In Hong Kong, we build a global business empire

New York, Midtown Manhattan, Forbes headquarters, high-level conference room.

Outside the window, the winter gloom hung in the air, but inside, a scene of fervent revelry unfolded.

The expensive champagne was opened roughly, the golden liquid spraying out and mingling with the thick smoke from the cigars.

"Cheers! To the great cause of journalism!" Malcolm Forbes himself was beaming, raising his glass high, his voice booming with barely suppressed excitement.

Richard Ellis, Senior Vice President of Content Strategy, who was standing next to him, also excitedly raised his glass to join in the celebration.

In front of him, on the conference table, lay a newly printed telegram, filled with shocking headlines and figures.

On the table were several of the latest news bulletins from the Far East, filled with news about the Hong Kong property crisis:

Hong Kong property stocks suffered a Black Wednesday, with the Hang Seng Index plunging more than 14% in a single day!

"Panic spreads! Blue-chip stocks such as Swire Properties, Cheung Kong Holdings, and Sun Hung Kai Properties led the decline, with many real estate stocks falling by more than 15% in a single day!"

Panic gripped Hong Kong's four major stock trading halls, with brokers saying they had "never seen such a brutal sell-off!"

"Experts warn: Forbes report may be the final straw that breaks the camel's back, triggering a full-blown Hong Kong real estate crisis?"

Every line of text was like a shot of adrenaline, injected into the veins of these New York media elites, sending their adrenaline soaring.

This single battle has cemented Forbes' legendary status!
An American financial magazine company was able to shake the financial market of Hong Kong, thousands of miles away, with just one article, plunging the so-called "Pearl of the Orient" into unprecedented panic!
How could they not be thrilled and elated by such a huge influence that transcends geographical boundaries and penetrates markets?
So, the scene of opening champagne in the conference room, which is rarely seen, was made an exception today!

"boom!"

Another bottle of champagne was rudely uncorked, and the golden liquid poured into the raised glass like a small waterfall, the foam surging and almost overflowing the rim.

"For the authority of Forbes!" Publisher Steve Forbes, Malcolm Forbes' nephew and one of the family heirs, couldn't hide his excitement and shouted.

"For unparalleled news insight!" The head of the Asia region also puffed out his chest, his face beaming with pride.

The conference room was filled with the sounds of clinking glasses, laughter, compliments, and enthusiastic reminiscing about the dire state of Hong Kong, almost enough to lift the roof off.

The air was filled with the sweetness of champagne, the spiciness of cigars, and an almost manic sense of victory.

"Breaking news! The Hong Kong stock market is still plummeting today. Our article is the match that ignited the powder keg! No, it's the detonator! It's a bombshell!"

"Hong Kong property companies have seen their stock prices plummet by more than 25% in just two days!" James Krock, the head of research, walked in excitedly to report.

There is a color television set in the conference room.

At this moment, the television is broadcasting the English channel of RTV (Rediffusion Television), and the screen shows the host introducing the impact of the real estate crisis on the Hong Kong stock market.

Malcolm Forbes looked at the television, squinted, and enjoyed the blinding red light.

He could almost see through the screen the panicked faces of Chinese brokers and investors scrambling to sell their shares at the Hong Kong Stock Exchange, thousands of miles away.

A tremendous sense of exhilaration, of being above the market and holding the power of public opinion above life and death, filled his chest.

“Richard, James, and our entire Asian team, well done!” Malcolm turned around and patted Richard on the shoulder.

"This report pinpointed the most vulnerable and inflated bubble in Hong Kong's economy! The 'Pearl of the Orient' now seems more like a colorful balloon inflated by greed, ready to burst at the slightest touch!"

"It's all thanks to your support and decisiveness, boss!" Richard Ellis said quickly, then lowered his voice, feigning a hint of worry.

"But this time, we've completely offended Lin Haoran, the 'richest man in Hong Kong.' His business empire is deeply intertwined with Hong Kong real estate, and this time..."

"offend?"

Malcolm Forbes scoffed, interrupting Richard.

He walked to the head of the conference table, placed his hands on the tabletop, and swept his gaze over the several core executives present. His tone was full of unquestionable arrogance and arbitrariness: "We at Forbes are only responsible for the truth and the data!"

We are exposing objectively existing risks! As for Lin Haoran…”

He paused, a cruel smile curving his lips: "As for this 'Oriental upstart' who rose rapidly through the Far East real estate bubble and stock market speculation, his wealth myth was built on sand!"

Now that the tide has gone out, it's clear who's been swimming naked!

James Kroc immediately seized the opportunity, stepped forward, and spread his analysis report and several summaries of financial newspapers faxed from Hong Kong on the table.

"Boss, according to our research department's preliminary calculations based on publicly available data and the logic of our reports, real estate and related industries account for a very high proportion of Lin Haoran's assets."

If the Hong Kong property crisis continues to deepen and prices fall by more than half, the value of Lin Haoran's core assets is expected to evaporate by 40% to 50%, or even more!
This doesn't even include the direct impact of the stock market decline on the holding company's market capitalization, or the potential chain reaction of debt crises it could trigger!

He deliberately used words like "expected," "possibly," and "if," but in the current frenzied atmosphere, these cautious expressions were completely ignored, leaving only the alarming figure of "evaporation of 40%-50%" echoing in everyone's mind.

"Listen to that! 40% to 50%!"

Malcolm Forbes looked around at everyone and laughed loudly, "What does this mean?"
This means that the Hong Kong rich list previously released by MediaCorp may become unreliable overnight!
This means that his ridiculous "Eastern Rich List," which attempts to challenge the authority of Forbes, is fundamentally a pile of fabricated data built on quicksand!

A chorus of agreement and exclamations erupted in the conference room.

Everyone was stunned by this bold, or rather reckless, deduction and quickly accepted it as a "fact" that was about to happen.

The news broadcast by the RTV presenter about the plummeting stock price of Hong Kong Properties sounded like a triumphant song to them at that moment.

Richard Ellis also said with a smile, "I've received word that they plan to release the so-called 'Singapore Rich List' on January 1st, just as they had planned before. Perhaps this is our opportunity."

Malcolm Forbes nodded and said, "We must act immediately and launch the deadliest and most sustained pursuit!"
Richard, James, I need you to immediately assemble your best editorial and analytical teams and work through the night!

Tomorrow, I expect to see a more in-depth and incisive follow-up analysis in our magazine and partner media! The headlines need to be even more sensational!

"As for the report title, let's call it 'The End of the Bubble: How Did Lin Haoran's Wealth Myth Collapse Overnight?'"
Alternatively, consider "The Empire of Data Distortion: The Fatal Flaws of the 'Oriental Rich List' and the Shrinking of Lin Haoran's Real Wealth as Seen Through the Hong Kong Real Estate Crisis!"

He became more and more excited as he spoke: "The core argument is that Forbes, based on professional and objective analysis, has exposed the huge risks of Hong Kong real estate."
The risk unfolded, proving our prediction was accurate;
Lin Haoran, who is deeply tied to Xiangjiang Real Estate, will inevitably see his wealth shrink significantly, possibly to less than 50% of what it was before!
Therefore, the data in his fabricated "Oriental Rich List" is seriously distorted and has no credibility whatsoever!

The true benchmark for wealth, the globally recognized authority, is only found in Forbes!

"Perfect! Boss, that's a brilliant angle!" James Kroc excitedly noted. "We not only need to destroy his wealth and reputation, but also completely shatter his ambition to establish media dominance!"

Let the world see that in the Far East, only Forbes' voice is trustworthy!

"Get it done right away!" Malcolm Forbes waved his hand, the smoke from his cigar swirling upwards with his movement.

"I want to see the most detailed data analysis, even if it's mainly based on our inferences and news of the sharp drop from Hong Kong, the most incisive commentary, and the most striking headlines and cover designs!"

Contact our informants and freelance reporters in Hong Kong and get more details and descriptions of the "horrific" situation!
Tomorrow, we will show the world who is the undisputed king of the financial media field!
As for Lin Haoran, let him and his wealth, which has shrunk by more than half, become the latest testament to the authority of Forbes!

"Let ATV continue broadcasting those panicked images; that's the best endorsement of our reporting!"

Applause and cheers erupted again in the conference room.

The champagne continued to flow, and the cigar smoke grew even thicker.

On the television screen, the dismal red numbers of the Hong Kong stock market and the solemn faces of the traders remained unchanged.

This group of elites atop New York skyscrapers were indulging in fantasies of a “major victory” and the “imminent devastating blow to their opponents.”

They learned about markets thousands of miles away through overseas phone calls, faxes, and limited television news. The lag and one-sidedness of the information convinced them that they had the whole truth.

They were completely unaware that all their analysis and judgments were based on the fundamentally flawed premise that "Lin Haoran's wealth is deeply intertwined with Xiangjiang Real Estate and will inevitably plummet in tandem."

Little did they know that they were excitedly and meticulously stepping into a massive trap that Lin Haoran had already dug for them and for all Hong Kong real estate speculators.

The “panic” they witnessed was precisely the tool Lin Haoran used to “clear the area”;

Their assertion of "wealth shrinkage" actually obscures the fact that Lin Haoran's core assets have already been safely acquired and he holds a huge amount of cash waiting to be harvested.

The scene shifts back to Hong Kong.

On the morning of the 30th, Li Ka-shing and Hengsheng Group successfully signed an agreement, with Cheung Kong Holdings receiving a HK$20 billion loan.

For Hengsheng Group, this money is simply the depositors' funds, and there is no cost involved.

In return, they obtained a high-quality loan asset guaranteed by the entire Li Ka-shing family and secured by the "Cheung Kong" brand, with generous interest and extremely low risk in Hong Kong today.

That afternoon, Li Ka-shing personally delivered his famous, extremely humble and respectful "Statement of Acknowledgment and Confidence" to three newspapers: Oriental Daily News, Sing Tao Daily, and Hong Kong Commercial Daily.

Lin Haoran had already read the article beforehand, and it was indeed as humble and powerful as he had hoped, enough to cause a market earthquake.

It seems that Li Jiacheng has truly given in completely.

It's not surprising, though. They had no choice but to back down. If they didn't, the Li Ka-shing family might really face the crisis of Cheung Kong's bankruptcy.

Cheung Kong Holdings, currently facing limited liquidity and excessive debt, will inevitably be unable to sustain itself if the Hong Kong property crisis persists for too long. At that point, the "Cheung Kong Holdings" brand, which Li Ka-shing has painstakingly built up over half his life and is so proud of, may be forced to change hands or even go bankrupt and be liquidated.

He and his family will be burdened with heavy debts, falling from grace and losing decades of hard work.

For Li Jiacheng, who is over fifty years old and whose vigor has been largely worn away, this price is unbearable.

Therefore, he had no choice but to give in.

Not only must they sign the agreement, but they must also bow to public opinion and publicly express their "gratitude" and "confidence" to Lin Haoran.

This is the only way to preserve the family business and continue the family wealth, even though this path is full of humiliation.

Lin Haoran had precisely grasped this point, which was why he dared to set such harsh conditions and was certain that Li Jiacheng would accept them.

This was a complete and utter defeat, both in terms of strength and mentality.

In the blink of an eye, another day has passed, and it's December 31st.

That is, the last day of 1981!
Early in the morning, Lin Haoran sat up in bed.

Sleeping next to her was Liu Xiaoli, her eyes closed and her face rosy.

This is not the villa on Shek Shun Road, but the villa in the Mid-Levels of Wan Chai.

Guo Xiaohan went to Xiangshan in Guangdong Province and will stay for three days, so Lin Haoran has not returned to Shi Xundao in the past two days.

Lin Haoran yawned and tiptoed out of bed.

Unexpectedly, it still woke up Liu Xiaoli who was standing next to her.

Liu Xiaoli opened her beautiful eyes, her gaze filled with the hazy sleepiness of just waking up and a hint of languid allure.

Seeing Lin Haoran stand up, her beautiful eyes were fixed on him, and she occasionally revealed a sweet smile.

Last night, the two of them stayed up until 1 a.m., and it's only 8 a.m. now, which is still very early.

"Awake? Did I disturb you?" Lin Haoran turned around and looked at her, smiling as he spoke.

"No, no, I've had enough sleep." Liu Xiaoli quickly shook her head, her voice hoarse from the morning, which added a touch of softness.

She threw back the covers, sat up, and her perfect figure was instantly exposed to the air.

Last night, the two of them stayed up so late that they didn't even put on their pajamas before falling asleep in each other's arms.

At this moment, the morning light shines through the gap in the curtains, outlining her captivating curves.

She seemed to realize something, her face flushed even more, but she didn't rush to cover it up as before. Instead, she turned slightly to the side, picked up the robe from the bedside and put it on, her movements carrying a natural intimacy.

Ultimately, he was still young and impetuous. Looking at her perfect figure and stunning beauty, Lin Haoran's body immediately reacted.

However, considering how much trouble he had caused last night, and also because he was curious about what would be written in today's newspaper, he didn't pounce on her.

The two took a shower in the bathroom and then went downstairs to have breakfast.

While eating a sandwich, Lin Haoran took the dozen or so mainstream Hong Kong newspapers that the maid had prepared for him.

Oriental Daily News, Sing Tao Daily, Hong Kong Commercial Daily, Hong Kong Securities Daily, etc.

He first picked up the Hong Kong Securities Daily and started reading it.

Just as he expected, this newspaper, which was supposed to report on Hong Kong's securities news, was filled with reports of the disastrous state of Hong Kong's stock market.

Some even described yesterday's Hong Kong stock market as "Black Wednesday."

It wasn't just real estate stocks that fell; listed companies in other sectors were also greatly affected, with their stock prices falling to varying degrees.

Yesterday, out of nearly 1400 listed companies in Hong Kong, more than 1300 saw their stock prices decline.

This means that fewer than one hundred stocks rose!

This demonstrates the immense power of the Forbes report and how the panic it triggered spread throughout the entire market, not just the real estate sector.

Newspapers reported that all the major Hong Kong-listed companies were in a downtrend, including companies under Lam Ho-yin's control such as Hong Kong Electric Holdings, Cheung Kong Holdings, Hutchison Whampoa, and Standard Chartered Bank, all of which experienced varying degrees of decline.

These companies either have a significant real estate business or are financial companies affected by the real estate crisis.

Surprisingly, Hong Kong and China Gas, Kowloon Motor Bus, and Hong Kong Telephone did not fall; instead, they rose slightly.

They were among the few Hong Kong-listed companies that managed to keep their stock prices from falling yesterday.

Lin Haoran was not surprised.

He put down the Hong Kong Securities Daily and picked up another newspaper, the Sing Tao Daily.

The front page headline of the Sing Tao Daily was printed in bold and dignified black font:

A Sincere Thank You and a Firm Confidence to Mr. Lin Haoran and Hengsheng Group

Below the title is a photocopy of Li Ka-shing's handwritten signature, along with the full text of his statement as Chairman of the Board of Directors of Cheung Kong Holdings:

"At a time when Hong Kong's economy is facing severe challenges and the real estate market is experiencing turmoil, Cheung Kong Holdings, as one of the major real estate developers in Hong Kong, is also feeling the pressure."

At this critical moment, I, Li Jiacheng, on behalf of the Board of Directors and all employees of Cheung Kong Holdings, would like to extend my sincerest gratitude and highest respect to Mr. Lin Haoran and the Hengsheng Group under his leadership.

Mr. Lin Haoran is visionary and broad-minded. Hengsheng Group, upholding professionalism and social responsibility, resolutely extended a helping hand during the market turmoil, reaching an important financing cooperation with Cheung Kong Holdings, providing a total of HK$2 billion in financial support.

This timely act of kindness not only demonstrates Mr. Lin and Heng Sheng Group's recognition of Cheung Kong Holdings' long-term value and development potential, but also highlights their leadership responsibility in stabilizing the market and weathering the storm together.

This collaboration is based on fair and reasonable terms and involves efficient and professional processes. It has injected valuable liquidity into Cheung Kong Holdings and greatly enhanced our confidence and ability to meet current challenges and seize future opportunities.

I and the management team of Cheung Kong Holdings will uphold our commitments, make good use of every penny, go all out to advance the company's core projects, optimize the asset and liability structure, and protect the legitimate rights and interests of all partners, investors and employees.

We firmly believe that, with the joint efforts of insightful people from all walks of life, Hong Kong's economic foundation remains intact and its vitality undiminished.

Cheung Kong Holdings will seize this opportunity to further strengthen its foundation, improve management, and actively explore new models and paths during the industry adjustment period.

We are determined and capable of leading Cheung Kong Holdings out of this temporary gloom and repaying Mr. Lam Ho-yin and Heng Sheng Group for their trust, as well as the support of all shareholders and society, with more stable and outstanding performance.

Finally, I would like to express my sincere gratitude once again to Mr. Lin Haoran and Hengsheng Group for their great help.

We look forward to more close cooperation in the future, working together to contribute our modest efforts to the prosperity and stability of Hong Kong.

Cheung Kong Holdings
Chairman Li Jiacheng respectfully presents
December 30, 1981

The statement was written in a humble tone, elevating Lin Haoran and Hengsheng Group's assistance to the level of "leadership responsibility in stabilizing the market and weathering the storm together," while downplaying Cheung Kong's own predicament as "a temporary gloom" and "a period of industry adjustment."

The words are filled with admiration for Lin Haoran and gratitude for the cooperation, which is exactly the kind of public statement that a "survivor" should make to their "rescuer," and even more so.

Lin Haoran put down the newspaper, a faint smile curving his lips.

Li Jiacheng is indeed a clever man. This statement, though seemingly humiliating, actually portrays him and Cheung Kong Holdings as "able to bend and stretch" and "grateful for the return of favors."

To some extent, this is also sending a positive signal to the market that "there are benefactors to help during the crisis and CK Asset has received strong support," attempting to offset some of the panic.

At the same time, elevating Lin Haoran to a high position and binding him to the moral high ground of "stabilizing the market" is also a subtle strategy of binding him.

"Boss, Mr. Li's statement is very well written," Liu Xiaoli, who was sitting next to me, commented softly after glancing at the newspaper.

Although her usual job was just serving tea and water to Lin Haoran, organizing some documents, or massaging his shoulders and legs, she had learned some tricks of the trade by spending a long time with him.

"Yes, that's very thoughtful." Lin Haoran nodded and smiled, pushing the Sing Tao Daily aside to continue reading the next newspaper.

In reality, Li Jiacheng was forced into this situation; otherwise, the other party would not have published such an article.

After all, who in Hong Kong doesn't know that Li Ka-shing and Lam Ho-yin were practically business rivals? Lam Ho-yin had personally taken Hutchison Whampoa, this "treasure trove," from Li Ka-shing and then used the capital market to attack Cheung Kong Holdings, severely damaging its vitality.

Today, Li Ka-shing publicly expresses such humbly gratitude to his former adversary, now his "creditor."

The stark contrast and sense of compromise behind this statement are enough for any discerning observer to see the desperate situation Cheung Kong Holdings is facing, and Li Ka-shing's own choice to completely abandon confrontation and turn to dependence.

However, for the Hong Kong market at that time, the impact of this statement went far beyond that.

Lin Haoran could imagine the shock and interpretation this statement would cause throughout Hong Kong today.

He suddenly felt a sense of anticipation. (End of Chapter)