Courtyard House: Time Traveler Not Yet a Ghost

On the morning of Victoria Peak, a thin mist, like a veil, gently enveloped the awakening city. The outline of Victoria Harbour gradually became clear in the dawn light, and on the sea, several ocean-going cargo ships were slowly entering the harbor, their horns faintly audible, resonating in sync with the hustle and bustle that began to rise from the streets.

He Damin stood before the floor-to-ceiling window of his study, a cup of warm Longjing tea in his hand, his gaze deep and thoughtful. Acquiring the bank was a move he had long planned. In Hong Kong, finance was the lifeblood; without its own bank, any dream of a business empire was like building a tower on sand.

There was a knock on the door behind me.

"Come in."

Lawrence pushed open the door and entered, carrying the leather briefcase that He Damin was already familiar with. He was dressed in an impeccably tailored dark gray suit, and his eyes behind his gold-rimmed glasses shone with professionalism and shrewdness.

"Good morning, Mr. He." Lawrence gave a slight bow. "I have compiled a detailed report on the investigation you commissioned last time."

He Damin turned around, gesturing for him to sit on the sofa. Chen Xueru brought in a pot of freshly brewed tea, placed it on the coffee table, nodded slightly to Lawrence, and then quietly withdrew.

Lawrence watched Chen Xueru leave, a barely perceptible hint of envy flashing in his eyes. He opened his briefcase, took out a thick stack of documents, and handed them to He Damin with both hands.

"Mr. Ho, this is detailed information on the major Chinese-owned banks in Hong Kong. As per your request, I focused my investigation on Hang Seng Bank, Wing On Bank, Union Bank, and Connaught Bank." He paused, "In addition, the situation of Liu Chong Hing Bank is also worth noting. Although you did not specifically mention it, I took the liberty of including it in the scope of the investigation."

He Damin took the document, but did not open it immediately; he simply placed it on his lap.

"Tell me your thoughts."

Lawrence cleared his throat and began his report.

"Hang Seng Bank is currently the largest Chinese-owned bank in Hong Kong." He opened his notebook and said, "Founded in 1933 by Lam Ping-yim, Ho Sin-hang, and others, it was initially a bank and registered as a private limited company in 1952. Its headquarters are located on Queen's Road Central in Central, with deposits of approximately HK$7.2 million and total assets exceeding HK$7.6 million."

He looked up and glanced at He Damin.

"The bank's customer base mainly consists of small and medium-sized enterprises and ordinary citizens. Ho Sin-hang's business philosophy is very unique - he stipulates that employees must treat customers with sincerity and not discriminate against the poor or rich. Many of today's large companies were originally small workshops when Hang Seng Bank provided their first loan."

He Damin nodded slightly. He understood this better than Lawrence. He was already intimately familiar with the history of Hang Seng Bank in later generations.

"Wing On Bank," Lawrence continued, "belongs to the same group as Wing On Company, and mainly serves merchants and clients in the department store industry. It is smaller than Hang Seng Bank, but has unique advantages in retail banking."

"Union Bank." He turned a page. "It was established in 1954, making it the youngest of these banks. The founders were several overseas Chinese from Southeast Asia, and it mainly focused on remittances from Southeast Asia. It had a weak foundation in Hong Kong, but its development momentum was good."

"Kang Nian Bank." Lawrence paused. "This bank is rather unique. It's not large, mainly serving the long-time residents and small and medium-sized businesses in the Western District of Hong Kong Island. Its operating style is extremely conservative, but therefore very stable."

He closed his notebook.

"As for Liu Chong Hing Bank, it was founded by Liu Po-shan in 1948 and officially registered as a limited company in 1955. This bank is quite interesting—Liu Po-shan pioneered high-interest small-amount deposits and extended its business hours to 8:00 am to 5:00 pm without a lunch break, which was very popular with ordinary citizens. Currently, its deposits are approximately HK$1.09 million."

Lawrence looked at He Damin.

"Mr. Ho, if I may be frank, now is indeed a good time for you to acquire banks. Hong Kong's economy is recovering, and the banking industry is developing rapidly. However, most of these Chinese-owned banks are still family-run businesses with relatively simple shareholding structures, making acquisitions relatively easy. Moreover..." He lowered his voice, "As far as I know, several banks are currently facing some pressure."

He Damin raised his eyelids.

"What kind of pressure?"

"First, there's the competitive pressure," Lawrence said. "HSBC and Standard Chartered, the two note-issuing banks, have deep roots in Hong Kong and dominate the high-end market. Chinese-owned banks can only compete for low- and mid-range customers, with thin profit margins and high risks."

He paused.

"Secondly, there is the operational risk. These family-owned banks often lend a large amount of money to familiar industries—for example, Liu Chong Hing Bank lends more than 70% of its deposits to real estate. If the housing market fluctuates, the consequences will be unimaginable."

He Damin remained silent for a moment before finally opening the document in his hand.

The information is very detailed. It lists the shareholder structure, management background, deposit size, loan distribution, branch locations, and even the composition of major clients for each bank. Lawrence's work is indeed reassuring.

"What is the shareholding structure of Hang Seng Bank?" He Damin asked.

Lawrence was prepared.

"Hang Seng currently has a registered capital of HK$3000 million and a paid-in capital of approximately HK$1500 million. The founders, including Ho Sin-hang, Leung Chi-wai, and Ho Tim, hold the largest stakes, totaling over 60%. The remaining shares are held by dozens of smaller shareholders."

He added, "From what I understand, the founders are all over fifty years old and have different ideas about the future development of the bank. Ho Sin-hang wants to operate steadily, but the others are more inclined to expand."

He Damin nodded and then turned to the section on Yong'an Bank.

“Wing On Bank’s shareholding is more concentrated,” Lawrence said. “It is mainly controlled by the Kwok family. They started out in the department store business, and banking is just a side business. They are open to selling shares—of course, at a reasonable price.”

The situation is similar at Union Bank, where several overseas Chinese from Southeast Asia hold roughly equal stakes, with no single controlling shareholder. Connaught Bank, on the other hand, is a typical family bank, with its shares firmly held by the founding family, making it difficult for outsiders to gain control.

He Damin closed the document, leaned back on the sofa, and closed his eyes in deep thought.

Lawrence waited quietly. He knew that this incredibly young and wealthy man didn't like to be disturbed when he was thinking.

A moment later, He Damin opened his eyes.

"Let's put Hang Seng Bank on hold for now," he said. "I know Ho Sin-hang. He has principles and ambitions. Now is not the best time to discuss a takeover. Forcing our way in will only provoke a strong backlash and may even alarm HSBC."

Lawrence nodded and quickly made a note of it.

"We can contact Wing On Bank," He Damin continued. "If the Guo family is willing to sell, price is not an issue. But we need to tell them that I only want controlling interest; they can continue to manage the operations. This will reduce their wariness."

"Union Bank," he paused, "this bank is newly established and its foundation is unstable. The shareholders have different backgrounds and their opinions may not be unified, so this is a good time to take over. You should talk to their major shareholder. You can acquire it at a premium, but you must get at least 51% of the shares to ensure control."

"Kangnian Bank," He Damin pondered for a moment, "let's leave this one for now. It's family-run, outsiders can't get in, and a forced acquisition would only alert them, which wouldn't be good."

Lawrence wrote them down one by one, then looked up.

"Mr. He, what about Liu Chong Hing Bank?"

He Damin's lips curled up slightly.

"Liao Baoshan," he said, "is a man of ideas. High-interest deposit-taking and extended business hours are innovative. But his problem is also obvious—he's too aggressive. If there's even the slightest disturbance in the real estate market, his bank will be in danger."

He stood up and walked to the window.

"There's no need to rush with Liu Chong Hing Bank. Let's wait a year or two until it runs into trouble, then we'll make our move. By then, the price will be much cheaper, and it will be easier to acquire it."

Lawrence's eyes lit up slightly. He vaguely understood what He Damin meant; this was to "strike while the iron is hot."

"Mr. He means...?"

He Damin did not answer directly.

"Keep a close eye on this bank, especially its loan structure and cash flow. Let me know immediately if anything seems amiss."

Lawrence nodded, his admiration for the young tycoon's foresight growing. He, of course, didn't know that He Damin's "one or two years" was actually based on historical memory—in 1961, Liu Chong Hing Bank was facing a severe bank run, and its founder, Liu Baoshan, had died suddenly during the crisis. That would be the best time to take control.

Over the next hour, He Damin and Lawrence discussed the acquisition strategy and price range in detail.

"How much can Wing On Bank offer?" He Damin asked.

Lawrence opened another folder.

"According to my estimates, Wing On Bank's total assets are around HK$2 million, and its net assets are around HK$5000 million. To acquire a controlling stake, considering the premium, it would cost approximately HK$3000 million to HK$3500 million. The Kwok family is quite price-sensitive; they value their core department store business more. For them, the bank is an added bonus, not a necessity."

He Damin nodded, offering no objection.

"Union Bank is smaller, with total assets of about 1.2 million and net assets of 3000 million. Acquiring a 51% stake would cost around 2000 million. However, those overseas Chinese from Southeast Asia also have businesses there, so their expectations may not be low, and they might try to raise the price."

He Damin thought for a moment.

"Union Bank can accept up to 2500 million. But we need to be quick, before others react. These emerging banks have dispersed shareholdings, are highly volatile, and there's a lot of room for error."

Lawrence noted it down and then asked, "Although Kangnian Bank is not moving for the time being, shouldn't we establish a relationship first?"

"Sure," He Damin said. "Go visit their management and tell them I want to open an account with them and deposit some money. While you're at it... sound them out and find out what they're really thinking."

Lawrence understood that this was a trial balloon, and also a gesture.

Finally, He Damin took a check out of the drawer and pushed it in front of Lawrence.

Lawrence looked down and his eyes widened slightly.

It was a HSBC bank draft, for HK$500,000.

"Mr. He, this..."

"This is an advance payment for your commission," He Damin said calmly. "Whether the acquisition succeeds or not, this 500,000 is yours. If it succeeds, I will pay you an additional 5% commission on the transaction price for each acquisition."

What does HK$500,000 mean? Lawrence knew very well. As a lawyer, his annual income was only HK$20,000 to HK$30,000. HK$500,000 was equivalent to twenty years of his income. That was enough to motivate him to give it his all.

He took a deep breath and tried to remain calm.

"Mr. He, you are too generous. I will do my best."

He Damin waved his hand.

"Money is not the issue. What I want is results."

He paused.