In Hong Kong, we build a global business empire

Daoheng Bank is a commercial bank with a long history. Although it is not a top bank in Hong Kong, it can be regarded as a medium-to-large bank.

Such a bank has already accumulated sufficient popularity and reputation in Hong Kong.

If the entire Hong Kong was not almost completely controlled by the Huifeng Bank, and other banks could only survive in the cracks, Daoheng Bank might not be unable to develop.

Moreover, according to the investigation of the intelligence agency headed by Cui Zilong, Daoheng Bank’s internal structure is of very high quality.

Now, they are indeed facing a crisis due to the bank run, but the funds they have invested and loaned out are all real high-quality assets. As long as they can get through the current difficulties, they will still have great potential for development in the future.

Therefore, as long as the price is right, letting Bank of East Asia acquire Dao Heng Bank would be a very cost-effective investment.

In fact, one wants to sell and the other wants to buy, which can be said to be a perfect match.

So, that evening, Bank of East Asia and Dao Heng Bank started negotiations.

The chairman of Crindlays Bank, the parent company of Daoheng Bank, even authorized Daoheng Bank's general manager Wang Yangyan to seize this opportunity to sell Daoheng Bank as soon as possible.

After all, the original Daoheng Bank was considered quite good, but it had never found a suitable buyer.

Today, Daoheng Bank is caught in a bank run crisis, and there is little cash left in the bank vault.

In this case, if the British Crindlays Bank does not inject capital into Daoheng Bank, Daoheng Bank will soon go bankrupt because it cannot cope with the surging bank run.

By then, not only will the brand value accumulated by Daoheng Bank over the years be destroyed, but all the costs previously invested by Crindlays Bank will also be lost, and it may also be overwhelmed by a series of legal disputes and reputation crises caused by the bank's collapse.

Let the British Crindlays Bank inject capital?

That is impossible.

Crindlays Bank has already given up on Dao Heng Bank, a Hong Kong bank, and is almost considering it as a nuisance.

In this case, we might as well take this opportunity to sell off Daoheng Bank as soon as possible.

In this way, the bank run at Daoheng Bank would have nothing to do with them. In addition, they could at least recover a considerable amount of funds, so as not to suffer a complete loss and could more or less make up for some of the losses from their past investments.

Dao Heng Bank offered to sell it for HK$1 million.

The Bank of East Asia offered HK$1 million to acquire the company.

This huge price difference instantly brought the atmosphere at the negotiation table to freezing point.

However, fortunately, one wanted to sell and the other wanted to buy, so both sides controlled their emotions and did not let the negotiations completely break down at the beginning.

So, after more than three hours of difficult negotiations, with the insistence of Bank of East Asia, the two sides finally reached an agreement on a deal price of HK$30 million.

In other words, Dao Heng Bank's parent company Crindlays Bank will no longer have to bear the pressure of a bank run on Dao Heng Bank, but it will only recover 30 million Hong Kong dollars. Compared with the previous investment, this is undoubtedly a huge loss. However, for Crindlays Bank, which is eager to sell its shares at this moment, it is a blessing in disguise.

Before the bank run, Dao Heng Bank had been trying to sell for HK$3 million.

Although this price can be considered as the market price, no suitable buyer has been found.

Unexpectedly, it can only be sold at a low price of HK$30 million, which is really sad.

However, given the current situation Daoheng Bank is facing, if it does not sell this time, it will most likely face a rapid collapse.

Once the capital chain is completely broken and unable to meet the depositors' crazy bank runs, bank bankruptcy and liquidation will be inevitable.

By then, the reputation will have completely collapsed and it will no longer have any value. Not to mention selling it, you won’t even have to give it to someone else.

Now, at least we can get back 30 million Hong Kong dollars.

Of course, the deal cannot be completed so easily. The two parties also signed a series of agreements to ensure the smooth progress of the M&A transaction and the subsequent smooth transition.

The agreement is detailed and comprehensive, covering many key aspects.

One of the most critical ones is that since the handover time requires a certain period of time, Daoheng Bank still needs to maintain basic operations during this period to protect the interests of depositors and the stability of the financial order, so the two parties have clarified the management responsibilities and risk division during the transition period.

In terms of management responsibilities during the transition period, Dao Heng Bank's existing management team will continue to be responsible for the bank's daily operations under the supervision and guidance of BEA professionals, including but not limited to handling depositors' deposit and withdrawal business, maintaining the normal opening of bank branches, and ensuring the normal working order of employees.

The most important point is that during the transition period, Dao Heng Bank's deposit interest rate will be the same as that of Bank of East Asia, that is, 4.5% for one-year fixed deposits and 5% for five-year fixed deposits.

As long as Bank of East Asia announces the acquisition of Dao Heng Bank and implements the same deposit interest rate, the bank run crisis of Dao Heng Bank will naturally be resolved.

By then, Daoheng Bank's depositors would not even want to withdraw cash, but would rather want to deposit more.

By the time the deal was done, it was already past eleven o'clock in the evening.

Both sides breathed a sigh of relief.

During the entire negotiation process, Daoheng Bank's general manager Wang Yangyan was almost always connected by phone to the parent company Crindlays Bank. After all, the final negotiated price also requires the approval of that side.

Shi Xun Road, Lin family villa.

When Lin Haoran was about to go to sleep, he received a call from Dashan.

"Boss, we have fulfilled our mission and finally made the deal. The final transaction price is 30 million Hong Kong dollars!" Dashan said excitedly on the other end of the phone.

During the negotiations, Dashan also called Lin Haoran to tell him about the progress of the negotiations. At that time, Lin Haoran’s answer was that as long as it was within 50 million Hong Kong dollars, it would be fine.

Now, the transaction price of 30 million Hong Kong dollars has exceeded Lin Haoran's expectations.

"Mr. Dashan, you did a good job. I will credit you for this achievement!" Lin Haoran said with a smile, no longer sleepy.

Although tens of millions of Hong Kong dollars are not a lot of money for him, he tries to save money wherever possible. He is not the kind of person who squanders wealth at will. Every penny must be spent wisely. The fact that this merger and acquisition can be completed at such a low price can be considered saving money for him.

After all, Bank of East Asia is his wholly-owned subsidiary.

"Boss, the other party is facing such a crisis, like fish on the chopping board, it is reasonable that we can negotiate this price. However, the subsequent transition period will be the real tough battle. We must ensure that Daoheng Bank smoothly transitions to our system without any problems." Dashan's tone was steady on the other end of the phone, and it was obvious that he had begun to think about the subsequent challenges.

Lin Haoran nodded slightly. Daoheng Bank was a well-known bank. He had acquired it at a small price of 30 million Hong Kong dollars, which meant that he had placed a very important chess piece in the financial chess game of Hong Kong. The space for his future development would be even broader.

“Since the acquisition contract has been signed, you should immediately send someone to contact the advertising company to have the new Bank of East Asia signs made overnight. They should be hung in the business halls of the 12 Dao Heng Bank branches before opening tomorrow. At the same time, you should also post an acquisition notice to announce this important news to all visiting customers and the surrounding residents.

We need to let the outside world know that although Daoheng Bank has gone through twists and turns, it now has a more solid backing and will continue to serve the public with a new attitude." Lin Haoran quickly issued an order.

It's too late now. It's obviously too late to rely on television and newspapers for publicity at this time.

Today, attracting more deposits is the top priority for Bank of East Asia, and time waits for no one.

Therefore, Lin Haoran knew that he must make full use of existing resources and channels to convey the news of the merger and acquisition to the public as quickly as possible, stabilize depositors' emotions, and attract new deposits.

That is to say, tomorrow they will start absorbing through these newly acquired banks.

If we really have to wait until all the work is handed over before starting business, we will undoubtedly miss the golden window period for stabilizing depositors and attracting deposits.

Because even Lin Haoran didn't know when the Governor's Office would take action.

What if the Governor's Office interferes before they have completed the handover?

Although the Governor's Office had promised not to interfere in the competition between the Bank of East Asia and the Bank of Hong Kong, the impact now clearly was no longer limited to the Bank of Hong Kong alone, but involved all the banks in Hong Kong.

Therefore, the most important thing now is to seize the time and race against time to stabilize Daoheng Bank's depositor base as quickly as possible and attract new deposit inflows.

As a result, the number of branches increased from 20 to 32, so the funds absorbed every day must be much more than the previous two days.

Dashan responded on the other end of the phone: "I understand, boss! I think so too. I will arrange for someone to do it right away. I guarantee that tomorrow morning, all Daoheng Bank's business halls will be brand new and the acquisition news will be conveyed accurately."

"Well, thank you for your hard work tonight!"

After hanging up the phone, Lin Haoran no longer had any intention of continuing to sleep, so he simply got up and went to the study.

Although the acquisition of Dao Heng Bank by Bank of East Asia may seem inconspicuous, it is a brilliant move with far-reaching strategic significance for its future layout.

Throughout the day today, Bank of East Asia absorbed a total of HK$12.46 billion in time deposits, of which 5% were -year time deposits!

Adding the HK$11.38 billion attracted on the first day, Bank of East Asia collected HK$23.84 billion in time deposits in two days, which is undoubtedly an exciting figure.

This is still limited by the fact that Bank of East Asia has too few branches, only 20. If the number of branches could be greater, the scale of deposits absorbed would probably be even more astonishing.

Now, after acquiring Daoheng Bank, 12 regular business offices have been added directly.

While the Governor's Office has not intervened to stop it, he must race against time and make full use of this time to attract more deposits.

After all, every extra sum of money will bring him more advantages in his overseas layout.

Although the money belongs to the depositors, it does not belong to the Bank of East Asia, nor to Lin Haoran personally.

However, as a bank, Bank of East Asia could have used the money to make more money, especially as it had already planned to make large-scale investments in Japan before the Japanese economic bubble. He would not be satisfied with relying solely on the Hong Kong Land Group to invest in Japan.

By then, the funds absorbed from the private sector will flow back into his investment portfolio at several times, even dozens of times, bringing him immeasurable wealth growth.

How crazy was Japan during the economic bubble period? As a time traveler, although he had not been to Japan to experience it personally, he was able to get a glimpse of it from some books, online information and financial experiences in his previous life.

It was an era when speculation was rife and asset prices soared to outrageous levels. Real estate prices were running wild like wild horses, and the stock market was also booming. It seemed that as long as you invested money, you could just sit back and wait for wealth to come in like a tide.

With regard to its investment in Japan, Bank of East Asia does not need to make more money through various industries such as real estate like Bank of East Asia did. It only needs to simply set up an investment company in Japan and invest in stocks.

After all, the Nikkei index rose from less than 10,000 before the bubble to nearly 10,000, with the index alone quadrupling, not to mention the outstanding performance of those listed companies.

As long as the stocks are chosen well, not to mention 4 times the return, even 10 times or 20 times is possible.

Especially after the signing of the Hiroshima Agreement in 1985, the yen appreciated rapidly against the US dollar, and the Bank of Japan began to cut interest rates and expand credit to stimulate domestic demand...

Even a fool could easily make a fortune by investing in Japan during this period, not to mention Lin Haoran who had the memory of later life and financial knowledge.

If you calculate it this way, what is 5% interest per year?

……

In the blink of an eye, the night was over.

After a night of preparation, many citizens who got up early and passed by the Dao Heng Bank branches were surprised to find that the Dao Heng Bank signs of each branch had added four eye-catching golden characters "Bank of East Asia". They sparkled brightly in the morning light, standing side by side with the original "Dao Heng Bank" logo, visually cleverly highlighting the identity of the new owner.

Posted at the entrance of the branch is a huge acquisition notice, which details the Bank of East Asia's acquisition of Dao Heng Bank and its commitment to maintain the Bank of East Asia's standards for service quality and deposit interest rates in the future. The words between the lines reveal the respect and importance the bank attaches to its customers.

Citizens stopped to watch and talk about it.

"Oh, what's going on? Daoheng Bank was acquired by Bank of East Asia?" A middle-aged man stopped, pointed at the announcement, and said to his companion beside him with surprise on his face.

The companion took a closer look and also widened his eyes: "Really! This news came too suddenly. Yesterday my friend was worried about the funds he had deposited in Daoheng Bank. At that time, many of us thought that Daoheng Bank might not be able to hold on. I didn't expect that such a big change would happen in just one night."

"The announcement said that Daoheng Bank will merge with Bank of East Asia, and the deposit interest will be exactly the same as Bank of East Asia's deposit interest, 4.5% for one-year fixed deposit and 5% for five-year fixed deposit. Doesn't that mean I don't have to queue up at Bank of East Asia?" said a citizen who had originally planned to deposit money at Bank of East Asia today excitedly.

There is no Bank of East Asia around this branch, and Daoheng Bank's branch just happens to fill the service gap of Bank of East Asia.

For him, this is undoubtedly great news.

I used to worry that I would have to travel a long way to the Bank of East Asia to queue up for business in order to get the higher deposit interest rate. Now I can get it done at the Dao Heng Bank branch right next to my home, saving time and effort.

"That's right! Now, we don't have to worry about Daoheng Bank going bankrupt and losing our money, and we can enjoy the same deposit interest as Bank of East Asia. It's really killing two birds with one stone." Another citizen echoed.

As the news spread quickly among the citizens, more and more depositors learned about the situation.

The mood of Daoheng Bank depositors, who were originally in panic due to the bank run, has gradually calmed down.

Now, there is no need to worry about Daoheng Bank going bankrupt.

Notices have been posted not only at the branches of Dao Heng Bank but also at the branches of Bank of East Asia. If the queue is too long, people can go to other branches of Bank of East Asia to make fixed deposits. They can also handle fixed deposit business at branches of Dao Heng Bank.

Therefore, before the major banks started operations, the news of Bank of East Asia's acquisition of Dao Heng Bank spread throughout Hong Kong.

For a while, many media went to Bank of East Asia and Dao Heng Bank to verify the news.

The answer is naturally affirmative.

Originally, some people doubted the authenticity of the matter, but the two banks' confident responses instantly dispelled all doubts.

This news was like a bombshell, causing a huge uproar in Hong Kong's financial circles and even the entire society.

At the headquarters of Huifeng Bank, Shen Bi, who had just arrived at the office, received this call and was immediately furious.

He naturally understood the purpose of Bank of East Asia's move, which was nothing more than using more branches to attract more private deposits.

As the most powerful bank in Hong Kong, HSBC Bank obviously suffered the biggest losses under such circumstances.

Angry, but helpless.

The situation of Huifeng Bank in recent days has made the shareholders' meeting very dissatisfied.

If he does not stop it and allows the market share of Huifeng Bank and Hengsheng Bank to be further eroded, his position as chairman of the board of directors of Huifeng Bank will probably be in jeopardy.

Yesterday, Huifeng Bank and Hang Seng Bank once again lost nearly HK$7 million in deposits, and the amount is increasing day by day. For Huifeng Bank and Hang Seng Bank, this is like a chronic disease. They can only watch it erode their foundations, but they cannot find an effective way to deal with it.

"No, since the Governor's Office is unwilling to help, I must unite with other banks to expand my influence and force the Governor's Office to step in!" Walking around the office, Shen Bi could no longer sit still. He planned to use his identity as the president of the Hong Kong Banking Association to gather all the association members together to discuss strategies to deal with the "expansion offensive" of the Bank of East Asia.

After all, in addition to Huifeng Bank and Hengsheng Bank, other banks are also victims.

Although it was Huifeng Bank that took the lead in raising bank interest rates in an attempt to reap the benefits of other banks, they ultimately failed to achieve this goal.

Therefore, even though Shen Bi knew clearly that those banks hated Huifeng Bank, they were all like grasshoppers on the same rope. Faced with the aggressive expansion of Bank of East Asia, the only way to survive was to stick together and keep each other warm.

So Shen Bi acted quickly.

At the same time, in the new day, major banks continued to have long queues as in the previous two days.

The teams from Bank of East Asia and Dao Heng Bank are naturally aiming for deposits.

The queues at other banks are mainly composed of depositors who want to withdraw money or are concerned about the safety of their funds and come to inquire about follow-up arrangements.

The entire financial circle of Hong Kong is filled with a tense and delicate atmosphere.

The employees of Daoheng Bank found it hard to imagine that they were worried about losing their jobs the day before, but became employees of a subsidiary of Bank of East Asia the next day.

But precisely because of this change, these employees work harder.

Time passed quickly, and in the blink of an eye it was already five o'clock in the afternoon.

However, tonight, the tellers at Bank of East Asia and Dao Heng Bank were still working overtime until eight o'clock, just like the Bank of East Asia in the past two days.

Encouraged by the triple salary, the tellers had no complaints and were full of energy.

After all, such opportunities are very rare.

Who doesn’t work for a higher salary?
As the shutters of the 32 branches slowly fell, each branch began its intensive statistical work. Eventually, the statistical data of each branch was gathered at the headquarters of Bank of East Asia and then combined for statistics.

After an intense and detailed statistics, the conference room at the Bank of East Asia headquarters was brightly lit and all senior managers held their breath.

As the data were compiled one by one, an exciting figure gradually emerged - today, Bank of East Asia and the newly merged Dao Heng Bank branch have attracted a total of more than HK$20 billion in time deposits, reaching HK$20.86 billion!
Although the profit did not double after the merger, the growth rate has already surprised the senior management of Bank of East Asia and Lin Haoran.

The day before, it was only HK$12 billion, but today it is HK$20 billion.

Using 8 million Hong Kong dollars of funds to leverage million Hong Kong dollars of funds a day is such a good deal!

"Boss, we found that the work efficiency of Daoheng Bank is not lower than that of Bank of East Asia. We guess that it is because these employees' work enthusiasm and initiative have been fully mobilized after learning that their jobs are preserved and they have a more solid support in the future." Dashan reported to Lin Haoran.

"Well, this shows that acquiring Daoheng Bank is a good move, but are there any other suitable banks to acquire?" Lin Haoran said with a smile.

"Not yet. According to the intelligence from President Cui, the banks that are currently facing bankruptcy risks and have plans to sell are all small and medium-sized banks, and none of them are high-quality banks. Therefore, I do not recommend an acquisition," said Dashan.

"Well, in that case, let's not expand for the time being," Lin Haoran nodded and said.

After three days, the bank under his control had increased its depositors' funds by HK$44.7 billion, and Lin Haoran was very satisfied.

Hopefully it will last a little longer.

If he can get more than 10 billion Hong Kong dollars, then in the future he can at least help him earn tens of billions or even hundreds of billions of Hong Kong dollars in Japan.

And he only needs to pay a tiny amount of interest.

That's why he came up with the idea of ​​acquiring a bank.

Although he could have made a fortune relying solely on companies such as the Hong Kong Land Group and the Hong Kong Electric Group, the funds were obviously insufficient to meet his needs for large-scale overseas layout, especially for precise investment in Japan's economic bubble period, and for investing in some important companies in Europe and the United States.

The bank's ability to absorb funds undoubtedly opened a wider door to wealth for him.

He is indeed not short of cash now, especially since he made billions of Hong Kong dollars directly from the Toyota stock battle.

But Lin Haoran doesn't think having too much money is too much.

It would be great if we could continue to attract more funds and provide stronger financial support for overseas investment.

In the financial market, capital is the foundation of everything and the lever to leverage greater wealth. (End of this chapter)