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"Mr. Lin, I apologize for disturbing you." Li Jiacheng was led up to the study on the third floor by a servant.

At this moment, Li Jiacheng's face was full of sorrow, and he had long lost his former high spirits.

The market panic triggered by the Forbes report put unprecedented pressure on even a real estate tycoon like him.

Cheung Kong Holdings' share price evaporated by more than 10% in a single day. This is not just a paper loss, but a collapse of market confidence.

The most important thing is not these, but that once a real estate crisis breaks out, it will be a continuous one, which means that for a long time to come, Cheung Kong will have difficulty recovering funds!
Cheung Kong Holdings has very little working capital left.

When the Forbes article spread throughout Hong Kong, Li Ka-shing thought his appeal would have some effect, but reality dealt him a heavy blow.

He was able to remain calm and composed when he still controlled Hutchison Whampoa.

However, his previous business battle with Lin Haoran not only caused him to lose control of Hutchison Whampoa, but also greatly weakened Cheung Kong Holdings, which can be described as a serious blow.

Seeing Lin Haoran leisurely enjoying tea and the view by the study window, Li Jiacheng felt a mix of emotions.

This young man always seems so calm and composed.

"Mr. Li, please sit down." Lin Haoran gestured for him to sit in the chair opposite him and personally poured him a cup of tea. "Try this Pu'er tea, it's freshly brewed."

Li Jiacheng thanked him, picked up his teacup, but had no heart to taste it.

He sighed: "Mr. Lin, you must have seen the market today. Forbes' move caught us off guard. Although you don't participate in any management of Cheung Kong Holdings, you are still the second largest shareholder of Cheung Kong Holdings, and the number of shares you hold is not much less than that of my Li family."

Therefore, on behalf of Cheung Kong Holdings, I earnestly request Mr. Lin to lend a helping hand and help us overcome this difficult time.” Li Jiacheng put down his teacup, his expression earnest.

He specifically emphasized Lin Haoran's status as the "second largest shareholder," which was a reminder that the rise and fall of Cheung Kong Holdings was also closely related to Lin Haoran's interests.

Indeed, when Lin Haoran's Galaxy Securities was competing with Li Ka-shing for Hutchison Whampoa, it conveniently acquired a full 38.4% of the shares, becoming the second largest shareholder after Li Ka-shing.

After that, he neither increased nor decreased his holdings.

However, at the time, Li Ka-shing did not want him to interfere in the management of Cheung Kong Holdings, fearing that he would swallow Cheung Kong Holdings as well, just like he had swallowed Hutchison Whampoa.

Therefore, there was an unwritten agreement between the two parties that Lin Haoran, as a financial investor, would not interfere in the daily operations of Cheung Kong Holdings.

But now and then.

Now that Cheung Kong Holdings is facing a severe crisis, this tacit understanding has become a card that Li Ka-shing can play.

He hoped to persuade Lin Haoran to lend a helping hand by using the concept of a "shareholder community of interests".

After hearing this, Lin Haoran slowly put down his teacup.

He did not immediately respond to Li Ka-shing's request, but instead turned his gaze to Victoria Harbour, where dusk was falling outside the terrace.

“Mr. Li,” Lin Haoran finally spoke after a moment, his voice calm and even, “I remember we had an agreement back then. My investment in Cheung Kong was based on my confidence in Mr. Li’s abilities and Cheung Kong’s prospects, but I would not participate in the day-to-day operations. I have always kept that agreement.”

He paused, then turned to look at Li Jiacheng: "Now that Cheung Kong is facing difficulties, as a shareholder, I am naturally concerned."

However, how should we help? And in what way? Mr. Li, could you please be more specific?

Li Jiacheng felt a tightness in his chest.

Lin Haoran's words seemed reasonable, but in reality, he was passing the buck back to Lin Haoran, asking him to reveal his hand first.

He gathered his thoughts and said in a deep voice, "Mr. Lin, what Cheung Kong is most urgently doing right now is to stabilize its cash flow, ensure the normal progress of several key projects, and avoid a chain reaction caused by a break in funding."

Therefore, I would like to earnestly request that Mr. Lin's Hengsheng Group relax the loan terms to help Cheung Kong Holdings overcome its difficulties!

At this point, Li Jiacheng's face showed a mixture of embarrassment and pleading.

For a proud and ambitious man like him, who had built a vast business empire from scratch, this request was an act of complete humility.

There was no other way; Cheung Kong Holdings had already exhausted its funds in its previous battles with Lin Haoran.

Just a few months later, Forbes exposed the Hong Kong real estate crisis, catching Li Ka-shing completely off guard.

During this period, several banks under the Hengsheng Group received instructions to tighten loan quotas and raise loan requirements.

In the previous business battle between Li Ka-shing and Lin Haoran, after Li Ka-shing lost, he transferred all of Cheung Kong Holdings' core financial businesses, including accounts, settlement, credit, financing, and foreign exchange, from Huifeng Bank to Hengsheng Group.

Therefore, Li Jiacheng has now shown considerable sincerity.

He had long since given up any thought of confronting Lin Haoran; he only hoped to preserve the foundation of Cheung Kong Holdings in this sudden storm.

The transfer of all core financial business to Hengsheng is both a gesture of goodwill and a sign of binding the two parties together, indicating that they are now in the same boat.

Li Jiacheng's move certainly demonstrates a remarkably humble attitude.

“Mr. Li, shouldn’t you be going to Mr. He Shanheng for this kind of thing? You should know that I rarely interfere in the management of Hengsheng Group,” Lin Haoran said with a smile.

“If I could get a solution from Mr. He, I wouldn’t need to bother you! Mr. He said that Cheung Kong Holdings’ current debt ratio is too high, reaching nearly 65%, and no new loans can be approved,” Li Jiacheng said with a wry smile.

He Shanheng's refusal was actually reasonable.

After all, if a real estate crisis were to fully erupt, property prices could shrink by more than 60%.

As a result, Cheung Kong Holdings, which uses real estate as its main collateral, will see its asset value shrink significantly, while its liabilities will remain substantial.

A debt ratio of 65% might be acceptable in normal times, but with the expectation that asset prices may be halved or even lower, this debt ratio means extremely high risk, and could even turn into insolvency in an instant.

As the actual leader of Hengsheng Group, He Shanheng, with a background in risk control, naturally had to assess risks with the most conservative attitude.

Refusing to grant new loans is a professional decision and also demonstrates responsibility to depositors and shareholders.

Li Jiacheng certainly understood this principle, which is why he bypassed He Shanheng and went directly to Lin Haoran.

He was betting that Lin Haoran, as the second largest shareholder of Cheung Kong Holdings, would consider the issue from a longer-term and more holistic perspective, and might be willing to take on some immediate risks for the sake of potential future gains.

Lin Haoran showed no surprise after listening to Li Jiacheng's complaints.

He Shanheng's refusal was entirely reasonable, and in fact, it was the result of his suggestion.

He needs to make Li Jiacheng hit a wall and completely despair before he will cherish the "opportunities" that may come next.

"Mr. He's risk control standards have always been strict, which is the cornerstone of Hengsheng Energy's steady development." Lin Haoran first affirmed He Shanheng's decision, indicating that he respected professional management. "Mr. Li, Cheung Kong's debt ratio of nearly 65% ​​has indeed crossed the red line in the current environment."

Li Jiacheng's heart sank to the bottom.

Even Lin Haoran said so, is there really no room for maneuver?

If this had happened six months ago with Cheung Kong Holdings, even if a real estate crisis had broken out in Hong Kong, Li Ka-shing wouldn't have had any financial problems.

In fact, in another world, Li Ka-shing took advantage of the real estate crisis and used the cash flow he had to rapidly expand against the trend, purchasing multiple plots of land during the real estate downturn to prepare for the subsequent rebound in housing prices.

However, in the previous competition with Lin Haoran, Cheung Kong Holdings had already nearly exhausted its cash flow.

Li Ka-shing had actually anticipated that a real estate crisis was imminent in Hong Kong.

But he didn't expect it to happen so suddenly.

This left him with absolutely no time to prepare.

Looking at his former opponent, who had once clashed fiercely with him but now appeared old and weary, Lin Haoran felt little satisfaction.

"Mr. Li, if you had been able to humble yourself and make plans earlier, even half a year ago, or even a year ago, the situation might have been completely different." Lin Haoran's tone was calm, but every word was like a needle.

“I remember that a year ago, when Hongkong Land Group began to sell off non-core assets on a large scale to raise funds, the market was full of ridicule. Mr. Li probably thought I was too conservative and missed the last feast of the real estate bull market, right?”

Li Jiacheng's face turned pale.

Indeed, he was ambitious at the time, and with more cash flow after acquiring Hutchison Whampoa, he naturally wanted to take advantage of the market frenzy to acquire land everywhere.

Therefore, they were quite puzzled by Lin Haoran's "counter-trend" sale, and even privately thought that "young people are ultimately not bold enough".

Looking back now, it wasn't a lack of courage at all; it was clearly a decisive move based on foresight and the courage to make tough decisions!

"Lin Sheng's insight is truly remarkable; I admire him," Li Jiacheng said bitterly, his admiration tinged with deep regret.

He didn't lose unjustly; his opponent had a longer-term vision and was better prepared.

"It's not that I have keen insight, it's just that I respect the rules and have a sense of awe for risks." Lin Haoran waved his hand, as if he were talking about a trivial matter. "The market has cycles, and it will inevitably cool down after it overheats."

I sell at the peak, you buy at the peak, that's all.

This understated comparison highlights the difference in their strategic vision.

Li Jiacheng felt his face burning.

In the past, if Li Ka-shing had been "taught a lesson" like this to his face by a young businessman, he probably would have already stormed off.

But times have changed, and circumstances are beyond our control.

He could only suppress the humiliation and regret in his heart, lower his head, and listen silently.

“Then, Mr. Lin,” Li Jiacheng raised his head, his eyes filled with the last glimmer of hope, “given the current situation, is there any hope for Cheung Kong Holdings? You just mentioned structured financing using specific high-quality assets…”

“There is hope, of course there is hope,” Lin Haoran affirmed. “Cheung Kong’s foundation is still intact, and the value of those core assets will not disappear completely due to temporary panic.”

However, Li Sheng needs to think carefully about the method and cost of the rescue.

He stood up, walked to the desk, picked up a folder that had been prepared beforehand, returned to his chair, but did not immediately hand it to Li Jiacheng.

This document was actually faxed to him by He Shanheng.

Li Jiacheng went to He Shanheng to ask for money, and He Shanheng naturally told Lin Haoran as well.

Lin Haoran had already guessed that Li Jiacheng would come knocking on his door sooner or later.

However, he did not expect it to happen so quickly; less than half a day had passed.

“I can get Heng Sheng to design a financing plan for Cheung Kong, with a limit of HK$2 billion,” Lin Haoran said, stating a figure.

Two billion!
Li Jiacheng's heart skipped a beat. This was enough to resolve most of Cheung Kong's current liquidity crisis, and even allow them to make strategic investments during the property market downturn!

“However,” Lin Haoran’s voice was like ice water being poured on him, “the conditions will not be easy; in fact, they can be described as extremely harsh.”

He gently placed the folder on the coffee table and pushed it over.

Li Jiacheng took a deep breath and opened the folder with trembling hands.

There weren't many clauses, but each one made his pupils constrict and his breathing become labored.

Article 1: Unlimited joint and several liability guarantee by an individual.

Li Jiacheng and his core family members are required to provide unlimited joint and several liability guarantees for this financing with all of their personal and family assets.

If Cheung Kong Holdings is ultimately unable to repay its debts and defaults, creditors have the right to pursue all assets of the Li Ka-shing family until the debts are fully repaid.

Article 2: Brand Pledge and Dividend Clauses.

The brand "Changjiang," founded by Li Jiacheng and carrying the family's honor and business reputation, needs to be pledged to the creditor Hengsheng Group or an institution designated by Lin Haoran.

If a breach of contract occurs, the creditor has the right to acquire ownership and usage rights of the "Cheung Kong" brand free of charge, and Cheung Kong Holdings must change its name.

Article 3: Distribution will be phased and linked to the stock price.

The 2 billion yuan financing will be disbursed in four batches, with each batch containing 500 million yuan.

Each subsequent disbursement is contingent upon the previous batch of funds achieving the expected results and Cheung Kong Holdings' share price recovering by at least 5% from the date of signing.

The first tranche of 500 million will be disbursed within three working days after the signing of the agreement and the completion of the guarantee and brand pledge procedures.

Article 4: Public Acknowledgments Clause.

Within three working days of receiving the first batch of financing, Li Ka-shing, in his capacity as Chairman of the Board of Directors of Cheung Kong Holdings and in his own name, must issue a public statement in at least three mainstream financial media outlets, including Oriental Daily News, to express his sincere gratitude to Mr. Lam Ho-yin and Heng Sheng Group for their timely assistance, and to promise to use the funds properly to lead Cheung Kong Holdings out of its predicament.

Article 5: Strategic Coordination Obligations.

During the financing period, Cheung Kong Holdings must, in accordance with commercial principles, actively respond to negative public opinion from international media such as Forbes regarding Hong Kong's economy and work together to maintain market confidence.

After reading it, Li Jiacheng felt a chill run from the soles of his feet straight to the top of his head.

This is no financing agreement; it's a mixture of a servitude contract and spiritual castration!
The unlimited joint liability of an individual means that he has gambled all the wealth accumulated by three generations of the Li family. If he fails, he will be completely bankrupt and even heavily in debt.

Brand pledging is an even more malicious act.

"Cheung Kong" is more than just a trademark; it symbolizes his rags-to-riches story and the Li family's banner in Hong Kong's business world.

Losing the "Yangtze River" is like removing his backbone and spiritual sustenance.

The phased distribution of funds linked to stock prices turned the life-saving money into a carrot dangling in front of a donkey, making every step subject to external control and potentially interrupted by uncontrollable market fluctuations.

Public acknowledgments...

This is tantamount to trampling on his dignity.

He must publicly express his gratitude to his former adversary, now his "creditor," and announce to the world his downfall and his plea for help.

Strategic cooperation, seemingly reasonable, is in fact a form of binding, meaning that in the future battle of public opinion, he must stand on Lin Haoran's side.

“Mr. Lin,” Li Jiacheng’s voice was hoarse and almost incoherent, “aren’t these conditions a bit too much…”

"Too much?" Lin Haoran interrupted him, his eyes calm and unwavering. "Mr. Li, this is business, not charity."

Hengsheng took a huge risk and invested 2 billion yuan to save a company with a debt ratio of 65% and an asset value that could be halved.

What we need is equivalent protection and sufficient return expectations; each of these terms corresponds to a specific risk.

He looked directly at Li Jiacheng and continued, "Mr. Li, you can choose not to sign, but have you considered where else you can get two billion under any conditions besides me?"
Standard Chartered? Or those competitors who are already struggling to survive?

“I…” Li Jiacheng was speechless.

He knew that what Lin Haoran said was true.

The fact that he's sitting here today to negotiate is already an opportunity given to him by the other party out of consideration for their "shareholder" relationship and the potential for future resource integration.

If it were someone else, they wouldn't even have a chance to talk.

He had considered Standard Chartered, but after transferring all of Cheung Kong's collaborations from Huifeng to Hengsheng Group, he effectively severed all ties with Standard Chartered.

Looking for Standard Chartered now?
It's a joke that he'd even bother with such a jerk.

As for other banking institutions in Hong Kong?

International banks have higher standards, so local Hong Kong banks shouldn't have high hopes.

Therefore, Cheung Kong Holdings can only place its hopes on Heng Sheng Group now.

"Or is Mr. Li still hoping that the real estate crisis won't be as serious as Forbes says, that housing prices won't fall that much, and that the market will recover soon?" Lin Haoran's voice carried a hint of sarcasm.

"Let me tell you, this crisis will only be more serious than Forbes describes, and it will last longer, because you and I both know that the problems of Hong Kong real estate are deeply entrenched and difficult to resolve."

High leverage, high land prices, high vacancy rates… these problems cannot be solved without a thorough clearing out. Hoping for a short-term V-shaped rebound? That's wishful thinking.

He paused, then said firmly, "If you don't agree now, you won't even have the chance to agree in the future. When Cheung Kong goes bankrupt and is liquidated, the 'Cheung Kong' brand will be worthless, your personal reputation will be ruined, and your family's wealth will vanish. That will be the real dead end."

“Don’t forget, Mr. Lin, your own shares are not much less than mine. If Cheung Kong Holdings collapses completely, the losses you, as the second largest shareholder, will be no small amount!” Li Jiacheng said, his voice trembling slightly with excitement, as if he had grasped the last straw.

He tried to shake Lin Haoran's resolve by threatening to harm their shared interests, even if it was just to gain the slightest leeway.

Upon hearing this, Lin Haoran was not moved at all; instead, he chuckled softly.

“Li Sheng, Li Sheng,” he shook his head, his tone leisurely, “it seems you still don’t fully understand the difference between us, nor have you fully grasped my previous plan.”

He stood up, walked to the wine cabinet, took out a bottle of red wine and two glasses, poured them slowly, and handed one of the glasses to Li Jiacheng, whose face was filled with surprise and uncertainty.

“I own 38.4% of Cheung Kong Holdings. That’s right, the book value of this investment has indeed shrunk significantly after the stock price crash.” Lin Haoran swirled the wine in his glass, the red liquid reflecting a mesmerizing luster under the light.

"But, Mr. Li, you seem to have overlooked one point: how did I acquire this 38.4% stake in Cheung Kong Holdings?"

Li Jiacheng was taken aback.

"When I had Galaxy Securities acquire Cheung Kong shares, it wasn't to control Cheung Kong, but to put pressure on you to give up Hutchison Whampoa. You know that."

Lin Haoran took a sip of wine and continued, "A year ago, I sold a lot of real estate properties at the peak of the market frenzy."

Simply put, I used the money I cashed out at the peak of the property bubble to invest in Cheung Kong Holdings, a 'high-quality stock,' at a relatively rational price.

He put down his wine glass and looked calmly at Li Jiacheng: "Even if Cheung Kong's stock price drops by half or more, from the perspective of the overall capital chain and asset allocation, my investment will not be seriously damaged."

Because my principal has already landed safely at a higher level, investing in long-term assets is just part of my asset allocation, an added bonus rather than a matter of life and death.

Besides, compared to my total assets, the value of my stake in Cheung Kong Holdings is really negligible!

This is the source of confidence for Hong Kong's richest man.

Li Jiacheng shuddered, cold sweat beading on his forehead.

Lin Haoran's words were like a cold scalpel, dissecting the last shred of hope deep within his heart.

Yes, deep down he also harbored the illusion that "the crisis might not be that serious," "the government might bail out the market," and "it will pass if we just wait it out."

But now, Lin Haoran has ruthlessly shattered this illusion.

The other party was not exaggerating; rather, it was based on a cold-blooded assessment of economic laws.

This judgment has been proven by the other party's actions over the past year; he foresaw this day long ago!
As for hoping that Lin Haoran would lend a helping hand out of consideration for their shared status as shareholders of Cheung Kong Holdings, that idea now seems incredibly naive and laughable.

Lin Haoran had already stepped out of the game and become the player, while he himself was stuck in the quagmire, becoming one of the "asset packages" being evaluated by the other party, and even the kind that most needed to be "discounted".

The air in the study was so heavy it was almost suffocating.

Li Jiacheng could clearly hear his own heavy and labored breathing, each breath carrying a chill of despair.

His hand holding the wine glass trembled slightly, and the red wine in the glass rippled, reflecting his ashen and distorted image.

"I..." He opened his mouth, but found that his throat was too dry to make a complete sound.

All the negotiation skills, the courage to struggle, and even the last shred of hope were completely shattered by Lin Haoran's calm yet cold analysis.

The other party not only anticipated the market and his predicament, but also his current reaction and futile struggle.

This was a game whose ending was predetermined from the very beginning.

Looking at the business tycoon in front of him, who seemed to have had all his energy drained in an instant, Lin Haoran felt little sense of victory, but rather a sense of melancholy.

After all, the other party was a big shot whom he had grown up listening to stories about in his previous life.

He sat back down in his chair and downed the rest of the wine in his glass.

"Mr. Li, time is running out. The market won't wait for you to agonize over this. Every minute, Cheung Kong's value is evaporating, and your options are shrinking."

You know the current situation of Hong Kong real estate. I am a major shareholder of Cheung Kong Holdings, which is why I am willing to give you this opportunity. I would never give such an opportunity to anyone else.

The choice is yours: sign this agreement and seize this last chance, or cling to that illusory shareholder sentiment and wishful thinking, and watch the Cheung Kong ship sink.

He stopped urging him and offering no further explanation, simply watching Li Jiacheng quietly, awaiting his final verdict.

"I..." Li Jiacheng closed his eyes, as if he had aged ten years in an instant, his back hunched over.

"I sign."

He used all his strength to utter those two words. (End of Chapter)