Hong Kong Island: From a small stall to a global supplier

Wang Yaotang did not expect Jardine Matheson to contact him. Although he had just acquired CLP Power and showed that he wanted to cultivate the power industry, he had been working on three major projects: the Zhuhai Power Plant, the Shajiao B Power Plant, and the Qingshan Power Plant. Clearly, he had devoted all his energy to these projects.

Aside from his brothers, only that old guy Youde knew that he wanted to take over Hong Kong Electric.

After all, a written agreement was signed.

Could it be that Youde tipped off Jardine Matheson?
Thinking about it, this is the only possibility.

However, this is a good thing. It's better for Jardine Matheson to invite me over than for me to go to them.

Three days later, at Jardine House.

Jardine Matheson's General Manager, Morris, stood at the door to personally greet him, "Mr. Wang, good morning."

Morris immediately gave Wang Yaotang a hug.

"Haha, Mr. Morris, hello."

"I've heard all sorts of stories about Mr. Wang over the years, and I've long wanted to meet this rising star in Hong Kong. Unfortunately, I haven't had the chance until today."

"Well, I didn't disappoint Mr. Morris, did I?" Wang Yaotang laughed heartily.

Morris was taken aback. Shouldn't you be a little more modest?
He had lived in Hong Kong for many years and thought he understood the Chinese community well, but this was the first time he had ever seen someone like Wang Yaotang.

"Haha, Mr. Wang's sharpness is indeed extraordinary. No wonder he was able to grow into one of Hong Kong's top tycoons in such a short time," Morris quickly realized and laughed.

After exchanging pleasantries and introducing their subordinates, the group went upstairs.

Morris personally led Wang Yaotang on a tour of Jardine Matheson's headquarters, and finally to the reception room, where they had coffee, discussed the situation in Hong Kong, and looked ahead to the future economic prospects.

Economic development inevitably comes with a huge power shortage, but Wang Yaotang wasn't in a hurry and just watched Morris talk on and on.

After a long chatter, the conversation finally steered towards Hong Kong Electric when Jardine Matheson's future plans were brought up.

“I am indeed very willing to continue investing in the power industry. Does Jardine Matheson want to sell its Hong Kong Electric business?” Wang Yaotang followed up on Morris’s words.

“So we’re going to talk to you, the electricity tycoon, about the future of Hong Kong Electric,” Morris said rather reservedly.

How many shares is Jardine Matheson planning to transfer?

"all!"

"I don't know the price?"

"Jardine Matheson holds 36% of the non-tradable shares and 8.73% of the tradable shares, valued at HK$40 billion!"

“If I remember correctly, HK Electric’s current market value is only 85 billion, right?” Wang Yaotang said with a smile.

“No, no, no, market capitalization does not reflect the true value of HK Electric.” Morris shook his head seriously. “HK Electric’s value is severely undervalued. We all know that investors in Hong Kong Island are keen on real estate, finance, shipping, and electronics. In addition, the Hong Kong government restricts the profit margin and price-to-earnings ratio of power stocks, which has led to the low share price of Hong Kong Island stocks. Furthermore, the oil crisis has led to rising oil prices and economic contraction. Therefore, I say that HK Electric’s value is severely undervalued.”

Speaking of this, Morris waved his arms, indignant and spitting as he spoke, "What's more, Hong Kong Electric owns most of the land in Ap Lei Chau. Given the property prices on Hong Kong Island, the value of that land alone is more than 40 billion!"

"Moreover, acquisitions have always been at a premium, so 40 billion is a very reasonable price!"

“You’re using a fallacy to mislead us. The land in Hong Kong Electric’s hands is industrial land, not commercial land. The number of commercial land parcels released by the Hong Kong government each year is fixed. Changing the land use designation isn’t easy, and the price difference has to be compensated. Talking to me about land value now is meaningless.” Wang Yaotang waved his hand.

“It makes sense, of course it makes sense.” Morris leaned forward, propping himself up on the table, and said loudly, “Why did Li Xiangjiao acquire Qingzhou Yingni in Hung Hom? The cement industry does have great development potential, but Qingzhou Yingni’s own operating conditions are worrying. Not long after he acquired it, he built a new factory in the New Territories. In fact, we all know that he was after the land in Hung Hom!”

“Although the land use is different, he has already gained an advantage. The cement plant is very polluting and does not conform to the direction of future development. The Hong Kong government will definitely require him to relocate the cement plant. At that time, the change of land use will be a matter of course. He has obtained the best piece of land in Tsim Sha Tsui!”

Wang Yaotang wasn't annoyed. That's how negotiations are. "First of all, Ying Ni in Qingzhou is in Hung Hom, while Hong Kong Electric is in Ap Lei Chau. There's no comparison. The idea that Hong Kong has a land shortage is just something to fool ordinary citizens. You and I shouldn't say such things. It's not that there's no land to develop, but that the Hong Kong government deliberately releases only a small amount each year to create anxiety about land shortages and thus drive up housing prices."

“It is a fact that the per capita land area on Hong Kong Island is small, and a large amount of land is in outlying island areas, which are not suitable for living. There are also a lot of forest reserves in Kowloon that cannot be developed.” Morris shook his head. “Ap Lei Chau is adjacent to Deep Water Bay. The land has long been leveled and has precious sea view resources. Because it is an island, it is not so noisy. Whether it is developed into luxury homes or commercial and residential properties, the prospects are extremely broad.”

“What the hell is it that it’s not noisy? It’s just that it’s remote.” Wang Yaotang sneered. “The New Territories are even less noisy. If it’s so good, Jardine Matheson can keep it for itself. Since your main business is real estate, I don’t mind. I can just acquire Hong Kong Electric and then lease the land from you.”

“Mr. Wang, we need to see the value itself, not discuss splitting it up. That’s not reasonable.” Morris tapped the table.

“It was Jardine Matheson who contacted me to discuss this, not the other way around. We all know that Jardine Matheson is in the red. Be honest, you just don’t have the money and you’re selling assets to ease the company’s pressure.”

"you--"

They argued back and forth, sweeping away the polite formalities of their earlier meeting, and finally managed to reduce the price from 40 billion to 38 billion. Morris refused to budge any further.

After the negotiations ended, Morris immediately put on a different face, personally seeing Wang Yaotang to his car, displaying his professionalism.

"This price is too high!" the bespectacled guy exclaimed as soon as he got on the bus. "This price could rebuild two Hong Kong Electric companies!"

Wang Yaotang remained silent for a long while before looking up and saying, "Why do I feel like this Morris isn't sincere at all?"

"Huh?" The bespectacled man frowned. "Why do you say that?"

“Like you said, the price is too high. I could develop the third and fourth phases of Qingshan, or build a power plant in Siam. I’d make money anyway,” Wang Yaotang said, pursing his lips.

“It’s different.” The four-eyed man shook his head. “Power infrastructure and the power grid cannot be built in a short time with investment. Even if Castle Peak Power has surplus capacity, it cannot enter the main island. The power grid is in their hands. Once we take over Hong Kong Electric, we can complete the integration of the power grid in the main island, Kowloon and the New Territories. This is of great significance, as it means that we have completely monopolized Hong Kong’s power.”

"In the future, whoever in Hong Kong... cough cough, in any case, has any ideas in business planning or urban layout, they will have to get your support first. This is what it means to share honor and be inseparable!"

“You know that, but guess whether Jardine Matheson knows, whether the Hong Kong government knows, and whether Downing Street knows?” Wang Yaotang’s lips curled into a sneer. “And what stance or attitude do you think they’re on?”

Over the years, the bespectacled young man has matured and is no longer the petty boy he once was. He can now see things from a broader perspective. "It doesn't really matter to Jardine Matheson. Jardine Matheson's shareholding structure is very complex now, and it's impossible to implement a unified will. That's how capital is. They only care about profits. Of course, it is precisely because of profits that they are influenced by the Hong Kong government and Downing Street, but that's all they are influenced by."

"As for the Hong Kong government, didn't you get the IOU from Youde?" I couldn't help but laugh when I thought of this four-eyed guy.

Recalling Youde's constipated expression, Wang Yaotang also laughed, "This thing can only be used at the last minute; it can't turn the tide."

After laughing for a while, the four-eyed guy said, "How long can the Hong Kong government worry about this? At most 10 years. They can do some public relations with the opposition, and it won't be a big problem. As for Downing Street, it's thousands of miles away. Their words are no different from farts. They both stink and have a lot of power, but at most they just annoy people. They can't play a decisive role."

“You’re right, but you only considered the official perspective, not what if other Chinese people with ties to Little Britain were willing to acquire it, or what about the opinions of the financial sector.” Wang Yaotang dug into his memory, and the original trajectory should have been that HSBC provided funding to support Li Xiangjiao in acquiring Hong Kong Electric, further enhancing its influence over Hong Kong Island.

The Hong Kong dollar issuing bank, the largest financial conglomerate, also controls shares in various industries such as ports, shipping, real estate, construction, telecommunications, electricity, and media. Its influence extends to every corner, and even after the handover, its influence has not diminished at all. While it may not directly confront the Hong Kong dollar, there is certainly some back-and-forth.

After the handover, HSBC became even more valuable to Downing Street.

In 2020, HSBC's retail banking business in mainland China plummeted by 45%, and its corporate client churn rate hit a record high of 18%. The financial giant, which once accounted for 42% of offshore RMB transactions, has completely fallen from its pedestal...

"Why don't you just say Li Xiangjiao's name? In the financial world, you mean HSBC? Sir Michael Sandberg is dead, would HSBC still support him?" The four-eyed guy thought it was impossible.

"This has nothing to do with Sir Michael Sandberg. HSBC is only acting in its own self-interest. Li Xiangjiao is nothing but a dog."

"These are all just our guesses; we need accurate information," the four-eyed man said after thinking for a moment.

"Let Awei handle this when we get back."

"Hey, didn't you always go by yourself before?" the four-eyed guy laughed.

“Brother, what kind of status do I have now? How could I do such a despicable thing!” Wang Yaotang said with his head held high.

……

That evening. "No way, I can do such disgusting things? Don't I have any shame?!" Awei cursed, but still got in the car and headed straight for the home of a high-ranking official at Jardine Matheson.

When Oakley heard this, Avery roughly knew what was going on. The two sides were currently negotiating, and he couldn't meet with the other side's senior management privately, so he had the Filipino maid refuse.

Just seven or eight minutes later, the door was pushed open, and Awei strode in, with the Filipino maid's shouts still audible behind him.

“What are you going to do!” Oakley frowned.

“Am I not obvious enough? I’ve come to visit Mr. Oakley,” Awei said with a smile.

"You are very rude. I did not invite you in. Please leave."

“That’s how we do things. When have we ever been polite?” Awei scoffed. “Did the people from Hong Kong invite Little Britain in the first place? Right?”

"You're talking to me about manners now? Are you kidding me?!"

Oakley's face darkened. "You..."

"Sigh, I advise you to watch your words. Think about the Kadoorie family, think about Lui Chi-ho, think carefully before you speak." Awei walked to the sofa and sat down, crossing his legs as he spoke.

Oakley took a deep breath and forced himself to finish his sentence. Everyone said that Wang Yaotang did things without following the rules, and he had opposed bringing Wang Yaotang into the game in the first place. Now look what happened!
"What exactly do you want?" Oakley waved away the Filipino maid, then, after thinking for a moment, invited Awei to the study.

Some things are better left unsaid.

"How much is Mr. Oakley's annual salary now?" Awei picked up his coffee, took a sip, and then asked slowly.

“180 million.” Oakley frowned slightly but still said it. What secret could someone of Wang Yaotang’s caliber possibly keep from someone like him?

"Dollar?"

Oakley's face darkened.

“Hong Kong dollars!” Ah Wei scoffed. “I thought it would be much higher.”

"How much is the annual salary of the general manager of Yaoguang Audio-Visual?" Oakley asked in return.

"I don't know, but it should be fine. It shouldn't be less than 150 million. Brother Yao is very generous." Awei shrugged. "Mr. Oakley is a smart man too. He should know why I'm here."

“I cannot betray the company’s bottom line,” Oakley refused outright.

"Don't be so sure of yourself." Awei laughed as he picked up the briefcase, opened it, and threw a few large yellow croakers onto the sandalwood desk with a clattering sound.

The dazzling golden light made Oakley squint involuntarily, his gaze drawn to the gleaming gold bars, unable to look away.

"What exactly are your plans?"

Oakley remained silent.

Awei grabbed a few more and threw them up, the gold bars colliding and making a crisp, tinkling sound.

Without saying a word, he dropped a few more.

A dozen or so gold bars were casually tossed on the table. Oakley's hands began to tremble involuntarily, and he broke out in a light sweat. It took a great deal of effort to stop himself from reaching out.

When he opened his mouth, his voice was a little dry, "Leaking company secrets is illegal, I won't, I can't."

"What do you mean by illegal or not? Don't be ridiculous, Oakley, who cares?" Awei laughed and threw out four more gold bars.

"No, no, don't take it out again!" Oakley gasped for breath.

Awei's smile remained unchanged. He grabbed a handful of golden objects and threw them on the table. With a clanging sound, several 7.62 NATO rounds scattered across the table.

Oakley's breath hitched.

"Oops, sorry, I took the wrong one." Awei laughed and slowly picked up the bullets one by one and threw them back into the briefcase. "It's only 180 million, why risk your life?"

“My reputation is ruined, I won’t be able to find a job in the future,” Oakley said with a wry smile, swallowing hard.

"If you don't tell me, and I don't tell you, who will know?" Awei still smiled. "How did you know I was the first one to come here? Maybe I've been to other people's houses too. I just came to you to verify if it's true or not."

Oakley wiped the sweat from his brow. "To tell him would be betrayal, but not to tell him might mean death..."

After all, Wang Yaotang's reputation is notorious in the industry. Presumably, even if others knew about it, they would understand. After all, it's impossible to risk one's life for company secrets.

"You...you won't leak this, will you?!"

"How could that be? Wouldn't that be commercial bribery, which is illegal? What's your worth? What's mine? Do you think I'm worthy of risking my life for you?" Awei sneered and said bluntly.

These words did not anger Oakley; on the contrary, they greatly relieved him.

"us……"

……

"They really have a plan."

The next day at lunch, Awei brought up what happened the night before.

Take out a small recorder, press the play button, and Awei and Oakley's conversation comes through clearly.

"Damn it, they really are just using us as backup options!" The bespectacled guy angrily slammed his hand on the plate.

"This isn't a backup plan, it's to get us to raise the price," Awei said.

"Damn it." Ah Jie cursed, but there was nothing he could do. He couldn't exactly say he would take out the top executives of Jardine Matheson, and he couldn't think of any other solutions. "Brother Yao, say something."

"What can I say?" Wang Yaotang glared at him irritably.

"Then let's forget it?"

"Otherwise, let's be business. If they want us to raise the price, then let them raise the price."

"Wouldn't that be letting them off easy?"

"Wouldn't it be a waste not to raise the price, which would just benefit that philandering Li Xiangjiao?"

"If only no one were competing with us..." Ah-Ji sighed.

"Hmm?" Wang Yaotang turned his head to look over, his eyes flickering. "Well, it's not impossible."

"what?"

"Trying to use us to drive up the price will definitely..."

"Knock knock knock... Brother Yao, Li Xiangjiao is calling." Sha Ze knocked on the door and said.

"Ha, that's a quick reaction. I'd like to see what he has to say." Wang Yaotang got up and walked over. (End of Chapter)