In Hong Kong, we build a global business empire

Chapter 665 Li Jiacheng in Panic
Hutchison Whampoa, Headquarters.

Li Jiacheng was stunned when he saw the information in the intelligence file.

As a director of Huifeng Bank, he knew how much money Huifeng Bank currently had in its accounts.

Therefore, he has been living in fear for the past few days.

However, due to the relevant agreements signed with Huifeng Bank, Hutchison Whampoa and Cheung Kong Holdings could only cooperate with Huifeng Bank in financial matters.

Therefore, he could not directly withdraw large amounts of funds from Huifeng Bank or terminate the cooperation. Even though he was full of worries, he could only pretend to be calm and maintain a superficial cooperative posture.

In addition, although Huifeng Bank is facing this crisis, it still has money in its accounts and can survive.

Moreover, he believed that the financial tycoon Sir Michael Sandberg could resolve the predicament of Huifeng Bank.

Now, Swire and Wheelock have both proposed to transfer all their financial business from Huafeng Bank to Standard Chartered Bank, which means that Huafeng Bank will be completely cut off from its capital chain due to the betrayal of these British companies.

Moreover, the resulting chain reaction would be a fatal blow to Huifeng Bank.

This could lead to a run on the bank, a sharp drop in stock price, a significant downgrade in credit rating, and a situation where no company dares to cooperate with it again.

Once a run on the bank occurs, a large number of depositors rush to Huifeng Bank to withdraw their deposits, and the bank's existing reserves are simply unable to meet such a huge demand.

A credit rating downgrade means that Huifeng Bank's reputation in the financial market is ruined, and other financial institutions will stay away from it and no longer be willing to do business with it.

This will pose significant challenges for Huifeng Bank in obtaining funds and conducting credit business, further exacerbating its tight cash flow situation.

At that point, banks will be forced to sell assets at rock-bottom prices to raise funds, which will further exacerbate market panic, leading to more people joining the bank run and creating a vicious cycle.

In other words, Huifeng Bank may no longer have the funds available.

The problem is that Hutchison Whampoa and Cheung Kong Holdings both have their working capital held in Huifeng Bank!

The daily cash flow between the two major Hong Kong companies resembled a vast and complex financial network, entirely reliant on Huifeng Bank.

The huge sums of money recovered after the hot sales of the properties, the monthly rental and sales payments from the properties, and the business transactions of Hutchison Whampoa spanning multiple fields such as real estate, insurance, hotels, shipping, docks, warehouses, and import and export trade, from large sums of money settled with suppliers to small daily operating income and expenses, all flow through Huifeng Bank.

Just considering salaries, Hutchison Whampoa and Cheung Kong Holdings probably have to pay out hundreds of millions of Hong Kong dollars in wages to tens of thousands of employees every month.

Both of these companies are among the top ten listed companies in Hong Kong, so their cash flow is naturally substantial. The cash flow in Huifeng Bank alone is at least close to HK$10 billion!

With such a massive amount of capital, the consequences would be unimaginable if Huifeng Bank's funding chain were to break.

Li Jiacheng felt a wave of dizziness, as if he had been punched hard in the chest, and almost lost his balance.

He quickly grabbed the corner of the table, took a few deep breaths, and tried to calm himself down, but the anxiety in his heart was not so easy to calm down.
Huifeng Bank's broken capital chain is essentially equivalent to their own capital chain breaking as well.

If all else fails, perhaps the only option is to sell the company's investment shares. The thought flashed through Li Jiacheng's mind, but he quickly shook his head, forcibly suppressing the impulse.

The company is currently facing a huge funding gap. Trying to fill it by selling its investment shares would be like drinking poison to quench thirst.

After all, they had already used up most of their funds when they acquired Hutchison Whampoa shares.

Over the past year, he has devoted himself entirely to consolidating Hutchison Whampoa, which he had finally gained control of, and has had no time to attend to investments in other companies.

For example, although Mr. Wayne, the original head of Hutchison Whampoa, was ousted by Li Ka-shing, the current management of Hutchison Whampoa is still the team left behind by Wayne, such as Richard Shin, Harry Shum, Peter Wayne and others.

For Li Ka-shing today, the most important thing is to cultivate his own confidants within Hutchison Whampoa and gradually squeeze out the management team left behind by Wayne Lai.

It's not that there's no way to solve the funding problem. For example, he could use his shares in Cheung Kong Holdings and Hutchison Whampoa as collateral for a loan, which would definitely solve the funding problem in the short term.

The problem is that these stocks he holds are his private assets.

Both Cheung Kong Holdings and Hutchison Whampoa are listed companies.

Li Jiacheng was well aware that if he used his privately held shares to secure loans to solve the company's funding problems, the stakes involved would be incredibly complex, and a slight misstep could trigger a series of unpredictable consequences.

From the company's perspective, shareholders are already highly concerned about the safety of the company's funds and its operational status.

If they learned that Li Jiacheng had used private stock as collateral for loans to fill the company's funding gap, they would inevitably speculate whether the company had reached a dead end, which could trigger a panic sell-off and cause the stock price to plummet.

This is undoubtedly a heavy blow to Cheung Kong Holdings and Hutchison Whampoa, two influential listed companies in Hong Kong. It will not only harm the interests of many shareholders, but also cause the companies' reputation in the market to plummet.

From a personal perspective, these stocks are the result of his years of hard work and wise investment, and are an important support for his business empire.

Mortgage loans mean putting these assets at risk. If there are problems with the subsequent return of funds and the loan cannot be repaid on time, he may lose control of these shares, which in turn will affect his status and influence in the two companies.

Therefore, he is unwilling to take this path unless absolutely necessary.

Using company assets as collateral for loans can also alleviate financial pressure.

However, no matter what, it cannot fundamentally eliminate the potential risks brought about by this crisis, and this measure itself also has many drawbacks.

After all, with nearly HK$10 billion in funds held by Huifeng Bank, if Huifeng Bank were to go bankrupt due to a broken capital chain, wouldn't the nearly HK$10 billion in funds held by its two major companies be essentially frozen?
If this nearly HK$10 billion is lost, both Hutchison Whampoa and Cheung Kong Holdings will be plunged into an unprecedented crisis.

At that point, the debt ratio could be two or three times the actual assets, and then we'd really be doomed.

How long will it take for Hutchison Whampoa and Cheung Kong Holdings to earn nearly HK$10 billion in profits to pay off their debts?

Moreover, once the financial report shows a deficit, aside from anything else, there will be a sense of unease within the company, with employees worrying that their wages will not be paid on time, which will greatly reduce their work enthusiasm.

Some core technical personnel and key business personnel may even secretly seek new job opportunities, fearing that they will be unemployed if the company goes bankrupt.

Suppliers would also call one after another, demanding payment in advance, or they would stop supplying goods.

A previously stable supply chain can suddenly become precarious.

This nearly HK$10 billion in working capital is of paramount importance to Hutchison Whampoa and Cheung Kong Holdings.

Thinking about the consequences, Li Jiacheng couldn't calm down again.

He finally achieved his current success, starting from a small plastics factory and eventually controlling two business giants, Hutchison Whampoa and Cheung Kong Holdings. Only he knows the hardships and sacrifices he made along the way.

Every decision he made and every struggle he made was the culmination of his hard work and wisdom. How could he accept that it would all be destroyed because of the crisis at Huifeng Bank?

Given the current state of Huifeng Bank, it seems unlikely that there is any possibility of a turnaround.

Li Jiacheng frowned and paced back and forth in his office, his steps hurried and heavy, each step seeming to tread on his uneasy heart.

Outside the window, Hong Kong's prosperity remained unchanged, with its bustling traffic, but he had no heart to appreciate it at the moment. His mind was filled with the potential catastrophic disaster that the Huifeng Bank crisis might bring to Hutchison Whampoa and Cheung Kong Holdings.

No, we have to find out what's going on from Shen Bi; we can't just sit here and wait to die!

Just as Li Jiacheng was about to pick up his suit jacket and put it on before heading out, there was a knock on the door.

He stopped what he was doing and called out to the door, "Come in."

The office door opened, and the subordinate in charge of intelligence entered.

"Mr. Li, I just received news that several Hong Kong-listed giants, including Hopewell Holdings, South Union Holdings, and Union Holdings, have announced that, like Swire Pacific and Wheelock & Co. before them, they have applied to Huafeng Bank for fund transfers, with Standard Chartered Bank as their target!" The subordinate reported impatiently as soon as he entered the room.

At the same time, a detailed intelligence report was also handed to Li Jiacheng.

Hopewell Holdings, South Union Holdings, and Union Holdings are all large companies in Hong Kong with a market capitalization of at least several billion Hong Kong dollars.

And now, they're releasing this kind of announcement at this very moment.

Moreover, they clearly knew that even if the announcement were made, Huifeng Bank would not be able to come up with the funds.

Yet, so many of Huifeng Bank's partner companies are announcing this news at this very moment.

Needless to say, Standard Chartered Bank is secretly plotting behind this, wanting to take the opportunity to seize Huafeng Bank's market share.

Who would have thought that the first to attack Huifeng Bank would not be its rival Bank of East Asia, but rather Standard Chartered Bank, also a British bank.

Li Jiacheng had not anticipated this either.

Li Ka-shing was well aware that Huifeng Bank and Standard Chartered Bank had a very good relationship in the past, often collaborating on investments and considered good partners.

But at this critical juncture, Standard Chartered Bank surprisingly stabbed Huifeng Bank in the back first.

However, he really didn't understand how Standard Chartered could successfully take over HSBC's market if the funds couldn't be transferred out of HSBC.
Such behavior will only plunge the entire Hong Kong business community into chaos, won't it?

What benefits would Standard Chartered Bank gain?

"Has the Governor's Office made any moves?" Li Jiacheng asked, frowning.

Logically speaking, the current situation of Huifeng Bank involves too many causes and effects. If Huifeng Bank were to collapse completely, it would affect most of the Hong Kong business community.

At this moment, the Governor's Office should take some action.

However, his subordinate shook his head and said, "Mr. Li, our people have been paying close attention to the situation at the Governor's Office. So far, there has been no substantial action. The Governor's Office seems to be observing or discussing countermeasures internally. They have not yet publicly stated that they will intervene in Huifeng Bank's current crisis."

Upon hearing this, Li Jiacheng's face grew even more gloomy.

The Governor's inaction undoubtedly made the situation more complicated. He had originally hoped that the government could step in to mediate, stabilize market confidence, and prevent Huifeng Bank from collapsing completely, but now it seemed that this idea was too naive.

"What about East Asia Bank? Is there any activity there?" Li Jiacheng continued to ask.

The subordinate shook his head again and said, "Mr. Li, our people have not only been keeping a close eye on the Governor's Office, but also on the movements of the Bank of East Asia and Lin Haoran. Since the Bank of East Asia announced that it had become the largest bank in Hong Kong, there haven't been any major moves since."

However, their branches are bustling with activity right now, with long queues forming at the entrances. But in stark contrast to the disastrous bank run at Huifeng Bank, the queues at Bank of East Asia and its subsidiary Dao Heng Bank are mostly made up of depositors busy transferring money from other banks.

It seems that the Bank of East Asia's position in Hong Kong's financial world is becoming increasingly secure and unshakeable!

"East Asia Bank and Lin Haoran haven't taken any action at all?" Li Jiacheng frowned, increasingly puzzled.

“Yes, our people found out that quite a few reporters went to the Kang Le Building and the East Asia Bank headquarters, but they were all refused interviews,” the subordinate continued.

"Continue to closely monitor the actions of the Governor's Office, the Bank of East Asia, Standard Chartered Bank, and other relevant parties. Report any suspicious activity to me immediately," Li Jiacheng instructed in a deep voice.

The subordinate nodded in agreement and was about to turn and leave the office.

However, he remembered that he still had something to report, so he turned back to his boss and said, "Mr. Li, there is another matter that I need to report to you. The share prices of Cheung Kong Holdings and Hutchison Whampoa have also started to plummet due to the influence of Huafeng Bank. We need to find a way to stop the decline."

Upon hearing this, Li Jiacheng became even more agitated.

He nodded and said, "I understand."

"Then I'll head out now." The subordinate respectfully withdrew from the office.

At this moment, Li Jiacheng had given up the idea of ​​going to see Shen Bi.

At this point, the senior management of Huifeng Bank were probably in complete disarray, each busy dealing with the sudden storm of capital flight. If he went there rashly, he might not get any substantial help, and Shen Bi might not even have time to see him.

Even if we meet him, what solutions can we possibly have?

Sitting back down in his chair, Li Jiacheng suddenly had a thought: "Now, perhaps only Lin Haoran can save Huifeng Bank?"

After all, Huifeng Bank doesn't actually have a debt ratio; it's just that the funds invested and loans can't be recovered in a short period of time.

Therefore, Huifeng Bank is currently lacking a large amount of liquidity to address this urgent crisis, cope with the sudden large-scale capital outflow, stabilize market confidence, prevent the bank run from worsening, and ultimately lead to collapse.

Lin Haoran's Bank of East Asia is currently enjoying great success in Hong Kong's financial world, boasting substantial financial strength and an excellent reputation among the public and business community.

In addition, Lin Haoran, as Hong Kong's richest man, controls many Hong Kong business giants and has abundant funds.

If he could lend a hand and inject funds into Huifeng Bank under suitable conditions, it might truly revive the bank.

However, East Asia Bank and Huifeng Bank are mortal enemies, and given Lin Haoran's vengeful nature, Li Jiacheng did not believe that the other party would be willing to help Huifeng Bank.

At this moment, Li Jiacheng had no idea that Bank of East Asia and Standard Chartered Bank had already secretly joined forces to divide up Huifeng Bank.

"Immediately notify all senior executives to convene a high-level meeting. I'll be in the meeting room in five minutes!" Li Jiacheng made a direct call to his secretary.

“Yes, Mr. Li,” the secretary replied.

After hanging up the phone, Li Jiacheng felt a surge of irritation and even a sense of panic.

This was something he had never experienced since entering the business world.

Li Ka-shing has enjoyed a smooth and successful career in the business world for decades.

By shifting its focus from the plastic flower market to real estate, and then gradually developing Cheung Kong Holdings through large-scale low-price acquisitions during the real estate crisis, the company has grown into a major player in the industry.

Although he failed in the takeover bid for Wharf Holdings, he unexpectedly gained the opportunity to acquire Hutchison Whampoa.

In Li Ka-shing's view, Hutchison Whampoa is clearly a better option than Wharf Holdings.

Therefore, although Li Jiacheng has indeed experienced setbacks in his business over the years, they have not caused him to panic.

But now, he truly felt the panic.

This panic, like an icy tide, gradually engulfed him.

The crisis at Huifeng Bank is like a bomb about to explode. Once it explodes, nearly HK$10 billion of its two major subsidiaries will vanish, and the two business giants, Hutchison Whampoa and Cheung Kong Holdings, will suffer heavy losses. Their hard-earned business empires may collapse.

At that moment, he suddenly regretted it.

I regret that I tied myself to Huifeng Bank.

Perhaps, I should have maintained a good relationship with Lin Haoran like Bao Yugang did.

However, because of Huifeng Bank, especially after he unilaterally published a statement supporting Huifeng Bank in the newspaper last time, it was impossible for him to become good friends with Lin Haoran.

"What's the use of saying all this now? It's too late to regret it," Li Jiacheng muttered to himself, his voice filled with helplessness and frustration.

……

At this moment, Hong Kong's four major stock exchanges were almost in complete chaos.

Huafeng Bank's major partners, such as Hutchison Whampoa, Cheung Kong Holdings, Swire Group, Wheelock & Co., etc., have all begun to decline to varying degrees.

As a financial institution, Huifeng Bank has dragged down many business giants.

Many stock market investors were gripped by panic.

On the electronic screen, the Hang Seng Index was affected by this and plummeted like a cliff. The fluctuating numbers were like the death knell tolling by the Grim Reaper, and every flash tightened the hearts of the investors.

The red figures for the continuous increase in the decline are like a surging tide, completely drowning out market confidence.

Inside the exchange, the noise, curses, and cries mingled together, like a chaotic symphony.

This is a situation that the Hong Kong stock market has almost never experienced since the oil crisis.

After all, the past two years have been called a bull market.

In the past, a sharp drop in the stock price of one or two listed companies wouldn't necessarily cause the Hang Seng Index to fall.

But now, there are far too many listed companies implicated by Huifeng Bank.

Hang Seng Bank, Swire Properties, Hutchison Whampoa, Hong Kong Tunnel Company, Swire Properties, Cheung Kong Holdings, AirAsia, Wheelock & Co., Hong Kong Aircraft Engineering Company...

Each of these companies is a large enterprise that is very familiar to Hong Kong residents, but now they are all affected by Huafeng Bank, and their stock prices have fallen to varying degrees.

This day could perhaps be aptly described as Black Tuesday.

Meanwhile, Galaxy Securities took advantage of this opportunity to secretly and continuously buy up stocks whose prices had been driven down by panic. The acquisition went so smoothly that it surprised their team.

Huafeng Bank, Hengsheng Bank, Cheung Kong Holdings, Hutchison Whampoa, Swire Group, and others are all targets for Galaxy Securities to acquire.

After all, Lin Haoran was very clear that the current sharp drop in these stocks was only temporary.

Therefore, after seeing these stock prices plummet, he decisively instructed Dai Shi to have his team not only buy into Huifeng Bank and Hengsheng Bank, but also buy into other companies such as Hutchison Whampoa and Cheung Kong Holdings!

As the person involved, Lin Haoran naturally knew that all corporate crises were only temporary.

Standard Chartered Bank has not yet disclosed its purpose, so no one, including Li Ka-shing, knows that Standard Chartered Bank's actual purpose is to acquire HSBC Bank.

Once Standard Chartered Bank successfully acquires Huifeng Bank, their crisis will essentially be resolved automatically.

Since Standard Chartered Bank wants to acquire Huafeng Bank, it naturally needs to help Huafeng Bank solve the current predicament they are facing.

As a result, the share prices of companies affected by Huafeng Bank, such as Hang Seng Bank, Cheung Kong Holdings, and Hutchison Whampoa, are very likely to rebound quickly.

Therefore, Galaxy Securities can take this opportunity to make a fortune in this stock market crisis.

Simply shorting Huifeng Bank is not enough.

At the Kang Le Building, Lin Haoran stayed at Galaxy Securities until 2:30 pm. Watching the trading team successfully acquire a large number of shares, he couldn't help but smile with satisfaction.

He's not short of money these days.

In that case, why not all of us start buying at the bottom!
Most of these listed companies are high-quality enterprises.

As long as there is no crisis of a broken capital chain, their stock price will only continue to rise.

Therefore, such a sharp drop is a very rare opportunity.

In particular, he wore a meaningful smile as he saw that he was gradually acquiring a significant amount of stock in Hutchison Whampoa and Cheung Kong Holdings.

Lin Haoran glanced at the time on his watch, turned to say goodbye to Dai Shi, and then got up and left the Galaxy Securities office.

He planned to head to Kai Tak International Airport, where Keiko Yamada's flight would soon arrive in Hong Kong.

This beautiful Japanese woman is his woman. She traveled all the way from Japan to Hong Kong just to see him, so naturally he should personally go and greet her.

(End of this chapter)