Rebirth in Hong Kong: From Dessert Shop to Industrial Empire

Chapter 192 Response (Seeking monthly votes, recommendations, and subscriptions!)
When Chen Bingwen returned to his office on the top floor of the Weiye Building, Fang Wenshan and Ling Peiyi were already waiting inside.

Upon seeing him enter, the two immediately stood up.

"Mr. Chen, how did the meeting go?" Fang Wenshan asked with concern.

Although Ling Peiyi didn't speak, her eyes were questioning.

Chen Bingwen took off his suit jacket and handed it to Ali, loosened his tie, and sat down behind his desk.

"Sit down." He gestured for the two of them to sit down as well.

"I met with Sir Michael Sandberg and President Wang Kuang." He succinctly recounted the main points of the meeting, especially his interactions with Sir Michael Sandberg and Li Ka-shing.

“It’s a good thing that Shen Bi has noticed us.”

However, Li Ka-shing is very vigilant and will likely intensify his communication with HSBC after this preparatory meeting.

Upon hearing Chen Bingwen's words, Fang Wenshan frowned slightly: "The key to Hutchison Whampoa's acquisition issue lies in Sir Michael Sandberg's attitude."

If he ultimately chooses to support Li Ka-shing, our acquisition of Hutchison Whampoa will become significantly more difficult.

"So time is both on our side and not on our side." Chen Bingwen nodded. "We must get enough leverage before Shen Bi makes a final decision."

How's the acquisition of Hutchison Whampoa shares going with Citigroup's Christensen?

"The shareholding ratio has reached 5.1%, and the total expenditure is close to HK$1.2 million."

Christensen, as expected of a Wall Street trader, employs very subtle trading tactics; so far, the market has not experienced any unusual fluctuations.

Fang Wenshan reported with a smile.

"Keep buying," Chen Bingwen decisively ordered. "You can go even faster. As long as it doesn't cause drastic fluctuations in the stock price, buy as much as possible."

Every percentage point increase means a greater say in our future affairs.

“Understood, I will maintain close communication with Christensen’s team,” Fang Wenshan nodded in response.

After arranging the acquisition of Hutchison Whampoa shares, Chen Bingwen looked at Ling Peiyi: "Director Ling, we need to distribute the stock in the North American market as soon as possible."

We need to get our Pulse energy drink available in major North American cities before the prince's advertisement airs.

Moreover, this time we're going to use a combination of strategies.

Launch functional chewing gum and energy bars directly, and bundle them with energy drinks for promotional purposes.

Buy a case of beverages and give away a few packs of chewing gum or a few energy bars, or sell them as an 'energy package'.

Attract consumers to buy from multiple angles.

Ling Peiyi also knew that this was a crucial period for Chen Ji's development.

So, as soon as Chen Bingwen finished speaking, she immediately agreed, "I will immediately coordinate with the production and marketing departments to develop a detailed promotion schedule and sales plan to ensure that the products are already on the shelves of major North American channels before the advertising campaign begins."

“Yes.” Chen Bingwen nodded and added, “The North American market is large and has strong purchasing power, making it a profit growth point that we must capture.”

Having an additional stable profit channel gives us more confidence to compete with Li Ka-shing and HSBC in Hong Kong.

Remember, you must act quickly; you need to establish brand awareness in consumers' minds as soon as possible.

"Yes! I'll take care of it right away."

Ling Peiyi nodded, got up and left.

Fang Wenshan didn't follow immediately. He waited until Ling Peiyi left before speaking with a hint of worry:
"Mr. Chen, will the financial pressure be too great if you simultaneously promote large-scale marketing in North America and continue to acquire shares of Hutchison Whampoa and Ching Chau Yingni?"

The acquisition of Hutchison Whampoa has already cost 1.2 million, and more will be needed in the future.

The initial promotion in the North American market, especially the advertising and distribution costs, is also a significant amount.

Chen Bingwen was well aware of the financial pressure, but he understood the importance of timing even more.

"There is definitely pressure, but the window of opportunity waits for no one."

The North American market must quickly establish scale and brand recognition to generate cash flow.

On the Hutchison Whampoa side, we must secure enough leverage before Sir Michael Sandberg makes a decision.

Even if things are tense for now, we must hold on.

Meanwhile, Sir Michael Sandberg returned to the HSBC chairman's office, poured himself a glass of whiskey, and sat on the sofa, reminiscing about the scene at the China Resources preparatory meeting earlier that day.

That Hong Kong businessman named Chen Bingwen was much more composed than he had expected.

He had a clear mind and spoke and acted with neither arrogance nor servility, without the ostentation of typical nouveau riche Chinese businessmen.

More importantly, he clearly gained the attention and recognition of Zhang Jianhua of China Resources and even Wang Kuang of Xinhua News Agency.

This close relationship with the mainland is an invaluable intangible asset in the current situation.

"Young, energetic, innovative, and with connections there."

Shen Bi took a sip of wine and muttered to himself.

Compared to Li Jiacheng, Chen Bingwen is more like a blank canvas, with greater potential for development. His main business is food and beverage, which does not directly conflict with HSBC's core interests such as real estate and ports.

Perhaps cultivating him as a new advocate for interests would be more in line with HSBC's long-term plans?

However, he needs a more precise assessment of the specific situation.

Having an impression is not enough; you need data to support it.

Thinking of this, he walked to his desk, picked up the phone, and said, "Secretary, have the analysis department send me an analysis report on Chen Ji Food and its affiliated company, Sugar Heart Capital, as soon as possible."

“Yes, Sir Michael Sandberg.” The secretary responded immediately.

Not long after I gave the instructions, there was a gentle knock on the office door.

His other senior assistant walked in with a document. "Sir, this is a letter that just arrived today."

A routine inquiry letter from the Securities and Futures Commission regarding the compliance of our holdings of Hutchison Whampoa shares.

The other letter was anonymous, sent in the name of "minority shareholders of Hutchison Whampoa." It was strongly worded, directly citing the Banking Ordinance, questioning whether our 33.65% stake in Hutchison Whampoa exceeded the limits for licensed banks, and demanding that we clearly disclose our disposal plan and timetable.

As he spoke, the assistant placed two documents on the table.

Shen Bi put down his wine glass and picked up the documents.

The first document is a copy of the official inquiry letter from the Securities and Futures Commission.

The content concerns the potential compliance risks HSBC, as a licensed bank, may pose due to its excessively high shareholding in Hutchison Whampoa, and demands that HSBC provide an explanation and a solution within a specified period.

The wording was official and harsh.

The second letter was an anonymous letter issued in the name of "Hutchison Whampoa minority shareholders," questioning HSBC's long-term holding of Hutchison Whampoa shares as a drag on its development and also demanding a timetable for disposal as soon as possible.

Shen Bi's brows immediately furrowed.

The inquiry from the Securities and Futures Commission is no small matter; it indicates that the authorities have begun to pay attention and exert pressure.

The anonymous letter, though of unknown origin, was timed so precisely that it echoed the letter from the Securities Regulatory Commission, which was no coincidence.

He felt there was a hand pushing him from behind, with a clear objective: to force HSBC to sell its Hutchison Whampoa stake as soon as possible. Who was it?
Li Jiacheng?
He would probably prefer to negotiate privately rather than resort to this method that could easily strain relations.

Other British-owned conglomerates?

Ancient times? Or...?
Shen Bi frowned as he looked at the anonymous letter in his hand.

He had a gut feeling that someone was pushing this matter hard behind the scenes.

However, regardless of who was behind it, the letter had its effect.

It transformed a potential problem into a formal issue that had to be addressed and resolved immediately.

HSBC can no longer wait patiently for the best opportunity and the best buyer, as it used to.

"Banking regulations. Restrictions on licensed banks," Simp continued, repeating these key phrases.

This is indeed a weakness in HSBC's stake in Hutchison Whampoa. No one cared when the market was good and regulations were lax, but now that it has been formally brought up, it must be taken seriously.

Otherwise, if the Securities and Futures Commission formally launches an investigation, or even exposes the matter to the media, it will be a heavy blow to HSBC's reputation.

At this moment, the assistant interrupted Sir Michael Sandberg's thoughts, "Sir, how should we respond to the Securities and Futures Commission?"

"Have the Compliance Department and Secretariat draft a reply, with precise wording, stating that HSBC has always strictly complied with the Banking Ordinance, is actively studying specific plans to optimize its asset structure, and will provide a detailed response within the stipulated time."

Sumbi snapped out of his daze and instructed his assistant, “Use respectful language, but the content and timing can be a little vague to buy us more time.”

"Understood." The assistant made a note of it.

“In addition,” Sir Michael Sandberg thought for a moment and added, “regarding the assessment of the disposal of Hutchison Whampoa shares, let the investment department take the lead. Within a week, I want to see at least two plans for comparison, including analysis of potential buyers, estimated quotes, and transaction structures.”

Now that the official inquiry letter from the Securities and Futures Commission has arrived, he must expedite the processing of Hutchison Whampoa shares.

"Yes, Sir."

The assistant nodded and quickly left.

Shen Bi sat behind his large desk, staring blankly at the two letters on it.

The inquiry letter from the Securities Regulatory Commission and the anonymous letter were like two needles, piercing his originally calm and composed mindset.

HSBC's 33.65% stake in Hutchison Whampoa is indeed a legacy issue that has existed for many years in a gray area of ​​banking regulations.

In the past, when the market was booming and regulations were lax, no one took it seriously.

But now that it's been officially exposed, the nature of the situation is completely different.

As the cornerstone of Hong Kong's financial system, HSBC's reputation is paramount, and it must not be involved in any public compliance scandals.

These shares must be disposed of as soon as possible, and in a transparent, compliant, and even proactive manner.

The time window has been greatly compressed.

His original plan was to slowly find the most suitable "white glove," negotiate calmly, and strive for the best terms.

Now, he must speed things up and may even be forced to make a choice at a less than ideal time.

Meanwhile, the headquarters building of Cheung Kong Holdings' Chinese branch.

Upon returning from the China Resources preparatory meeting, Li Ka-shing, unlike his usual smiling demeanor, walked into his office with a gloomy expression.

The appearance of Chen Bingwen at the China Resources preparatory meeting, and his pleasant conversation with Shen Bi and Wang Kuang, made him feel uneasy.

This young man's expansion is too rapid, and he always seems to be able to find resources and support.

He instinctively felt that Chen Bingwen's goal was not limited to Yingni in Qingzhou.

Although he doesn't know exactly what it is, he must take precautions in advance.

“Xiao Lian,” he said to his secretary Hong Xiaolian, “have our people investigate carefully whether Chen Bingwen has made any other major moves recently besides Yingni in Qingzhou.”

We need to find out exactly where the funds are flowing, especially the movements in overseas accounts.

(End of this chapter)