In Hong Kong, we build a global business empire

Chapter 659 Standard Chartered Bank's Bottom Line

If the fact that Bank of East Asia has now surpassed Bank of Hong Kong is not made public, the general public will still perceive Bank of Hong Kong as the largest bank in Hong Kong.

In the business world, factors such as brand awareness, influence, and reputation are like invisible assets that can bring unexpected and substantial benefits to a company.

These intangible values ​​are not only related to a company's brand image, but can also be effectively transformed into tangible benefits in many aspects, such as business expansion, customer trust, and increased market share.

Today, Bank of East Asia has become the largest bank in Hong Kong by virtue of its own strength. If we continue to let Huafeng Bank occupy the top spot, wouldn't that be a waste of Huafeng Bank's resources?
Having led Heng Sheng Bank for many years, He Shanheng has weathered many storms in the business world and is naturally well-versed in industry rules.

He knew very well that he could not allow Huifeng Bank to continue to enjoy the many benefits and dividends brought by its former status as the largest bank after it had already lost its market advantage.

At this moment, he no longer had any feelings for Huifeng Bank; instead, he was filled with hatred.

Back then, Hengsheng Bank was booming and its momentum was unstoppable, but it was brutally and forcibly acquired by Huifeng Bank.

After the acquisition, Huifeng Bank still appointed He Shanheng as chairman, not out of goodwill, but because it understood He Shanheng's pivotal position in Hengsheng Bank!
He Shanheng is like the soul and pillar of Heng Sheng Bank; with him, Heng Sheng Bank can continue to operate.

Hengsheng Bank was, after all, the culmination of He Shanheng's life's work. Even after being acquired, he still couldn't let go of it deep down and only wanted to continue to run it well.

However, Huifeng Bank has acted like a greedy vampire over the years.

Whenever Hang Seng Bank showed any signs of progress or a major breakthrough, it would use its deep-rooted dominance in Hong Kong's financial sector and its parent company status to ruthlessly suppress it, extract profits from Hang Seng Bank at will, and repeatedly and mercilessly cut off Hang Seng Bank's hopes for further development.

Otherwise, given Ho Sin-hang's capabilities, how could Hang Seng Bank have remained trapped in the small market of Hong Kong?
"We must let the market and the public know that a new landscape has been formed in Hong Kong's financial sector, and Bank of East Asia is the undisputed leader!"
"The main reason why Huifeng Bank has remained number one for so many years and attracts so many citizens to entrust their financial transactions to Huifeng Bank is not simply because they believe that Huifeng Bank is the largest bank and such a large bank must be more reliable," He Shanheng continued.

Lin Haoran nodded; he understood what He Shanheng meant.

In the business world, companies should not develop in a low-key manner, but rather should show their strength and achievements to the public when the time is right.

After all, in this age of information overload, even the best wine needs advertising.

If one always hides their talents, even with great strength, they may be drowned out by the noise of the market and find it difficult to gain the recognition and rewards they deserve.

The business battle between Huifeng Bank and Bank of East Asia has been making headlines for the past two months. Although this battle has shown many people the growing strength of Bank of East Asia, the bank has also gained a lot of recognition as a result.

But this recognition is ultimately only short-lived. Once the heat of the business battle fades, in the public's subconscious, Bank of East Asia will still be considered inferior to HSBC.

It's important to understand that this deeply ingrained perception has a significant impact, and without proactive measures and by disclosing the facts, it will be difficult to change the public's preconceived notions. Therefore, Bank of East Asia must take action to correct the public's perception.

Just like consumers, when buying certain products, even if they know that big-name products are expensive, they will still give priority to big-name products.

This is because in their minds, big brands mean more reliable, better quality, and more thoughtful after-sales service, etc.!

Now that Bank of East Asia has become the largest bank in Hong Kong, why should it continue to hide and conceal its secrets?

"Uncle He, you've hit the nail on the head! The Bank of East Asia has risen to prominence and become the new hegemon of Hong Kong's financial world. We should spread this news openly and let everyone know that Hong Kong's financial landscape has been completely transformed!"
Now, it's no longer the era of British conglomerates dominating and reigning supreme; it's the time for Chinese conglomerates to hold their heads high and lead the way!
We need to show the people of Hong Kong that Chinese-owned banks are also incredibly powerful and fully qualified to sit on the throne of Hong Kong's largest bank!
"In terms of strength and management capabilities, our Chinese-owned banks are top-notch, even more reliable and trustworthy than those self-proclaimed superior British banks!" Lin Haoran said, laughing heartily.

Back when Lin Haoran first took over East Asia Bank, Huifeng Bank directly used unfair means to deal with East Asia Bank, which once caused a run on East Asia Bank.

Now that the time has finally come to triumph, it's only natural to settle old scores and let Huifeng Bank taste the bitterness of being ignored by the market and criticized by the public.

Although most mainstream newspapers have been temporarily bought off by HSBC and have significantly reduced their coverage of the bank's problems, this is merely a stopgap measure.

Lin Haoran naturally understood that Huifeng Bank could not possibly maintain this bribery tactic indefinitely.

It's important to know that Lin Haoran is the largest shareholder of TVB, Hong Kong's premier television station. Although he doesn't directly manage the station, he still wields considerable influence within it, and Chairman Shao Yifu can't afford to disrespect him!
The Oriental Daily News, a newspaper with the highest sales volume in Hong Kong, is also a private property under Lin Haoran's name.

Therefore, even if all other media outlets shut up, Huifeng Bank can no longer dominate the public opinion arena.

Furthermore, how could those media outlets willingly watch Oriental Daily monopolize market traffic and enjoy unlimited glory?

Such behavior cannot last.

Media outlets rely on traffic to survive. Without traffic, what kind of media outlet are they? How can they maintain operations, attract advertisers, and ensure the livelihoods of their employees?
Therefore, Huifeng Bank's attempt to manipulate public opinion by bribing several mainstream newspapers is nothing more than drinking poison to quench thirst.

Take today for example. Although major newspapers have temporarily remained silent about the negative news related to Huifeng Bank, this has unexpectedly benefited Oriental Daily News, causing its sales to soar and making a fortune in terms of traffic.

In this light, Huifeng Bank's supposedly brilliant move actually brought considerable benefits to the Oriental Daily News, a classic case of trying to steal a chicken but losing the rice instead.

Lin Haoran placed the report on his desk, picked up his mobile phone, and called Cui Zilong back.

Now that the decision has been made, there's no need to delay any longer. We should give them a reply as soon as possible so they can prepare.

"boss."

“Well, since Universal Research is going to release a report on Hong Kong’s financial industry, then go ahead and release it. Uncle He and I both support you. Bank of East Asia can also take this opportunity to expand its influence!” Lin Haoran said with a smile.

"Okay, boss, I understand. I'll arrange it right away. If all goes well, this detailed report on Hong Kong's financial industry will be published as multiple articles in tomorrow morning's Oriental Daily News!" Cui Zilong said excitedly.

"Well, let's go!"

After hanging up the phone, the office fell silent for a moment.

After a moment, He Shanheng slowly spoke, his voice tinged with emotion: "Haoran, I have to thank you!"

Lin Haoran was slightly taken aback, then smiled and replied, "Uncle He, what are you saying? I should be thanking you for coming to East Asia Bank to help me!"

"I thank you because I am grateful that at the age of 81, you still have the opportunity to lead Hong Kong's most powerful bank and give me a glimpse of the dawn of realizing my lifelong dream!" He Shanheng's eyes shone with light, as if he had returned to the passionate era when he was fighting for the financial industry.

At 81 years old, he should have been enjoying his retirement long ago.

But he still harbored a strong desire to give up, and he was unwilling to let it go so easily.

Hengsheng Bank was like a long and complicated entanglement that exhausted his energy in the latter half of his life, but it did not allow him to achieve his heart's desire.

Now, as he bids a painful farewell to Hengsheng Bank, he is surprised to find that the drive in his bones has not been worn down by time, but has instead burned even brighter on the new stage of East Asia Bank!
Today, Bank of East Asia has surpassed Bank of Hong Kong to become the largest bank in Hong Kong.

Moreover, he even had a great chance to use East Asia Bank to acquire Heng Sheng Bank.

All of this would have been unimaginable just two months ago.

……

In the City of London, opposite the headquarters of the Bank of England, stands a building over twenty stories high.

This building is the headquarters of Standard Chartered Bank, a name known to everyone in Hong Kong.

Despite its headquarters being in London, UK, Standard Chartered Bank is actually a well-established international bank!

From its inception, it has followed a globalization path. In the 19th century, it had already expanded its market to South Asia, the Middle East, Southeast Asia, Hong Kong, Shanghai, Japan, Africa and other places. In the following hundred years, through a series of mergers and acquisitions, its business has spread to dozens of countries and almost across the five oceans, making it a true multinational giant.

In terms of internationalization, Huifeng Bank is at best a primary school student compared to it!
At this moment, a heated discussion is taking place in a luxurious and spacious conference room in the building.

In the past two or three days, five or six meetings have been held in this conference room.

However, each time, a decision that satisfied all the senior executives was not reached.

Regarding their cooperation with Bank of East Asia, they failed to reach an agreement on the bottom line.

If the bottom line is not agreed upon, it will be difficult to negotiate with the Bank of East Asia.

After all, they themselves have not yet clearly defined the boundaries of what they can compromise and what they can stand firm on in the cooperation. If they rashly start negotiations, they are very likely to fall into a chaotic and disorderly situation, or even be exploited by the Bank of East Asia, putting them in a passive position in subsequent cooperation.

But the top executives at Standard Chartered Bank were well aware that this was a once-in-a-lifetime opportunity.

If Standard Chartered Bank misses out, it will undoubtedly be an immeasurable and enormous loss.

Hong Kong, as one of the most important financial centers in Asia and even the world, has a crucial position and enormous influence of its financial market in the global economic landscape, which is something that Standard Chartered Bank's senior management is well aware of.

This can be seen from the scale of Huifeng Bank's past funding alone.

In fact, Standard Chartered Bank's total capital size is roughly equivalent to that of HSBC, including its subsidiary Hang Seng Bank, in Hong Kong. However, HSBC's main market is limited to Hong Kong, while Standard Chartered Bank's business footprint spans the globe.

With such a comparison, the superiority is immediately apparent.

Despite relying solely on the small market of Hong Kong, Huifeng Bank has achieved a scale of funds and business volume that rivals Standard Chartered Bank's market share accumulated in dozens of countries.

In the past, it would have been tantamount to Standard Chartered Bank overestimating its own capabilities to attempt to acquire HSBC.

However, now, Huifeng Bank is mired in a crisis. Although the Governor's Office has stepped in to try to stabilize the situation, Standard Chartered Bank, as one of the most important banks in Hong Kong's financial sector, is well aware of the situation.

If they seize the right opportunity to deliver a fatal blow to Huifeng Bank from behind, Huifeng Bank will inevitably fall into a real predicament of broken capital chain.

By then, it would be no pipe dream for them to acquire Huifeng Bank at a very low price.

However, the conditions proposed by Bank of East Asia were like sharp thorns, deeply piercing the hearts of Standard Chartered's senior management, making them feel extremely troubled.

Whether it's demanding that they hand over the international resources they've painstakingly accumulated over a century to the Bank of East Asia, or asking for an astonishingly large sum of compensation;
Whether it was asking them to use their influence to help Bank of East Asia acquire the strategically important right to issue banknotes in Hong Kong, or proposing to transfer Heng Sheng Bank to Bank of East Asia, every condition was a core interest that Standard Chartered Bank could not give up. Each one was like a heavy boulder, making it hard for Standard Chartered Bank's senior management to breathe.

On the other hand, Bank of East Asia presented these four conditions all at once, which was tantamount to making exorbitant demands. How could Standard Chartered Bank's senior management easily agree to such a request?

They did want to avoid targeting Huafeng Bank by avoiding the Bank of East Asia, but everyone knew that was simply unrealistic. The Bank of East Asia was the current financial powerhouse in Hong Kong, and if they tried to make any moves, the Bank of East Asia could thwart their plans at any time.

If we can't avoid it, then we have no choice but to cooperate and bring East Asia Bank over to cooperate with us.

"These conditions are practically driving Standard Chartered Bank to the brink of collapse!" A senior executive slammed his fist on the table in anger, his face filled with both rage and helplessness.

“Yes, international resources are what we have painstakingly accumulated over the years. They are the foundation of our foothold in the global financial market. East Asia Bank wants to take advantage of this opportunity to make us share international resources directly. They are simply creating an international competitor for ourselves!” another senior executive said with a wry smile.

"Furthermore, regarding the compensation demand, given their exorbitant asking price, they probably won't be able to meet it without at least HK$1 billion. But if Standard Chartered Bank were to acquire Huifeng Bank, or even just suppress Huifeng Bank to lower the acquisition cost, it would still be a substantial sum. At that point, we'll be short of funds ourselves, so how can we possibly afford to compensate them?" a senior executive sighed.

The latter two conditions were even more difficult, and they didn't mention them. But the first two conditions alone were already hard for them to agree to.

Objectively speaking, Standard Chartered Bank certainly had the capability to secure Hong Kong's banknote issuance rights for Bank of East Asia.

It's important to know that Standard Chartered Bank has deep roots in the British business and political circles and wields considerable influence.

It's not entirely a pipe dream for them to grant a colony's local bank the right to issue currency, provided they are willing to pay a sufficient price.

However, this is contingent on "sufficient effort," and this "effort" is precisely what they are most reluctant to give up.

Ultimately, this is a world where interests come first.

To force them to secretly plan the acquisition of Huifeng Bank while simultaneously handing over its subsidiary, Hengsheng Bank, is an excruciating experience akin to having their heart and flesh ripped out.

After all, in today's Hong Kong financial market, the size of Hang Seng Bank's capital is comparable to that of Standard Chartered Bank in Hong Kong.

Even if Standard Chartered Bank successfully acquires Huifeng Bank, losing its subsidiary Hengsheng Bank will still be a significant loss for the bank!
The atmosphere in the conference room grew increasingly heavy, as if the air itself had solidified, creating a suffocating atmosphere.

The higher-ups offered their opinions, but they were unable to find a solution that would satisfy both sides.

"Are we really going to give up this excellent opportunity to acquire Huifeng Bank just because of these harsh conditions from East Asia Bank?" A senior executive asked, his face full of reluctance and his eyes revealing deep worry.

"Huifeng Bank is now at its last gasp. They don't have much capital left. If we just stab them in the back a few times, we can take them over at a very low cost. This is a once-in-a-lifetime opportunity for us to expand into the Hong Kong market and enhance our position in the Asian financial world. A market worth tens of billions of Hong Kong dollars is within our grasp!"

“But East Asia Bank’s conditions are far too harsh. If we agree, it would be tantamount to cutting off our own arm, resulting in heavy losses. We might even face a broken capital chain before we’ve fully digested Huifeng Bank’s market.” Another senior executive said with a frown and deep concern.

“International resources, high compensation, the right to issue currency, and Hengsheng Bank—aren’t these all our core interests? If we relinquish them, Standard Chartered Bank will be at a severe disadvantage in future competition,” an elderly man said.

The Chairman of the Board of Directors of Standard Chartered Group is Lord Derek Barber, the ultimate boss who can be considered the "helmsman" of Standard Chartered Bank. He took over the reins from the former Chairman, Sir Cyril Hawke, and shouldered the heavy responsibility of leading Standard Chartered Bank forward.

During his tenure, Lord Derek Barber bore the heavy responsibility of overseeing and developing Standard Chartered's long-term strategic plans.

With his visionary leadership, he established Standard Chartered Bank's development direction of focusing more on its core business of overseas commercial banking, laying a solid foundation for Standard Chartered Bank's global financial market presence.

However, Lord Derek Barber was significantly different from Sir Michael Sandberg of the Bank of America.

Sir Michael Sandberg had a great deal of autonomy at Huifeng Bank and could often make decisions quickly based on his own judgment.

But Lord Derek Barber could not do so freely.

Standard Chartered Bank has a more complex and rigorous decision-making mechanism and considers the interests of multiple parties. Every decision requires weighing and discussing various aspects.

This is why a meeting can last for two or three days without reaching a definitive decision on a particular issue.

Lord Derek Barber looked at the chaotic state of the conference room and sighed.

Now that Standard Chartered Bank's branch in Hong Kong has such an opportunity to expand its market share, it certainly wouldn't want to miss it.

Even though Huafeng Bank has lost half of its market share to Bank of East Asia, as the saying goes, "a lean camel is still bigger than a horse," its foundation and heritage remain.

If Standard Chartered Bank can successfully complete its acquisition of Huafeng Bank, its position in Hong Kong's financial sector will undoubtedly achieve a qualitative leap, and it will also have an immeasurable positive impact on the overall development of the Standard Chartered Group.

It should be noted that although the amount of funds controlled by Huifeng Bank has shrunk significantly compared to two months ago, the amount of funds involved is still as high as tens of billions of Hong Kong dollars, thanks to the support of its existing partners.

Although most of these funds have flowed out of the bank through investments and loans, causing the bank's cash flow to become precarious and making it difficult to recover funds in the short term, the bank has now been reduced to hoping for help from external forces such as Standard Chartered Bank and intervention from the Governor's Office.

However, as long as Standard Chartered Bank can grit its teeth and get through this difficult period, and as funds gradually flow back, its future development prospects will be bright, and it is expected to make further progress in Hong Kong and even the broader financial market!
Going even further, that would be giants like Citibank.

Therefore, no one present wanted to miss this opportunity.

However, if all four conditions were met, it would be too risky for Standard Chartered Bank.

Their acquisition of Huifeng Bank was somewhat forced, and the price they paid was naturally not small.

If Standard Chartered Bank were to invest even more in Bank of East Asia, it could very well fall into the same quagmire as Huafeng Bank, and might even be dragged down.

"Gentlemen!" Lord Derek Barber suddenly spoke up.

Suddenly, the noisy discussion in the conference room stopped abruptly, and everyone's eyes were focused on Lord Derek Barber.

He slowly stood up, placed his hands on the conference table, and scanned each of the senior executives present.

“I understand everyone’s concerns. Each of these four conditions is indeed a hot potato, making it difficult for us to choose. However, this is also a rare opportunity for Standard Chartered Group to take off after more than a hundred years, and I think no one wants to miss it!” Lord Derek Barber said slowly.

These words immediately drew unconscious nods from many high-ranking officials.

This point has been agreed upon by many high-level officials.

Now, they are worried that if they make too many concessions, Standard Chartered Group will also fall into crisis.

"The four conditions are indeed unacceptable to us. In particular, we would never agree to all four conditions. If we are not careful, Standard Chartered Bank will fall into the same abyss as Huifeng Bank."

But as everyone continued arguing, no consensus was reached. Meanwhile, Huifeng Bank couldn't wait for anyone. If Huifeng Bank found a way to resolve the broken capital chain, then our Standard Chartered Group would miss such a good opportunity to rise!
"In that case, why don't we try to communicate and negotiate further with the Bank of East Asia to see if we can make some compromises and adjustments on these conditions? Continuing to argue here will hardly lead to a consensus!" Lord Derek Barber continued.

“Lord Derek Barber, please continue!” a trusted aide said at this moment.

"We absolutely cannot agree to all four conditions, but if we only agree to two of them, such concessions should be within our acceptable range, so that after we devote all our efforts to acquiring Huifeng Bank, our competitors will seize the opportunity and drag us into an abyss of no return."

"All four conditions have left everyone in a dilemma, making it difficult to decide which ones to concede. Why don't we simply hand over the decision-making power to the Bank of East Asia and let them choose two of them? In this way, both sides will have made concessions. I think everyone can accept this bottom line, right?" Lord Derek Barber looked around the room and continued.

These words immediately sparked a flurry of discussion among those present.

"I'll give you ten minutes to consider. After ten minutes, you'll vote, and the minority will obey the majority!" Lord Derek Barber said again.

Time was running out, and Lord Derek Barber was unwilling to continue arguing like this.

(End of this chapter)