In Hong Kong, we build a global business empire

Time passes, another day has passed, and a new working day has arrived.

Just as Bank of East Asia and Dao Heng Bank were actively absorbing deposits from other banks, a new trading day arrived at the four major stock exchanges in Hong Kong. Many investors in the exchanges did not look so good.

Although the bull market has not ended yet, the Hang Seng Index has been dragged down, with the increase far less than before and even falling.

On the one hand, the major event of Bank of East Asia's acquisition of Dao Heng Bank has brought new changes to the financial market landscape.

The market share of traditional large banks such as Huifeng Bank and Hengsheng Bank has been further eroded, which has caused a certain degree of fluctuation in the share prices of the listed companies behind these large banks.

Companies that originally relied on credit support from major banks such as Huifeng Bank are now facing concerns about possible changes in the financing environment. Investors have begun to re-evaluate their future profit expectations for these companies and have sold off related stocks, causing stock prices to fall.

On the other hand, interest rate competition among banks has also spread to the securities market.

Bank of East Asia attracted a large amount of capital inflows with its higher deposit rates, which diverted funds that might have otherwise flowed into the stock market.

Seeing that bank interest rates are so attractive, especially the high interest rates on long-term fixed deposits, many stock investors begin to hesitate whether to withdraw their funds from the stock market and deposit them in banks to obtain stable returns.

This shift in capital flows has further dampened the stock market's upward momentum.

The banks that are able to go public are actually banks with very good strength.

For example, Huifeng Bank, Hengsheng Bank, Wing Lung Bank, Standard Chartered Bank, Wing Hang Bank, Hang Lung Bank, Guang'an Bank, etc. The capital scale of these banks is at least hundreds of millions, and most of them have strong financial backers.

For example, Hang Lung Bank, backed by the real estate giant Hang Lung Properties, has a certain risk resistance and flexibility in resource allocation even in the face of competitive pressure from Bank of East Asia.

Hang Lung Properties' strong financial strength and diversified business layout can provide Hang Lung Bank with liquidity support and credit endorsement to a certain extent, so that it will not fall into a too passive situation amid fluctuations in the financial market.

However, even if there is no risk of bankruptcy in the short term, the stock price will eventually plummet due to market loss.

Basically, all listed bank stocks in Hong Kong are red (in Hong Kong, in the stock market, green represents rising stock prices and red represents falling stock prices)!
Among them, the most prominent one is Huifeng Bank.

Under pressure from shareholders and investors, the top management of Huifeng Bank has always had to maintain an ever-increasing stock price. Under normal circumstances, if the stock price plummets, they will even step in to support the market and push up the price.

But since the last time Lin Haoran asked Galaxy Securities to short Huifeng Bank openly, although Huifeng Bank tried every means to maintain its share price, it simply couldn't do it.

The reason is of course very simple. The market share has been lost, so it would be strange if it continued to rise. Although many investors have taken advantage of the situation, they are not stupid.

In this situation, is there anyone who would still think that the share price of Huifeng Bank will rise?

It is better to get rid of it as soon as possible to reduce your losses.

Huifeng Bank can rely on market support to keep its stock price on an upward trend in the short term, but this approach of relying on external funds to forcibly support the stock price is tantamount to drinking poison to quench thirst.

On the one hand, supporting the market requires huge amounts of money, which is undoubtedly a heavy financial burden for Huifeng Bank, whose revenue has been affected by the loss of market share.

Every time the stock price is raised, it is like drawing water from an already dry pool of funds. If this continues, the bank's internal capital chain will become increasingly tight.

On the other hand, market investors are not blind followers. They are well aware of the actual difficulties faced by Huifeng Bank.

Even if the stock price is forcibly pulled up in the short term, the rise without performance support will ultimately be difficult to sustain.

Investors' confidence in Huifeng Bank has not really been restored due to the market-supporting behavior. Instead, they have become more vigilant, worrying that such human intervention is only temporary and that once the funds are exhausted, the stock price will face a more severe decline.

Previously, when the news that companies such as Hong Kong Land Development and Hong Kong Electric Holdings were transferring their financial businesses to Bank of East Asia was exposed, the share price of Bank of East Asia had fallen to HK$16 billion.

This is similar to the market value of Huifeng Bank in mid-last year.

This means that all the growth of Huifeng Bank over the past year has been in vain.

Just when everyone thought that the share price of Bank of East Asia had basically stabilized at more than 5 billion Hong Kong dollars, Bank of East Asia directly announced that it would increase the maximum deposit interest rate to %. As the largest bank in Hong Kong, Bank of East Asia lost the most market share.

It is precisely because of this that Huifeng Bank’s stock price began to plummet again.

In just three days, the market value of Huifeng Bank fell from more than HK$16 billion to more than HK$13 billion.

Today, the company with the largest market value in Hong Kong is no longer Hong Kong Electric Corporation, but Hong Kong Electric Group!

With a market value of HK$163 billion, Hong Kong Electric Group has become the largest company in Hong Kong by market value.

Of course, everyone knows that even if its market value exceeds that of Bank of Hong Kong, the real strength of Hong Kong Electric Group is still far behind that of Bank of Hong Kong.

As the leader of Hong Kong's financial industry, the current share price of Huifeng Bank has plummeted, but it is only because it has experienced a series of shocks and changes and is temporarily at a low point. However, this low point has shaken the entire Hong Kong financial market.

A month ago, the market value of Huifeng Bank once reached a terrifying level of more than 25 billion or even 26 billion Hong Kong dollars.

As a result, in a short period of time, Huifeng Bank experienced great ups and downs, and suddenly fell back to more than 13 billion Hong Kong dollars. Such a huge gap was like a heavy hammer hitting the hearts of Huifeng Bank's senior management and shareholders.

And this is not the lowest.

Today, Huifeng Bank continued to fall. The market opened in the morning. Investors who had already received the news that Bank of East Asia would acquire Daoheng Bank were even more panicked. The selling wave was like a surging tide, one after another.

On the simple electronic trading screen, the stock code of Huifeng Bank kept flashing, the trading volume increased sharply, and each sell order was like a sharp blade, cutting on the remaining stock price of Huifeng Bank.

Within just half an hour of opening, the share price of Huifeng Bank fell another 5%, and its market value further shrank to more than HK$ billion.

In the hall of the stock exchange, stockholders discussed anxiously, some beating their chests and stamping their feet, regretting not selling out earlier;

Some people looked confused and didn't know what to do next.

Those investors who originally held out the last glimmer of hope for Huifeng Bank now completely lost their confidence and joined the selling army.

Kangle Building, Galaxy Securities Company Office.

"Boss, Huifeng Bank has fallen a lot again. Should we start buying Huifeng Bank shares?" Dai Shi asked Lin Haoran respectfully.

They had previously shorted Huifeng Bank, borrowing a total of 25.6% of Huifeng Bank's share price and selling it for HK$60.1 billion.

Today, Huifeng Bank's share price has fallen by nearly half.

In other words, if they secretly bought up the stocks and then returned them to the shareholders, securities firms, and investment companies, Lin Haoran would have directly earned nearly HK$30 billion in just half a month!
Knowing the inside information in advance and shorting a listed company is indeed one of the most profitable ways.

Although a small portion of interest fees and some handling fees need to be paid to the parties who lent the stocks, compared with the huge profit of nearly HK$30 billion, these interest costs and handling fees are negligible.

Lin Haoran stood in front of the floor-to-ceiling window, overlooking the busy street below, his eyes revealing a sense of confidence.

He turned around and looked at Dai Shi, with the corners of his mouth slightly raised, and said: "Don't worry, although the share price of Huifeng Bank has fallen a lot now, the market panic has not been completely released, and the share price still has room to fall further.

Moreover, you should also know that we still have a trick up our sleeve. We will wait until it drops to a more suitable price before we start buying.”

The back-up plan that Lin Haoran mentioned was to pay the salaries of all employees of subsidiaries including the Hong Kong Land Group, HK Electric Group and Wan Ching Group through Bank of East Asia.

This method can at least help Bank of East Asia attract hundreds of thousands of households as customers, and the funds involved are not small at all.

Today, the British BACS system company has flown all the way from the UK to Hong Kong with the system equipment and has begun installing it in various branches.

Even the six branches that have not yet opened and are still under renovation are already being installed and debugged.

Before August, the UK's most advanced bank transfer system will be able to officially serve Bank of East Asia.

Once this strategy is implemented, it will be another surge for Bank of East Asia.

As the largest bank in Hong Kong, Bank of Hong Kong will inevitably suffer a heavy blow once again, with its market share further eroded and its stock price very likely to experience another round of plunge.

Moreover, in addition to this back-up plan, he has another back-up plan.

That is, Guo Henian, Run Run Shaw and others transferred the financial business of their companies to the Bank of East Asia.

Both of them made promises.

The funds involved by these two people alone amount to tens of billions of Hong Kong dollars, which is of no small importance.

In addition to these two people, Lin Haoran believes that there are many people in Hong Kong who will support him. After all, he is the businessman with the most assets in Hong Kong's business world, so naturally there are many people who give him face.

In the financial world, almost no one dares to respect Huifeng Bank, but the same may not be true for giants in other industries.

By then, it will be the best time for them to buy Huifeng Bank shares.

After a series of blows, Lin Haoran didn't believe that the current stock price would be the bottom of Huifeng Bank.

Lin Haoran was no novice, and naturally understood that the fluctuations in the financial market were like the tides, with ups and downs. A true hunter would always strike at the best time and reap the most abundant rewards.

He continued to say to Dai Shi: "You see, the market's confidence in Huifeng Bank has been severely undermined. Investors are like frightened birds, and will rush to sell at the slightest sign of trouble. If we rush to buy now, not only will the cost be relatively high, but it may also alert the market and cause our plan to be exposed ahead of time."

Dai Shi nodded repeatedly after hearing this, and his respect for Lin Haoran increased even more.

Who can make billions of Hong Kong dollars in just half a month?
Anyway, Dai Shi has never met anyone other than the boss Lin Haoran.

Dai Shi has been working with Lin Haoran since late 1978. Over the past few years, he has witnessed his boss's growth from a small cement factory owner to a powerful figure in Hong Kong's business community.

Dai Shi remembered all the ups and downs along the way. He naturally understood that Lin Haoran's achievements today were not accidental, but were due to his extraordinary courage, keen insight and unremitting efforts. Even in the whole world, he was unique.

"Boss, I understand. Let's keep our hands off and wait for the best time to strike." Dai Shi responded respectfully, his eyes full of admiration and trust.

At the same time, I am even more fortunate to have met a boss like Lin Haoran, who can follow me closely in this ever-changing business world and share glory and opportunities.

In front of Lin Haoran, what is the so-called stock god Buffett?
In Dai Shi’s mind, Lin Haoran is the real strongest stock god.

I still remember the Wharf business back then. Even though the boss had no capital, he still made tens of millions of Hong Kong dollars easily.

……

The market value of major listed companies in the stock market is shrinking.

Deposits in major banks also continued to flow out and eventually flowed into Bank of East Asia and Dao Heng Bank.

With the addition of 12 branches, the speed of absorbing funds, although not doubling, the increase is also obvious.

While the business halls of all the major branches were busy, nearly two hundred people came to the square outside the Governor's Palace!
These people are the bosses and top executives of major banks in Hong Kong.

The leader among them was Shen Bi, the boss of Huifeng Bank.

He looked around at the group of people and was surprised to find that He Shanheng from Hengsheng Bank was not there.

Last night, the Hong Kong Banking Association convened a meeting overnight for a meeting, and finally decided to come to the Governor's Mansion together at 10 o'clock this morning to put pressure on Governor MacLehose.

Since the Governor's Office does not give face to Hui Feng Bank this time, it must give an explanation to the major banks in Hong Kong, right?

No bank dares to keep up with the 5% deposit interest rate.

If you follow now, you will die. If you don’t follow now, you will also die.

However, they cannot just sit there and watch Bank of East Asia eat away at the market share they have worked so hard to gain.

If no action is taken, the banking landscape in Hong Kong may be completely rewritten, and the years of operating results of these traditional large banks will be destroyed.

Therefore, the only person who can change this situation now is Governor MacLehose.

They hoped that through collective pressure, the Governor-General's Office would intervene to restrict the Bank of East Asia's vicious competition through high interest rates, so as to maintain the stability of Hong Kong's banking industry and a fair competition environment.

"Go ask Mr. He why he hasn't come yet?" Shen Bi said to his subordinates.

"Okay, Mr. Boss." The subordinate hurried back to the car, picked up the car phone and started dialing.

Although mobile phones were not yet commercialized in this era, car phones were already very mature.

For a big shot like Shen Bi, his official car would naturally be equipped with a car phone.

However, not many people in Hong Kong can afford car phones. Due to the high cost, even rich people may not be willing to use them.

Therefore, in Hong Kong, this is not very popular, and is mainly used by some big shots.

Of course, car phones do have many inconveniences compared to real mobile phones.

It is limited to the vehicle's range of movement and once it leaves the vehicle, it cannot maintain communication continuity.

But even so, in today's era, car phones have become a symbol of identity and status, and are also an indispensable communication tool in business activities.

The subordinate came back from the phone call quickly, and with a somewhat panicked look, he leaned close to Shen Bi's ear and whispered, "Mr. Boss, Mr. He said that Hengsheng Bank will not participate in this operation for the time being. They have other considerations."

Shen Bi frowned, feeling unhappy.

The matter was discussed carefully last night. Although Ho Shan Heng did not say anything at the time, in Shen Bi's opinion, it was tacitly agreed that Hengsheng Bank would act in concert with Bank of East Asia.

At this critical moment, Hengsheng Bank actually backed down, which will undoubtedly greatly reduce the effectiveness of their pressure campaign.

After all, Hengsheng Bank is one of the top three commercial banks in Hong Kong.

Even though it has been surpassed by Bank of East Asia, it still has a very important position in Hong Kong.

Now, this existence, which they regarded as a vassal, actually chose to act alone at this critical juncture. How could Shen Bi not feel angry and disappointed?

He took a deep breath and tried to calm his emotions. He thought to himself, "After I return from the Governor's Mansion, I must let He Shanheng know who is the controller of Hengsheng Bank!"

However, looking at the nearly two hundred bosses and top managers of large, medium and small banks around him, Shen Bi suddenly became full of confidence again.

The loss of a Hengsheng Bank will not affect the overall situation.

At this moment, the situation in the square in front of the Governor's Palace had naturally been reported to Mai Lihao by the staff of the Governor's Palace.

After Mai Lihao knew about this, he naturally understood why these people came here.

Before this, it was just a warning to Shen Bi, to teach them a lesson and let them know that the Governor's Office was not the back garden of Huifeng Bank and could not be left to them to manipulate.

But now that so many senior bank executives have gathered at the Governor's Office, they are obviously coming with great pressure and demands. If not handled properly, it may cause greater turmoil in Hong Kong's financial market.

After all, the bank bosses involved here represent the power of most of Hong Kong's financial circle.

After pondering for a moment, Mai Lihao decided to meet with the bank heads in person.

He straightened his clothes, walked quickly out of the Governor's office, crossed the long corridor, went out of the gate of the Governor's Mansion, and came to the square in front of the Governor's Mansion.

At this time, the bosses and top executives of the major banks, led by Shen Bi, were preparing to let the staff of the Governor's Office go in to report. When they saw Governor Mai Lihao appear, the originally noisy discussions instantly quieted down, and everyone's eyes were focused on Mai Lihao.

"Mr. Governor, we are here this time to discuss with you the severe situation currently facing the Hong Kong banking industry." Shen Bi stepped forward first, bowed slightly, with a hint of urgency and dissatisfaction in his tone.

"Bank of East Asia's vicious competition with a deposit interest rate as high as 5% has seriously disrupted the normal order of Hong Kong's banking industry. If no intervention is made, the entire Hong Kong financial system will fall into chaos and many banks will face a survival crisis. I hope the Governor's Office can come forward to uphold justice."

Mai Lihao looked calm, his eyes swept over the crowd, and he slowly said: "Mr. Shen Bi, I understand your feelings, but market competition has its own rules. Although the move by the Bank of East Asia is radical, it is also carried out within the framework of legality and compliance. If the Governor's Office intervenes rashly, it may be unfair and will also cause other problems."

"Mr. Governor, this is absolutely not normal market competition!" a small and medium-sized bank boss shouted excitedly, "Such a high interest rate cannot be maintained for a long time. Bank of East Asia is grabbing market share by any means. If this continues for a long time, the entire industry will be dragged down, countless employees will face unemployment, and Hong Kong's economy will also suffer a heavy blow!"

Everyone echoed, and the scene was a little noisy for a while.

Mai Lihao raised his hand to signal everyone to be quiet. After the situation calmed down a little, he continued: "I understand everyone's concerns, but Hong Kong, as a free economy, has always advocated free competition in the market. However, I will also seriously consider the situation you mentioned.

How about this, the heads of Huifeng Bank, Standard Chartered Bank, Hengsheng Bank, Wing Hang Bank, Hang Lung Bank, Guang'an Bank... stay here, and the representatives of other banks go back first. Our Governor's Mansion is not big and it is difficult to accommodate so many people. I will contact Mr. Lin Haoran and ask him to come over to discuss a proper solution with you. "

Mai Lihao named more than a dozen banks in a row, and these banks basically represent the mainstream banks in Hong Kong.

After hearing Governor Macrihao's arrangement, a low murmur of discussion rose again among the crowd.

At this time, Shen Bi came forward and said, "You guys go back first, we will take care of it and fight for your interests!"

Immediately, everyone nodded and left the scene.

For Shen Bi, the goal of using everyone to pressure the Governor's Office has now been achieved. In this case, the presence or absence of these small and medium-sized bank bosses is not critical.

Leaving behind a group of heads of mainstream banks would allow us to concentrate our efforts on key negotiations with the Governor-General's Office and the Bank of East Asia, while also avoiding excessive chaos.

Not long after, Lin Haoran, who was paying attention to the situation of Bank of East Asia, Daoheng Bank, and the share price of Huifeng Bank in Kangle Building, received a call from Governor MacLehose himself.

He had already been mentally prepared for the call from the Governor's Office.

But isn't it a bit early?

Lin Haoran put down the phone and frowned.

This was only the second day after he acquired Daoheng Bank, and the fourth day after he actually used the 5% fixed deposit interest rate to attract private deposits, and already the Governor's Office had started to take action?
This was a bit too fast for Lin Haoran.

Although he had been mentally prepared, when this moment finally came, Lin Haoran couldn't help but feel a little nervous.

However, even if the Governor's Office is destroyed, he may still have the opportunity to gain more benefits for himself.

After all, Bank of East Asia has been legal and compliant from the beginning to the end, and the matter was first initiated by Huifeng Bank.

For now, we can only take things one step at a time. There is no point in thinking too much for the time being.

So he gave Dai Shi a few brief instructions, asking him to continue to pay close attention to market trends, especially the changes in Huifeng Bank's share price, and then drove to the Governor's Mansion with his bodyguards.

Along the way, Lin Haoran closed his eyes and rested, constantly sorting out the possible topics and response strategies involved in this meeting in his mind.

He understood that although the Governor's Office advocated free competition, it would not sit idly by and watch Hong Kong's banking industry fall into excessive chaos. The key was how to find a balance between maintaining market fairness and its own interests.

He can make concessions, but Huifeng Bank and other small and medium-sized banks in Hong Kong must also make corresponding concessions! (End of this chapter)