Reborn as a tycoon in Hong Kong
Chapter 464 HSBC comes to cooperate (Part 2)
Hearing this, Lin Baicheng did not express his agreement or rejection, but said: "Shen Daban, are you sure that HSBC has underestimated Hutchison Whampoa's stock price? The market doesn't think so now. If the stock price continues to fall, even if I don't reduce my holdings of stocks, , unless you keep buying, the stock price is entirely likely to continue to fall.”
"HSBC's internal analysis is correct. As long as Lin Sheng promises not to reduce his shareholding, HSBC will be able to take over any number of shares sold by retail investors."
Shen Porridge said aloud that the reason why HSBC wanted to invest in Hutchison Whampoa stock, and also decided to spend a lot of money, and even contacted Lin Baicheng for this, was of course because HSBC had HSBC's judgment.
The Yum Fund of Yum Securities uses leverage to do long gold futures. The funds are borrowed from HSBC. Therefore, HSBC knows that the funds of Yum Fund are long gold futures and pays attention to it from time to time. After all, this fund is not small. Naturally, it knows that the international gold price has risen recently. As a result, Yum! Fund made a lot of money.
This is still a small matter. The problem is that Yum Fund’s funds are long gold futures, and Hutchison Whampoa has 200 million US dollars given to other companies for investment. After internal discussions at HSBC, it is believed that if not all of this funds will be used for gold futures, at least part of it will be used. Use it to make gold futures, and also go long gold futures.
Hutchison Whampoa's funds are short gold futures, and Yum Fund's funds are long gold futures. HSBC internally does not think this is the case, because one side will always lose money, which will not be of much benefit to Lin Baicheng, and the investment direction of both sides can only be the same.
From a time perspective, the funds for long gold futures have already made profits, and they have made a lot of profits.
Hutchison Whampoa's investment has the potential to generate huge profits, but Hutchison Whampoa's stock price has recently fallen during a correction when the overall stock market is rising. Therefore, HSBC Securities believes that it can take advantage of the correction in Hutchison Whampoa's stock price to buy low.
Even if Hutchison Whampoa's stock price falls, the company's market value is still nearly 19 billion Hong Kong dollars, so HSBC can invest a lot of money. After internal discussions, HSBC decided to invest 2 billion Hong Kong dollars.
With such a large amount of capital invested, it is of course impossible to buy stocks directly from the secondary market. That would only drive up Hutchison Whampoa's stock price, and the cost price of HSBC's entry would be a bit high, which would affect the final profit.
In order to be able to buy stocks at a lower price, and also to make this investment smooth, Shen Zhou decided to talk to Lin Baicheng in person. Only Lin Baicheng and Chairman Huang could cooperate to make things smoother.
"So, Mr. Shen, if I agree to cooperate with HSBC, what will be the benefits?"
Lin Baicheng asked in a deep voice. He would never do anything that was not beneficial. He would not help HSBC in vain just to maintain a relationship with HSBC.
"HSBC is willing to lend 1 billion Hong Kong dollars to Lin Sheng's company as a loan. As long as there is a corresponding mortgage, the interest is only 5% per year and the loan period is three years. What do you think, Lin Sheng?"
HSBC was still very sincere and asked Lin Baicheng to help without empty words.
Lin Baicheng's normal loan from HSBC usually has an annual interest of 8%. This means that HSBC has waived the 3% annual interest this time, which is 9% for three years. The interest of 9% on 1 billion Hong Kong dollars is 90 million Hong Kong dollars, which is considered to be given to Lin Baicheng. The benefits are paid for.
Of course, this 90 million Hong Kong dollars is not cash, and HSBC actually has no losses. The premise is that Lin Baicheng's company needs a loan, otherwise it makes no sense.
Of course Lin Baicheng's companies need loans, especially semiconductor companies. Let alone 1 billion Hong Kong dollars, 1 billion US dollars for Lin Baicheng will not be too much.
"Daban Shen, I feel the sincerity of HSBC, but I can't make a decision on this matter right away. I will give you an answer around this time tomorrow. What do you think?"
Lin Baicheng did not refuse, which was not harmful to him. Even if he agreed to HSBC, some retail investors might be washed out of Hutchison Whampoa stock and suffer losses in the future, but this had nothing to do with Lin Baicheng. His own interests were the most important. .
"Of course there is no problem, then I will wait for Lin Sheng's good news about you."
Shen Porridge knew that it was impossible for Lin Baicheng to make a decision immediately. It was a good thing for him that he was not rejected immediately, indicating that there was a lot of possibility for cooperation between the two parties.
The two chatted for a few more words and then hung up the phone.
That night, Lin Baicheng discussed the matter with Maori Haruko, and he actually had an idea about it.
After Mao Li Qingzi learned that Lin Baicheng had decided to agree to Shen Zhou, she didn't say anything. She just suggested that Lin Baicheng ask for more benefits.
At about six o'clock the next night, Lin Baicheng contacted Shen Porridge.
"Taban Shen, there is no problem in asking me to cooperate with HSBC, but I have a few conditions, please listen to them first."
"First of all, no matter how you operate, Hutchison Whampoa's stock price cannot fall below the price of HK$40. Once it is revealed, don't blame me for not cooperating with you. This is a prerequisite. I cannot let Hutchison Whampoa's stock price fall too much."
"Furthermore, I can cooperate with HSBC, but you can't always ask me to cooperate with you. I will cooperate with you three times at most, and the condition for my cooperation with you is that it cannot damage my reputation and the interests of Hutchison Whampoa."
"Finally, there is no problem with the loan's annual interest rate of 5% and the loan period of three years, but HK$1 billion is too little. I want a loan of HK$2 billion."
"Sheng Lin, Hutchison Whampoa's current stock price is only about HK$47, and the lowest price of HK$40 is less than a 20% drop. And is the number of three times of cooperation too few? In addition, 2 billion Hong Kong dollars in loan funds , this is too much, and the profit that HSBC can make from this operation may not be that much!"
After listening to Lin Baicheng's words, Shen Porridge certainly couldn't agree without thinking and strive for favorable conditions.
Afterwards, Lin Baicheng and Shen Porridge discussed over the phone, but the negotiation failed.
Lin Baicheng made a slight concession. Hutchison Whampoa's stock price can fall below the price of HK$40, but at most it can only fluctuate at this price and cannot fall any further.
Otherwise, Lin Baicheng did not make any concessions, because the two had not reached a negotiated relationship. Lin Baicheng said that he would talk to Liao Siren about this matter. At that time, Liao Siren would negotiate with HSBC. After the negotiations came to a result, he would make the final decision. Make a decision.
Shen Porridge did not refuse. Since the negotiation could not be concluded immediately, then some negotiation was necessary. If we can talk about the level that HSBC can accept, then of course it would be best and the cooperation will continue. But if it is not to the extent that HSBC can accept, then needless to say, cooperation cannot proceed, and HSBC's losses will be limited, which is nothing more than some manpower.
In the same way, if the negotiation is handed over to Liao Siren, it will be good for Lin Baicheng if the negotiation can be successful, and there will be no harm to Lin Baicheng if the negotiation is not successful. Anyway, he has no loss anyway.
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