The birth of the Hong Kong Island family

In mid-October, Jianing Group made a rare announcement to cancel the payment of "interim dividend" and replace it with 1 bonus share for 10 shares. It also prepared to issue 500 million preferred shares to raise HK$500 million.

This move immediately exposed the plight of Jianing Group, and Jianing Group's stock price immediately plummeted, falling by 30% in one day. Affected by this, the entire Hong Kong stock market also fell sharply, with the Hang Seng Index plunging 9.5%. The 800-point mark, considered a "strong line of defense", easily fell below, and the total stock market value lost 15.2 billion Hong Kong dollars.

However, it was Yida Investment, a good brother of Jianing Group, that suffered first.

On November 1, Yida Investment announced its liquidation. Company chairman Zhong Zhengwen fled from Hong Kong, leaving behind a debt of HK$21 and other guarantees of HK$1.6 billion. Because the Hong Kong government followed the "hereditary debt" jurisprudence in the "Great Qing Law" retained by British Hong Kong law, the court immediately detained Zhong Zhengwen's son and prepared to send him to Stanley Prison to serve his sentence.

As Zhong Zhengwen fled, no one in the Hong Kong business community knew that Yida and Jia Ning were twin brothers. Zhong Zhengwen and Chen Qingsong joined forces many times and fought fiercely. Yida was so bad, Jia Ning Group was not much better, even Jia Ning The group has the support of overseas consortium, but this does not mean that it does not have problems.

Therefore, the Securities Department rejected Jianing’s rights issue fund-raising plan and began a financial investigation of Jianing Group.

For a time, Jianing and Yida had problems one after another, and a big real estate friend, Land Management, was already trembling!

Land's liabilities are as high as more than 18 billion Hong Kong dollars. If it is delayed until next year, the total liabilities will be as high as more than 20 billion. This amount of liabilities far exceeds the asset value of Land.

Victoria Harbor Centre.

In an office building, Lin Zhichao and his five sons - Lin Ruihuan, Lin Ruijiang, Lin Ruihai, Lin Ruikai, Lin Ruicheng, plus his brother-in-law - Lin Benfeng, were having a meeting in the conference room.

Lin Zhichao first said: "The goal of Octopus Finance Company is to establish a bank. Of course, it is not to upgrade Octopus Finance Company to a bank. After all, this is too troublesome and time-consuming, but to prepare to acquire banks in Hong Kong. This crisis will trigger The banking crisis will be the time for us to take action. So Benfeng, you must be prepared!"

Lin Benfeng was shocked. He admired his uncle, whose ability to predict the unknown was legendary.

"Well, I have begun to attract professional talents to join us, but externally - our Octopus Finance Company wants to upgrade our bank."

Lin Zhichao nodded. There was nothing right or wrong in doing so. After all, many talents would not join if they didn't say so. If you put it this way, coupled with Lin Zhichao's influence, banking talents will be happy to join.

Octopus Financial Company has a glorious history. In its early days, it was a financial company formed by the Cheung Kong Group and the Canadian Imperial Commercial Company. Its initial business was housing mortgages and also accepting deposits (it could not open branches, but it could accept deposits privately). Later, it It also invested in the Saixi Lake real estate project.

At the beginning of this year (1982), Lin Zhichao made an 'equity adjustment' to Octopus Finance Company, and Canadian Imperial Bank of Commerce withdrew (its mission had been completed - to establish a firm foothold in Hong Kong).

The new ownership structure of Octopus Finance Company is: Cheung Kong Group, Cheung Kong Industries Group, Universal Group, Wharf Group, and Media Group. Each of these five group companies holds 10% of the shares; Victoria Harbor Investment holds 30% of the shares, and the Lin Zhichao Family Office Holds 20% of shares.

And his brother-in-law, Lin Benfeng, was also invited to serve as CEO to prepare for the subsequent acquisition of the bank. Lin Benfeng started out as a middle-level manager at HSBC. In recent years, he has served as vice president at Victoria Harbor Investment and has furthered his studies overseas, so he has won the trust of Lin Zhichao.

Lin Zhichao nodded and said: "As for the development of banks, my idea is to absorb multiple 'problem banks', conduct rectification and mergers, and eventually restructure them into Octopus Bank. Regardless of the fact that the problem banks are losing money and need capital injections to rescue them, if they are rescued by Hong Kong The government or HSBC or Standard Chartered rescued it and then renovated it, and finally they changed hands and sold it at a profit."

In previous lives, Hang Lung Bank and Overseas Trust Bank, which were taken over by the Hong Kong government, all made money from them. Therefore, as long as the loss is not too big, as long as the crisis is overcome, profits will soon be possible.

Lin Benfeng said: "As long as the financial strength is sufficient, coupled with excellent banking systems and management plans, saving a bank is not a problem. In fact, many banks have collapsed, mostly due to the collapse of their credibility, and your credibility, boss, is no less than that of HSBC, so Acquiring banks that are on the verge of bankruptcy is indeed the best way to expand."

Later, Lin Zhichao said to his five sons: "You don't need to worry about bank matters for the time being. Just do your essential work well."

"Yes, father!"

Everyone understands that his father invested five group companies in Octopus Financial Company in the hope of building a family bank, and also hoped to use this bank to unite the feelings of the five brothers.

As for the other two brothers, their careers are overseas, so of course they will not join.

Then, the meeting ended.

Lin Zhichao and Lin Benfeng stayed and held talks.

"The current capital of Octopus Finance Company is US$200 million. The fall of the Hong Kong dollar is a foregone conclusion. We will see whether it will plummet next year! So there is no need to rush into investment matters. What is more important is that the bank must be well prepared!"

"I understand that we will look for some high-level talents and let them join us."

"Well, you do your research first, and if there is any need for my intervention, let me know."

"no problem!"

Lin Benfeng knew that his brother-in-law had the potential to become a large local bank in one fell swoop if he entered the banking industry.

"Pay close attention to Hang Lung Bank. I think it must be the first to have trouble! Of course, all I need to know is Hang Lung Bank. I will have a sense of when to take action."

"OK"

Lin Benfeng has become accustomed to his boss's predictions, but problems have indeed emerged in Hang Lung.

Hutchison Whampoa's conference room.

Lin Zhichao was having a meeting with a group of senior executives, including Chief Executive Richard Richard, Business Director Xia Boyin, Political Affairs Director Peter Wei, Director Merisi and other senior executives. The dozen or so senior executives were all foreigners.

If this kind of scene is reported by the media, it will definitely have the meaning of "increasing the prestige of the Chinese people".

In fact, as early as the 1950s and 1960s, Lin Zhichao had already used Chinese as senior executives - Chris, the president of Victoria Harbor Investment at that time, was the first.

"I disagree with the acquisition of United States Cold Storage. Hutchison Whampoa's top priority is not to expand overseas, but to prepare for the privatization of its four listed companies." Lin Zhichao said directly at the beginning of the meeting.

United States Cold Storage is a public cold storage logistics company in the United States. The management, headed by Richard Xin, recently intended to acquire the company.

When Richard heard this, his face suddenly became ugly. They thought this acquisition was very beneficial to Hutchison Whampoa.

"Sir Sir Lin, with the current crisis in Hong Kong and the future uncertain, our management unanimously believes that Hutchison Whampoa should focus on overseas!"

The meaning of his words obviously had the meaning of 'threat', and the trump card was that the foreign management reached a 'consensus'.

Lin Zhichao said with a relaxed smile: "In six or seven years, many companies thought this way. But Jardine Department has always thought this way. How have the facts proved? In this environment, do not make impulsive decisions. , which is irresponsible to shareholders. Do you think I didn’t think of today? Then why is Hutchison Whampoa’s cash flow converted into U.S. dollars and deposited in the bank?”

After speaking, he glanced at the dozen or so senior officials, and soon many foreigners lowered their heads. Obviously, they were coerced by Richard Xin.

Lin Zhichao knew very well that at most, the "big three" of Richard Richard, Xia Boyin, and Peter Wei were rebellious and could be said to have "different political views."

Seeing Lin Zhichao's overwhelming momentum, Richard Lee immediately stood up and said: "Now and then, this time Britain is facing a different China, so the Hong Kong problem is more complicated. Just look at the immigration consultation offices outside and you will know that Hong Kong How great is the turmoil this time!”

Lin Zhichao said: "Some issues need to be thought about in depth! In any case, Hutchison Whampoa's current work is still focused on Hong Kong. As for overseas development, it will be a matter of sufficient cash in hand in the future."

Richard said unwillingly: "Sir Lin, the management rights of Hutchison Whampoa are in our hands. We hope that Cheung Kong Group will only be the major shareholder. We also consider all shareholders!"

Lin Zhichao looked at Richard Xin, he was simply attacking himself. It seemed that Richard Xin had grown in size in the past two years.

The "big three" of Richard Chaxin, Xia Boyin, and Wei Peter have no problem with their abilities, so Lin Zhichao has also trusted these three people in the past two years. This is why they are so swollen today.

"President Richard, I hope you will pay attention to your words. Cheung Kong Group owns 47% of Hutchison Whampoa, which is completely different from HSBC back then! To put it bluntly, Cheung Kong Group can increase its equity holdings to 51%, or even privatize it immediately. Therefore, we have absolute control, and you are just the managers I invited. More importantly, Hutchison Whampoa’s shareholders must be more supportive of me. If not, you can try."

He is not Li Jiacheng. He needs to wait for Hutchison Whampoa to pay dividends before increasing his holdings.

Richard's face turned rosy immediately and he immediately relented and said: "I'm sorry, Sir Lin, I apologize for my rashness just now!"

Lin Zhichao nodded and said: "I understand everyone's thoughts, but my ability to be in the business world for more than 30 years has never depended on luck, but on thinking. So the more we are in this situation, the more we need to calm down and think. Don’t make impulsive decisions. Currently, Hutchison Whampoa has sufficient cash flow to privatize its four listed companies. This will be the focus of our work next year.”

Hutchison Whampoa's current cash flow has reached more than 300 million US dollars, which is almost more than 2 billion Hong Kong dollars. Coupled with bank loans, it is completely enough to privatize four listed companies.

Importantly, Hutchison Whampoa's debt ratio is extremely low!

After the meeting.

Richard Chaxin, Xia Boyin, and Wei Peter saw that Lin Zhichao had left Hutchison Building, so they dared to get together to discuss the matter.

"What should we do? Do we have the strength to fight back?" Xia Boyin said sadly.

Richard shook his head and said: "Looking at Lin Zhichao's performance today, if we don't listen to him, we would rather privatize Hutchison Whampoa than just be the major shareholder."

Xia Boyin said: "So, Cheung Kong Group wants to take control of Hutchison Whampoa? In this case, we have to obey the orders of Cheung Kong Holdings. Why? Hutchison Whampoa is originally a company managed by us British , Lin Zhichao just relied on his relationship with HSBC to win it, and now he wants to burn bridges?"

The three of them then fell into silence, thinking about countermeasures.

Later, Peter Wei said: "I have a way, which can at least prevent Cheung Kong Group and Lin Zhichao from taking power in Hutchison Whampoa!"

"any solution?"

Peter Wei, as the political affairs director, is in charge of human resources and other tasks. He showed a hint of sternness and said: "In recent years, Lin Zhichao has been showing favor to the Chinese senior staff of Hutchison Whampoa and its affiliated companies. We only need to exclude these people, otherwise They have joined forces with Cheung Kong Group and asked them to resign. In this way, Cheung Kong Group and Lin Zhichao will have to continue to rely on us and not dare to fall out with us!"

Richard Xin and Xia Boyin's eyes lit up, this was indeed a solution.

"That's it!"

"Give Lin Zhichao some color!"

The three of them lost face in today's high-level meeting and did not dare to confront Lin Zhichao head-on. However, they thought of using this small trick and finally felt that they had regained their place.

The other side.

Lin Zhichao and Mai Lisi also talked on the way back.

Meris said: "Boss, now that everyone has different political opinions, I'm afraid it will be difficult to work together!"

After he joined the Cheung Kong Group, he was highly valued, so he was still a director of Hutchison Whampoa.

Equivalently, he is Lin Zhichao's chess piece to break into Hutchison Whampoa.

Lin Zhichao said: "It's not that we have political differences, it's that they are too short-sighted! I originally had plans to invest overseas, but they shouldn't bring it up at this time."

Meris nodded, and then said: "Then what should we do now?"

Lin Zhichao said: "Please help me make an appointment with Ma Shimin in Singapore and say that I want to discuss the acquisition of his business!"

Merlis asked curiously: "The boss wants Ma Shimin to manage Hutchison Whampoa?"

Lin Zhichao nodded and said: "Ma Shimin has a perseverance and perseverance, which I prefer. If nothing else, Richard Richard and others will completely fall out with us, and we are expected to squeeze those senior Chinese employees. "

Merlis could not help but admire his boss, but also felt sad for Richard and others, who could not see the situation clearly at all.

Although Cheung Kong Group does not hold an absolute shareholding in Hutchison Whampoa, it still holds 47%. More importantly, Cheung Kong has cash flow of nearly 10 billion Hong Kong dollars and can increase its stake in Hutchison Whampoa at any time, or even privatize it.

Of course, privatization is not necessary. Even if the shareholding is increased to 51% now, since the stock price has not been high in the past six months, if it is privatized at the highest price, shareholders will not hand over their bargaining chips. In this way, all acquisition regulations can be avoided. (End of chapter)