In Hong Kong at the end of 1982, the Hengrong Bank incident attracted the most attention. In early September, Henry Bank was implicated in the collapse of Xie Liyuan's gold shop, which triggered a run on the bank, which eventually subsided with the intervention of Standard Chartered Bank and Bank of China Hong Kong.

But unexpectedly, less than two months after the run-on turmoil, Hengrong Bank was hit again. Diners Club Finance was forced to wind up because it owed a total of HK$650 million to a number of banks and could not repay.

Since 1981, Hong Kong has implemented a three-tier banking system: licensed banks, restricted licensed banks and deposit-taking companies. Licensed banks are our common ordinary commercial banks, while there are restrictions on the business of licensed banks and deposit-taking companies, which are very restrictive. Among them, deposit-taking companies are only allowed to accept deposits of $100,000 or more, with a deposit period of at least three months and a minimum paid-up capital of HK$25 million.

This is the fourth depository company in Hong Kong's financial industry to fail in just over two months. And the two directors of Hengrong Bank also happen to be directors of Diners Club Finance Company. Therefore, the market generally questioned whether Hengrong Bank was deeply involved in the liquidation of Diners Club.

Although Henry Bank strenuously denied that it had engaged in illegal financial transactions with Diners Club, it was soon dealt a fatal blow. On December 4, a check from Hang Lung Bank was rejected by Standard Chartered Bank.

Standard Chartered Bank refused to pay because it found that Diners Club Finance had a debt of HK$150 million owed to Henry Bank, which had not been disclosed by Henry Bank, and therefore questioned the solvency of Henry Bank.

This news instantly caused a shock in the market, and countless depositors of Hengrong Bank immediately began to go to the bank to withdraw their deposits in a panic. Henry Bank's 26 branches across Hong Kong were all surrounded by crowds. Even Standard Chartered Bank, which works closely with Hengrong Bank, has refused to support it. Naturally, other banks will not take the risk of taking a stand for it at this time.

In just two days, Hang Lung's book deposits decreased by $260 million. But there were still countless depositors queuing up all night. The panic even affected other small and medium-sized banks, depositors who lived through the banking crisis of the sixties. They went to the bank to withdraw their savings and put them in their pockets.

At 7 a.m. on the third day, the Hong Kong authorities, realizing the seriousness of the situation, announced an emergency takeover of Hang Wing Bank after holding a closed-door consultation meeting overnight. The Exchange Fund Authority will use the Foreign Exchange Reserve Fund to inject HK$500 million into Hengrong Bank to ensure that the interests of all depositors are not compromised.

At this point, the panic of the whole society calmed down. A week later, after an investigation by a special team of the Hong Kong Banking Regulatory Office, Hengrong Bank estimated that its bad debts were as high as HK$670 million. In addition to the HK$150 million debt involving Diners Finance, which has been liquidated. It also includes HK$266 million illegally borrowed by the company's directors and affiliates with minimal collateral. If these bad debts are excluded, the actual net assets of Hengrong Bank are only 20 million Hong Kong dollars.

"How's the negotiation with the Hong Kong government going?" Li Xuan asked Yang Lingjun, who had just walked in the door.

"It's going well, after all, we at Jiahua Bank are the only ones willing to sell and take over. The Financial Secretary of the Hong Kong Government has basically approved our proposal, and after the completion of the write-off of Hengrong Bank, Jiahua will inject 180 million Hong Kong dollars to acquire 90% of the shares of Hengrong Bank. At the same time, we do not bear the risk of existing bad debts, and are guaranteed by the Exchange Fund of the Hong Kong Government!" Yang Lingjun said in high spirits.

This plan is undoubtedly very beneficial to Jiahua Bank, which only spent 180 million Hong Kong dollars to absolutely control a medium-sized bank with 26 branches. Although affected by this turmoil, Hengrong Bank has lost a lot of deposits. Its own credibility has been hit hard. But the newly owned Jiahua Bank is backed by Li Xuan, the world's richest man in the new technology. The Oriental Group is also a well-known money-grabbing company in Hong Kong, which is enough to offset most of the negative impact.

This is the benefit of fame, and Hengrong Bank is already a hot potato for other banks. Even if you take over yourself, it will be difficult to regain the trust of depositors in the bank. But for Jiahua Bank, as long as there is a golden sign of Li Xuan, Hong Kong people are not worried about the collapse of the bank of "God of Wealth Li". Therefore, Jiahua Bank only needs to change the signboard of Hengrong Bank. It's easy to win back the trust of the public.

"In this case, I will ask Dongfang Electronics to announce an interest-free loan of 100 million Hong Kong dollars from Hengrong Bank. The term is 3 years!" Li Xuan said with a smile.

Although this money is not much, it is enough for Hengrong Bank to use Li Xuan's reputation after the acquisition. to further stabilize the morale of the military. In fact, Li Xuan knew very well that the reason why Standard Chartered Bank refused to pay the check of Hengrong Bank before was because Yang Lingjun was behind it.

He had already secretly paid attention to the situation of Hengrong Bank, and bribed a middle-level financial officer inside the bank through Guò, and obtained some sensitive information about Hengrong Bank. This information includes the HK$150 million debt with Diners Club. It was on the basis of this information that Yang Lingjun successfully persuaded Sir Christopher Coatston, the executive of Standard Chartered Hong Kong Bank, to believe that Hengrong Bank was engaged in internal favoritism and fraud, and that there was a strict risk of repayment.

As a result, Standard Chartered Bank decisively terminated its support for Henry Bank, which also led Henry Bank to fall into the abyss completely. As a result, Ka Wah Bank will surpass Hang Seng Bank to become the third largest bank in Hong Kong after HSBC and Standard Chartered Bank.

"Li Sheng, that classmate of mine will fly to Hong Kong in the afternoon, and he hopes to meet you tonight!" Yang Lingjun said, this is the real news that he came to report to Li Xuan.

Li Xuan had registered a secret private investment fund in the Cayman Islands, but it lacked a principal. The reputation of being the richest man in the world has brought him many benefits, but it has also made him feel pressure.

In fact, Li Xuan never believes that he is the richest person in the world, but those real capital giants cleverly hide themselves from the public eye. And Li Xuan's rise is too fast, and he has no time to disguise himself, and someone with a heart can turn all his industries upside down with just a little combing.

As the so-called budding rots first, he has to leave a way back for himself. Now the wealth of 7 billion US dollars has shocked countless people. But if the Eastern Bloc can really develop according to his plan, then thirty years later, his net worth may be even more terrifying. (To be continued......)