Technology invades the modern world

Chapter 97 How is this possible! (5.2K)

The living room was silent, but the air was filled with the smoke of business competition.

Xu Shixun stared at the contract on the table, his brow furrowed. The words "Cheung Hwa" were clearly written on the document.

A shipping company that was said to have been established only a month ago attempted to swallow up the shares of the Xiangjiang Shipping Company that they had worked so hard to build.

Xu Shixun thought for a long time and went through the directory of Hong Kong shipping industry in his mind, but he couldn't figure out who Li Jiacheng was.

"Sign it quickly." Hugh Barton, who was sitting on the sofa opposite, gently put down his teacup, his tone carrying a hint of calm dignity.

As the head of Jardine Matheson, he was used to being in control.

According to the original historical trajectory, Li Jiacheng would not truly enter the vision of British capital until the late 1970s.

In 1977, he shocked the business world when his Cheung Kong Holdings defeated Jardine Matheson's Land Development in the bidding for the properties above Central and Admiralty stations on the Hong Kong MTR.

This victory not only brought him fame, but also caught the attention of HSBC executives, especially the then-chairman, Stephen Simpson. Simpson keenly saw Li Jiacheng's potential and regarded him as a local entrepreneur worthy of support, marking the beginning of his deep connection with English capital.

But at this moment in 1961, history seemed to be rewritten in advance.

Li Jiacheng is far from rising to prominence. He is just an unknown figure in Hong Kong's plastics industry.

He is relying on the Yangtze River Plastic Factory to accumulate capital and try to find a good opportunity to enter the real estate industry.

However, this does not mean that he has no connection with English capital.

After all, in the process of expanding the scale of the plastic factory, it had to rely on loan support from British banks such as HSBC and Standard Chartered.

Although these loans were small in amount, they were the starting point for him to establish connections with English capital.

When Li Jiacheng received the olive branch from Hugh Patton, he felt that he was destined to be with God. He actually thought that there was such a thing as pie falling from the sky.

The shipping business, with Jardine Matheson and Swire behind it, has much more prospects than real estate. Moreover, with the support of British capital, why should we worry about not being able to do real estate business?

It was precisely because he was still relatively young and had limited influence at that time that he became an ideal pawn for Hugh Barton and John Swire, the head of Jardine Matheson & Co.

They need a Chinese spokesperson who is smart enough to cover up the real presence of Jardine Matheson and Swire in Hong Kong's business community.

It's impossible to hide it from Lin Ran. I can't just wipe out the Xu family.

But to prove that we are just taking a piece of the pie, we will still let Chinese people stand in front of and behind the scenes to satisfy Lin Ran's vanity. They think it is not difficult to do.

Li Jiacheng, a young, flexible and ambitious Chinese, just met their needs. So he was chosen to become the spokesperson for Cheung Kong Holdings.

Even in order to fully respect each other, Cheung Kong Holdings is still composed of the Cheung Kong Holdings' Cheung Kong Holdings and the Jardine Matheson Holdings' He.

What Hugh Barton could not have imagined was that the white gloves they had carefully selected were notorious in the time and space where Lin Ran came from.

In the room, a rotary dial phone with a gold-plated frame suddenly rang, breaking the brief silence. "Ding Ding... Ding Ding... Ding Ding..." The crisp ringtone echoed in the silent space.

"Sorry, I have to take a call." Xu Shixun stood up and looked at Hugh Patton with a little apology.

"Go ahead." Hugh Barton waved his hand and took a sip of his teacup nonchalantly.

Although the Hong Kong Telephone Company was established in 1925, a 36-year-old company, in 1961, only a small number of wealthy people could own a private telephone in Hong Kong. The telephone was not only a means of communication, but also a symbol of status.

There were no modern harassing phone calls in Hong Kong at that time, and every ring could bring important information.

"Shixun, is your father back?" Dong Haoyun's hurried voice came from the other end of the phone.

The anxiety in the tone of Tung Chao-Yen, the founder of Orient Overseas Container Line, was clearly perceptible through the wires.

"No." Xu Shixun answered briefly, his eyes unconsciously glancing at Hugh Barton.

Tung Chao-Yun spoke faster, "Except for a ship merchant named Pao Yue-Kong, the other small shareholders secretly transferred all of their shares in Hong Kong Shipping to a shipping company called 'Cheung Wah' three days ago. I just heard that this 'Cheung Wah' was only established a month ago, and there's suspicion that Jardine Matheson is behind it."

Xu Shixun smiled bitterly and looked down at Hugh Barton who was sitting on the sofa, who was raising his glass elegantly.

He said helplessly, "It's either suspected or not. The boss of Jardine Matheson is here with me now, forcing me to hand over my shares in Hong Kong Shipping. They took advantage of my father's absence to launch a general attack. Mr. Dong, don't worry. My father told me yesterday that he will go to Wingfield Manor in London to meet Sir Lin today. If there is anything, we can discuss it after he returns in two days."

There was a moment of silence on the other end of the phone. Dong Haoyun sighed, obviously having no idea what to do about the current situation.

Xu Shixun hung up the phone and turned to face Hugh Barton. As the second generation of the family, he had only one thought: delay.

After all, as long as you don't make a decision, you won't make a mistake.

Hugh Barton put down his teacup, clapped his hands, and said with a hint of sarcasm:
"Mr. Xu, I won't sell it this time. When Mr. Xu returns in two days, the price will be different. Also, a reminder: starting tomorrow, from HSBC to Standard Chartered, all loans to the Xu Group will be fully withdrawn.

By the way, we have prepared the land under your name as a welcome gift to Cheung Kong Holdings."

He paused, his tone emphasizing, "Also, Sir Lin has indeed made remarkable achievements in mathematics and aerospace, and his engineering skills are also impressive. As for the design of the tapered guide column positioning device, our Jardine Matheson engineers have not yet found a better solution."

But this does not mean that he is omnipotent.

In the financial field, he is clearly powerless.

In addition, due to his work at NASA, he is unable to come to Hong Kong in person, and he is unable to influence the current situation of the Xu family.

Unlike the Xu family, who lived in a villa in the Mid-Levels, Pao Yue-kong was still a minor figure in the shipping industry. Although he had made a name for himself, he could not afford a luxury home in the Mid-Levels and could only live in the upscale residential area of ​​Deep Water Bay.

His global shipping company is limited in scale, owns several second-hand cargo ships, and has grown with difficulty relying on the strategy of "renting ships to support them".

In the living room, Hang Seng Bank founder Ho Sin Hang was earnestly persuading:

"Mr. Bao, except for the Xu and Dong families, all the other shipowners' shares have been sold to us. Why put yourself in such a desperate situation? We are willing to buy your shares at a 20% premium. It's good for you, me, and everyone else, so why not?"

Ho Sin Hang, 61, is nearly 20 years older than Pao Yue-kong. He has close ties with HSBC and was the local partner of Jardine Matheson when it went public in 1961. He was sent by Jardine Matheson to lobby Pao Yue-kong.

Pao Yue-kong stared at Ho Sin-hang and asked in a deep voice, "Uncle Ho, if I don't compromise, will Hang Seng Bank also withdraw the loan from Global Shipping?"

Ho Sin-heng sighed, "In Hong Kong, the arm cannot twist the thigh."

Pao Yue-kong said firmly, "Uncle Ho, do you know what Hong Kong shipping means to the Chinese?"

Ho Sin-heng was slightly startled, then smiled wryly. "How could I not know this, considering I was able to turn Hang Seng Commercial Bank into Hang Seng Bank? This means that for the first time, Chinese people may dominate global shipping standards. This means that the transformation of global ports, ships, and containers will have to follow the path pioneered by Hong Kong shipping. I've also read your internal reports."

Pao Yue-Kong's heart darkened, and he asked, "If that's the case, why are you still helping the English to steal the fruits of their labor from us Chinese?"

He Shanheng shook his head and said in a heavy tone: "Do you think your report was obtained from those small shippers who sold Hong Kong shipping?

Wrong. We got it from the Hong Kong Marine Department. The Marine Department's report is even more detailed than your own. Do you really think you can keep it a secret from everyone? Without the Marine Department's cooperation, what good would Hong Kong shipping do in Chinese hands? As the saying goes, you can't bend the will of the strong.

Sir Lin is very powerful, but he is not omnipotent. In Hong Kong, the English still have the final say.

He paused for a moment and continued:
"Besides, who says you're no longer Chinese if you sell your company? Hong Kong Shipping wasn't sold to Jardine Matheson, but to Cheung Kong Holdings, and the owner is still Chinese.

This is still an opportunity for Chinese people to promote maritime standards to the world.”

The room fell into deathly silence, with only the sea breeze outside the window blowing against the glass, making a low "whooshing" sound.

Pao Yue-kong took a deep breath, his eyes burning, "No, I won't sell it. Even if the bank withdraws the loan and allows me to rebuild Global Shipping from a small wreck, I will not sell it to Cheung Kong Holdings.

You are right, Cheung Kong Holdings is also a Chinese company. But I want to be a proud Chinese, not a Chinese who serves as a dog for white people!

He Shanheng's face darkened, obviously hurt by these words.

This is also an insult to him.

He snorted coldly: "You...you'd better take care of yourself." Then he turned away.

The next day, in an office building on Des Voeux Road Central in Central, the atmosphere in the office of Global Shipping Company was tense.

The secretary hurried into Pao Yue-kong's room, his voice trembling:
"Mr. Bao, the manager of HSBC is in the reception room. They want us to repay the short-term loan of 50 US dollars immediately. We only have 30 US dollars on the books, and there is no way we can pay it back! Mr. Bao, what should we do now?" Pao Yue-kong's global shipping survived by "renting to support ships": buying second-hand ships, renting them to customers, using the rent to repay the loan, and then buying new ships.

In 1961, his fleet was small, probably consisting of only a few second-hand cargo ships, with annual revenue of less than $200 million and a paltry $30 in cash on the books.

Shipping is an industry with tight cash flow, and it could collapse at the slightest disturbance.

Yesterday, Pao Yue-kong had anticipated this scenario. He had immediately arranged for a short-term loan, confident he could handle the pressure from HSBC. He walked into the meeting room and declared in a deep voice, "We'll pay it back!"

Before he finished speaking, the manager of Hang Seng Bank walked in, guided by the front desk: "Mr. Bao, don't forget that we still have a loan of 20 US dollars. Please settle it as well."

The HSBC representative then added, "Given your capital chain's rupture, the contractual risk clauses for long-term loans may be triggered prematurely, requiring full repayment. Please be prepared."

Pao Yue-kong was shocked. The survival of the shipping company depended on its liquidity and debt repayment ability. HSBC's $50 plus Hang Seng's $20, a total of $70 in loan withdrawals, far exceeding the $30 in cash he had on his books.

If the long-term loans were also called in early, his ships would be towed away by the bank and the company would completely collapse.

Although cargo ships will appreciate in value in the future due to the explosion of global shipping, that will be a few years later, and he has no power to fight back at the moment.

"Sorry, I'll make a phone call." Pao Yue-Kong walked out of the meeting room, picked up the rotary dial phone, and made a round of calls, but no one was willing to lend a hand.

The combined pressure from HSBC and Jardine Matheson has pushed him into a desperate situation.

He leaned back in his chair dejectedly, and Ho Sin Hang's words echoed in his mind: "In Hong Kong, the English still have the final say."

At that moment, he deeply felt the helplessness and humiliation of colonial merchants.

Just when he was desperate, the phone rang again. A strange voice came: "Mr. Dong, I am Edward Young, the business manager of the First National City Bank of New York. I think you could use a little help, right?"

Bao Yugang was stunned for a moment, then realized: "You were sent by Sir Lin?"

Edward nodded in confirmation. "That's right. First National City Bank of New York—the future Citibank—can help you restructure your debt and fully repay the loans from HSBC and Hang Seng Bank."

In 1961, before the First National City Bank of New York changed its name to "Citibank" (it was renamed in 1976), its Hong Kong office mainly served American companies and international giants.

Pao Yue-Kong knew about this well-capitalized bank, but never imagined he would have any connection with it.

"Okay, okay, let's go in and discuss it!" Pao Yue-Kong was excited. As long as it could solve the immediate problem, any conditions were worth discussing.

At the same time, Citibank's involvement also brought a turning point for Tung Chao Yung and the Xu family. The next day, Xu Aizhou returned from London and met with Tung Chao Yung and Pao Yue-kong in Central before returning home.

In the Xu family's living room, Xu Shixun excitedly said to his father, "Dad, Rockefeller and Morgan are truly generous! Didn't you see the HSBC representative's expression at that moment? His face turned green. It was simply amazing!"

Xu Aizhou waved his hand and corrected him, "No, it wasn't Rockefeller and Morgan. It was Lloyd's Insurance Company and Barclays Bank who jointly guaranteed us. When I reported our crisis to Sir Lin in London that day, he immediately contacted Lloyd's Chairman M.E. Miskin and Barclays Chairman Sir Anthony William Tuke through the President of the University of London."

These two companies are the first ones that Lin Ran can think of that are in direct competition with HSBC, and they also have sufficient influence in England.

For them, being able to enter the Hong Kong market through shipping standards and local Hong Kong shipbuilders is what they have been longing for.

After reading Xu Aizhou's report, Miskin and Anthony also understood HSBC's idea.

You want to eat this cake, and I want to eat it too.

So under Lin Ran's guarantee, they would be allowed to participate in the standard promotion company to be established later, which is why they showed up so punctually.

He paused, then continued, "These two companies are potential partners for future shipping standards, but for now, our battle with Jardine Matheson, Swire, and HSBC continues. They're not in a position to make a public appearance, so Sir Lin urgently contacted America, and First National City Bank of New York stepped in to provide financial support. In reality, the driving forces behind this are Lloyds and Barclays."

Xu Shixun's eyes widened: "So that's it!"

Xu Aizhou nodded. "Lloyd's isn't a traditional insurance company, but an insurance market, specializing in marine insurance and trade guarantees. It's a direct competitor to HSBC. Barclays is England's largest commercial bank. While it focuses on Atlantic and American trade, it also has its sights set on the Asian market."

He picked up the Hong Kong shipping report on the table and said in a deep voice, "Miskin and Anthony read our report and realized that HSBC wants to take a piece of the shipping standards pie. With Sir Lin's guarantee, they will obtain shares in the subsequent standards promotion company."

The joint offensive of Jardine Matheson, Swire and HSBC almost pushed Hui, Tung and Pao Yue-kong into a desperate situation.

However, Lin Ran used his capital network in London and New York to secure support from Lloyd's Insurance Company, Barclays Bank and Citibank, thus resolving the crisis.

Chinese shipping merchants in Hong Kong were able to catch their breath, but the struggle with British capital was far from over.

"Mr. Xu, good tricks. Sir Lin does have an unusual relationship with Rockefeller and Morgan.

With Rockefeller and Morgan around, we can't beat you in the financial market.

But if we work together, both sides will benefit; if we separate, both sides will lose.

We have already acquired more than 30% of Xiangjiang Shipping's shares, and we have a solid foundation for cooperation."

Unlike his conversation with Xu Shixun in English, when Hugh Barton visited the Xu family again the next day, he was not only much more polite in tone, but also spoke in Chinese throughout.

In addition to Hugh Patton, CY Tung, Carol Lee and Yue-kong Pao were also present.

Xu Aizhou waved his hand and said, "You were the ones who wanted to seize it by trickery first. We were only on the defensive the whole time, not on the offensive.

How can there be a saying that both sides will lose if they split up? Can the Xu family shake up Jardine Matheson or Swire?

But you are right about one thing, it is indeed beneficial for both parties to cooperate, so we found Rockefeller and Morgan to cooperate."

Li Jiacheng said at the right time: "Mr. Xu, Rockefeller and Morgan are extremely powerful, but don't forget that this is Hong Kong.

If we don’t cooperate with Jardine Matheson and Swire,

Before he could finish, Xu Aizhou interrupted, "Who are you? Do you have the right to speak?"

He didn't give the other party a chance to answer: "Mr. Barton, take care of the dog you brought."

I have to say that Li is indeed a top talent. Even if he is extremely angry inside, he can remain calm on the surface.

His face didn't even turn red.

Xu Aizhou continued, "I know what you are thinking, we all think the same thing.

The value of Hong Kong shipping is so great that everyone wants to get involved.

What you are interested in is not only the promotion of the standards itself, but also which ports should be transformed first and which ones should be transformed later.

Should the Port of London or the Port of Liverpool be transformed first?

If you transform the Port of London first, you can acquire the Port of London in advance and then wait for it to appreciate in value.

Standardization construction is a piece of cake, buying in advance is also a piece of cake, and setting standards is another piece of cake.

Xiangjiang Shipping has unique experience in modern port construction in the world.

But have you ever thought that it is just an empty shell?

Because the construction of modern ports still depends on people.

These people are experienced workers, engineers and crew members we transferred from various companies.

But in fact they do not belong to Hong Kong Shipping.

I would also like to remind you that Sir Lin’s patent authorization letter is in my hand. It is given to me, not Xiangjiang Shipping.

So Xiangjiang Shipping is a complete empty shell.

I'll leave this empty shell for you to play with." Xu Aizhou said with a smile as he threw a stack of photocopies of Lin Ran's patent authorization documents on the coffee table.

Hugh Barton's face changed drastically: "You? How is this possible!"

(End of this chapter)