In Hong Kong, we build a global business empire

Chapter 664 Huifeng Bank's Market Value Falls to Less Than 30 Billion

Just as the three were discussing how to resolve Huifeng Bank's current crisis in the office, there was a knock on the door.

The three of them immediately stopped talking.

"Come in!" Shen Bi shouted from outside the door.

The person who came in was Shen Bi's assistant.

However, at this moment, the assistant looked flustered, opened the door and shouted to the three of them, "Something terrible has happened!"

"What's the matter that you're in such a panic? Tell me slowly," Shen Bi said with some dissatisfaction.

The assistant took a deep breath, trying to calm his erratic breathing. His hands trembled as he handed a document to Shen Bi, speaking rapidly as if pouring out beans: "Just now, Swire Group released an announcement stating that they will transfer all of their financial businesses to Standard Chartered Bank within a week!"

Upon hearing this, Shen Bi, who had just reached out to take the documents from his assistant, felt as if his fingers had been burned, and the documents instantly slipped from his stiff hand and fluttered to the ground.

The office fell into a deathly silence; the air seemed to freeze.

The other two executives also stared wide-eyed, their faces filled with disbelief.

Swire Group is now one of the most important partners of HSBC. Swire Group has at least tens of billions of Hong Kong dollars in its funds at HSBC!
As a British-owned enterprise with over a century of history, Swire Group is one of the four major trading houses in Hong Kong. Its business scope is extremely vast, involving a wide range of fields such as real estate, aviation, hotels, industry, and shipping. It is a diversified business giant spanning land, sea and air.

Among British-owned enterprises in Hong Kong, Swire Group has always held a pivotal position, with its market capitalization consistently ranking among the top ten listed companies in Hong Kong.

In the past two years, with the privatization and delisting of Hongkong Land Group, the exit of Jardine Matheson from the Hong Kong market, and the sharp decline in the share prices of Huafeng Bank and Hang Seng Bank due to the rise of Bank of East Asia, Swire Pacific's market capitalization ranking has been rising all the way up. It is now firmly among the top five listed companies in Hong Kong and can be called a giant enterprise in the Hong Kong business community.

Cathay Pacific, one of the most famous airlines, is one of the businesses under Swire Group.

If such a company were to terminate its cooperation with Huifeng Bank, it would undoubtedly be a devastating storm for Huifeng Bank.

The withdrawal of tens of billions of Hong Kong dollars is like a sharp cut to HSBC's already fragile cash flow, which will definitely trigger a series of chain reactions.

Especially now that the funds from the Financial Services Department have not yet arrived.

Shen Bi was the first to break free from the shock. He reacted quickly, squatting down instantly and eagerly picking up the documents that had fallen to the ground. He flipped through the papers rapidly, trying to dig out a glimmer of hope or hidden clues from this seemingly ordinary announcement.

However, this was just an ordinary announcement.

The announcement was concise and straightforward, clearly stating that, out of concern for the safety of Swire Group's funds, and after careful consideration by all senior management, Swire Group would terminate its financial business cooperation with Huafeng Bank and instead shift its focus to Standard Chartered Bank, another major British bank.

It's important to know that Swire Group is one of Huafeng Bank's most important partners.

Over the years, the relationship between the two sides has become deeply intertwined, far exceeding the scope of general financial cooperation.

In the investment field, they have reached a deep integration where "you are in me and I am in you," and even hold shares in each other, with their interests closely intertwined.

But now, Swire Group has so quietly and without warning issued a public announcement, unilaterally declaring this major decision, without having consulted with Huifeng Bank in the slightest beforehand.

This sudden turn of events was like a heavy hammer blow to the hearts of everyone present, and a sense of despair spread rapidly throughout the office like a dark cloud.

Betrayal, this is definitely betrayal!

At the most critical moment for Huifeng Bank, Swire's actions were tantamount to stabbing Huifeng Bank in the back, making its already difficult situation even worse.

Shen Bi's face was terribly gloomy. He gripped the announcement tightly, his knuckles turning white from the force.

He knew that this was not the time for anger and complaints; he had to come up with a solution as soon as possible, otherwise Huifeng Bank might collapse completely in this crisis.

“Mr. Shen Bi, please call Mr. Schjöck immediately and ask him what exactly happened,” John Bao said in a deep voice, quickly regaining his composure.

Shen Bi nodded upon hearing this.

He quickly picked up the phone from the table, his fingers rapidly dialing the number pad, each stroke seemingly carrying his current anxious and angry emotions.

The busy tone on the other end of the phone felt like a hammer blow to Shen Bi's heart, making him increasingly irritable.

Finally, the call was connected.

Suppressing his anger, Shen Biqiang tried to make his voice sound calm: "Mr. Schjöck, I just saw the announcement from Swire Group that you plan to transfer all your financial business to Standard Chartered Bank within a week."

I want to know, what exactly happened? We've been working together for years, why did you make this decision so suddenly and without warning, without even consulting us?

There was a moment of silence on the other end of the phone, then Schjoker slowly said, "Mr. Sir Michael Sandberg, this is a decision made after careful consideration by our senior management. The Hong Kong financial market has been turbulent recently, and we have witnessed the crisis facing Huifeng Bank. For the sake of Swire Group's financial security, we have no choice but to make this adjustment, and we hope you can understand."

Shen Bi was trembling with anger. He raised his voice: "Understand? Mr. Schjöck, although our Huifeng Bank is currently facing some difficulties, it is far from being beyond repair."

"Your withdrawal at this time is undoubtedly pushing us into a dead end. Are our years of cooperative relationship really so fragile?"

Schjörk sighed: "Mr. Sambi, the business world is like a battlefield. We are also thinking of our own interests. I'm sorry!"

“Mr. Schjöck, to be frank, even if your Swire Group insists on transferring funds out, our Huifeng Bank simply doesn’t have that much cash in stock right now. Doing so will only put both sides in a desperate situation, resulting in a lose-lose situation!”

Sir Michael Sandberg's voice trembled slightly with emotion: "If Huifeng Bank collapses, the entire Hong Kong financial market will be turned upside down. As a prominent giant in Hong Kong's business community, isn't Swire Group afraid of being swept up in this storm and suffering incalculable losses?"

The other end of the phone fell into dead silence again. After a moment, Schjöck's voice rang out, carrying an undeniable firmness: "Mr. Shampi, in the end, our Swire Group is nothing more than a client of your Huifeng Bank."

What you should be worrying about now is how to raise our funds. As for how to raise them, that's your own problem, Huifeng Bank!

Shen Bi wanted to say something, but then he heard the busy tone of the phone being hung up.

As for Swire Group, they already knew that Huifeng Bank's cash flow was on the verge of collapse, so it was indeed impossible for them to transfer funds at this time.

However, Swire Group was not worried at all, because they knew that once Standard Chartered Bank successfully acquired Huafeng Bank, their funds in Huafeng Bank would naturally be safe and sound.

He put the phone receiver back with a grim expression and remained silent.

It's over, it's over.

John Bao and William Puwei looked at each other, the atmosphere in the office so oppressive it was hard to breathe.

John Paul moved his lips, as if he wanted to say something to comfort Shen Bi, but he didn't know where to begin, and in the end he just let out a heavy sigh.

Originally, Huifeng Bank was already facing an intractable crisis. Now, Swire Group's actions are like kicking a precarious building hard, making this already fragile financial edifice vulnerable to collapse at any moment.

“No wonder Standard Chartered Bank has been ignoring our loan requests lately. It turns out this was premeditated. They’ve been colluding with Swire Group behind the scenes. Besides, I suspect the Governor’s Office has already discussed this with them as well!” Pu Weishi muttered.

Once Swire Group released this announcement, the consequences were obvious.

An even more turbulent wave of bank runs swept in like a burst dam, causing the stock price to plummet like a kite with a broken string, and customer trust to collapse instantly like a building crumbling... A series of crises, like a surging tide, crashed down on Huifeng Bank.

Who can lend a helping hand and save Huifeng Bank from its dire straits?

At this moment, the three people present were filled with despair and wanted to abandon this mess that was riddled with problems and just leave.

After a long silence, Sir Michael Sandberg finally spoke: “Mr. Pewter, please call the major shareholders of Huifeng Bank and tell them about our current situation; Mr. John Paul, please find a way to have our colleagues in England discuss loan matters with Barclays Bank, Lloyds Bank, and others. Don’t miss any opportunity, even if there is only a sliver of hope. As for Standard Chartered Bank, there is obviously no point in having any illusions anymore. They are definitely eyeing our market share; as for me, I will go to the Governor’s residence first and see what their attitude is.”

The two nodded and were about to go about their business when the doorbell rang again.

This time, it was John Bao's assistant who came in.

"Just now, Wheelock & Co. officially announced that they will terminate their cooperation with Huifeng Bank and switch to cooperating with Standard Chartered Bank." The assistant said, handing over a notice.

Upon hearing this, the three of them widened their eyes again, as if struck by a bolt from the blue. The despair that had just subsided instantly surged back like a raging tide.

This is truly a case of one problem leading to another, like misfortunes never coming singly.

Shen Bi felt a sudden dizziness, his body swayed, and he almost lost his balance.

John Bao and Wei Shi were also deathly pale, their lips bloodless, and their eyes filled with terror and helplessness.

“This…this is impossible!” John Bao’s voice trembled.

Wheelock & Co., one of the four major trading houses in Hong Kong, was a top player in real estate, shipping and trade. Although it was not as powerful as Swire Group, it was still a formidable giant.

Originally, the four major foreign firms were all important partners of Huifeng Bank. However, with Jardine Matheson's withdrawal from Hong Kong and the acquisition of Jardine Matheson's subsidiaries such as Hongkong Land by Lin Haoran, Huifeng Bank still had three major foreign firms as partners.

Now that Swire and Wheelock have announced the termination of their cooperation with Huifeng Bank, Huifeng Bank is now left with only Hutchison Whampoa.

The funds involved in Wheelock & Co. also amounted to several billion Hong Kong dollars.

At that moment, all three of them had the same thought: "Huifeng Bank is doomed."

How can we save this?
The successive betrayals of Swire and Wheelock by Huifeng Bank have plunged the bank into an abyss of no return.

As expected, long queues are probably forming at the branches of Hui Fung Bank throughout Hong Kong right now, and a run on the bank is beginning.

Even if the Governor's Office were to bring out the more than HK$10 billion from the Financial Secretary, it wouldn't be enough to salvage the situation. The crisis of confidence had completely erupted, spreading like a rampant plague through Hong Kong's financial sector, causing widespread panic and paranoia.

Shen Bi walked to the floor-to-ceiling glass window and looked down. He saw that the main branch's business hall downstairs was already crowded with people, and many people were coming from all directions, either by car or by jogging.

Obviously, everyone has already received the message.

Shen Biqiang, supporting his swaying body, his eyes revealing determination and unwillingness, gritted his teeth and said, "We can't give up like this. Even if there is only a sliver of hope, we must fight with all our might."

His voice trembled slightly, but it was full of determination.

Even if Huifeng Bank is truly beyond saving this time, he still has to give it his all.

John Bowie took a deep breath, trying to calm himself down, and said, "That's right, now is not the time to despair. Pewter, go and contact the shareholders first, and see if they can give us some help with their connections. I'll go and arrange the communication with the banks in the UK right away."

Pu Weishi nodded heavily, and the three of them quickly sprang into action. Despite their gloomy mood, they had to shoulder the heavy responsibility of saving Huifeng Bank.

Shen Bi dragged his heavy steps out of his office and headed to the Governor's Mansion.

Throughout the journey, the announcements from Swire and Wheelock & Co. terminating their cooperation, and the impending doom of Huifeng Bank, kept flashing through his mind.

Passing by several branches of Huifeng Bank and Hengsheng Bank, I saw the same chaotic scene. Many customers were crowding outside the branches, shouting loudly that they wanted to withdraw money. The staff were busy and overwhelmed, but they were unable to quell the panic of the crowd.

As a subsidiary of Huifeng Bank, Hengsheng Bank has inevitably been implicated at this moment.

Shen Bi frowned, his worries deepening.

As a subsidiary of Huifeng Bank, Hengsheng Bank is bound to Huifeng Bank for both prosperity and adversity.

Now that Huifeng Bank is in dire straits, Hengsheng Bank is also struggling to escape unscathed; the destructive power of this storm far exceeds his imagination.

……

At this moment, the announcements issued by Swire Group and Wheelock & Co. had already spread throughout Hong Kong at an extremely fast pace.

The entire Hong Kong financial community was instantly in an uproar. People were discussing the impending collapse of Huifeng Bank in the streets, alleys, teahouses, and taverns.

Major media outlets also sprang into action, dispatching reporters to Huifeng Bank's branches and other relevant locations to grab the first-hand news.

Customers of Huifeng Bank flocked to its branches from all directions, worried about the funds they had deposited there.

At this moment, no matter how much the senior management of Huifeng Bank tried to appease them, it all seemed so pale and powerless.

Everyone knows that Huifeng Bank's business empire may really be collapsing this time.

Who can save Huifeng Bank?

This caused panic among many customers who hadn't yet withdrawn their money. Many even had to take time off work and rush to Huifeng Bank's branch to join the long queue for withdrawals.

Their faces were anxious, their eyes filled with panic and unease. Many citizens kept muttering, "What should we do? If we really can't withdraw the money, then all my savings will be gone!"

Meanwhile, chaos reigned at the four major stock exchanges in Hong Kong.

Huifeng Bank's stock plummeted like a kite with a broken string on the simple LED screen in the trading hall, each price fluctuation gripping the hearts of countless investors.

Traders were shouting themselves hoarse, trying to complete trades amidst the chaos, but panic had completely taken over. Buy and sell orders were flying around like snowflakes, but few were actually executed.

"Sell! Sell now!" an investor roared at his broker, his eyes red. His voice was particularly jarring in the noisy trading hall.

Last time, as various Hong Kong business tycoons voiced their support, and later the Governor's Office also voiced its support, the share price of Huafeng Bank gradually stabilized.

Many investors are betting that HSBC Bank can rise again in the future and are rushing to buy at the bottom.

However, the announcements from Swire and Wheelock & Co. at this moment were like a sharp dagger, completely shattering the illusions of these investors.

If we don't sell now, when will we?
If Huifeng Bank goes bankrupt, wouldn't I be going to "die along" with Huifeng Bank?
Investors were frantic, and the wave of selling surged, causing Huifeng Bank's share price to plummet to a record low in a short period of time.

Fortunately, the Hong Kong stock market does not have a daily price limit mechanism, otherwise these investors might not even have the right to sell their shares today.

East Asia Bank headquarters, Chairman's office.

At this moment, Lin Haoran and He Shanheng were both sitting on the sofa in the office.

The situation outside naturally reached them immediately.

"Standard Chartered Bank's speed is really fast!" He Shanheng couldn't help but exclaim, his tone full of amazement.

"That's right. They just signed the contract with us yesterday, and today they couldn't wait to make a move against Huifeng Bank. This move is ruthless and decisive, pushing Huifeng Bank to the brink of ruin and leaving it with no chance of recovery!" Lin Haoran nodded and agreed.

As a British-owned company, Standard Chartered Bank showed no mercy in its attack on HSBC.

This is truly disheartening. In the face of self-interest, friendship and affection become utterly worthless!

"Watching Huifeng Bank, once the dominant force in Hong Kong's financial world, collapse before my very eyes, I truly realized that the cruelty of the business world far exceeds my imagination!" He Shanheng sighed deeply.

At this moment, the old man's eyes were filled with complex emotions: regret for the passing of Huifeng Bank's former glory, a subtle sense of satisfaction at its defeat, and a deep understanding of the ruthless competition in the financial market.

Even after a lifetime in Hong Kong's business world, I still find it unbelievable that Huifeng Bank is facing its current situation.

Previously, Huifeng Bank was a powerful force in Hong Kong's financial world, and many companies and individuals considered it an honor to cooperate with it.

But now, things have come to this, truly showing how unpredictable life can be.

"It deserves it!" Lin Haoran laughed.

"Haoran, the reason Huifeng Bank has fallen to this state is, in a sense, because you indirectly brought it down. Without you, Standard Chartered Bank would never have had the chance to kick Huifeng Bank while it was down!" He Shanheng said with emotion.

It was precisely because Bank of East Asia gradually drained Huafeng Bank's resources that Huafeng Bank's already precarious foundation became increasingly unstable, thus giving Standard Chartered Bank this opportunity.

Otherwise, given Standard Chartered's strength, it might never have had the opportunity to acquire Huafeng Bank.

"It was they who provoked Bank of East Asia. Otherwise, if Bank of East Asia had been allowed to develop slowly, even if Huifeng Bank's market share had inevitably weakened, it wouldn't have come to this. So, I say they deserve it!" Lin Haoran said, crossing his legs.

Just then, Lin Haoran's mobile phone rang.

He picked up the mobile phone and pressed the answer button.

The call was from Dai Shi, the deputy general manager of Galaxy Securities: "Boss, I have something to report to you. In just half an hour, Huifeng Bank's market value has fallen from about HK$9 billion at the opening to less than HK$3 billion."

Currently, the share price is still falling, with almost only sell orders and very few buy orders, causing the share price to drop almost in a straight line. Furthermore, the share price of Hang Seng Bank has been dragged down, falling to around HK$20 billion.

"Oh? Immediately have the trading team start operating covertly. This matter must not be known to anyone. Slowly and secretly accumulate low-priced stocks, whether it's Huifeng Bank or Hengsheng Bank!" Lin Haoran decisively issued the order upon hearing this.

He knew that once Standard Chartered announced its acquisition of Huafeng Bank, the share prices of both Huafeng Bank and Hengsheng Bank would inevitably surge again.

After all, with Standard Chartered's financial support, Huifeng Bank's crisis would naturally disappear.

Although it will become a subsidiary of Standard Chartered Bank, compared with the disastrous state after the stock price crash, it will undoubtedly usher in a huge revaluation.

Hengsheng Bank has a close relationship with Huifeng Bank and is affected by Huifeng Bank's stock price fluctuations. If Huifeng Bank is acquired, Hengsheng Bank's stock price will also rebound due to improved market expectations for its future.

Therefore, although Lin Haoran knew that these two stocks would inevitably continue to fall under normal circumstances, he could not wait until they hit rock bottom before taking action.

"Yes, boss, I'll arrange it right away!" Dai Shi said and went to carry out the order.

After hanging up the phone, Lin Haoran leaned back on the sofa.

Shorting Huifeng Bank was just a small, impromptu decision he made earlier.

At the time, he thought that if Huifeng Bank's market value could fall to HK$10 billion, he would have made a lot of money.

Who would have thought it would fall so much!

This means that his profits from shorting Huifeng Bank have been increasing, far exceeding his expectations.

In fact, the reason why so many shareholders are selling their shares in Huifeng Bank in the stock market is because of Lin Haoran's previous selling behavior.

It was he who sold all 25.6% of the borrowed shares onto the stock market, causing the number of individual shares to increase so dramatically.

Today, these scattered shares are like a flood that has burst its banks, rampaging through the market with panic and driving Huifeng Bank's stock price into a deep abyss.

But Lin Haoran saw an even greater opportunity in this chaos.

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(End of this chapter)