Reborn Tycoon Rise

Before the real estate crisis, Hang Lung Bank, as the leader among Chinese-owned banks in Hong Kong, had a total market capitalization of HK$1.5 billion and controlled funds of more than HK$10 billion. In the field of Chinese-owned banks, the only one that could surpass it was controlled by HSBC. Hang Seng Bank and Bank of East Asia.

After the real estate crisis broke out, although Hang Lung Bank's business was also affected, its foundation remained and it was still able to persist until the Xie Liyuan Gold Shop collapsed and Hang Lung was innocently shot.

In fact, during this crisis, every medium-sized bank in Hong Kong is facing losses. However, banks are the core industry in the financial field and have countless internal financial talents. As long as there are no major problems exposed, then the internal elites will With operation, it is enough to survive this cold winter.

However, a run happened on Hang Lung. This was a domino effect, and the snowball got bigger and bigger, eventually crushing this bank that had been around for more than half a century.

After hearing this, Xu Zhi asked: "Then do you think we should buy Hang Lung Bank now?"

Yuan Tianfan analyzed: "Chairman, Hang Lung Bank is now in a quagmire and cannot extricate itself. As far as I know, today alone, depositors withdrew 60 million Hong Kong dollars from Hang Lung Bank. Zhuang Rongkun and Zhuang Qingquan have contacted several banks. Large banks and financial institutions, but basically all have been rejected. Only our Bank of East Asia has not officially responded. The two of them have now come to our bank headquarters and want to have a meeting with us.

If we want to acquire at this time, the probability of success should be very high, but it still involves great risks. In addition to our known internal illegal loans of HK$266 million and debt of HK$800 million, I am worried about Hang Lung Bank’s There are other unknown losses internally. "

The most worrying thing about mergers and acquisitions between large companies is this kind of unknown liabilities and hidden losses. If it is a listed company, the risk of this situation is lower. One is because the mutual confrontation between unrelated shareholders and directors makes it difficult to let them go. Major shareholders or CEOs form autocratic interest-exporting groups. The second is that listed companies have strict financial statement requirements and are also monitored by the stock exchange. Even if there are some problems, the scale is generally not very large.

Of course, there are loopholes in any policy. For example, the three companies of Carnegie Corporation, Enron Corporation of the United States, and OGX Petroleum Corporation of Brazil created the most successful fraud in the history of global business, but there are only a handful of such examples.

Hang Lung Bank is not a listed company. In 1976, two brothers, Zhuang Rongkun and Zhuang Qingquan, Filipino businessmen, bought 80% of the shares of Hang Lung Bank. Since then, Hang Lung Bank has become a family business. Although its internal operations are also subject to the supervision of the Hong Kong financial sector, Supervision, but it is not difficult to cope with such inspections. No one knows how big the internal holes are in Hang Lung Bank at this moment.

This is also the fundamental reason why no other bank is willing to take over Hang Lung. It takes enough time to thoroughly check the hidden liabilities of a bank. But at the moment, Hang Lung Bank is being run on by countless depositors. Without foreign aid, it may not be able to survive for a week.

"The Zhuang brothers are actually outside." Xu Zhi said with a smile: "In that case, let's talk to them first."

Yuan Tianfan nodded and said, "Okay, I'll ask them to come in immediately."

…

After waiting for a while, the secretary came in with two men about 50 years old.

Yuan Tianfan and Xu Zhi both stood up and took two steps forward.

Yuan Tianfan introduced: "Chairman, this is Zhuang Rongkun, chairman of Hang Lung Bank, and this is Zhuang Qingquan.

Two Zhuangshengs, this is our chairman Xu Zhi. "

"I've admired him for a long time, Xu Sheng's name is like thunder." Zhuang Rongkun said with a smile and shook hands.

"Don't take it seriously, please sit down, both of you." Xu Zhi greeted politely.

After Zhuang Rongkun sat down, he said: "Xu Sheng, my two brothers came here today. It's really urgent, so I won't say any polite words. We hope that Xu Sheng can help us considering that we are all Chinese." A handful of Hang Lung.”

"Zhuangsheng, Hang Lung Bank's current problems cannot be solved with a little support." Xu Zhi said with a smile and shook his head.

In the business history of Hong Kong, there have been no less than 10 bank runs, and the results of each bank were different. Several bankrupted, while others survived. This was because of the support of other large banks, but absolutely It is not just cash assistance, but the willingness to stand up and make statements and guarantees, which gives depositors confidence and stops the run. Otherwise, no matter how much funding is provided, it will be thrown into the sea.

Zhuang Rongkun said: "Xu Sheng, if the Bank of East Asia can help Hang Lung Bank get out of this crisis, I am willing to give 10% of the shares of Hang Lung Bank as a reward. What does Xu Sheng think?"

"10% of Hang Lung Bank shares are indeed attractive, but your bank's losses are too serious. If I enter the market, the risk will be too great." Xu Zhi shook his head with a smile.

Zhuang Rongkun said: "Xu Sheng, although Diners Finance's debt is as high as 800 million Hong Kong dollars, not all of it has been compensated. Based on the operating conditions of Hang Lung Bank over the years, this loss is completely bearable, but now we have encountered it. As long as the bank can survive the run and operate normally in the future, it will only take a few years to return to normal. I think Yuan Sheng is also an insider and should know this very well."

After hearing this, Xu Zhi glanced at Yuan Tianfan beside him and saw him nodding, indicating that he agreed with this point of view.

"Maybe, but no one knows if Hang Lung Bank has any other losses, right? If Diners Club hadn't gone bankrupt and Standard Chartered had discovered this illegal loan of HK$800 million, I'm afraid no one in Hong Kong would know about Hang Lung Bank now. Question?" Xu Zhi asked forcefully.

Since it is a negotiation, it is natural to use all the favorable conditions to suppress the other party. Hang Lung Bank has had cases of concealing losses before, and this is naturally not accepted by any other businessmen.

"What does Xu Sheng mean?" Zhuang Rongkun did not answer the question directly, but asked directly. He knew that the person in front of him was capable and willing to help Hang Lung Bank. Otherwise, there would be no need for today's meeting. .

Xu Zhi smiled and said: "Okay, Zhuangsheng is happy. I can help Henglong out of trouble by being famous, but it depends on whether Zhuangsheng is willing to break his arm to survive?"

"Please speak." Zhuang Rongkun raised his hand and signaled.

Xu Zhi said with a smile: "Hang Seng Bank back then also encountered the same problems as Hang Lung Bank today, but He Shanheng was much more generous."

"I see. Does Xu Sheng want to annex Hang Lung Bank just like HSBC annexed Hang Seng Bank?" Zhuang Rongkun's face was deep and he understood what the other party meant.