The birth of the Hong Kong Island family

Time flies, and 1998 is here in a blink of an eye.

After continuous struggles, the Hong Kong stock market gradually stabilized. In the first half of December, investors took advantage of the low price and the Hang Seng Index once climbed to 13,500 points;

Unfortunately, people are still timid, and there are rumors that foreign predators are still eyeing it. Eventually, it fell to 12,550 points at the end of the year, down 28.8% for the whole year, and the total transaction volume more than doubled from last year, reaching HK$4.5 trillion.

At the same time, the situation in South Korea was extremely tragic: in mid-November, the South Korean won gave up its fixed exchange rate against the US dollar. Then the South Korean won plummeted wildly, losing half of its value in a week. This is equivalent to what the Koreans have done in recent decades. Half of the "cake" has been cut off, and the funding problem of Korean companies has become more and more prominent. Chaebols such as Haitian, Sammy, and Jinro have closed down one after another. Six of the top 30 chaebols have collapsed. People have even begun to suspect that Samsung, Hyundai, Can Daewoo and LG still hold on? By December, South Korea could no longer hold on and had no choice but to seek help from the IMF and completely open its financial door.

Looking back at 1997, the impact of the Asian financial crisis is undoubtedly huge. It is obvious that this year will write a grand chapter in history.

Looking forward to 1998, the Asian financial crisis is still continuing, especially the ordeal in Hong Kong is not over yet.

Early January.

International speculators came to Hong Kong again to "make trouble". In their view, Hong Kong has become a "cash machine"; although the Hong Kong government's interest rate "smart move" last time, the international speculators exited with a profit of about 2 billion Hong Kong dollars. of.

Although the Hong Kong Monetary Authority's "any move" approach has preserved the Hong Kong dollar, every time interest rates and bank lending rates are raised, Hong Kong's real estate and economy will fall, and more companies will go bankrupt.

The reason is simple. With such high interest rates, who would buy property?

Banks also dare not borrow money randomly because they need to ensure sufficient cash flow.

Not only do companies have to borrow at high interest rates, but banks may not necessarily lend.

Therefore, Hong Kong's economy will worsen this year.

Therefore, the national speculators did not retreat in Hong Kong. Instead, they took advantage of South Korea's surrender and the panic of the sharp depreciation of the Indonesian rupiah to come to Hong Kong again and continue to test.

at this time.

Soros and other giants are also remotely directing international speculators on Wall Street to attack Hong Kong.

In the conference room, these predators were like ‘colonizers’, viewing Xiangjiang as their prey.

Soros said easily: "Our goal this time is very simple. It is to break the Hang Seng Index in Hong Kong to 10,000 points, or even 8,000 points!"

It seems that international speculators are attacking the Hong Kong exchange rate this time, but in fact their real intention is the Hong Kong index. Of course, these are all closely related.

A head of an investment institution said: "The Lin family did not participate in the last attack on Hong Kong. I don't know how they will deal with it this time. Will they follow us to get a share of the pie, or will they fight back?"

In their view, the Lin Chichao family is the Optimus Prime of Hong Kong and has great influence.

Another investment leader said with a smile: "Since he has seen the Hong Kong bubble and made preparations in advance, he will not struggle with money. I believe he is hoping to buy the bottom!"

"Haha, I'm afraid that this time Hong Kong's economy will completely collapse, and he will be filling the hole by buying the bottom."

"A chaebol without its headquarters is still a chaebol, but it is just a chaebol that is at the mercy of others!"

"That makes sense!"

Everyone regards Hong Kong as fish and meat in their hands, letting them slaughter it. If Lin Zhichao were here, he would definitely give them some color. Lin Zhichao's feelings for Hong Kong are deeply rooted. He not only regards it as a place for him to make money, but also regards Hong Kong as the foundation of his family.

Then, Soros added: "I want to tell you some good news. Zurich Group and First Chicago Bank have decided to cancel their commitment to subscribe for preferred shares issued by Peregrine. This means that the largest bank in Asia excluding Japan Independently listed investment banks will go bankrupt soon, and then the Hong Kong stock market will suffer a fatal blow."

Everyone was smiling, this was indeed good news.

The next day, Friday.

There was important news in the morning newspaper. Zurich Group and First Chicago Bank issued an announcement: they had decided to cancel their commitment to subscribe for preferred shares issued by Peregrine.

For a time, it was obvious that Peregrine was in great danger and could be said to be bankrupt.

In November last year, Peregrine's cash flow was already running low, and then it approached the Zurich Group, hoping that the other party would subscribe for 24% of Peregrine's preferred shares for US$200 million and become the largest shareholder. The Zurich Group is not stupid. The conditions given are to send a team to Peregrine. It will not decide to implement the promise until the financial environment in Southeast Asia is no longer bad.

Hengfeng Plaza.

Lin Zhichao and Lin Benfeng met with Du Huilian and Liang Botao who were visiting. He had been friends with them for many years, and they were also recognized as Lin Zhichao's think tanks.

Now that Peregrine is in trouble, he will naturally find Lin Zhichao.

"Lin Sheng, if Peregrine cannot raise funds this weekend, it will be declared liquidated next Monday. So I want to come to you and find a way!" Liang Botao took a sip of tea and put it down hurriedly.

Lin Zuhui said: "How much does it cost?"

Liang Botao knew Lin Zhichao very well, so he immediately came to ask for help. At first, he also thought about going to Barings Bank, but Du Huilian and others advocated going to Zurich Group, which has greater influence.

However, it’s almost the same for everyone, Peregrine is very difficult!

"Peregrine has almost US$1 billion in bad debts, while its net assets are only over US$600 million."

Lin Zuhui said: "How much market value is left of Peregrine?"

Liang Botao said: "Less than 3 billion Hong Kong dollars!"

At its peak, it was HK$11 billion, which has fallen by more than 70%. It can be said to be one of the stocks with the sharpest decline in Hong Kong.

Lin Zhichao has also heard about Peregrine's large number of bad debts: Peregrine held bonds of Asian companies with bad debts of US$200 million, swap instruments and other bonds also suffered losses of US$200 million each, and a loan of US$270 million to an Indonesian taxi company was recovered. There is no hope (I want to underwrite bonds issued by others), plus the hedging losses on Xiangjiang's side, which adds up to nearly US$1 billion in bad debts.

Lin Zhichao glanced at the two of them calmly, and then said: "This year is the most difficult year for the Asian financial crisis. Now the national speculators are attacking Hong Kong for the second time, and the future is unknown. It can be said that this wave of crisis may be possible in some places. You won’t be able to leave for ten years, such as those countries in Southeast Asia. So, how do you want me to help you?”

Liang Botao and Du Huilian looked at each other, and then Liang Botao said: "Can you prevent Peregrine from going bankrupt?"

Lin Zhichao said: "To me, it's a very simple matter. We have been friends for many years. Although the funds involved this time are huge, I am also willing to help you two."

At this time, Liang Botao and Du Huilian quickly understood what Lin Zhichao really meant!

Liang Botao said: "Bahrain Bank can fully acquire Peregrine, and then use Peregrine to develop investment banking business in Asia! And Du Huilian and I are willing to work for you as long as Lin Sheng thinks highly of us!"

Get on the road!

Liang Botao is familiar with red chip stocks and the mainland financial field, which is what Lin Zhichao values;

Du Huilian is a talent in the securities field. Although his investment in Southeast Asia failed this time, his talent cannot be denied.

With Lin Zhichao's general direction, these talents will make no mistakes and become great talents.

Lin Zhichao smiled and said: "No problem! You two have been my friends and partners for many years. It is worth any price to have you join Lin's enterprise. In this way, I will let Benfeng discuss with you in detail, and I will ensure that you two are personally Our interests will not let you suffer!"

The implication is that for talents, Lin Zhichao can "buy horse bones with thousands of gold."

Liang Botao and Du Huilian are naturally familiar with Lin Zhichao's emphasis on talents. In recent years, Lin Zhichao has been willing to buy companies founded by talents for the sake of talents and provide them with generous benefits.

Most of the top ten working emperors in Hong Kong are from Lam's companies. Some people also say that this is because many of Lam's companies are not listed, so we can only count the executives of listed companies, otherwise the top ten 'working emperors' may not be All will invest in Lin's enterprises.

After Liang Botao and Du Huilian left, Lin Zhichao said to Lin Benfeng: "You can inject capital into Peregrine first, and then choose the opportunity to fully acquire it later. After all, six months have not yet come."

Lin Benfeng nodded and said, "Okay, I understand!"

Lin Zhichao said: "With Liang Botao joining us, we will be able to be responsible for the mainland financial market in the future. As for Du Huilian, after all, he is also a veteran securities expert and can also be used for great purposes."

“The chairman’s emphasis on talents is admirable!”

"Haha, talents can make it easier for me. Why don't I spend money to buy time? After all, what I lack is time."

For example, Lin Benfeng's annual salary (including bonuses) can reach the level of 100 million yuan. Not to mention, as Lin Zhichao's brother-in-law, Lin Benfeng and Lin Xiner are very rich. They have always held 1.2% of the shares of Cheung Kong Group and 5% of Shangri-La Hotels Group. This is the biggest share.

weekend.

News that Barings Bank invested US$300 million in Peregrine, acquiring 51% of the equity, shocked the Hong Kong financial market.

After all, as one of the largest investment banks in Asia, if Peregrine goes bankrupt, the impact will be huge.

As soon as the news came out, Hong Kong and Kowloon were shocked.

Many people knew that it was only a matter of time before Peregrine went bankrupt. Unexpectedly, Barings Bank intervened at the last moment. You know, the Zurich Group hesitated for two months and gave up at the last moment; and Barings Bank just took two days to intervene. Announcing the capital injection into Peregrine, this courage is simply unrivaled.

Of course, some people think that Du Huilian and Liang Botao are known as Lin Zhichao's "consultants". Perhaps it was because of their relationship that Bahrain Bank intervened in this matter at the last moment.

Barings Bank itself is also in the news. The bankruptcy news three years ago is still a negative example for major financial institutions in the world. But in the three years since Octopus Financial Group took over, Barings Bank has once again become the center of attention among world financial institutions, earning nearly US$1 billion from the Nikkei Futures Index.

Wherever you fall, you get up again. This is the impression that Bahrain Bank gives people.

The impact of this news is not limited to this. Many people have also regained some confidence in the stock market on Monday; after all, the Lin Zhichao family is behind Barings Bank. At this time, Bahrain Bank takes action, which means that Lin Zhichao has taken action, so everyone I have a certain degree of confidence in the battle to defend the Hang Seng Index's 10,000 points.

The next day, the market opened on Monday.

Many investors came to the Hong Kong Stock Exchange, and everyone was waiting anxiously.

The Hang Seng Index has reached 11,000 points, and many people are wondering whether international speculators will penetrate the 10,000-point mark today.

It’s about confidence, so many investors are anxiously waiting for the opening.

At the same time, international speculators are also sharpening their knives. They are fighting a multi-front war - Hong Kong dollar, Hang Seng Index futures, and stocks.

But in fact, the real purpose of national speculators is the Hang Seng Index and stocks, not the Hong Kong dollar. Only Lin Zhichao knows this best. On the contrary, the Hong Kong government is inexperienced and has always believed that the purpose of national speculators is to maintain a continuous exchange rate of the Hong Kong dollar.

As everyone knows, the purpose of international speculators' aggressive selling of Hong Kong dollars is to cause panic, which will spread to the stock market. They will then profit from the Hang Seng Index and stocks.

In the morning, Soros called his assistant in Hong Kong: "Today, I want to hear good news!"

Assistant: "Don't worry, boss, we must penetrate 10,000 points today!"

Soon, the Hong Kong stock market opened.

As expected by investors, the Hang Seng Index fell sharply, falling 500 points within five minutes of opening.

At this moment, the three major securities firms in Hong Kong suddenly received instructions!

"Buy"

"Buy"

"Foodie"

"Foodie"

Hong Meixin is a female trader. At this time, she was typing on the keyboard quickly with a look of shock and excitement on her face.

She was given an instruction from above, which was to buy up blue-chip stocks in the market.

"Buy 2,000 shares of Sun Hung Kai Properties"

"Buy 5,000 shares of Henderson Land"

The entire trading room was filled with crazy keyboard sounds.

The boss urged from the side: "Cheer up, eat in, eat in, fast, hard and accurate!"

He was also very excited at this time. His boss was summoned by a mysterious person yesterday, and he started to make arrangements early this morning.

"The Hang Seng Index rebounded by 106001070010800"

"Oh my God, there's such a huge buying order, who is buying it?"

At this time, many places in Hong Kong are in ecstasy!

Hong Kong Stock Exchange.

"Did the Hong Kong government enter the market?"

"Didn't the Hong Kong government say it won't interfere in the market?"

"It doesn't look like the Hong Kong government's operating methods, but it looks like the Lin family bailed out the market!"

"real?"

"It's very possible! Mr. Lin Zhichao announced yesterday that he would inject capital into Peregrine, just to prevent Peregrine from going bankrupt. So those who bought heavily today may be Lin's enterprise and Mr. Lin Zhichao himself."

For a time, there were many doubts.

The Hang Seng Index is also engaged in a long-short war between 10,500 and 11,000 points. The so-called international capital is actually like a child in front of Lin Zhichao.

If Lin Zhi exceeds his full strength, he can push the Hang Seng Index to explode!

After all, when the war in the previous life was at its most intense, the Hong Kong government spent less than HK$120 billion.

Lin Zhichao has at least US$30 billion in cash flow, and together with Lin's related companies, he has a cash flow of US$50 billion.

It's cash, not stocks or fixed assets.

The second round of sniping by international speculators ended at the end of January. The Hang Seng Index has been running above 10,500 points and has not broken through the 10,000 point mark.

Later, due to the lack of confidence among Hong Kong investors, the 10,000-point mark was penetrated. However, this was at least a soft landing, so it was harmless.

And Lin Zhichao's Victoria Harbor Investment, Octopus Financial Group, and family offices have indeed rescued the market, buying a total of 10 billion Hong Kong dollars in stocks.

He thought very clearly that he would not lose money anyway, it would just exist in the stock market for a few years. Moreover, this time he cashed out as much as 70 billion from the Hong Kong stock market (in more than half a year), which is just a sprinkling of water.

This time it was just a small fuss, and I will definitely teach the international speculators a lesson next time. (End of chapter)