In Hong Kong, we build a global business empire

Chapter 674 Exploiting Standard Chartered Bank's Weakness

After listening to Brown's detailed explanation of the whole story, Lin Haoran understood why Brown had come to see him this time.

His lips curled up slightly, revealing a barely perceptible smile.

Then, Lin Haoran said with some difficulty in his tone, "Mr. Brown, I understand your difficulties, but returning the shares in advance is no small matter. Besides, it's not time for me to return the shares yet. Asking me to return the shares in advance all of a sudden is indeed a bit difficult for me."

"Undeniably, I hold a significant number of Huifeng Bank shares. However, I have my own plans. Your sudden request for me to repay these shares early puts me in a difficult position."

In fact, he can return these shares at any time now. After all, since he has already made money, he is unlikely to sell the shares, and holding them in hand is of no use.

However, since Standard Chartered Bank had made such a request, he naturally wouldn't agree easily; he needed at least some benefits in return!
Despite the apparent alliance between Standard Chartered Bank and Bank of East Asia, Lin Haoran has never considered Standard Chartered Bank as an ally.

This alliance is only temporary.

Once Standard Chartered completes its acquisition of Huafeng Bank, Standard Chartered and the banks under Lin Haoran's control will become true competitors.

Are competitors allies?
Don't be ridiculous. Look at the relationship between HSBC and Standard Chartered Bank before. On the surface, they seemed to have a great relationship, frequently joining forces to make overseas investments.

But when Standard Chartered saw an opportunity to acquire Huifeng Bank, it didn't hesitate to bare its fangs and throw its so-called alliance to the winds.

Now that Standard Chartered Bank needs Lin Haoran's help, Lin Haoran naturally wants to take the opportunity to maximize his own interests.

At the very least, we can't just agree to Standard Chartered Bank's offer so easily.

When Brown heard Lin Haoran not directly refuse on the other end of the phone, a glimmer of hope ignited in his heart.

He quickly said, "Mr. Lin, we know this matter is very difficult for you, but the acquisition has reached a critical juncture, and we hope you can understand our difficulties."

Furthermore, Mr. Lin, we are now partners. Only after Standard Chartered Bank successfully takes over Huifeng Bank can our subsequent cooperation proceed smoothly. Things like selling Hengsheng Bank to you, and securing a currency-issuing right for Bank of East Asia—I imagine you, Mr. Lin, are also eagerly hoping these things can proceed smoothly.”

Lin Haoran chuckled inwardly. Brown, that old fox, had indeed started using these things as bargaining chips.

He deliberately paused for a moment, creating an atmosphere of serious consideration, before slowly saying, "Mr. Brown, the collaborations you mentioned are indeed very important to me, but let's keep things separate."

The early return of the shares has had a significant impact on me. As you know, I have my own plans, and in the financial market, timing and planning are crucial. Your disruption has forced me to readjust many of my strategies.

Brown hurriedly said, "Mr. Lin, we understand your concerns. How about this, in addition to what we promised before, as long as you return the shares in advance, we can give you an additional 5% discount on the acquisition price of Hengsheng Bank."

This is the biggest concession Standard Chartered Bank can make, after all, Hang Seng Bank is also a highly valuable asset.

Upon hearing this, Lin Haoran couldn't help but smile slightly.

Standard Chartered Bank is quite generous; they really can't wait a moment longer.

Under normal circumstances, once the three-month period stipulated in the agreement between Lin Haoran and the shareholders of Huifeng Bank expires, he will definitely have to return the shares.

But the other party was unwilling to wait.

However, a 5% reduction seemed rather stingy to Lin Haoran.

Previously, Lin Haoran had agreed with Standard Chartered Bank to acquire the 62.14% stake held by Huifeng Bank for HK$15 billion. Even if the price is reduced by 5%, it would still cost HK$14.25 billion, which is only HK$75 million less.

In fact, HK$75 million is already a painful sum for Standard Chartered Bank.

They weren't as wealthy and powerful as Lin Haoran, who made over 20 billion Hong Kong dollars in just three months.

Standard Chartered Bank is currently mired in a double quagmire of funding pressure and acquisition competition.

In terms of its own strength, Standard Chartered Bank is even slightly inferior to HSBC at its peak.

Now, it not only has to spend billions to acquire shares of Huifeng Bank, but also, after successfully taking control of Huifeng Bank, it will have to provide an additional two to three hundred billion Hong Kong dollars to help Huifeng Bank get out of its predicament of broken capital chain.

Although the money will eventually be recovered, Standard Chartered Bank's cash flow will be under severe strain until then.

A slight misstep could trigger a series of chain financial risks, and it might even follow in the footsteps of Huifeng Bank, suffering another break in its capital chain.

It can be said that Standard Chartered Bank has to be very careful with every penny it spends these days. The HK$75 million is a considerable sum for them, and it was a concession they made after much internal deliberation.

Their eagerness to reach a deal with the consortium behind Huifeng Bank stems from their desire to quickly gain control of Huifeng Bank, thereby significantly increasing Standard Chartered Bank's market share in Hong Kong and strengthening the overall strength of Standard Chartered Bank.

The more crucial concern is that things might get complicated and unforeseen problems might arise.

After all, although Standard Chartered Bank has signed contracts with senior executives of Huifeng Bank and even the consortium behind it, as long as it has not truly acquired controlling stake, Standard Chartered Bank will always feel uneasy and on edge.

It's important to understand that Hong Kong's financial sector holds a significant position globally, with various forces deeply intertwined and deeply entrenched there.

Besides local Hong Kong forces, many external forces are also eyeing the "big cake" of Hong Kong's financial market.

At this critical juncture, no one can predict whether new, powerful capital will suddenly intervene and turn this seemingly settled acquisition situation upside down.

Lin Haoran was well aware of the implications, so he was not in a hurry to compromise. Instead, he planned to put more pressure on Standard Chartered Bank in order to gain more benefits for himself.

In fact, those benefits themselves might not have been particularly attractive to him.

After all, Lin Haoran has received so much funding in the past six months that he is now truly not short of money.

For example, the money earned from Sony and Toyota; the profits from shorting Huifeng Bank; and the ability to buy shares of major listed giants in Hong Kong at low prices and sell them for cash when the stocks surge.

However, the ability to put pressure on Standard Chartered Bank and make its development in Hong Kong difficult is of vital strategic value to his future competition with Standard Chartered Bank in the Hong Kong financial market.

Otherwise, if Standard Chartered Bank is allowed to have an easy time, it might suddenly decide to try and steal market share from its other banks.

He said slowly, “Mr. Brown, I understand Standard Chartered’s current difficulties, but I also have my own considerations. The impact of returning the shares early cannot be compensated by a mere 5% discount.”

The business layout of my bank will be disrupted by this change, and a lot of manpower and resources will be needed to replan it. Mr. Brown, a 5% discount is really not enough to make up for the losses caused by my early return of the shares.

As you know, my investments in the financial markets are highly interconnected; any changes made in advance can have far-reaching consequences that cannot be measured in terms of mere HK$75 million.

Brown was sweating profusely on the other end of the phone; he hadn't expected Lin Haoran to be so difficult to deal with.

He suppressed his anxiety and said, "Mr. Lin, Standard Chartered Bank has truly shown the utmost sincerity. This 5% discount is the result of repeated discussions among our senior management. If we were to make any further concessions, we would find it difficult to explain to the board of directors."

Lin Haoran narrowed his eyes slightly, and a barely perceptible smile appeared at the corner of his mouth.

He smiled and said, "How about this, I'll give Mr. Brown two choices, shall we?"

"Mr. Lin, please speak!" Brown perked up instantly upon hearing this on the other end of the phone.

“First, Standard Chartered Bank will reduce the acquisition price of Hengsheng Bank by 10%,” Lin Haoran said slowly.

"And the second one?" Brown wasn't angry about it, but said in a deep voice.

Lin Haoran gently stroked the teacup on the table, a hint of a smile in his eyes.

He slowly began to speak: "Secondly, Standard Chartered Bank must promise that within three years of successfully taking over HSBC, Standard Chartered Bank and HSBC will not launch any new financial products or services in the Hong Kong market that directly compete with the core business of Bank of East Asia."

At the same time, Standard Chartered Bank is required to transfer the Bank of England, which is controlled by HSBC, to Bank of East Asia after successfully acquiring HSBC.

When Brown heard Lin Haoran's second option on the other end of the phone, his mind went blank for a moment before he came to his senses.

His voice trembled slightly: "Mr. Lin, your second condition is far too harsh! Restricting us from launching competing products and services for three years will cause our market share in Hong Kong to shrink significantly, seriously affecting the bank's strategic layout and profitability."

Moreover, the Bank of England in the Middle East is a strategically valuable asset under HSBC, playing a crucial role in business expansion and resource integration after Standard Chartered Bank's acquisition. It's impossible for it to be transferred to Bank of East Asia; you're putting me in a difficult position!

The Middle Eastern English orchid is actually not very valuable; converted to Hong Kong dollars, it's less than HK$100 million. When HSBC bought it, it didn't cost much. However, it has extraordinary strategic significance for HSBC.

The Bank of England in the Middle East has a deep-rooted presence and extensive business network in the region, serving as an important springboard for HSBC to expand its financial business in the Middle East.

Through it, Huifeng Bank is able to establish close partnerships with major conglomerates and enterprises in the Middle East, gaining access to abundant resources and huge business opportunities.

Standard Chartered Bank is now poised to acquire HSBC, and naturally, it is unwilling to easily relinquish this important asset.

Brown already knew how difficult Lin Haoran was to deal with. After all, Standard Chartered Bank had given up a lot of benefits and suffered heavy losses in order to persuade Lin Haoran to agree to the acquisition of Huifeng Bank.

Brown found it very troublesome to deal with someone as difficult as Lin Haoran.

Lin Haoran said with a smile, "You have already gained unimaginable benefits from the acquisition of Huifeng Bank. We can't just give you all the advantages. Mr. Brown, Standard Chartered Bank is eager to complete this transaction and take control of Huifeng Bank. You understand the stakes better than I do. You know how much convenience my early return of the shares has brought you. If we followed the normal procedure, you would have had to wait for a while longer, and there are many variables during that time."

Brown was silent for a moment. He knew that Lin Haoran had a point, but he simply couldn't accept those two conditions.

However, after some thought, he decided to hand the problem over to the Standard Chartered Bank headquarters board of directors.

How they decide is not something he, as a regional head, can decide.

Thinking of this, Brown said, "Mr. Lin, I will convey your conditions to Standard Chartered Bank headquarters, but I really cannot guarantee the final outcome. As you know, the stakes involved are very complex and I cannot make a decision on my own."

Lin Haoran nodded slightly and said with a smile, "Mr. Brown, I understand your difficulties. However, I hope your headquarters can give this matter serious consideration. This is compensation for my early return of the shares, which I think is very reasonable."

Of course, I suggest Standard Chartered Bank wait another two months. By then, my securities lending agreements with those consortia will have expired, and I will need to repay them. Standard Chartered Bank will then not have to pay any price.

Brown's heart skipped a beat when he heard Lin Haoran's words, and fine beads of sweat instantly appeared on his forehead.

He understood that Lin Haoran was exploiting Standard Chartered's weakness. Waiting two more months would undoubtedly be a nightmare for Standard Chartered, which was eager to take control of Huifeng Bank to stabilize the situation and expand its business.

Hong Kong's financial market is constantly changing. Every extra day you wait could bring countless unforeseen events that could render all your previous efforts futile.

Brown was feeling very complicated at that moment, feeling both helpless and angry towards Lin Haoran.

However, he knew he couldn't show his anger.

Otherwise, given his vengeful nature towards Lin Haoran, his plan to get Lin Haoran to return the shares ahead of schedule would be completely ruined, and might even further deteriorate the already delicate cooperative relationship between East Asia Bank and Standard Chartered Bank, bringing unpredictable negative impacts to a series of subsequent plans.

Just look at the consequences of Jardine Matheson and Huafeng Bank to understand.

After Jardine Matheson offended Lin Haoran, it not only lost most of its assets in Hong Kong, but also had to slink out of the Hong Kong market.

As for the consequences of Huifeng Bank offending Lin Haoran, they are even worse off. They are about to be taken over by Standard Chartered Bank.

Brown took a deep breath, trying to make his voice sound calm and sincere: "Mr. Lin, the conditions you have proposed do present us with a great challenge, but I will do my best to convey your sincerity and our urgent needs to headquarters."

I believe headquarters will seriously consider your proposal and find a solution acceptable to both parties. Mr. Lin, I need to relay this message to headquarters as soon as possible, and we will give you a reply by tonight at the latest. I will not continue our conversation now. Goodbye.

At this moment, Brown was unwilling to continue talking to Lin Haoran for even a second longer.

Lin Haoran hung up the phone with a smile. He knew this would displease the senior management of Standard Chartered Bank, but he didn't care.

After all, his bank in Hong Kong will be Standard Chartered's biggest competitor.

Even if he takes the initiative to be friendly to his competitors, they may not appreciate it.

Moreover, one is a British-owned enterprise and the other is a Chinese-owned enterprise. Unless one side becomes dependent on the other, the competition will only intensify in the future, with no possibility of reconciliation or easing.

It would be better to make his bottom line and attitude clear from the beginning, so that the other party understands that in this financial game, Lin Haoran is not a pushover.

In the business world, everything is for profit.

Many people form alliances for the benefit of both parties.

True friendship?
It's not that it doesn't exist, but it's extremely rare in this financial world filled with the stench of money and scheming.

Therefore, Lin Haoran had no intention of giving Standard Chartered Bank any face from the very beginning.

It would be better to make things difficult for them and slow down their development in Hong Kong.

After composing himself, Lin Haoran and his bodyguards hurriedly left the Kang Le Building and sped straight towards the hillside villa.

Keiko Yamada traveled a long way from Japan to see him, but he was too busy with other matters to spend time with her. Lin Haoran felt really guilty and apologetic.

However, at this crucial juncture in his career development, with numerous matters urgently needing to be addressed, his focus naturally had to be entirely on his career. He simply couldn't spare the time or energy for anything else.

Back at the villa, the sound of a car engine broke the evening's tranquility.

Upon hearing the noise, Keiko Yamada, who was originally on the third floor, ran downstairs like a happy little deer.

She wore a white dress, and in the soft and warm golden sunlight of the setting sun, the hem of the dress swayed gently, and she seemed to radiate a faint halo, making her look exceptionally gentle, charming, and beautiful.

"Haoran-kun, you're back!" Yamada Keiko, as considerate as a loving wife, took off Lin Haoran's suit jacket.

Keiko Yamada speaks Hong Kong dialect, and quite fluently at that.

Lin Haoran nodded and said with a smile, "It should be time to eat now. After we eat, I'll take you out to play."

Upon hearing this, Keiko Yamada's eyes were filled with anticipation and surprise.

She spent the whole day at the villa; Lin Haoran wasn't there, and she didn't want to go anywhere.

After all, this was her first time in Hong Kong. Although she had chosen Hong Kong dialect as her second foreign language when she was studying at university in Japan, everything here seemed so unfamiliar to her, so she naturally didn't dare to wander around.

Keiko Yamada gently tugged at Lin Haoran's arm, a shy blush rising on her cheeks, her voice as sweet as honey: "Really, Haoran-kun? Where shall we go?"

Looking at her adorable appearance, Lin Haoran couldn't help but reach out and gently pinch her nose, saying affectionately, "Let's go see the night view of Victoria Harbour first. The night view there is the best in Hong Kong. The dazzling lights reflected on the sea are breathtaking."

Afterwards, I'll take you to the Central Pier to board a yacht. We'll cruise around on the sea, enjoy the sea breeze, and experience the unique charm of Hong Kong's waters. If we're lucky, we might even see dolphins leaping out of the water.

Upon hearing this, Keiko Yamada exclaimed with delight, "Wow, Haoran-kun, you've arranged everything so wonderfully! I've never been on a yacht before, this will definitely be the most unforgettable experience I've had in Hong Kong!"

At this moment, the butler came over and said respectfully, "Mr. Lin, dinner is ready. It is prepared according to your instructions, with dishes that are quite special to Hong Kong."

Upon hearing this, Lin Haoran nodded, then turned to Yamada Keiko with a smile and said, "Come on, let's wash our hands and then go eat together!"

Keiko Yamada nodded obediently.

After washing their hands, the two went to the dining room and saw that the table was full of exquisite dishes.

The tender steamed grouper is drizzled with fragrant soy sauce and sprinkled with bright green scallions.
The bright red Typhoon Shelter Crab is fragrant with garlic and crab aroma.

And then there are those crystal-clear shrimp dumplings, with a soft and chewy outer skin and a generous filling that exudes the fresh sweetness of shrimp meat;
And steaming hot claypot rice, with a layer of golden and crispy rice crust at the bottom of the pot, exuding an enticing aroma.

Keiko Yamada's eyes lit up as she looked at the table full of delicious food. She couldn't help but swallow hard and exclaimed, "Haoran-kun, all these dishes look so delicious! I want to try them all!"

Lin Haoran smiled and pulled out a chair for her, saying, "Sit down and have a taste. Hong Kong's cuisine is quite unique. See if it suits your taste."

Keiko Yamada sat down gently, picked up her chopsticks, carefully picked up a shrimp dumpling, and put it in her mouth.

The tender shrimp meat melted on her tongue, and she squinted her eyes in satisfaction, giving a thumbs up and saying, "Haoran, these shrimp dumplings are so delicious! They're so fresh I almost swallowed my tongue!"

Lin Haoran was amused by her appearance, picked up another piece of stir-fried crab and put it in her bowl, saying, "Try this stir-fried crab too, it tastes pretty good."

……

After dinner, Lin Haoran took Yamada Keiko to Victoria Harbour.

By this time, night had completely fallen, and the city lights were on, making Victoria Harbour look like a dream.

The neon lights on the skyscrapers flickered, reflecting off the lights on the sea, creating a magnificent and colorful scene.

Keiko Yamada stood on the shore, captivated by the beautiful scenery before her. She couldn't help but exclaim, "Hiroko-kun, this place is so beautiful, like a fairy tale! I've never seen such a beautiful night view before."

Although Tokyo was also prosperous and developed in this era, its skyscrapers were too scattered, making its skyline completely incomparable to the compact and dazzling night view of Hong Kong.

The lights of Hong Kong seem to have been meticulously woven, each one blending perfectly into the night, outlining the unique charm of this city.

Keiko Yamada was captivated by the beautiful scenery, accompanying her beloved man with eyes full of infatuation.

She gently took Lin Haoran's arm, rested her head on his shoulder, and murmured, "Haoran-jun, if only time could stand still at this moment."

Just then, Li Weidong hurried forward, holding a mobile phone tightly in his hand, and handed it to Lin Haoran, saying, "Boss, someone is calling you."

(End of this chapter)