The birth of the Hong Kong Island family

On September 24 (Saturday), the communiqué of the fourth round of negotiations issued by Huaying omitted the commonly used words "beneficial and constructive".

On that day, almost all foreign businessmen refused to accept Hong Kong dollars. The Hong Kong dollar, which had shown signs of stabilizing, fell rapidly and immediately fell to the psychological defense line of '9'.

Since he already had "great righteousness", Lin Zhichao arranged for various "deposit banks" to exchange all the US dollars of his affiliated companies into Hong Kong dollars early in the morning. Under the interference of such powerful forces, the exchange rate of the US dollar against the Hong Kong dollar will definitely not reach the peak of '9.8' in the previous life, or even reach '9.5'.

The reason why Lin Zhichao did this was to make a fortune. But at this time, he has already taken the lead. After all, a week in advance, he was an important force in stabilizing the Hong Kong dollar, and also claimed that his companies would no longer hold U.S. dollars.

That morning.

Zhang Guiji is a middle-class businessman who is engaged in the wholesale business of aquatic products. Of course, it is inevitable that he has a social background.

Today, he hurried to the head office of Hang Seng Bank, the deposit bank, and prepared to exchange all the more than 5 million Hong Kong dollars in deposits in his account into US dollars. Because he heard people say that the Hong Kong dollar will soon be worthless and Hong Kong will use RMB for circulation, so he came to Hang Seng Bank anxiously early in the morning.

Traveling with him was his wife Li Yuanxiu, who was also anxious, fearing that her wealth would be reduced to nothing overnight.

"Master, why do you think this Hong Kong dollar suddenly became worthless? The Hong Kong dollar has appreciated in the past few years, and 1 US dollar can only be exchanged for just over 5 Hong Kong dollars!"

"In the past few years, the US dollar was depreciating, but now the US dollar is appreciating, coupled with the crazy depreciation of the Hong Kong dollar. I don't know what the exchange rate is today. You line up and I'll check the exchange rate!"

"Okay, I promise to stand in line and no one can jump in line!"

Li Yuanxiu said forcefully, as if he was warning the people around him.

Someone said: "Don't look, it's already out, 1 US dollar is exchanged for 9.2 Hong Kong dollars, and it is said that it will fall even further. Now many companies and merchants no longer accept Hong Kong dollars!"

Everyone was in an uproar!

"If we don't accept Hong Kong dollars, won't the Hong Kong dollars in our hands become waste paper?"

"That's right. We have worked hard for decades, but our wealth will be wiped out overnight?"

The mood at the scene was quickly ignited, and everyone was anxiously waiting to exchange foreign currency.

In fact, many banks have limits on foreign currency exchange, so the morning is destined to be used up quickly.

Finally it was Zhang Guiji's turn. He came to the counter of Hang Seng Bank and his first sentence was: "Miss, I want to exchange U.S. dollars! Convert all the Hong Kong dollars in my account into U.S. dollars!"

The female bank teller said kindly: "Sir, in order to avoid unnecessary losses, I suggest you make this decision carefully! Recently, large companies such as Cheung Kong Group and Hutchison Whampoa have announced that they will not hold US dollars but Hong Kong dollars. All their stores will They charge Hong Kong dollars.”

Zhang Guiji couldn't listen and said: "Don't mention this, I am so angry when I mention it. If I hadn't listened to them, maybe I would have held US dollars instead of Hong Kong dollars. Please hurry up and exchange it, you don't know US dollars Isn’t it enough?”

The female teller could only say helplessly: "Don't worry, we have plenty of US dollars today!"

Before going to work in the morning, they had been notified that US dollars were relatively abundant today, and some companies were selling US dollars to stabilize the Hong Kong dollar. Everyone in the industry knows that these companies are basically Sir Lin-related companies.

"That's good, hurry up and redeem it!" Zhang Guiji said anxiously.

Although he has no plans to immigrate because he has lived in Hong Kong for so long, his children are preparing to immigrate. Exchanging U.S. dollars is always cost-effective and useful!

"Okay, your account totals 5.32 million Hong Kong dollars. According to the current exchange rate of 9.2, it can only be exchanged for 578,000 US dollars. We will also charge a commission."

Soon, Zhang Guiji breathed a sigh of relief!

People like him abound today. Many people went to banks and foreign exchange shops to exchange U.S. dollars, so that in the morning, most stores were "drying out U.S. dollars."

For a time, many citizens felt that a storm was coming!

“The Hong Kong dollar is going to become toilet paper, what should we do?”

"Now that we have a solution, go to the supermarket and buy some ready-made products!"

"Yeah, why didn't I think of it! Buy rice, buy cans, and buy daily necessities!"

"Hurry up, I heard that many supermarkets have already been visited by many people!"

In the afternoon, a large number of citizens flocked to supermarkets to buy canned goods, food, dry goods, household items, etc. Everything that could be saved was sold out.

At this time, the entire Hong Kong financial system was in danger.

Faced with the serious crisis of possible runs on the Hong Kong dollar, the Hong Kong government began to consider reforming the monetary system in order to save the Hong Kong dollar's plummeting exchange rate. On September 25 (Sunday), the Hong Kong government issued an announcement announcing that the government was "actively formulating" a new currency stabilization plan, and that the full convertibility of the Hong Kong dollar is the basic prerequisite for any currency stabilization plan. The announcement also stated that this means major reforms will be made to the "currency issuance mechanism" in order to "produce an exchange rate that more accurately reflects the basic economic strength."

Announcement and affirmation that it is illegal for anyone in Hong Kong to request payment in foreign currency during local transactions.

In line with the government's measures, the Association of Banks announced on September 26 that it would increase deposit interest rates by 3% starting from the next day. The two note-issuing banks also increased their prime interest rates by 3% to support the plummeting Hong Kong dollar.

The two announcements played a role in stabilizing people's hearts. On September 26 (Monday), the exchange rate of the Hong Kong dollar against the US dollar rebounded to HK$8.20 per US dollar.

For a time, the speculation activities of speculators were severely hit!

Of course, those who had just converted to US dollars were immediately upset.

For example, Zhang Guiji, who is engaged in the aquatic products business, was cursing God and mother at this time: "What a fool. If you don't interfere in the morning, you won't interfere in the later. I just exchanged it for one day, and then I came out to interfere. My money!"

At this time, he was no longer in the mood to do business!

Wife Li Yuanxiu asked quickly: "How much have we lost?"

Zhang Guiji said: "600,000 Hong Kong dollars!"

Li Yuanxiu almost fainted and said, "Damn it, I can't make any business this year!"

This is because the aquatic products business of the couple is large enough, and Zhang Guiji has a social background, so the aquatic products business goes smoothly. In the past year or so, due to the bleak real estate and financial business, their business has naturally decreased by a quarter.

Zhang Guiji said: "Don't panic! Don't panic! The Hong Kong dollar will still depreciate!"

Li Yuanxiu has ignited hope!

same day.

The exchange rate of the US dollar against the Hong Kong dollar has stabilized at around 8.2. The speculation and speculation in the market have almost stopped, and the Hong Kong dollar crisis has been temporarily alleviated.

The next day.

"boss"

Lin Benfeng, the president of Octopus Finance Company, found Lin Zhichao.

Lin Zhichao said: "Is there any news about Hang Lung Bank?"

Octopus Finance Company has been studying Hang Lung Bank, or it has been preparing to obtain a banking license. Lin Benfeng was not only Lin Zhichao's brother-in-law, but also a professional financial talent, so he won Lin Zhichao's trust.

Lin Benfeng nodded and said: "The latest news is that Standard Chartered rejected a check worth 50 million Hong Kong dollars issued by Hang Lung Bank for cash withdrawal. Therefore, some well-informed market participants have asked Hang Lung Bank to withdraw their deposits."

Standard Chartered Bank, a note-issuing bank, announced a bailout for Hang Lung Bank last year. This kind of bailout is not unconditional. Standard Chartered Bank will only agree to the bailout if it believes that Hang Lung Bank's assets are greater than its liabilities.

Now that it refuses the check issued by Hang Lung Bank, it is obvious that Standard Chartered Bank believes that Hang Lung Bank is already insolvent.

After thinking for a while, Lin Zhichao said: "In the afternoon, you can make an appointment with Zhuang Rongkun and Zhuang Qingquan for me. We will take down Hang Lung Bank as soon as possible. If not, once the Hong Kong government or the note-issuing bank intervenes, there will be chaos."

If the Hong Kong government is allowed to intervene, it will definitely not be convenient to directly transfer Hang Lung Bank to Octopus Finance Company, because this would be suspected of collusion between government and business. According to Lin Zhichao’s understanding, the Hong Kong government should soon intervene in Hang Lung Bank to avoid the domino effect in Hong Kong’s financial market.

Lin Benfeng said: "Okay"

After saying that, he left Lin Zhichao's office. Although Octopus is a financial company, it has assets of US$200 million. As for the acquisition of Hang Lung Bank, of course there is no need to spend money.

Hang Lung Bank is a company with a long history, established in 1935 and registered as Hang Lung Bank Limited in 1965. In 1976, the ‘Philippine Unified Institution (Hong Kong listed company)’, headed by Fujianese overseas Chinese Zhuang Rongkun and Zhuang Qingquan, spent HK$50 million to acquire 80% of the equity of Hang Lung Bank.

After crazy investment in the late 1970s and early 1980s, Hang Lung Bank has become a medium-sized bank with 28 branches.

It is precisely because of overheated investment that it has naturally led to today's insolvency situation.

In the morning of the same day, Lin Zhichao heard another news. Simon Keswick became the new chief executive of Jardine Matheson, while Newbikin received a compensation of 1 million pounds and only served as a director of Jardine Matheson. As for Bao Fuda, he resigned and was eliminated. After all, Land Holdings has Today, Bao Fuda takes the most credit.

For a moment, Lin Zhichao smiled, it was time to launch a general attack!

The other side.

Zhuang Rongkun and Zhuang Qingquan learned that Lin Zhichao wanted to talk to them, and they immediately started discussing it in the office.

"Could it be that Lin Zhichao likes Hang Lung Bank and is willing to acquire it?" Zhuang Rongkun could easily guess the reason.

Zhuang Qingquan was overjoyed and said: "If this is true, that is a good thing. With Lin Zhichao coming out, the run on Hang Lung Bank can be terminated soon. After all, his credibility is comparable to that of HSBC, and Hong Kong people will definitely trust him."

Like the shadow of a famous tree, Lin Chi-chao's influence in Hong Kong is absolutely huge.

Only Zhuang Rongkun frowned and said: "I'm afraid it won't be that simple! We are not very familiar with him. If he bails out Hang Lung Bank now, I'm afraid he won't pay a high price!"

Zhuang Qingquan said: "As long as Hang Lung Bank does not collapse, the price will be lower. If it is seized by the court, we will not get a penny."

The two of them knew the situation of Hang Lung Bank and said it was insolvent. To put it bluntly, some directors lent about HK$300 million without collateral. In addition to this, there are investments that generate large losses.

If the Hong Kong government and courts come to investigate and seize it, thank God if they are not held accountable. How can we still give them money?

"Let's see in the afternoon!"

In the afternoon, Lin Zhichao personally brought Lin Benfeng and other teams from the ‘Octopus Finance Company’ to the headquarters of Hang Lung Bank.

Octopus Financial Company is said to be a financial company, but in fact the management team is comparable to that of a bank, with a very strong team. Prepare for today, to step into the bank.

"Sir Lin"

"Two Zhuangsheng"

The two parties greeted each other and sat directly in the conference room to talk.

Lin Zhichao said directly: "You two, let's get straight to the point! The Hong Kong dollar crisis broke out in Hong Kong, and Hang Lung Bank broke out at this time. Once it collapses, it will definitely have a domino effect on the entire Hong Kong financial market. And I have always Since then, I have also had a dream of becoming a banker, and I just planned to take over Hang Lung Bank to prevent its collapse."

Zhuang Rongkun did not respond, but asked: "How much money does Lin Sheng plan to give?"

Lin Zhichao laughed and said: "1 Hong Kong dollar"

Zhuang Rongkun stood up in surprise and said, "Is Mr. Lin joking?"

Lin Zhichao smiled and said nothing.

At this time, Lin Benfeng took over the negotiation and said: "You heard it right, Hang Lung Bank is only worth a symbolic 1 Hong Kong dollar. The reason is that, as far as we know, the Hong Kong Legislative Council has passed the 'First Reading Ordinance' - Breaking the non-intervention policy of the previous two financial secretaries, and directly intervening in the Hang Lung Bank incident. In other words, the Hong Kong government intends to directly take over Hang Lung Bank, rather than the note-issuing bank taking over Hang Lung Bank."

Zhuang Rongkun and Zhuang Qingquan were shocked. Although the Banking Regulatory Office and the Bankers Association had already entered Hang Lung Bank at this time, they did not expect that things had happened so quickly.

"Isn't this just the first reading? Things are still uncertain!"

The Legislative Council has 'three readings' and all must be passed before legislation can be formally enacted.

Lin Zhichao smiled and said: "The second reading is tonight, and the third reading is expected to be around tomorrow afternoon!"

He has many "friends" in the Legislative Council, so he is naturally well-informed!

Zhuang Rongkun couldn't sit still anymore and said, "Mr. Lin, can you confirm the authenticity of this matter?"

Lin Zhichao said:

"First, if I use this method to annex a 'burden' that is not worth a penny in the first place, do you think I will make a joke about it? Second, once the Hong Kong government takes over Hang Lung Bank, it will also suspend the 'unified institution' , liquidation, I am here to help you avoid cascading effects."

"Of course, it is precisely because I want to enter the banking industry that I am willing to take over Hang Lung Bank. However, if you agree, you have to give us bank information today, and we also need to find out the specific situation of Hang Lung Bank."

Zhuang Rongkun and Zhuang Qingquan were a little overwhelmed at first, but they soon broke out in a cold sweat. If the Hong Kong government takes over Hang Lung Bank, it will definitely hold the major shareholder, the Philippine Unified Institutions accountable.

So, this Hong Kong company, which was listed in 1972, cannot escape being liquidated.

For a long time, Zhuang Rongkun slumped in his chair and said honestly: "Sir Lin, to tell you the truth, Hang Lung Bank has a huge problem. The total loss is more than 300 million Hong Kong dollars, of which more than 200 million were lent by our directors. Not yet.”

Lin Zhichao said cheerfully: "As long as the information is provided honestly, I will not pursue this issue. I can postpone the pursuit of the funds borrowed by the unified agency."

In the previous life, when the Hong Kong government took over Hang Lung Bank, it was natural that it immediately chased away its debts. And the unified institution borrows the most, so it will naturally suspend trading and liquidate you immediately.

As a result, Zhuang Rongkun and Zhuang Qingquan will naturally suffer huge losses.

But now Lin Zhishan will not do this. Real estate will pick up after all, and directors such as Zhuang Rongkun and Zhuang Qingquan can afford to pay back in the future. As for the bank, it may still lose 100 million to 200 million, but in comparison, if it takes over from the Hong Kong government, it will definitely make several hundred million from the Hong Kong government.

What's more, if Lin Zhichao gets a banking license earlier, he can show off his talents.

So a few hundred million Hong Kong dollars is nothing. You can make money by just speculating in foreign exchange.

Zhuang Rongkun and Zhuang Qingquan quickly decided to let the team from Octopus Finance Company check out relevant information after stationed in Hang Lung.

They now understand that only if Lin Zhichao takes over Hang Lung Bank, the unified institution they hold can be saved. If the Hong Kong government had taken over after the issuance of banknotes, the unified organization would not have been able to escape the fate of liquidation.