I Want To Be a Rich Man on Hong Kong Island

Since 1983, Hong Kong Island has started to "wash the sand with big waves", and news of a company's liquidation comes from time to time.

Carrian Group was officially liquidated in January, and Chen Qingsong and others were also accused of colluding with others to blackmail shareholders and creditors;

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

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

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

In the end, the police also received evidence from an anonymous person.

The liquidation of Carrian Group and news that the Sino-British negotiations were not going well again caused panic in Hong Kong Island;

In this social situation, the unlucky one must be the banking industry;

This is the fact that many financial companies began to liquidate one after another, and for a while there was another bank run on Hong Kong Island.

For banks, after depositors save money, the bank needs to use it for lending, and it is impossible to use all of it as working capital;

That is to say, the depositor's money is always greater than the bank's liquidity;

Therefore, no matter which bank run occurs, it may be on the verge of bankruptcy.

The only difference is that there will be no large-scale bank runs for banks with good reputation;

In addition, such banks generally have liquidity of more than 25% of deposits;

Therefore, the risk of a reputable bank is minimal!

So once there is a bank run caused by social panic, the most unlucky thing is the "finance company" on Hong Kong Island;

In Hong Kong Island, banks are not the only ones that can open cabinets to deposit money, and financial companies can also absorb depositor funds;

However, 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 banking license.

Just because these financial companies are not strong enough, most of the deposits have incurred losses in real estate developers;

Therefore, once a liquidation event occurs, the finance company has only one way to liquidate.

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

The founder of Carnival Real Estate happened to die in February, and the financial crisis erupted after the loss of the head;

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

.....

The so-called "big waves wash the sand", an unprecedented crisis hit, 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 has also brought a severe test to many companies at the same time, to see who is the real material and who is just fake;

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 wait for the dawn in peace.

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

In the end, like a soap bubble, it will burst with a poke.

At the same time, the damage caused by the storm also made the government understand the current legal system,

It is indeed impossible to cope with the rapid development of the industrial and commercial market and the securities market;

The Hong Kong government, belatedly, began to make up for it and start researching to formulate a suitable bill again!

.........

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 losses, intending to withdraw all their deposits in Hang Lung Bank;

For this reason, even if you lose years of regular interest, you will not hesitate.

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

Some media jumped out one after another, predicting that some banks in Xiangjiang will inevitably repeat the fate of Liao Chongxing Bank and Hang Seng Bank being run on.

This view is actually fine, small banks have been relying on high interest rates to attract depositors;

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

If the bank fails, it is extremely easy to trigger a run.

Once a run breaks out, the bank will not die from the previous losses, but will be immediately crushed by the run.

After all, banks absorb depositors' deposits and must lend them out;

Otherwise, how can depositors be paid interest?

Once a bank run occurs, it is impossible for the bank to withdraw cash in a short time;

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

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

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

At this time, all depositors themselves are powder kegs, and as long as there is a little news, they will be set on fire.

According to the scale of Hang Lung Bank, it already has a certain ability to resist risks;

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

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

The first implicated case - Xie Liyuan Gold Shop was founded in the sixth year of Tongzhi in the Qing Dynasty (1867). In the 1970s, the price of gold rose sharply. The price of gold buys and sells gold. After it was launched, it was very popular among Hong Kong citizens. Industry insiders estimated that Xie Liyuan Gold Store absorbed more than 20 million yuan of funds through this;

However, the paper gold launched by Xie Liyuan Gold Shop did not buy and sell gold in the market according to the needs of customers, nor did it have a large amount of gold reserves; The shop was forced to cover its positions in the market, resulting in poor capital turnover, and had to close down on September 6;

After the collapse of Xie Liyuan Gold Shop, there were rumors in the market that Xie Liyuan had a close relationship with Hang Lung Bank. Some investors who held Xie Liyuan Gold Shop gold coupons went to Hang Lung Bank to ask for cash exchange, but were rejected; for a while, news about the bank’s payment problems spread like wildfire. , which triggered a run on Hang Lung Bank; within two days, nearly 100 million yuan was withdrawn;

Fortunately, Hang Seng Bank, Standard Chartered Bank and Bank of China issued statements to fully support Hang Lung Bank, and the run on the bank temporarily subsided.

The second implicated case - the previous problem did not subside. Two months later (November 1982), Diners Finance Company was forced to liquidate because it owed a total of 650 million Hong Kong dollars to many banks and could not repay; while Hang Lung The two directors of Diners Club are also directors of Diners Club, so the solvency of Hang Lung Bank was once again questioned; after that, many active financial companies in the market closed down one after another, and the market was in a state of panic.

The third implicated case - Hang Seng Bank, Standard Chartered Bank, and the Hong Kong government found through investigation that Hang Lung's problems were far more and bigger than disclosed; everyone found that Hang Lung Bank had hidden a batch of bad debts, so they quickly rejected Hang Lung Bank's offer A check payment; for a while Hang Lung Bank was once again pushed to the forefront, and the liquidation incident happened again.

.........

Everbright Building

Lei Hong was reporting the situation to Wu Guangyao: "Boss, Brother Zhuang from Hang Lung Bank, hope to see you!"

Wu Guangyao laughed and said, "This is a case of rushing to the doctor in a hurry! No, it's almost like a dog jumping over the wall in a hurry!"

Lei Hong nodded and approved Wu Guangyao's statement:

"Although Hang Lung Bank is a Chinese-funded bank with a good scale, our financial system does not need Hang Lung Bank to reinforce it. Besides, Hang Lung Bank has a big problem. If we take over, we will inevitably bear a large sum of money." debt!

Hang Lung had 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 was borrowed by former company directors and affiliated organizations with little collateral. According to the laws of Hong Kong, this is already a serious illegal act.

The second is that Diners Finance, which has gone bankrupt, still owes Hang Lung Bank 400 million Hong Kong dollars in debt. The senior management of Hang Lung Bank has been trying their best to hide this money from shareholders, but it was still found out by professionals. "

Founded in 1935, Hang Lung Bank is a Chinese bank with a long history and has no relationship with Hang Lung Properties (Chen Qizong);

In 1976, Zhuang Rongkun and Zhuang Qingquan, overseas Chinese businessmen from Fujian, Philippines, acquired 80% of the shares of Hang Lung Bank;

Hang Lung Bank developed too fast in the 1970s, and speculated excessively in the real estate boom in the early 1980s, so by 1983, it was already in a quagmire and could not extricate itself.

Wu Guangyao sneered: "You may think that they want to sell Hang Lung Bank to us, then you are wrong; the two brothers probably think that we are just helping out, and they have no intention of letting go of Hang Lung Bank."

Lei Hong said incredulously: "This is impossible! The Hong Kong government is already preparing to liquidate Hang Lung Bank, and these two brothers are still thinking about such a beautiful thing!"

Wu Guangyao said: "Let's wait and see, since others have come to ask for it, we will see you whether you agree or not!"

In fact, although Hang Lung Bank has lost money and lost some funds from illegal operations, it can still be considered;

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 no longer wants to be a mother-in-law;

Just be a nanny first, and then a matchmaker;

Therefore, it was sold to Guoco Group at a price of 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.

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

Lei Hong did not introduce Wu Guangyao. In his opinion, living on Hong Kong Island, you don’t need to know the Governor of Hong Kong, but you must know your boss, Mr. Wu Guangyao;

Not to mention the small Hong Kong Island, Wu Guangyao's popularity in the entire world is much greater than that of a Hong Kong Governor!

Zhuang Rongkun said quickly: "I have admired him for a long time, and I have been in Hong Kong Island for several years. I just saw Mr. Wu from a distance, and I have never had the chance to really know him!"

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

After some humility, Zhuang Rongkun said urgently: "Mr. Wu, we two brothers came here today, and you must know the reason; I will be straightforward, and I ask Mr. Wu to see that we are both Chinese and help us Hang Lung Bank through the storm!"

Wu Guangyao frowned, there are so many overseas Chinese, can he help them?

"You two, if the problem of Hang Lung Bank is not too big, I believe not to mention the Chinese-funded banks, even the British-funded banks are willing to help! The reason why everyone gave up Hang Lung Bank, you two should understand the reason!"

In the commercial history of Xiangjiang, bank runs are not uncommon, and it is normal to say that they are commonplace;

In some bank runs, as long as there is a guarantee from a big bank, you can get through the crisis safely;

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

In addition to the big bank guarantee, the big bank's shareholding can also ensure that the run is extinguished;

But there are more banks, bank accounts, and financial companies, which have reached the point of no cure;

Generally, big banks will not give you a guarantee, and in the end there is only liquidation and bankruptcy.

The Zhuang brothers were exposed by Wu Guangyao's scars, and their faces turned rosy;

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

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

Unexpectedly, Wu Guangyao said directly: "If I am really interested in Hang Lung Bank, I can definitely take over after the Hong Kong government announces to 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 the scars of the two of them, and they were stunned for a moment!

After reacting, the two wanted to get angry, but flinched again;

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

After Zhuang Rongkun calmed down, he said, "Mr. Wu, not all of the 400 million Hong Kong dollars owed by Diners Finance to us has been lost, and there is still hope to recover; and the property invested by Hang Lung Bank, although it is currently losing money due to the downturn in real estate, as long as the real estate transfer If it is prosperous, it can immediately pay back its capital, and even make a profit.”

Wu Guangyao waved his hand and said, "Mr. Zhuang, I'm not interested in what you said; all I know is that Hang Seng Bank, Standard Chartered Bank, and Huaxia Bank have all abandoned Hang Lung Bank. May I kindly remind you that if the Hong Kong government declares Hang Lung Bank to be liquidated, you will not get any money, and you will still have to sue.

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

Finally, please 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 fellow Chinese compatriots! "

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

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

Zhuang Rongkun said: "Mr. Wu, Manager Lei, can we brothers go back and think about it?"

Wu Guangyao said: "You can do whatever you want, we won't force anyone!"

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

Wu Guangyao said with a sigh: "I don't want to take down Hang Lung Bank, but I just don't want the bank 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 and operate it a little bit. It’s not going to be a loss-making business!”

Lei Hong nodded, and said: "At most three years, this kind of bank can turn losses into profits, and it usually takes less than five years to recover its capital."

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