In Hong Kong, we build a global business empire

Chapter 656 Standard Chartered Bank's Ambition, Bank of East Asia Wants the Right to Issue Currency
After giving Mr. Brown the detailed address of Shi Xundao's residence, Lin Haoran hung up the phone.

He Shanheng frowned slightly and asked, "Haoran, Mr. Brown from Standard Chartered Bank suddenly contacted you and requested a secret meeting. Could he have some other motive?"

Lin Haoran crossed his arms and pondered for a moment before saying, "No matter what his intentions are, we'll know once we meet him. With Huifeng Bank in trouble and Hong Kong's financial landscape in turmoil, Standard Chartered Bank, as a long-established bank, must also want to profit from this upheaval."

Perhaps he wants to cooperate with us to deal with Huifeng Bank, or maybe he has other ideas. Let's just wait and see.

He Shanheng nodded and said, "Alright, but we still need to be careful, after all, Standard Chartered Bank is no pushover."

Lin Haoran smiled and said, "Uncle He, don't worry, I know what I'm doing. By the way, Uncle He, why don't you come with me to meet this taipan from Standard Chartered Bank? After all, you'll still be in charge of all the affairs of East Asia Bank. The fact that he's contacting me is probably about Huifeng Bank."

“Okay, let’s go then!” He Shanheng nodded.

Afterwards, He Shanheng and Dashan exchanged a few words and then left the East Asia Bank headquarters with Lin Haoran, heading to their residence on Shi Xun Road.

Meanwhile, Brown, the Hong Kong tycoon of Standard Chartered Bank, was driving his Mercedes while repeatedly considering his upcoming meeting with Lin Haoran.

He was entrusted with a heavy responsibility by the senior management of Standard Chartered Bank for this secret invitation. In the midst of the turbulent financial situation in Hong Kong, Standard Chartered Bank could not afford to let the opportunity slip away.

In terms of internationalization, Standard Chartered Bank was undoubtedly much stronger than HSBC. At that time, HSBC could not be considered a global bank, but Standard Chartered Bank definitely could.

Unlike HSBC, which is headquartered in Hong Kong, Standard Chartered Bank is a foreign bank headquartered in London.

However, it also has a very long history in Hong Kong. It established a branch in Hong Kong in 1859, becoming one of the first foreign banks to enter Hong Kong.

In 1862, Standard Chartered began issuing Hong Kong dollar banknotes, becoming one of the three early note-issuing banks in Hong Kong.

During this period, Standard Chartered primarily served Sino-British trade, providing financing support for the trade of commodities such as opium and tea, and gradually established a business network covering Asia.

Throughout its more than 100-year history, Standard Chartered Bank has always been one of the most important foreign banks in Hong Kong. Since Hang Seng Bank was acquired by HSBC, apart from HSBC, Standard Chartered Bank is basically the only bank with any strength to rival it in Hong Kong's financial sector.

For example, last year, Standard Chartered Bank had a fund size of just over HK$20 billion in Hong Kong, accounting for nearly 10% of the market share, almost on par with Hang Seng Bank.

They also wanted to improve, but in a market almost monopolized by Huifeng Bank, increasing market share by even a fraction of a percent was extremely difficult.

With its strong local roots, large customer base, and close partnerships with numerous companies, Huafeng Bank firmly controls many core businesses in Hong Kong's financial market.

Despite its deep-rooted heritage and leading internationalization, Standard Chartered Bank has consistently struggled to break through the defenses built by HSBC in Hong Kong, with its market share climbing at a snail's pace.

This is why Standard Chartered Bank's development in Hong Kong has always been limited to maintaining its existing market share, making it difficult to achieve a substantial breakthrough.

However, around noon, Sim Bi personally visited him, seeking financial support.

This move made him keenly aware that this might be the perfect opportunity for Standard Chartered Bank to break the current deadlock and achieve leapfrog development.

He acted decisively and quickly contacted senior executives at Standard Chartered Bank's London headquarters.

After in-depth discussions, everyone agreed that this was a once-in-a-lifetime opportunity and should not be missed.

If we can seize this opportunity to acquire Huifeng Bank in one fell swoop, then Standard Chartered Bank's position in Hong Kong will undergo a dramatic change.

This is the first time in Standard Chartered Bank's more than 100-year history that such an excellent opportunity has appeared. It would be a real waste to miss it.

When Shen Bi visited, he requested a loan. On the surface, Brown wanted to obtain approval from headquarters, but in reality, after discussing with senior management at headquarters, he immediately contacted Lin Haoran.

After all, if one wants to acquire HSBC, one cannot avoid its current competitor, Bank of East Asia.

To get the Bank of East Asia to cooperate, it would definitely be necessary to relinquish some of its profits.

But compared to acquiring Huifeng Bank, what does giving up some profits matter?
In the eyes of the British consortium behind Standard Chartered Bank, Huifeng Bank was nothing more than a colonial bank, far less prestigious than their own British banks.

Therefore, when HSBC's attempt to acquire the Royal Bank of Scotland, a British bank, failed, the senior executives of Standard Chartered Bank secretly sneered, thinking that HSBC was overestimating itself and attempting to devour British financial resources as a colonial financial institution, which was simply wishful thinking.

Now that Huifeng Bank is in deep trouble and struggling to survive, Standard Chartered Bank's top management sees this as an excellent opportunity to completely acquire Huifeng Bank and allow Standard Chartered Bank to ascend to the throne of Hong Kong's financial hegemon.

Once the acquisition of Huifeng Bank is successful, Hengsheng Bank, which was previously acquired by Huifeng, will also become a member of Standard Chartered Bank.

At that time, coupled with Standard Chartered Bank's existing market share in Hong Kong, their footprint in Hong Kong's financial market will expand significantly, and it will be no problem for them to occupy half of the market.

As Brown drove, the scene of his meeting with Lin Haoran kept replaying in his mind.

He was well aware that this meeting had to be conducted with caution, demonstrating Standard Chartered's sincerity and strength while subtly probing East Asia Bank's bottom line.

He dared not underestimate Lin Haoran. How could someone who could drive Hong Kong's dominant bank, Huifeng Bank, to the brink of despair be simple?
Those who underestimated Lin Haoran have all suffered setbacks, such as Jardine Matheson and now Huifeng Bank.

Brown took a deep breath, trying to calm himself down, and parked the car steadily in front of his residence on Shi Xun Road.

Meanwhile, Lin Haoran and He Shanheng had already returned a few minutes earlier.

"Mr. Brown, welcome!" Lin Haoran stood at the door, smiling, and shook hands with Brown, who had just gotten out of the car.

Immediately afterwards, He Shanheng also greeted the other party.

Ho Sin-hang and Brown have worked in Hong Kong's financial industry for many years and are considered old friends.

“Mr. Lin, Mr. He, let’s go inside first. I don’t want this important meeting to attract too much attention from the outside world.” Brown had a perfectly measured smile on his face, but his eyes revealed a hint of caution as he scanned his surroundings, as if worried that others would discover that he was visiting Lin Haoran.

Lin Haoran nodded slightly and gestured to the side, "Mr. Brown, please. Tea and refreshments have been prepared inside."

The three of them went into the study on the first floor and sat down on the sofa.

The servants brought out tea and snacks and closed the study door, which eased the tension in the room.

“Mr. Brown, may I ask what brings you here in person? Please speak frankly.” Lin Haoran picked up his teacup, gently blew on the steam, but stared straight at Brown.

Brown nodded slightly, his gaze sweeping over He Shanheng sitting next to Lin Haoran. He pondered to himself, but did not suggest that He Shanheng leave.

After all, He Shanheng's status is no longer what it used to be. He has transformed from the chairman of Hengsheng Bank to the chairman of East Asia Bank. The other party must have roughly guessed the purpose of his visit, otherwise they would not have specially asked He Shanheng to come along.

Thinking of this, Brown cleared his throat and said, "Mr. Lin, to be honest, I've come to seek cooperation!"

"Cooperation? Mr. Brown, you might as well just say so," Lin Haoran said with a smile.

“Mr. Lin, then I will be frank. Standard Chartered Bank wants to acquire Huifeng Bank, and we need your cooperation. As for what conditions you require, please tell us directly!” Brown laid out his ambitions in one fell swoop.

Under normal circumstances, with the support of the Governor's Office, the commercial empire of Huifeng Bank would not easily collapse.

In addition, Huifeng Bank itself has a strong foundation and is deeply rooted in Hong Kong's financial sector. Its vast asset network, intricate interest relationships, and years of accumulated reputation give it a certain resilience in the face of external shocks.

Moreover, Huifeng Bank also holds many investment shares, such as a 6% stake in Jardine Matheson. Although Jardine Matheson has withdrawn from the Hong Kong market, they can still sell their shares in Jardine Matheson.

Among the many powerful forces in Hong Kong, Huifeng Bank holds a certain number of shares to varying degrees.

If they can liquidate these shares, Huifeng Bank will be able to raise tens of billions of Hong Kong dollars in a short period of time.

Even though it is in trouble now, a lean camel is still bigger than a horse. It is by no means an easy thing for East Asia Bank to defeat it so easily.

But what if Standard Chartered Bank stabs you in the back?
For the Governor's Office, although they advocated for financial market freedom, the financial industry was related to British interests, and they could not allow Lin Haoran, a Chinese, to occupy too much market share.

Therefore, the Governor's Office would not allow the Bank of East Asia to dominate the market, but would instead fully support Hui Fung Bank and help it overcome its difficulties.

However, if Standard Chartered Bank gets involved and intends to take over the British interests of Huafeng Bank, the Governor's Office will definitely not object, and may even welcome it.

After all, Standard Chartered Bank, as a long-established British bank headquartered in London, has deep British capital and political connections, making its interests more aligned with those of the Governor's House. In short, the Governor's House considered Standard Chartered Bank one of their own.

With Standard Chartered Bank stabbing Huifeng Bank in the back and leveraging the support it secretly obtained from the Governor's Office, Brown believed that it was not impossible to completely destroy Huifeng Bank and complete the acquisition, provided that Lin Haoran cooperated.

It's important to understand that Standard Chartered Bank currently holds less than 10% of the market share in Hong Kong. For them, successfully acquiring HSBC would undoubtedly be a major leap forward in Standard Chartered Bank's development in Hong Kong!

This represents another significant leap forward in Standard Chartered Bank's overall overseas expansion.

Furthermore, Huifeng Bank's overall strength is not inferior to Standard Chartered Bank. If Standard Chartered Bank can take the opportunity to successfully acquire Huifeng Bank at a low cost, then Standard Chartered Bank's strength will double.

Moreover, Brown and other Standard Chartered executives had already conducted detailed calculations in secret.

If Standard Chartered Bank successfully acquires HSBC, its market share in Hong Kong is very likely to surpass that of Bank of East Asia.

Even though Guo Henan, Shao Yifu, Liu Luanxiong and others plan to transfer funds to Bank of East Asia, which will add more than HK$20 billion to Bank of East Asia's capital scale, Standard Chartered Bank is confident that it can overtake them in market share through this acquisition.

At that time, wouldn't Standard Chartered Bank become the true hegemon of Hong Kong's financial industry?
Brown felt a surge of excitement at the thought.

Lin Haoran put down his teacup, gently stroking the rim with his fingers. A meaningful smile appeared on his lips: "Mr. Brown, your idea is bold, but acquiring Huifeng Bank is no small matter. What makes you think I will cooperate with you?"
"You know, if there really was an opportunity to acquire Huifeng Bank, I would have wanted to acquire it myself. Why would I give this opportunity to you?"

Brown was slightly taken aback, a hint of surprise flashing in his eyes, but he quickly regained his composure.

He quickly composed himself, a deeper smile spreading across his face, and said, “Mr. Lin, with your shrewdness, you can naturally see the advantages and disadvantages involved. Let’s be frank. Huifeng Bank has a solid foundation. Even though it is currently in deep trouble, it would be extremely difficult for East Asia Bank alone to completely defeat it and complete the acquisition.”

Moreover, Mr. Lin, you are well aware that East Asia Bank has almost no chance of successfully acquiring Huifeng Bank. Just like how you once used Hongkong Land Group to gain control of Jardine Matheson, but in the end you had no choice but to give up control of Jardine Matheson.

Mr. Lin, you are certainly well aware of the key reason for this: you are not British and cannot represent the interests of Britain!
In Hong Kong's financial and commercial spheres, British influence was deeply entrenched. The Governor's Office and numerous British-funded entities formed an invisible net, tightly controlling key industries and core interests.

As a former dominant force in Hong Kong's financial sector, Huafeng Bank had a complex background and interests with British capital, making it far beyond the reach of a Chinese-owned bank like Bank of East Asia.

The British government will never allow a Chinese-owned bank to monopolize Hong Kong's financial system; this is a situation they absolutely cannot tolerate.

Mr. Lin, take a look at Standard Chartered Bank. The situation is quite different. Our headquarters are in London, with deep roots in the UK. We are controlled by several top British financial groups, and our network of connections is as vast as the stars.

We have close and intertwined relationships with the Governor's Office and numerous British financial groups. If Standard Chartered Bank were to acquire Huifeng Bank, the Governor's Office would undoubtedly provide full support, and might even secretly offer us numerous conveniences to facilitate the smooth progress of the acquisition.

"Since we can't acquire it, why should we support Standard Chartered Bank's acquisition of Huafeng Bank? Wouldn't that just create another powerful competitor for Bank of East Asia?" Lin Haoran said with a calm smile.

Brown, the senior executive, was prepared and said sincerely, "Mr. Lin, please don't rush to refuse. That's why I said earlier that you should state your conditions, and we at Standard Chartered Bank will do our best to meet them as long as they are within our capabilities."

Cooperation should naturally benefit both parties. Standard Chartered Bank certainly wouldn't allow East Asia Bank to gain nothing while expecting you to cooperate in our acquisition of Huafeng Bank. We are well aware of this.

We are well aware that this cooperation requires careful consideration from Bank of East Asia, but in the long run, it will be of great benefit to both parties.

Lin Haoran frowned slightly, and after a moment's thought, he said, "Mr. Brown, your request for cooperation is too sudden for us. Mr. He and I need to discuss it privately. What do you think?"

Brown nodded slightly, a polite smile on his face: "Of course, Mr. Lin and Mr. He, please feel free to discuss it. I will wait here."

Lin Haoran and He Shanheng got up and slowly walked to the other side of the study, deliberately keeping their distance from Brown.

"Haoran, what do you think of Standard Chartered Bank's cooperation proposal?" He Shanheng broke the silence first, his brows furrowed.

Standard Chartered Bank has such ambitions that it intends to take advantage of Huifeng Bank's crisis, stab it in the back, and then acquire it.

This was beyond their expectations.

Before they came, they had considered that Standard Chartered Bank might want to profit from Huifeng Bank, but they did not expect the other party to have such a big appetite and want to swallow it up directly.

Lin Haoran's eyes were deep, and he tapped his fingers lightly on the windowsill. He said in a deep voice, "Standard Chartered Bank's move is indeed unexpected, but upon closer inspection, it makes sense. With Huifeng Bank in deep trouble, it is a once-in-a-lifetime opportunity for Standard Chartered Bank."

If the acquisition is successful, their position in Hong Kong's financial market will be greatly enhanced, and they may even surpass our Bank of East Asia to become the leader in Hong Kong's financial sector. Everyone wants to be that leader, so it's normal for them to have this idea.

He Shanheng frowned with worry: "If they succeed in the acquisition, we will have another strong competitor. Standard Chartered Bank's overall strength is in no way inferior to Huifeng Bank. In emerging markets such as Africa, South Asia and the Middle East, their retail banking business is thriving, and their influence in Europe far exceeds that of Huifeng Bank."

In terms of internationalization, Huifeng Bank is no match for Standard Chartered Bank. Once Standard Chartered Bank acquires Huifeng Bank, its strength will inevitably achieve a qualitative leap.

"At that point, things won't be easy for us in Hong Kong's financial market. Not only will we have to contend with a stronger competitor, but we might also lose our current market share advantage."

Lin Haoran nodded slightly and said with a smile, "Uncle He, I understand what you're saying, but from another perspective, if we can reach a cooperation agreement with Standard Chartered Bank, we might also be able to obtain huge benefits from it."

Standard Chartered Bank's acquisition of Huifeng Bank will inevitably require a huge price, both in terms of capital and resources. During this process, we can propose some favorable terms. If the benefits we gain are sufficient, then why not let them acquire Huifeng Bank?

Why was Bank of East Asia able to rise so rapidly under his leadership?
Most importantly, it was because he controlled several corporate giants in Hong Kong, such as Hongkong Land, Hong Electric, and Hong Kong Telephone.

These factors alone are enough to make Bank of East Asia invincible.

Therefore, in Lin Haoran's view, whether it is Huifeng Bank or Standard Chartered Bank, they are just the same. So what if they have a different competitor?
As Brown said, Lin Haoran also knew that he could not acquire Huifeng Bank.

In other words, he will never be able to monopolize Hong Kong's financial industry as he did before with Huifeng Bank.

In that case, why doesn't he take this opportunity to gain more benefits for himself?
If handled properly, Standard Chartered Bank's acquisition of HSBC might become an opportunity for Bank of East Asia to reach new heights.

After listening, He Shanheng's brows gradually relaxed. After thinking for a moment, he said, "Haoran, your idea is indeed bold and forward-thinking. Since you have the idea of ​​cooperation, then we need to consider what conditions to propose!"

The two immediately fell silent.

This happened so suddenly that they hadn't considered it beforehand, and for a moment, they really didn't know what conditions to propose to maximize the protection of East Asia Bank's interests.

The sunlight outside the window filtered through the dappled leaves and fell on the study floor, creating shimmering shadows, but it couldn't illuminate the somewhat heavy thoughts in the two people's minds.

Lin Haoran paced slowly in the study, his mind racing through various possible scenarios.

Suddenly, he stopped, his eyes lit up, and he turned to He Shanheng and said, "Uncle He, I have an idea. First, Standard Chartered Bank has a certain influence in the international market. We can ask them to establish a strategic partnership with Bank of East Asia in terms of overseas business expansion."

For example, in our business development in emerging markets, we can support each other, share resources, and jointly explore overseas markets. This will greatly promote the international development of our Bank of East Asia.

What Bank of East Asia lacks most right now is experience and resources in the international market.

Once things have calmed down in Hong Kong, the Bank of East Asia will need to consider how to go international.

Although a cooperation agreement had been reached with Citibank, relying solely on Citibank is far from enough to support Bank of East Asia's comprehensive and in-depth expansion onto the international stage.

Although Citibank is a powerful bank, the cooperation between the two parties may have certain limitations, and may not be able to fully meet the development needs of Bank of East Asia in many business areas and the expansion into emerging markets.

Standard Chartered Bank has cultivated the international market for many years and has unique channels and resources. If we can join hands with them in overseas business expansion, it will undoubtedly open more doors to the international market for Bank of East Asia.

Moreover, although Bank of East Asia has achieved remarkable results in Hong Kong, it still has a long way to go before it can make a name for itself on the international financial stage.

Establishing a strategic partnership with Standard Chartered Bank in overseas business expansion is undoubtedly a shortcut to rapidly enhance internationalization.

He Shanheng nodded slightly, and said thoughtfully, "This condition is good. It allows us to leverage Standard Chartered Bank's existing advantages in the international market to quickly accumulate experience, expand our network and resources, and lay a solid foundation for Bank of East Asia to gain a foothold on the international stage. However, this one condition is not enough. We also need to strive for benefits in more key areas."

Lin Haoran continued, "That's right, Uncle He. We can ask Standard Chartered Bank to provide East Asia Bank with some financial compensation during the acquisition process. After all, we have invested a lot of resources and energy to deal with the competition that Huifeng Bank may bring."

He Shanheng's eyes suddenly lit up, and he added with a smile: "In addition, we might as well boldly propose that Standard Chartered Bank, with its connections and influence in Hong Kong's financial circles, should fight for a banknote-issuing right for our Bank of East Asia."

It's important to understand that the right to issue banknotes is a crucial symbol of a bank's status and strength. As one of Hong Kong's leading financial giants, how could our Bank of East Asia demonstrate our dominant position and formidable market influence in Hong Kong's financial sector if we didn't even possess the right to issue banknotes?

The two of them talked back and forth, gradually clarifying the terms of cooperation.

(End of this chapter)