In Hong Kong, we build a global business empire

Lin Haoran arrived outside He Shanheng's office and, looking through the glass window, saw that the other party was indeed making a phone call.

Eighty-two-year-old He Shanheng came to work early on New Year's Day, which is quite hard work for him.

However, things like what happened in Hong Kong today wouldn't have been possible without his presence.

Lin Haoran knocked on the door, then opened the office door and went inside.

He Shanheng nodded to Lin Haoran, pointed to the telephone receiver, and continued making the call.

More than a minute later, he put down the phone.

"These foreigners are adding fuel to the fire!" He Shanheng hung up the phone, took off his reading glasses, rubbed his temples, and spoke with a mixture of exhaustion and anger.

"That was a call from the Commercial Crime Bureau of the Police Department. They have begun investigating the companies named in the newspapers. Several of their executives did attempt to leave the country this morning but were stopped."

The problem is that the news spread very quickly, and now the company's creditors and citizens who bought off-plan apartments have begun to gather at the police station and downstairs at the company, demanding that people be arrested and that their money be refunded.

It's complete chaos!

Lin Haoran sat down on the sofa opposite him, his expression calm.

"As expected, the panic needs an outlet, and now the focus is all on these 'fraudulent' companies, which may not be a bad thing for us."

"Us?" He Shanheng looked up at Lin Haoran. "Haoran, the Governor's Office should have contacted you, right? Rumors are circulating that only Hengsheng Group can save the Hong Kong property market."

At this point, every step Hengsheng takes will be scrutinized under a microscope. What are you planning to do? Hengsheng Group is not a charity, nor can it possibly protect the entire Hong Kong real estate market.

“Uncle He, this is exactly what I wanted to discuss with you.” Lin Haoran leaned forward slightly, his voice steady. “The Governor will indeed be coming, around 9:40.”

His goal was clear: he wanted us to step up and act as a 'stabilizing force' to stabilize the market. But my solution for him wasn't simply to throw money at the market to rescue it.

He briefly recounted to Ho Sin-heng the ideas on "governing the market" and "guiding the market" that he had discussed with Mak Lai-ho over the phone.

He Shanheng listened, his brows sometimes furrowing and sometimes relaxing.

After Lin Haoran finished speaking, he remained silent for a moment, his fingers tapping lightly on the mahogany desk.

"Clean up the cancerous growths, guide capital, and establish a high-quality asset restructuring fund... the approach is correct and far superior to blindly propping up the market," He Shanheng said slowly, with the experience of decades of navigating the business world.

"But the timing is very difficult to control. Who should be eliminated? How should they be eliminated? Who will determine which assets are 'high-quality assets'? Since Hengsheng is leading this fund, we will inevitably be accused of taking advantage of the situation and acquiring competitors at low prices."

Also, that mad dog Chen Songqing, he's got nothing to lose now. If we make too big a move, will it push him to the brink and expose more industry secrets, or even throw mud at us?
Even at Hengsheng, not every transaction can withstand the most rigorous scrutiny.

He Shanheng's concerns are very real.

The business world is like a battlefield. Hengsheng Group's success today is certainly due to Lin Haoran's vision and courage, but it is also inseparable from some flexible methods and gray-area operations under specific historical circumstances.

A thorough "house cleaning" is bound to have repercussions for oneself.

Of course, compared to other banks, the banks under the Hengsheng Group are obviously quite clean.

“Uncle He, you’re right.” Lin Haoran nodded. “Therefore, the ‘cleanup’ must be selective and must be guided by the law and official investigations. We are not law enforcers; we are cooperators.”

The Governor's Office needs our funds and market influence to stabilize the situation; we need to leverage official power to establish rules and remove obstacles.

This is a transaction, and also a dance.

He paused, then continued, "As for Chen Songqing, the more he exposes, the faster he will die. He thought he could save himself by dragging everyone down with him, but he didn't realize that when the entire system realized he was the biggest cancer, he would be the first one to be removed."

What we need to do is ensure that the excision surgery is performed by an official, while we provide the 'scalpel' and the 'postoperative rehabilitation plan'.

Those high-quality projects dragged down by Jianing, as well as small contractors and material suppliers in distress but with sound fundamentals, are precisely the targets of our fund for absorption and integration.

"As for outside opinions," Lin Haoran said, a cold glint in his eyes, "the victors are kings, the losers are villains. Once the storm passes and the market returns to order, people will only remember who rebuilt prosperity from the ruins and who protected their jobs and assets."

Some of the controversies during the process are insignificant in the face of the result.

Moreover, we are not plundering without compensation; we will offer fair prices, guarantee the employment of our employees and the rights of small business owners. This scores highly politically, and the Governor's Office will fully support us.

Looking at the young leader in front of him, He Shanheng found it hard to believe that he was only in his twenties, with confidence and control in his eyes.

This kind of composure in the face of towering waves, even the ability to calmly plan a course and even attempt to harness the wind and waves for one's own use, secretly startled He Shanheng, a seasoned veteran, while also earning his admiration.

"It seems you've thought it all through." He Shanheng breathed a sigh of relief. "How do you need my cooperation?"

"three things."

Lin Haoran stated clearly, "First, establish an internal joint evaluation team immediately, with Hengsheng Bank, East Asia Bank, Daoheng Bank, and Huifeng Bank as the core members. The list of members must be absolutely reliable."

Based on the intelligence we have and the information we will soon receive from the Governor's Office, we quickly compiled a list: Category A, 'cancer' companies that must be cut off and allowed to go bankrupt;
Category B targets are those with serious problems but whose core assets are still acceptable and who have the opportunity for debt restructuring or mergers and acquisitions.

Category C: Companies temporarily affected but with sound fundamentals, worthy of support or cooperation. This list forms the basis for all our actions.

“Okay, I’ll personally take the lead and have the general managers of several banks come to a meeting immediately.” He Shanheng noted it down.

Lin Haoran continued, "Secondly, we need to prepare a draft plan for a 'high-quality asset restructuring fund,' with an initial size of HK$100 billion. The major banks under the Hengsheng Group will lead the investment, and we can also bring in Standard Chartered Bank, Bank of Communications, Citibank Hong Kong Branch, and others."

At the same time, several large real estate developers with relatively good reputations and sufficient funds, such as Hongkong Land, Swire Properties, Sun Hung Kai Properties, New World Development, and Cheung Kong Holdings, were invited to participate.

Even if they only contribute a token amount of money, we must bring them in to share the risks and alleviate the pressure from public opinion.

The fund's investment principles, operating model, and especially the protection clauses for small business owners and suppliers, must be clearly stated so that no one can find fault with them.

He Shanheng nodded: "Bringing them in, no, building an alliance together, is a good move. It not only strengthens our momentum but also prevents Hengsheng from becoming a target by dominating the market."

I instructed the group's lawyers and key personnel in the investment department to prepare a draft immediately.

“Third, and most importantly,” Lin Haoran said in a serious tone, “Uncle He, we need to immediately initiate disciplinary reviews and risk self-examinations within the group, especially among core executives and key departments such as finance, legal affairs, and public relations.”

This storm will inevitably bring up countless old grievances, and we must make sure that the fire doesn't spread to ourselves.

If there are any historical vulnerabilities that could be exploited, they should be addressed, rectified, or an irrefutable explanation prepared now.

In particular, it is essential to clarify any potential related-party transactions between some of the early real estate projects undertaken by its affiliated banks and certain companies or individuals now facing problems. Any necessary supplementary documentation must be provided, and explanations must be given where required.

Whether it was Bank of East Asia, Hang Seng Bank, Dao Heng Bank, or Hui Feng Bank, he hadn't been in the banking industry for very long. He couldn't control what these banks did before the acquisitions, but he had to ensure that the business that happened after the acquisitions was clean and transparent.

In particular, the complex transactions and relationship networks of Dao Heng and HSBC, two long-established British banks, are deeply intertwined and require careful analysis.

He Shanheng's expression hardened, and he slowly nodded: "A tall tree catches the wind, so it's time to tighten the fence. I'll arrange this matter, and it will be done in secret, with only a few of the most reliable people knowing about it."

The two then quickly exchanged opinions on some details.

The clock on the wall points to 9:20.

Just as they were discussing some minor details, Lin Haoran's mobile phone rang urgently again.

He glanced at the number; it was the editor-in-chief of Oriental Daily, a newspaper under the Oriental Media Group.

"Boss, it's an emergency!" the editor-in-chief said anxiously.

“We have just received an anonymously delivered package containing numerous copies of so-called ‘internal approval documents’ concerning huge loans made by the Caring Group, including Yu-Ming Finance, Hong Kong Bank of Communications, West Texas State Bank, and other Hong Kong and international financial institutions, between 1979 and 1981.”

There are also some vague fragments of correspondence that suggest the transfer of improper benefits.

In addition, there is a 'whistleblower statement' allegedly signed by Chen Songqing, claiming that these banks and finance companies knew that Jianing's accounts were problematic, but for the sake of high interest rates and business scale, they allowed or even assisted it in falsifying documents to obtain loans, and were 'accomplices' in the whole scam!
The sender demanded that we publish it before noon, or they would provide it to other international media!

Lin Haoran was somewhat shocked.

Dozens of financial institutions?
He originally thought that Jia Ning Group only cooperated with a few very strong banks or finance companies such as Yu Min Finance and Hong Kong Bank of Communications to obtain loans through complicated financial operations and fictitious transactions.

But according to the editor-in-chief's description, the scope and amount of money involved far exceeded his expectations!

He already knew that Jia Ning's scam was huge, but he never expected Chen Songqing to be so audacious as to drag more than half of Hong Kong's major financial institutions into the mess!
This is no longer just a problem for Caring Group; it could be a chain reaction bomb that could detonate the entire Hong Kong financial system!
Moreover, there are quite a few international financial institutions involved.

As expected, Chen Songqing launched his most frantic counterattack, directly targeting international banks in an attempt to muddy the waters and even incite conflict between foreign banks and local forces, as well as between banks themselves!
"Have the items been verified?" Lin Haoran asked in a deep voice.

"After a preliminary look, the document appears very realistic, but the key parts are all photocopies, and the content has been carefully edited, making it difficult to distinguish between genuine and fake. However, the signature on the statement is very similar to the handwriting sample of Chen Songqing that we have," the editor-in-chief replied quickly.

"Boss, what do we do now? If these materials are obtained and published by other media, especially international media, it will be a devastating blow to the reputation of the entire banking industry in Hong Kong!"
If they are proven to be 'co-conspirators,' it could trigger a global crisis of trust and regulatory investigations! Lin Haoran's mind raced.

Chen Songqing's move was extremely vicious.

He not only wanted to drag Heng Sheng down with him, but also wanted to completely destroy the bridge connecting Hong Kong with the international financial market, so that no one could escape unscathed.

If numerous financial institutions in Hong Kong are embroiled in scandals, the "restructuring fund" spearheaded by Hengsheng will immediately lose important international funding partners, and may even jeopardize Hengsheng's own overseas financing channels.

Of course, with the stable funds of the banks under the Hengsheng Group, there is no need for overseas financing channels. However, this would seriously hinder Hong Kong's recovery as an international financial center, and in the long run, it would also be detrimental to the Hengsheng Group, which is rooted here.

Even more frightening is that once international capital loses confidence in Hong Kong and withdraws on a large scale, the entire economy will fall into a long-term recession, and even the most "high-quality assets" will depreciate in the continuous deflation and depression.

Hong Kong's status as one of the world's three major financial centers will be completely shaken, and it may even never recover.

This is not only Chen Songqing's madness, but also a devastating blow to the future of Hong Kong!
Crazy, absolutely insane.

I thought Chen Songqing's revelations about the debt crises of small and medium-sized real estate companies were ruthless enough, but I didn't expect his subsequent methods to be even more ruthless!
Chen Songqing's "financial nuclear blackmail" has gone beyond the scope of commercial competition and is a terrorist attack on the economic lifeline of the entire city!
However, it's interesting that they actually sent the information to the Oriental Daily News first.

"Bring these documents over here immediately, I need them!" Lin Haoran said directly.

"Okay, boss, please wait for me for twenty minutes, I'll be right there!" The editor-in-chief of the Oriental Daily said and then hurriedly hung up the phone.

After hanging up the phone, Lin Haoran looked at He Shanheng, who had a serious expression, and said quickly, "Uncle He, the situation is worse than we thought. Chen Songqing has gone mad. He has so-called 'black material' on dozens of banks and finance companies. He is blackmailing the media and threatening to detonate the entire financial system. Editor-in-Chief Li is on his way here with the material."

He Shanheng took a deep breath, suppressing the shock in his heart: "You mean?"

“The Governor’s Office must be even more concerned about this than we are. Fortunately, the Governor should be arriving soon. Let’s see how he handles it!” Lin Haoran said.

Although Chen Songqing's affairs did not involve him, Hong Kong was ultimately the base of his business empire. How could he sit idly by and watch it be completely ruined by this mad dog, Chen Songqing?
He Shanheng nodded.

About ten minutes later, sure enough, the security supervisor of the Recreation Building called to report that the Governor had arrived and was taking the private elevator up.

"The Governor-General should be arriving soon." Lin Haoran stood up. "Uncle He, would you like to come with me to see him?"

“Let’s go.” He Shanheng stood up and straightened his suit. “You’re the main character in this play, but this old guy has to help you set up the stage.”

The two walked out of the office side by side. The corridor was brightly lit, yet filled with a quietude that seemed to foreshadow an impending storm.

Although all employees were at their posts, the atmosphere was noticeably more somber than usual, with phones ringing incessantly and conversations conducted in hushed tones.

As he arrived at the elevator, the elevator doors opened. Inside, besides Governor Merrih, were several high-ranking officials from the Governor's Office, all of whom Lin Haoran recognized.

After exchanging pleasantries with several government officials, Lin Haoran led He Shanheng into the company's conference room.

Along the way, the employees and management who worked overtime on New Year's Day were all shocked.

Unexpectedly, the governor personally visited a businessman, who was of Chinese descent!
This is a very rare occurrence in Hong Kong.

Although the Hong Kong government sought help from some tycoons during the stock market crash and property crisis of 1973, it mostly did so through private meetings or summons.

The fact that the governor personally led a delegation to the Hengsheng Group headquarters at such a sensitive time as New Year's Day, as shown today, is symbolic and politically significant enough to stir the hearts of all witnesses and fill countless eyes that were secretly observing with astonishment and speculation.

The heavy, soundproof door closed silently behind us in the conference room, completely blocking out any outside prying eyes.

Besides Lam Ho-yin, Mak Lei-ho, and Ho Sin-hang, there were three other high-ranking government officials present: Financial Secretary Pang Lai-chi, Head of the Financial Services Division Pak Lai-kok, and Commissioner of Police Hon Yee-lee.

These people are all core decision-making members of Merrihau, and their arrival itself demonstrates the seriousness of what happened today.

“Mr. Lin, let’s not beat around the bush. Just like we talked on the phone, let’s get straight to the point!” Mai Lihao said as soon as he sat down.

Now, major media outlets in Hong Kong are waiting for him to hold a press conference.

However, without Lin Haoran's support and commitment, the press conference could not proceed.

He needed a sufficiently significant "stabilizing" signal to reassure the market, and Hengsheng Group was the most suitable target.

"Governor, gentlemen, the situation has changed. There are important matters that I may need you to handle first!" Lin Haoran glanced at the time on his watch and shook his head as he spoke.

Nearly twenty minutes had passed since Editor-in-Chief Li of the Oriental Daily News hung up the phone; the other party should be arriving soon.

"Oh? What is it? Judging from Mr. Lin's expression, is it something important? Is it more important than the current situation?" Mai Lihao asked in confusion.

"Please wait a moment, I'll go out for a bit and come right back. I'll talk to the Governor then," Lin Haoran said.

But then his mobile phone rang again, which meant that Editor-in-Chief Li had arrived.

The governor nodded. Although he was very anxious, he knew that there was no time to rush things.

After leaving He Shanheng in the conference room to entertain the Governor-General's officials, Lin Haoran walked out of the conference room and, sure enough, saw Editor-in-Chief Li from the Oriental Daily.

"Boss." Editor-in-Chief Li, carrying a briefcase, hurried up to greet him, his forehead covered in fine beads of sweat, clearly having rushed all the way.

"I brought everything, including the originals and some key photocopies."

Lin Haoran nodded and said, "Thank you for your hard work. Please come to my office first!"

The two walked into He Shanheng's chairman's office one after the other. After closing the door, Editor-in-Chief Li immediately opened his briefcase and took out all the documents inside.

There were quite a few documents; a thick stack of materials.

"Do you have any information about the banks under the Hengsheng Group?" Lin Haoran asked as he flipped through the documents.

"No, I've seen them all," Editor-in-Chief Li said, shaking his head.

"Okay, I understand. Thank you for your hard work. I'd like to stay at Hengsheng Group for a while and rest in the rest area. I'm going to have a meeting first. If there's anything else after the meeting, I'll talk to you again!" Lin Haoran said with a smile.

Of the several banks under the Hengsheng Group, only Huifeng Bank has actually cooperated with the Caring Group, and the cooperation amounted to HK$3 billion.

However, Huifeng Bank clearly used legitimate channels at the time, and Chen Songqing had no leverage over it.

Moreover, this debt has now been transferred to Standard Chartered Bank, so it has nothing to do with Huifeng anymore.

"Okay, boss, you can get back to work!" Editor-in-Chief Li nodded and said.

After Editor-in-Chief Li left the office, Lin Haoran continued to look at the document.

Yu-Ming Finance, Hong Kong Bank of Communications, West Texas State Bank, Berkeley Bank, Chase Bank, Dah Lai Credit, Yi-Ta Investment, Zhi-Lian Finance, Aksona International Credit, Hong Kong Deposit Guarantee, De-Jie Finance, Whitehall Finance, US & Panama Finance, and Xing-Tong Finance...

There are more than forty well-known financial institutions, both from Hong Kong and overseas, and they are all large institutions with strong financial resources!
Lin Haoran was shocked after reading it.

I have to say, Chen Songqing is really awesome!
Although he was a complete fraud, the sophistication of his "deception," the audacity of his actions, and the astonishing power of his abilities were simply unbelievable!

In just three or four years, they managed to weave such a huge and complex fraud network involving so many heavyweight financial institutions.

This requires not only extreme audacity, but also a profound understanding and precise utilization of human nature, internal risk control loopholes in banks, and the financial regulatory environment in Hong Kong and even internationally.

Lin Haoran closed the file, shut his eyes, and quickly processed the shock of this information.

Shocked, he could only sigh.

Chen Songqing is playing with fire, and if this fire gets out of control, it will destroy the very foundation of Hong Kong's financial system's credibility.

These banks involved, especially the major international banks, are likely to quickly distance themselves to protect their reputations and even pressure the Hong Kong government to "cover up the truth" at all costs.

This is precisely the chaos and pressure that Chen Songqing wanted to see.

Fortunately, he knew early on that Chen Songqing was no good, so he had been on guard against him from the beginning.

Now, the other party has no connection to him.

However, Standard Chartered Bank is in a bad situation.

The HK$3 billion debt that Huifeng Bank transferred to Standard Chartered Bank is destined to be handled by Standard Chartered Bank itself.

A debt of HK$3 billion! I wonder how much Standard Chartered Bank will ultimately recover.

Given that Jialing Group's assets are far from enough to cover its debts, recovering even 10% or 20% would be considered extremely fortunate. (End of Chapter)