Rebirth of the Hong Kong Millennium Conglomerate

Chapter 28 Acquisition of Securities Companies

The next day, just as dawn was breaking and the horizon was still shrouded in a hazy, pale light, before the city's hustle and bustle had fully subsided, Chen Mo drove to the apartment building where Su Qing rented a place.

He rolled down the car window and glanced at his watch. The hands were just past 6:30. At this time, most office workers would still be dreaming, but since working for Zhang Zeyang, he and Su Qing had long been used to this fast-paced rhythm.

Before long, a slender figure appeared at the entrance of the residential area. Su Qing was wearing a smart black business suit, her long hair was neatly tied into a bun, and her face had a refreshing look. She was carrying a black briefcase and quickly walked to the car, opened the door, and got in.

"Good morning, Attorney Chen, thank you for your help!" Su Qing said to Chen Mo after getting into the car.

"Secretary Su, you're too kind!" Chen Mo nodded, then started the car and merged into the sparse traffic of the early morning.

Before long, the car arrived at Zhang Zeyang's door in Repulse Bay.

The two got out of the car and walked straight to the villa entrance. Without needing to announce their arrival, the security personnel at the entrance recognized them and raised their hands to signal them to pass.

As you push open the door, the living room is softly lit. Sunlight filters through the sheer curtains from the floor-to-ceiling windows, casting dappled shadows on the polished marble floor. Zhang Zeyang is sitting on the sofa in the center of the living room, holding a financial newspaper.

"Mr. Zhang!" Chen Mo and Su Qing said in unison, standing respectfully beside the sofa.

Zhang Zeyang put down his newspaper, looked up at the two of them, his deep eyes revealing little emotion, and simply nodded slightly: "Sit down."

The two sat down as instructed. After the servants brought two cups of warm coffee, Zhang Zeyang glanced at them and said bluntly, "I called you here because I have a task for you."

Chen Mo and Su Qing immediately straightened their backs and listened attentively.

"To acquire a securities company, the size doesn't need to be too big, small to medium size is fine, but one thing is certain: the licenses must be complete. The core licenses such as securities brokerage, securities underwriting and sponsorship, and proprietary trading are all indispensable. The qualifications must be clean and there can be no historical issues."

Upon hearing this, Chen Mo replied, "Okay, Mr. Zhang, we'll do it immediately!"

The two then confirmed some core requirements for the acquisition with Zhang Zeyang, such as keeping the acquisition cycle within half a month as much as possible, and giving priority to securities firms that are willing to transfer the entire business and have no debt disputes. After all the details were confirmed, the two got up to say goodbye.

Over the next few days, Chen Mo and Su Qing worked almost non-stop. The two had a clear division of labor: Su Qing was responsible for connecting with people in the financial industry, contacting major intermediary agencies, and screening information on securities firms that met the criteria.

Chen Mo was responsible for verifying the qualifications, background, and financial status of each securities firm, and eliminating those targets with potential risks.

During this period, they also looked at several securities firms, but they were either too large and the acquisition cost was too high, which did not meet Zhang Zeyang's requirement of "small and medium-sized".

One company lacked complete licenses and core business qualifications. Another company seemed to meet the requirements, but further investigation revealed hidden debt disputes, forcing them to abandon the deal.

On the afternoon of the sixth day, an intermediary called suddenly, saying that they had found a brokerage firm that met their requirements.

The two immediately put down their work and drove to the brokerage firm to obtain its detailed information.

This brokerage firm is called Hengxin Securities. It is a small to medium-sized brokerage firm established for five years. It is not large in scale, with fewer than 200 employees, but it has all the core licenses. It has all the qualifications for brokerage, underwriting, proprietary trading, etc., and its qualifications are clean with no historical issues.

However, due to poor market conditions in recent years and poor management decisions, the company's operating performance has continued to decline, resulting in consecutive years of losses. It has long been unable to make ends meet, and the shareholders are unwilling to continue investing funds. They are looking to sell the entire company at a very attractive price.

The only thing to note is that, in addition to its own funds, Hengxin Securities also manages a portion of client funds, and the amount is not small.

After carefully checking all the documents, Chen Mo and Su Qing confirmed that Hengxin Securities fully met Zhang Zeyang's requirements. The only problem was the funds being managed on his behalf.

The two dared not make a decision on their own and immediately decided to report the situation to Zhang Zeyang.

That evening, the two returned to the Repulse Bay villa. The living room was brightly lit, and Zhang Zeyang was standing in front of the French windows, looking at the night view in the courtyard. Hearing footsteps, he slowly turned around.

"Mr. Zhang, we've found a securities firm that meets our criteria." Chen Mo stepped forward and handed over the information for Hengxin Securities.

Zhang Zeyang took the documents, casually flipped through a few pages, lingered on the key information for a moment, and looked up at the two of them: "Tell me the specifics."

Su Qing immediately began to speak, reporting in a clear and organized manner: "This brokerage firm is called Hengxin Securities. It is a small to medium-sized firm with all the core licenses, clean qualifications, no historical issues, and the shareholders intend to transfer the entire firm at a price that is within our budget."

However, there's a catch: this company has been losing money for years, and currently, in addition to its own funds, it also has some clients' funds held in escrow.

After he finished speaking, there was a brief silence in the living room. Chen Mo and Su Qing both looked at Zhang Zeyang, waiting for him to make a decision.

To everyone's surprise, Zhang Zeyang didn't hesitate at all. After reading the information, he placed it directly on the coffee table next to him and said, "Just take it. Don't worry about the price. As long as we can complete the acquisition as soon as possible, we can discuss any terms."

Upon hearing this, Su Qingren asked, "Mr. Zhang, what about the funds held in trust...?"

"After the acquisition is completed, all funds held in escrow will be returned to the clients through the original payment method. Regardless of the amount, all funds will be returned. We will proactively contact the clients, explain the situation, and strive for their understanding."

Upon hearing this, the two immediately responded in unison, "Yes, Mr. Zhang, we will go and move forward with the acquisition."

With Zhang Zeyang's clear instructions, the subsequent acquisition process went much more smoothly. Chen Mo and Su Qing immediately contacted the shareholders of Hengxin Securities to begin acquisition negotiations. The other party was eager to make a move, and with Qiangu Group's strong financial resources and sincere offer, the negotiations went very smoothly, and the two sides quickly reached an agreement and signed an acquisition agreement.

In the following days, the two were busy handling various transfer procedures, liaising with industrial and commercial, financial regulatory and other departments, and dealing with various handover matters within Hengxin Securities.

Chen Mo was responsible for checking the financial accounts to ensure that the flow of funds was clear. At the same time, as required by Zhang Zeyang, he contacted each of the clients who held the funds in trust to inform them of the acquisition and promised to return the funds in full.

A week later, all acquisition procedures were completed, and Hengxin Securities officially changed hands. As per Zhang Zeyang's request, all shares of the securities company were registered under Qiangu Group, making it a wholly-owned subsidiary of Qiangu Group.

On the same day the formalities were completed, Chen Mo and Su Qing returned to the Repulse Bay villa to report to Zhang Zeyang. After listening to their report, Zhang Zeyang showed a satisfied expression and said calmly, "Well done. Next two things."

"First, Hengxin Securities has officially changed its name to Qiangu Securities, and will complete the business registration change and license information update as soon as possible."

"Secondly, Su Qing will be fully responsible for the daily operations and external communications of Qian Gu Securities from now on. I trust you with this responsibility."

Su Qing's heart skipped a beat, and she immediately stood up respectfully, saying, "Thank you for your trust, Mr. Zhang. I will certainly live up to your expectations!"

Zhang Zeyang nodded slightly, then turned his gaze to Chen Mo and said, "Chen Mo, from today onwards, you no longer need to follow up on the matters of Qian Gu Securities. Go and build the legal team for Qian Gu Group."

Chen Mo was slightly taken aback, then realized what he meant and respectfully replied, "Yes, Mr. Zhang, I will make the preparations right away."

"The legal team must be composed of reliable people. Priority should be given to hiring professionals with experience in legal affairs of large enterprises and familiarity with financial law. Once the team is established, it will be responsible for the legal risk control of all the group's businesses, and no mistakes can be made," Zhang Zeyang instructed.

As Qiangu Group's business expands, so too do its legal risks, making it imperative to establish a professional legal team.

"I understand. We will definitely rigorously select talent and build a strong legal team," Chen Mo replied in a deep voice.

"Alright, you can all go about your business now. Report to me any progress as soon as possible." Zhang Zeyang waved his hand, his tone indifferent.

"Okay!" the two replied in unison, then turned and left the villa.

After leaving the Repulse Bay villa, Chen Mo and Su Qing stood by the roadside, looked at each other, and saw excitement in each other's eyes.

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