In Hong Kong, we build a global business empire

Chapter 670 The last straw that saved Huifeng Bank snapped.

Lin Haoran has always attached great importance to the development of the mainland.

As a time traveler who had lived in the future for decades, he was naturally aware of the enormous potential for future economic development in the mainland.

Today, although the mainland economy is still relatively underdeveloped, its overall economic landscape resembles a blank canvas waiting to be painted with a grand blueprint.

However, beneath this seemingly empty surface lies countless business opportunities and unlimited development potential.

Moreover, as a Chinese, he naturally longed for the mainland to flourish and prosper.

"Boss, a few days ago we received an invitation from Beijing, hoping that I would visit Beijing on behalf of the Landmark Group. I was planning to go at a suitable time, but I have too much work to do right now and I really can't get away for the time being."

"I'm guessing it's because our Land Group has invested a lot of money in Guangdong Province, which has attracted the attention of Beijing. Maybe after this visit, our Land Group will set up a branch there!" Ma Shimin said with a smile.

"You absolutely have to go! Once you get there, have a good talk with them. Our Land Group really needs to expand its presence in Beijing. As the capital, Beijing has unlimited potential for future development and will definitely become a place where every inch of land is worth its weight in gold."

We can't just focus on the Pearl River Delta; we also need to have our industrial layout in places like Beijing and Shanghai.

"By the way, once the Landmark Group establishes a branch in Beijing, could you, in the group's name, buy me a few more courtyard houses in Beijing? If you could buy one like a prince's mansion, that would be even better. Maybe I'll occasionally stay there and experience the charm of Beijing," Lin Haoran replied with a smile.

In the future, a well-maintained courtyard house in Beijing will easily fetch prices in the hundreds of millions of yuan.

These are all rare fixed assets with great potential for value preservation and appreciation.

In any case, since Hongkong Land Group is a wholly privatized company of his, for Lin Haoran, it's no different from him buying the courtyard house himself if Hongkong Land Group pays for it.

Upon hearing this, Ma Shimin nodded and wrote down his boss's request.

As someone who has lived in Hong Kong for many years and is practically a Hong Konger, Ma Shimin is well-versed in Chinese culture and naturally understands what a courtyard house is.

Just then, the office phone rang.

"Boss, I need to take this call first," Ma Shimin said to Lin Haoran.

Lin Haoran nodded.

Ma Shimin reached for the phone, glanced at the number displayed on the screen, and recognized it.

But after thinking for a moment, he gently pressed the answer button.

"Hello, this is Ma Shimin," Ma Shimin said first.

“Mr. Ma, hello, this is Wu Guangzheng from Wharf Holdings.” A clear and steady voice came from the other end of the phone.

Ma Shimin was slightly taken aback, somewhat surprised. He hadn't expected that Wu Guangzheng, the future heir of Wharf Holdings, would call him at this time.

He quickly composed himself and said with a smile, "Mr. Wu, hello. May I ask what brings you here?"

"Mr. Ma, I have some good news to report to you. After a period of careful operation, we and your group, Hongkong Land Group, have jointly launched an acquisition of Wharf Holdings. Currently, the combined shareholding of both parties has exceeded 90%."

"According to the rules of tender offers in Hong Kong, we are fully capable of initiating a compulsory takeover process for the remaining shares. Before long, we will be able to completely and smoothly privatize Wharf Holdings." Wu Guang said with a smile on the other end of the phone.

Privatizing Wharf Holdings is undoubtedly a major boon for both Hongkong Land and the Pau family.

It's important to understand that while Wharf Holdings' annual profits may not appear particularly high on the surface, this is because most of the money earned is actually invested in new businesses, especially the expansion and construction of Harbour City Phase II.

In addition, Wharf Holdings' current business is mainly based on rental income. Although the payback period is relatively long, the debt ratio is extremely low and the financial situation is very stable.

Moreover, Harbour City Phase 2 is about to open, which will undoubtedly become another "golden goose" for Wharf Holdings, bringing it a continuous stream of substantial profits.

Today, both Lin Haoran and the Bao family have high expectations for the future of Harbour City.

Lin Haoran and Bao Yugang joined forces to privatize Wharf Holdings, with Wu Guangzheng in charge of the privatization, and Hongkong Land Group providing assistance.

It has been more than a month, almost two months, since the announcement of the privatization of Wharf Holdings in early June. The progress has been smoother than expected.

When Ma Shimin heard the news, he smiled. Although he was only the second largest shareholder, he would still hold 49% of the shares in the future. For Hongkong Land Group, this was a "big cake" with great potential and value.

He replied with a smile, "Mr. Wu, thank you for your hard work these past few days. I will visit you in person another day and we can talk in detail."

Wu Guangzheng laughed heartily: "Mr. Ma, you're too kind. This is the result of our joint efforts. Moreover, Mr. Lin and my father-in-law are both farsighted and set this strategy early on. We are just proceeding according to plan."

While the compulsory acquisition of the remaining shares is relatively simple in procedure, we cannot be careless and must coordinate efforts across all aspects.

After the two hung up the phone, Lin Haoran already knew the content of their conversation without Ma Shimin needing to report it.

Because Ma Shimin had specifically put the phone on speakerphone when he answered it.

"Boss, does Harbour City really have such great potential?" Although he had heard Lin Haoran's analysis before, Ma Shimin was still not very sure.

Because the southern part of Tsim Sha Tsui, especially the eastern part, is still under development and the flow of people is not actually very large.

The privatization of Wharf Holdings was a joint effort between Paul Yip and Lam Ho-yin, with Simon Murray and Peter Woo merely acting as executors.

“Naturally, the location of Harbour City gives it unparalleled advantages.” Lin Haoran said slowly, his eyes deep. “It is located in the heart of Hong Kong, with extremely convenient transportation, making it easy for both local residents and tourists to get there.”

Although Tsim Sha Tsui East is currently a construction site due to the recent reclamation, once the entire Tsim Sha Tsui South business district gradually takes shape, it will undoubtedly become the most upscale business district in Kowloon Peninsula, attracting many discerning customers.

Moreover, with the continuous development of Hong Kong's economy and the upgrading of the consumer market, Hong Kong citizens' demand for high-quality commercial complexes is growing. Harbour City is not only large in scale, but its planning and layout are also very scientific and reasonable, which can meet the diverse needs of different groups of people.

Therefore, I have long predicted that this area, and even decades from now, will be one of the most profitable commercial districts in Hong Kong. Owning it means you can sit back and collect a hefty rent every year; being a landlord is much more enjoyable than working hard to make a living.

Ma Shimin nodded slightly and said thoughtfully, "Now that you mention it, I understand. However, business competition in Hong Kong is fierce these days. After the opening of Harbour City Phase II, we'll probably have to put in a lot of effort to stand out from the competition."

"We must trust Mr. Bao's vision and business acumen. He was able to become the world's shipping magnate, and even after becoming the world's shipping magnate, he still had the courage to shift the focus of development from the sea to the land. Such courage and vision are beyond the reach of ordinary people."

Moreover, our Landmark Group is no pushover either; we have accumulated rich experience in commercial operations. Our alliance with the Bao family is a powerful combination.” Lin Haoran greatly admired Bao Yugang, this senior figure in the business world, for his business acumen.

Meanwhile, in a quiet and well-equipped upscale sanatorium at Queen Mary Hospital on Pok Fu Lam Road, the atmosphere was exceptionally peaceful.

At this moment, Wu Guangzheng slowly put down the telephone receiver, and his eyes naturally turned to his father-in-law Bao Yugang, who was sitting on the sofa.

Bao Yugang sat upright on the sofa, holding an intelligence document in his hand, his eyes intently scanning the contents.

As he read, the corners of his mouth unconsciously turned up slightly, and a smile quietly appeared.

At the beginning of the month, Bao Yugang underwent a major surgery.

Fortunately, the surgery was extremely successful. After the surgery, in order to recuperate in peace, he stayed in the high-end sanatorium under the Queen Mary Hospital.

The environment here is quiet and secluded, and few people can disturb him unless he takes the initiative to invite him. Otherwise, no one would have the opportunity to see him.

For the past month, Huifeng Bank's Shen Bi had tried to meet with Bao Yugang multiple times, but each time Wu Guangzheng declined on the grounds that "his father-in-law had just undergone major surgery and was in poor health and needed to rest." As a result, Huifeng Bank was unable to meet with Bao Yugang.

“Father-in-law, I have already spoken to Mr. Ma Shimin,” Wu Guangzheng reported.

"This young man, Haoran, is truly astonishing." Bao Yugang did not continue Wu Guangzheng's topic, but gently put down the intelligence data and said with deep emotion.

"Yes, who could have predicted that someone who was originally an outsider in the financial world would actually pull Huifeng Bank, the financial hegemon, off its throne? In the past, this would have been a fantasy, who could have imagined it!"

"Father-in-law, the whole of Hong Kong is in an uproar right now. Huifeng Bank has really bitten off more than they can chew. If they had known this would happen, they wouldn't have provoked East Asia Bank in the first place. They've really brought this upon themselves." Wu Guangzheng nodded in agreement.

"Originally, I was planning that if East Asia Bank struggled to overcome the difficulties under the siege of Huifeng Bank, I would lend them a hand at the critical moment and transfer some of the funds of our Bao family's businesses to East Asia Bank."

"But who would have thought that Huifeng Bank would be completely overwhelmed without us even having to lift a finger!" Bao Yugang exclaimed.

This time, they were truly shocked.

It's unbelievable that Huifeng Bank, which they always considered invincible, has been repeatedly defeated by Bank of East Asia.

Today, Huifeng Bank has lost its status as the largest bank, its market share is only half of its peak, and it may even fall into a crisis of broken capital chain. Who could have predicted such a situation?

Previously, before Bao Yugang entered the operating room, he had specifically instructed Wu Guangzheng that if East Asia Bank fell into crisis, the Bao family should lend a helping hand if they could.

After all, in Bao Yugang's mind, Lin Haoran's previous reminder was equivalent to saving his life!
Although Huifeng Bank was his long-time partner and ally, Bao Yugang's situation was completely different from Li Jiacheng's.

Over the years, Huifeng Bank has indeed gradually become an important shareholder of Worldwide Shipping Company, which is beyond doubt.

However, Huifeng Bank has no right to interfere in the other businesses of the Bao family.

Even with Worldwide Shipping, Bao Yugang was the sole decision-maker. Huifeng Bank at most held a seat on the board of directors, but real control remained firmly in Bao Yugang's hands.

As for other businesses under the Bao family, such as Wharf Holdings, although HSBC provided the Bao family with a loan of more than HK$2 billion to help Bao Yugang take over smoothly, it was just a normal loan cooperation.

Banks lend money and businesses borrow money; one earns interest, and the other obtains funds to support development. This is a normal business practice that is mutually beneficial and win-win.

Given Bao Yugang's business reputation and strength, he could easily obtain loan funds with the same or even better terms from other banks, such as Japanese commercial banks.

Therefore, the deep cooperation between Pao Yu-Kang and Huifeng Bank was limited to the field of global shipping companies, and there were not many complicated entanglements or involvements in other businesses of the Pao family. Today, Pao Yu-Kang has long since shifted his business focus from the shipping industry to other industries, such as the newly acquired Wharf Holdings, which is one of his key development areas.

As for Worldwide Shipping, he has already been secretly selling off ships to mitigate the impact of the impending shipping industry downturn.

He understood that the shipping industry was experiencing extreme cyclical fluctuations due to the oil crisis, and if the strategy was not adjusted in time, the Bao family's years of hard work might be in vain.

Bao Yugang and Li Jiacheng have completely different styles of doing things.

When the Li family took over Hutchison Whampoa, their own strength was still relatively weak, yet they attempted to stage a "snake swallowing an elephant" acquisition drama.

Left with no other option, the Li family signed a series of unequal contracts with Huifeng Bank before taking control.

These contracts were like heavy shackles, tightly binding Li Ka-shing and Hui Fung Bank together. From then on, Li Ka-shing had to fully support Hui Fung Bank at all times, and his businesses had to cooperate with Hui Fung Bank.

Bao Yugang and Huifeng Bank have cooperated for many years and have a deep bond, but there are no contractual restrictions between them.

Although if he chose to abandon Huifeng Bank when it was in its most difficult time, it would undoubtedly be tantamount to betrayal in some respects.

But in the turbulent business world, profit comes first.

If the situation changes, he can decisively and resolutely transfer most of his financial business to Bank of East Asia for reasons of self-interest.

This is by no means an act of acting on impulse.

Previously, he may have been thinking of helping if he could, but now that the situation is clear, he plans to transfer the funds as soon as possible.

As a tycoon who had been in the business world for many years and had close ties with Huifeng Bank, he naturally sensed that Huifeng Bank was now in a precarious situation.

Moreover, Lin Haoran had saved his life.

It is perfectly understandable and reasonable for him to want to transfer his assets to East Asia Bank.

"Now that the Wharf Holdings issue is settled, it is clearly inappropriate for Hongkong Land Group, which is Wharf Holdings' second largest shareholder after us, to leave our financial business with Huifeng Bank. Moreover, Huifeng Bank is in a precarious situation and has no future. We don't need to continue supporting Huifeng Bank."

Bao Yugang took off his reading glasses and said to Wu Guangzheng with a smile.

As a board member of Huifeng Bank, Bao Yugang, who closely monitors the internal situation of Huifeng Bank, has learned through his informant among senior executives of Huifeng Bank that Standard Chartered Bank plans to secretly acquire Huifeng Bank. Therefore, he is not worried that the assets of his own companies will be dragged down by Huifeng Bank.

“Father-in-law, won’t people think we’re traitors to Huifeng Bank if we do this? After all, we’ve been cooperating with Huifeng Bank for so many years. If we suddenly stab them in the back at this critical juncture, it might not do us any good for our reputation,” Wu Guangzheng said with a furrowed brow and a worried expression.

“Guangzheng, it’s perfectly justifiable for us to announce the transfer of Wharf’s funds to Bank of East Asia. Haoran is already a major shareholder of Wharf. As one of the owners of Wharf, it’s only natural for him to cooperate with Bank of East Asia on Wharf’s financial business.”

Besides, our Global Shipping Group is still cooperating with Huifeng Bank, but now, even the funds are temporarily unable to operate normally because of their situation. We have become the victims who are implicated by them. What face do they have to say that we have betrayed them?

"Undeniably, we borrowed a considerable amount of money from Huifeng Bank when we acquired Wharf Holdings, but we have always repaid it on time and have not defaulted. We will also repay the remaining debt on time. Therefore, Wharf Holdings does not owe Huifeng Bank any favors!" Bao Yugang said calmly with a smile.

Wu Guangzheng nodded and said, "In that case, why don't we follow the example of companies like Swire and Wheelock and issue a public announcement? That would be a way of supporting East Asia Bank."

Bao Yugang nodded and said, "Let's issue it today. Haoran has helped me so much, but I haven't been able to help him in any way. I feel guilty. Now that no major companies have announced their support for Bank of East Asia recently, Wharf Holdings will be the first company to officially stand up and support it."

More than an hour later, Wharf Holdings Limited released a major announcement without any prior warning.

The announcement clearly states that, given that Lin Haoran is one of Wharf Holdings' major shareholders, the shareholders' meeting unanimously approved the decision to change Wharf Holdings' future financial business partner bank from Huafeng Bank to Bank of East Asia.

Although the announcement had not yet spread throughout the streets and alleys of Hong Kong through newspapers, it was like a boulder thrown into a calm lake, quickly creating ripples within the relatively small circle of Hong Kong's business community, and the news spread like wildfire.

……

London, England.

At the Standard Chartered Bank headquarters, in a conference room of nearly 100 square meters, more than a dozen foreigners were sitting around an oval conference table.

If Lin Haoran were here, he would surely recognize Mr. Shen Bi, one of the executives of Huifeng Bank.

Besides Sir Michael Sandberg, there were several people behind Hui Fung Bank and several representatives of conglomerates.

They negotiated for two whole days about Standard Chartered Bank investing to save Huifeng Bank, but they couldn't reach an agreement.

Sir Michael Sandberg did visit other banks, hoping to obtain assistance from them, but none of them showed any interest in cooperation.

Everyone knows that Huifeng Bank is now rotten to the core.

With Swire Group and others announcing their partnerships with Standard Chartered Bank, which other bank would be willing to clean up this mess?

It's not worth it, it's not worth it at all.

Therefore, they now have no choice but to negotiate with Standard Chartered Bank.

Standard Chartered Bank's demands were simple: acquire a 51% stake in Huifeng Bank.

In other words, once this condition is met, Huifeng Bank will directly become a subsidiary of Standard Chartered Bank.

However, HSBC believes that although Swire Group and others have successively waived their rights to HSBC, HSBC still has companies such as Cheung Kong Holdings, Hutchison Whampoa, Wharf Holdings, and Worldwide Shipping that firmly support HSBC. It still has a certain foundation and has not yet reached the point of completely selling off its shares. At most, it will only give up no more than 30% of its shares.

Therefore, the two sides were locked in a stalemate.

Hui Feng Bank's shareholders and patriarch, Sir Michael Sandberg, have always firmly upheld their bottom line, unwilling to let Hui Feng Bank become a mere appendage.

Standard Chartered Bank is also facing difficulties. The Hong Kong Governor's Office has put pressure on them, and if they can't resolve the situation, the Governor's Office will stop supporting Standard Chartered Bank.

Shen Bi frowned, his eyes filled with resentment, his tense expression seemingly silently telling of his inner struggle.

He knew perfectly well that although Standard Chartered Bank's terms were extremely harsh, given Huifeng Bank's current precarious situation, it was undoubtedly the last straw they could grasp.

However, relinquishing 51% of the shares would mean that Huifeng Bank would completely lose control of itself, and all the hard work it had poured into over the years would be handed over to someone else. Thinking of this, Shen Bi felt as if he had been struck by a heavy hammer; he simply couldn't accept such an outcome.

Moreover, he knew that if this happened, he would become a sinner of Huifeng Bank, going from a once-admired hero to a universally despised sinner. This enormous fall from grace was something he could never bear.

Looking at the other major shareholders of Huifeng Bank present, they are all descendants of families who have been major shareholders of Huifeng Bank since its inception.

They have a deep affection for Huifeng Bank, a bond that runs deep in their bones and is difficult to sever.

Therefore, they were unwilling to simply watch Huifeng Bank become a subsidiary of Standard Chartered Bank.

At this moment, they hated Shen Bi to the core.

In their view, Huifeng Bank's crisis, which occurred in just two or three months, was entirely caused by Sir Michael Sandberg.

What can you do if someone is hateful?

Now that things have come to this, saving Huifeng Bank has become their top priority, allowing no room for complacency or resentment.

Therefore, Shen Bi still had value to him.

The meeting room was filled with the smell of gunpowder, clearly indicating that an argument had just ended.

However, neither of them was satisfied with the outcome of the argument.

No one was willing to budge an inch.

Lord Derek Barber, Chairman of the Board of Directors of Standard Chartered Group, glanced irritably at Sir Michael Sandberg and his group.

Mr. Brown received pressure from the Hong Kong Governor's Office, forcing him to find a way to reach an agreement as soon as possible.

If things continue like this, today might be another day without any results.

Just then, there was a knock on the door, and everyone present immediately fell silent.

In such an important occasion as negotiations, unless there is something important to discuss, it is unlikely that anyone will disturb the proceedings.

“Come in,” Lord Derek Barber said.

The door was gently turned open, and standing outside was Lord Derek Barber's secretary.

"Gentlemen, excuse me, I have an urgent matter to report. Just now, important news came from Hong Kong: Wharf Holdings, a listed company, has followed in the footsteps of Swire Group, Wheelock and Company, and officially announced that it will transfer its financial business from HSBC to Bank of East Asia, becoming yet another business giant to announce its separation from HSBC." The secretary reported quickly and clearly.

"No, impossible! How could Wharf Holdings announce such a thing? Absolutely impossible!" Upon hearing this, Shen Bi looked incredulous and stood up abruptly from his chair.

In his view, Bao Yugang and Li Jiacheng were both supported and developed by Huifeng Bank, and should always stand on Huifeng Bank's side and advance and retreat with the bank. How could they make such a "betrayal" move at this time?

Shen Bi's face turned deathly pale instantly, and his body trembled uncontrollably as he said, "No, you must be lying. You're using these lies to deceive us in order to convince us!"

At this moment, this news was like the last straw that Huifeng Bank had been broken.

(End of this chapter)