying degrees due to the sudden large-scale transfer of funds and financial businesses of these enterprises and their bosses.

In particular, the three largest foreign banks in Hong Kong, namely, Hong Kong International Financial Holdings Limited, Hang Seng Bank and Standard Chartered Bank, were significantly affected.

Huifeng Bank was the first to be hit. Its share price continued to fall after the news of business loss spread. Shareholders were worried and questioned the management's ability to deal with the crisis.

However, Huifeng Bank could not come up with a good way to prevent the decline in business volume.

Previously, with the support of Huifeng Bank and the price increase, the market value of Huifeng Bank once rose to a terrifying HK$250 billion. Although the price increase was no longer carried out afterwards, the stock price was still able to rise slowly.

However, as Bank of East Asia's market share skyrocketed and the inside story of the Haitian Doors and Windows Company incident was gradually revealed by some media, the fact that companies affiliated with the Hong Kong Land Group and others transferred their corporate financial businesses to Bank of East Asia could no longer be concealed.

As a result, while Huifeng Bank's market share has been declining, its stock price has also been falling in the past few days, and the extent of the decline in stock price is unprecedented.

In just five days from the 2nd to the 7th, the market value of Huifeng Bank dropped from more than billion Hong Kong dollars to more than billion Hong Kong dollars, a drop of nearly billion Hong Kong dollars, shocking the whole of Hong Kong.

This is the case when Huifeng Bank is trying its best to protect the market. At the same time, the stock market is closed on April 4th as it is Saturday and Sunday. Otherwise, the market value of Huifeng Bank would have fallen even more!

Everyone knows that if Huifeng Bank still does not perform well in the future, it will be difficult to maintain its current stock price.

Many people have predicted that the share price of Huifeng Bank will continue to fall tomorrow.

If the Hong Kong Land Group had not been privatized and delisted from the stock market after being acquired by Lin Haoran, its status as the largest stock in Hong Kong might have been replaced by the Hong Kong Land Group.

Many people did not expect that Hong Kong's largest stock company would perform so poorly in the face of Lin Haoran's counterattack.

As the dominant force in Hong Kong's financial world, Huifeng Bank has always been a domineering force in Hong Kong.

Today, it has been defeated by the Bank of East Asia. This huge gap has not only made the shareholders of Huifeng Bank feel uneasy, but also caused an uproar in the entire Hong Kong financial community.

The once invincible overlord now appears so vulnerable under the fierce attack of Bank of East Asia. This undoubtedly sends a strong signal to the market: the landscape of Hong Kong's financial sector is quietly changing.

Inside Huifeng Bank, the management has been plunged into unprecedented chaos and anxiety in the past few days.

Under normal circumstances, when faced with a hostile force that cannot be suppressed, Huifeng Bank will definitely call on the Governor's Office for support. The Governor's Office will put pressure on its competitors and even directly use administrative means to intervene in the market.

In the past, Huifeng Bank relied on such means to win every battle and eventually became the number one overlord in Hong Kong's financial and even business circles.

But this time, they could no longer use the Governor's Office to interfere with the behavior of the Bank of East Asia, because the Governor's Office had already issued a statement to the whole of Hong Kong that it would not interfere in the competition between the two parties.

If the Governor's Office continues to fall, it will completely lose its credibility and become a laughing stock among the Hong Kong business community and the public for abusing power for personal gain and favoring one side.

The Governor's Office and Murray MacLehose naturally understood that in this era of rapid information flow and the gradual awakening of people's democratic consciousness, once a decision was made that violated fairness and justice, it would inevitably cause an uproar, which would not only affect the foundation of their rule in Hong Kong, but would also be criticized by the international community.

Especially now is a sensitive period when the UK and the mainland are negotiating the future of Hong Kong. The focus of international public opinion is already on Hong Kong, and any disturbance may be infinitely magnified.

If the Governor's Office favored the Bank of East Asia at this time, it would undoubtedly give others a handle to question the fairness and transparency of Britain's governance in Hong Kong, and thus have an unpredictable impact on the negotiation situation. At this moment, Shen Bi didn't know why Lin Haoran had proposed to Governor MacLehose that the Governor's Office could no longer interfere in the competition between the Bank of East Asia and the Bank of East Asia.

This was all Lin Haoran's plan, and it was definitely made in advance for today.

Although he understood that all this was Lin Haoran's plan, Shen Bi was still filled with resentment and unwillingness.

He knew very well that this time Huifeng Bank was already at a disadvantage in the competition and the situation was extremely unfavorable.

The atmosphere inside Huifeng Bank was so depressing that it made people feel breathless.

The managers sat around the oval conference table in the meeting room, all with serious expressions and furrowed brows.

Shen Bi sat in the main seat, his eyes revealing anxiety and helplessness.

"Mr. Shen Bi, everyone. Our bank's deposit funds and business volume have continued to decline in the past few days. Especially the deposit funds, which are now becoming increasingly tight. If this continues, even if our Huifeng Bank is not at risk of collapse, it will lose face in the Hong Kong financial market and become a laughing stock in the industry." A senior executive stood up from his chair and reported.

The words of this senior executive immediately made the already solemn atmosphere in the conference room even heavier, as if a huge rock was pressing on everyone's heart.

Another senior executive couldn't help but slam the table and said excitedly: "This Bank of East Asia is simply too arrogant. Lin Haoran must have planned it all along and pushed us into this desperate situation step by step. We absolutely cannot sit there and wait for death. We must think of a way to fight back!"

In the past few days, they have actually held countless meetings, but each time, no feasible solution was found, and the meetings ended in vain amid arguments and frustration. At this moment, the words of this senior executive once again ignited the long-suppressed anger in everyone's hearts, and the conference room suddenly exploded.

"Fight back? How to fight back? Now that the Governor's Office has made it clear that it will not interfere, what other means can we use?" A slightly tired senior executive spread his hands helplessly, his tone full of frustration.

"Are we just going to watch Bank of East Asia bully us? Our Bank of East Asia has been in Hong Kong for so many years, and we have never suffered such humiliation!" Another young and energetic executive blushed and slammed his fist on the table.

Shen Bi looked at the chaotic scene in front of him and felt annoyed.

He knocked on the table hard and said loudly, "Be quiet! Can quarreling solve the problem? What we need now is to think calmly and find a solution."

In fact, he is the most annoying person in this meeting room.

After all, he is the current head of Huifeng Bank.

If there is any mishap at Huifeng Bank, he will be the first to bear the brunt of the responsibility.

Just like the boss of Jardine Matheson who was stubborn and stubborn, after losing the competition between Jardine Matheson and Lin Haoran, he was directly dismissed from his post.

The same is definitely true for Huifeng Bank.

If Huifeng Bank fails in the competition with Bank of East Asia, he, as the head of Huifeng Bank, will probably not be able to escape the fate of being held accountable and dismissed.

Thinking of this, Shen Bi felt a chill on his back and beads of sweat appeared on his forehead.

In the past, he had indeed made countless contributions to Hui Feng Bank. With his keen market insight and decisive decision-making ability, he led Hui Feng Bank to overcome difficulties in the Hong Kong financial industry and became the dominant bank.

But now, facing the "storm" carefully planned by Lin Haoran and Bank of East Asia, he feels unprecedented powerlessness and frustration.

He saw that he would be able to retire gloriously from his position as the head of Huifeng Bank in a few years and enjoy the leisure and respect that came with success, but the current situation was like a sudden storm that shattered his beautiful vision.

Shen Bi took a deep breath, trying to calm himself down, and slowly swept his eyes over every senior executive present. His voice was low but unquestionable: "Everyone, I understand your feelings at the moment. Anger, anxiety, and resentment are all normal.

But anger cannot solve the problem, and anxiety will only make us lose our composure. The reason why Huifeng Bank has come to where it is today is not due to luck, but the wisdom and hard work of each of our colleagues. Now is the time for us to show our unity and wisdom again. "

A senior executive frowned and said tiredly, "Mr. Shen Bi, we all understand the truth, but how can we break the current situation? The series of actions taken by Bank of East Asia are linked together, and we have no power to fight back."

This statement made all the senior executives present nod their heads secretly in their hearts.

Faced with such a situation, they felt helpless.

The Hong Kong Land Development, Hong Kong Electric Group, etc. are all Lin Haoran's companies. Lin Haoran transferred the financial business of these companies to the Bank of East Asia, which is also one of his companies, and he himself has no way to deal with it.

Today, companies under Lin Haoran, such as the Hong Kong Land Development and the Hong Kong Electric Group, have forced the companies that depend on them for survival to transfer their financial businesses to the Bank of East Asia, and there is no way to stop it.

It can be said that he is upright, and this is Lin Haoran's own strength.

Hong Kong's financial sector is not small, but in fact it has been divided up by major banks and financial companies.

Especially their Huifeng Bank, which previously relied on itself and its subsidiary Hengsheng Bank to directly seize 60% of the market.

However, with the transfer of financial businesses of companies such as Hong Kong Land Development and Hong Kong Electric Holdings, and the fact that companies that are now dependent on Hong Kong Land Development are also transferring their financial businesses, the business volume of their Bank of Communications and its subsidiary Heng Seng Bank has been declining.

Looking at the expressions of these people, Shen Bi sighed and had to place his hopes on the successor he had trained, Mr. Pu Weishi, the current executive director of Huifeng Bank, hoping that he could come up with some useful suggestions.

Not to mention others, he himself doesn't have any good solution. Can he blame others?
"Mr. Pu Weishi, do you have any ideas? Everyone is waiting to hear it." Shen Bi turned his gaze to Pu Weishi, with a hint of expectation and eagerness in his eyes.

Pu Weishi, who originally had no intention of speaking, was slightly startled when he heard Shen Bi's name. He then stood up, straightened his collar, and said solemnly: "Mr. Shen Bi, colleagues, the current situation is indeed serious, but it is not without hope.

The first thing we need to make clear is that the success achieved by Bank of East Asia this time is largely due to the resource integration and strategic layout of Lin Haoran’s companies.

In this regard, we actually have no possibility of counterattack. This is a reflection of Lin Haoran's own strength. The only thing we can do now is to maintain our existing business and stop the Bank of East Asia from continuing to erode our market share, while looking for new business growth points to reverse the current decline.

In fact, there is no need to be too pessimistic. We are still the leader in Hong Kong's financial industry. Although our market share with Hengsheng Bank has dropped from 6% to more than 4% and is now less than 5%, there is still a long way for Bank of East Asia to catch up with us.

Therefore, I suggest that we start from two places to continue to expand our strength and distance ourselves from Bank of East Asia. "

Having said this, Pu Weishi paused.

At the beginning of this year, the amount of funds reserved by Huifeng Bank was as high as HK$1300 billion.

Previously, due to the transfer of funds from companies under Lin Haoran, such as the Hong Kong Land Group, the amount had dropped to around HK$1100 billion.

Those companies that depend on Lin Haoran's groups such as Hong Kong Land Development and Hong Kong Electric Group for survival, as well as the bosses of those companies, transferred their funds in the past few days, causing the amount of funds stored in Huifeng Bank to continue to decline, from around HK$1100 billion to around HK$900 billion.

It can be said that in just less than a month, the amount of funds stored at Huifeng Bank fell by nearly HK$400 billion.

At the same time, this is the first time that the scale of funds of Huifeng Bank has fallen back below HK$100 billion after increasing it to over HK$100 billion in recent years.

According to the previous size of Bank of East Asia, Huifeng Bank has lost the size of six to seven Bank of East Asia in just one month, which is undoubtedly an extremely painful loss.

Despite this, the market share of Huifeng Bank and Hengsheng Bank still gives them very strong say.

The current market size of Bank of East Asia has reached approximately HK$460 billion.

Its funding structure is actually very simple.

Among them, there is the original remaining share of Bank of East Asia's own customers of about HK$30 billion, a share of nearly HK$400 billion transferred from Bank of East Asia, and a market share of nearly HK$30 billion transferred from Heng Seng Bank, Standard Chartered Bank and others.

In other words, if Huifeng Bank did not bring Hengsheng Bank over, the current Bank of East Asia would be equivalent to half of Huifeng Bank.

You should know that the former Huifeng Bank was more than 20 times the size of Bank of East Asia.

This drop and rise actually narrowed the gap between the two sides to a ratio of 1 to 2.

Such earth-shaking changes have taken place in just one month, which is truly regrettable.

During this period, the morale of Huifeng Bank has been declining. Looking at the expressions of the senior executives of Huifeng Bank who almost wanted to give up, you can know how low the morale of Huifeng Bank has become.

Faced with such a situation, Pu Weishi knew that he must come up with a practical plan to stabilize the morale of the troops and restore the morale of Huifeng Bank.

After all, if he wants to become the true successor of Huifeng Bank, he must have outstanding results and effective strategies to prove his ability.

Although Pu Weishi actually had no way to deal with the Bank of East Asia, he only needed to boost the morale of Huifeng Bank. In his opinion, that was enough.

The eyes of others, including Shen Bi, lit up.

Some people even complained in their hearts, if you, Pu Weishi, had an idea, why didn’t you bring it up earlier? What’s the point of hiding it?
Huifeng Bank is now facing a life-and-death crisis. At this moment, everyone will grab hold of any life-saving straw.

So, they were all looking forward to what clever ideas Pu Weishi would come up with.

(End of this chapter)