A layman in the courtyard

Chapter 202 Prepare to Exchange
Time always flies by, and it’s 1965 in a flash.

On the eve of the Spring Festival in 1965, Hong Kong Island was obviously not as peaceful as in previous years.
The Mingde Bank in Hong Kong caused an uproar in Hong Kong Island because it refused to pay a check for HK$700 million, and attracted the attention of everyone in Hong Kong Island.
In the next few days, there were incidents of insufficient cash to pay some large customers at Mingde Bank.

Coupled with the fueling of unscrupulous media, people panic because they are worried that Mingde Bank will not be able to pay cash for their life-long savings.

Therefore, a large-scale run occurred, and Mingde Bank’s boss misappropriated depositors’ money to invest in real estate on a large scale.

In 1964, the price of real estate on Hong Kong Island fell sharply, and the market conditions were not good. As a result, the owner of Matilda Bank could not withdraw his real estate assets.

In the event of a run, it was as if the Hong Kong government filed for bankruptcy protection a few days later.

However, all this was just the beginning for Mingde Bank. After Mingde went bankrupt, people who were originally nervous were led to Chinese-owned banks by thoughtful people.
This caused the Hong Kong people’s confidence in Chinese banks to be shaken.

Guangdong Trust Commercial Bank subsequently suffered a run, and during this period, there were few banks whose funds were not invested in real estate business, so naturally they could not afford so much cash to pay depositors.

As the real estate market cooled down, sales stagnated and prices plummeted, and people with good intentions were attracted to it. Within two days, Guangdong Trust Bank ceased operations, and then Guangdong Trust Commercial Bank was taken over by the Hong Kong government.

This triggered a mass pursuit of Chinese-funded banks, which instantly affected many Chinese-funded banks on Hong Kong Island that afternoon.

Including Hang Seng Bank, the largest Chinese-owned bank on Hong Kong Island, as well as banks such as Guang'an Bank, Dao Heng Bank, and Wing Lung Bank, runs occurred on Chinese-owned banks throughout Hong Kong Island and continued to spread to Far East Bank and Guang'an Bank.

Every day, depositors queue up at the entrance of Hang Seng Bank all night long to withdraw money. In just ten days, more than 2 million Hong Kong paper was withdrawn, which caused operational difficulties and put Hang Seng Bank into bankruptcy crisis.

Cao Zhihua received He Shanheng from Hang Seng Bank in the chairman's office of Zhihua Group in the industrial park.

After He Shanheng and Cao Zhihua exchanged pleasantries, he held the teacup in both hands and said bitterly:

"Mr. Cao, this time Chinese banks suffered a large-scale run.
Originally, in February, with the Hong Kong government's intervention to appease the situation, the situation gradually subsided.

However, recently the media has suddenly and maliciously manipulated the funding issues of Chinese banks.
As a result, Hang Seng Bank suffered another large-scale run.

Since it was 1964 basis points on July 7, 31, the Hang Seng Index launched by Hang Seng Bank has been very "spectacular".

Simply speaking from the perspective of internal index compilation, the pattern is still extraordinary. Otherwise, why is there no HSBC index?

Mr. Cao, Hang Seng Bank is already the leading Chinese-owned bank in Hong Kong, and its development momentum is still strong. It can be said to be a strong rival of the "British-owned bank" HSBC.

This sudden bank run was actually a stranglehold on Chinese banks initiated by British banks.

And I also received the quotation from HSBC Bank for Hang Seng Bank. After thinking about it, I feel that only Mr. Cao can save Hang Seng Bank in the entire Hong Kong Island.

So I ask Mr. Cao to lend a helping hand. "

Cao Zhihua's current industries have spread all over Hong Kong Island, involving real estate, department stores, shopping malls, shipping, building materials, clubs, cinemas, TV stations,
He is definitely the richest man and the richest man in Hong Kong Island.

Now the only shortcoming of Zhihua Group is that it owns its own bank, so Cao Zhihua has actually been eyeing Hang Seng Bank for a long time, and naturally he will not let the fat he got get away.

However, the transaction on the pole is not a transaction. It is He Shanheng who is in a hurry now, not Cao Zhihua, so Cao Zhihua said with a relaxed expression:
"We are both Chinese, and Mr. He is one of my few friends in the business world. If I can be of any help, I will naturally be willing to help.

I don’t know how Mr. He wants me to help you. Since you said this is a stranglehold on you by foreign-funded banks, how are you going to respond? "

He Shanheng was happy when he heard that Cao Zhihua was willing to help him, but when he saw Cao Zhihua wondering how he would deal with the strangulation, he got a headache again.

Because this time, HSBC and Standard Chartered Bank, the central bank of Hong Kong Island, have joined forces to strangle Chinese banks.

So I asked Cao Zhihua to dismantle a sum of funds and use it for the immediate bank run. However, HSBC's follow-up measures had not yet been used, and I was crying to know if I could withstand it.

Could it be that at that time he came over again and continued to ask Cao Zhihua for help?
Favors must not be used like this. Cao Zhihua is willing to help you once to give you face and it is a favor.
Do they still help you over and over again?
How is that possible when they don’t have much of a stake in you?
After thinking for a long time, He Shanheng, who was extremely troubled, sighed and said:
"Mr. Cao, the stranglehold at HSBC is very strong this time. To be honest, I don't know if I can resist it.
It's just that HSBC went too far in bullying. They only estimated that the entire Hang Seng Bank was worth only 1 million. They wanted to acquire 7500% of Hang Seng Bank's shares for HK$75 million.

Mr. Cao, I think so. They are all sold at a low price anyway. Instead of cheapening white-skinned foreigners, I might as well sell the bank to you.

I believe that with your reputation and strength, you will be able to keep our Chinese-owned bank and even develop and grow Hang Seng Bank in this harvest. "

Cao Zhihua showed an emotional expression and said:
"Mr. He, do you want me to directly acquire your shares in Hang Seng Bank, or do you want me to inject capital into Hang Seng Bank?"

He Shanheng sighed, his expression obviously showing age. Hang Seng Bank is an industry that He Shanheng has worked hard for all his life. Who would be willing to sell it directly unless it is absolutely necessary?

Isn’t this a last resort? He said:
"Mr. Cao, in my mind, the market value of Hang Seng Bank must exceed HK$4 million.
But I know no one will give us this valuation now,
So I hope you can acquire 2% of our shares in Hang Seng Bank at a valuation of HK$51 million, and inject a sum of capital into Hang Seng Bank to help Hang Seng Bank tide over the difficulties. "

After hearing He Shanheng's conditions, Cao Zhihua did not answer immediately, but tapped the table of his desk with his right hand.

He took out two more Cuban cigars from the drawer, handed one to He Shanheng, and lit the one in his hand.

Cao Zhihua knew that if he wanted to, Hang Seng Bank would definitely get it.
It's just that it's only 1965, and it's still the period of strength for White Paper in Hong Kong, so what Cao Zhihua is thinking about is if he can win Hang Seng Bank without angering HSBC.

After thinking for a while, Cao Zhihua said:
"Mr. He, there is no problem with the assessed value of 2 million.
But I had several conditions. First, I acquired Hang Seng Bank. I had neither experience nor energy to manage Hang Seng Bank.
Therefore, Hang Seng Bank will still need Mr. Ho to take the helm personally in the future. "

He Shanheng was very happy when he heard what Cao Zhihua said. In the future, Hang Seng Bank will still be the top class, and he will still have the final say in competition.

"Second, Mr. He, if it's just a friend who is helping you and dismantling a sum of funds to tide you over, then forget it.
If I invest in the acquisition, I hope to have an absolute controlling stake of 75% in Hang Seng Bank.

Because I didn’t understand the banking industry or financial business before, I had to have absolute controlling rights before I could make the acquisition with confidence.Third, before the acquisition, I still need to communicate with Mr. Shen Bi, the senior manager of HSBC, and hope to get his understanding or support.

Fourth, once the acquisition is completed, I will hold a press conference, personally stand up for Hang Seng Bank, and deposit up to HK$20 billion of funds in Hang Seng Bank to resolve the run.

Mr. He, these are my requirements. Please consider them. "

After He Shanheng heard Cao Zhihua's conditions, his expression suddenly changed. In fact, Cao Zhihua's conditions were unprecedentedly beneficial to Hang Seng Bank.

Moreover, Cao Zhihua's reputation is much better than that of those foreign banks. Since Cao Zhihua said that the bank will still be in charge of He Shanheng in the future, He Shanheng does not have much resistance to selling 75% of the stock to Cao Zhihua.

What really troubled He Shanheng was that Cao Zhihua still needed to communicate this matter with Shen Bi first. What if Shen Bi didn't give Cao Zhihua face?

Will the terms negotiated with Cao Zhihua today have to be invalidated again?So He Shanheng asked nervously:
"Mr. Cao, what if you and Mr. Shen Bi of HSBC Bank fail to reach an agreement?"

Cao Zhihua looked at the nervous He Shanheng and sighed inwardly. It seemed that this old friend was frightened by HSBC's move this time.
So he said comfortingly:

"Mr. He, please rest assured. Since I promised Mr. He that I would help, I will definitely help.
The reason why I communicated with Mr. Shen Bi first is because Mr. Shen Bi has taken great care of our family since I came to Hong Kong Island.

I have always regarded him as an elder, so I should communicate with him in advance regarding this matter, both emotionally and logically. The result is not important, I will take care of it, don't worry. "

When He Shanheng heard Cao Zhihua's reply, he breathed a sigh of relief and said:
"Then thank you Mr. Cao. Without your help this time, Hang Seng Bank probably wouldn't have been able to get through this."

Cao Zhihua said with a smile:
"We are old friends. I may not be good enough at other things, but there is one thing I think I can do well. That is, I can't let my friends suffer. If my friends ask for help, no matter whether I can help or not, I will do it. I’m willing to help.”

He Shanheng shook his head with a wry smile and said:

"In the entire Hong Kong Island, there are very few things that Mr. Cao can't help with. You are so self-effacing."

Cao Zhihua said with a smile:
"You will gain wisdom after suffering a loss. From now on, Mr. He only needs to be confident and bold in running Hang Seng Bank according to your ideas."
As for other matters, as long as I am here, I will take care of them. You can just go ahead and do it. "

He Shanheng became happy when he heard what Cao Zhihua said. Although his bank was sold, he still had a lot of shares, and the most important thing was that the bank was still in Chinese hands and had not been harvested by foreign banks at a low price. Walk,

This made He Shanheng very happy.

After sending He Shanheng away, Cao Zhihua arranged for Li Shengnan and Xiaoyu to handle the acquisition of Hang Seng Bank.

I called Shen Bi.

"Hey, is this Uncle Shen? I'm Zhihua."

"Oh, it's Zhihua. I called Uncle Shen today. What can I do for you?"

"Yes, I haven't played waves with Uncle Shen for a long time. I want to make an appointment with Uncle Shen to play waves together."

Shen Bi was an authentic Hua Guotong. When he heard Cao Zhihua's words, he didn't know that this man had anything to do with himself, so he said:
"I have time in the afternoon, Zhihua, what do you think?"

Cao Zhihua also hoped that this matter could be communicated as quickly as possible, so he said:
"Okay, Uncle Shen, let's meet at Deep Water Bay for golf at 2pm."

"Okay, see you soon."

After Cao Zhihua hung up the phone, he began to wonder what benefits he would get in exchange for Hang Seng Bank.

After much deliberation, I still felt that exchanging shares of the Victoria's Secret apparel company was the most cost-effective option.

Although this company is still the company's main profit-making enterprise, its annual profit is about 2-300 billion US dollars.

But today's clothing companies are no longer in the market development period a few years ago, when they were sold out as soon as they shipped products.

There are more and more sexy costumes appearing on the market. Nowadays, Victoria's Secret sexy costumes rely more on brand and quality for refined sales.

In addition, in recent years, the company has paid more and more attention to market development, lower-level market and brand awareness creation. Although it is still a very profitable company,
It also brought huge rewards to Cao Zhihua. At one time, Cao Zhihua was listed in Time Magazine in the beautiful country as the world's richest man.

But Victoria’s Secret clothing company, no matter how awesome it is, is just a low-tech company, relying on the development brought about by Hong Kong Island’s low-wage demographic dividend.
The threshold itself is very low, and the profits are still so large, the competition will naturally become more and more intense as time goes by.

Therefore, no matter how good the data and earnings are, they cannot hide the fact that clothing companies are in decline.

Although it will not directly enter the column of sunset companies, it is difficult to see the same booming scene as before.

It would be better to invest a sum of money when the momentum looks best and the data is exploding, and at the same time acquire the cornerstone of your family's future development, Hang Seng Bank.

Because after much thought, Cao Zhihua was able to impress this group of vampires who were able to impress the senior officials of the Hong Kong government and banks.
He has too few chips to impress them. After all calculations, Cao Zhihua estimates that only his clothing company can impress them.

Other things such as real estate, department stores, shipping companies on Asian routes, movie theaters, etc., which are good things in the eyes of others, may not necessarily be seen by these people.

Of course, except for the world's tallest building, which is almost completed.

(End of this chapter)