Unlike most British capitalists who are in a hurry to evacuate Hong Kong, the Kadoorie family is full of confidence in Hong Kong's future development! The Hong Kong CLP Corporation, which is owned by them, is also one of the few British-funded enterprises that has taken the initiative to go north to strengthen cooperation with the mainland!

Located in the deep-sea special zone across the river from Hong Kong, it is now under intense construction, and China's first large-scale commercial nuclear power plant, Daya Bay Nuclear Power Plant, has a 25% stake in Hong Kong's CLP Corporation!

Monopoly industries that lack competition are usually profiteering industries! The China Power Corporation, which holds the exclusive right to supply electricity to the entire Kowloon Peninsula and the New Territories, is a typical example!

According to the data released in CLP's 1980 financial report, the company's annual profit was 550 million Hong Kong dollars. By 1986, CLP's annual profit had skyrocketed to HK$2.16 billion. In other words, in just six years, CLP's profit has nearly quadrupled.

The soaring performance of CLP is naturally inseparable from the background of Hong Kong's sustained and rapid economic growth. In particular, with the sudden rise of Hong Kong's electronics industry represented by the Oriental Group, Hong Kong's industrial electricity consumption has surged year after year in recent years!

Naturally, Hong Kong's factories cannot be built in the Hong Kong Island area, where every inch of land is at a premium, but are basically located in Kowloon and the New Territories. In particular, after the completion of the Tin Shui Wai Electronics Industrial Park, the entire northwestern part of the New Territories has become a new hot spot for Hong Kong's industry.

However, even if CLP's earnings prospects are so good, it will not escape the fate of the stock price crash in the event of an unreasonable stock market crash. In particular, just two months before the stock market crash, CLP had just issued new shares in order to raise funds for the construction of the planned Longgutan power plant.

For CLP, which has just completed the blood draw from the capital market and holds a large amount of cash, even if the stock market crash breaks out no matter how tragic it is, it will not affect the normal operation of the listed company itself. But for the company's stock price, it is the opposite, the previous action of issuing new shares, just let a large number of speculative capital focus on key stocks!

Now that the market is in turmoil, these speculators are naturally the first to flee. This triggered a panic in the market chasing up and down, which inevitably caused a trampling of CLP's stock price!

You must know that in the global stock market crash of '87, the Hong Kong stock market fell the most drastically! The Hang Seng Stock Index fell by as much as 52 percent in less than two months! Among them, the share price of CLP Power, one of the most constituent stocks of the Hang Seng Stock Index, fell by 55 percent.

You must know that the halving of CLP's stock price does not mean that the company's profits have been cut in half in an instant. This is just a short-term distortion of value caused by the general panic in the capital market! That is to say, the actual value of CLP far exceeds the total market value reflected after the stock price has fallen to the bottom!

It was under these circumstances that Li Xuan's personal investment fund began to enter the market quickly, taking the opportunity to buy a large number of CLP's stocks! At that time, this move of the LH fund also caused a huge panic in the Kadoorie family, thinking that the God of Wealth Li was going to compete with them for control of CLP!

However, Li Xuan obviously has no intention of becoming the "power king" in Hong Kong, this is just a simple value investment! But even so, the Kadoorie family has not given up its vigilance in the past few years!

It's just that the gap in strength between them and Li Xuan is too big, and they can only barely defend, but they can't take the initiative to attack! You must know that the surge in electricity consumption in Hong Kong can indeed bring more profits to CLP Company!

But there is a premise that CLP must build more power plants to increase its power supply capacity! Power plants are the most typical high-investment, long-return projects. Although this kind of heavy industry project can lock in huge profit returns in the long run, it will also greatly increase the financing needs of enterprises in the short term!

If Li Xuan and the Oriental Group had the financial resources to spend billions of Hong Kong dollars to build a new power plant, it would not be a big deal! But more than 70% of the Kadoorie family's wealth is concentrated in the part of the equity of the China Power Company, which is not cash that can be easily used!

Therefore, the only way for CLP to raise capital is to issue new shares publicly! Even so, in order to ensure that its own shares are not diluted, the Kadoorie family also needs to come up with a large amount of cash to eat the new shares in proportion!

In this case, the Kadoorie family is not unaware that the only 30% of the shares in their hands are not enough to ensure their absolute control over CLP, but they are also powerless to continue to increase their shares! Fortunately, as the overall market value of CLP continues to expand, the risk of being acquired is also decreasing!

Li Jiacheng said that the total market value of the China Power Corporation was too small, not more than 20 billion Hong Kong dollars, but almost close to 30 billion Hong Kong dollars! Once someone launches a hostile merger and acquisition of a key point, it will definitely cause the company's stock price to skyrocket!

CLP's own profitability and future growth space are very good, even if the premium is 50%, it is not impossible! That is to say, if you want to successfully annex CLP, you must mobilize at least 22.5 billion funds!

This was Hong Kong in 1990, and there were only a handful of companies in Hong Kong with a market value of more than 10 billion yuan! Therefore, the capital threshold alone was enough to keep out most of the snoopers with bad intentions! Just like Liu Ruanxiong, a "killer in the stock market," even if he let out the news that he was going to buy the China Power Company, someone had to believe it!

In contrast, the entire plate of Shanghai Hotel Group, another listed company under the name of the Kadoorie family, is much smaller, with a total market value of only about 8 billion Hong Kong dollars!

If the premium does not exceed 25 percent, Liu Ruan Hung only needs to prepare 5 billion Hong Kong dollars to have the opportunity to pocket the Grand Hotel Group! Not to mention that he has reached an agreement with the major shareholder Liang Zhonghao in advance and successfully purchased 30% of the shares in the hands of the other party!

Therefore, in terms of equity alone, Liu Nguyen Hung has actually far surpassed the Kadoorie family, which is responsible for the day-to-day operation of listed companies. But if Liu Nguyen Hung wants to rely on shareholder voting to achieve a change of control of the company, it is not an easy task!

Because after Liu Ruanxiong took control of a listed company, he either chose to directly split and dismember the company, or he continued to issue new shares to raise funds and carry out the next round of acquisitions! Therefore, the stock price of the company under Liu Ruanxiong's name often soared and plummeted, and the major shareholders made a lot of profits from it, but the small shareholders suffered heavy losses!

In contrast, the Kadoorie family's reputation is undoubtedly much better! After years of careful management, Grand Hotel Group has become one of the largest high-end hotel groups in Hong Kong, and its Peninsula Hotel is the most well-known high-end hotel in Hong Kong!

Therefore, if Liu Ruanxiong wants to truly control the hotel group, the only way is to carry out public mergers and acquisitions, so that his equity exceeds 51%, so as to complete absolute control!

Of course, to a certain extent, the capital drama of Liu Ruanxiong's acquisition of the Shanghai Grand Hotel is also inseparable from Li Xuan's behind-the-scenes efforts! It was through the Asian Securities Company that Liang Zhonghao intersected with Liu Ruanxiong, the receiver!