I Want To Be a Rich Man on Hong Kong Island

  Chapter 668 [Uneven Hong Kong Island! 】

  Beginning in 1983, Hong Kong Island started the ‘big wave to wash the sand’, and news of a company’s liquidation came from time to time.

  The Carrian Group was formally liquidated in January, and Chen Qingsong and others were also charged with conspiracy to defraud shareholders and creditors;

  Compared with the previous life, the evidence about Chen Songqing and others in this life is more sufficient;

  First of all, the director of Yumin Finance was not killed by Chen Songqing;

  Secondly, the head of the law firm of the Carrian Group did not commit suicide;

  Finally, the police also received evidence from an anonymous person.

  The liquidation of the Carrian Group and the news that the Sino-British negotiations are not going smoothly have caused the people on Hong Kong Island to panic;

  In this social situation, the banking industry is bound to be unlucky;

  This is the case. A number of financial companies began to wind up one after another. For a while, there was another bank run on Hong Kong Island.

  For the bank, after the depositor deposits the money, the bank needs to use it to lend, and it is impossible to use all of it as working capital;

  In other words, the depositor’s money is always greater than the bank’s working capital;

  So, no matter which bank has a bank run, it may be on the verge of bankruptcy.

  The only difference is that reputable banks will not have large-scale bank runs;

  In addition to this kind of bank, they generally have more than 25% of the liquidity of deposits;

  Therefore, a bank with a good reputation has minimal risk!

  So in the event of a bank run caused by a social panic, the most unlucky one is the "finance company" on Hong Kong Island;

  On Hong Kong Island, banks are not the only ones who can open the cabinet to save money, financial companies can also absorb depositors’ funds;

  But one of the most important reasons why a financial company does not call it a bank is that it is not strong enough and has not yet obtained a bank license.

  Because these financial companies are not strong enough, most of the deposits are still incurred by real estate developers;

   Therefore, once a run occurs, the financial company has only one way to wind up.

  In addition to financial companies and small banks, some real estate companies have also begun to wind up, such as Carnival Real Estate;

  The founder of Carnival Real Estate died just in February, losing the head and breaking out of a financial crisis;

  Afterwards, Carnival suspended trading in the stock market and announced its liquidation.

  The so-called ‘big wave washes the sand’, an unprecedented crisis struck, although it swept away the life savings of most blind investors, and caused a huge impact on Hong Kong’s industrial and commercial economy and stock market;

  But the crisis also brought severe challenges to a lot of companies at the same time, to see who is the real material and who is the best;

  Most companies will learn from the past experience of Hong Kong Island. While developing real estate, they will also control the company’s debt ratio and liquidity;

  Even if this kind of company encounters this kind of crisis, it can still wait for the dawn.

  There is also a company and investors, who generally invest blindly, or take huge loans, or use leverage;

  In the end, it is like a soap bubble, bursting with a single poke.

  At the same time, the damage caused by the storm also made the government understand that the current legal system really cannot cope with the rapid development of the industrial and commercial market and the securities market;

  The afterthought, the Hong Kong government began to make up for it and start research and re-enact a set of suitable bills!

  In March, a shocking news broke out on Hong Kong Island: Hang Lung Bank, one of the largest Chinese banks in Hong Kong, suffered an unprecedented run;

  A large number of depositors began to line up all night regardless of loss, intending to withdraw all their deposits in Hang Lung Bank;

  For this, even if we lose many years of periodic interest, we do not hesitate to do so.

  As early as September last year, after the Iron Lady wrestled, the real estate market in Xiangjiang collapsed;

  Some media have jumped out, predicting that some banks in Heung Kong will inevitably follow the fate of Liao Chong Hing Bank and Hang Seng Bank being run on.

  This view is actually okay. Small banks have been relying on high interest rates to attract depositors;

  Although depositors are tempted by high interest rates, they are also extremely worried that their money will fall into the puddle;

  If the bank loses, it is very easy to cause a run.

  Once the run breaks out, the bank will not die from the previous loss, but it will immediately be overwhelmed by the run.

  After all, the bank has absorbed deposits from depositors and must lend it out;

  Otherwise, how can the interest of depositors be paid?

  Once a run is possible, it is impossible for the bank to transfer cash back in a short period of time;

  In the absence of foreign aid, the only outcome is to declare a liquidation and be taken over by the government.

  In Xiangjiang, the main customers of banks are real estate companies;

  When the local price collapses, the real estate company and the bank will suffer both losses, and losses will inevitably occur;

  At this time, all the depositors themselves are gunpowder kegs, and as long as they have a little news, they will be lit.

  According to the scale of Hang Lung Bank, it already has a certain degree of anti-risk ability;

  So why does Hang Lung Bank bear the brunt of the large and medium-sized banks this time?

  Speaking of it, Hang Lung Bank was also unlucky and was continuously implicated:

The first case implicated-Xie Liyuan Gold Shop was founded in the sixth year of Tongzhi in the Qing Dynasty (1867). In the 1970s, gold prices rose sharply. Xie Liyuan Gold Shop launched the "Thousand Foot Gold Accumulation Plan": citizens can open gold accounts, according to the day Buy and sell gold at the price of gold. After its launch, it was greatly welcomed by the people of Hong Kong, and industry insiders estimated that Xie Liyuan Gold Shop would absorb more than 20 million yuan in funds;

However, the paper gold launched by Xie Liyuan Gold Shop did not buy and sell gold in the market according to customer demand, and did not have a large amount of gold reserves. In August 1982, the international gold price rose sharply, and every two gold rose by nearly 1,500 yuan. Xie Liyuan Gold Shop was forced to cover up positions in the market, which led to inefficient capital turnover and had to go bankrupt on September 6;

After the bankruptcy of Xie Liyuan Gold Shop, it was widely rumored in the market that Xie Liyuan had a close relationship with Hang Lung Bank. Some investors holding Xie Liyuan Gold Gold Coupon went to Hang Lung Bank to ask for cash exchange, but they were refused; for a while, news about the bank's payment problems spread like wildfire. , Which triggered a run on Hang Lung Bank; within two days, the amount withdrawn was close to 100 million yuan;

  Fortunately, Hang Seng Bank, Standard Chartered Bank and Bank of China issued a statement to fully support Hang Lung Bank, and the trend of running was temporarily subdued.

The second implicated case-the previous problem has not been resolved. Two months later (November 1982), Diners Club was forced to wind up because it owed a total of 650 million Hong Kong dollars to a number of banks and could not be repaid; and Hang Lung The two directors of Dialey are also directors of Diners Club, so Hang Lung Bank’s solvency is once again questioned; after the failure of many active financial companies in the market, the market is full of turmoil.

The third case implicated-Hang Seng Bank, Standard Chartered Bank, and the Hong Kong government found through investigations that Hang Lung’s problems were far greater and greater than those disclosed; everyone discovered that Hang Lung Bank had hidden a number of bad debts, so they quickly rejected Hang Lung Bank’s A check was paid; for a time Hang Lung Bank was pushed to the cusp of the storm again, and the run happened again.

   Everbright Building

  Lei Hong is reporting to Wu Guangyao: "Boss, Brother Chuang of Hang Lung Bank, I hope to see you!"

  Wu Guangyao laughed and said: "This is a medical emergency! No, it's almost the same as saying that a dog jumps the wall in a hurry!"

  Leihong nodded and approved Wu Guangyao’s statement:

"Although Hang Lung Bank is a large-scale Chinese bank, our financial system does not need Hang Lung Bank to reinforce it. Besides, Hang Lung Bank has a big problem. debt!

  Heng Lung has two large losses that were concealed, but they were found out by the Hong Kong government and the Association of Banks;

  First, 266 million Hong Kong dollars were borrowed by former company directors and affiliates with very little mortgage. According to the laws of Xiangjiang, this is already a serious illegal act.

  Secondly, Dalai Finance, which has gone bankrupt, still owes a debt of 400 million Hong Kong dollars to Hang Lung Bank. The senior executives of Hang Lung Bank have been desperately hiding the money from shareholders, but they were still found out by professionals. "

  Hang Lung Bank was founded in 1935. It is a Chinese-owned bank with a long history and has nothing to do with Hang Lung Properties (Chen Qizong);

  In 1976, Philippine Fujianese overseas Chinese merchants Zhuang Rongkun and Zhuang Qingquan acquired 80% of the shares of Hang Lung Bank;

   Hang Lung Bank developed too fast in the 1970s and over-speculated during the real estate boom in the early 1980s, so by 1983, it was already in a quagmire.

  Wu Guangyao sneered: "You may think that they want to sell Hang Lung Bank to us, then you are wrong; the two brothers are probably thinking that we are just helping them, and they didn't even think about letting go of Hang Lung Bank."

   Leihong said incredulously: “This won’t happen! The Hong Kong government is ready to liquidate the Hang Lung Bank. The two brothers are still thinking about such a beautiful thing!”

  Wu Guangyao said: "Then wait and see, since others have come to the door, please see if you agree or not!"

  In fact, even though Hang Lung Bank has lost money and lost some funds for illegal operations, it can still be considered for winning;

  In the previous life, after the Hong Kong government accepted Hang Lung Bank, it injected 300 million Hong Kong dollars into Hang Lung Bank through the Exchange Fund.

  After operating for several years and recovering the cost, the Hong Kong government does not want to be a mother-in-law;

  Just be a nanny first, then a matchmaker;

  So, it was sold to Guoco Group for 600 million Hong Kong dollars.

  After Wu Guangyao agreed to meet the Zhuang brothers, the two came to Wu Guangyao's office within an hour.

  Leihong introduced: "Boss, this is Zhuang Rongkun, chairman of Hang Lung Bank, and this is Zhuang Qingquan."

  Leihong did not introduce Wu Guangyao. In his opinion, living on Hong Kong Island requires you to not know the Governor, but you must know your boss, Mr. Wu Guangyao;

  Not to mention that on the small Hong Kong island, Wu Guangyao is more well-known internationally than a Hong Kong Governor!

  Zhuang Rongkun hurriedly said: "I have been on Hong Kong Island for a long time. I have only seen Mr. Wu from a distance, and I have never had a chance to get to know him!"

  Wu Guangyao said with a smile: "Mr. Zhuang is humble, I am not a big man, and there is no saying that I must know me!"

After some humility, Zhuang Rongkun said urgently: "Mr. Wu, our two brothers came here today, and you must know the reason; I’ll just be straightforward, and ask Mr. Wu to see the identity of the same Chinese and help us. Hang Lung Bank has weathered the storm!"

  Wu Guangyao frowned. There are so many overseas Chinese. Can you help yourself?

  "Two of you, Hang Lung Bank, as long as the problem is not too big, I believe that not to mention Chinese banks, even British banks, are willing to give it a hand! The reason why you give up Hang Lung Bank, you two should understand the reason!"

  In the history of Hong Kong’s business, bank runs are not uncommon, and it is normal to say that they are commonplace;

  There are some runs, as long as the big banks provide guarantees, they can tide over the difficulties smoothly;

  For example, when a run occurred in Hang Seng Bank, the Wu family and China Everbright Bank provided guarantees, and the run came to an abrupt end;

  In addition to major banks’ guarantees, major banks’ equity participation can also ensure that the run goes out;

  But there are more banks, bank accounts, and financial companies, which have reached the point where they are hopeless;

  Generally, large banks will not give you a guarantee. In the end, there will only be liquidation and bankruptcy.

  The scars of the Zhuang brothers were exposed by Wu Guangyao, and their faces became rosy;

  Zhuang Rongkun said cruelly: "Mr. Wu, if China Everbright Bank and Hang Seng Bank can help Hang Lung Bank out of this crisis, are we willing to accept the shares of the two banks?"

  The Zhuang brothers thought that Wu Guangyao would be moved by this trick, and waited for Wu Guangyao to ask how many shares they could take out;

  Who knows, Wu Guangyao said directly: “If I really want to take over Hang Lung Bank, I can wait until the Hong Kong government announces that it will take over Hang Lung Bank. At that time, I can at least have a clear understanding of Hang Lung Bank’s finances.”

  Wu Guangyao’s words directly uncovered all the scars of the two of them, and the two of them were stunned for a while!

  After reacting, the two of them got angry, but cowered again;

  The person in front of you can't afford to offend!

After calming down, Zhuang Rongkun said, "Mr. Wu, the 400 million Hong Kong dollars owed to us by Diners Finance has not been fully compensated, and there is still hope to recover; while the properties invested by Hang Lung Bank are currently losing money due to the real estate downturn, but as long as the real estate is transferred Wang, you can immediately pay back your costs and even make a profit."

Wu Guangyao waved his hand and said: "Mr. Zhuang, I am not interested in what you said; I only know that Hang Seng Bank, Standard Chartered Bank, and China Banking Corporation have abandoned Hang Lung Bank one after another. This is definitely not without reason. As a Chinese, I only I would kindly remind you that if the Hong Kong government announces the liquidation of Hang Lung Bank, you will not get a penny, and there will be a lawsuit.

  If you are interested, talk to Manager Lei about a wholly-owned acquisition!

  Finally, remember that Hang Lung Bank is not an antique, and I have no determination to buy it;

  It can even be said that I am just looking for a way out for you who are fellow Chinese! "

  The Zhuang brothers were not excited this time, but calmed down;

  It seems that they have finally realized the seriousness of the matter!

  Zhuang Rongkun said: "Mr. Wu, Manager Lei, can our brothers go back and consider it?"

  Wu Guangyao said: "Whatever you do, we won't force anyone!"

After the Zhuang brothers left, Lei Hong said: "Boss, do you really want to take the Hang Lung Bank?"

Wu Guangyao said with a sigh: "I don't want to take the Hang Lung Bank, but I don't want the run to continue to evolve; if we can do something for the financial stability of Hong Kong Island, let's do something! Anyway, buy Hang Lung Bank for a little bit of business. It's not a loss-making business either!"

  Leihong nodded, and said, “At most three years, this kind of bank can turn losses into profits, and the payback will generally not exceed five years.”

  (End of this chapter)