Chapter 408: Asia Entertainment prepares to go public

At the end of 1984, although Li Xuan was not in Hong Kong, Hong Kong still has many legends about him. In early December, Jiahua Bank, the third largest bank in Hong Kong after HSBC and Standard Chartered, was successfully listed on the Far East Exchange.

In fact, Li Xuan had long planned to list Jiahua Bank, and for commercial banks, becoming a public company subject to external supervision would be more conducive to enhancing their reputation. But the timing had been bad before, and Li Xuan only acquired Jiahua Bank in the second half of 1981. Before he could fully control Jiahua, the Hong Kong stock market was already ahead of the Hong Kong property market and began to fall in early 1982.

Later, the property market crash caused by the crisis in Hong Kong's future began to spread to the financial industry. Jiahua Bank took the opportunity to take over Hengrong Bank, which was almost facing liquidation, at a low price of HK$1.8. In 1983, the Hong Kong dollar crisis caused heavy losses to the entire Hong Kong banking industry. However, due to the advance planning, Jiahua Bank was not only unscathed, but took the opportunity to further promote its own brand.

But the Hong Kong stock market has been very depressed in the past two years, and it is not a good time to go public. By the end of 1984, the issue of Hong Kong's return to the motherland had been settled, and Hong Kong's economy was rapidly rejuvenated by the recovery of the American economy. After more than two years of sharp decline, the Hong Kong stock market finally has the beginning to turn bears into bulls.

After Li Xuan took over, Jiahua Bank expanded for three consecutive years, with a total of 69 outlets and a total deposit of more than HK$20 billion. The total assets of the bank are as high as 27.7 billion, and the pre-tax profit in 1984 is estimated to reach 400 million Hong Kong dollars, which has left the fourth-ranked Hang Seng Bank far behind.

Supported by such a brilliant performance. The asset valuation of Grandhua Bank directly reached HK$3 billion. The company's management finally decided to issue 50 million shares to the public at a price of 20 Hong Kong dollars per share. Accounting for 25% of the total share capital, the total amount of funds raised is up to HK$1 billion. This is the first time that the Hong Kong stock market has been in recent years. The largest IPO in the world.

As a result, on the day of Jiahua Bank's stock market listing, the company's stock price once rushed to 48 Hong Kong dollars. The total market value of Jiahua Bank once reached 9.6 billion Hong Kong dollars, and it almost touched the threshold of 10 billion. Although Jiahua's share price began to pull back continuously in the next few days, it has also stabilized at around HK$35 per share.

This also makes Li Xuan's hands have another large company with a market value of up to 7 billion Hong Kong dollars. And Li Xuan's stake in Jiahua Bank accounted for 60%, which increased his assets by 4 billion Hong Kong dollars overnight.

What is the concept of 4 billion Hong Kong dollars? For example, the Xu Aizhou family, the ship king of the four old Chinese families in Hong Kong, has been operating hard for more than half a century for two or three generations, and the wealth they have saved is only 4 or 5 billion Hong Kong dollars!

"How do I feel that many people look at me strangely!" Li Xuan held a glass of brandy. Xu Jiankui, who came forward, said depressedly.

"Li Sheng, although the media in Hong Kong used to call you the reincarnation of the God of Wealth, to be honest, I didn't feel deep enough, and this time I really admired the five-body body to the ground!

Before, the news that Li Xuan's assets exceeded 100 billion Hong Kong dollars had long been publicized by major media in Hong Kong, and everyone had aesthetic fatigue. The figure of 100 billion sounds exaggerated, and everyone knows it. But for most people, they don't actually have a personal experience.

For example, a gossip news item in the "Oriental Daily" reported that an uncle who lives in Mong Kok has put all his pension money into his own. They all took it out to subscribe for shares of Jiahua Bank, and he was very lucky to subscribe for 5,000 shares.

Even if the uncle threw away the stock in his hand when the stock price rose to HK$45, he made a net profit of HK$125,000 in one day. Such wealth is played out among many Hong Kong stockholders. All the citizens who subscribed for the new shares did not sell them when the stock price reached the highest point of HK$48. Although the current stock price has fallen to 35 Hong Kong dollars, it can still have a return on investment of up to 75%!

And compared with Li Xuan's earning power. Shareholders who subscribe for new shares can only be regarded as petty fights. According to the analysis of Hong Kong's "Hong Kong Economic Journal", Li Xuan's total investment in the past three years has been about 1 billion Hong Kong dollars since the initial acquisition of Jiahua Bank.

But he now holds 60% of the shares of listed companies, with a market value of up to 4 billion Hong Kong dollars, that is, a return on investment of 300% in just three years. This is the difference between "God of Wealth Lee" and ordinary people!

Before the Chinese New Year's Eve, Li Xuan has another company to be listed on the Hong Kong stock market. In fact, Asia Entertainment Holdings Company originally planned to complete the listing before New Year's Day. However, due to the overwhelming response from the capital market after the listing of Jiahua Bank, Jiahua's shares were over-speculated.

Therefore, in order to calm down the market and return to rationality, the listing plan of Asian Entertainment had to be pushed backwards. This push has been nearly two months, and tonight on the eve of the official listing of Asia Entertainment Holdings, the company specially held a reception!

The reason why the cocktail party is placed before the listing, rather than waiting until tomorrow after the successful listing, is also to reduce the impact and minimize the frenzy of the market.

But from the eyes of everyone looking at Li Xuan tonight, it has actually shown that these good intentions of Asian Entertainment Holdings have not played any role.

The concept of "God of Wealth Li" is too demagogic, from the European capital market to the American capital market, and then back to the Hong Kong capital market, Li Xuan has never missed. After the previous example of Jiahua Bank's IPO, retail investors and investment managers in Hong Kong have reached a consensus more and more unswervingly, that is, there is meat to eat with the "God of Wealth Li"!

Although Asia Entertainment raised the issue price of the IPO again, from the original HK$15 per share to HK$20, and the number of new shares issued increased from 30 million shares to 40 million shares, it was still difficult to meet the surging enthusiasm of countless investors.

According to the data obtained by the Hong Kong Economic Journal, the funds frozen in Hong Kong due to the subscription of new shares of Asian entertainment have exceeded 50 billion Hong Kong dollars. The winning rate has dropped to just 1.5 per cent. Of course, the winning rate of this new stock is only 0.1% against the sky in a certain country in later generations. There is still a big gap.

However, it is important to know that the Hong Kong stock market has just come out of the quagmire, and it is very risky to subscribe for new shares. But the three words "God of Wealth Li" instantly dispelled everyone's doubts. Just like the myth that a country's new stocks only rise and do not fall in later generations.

Subscribing to the stock of "God of Wealth" is similar to picking up money, but whether you can really pick up money in the end depends on your own luck! And most people always think that their luck is still good.

Many people even take out their fixed deposits in the bank and invest them in the stock market. The number of account openings in major securities companies has also ushered in a wave of peaks. It is said that the staff who are responsible for guiding the private procedures for new shares are even hoarse!

Because of the listing of Asian Entertainment Company, even the Hong Kong banking industry has been greatly affected. Because it was frozen in the account of the securities company, this is as high as 50 billion Hong Kong dollars. More than $20 billion has been lost from Hong Kong's major banks in the last few days.

In Hong Kong in 1984, the total deposits of HSBC, the leader of the banking industry, were only more than 100 billion Hong Kong dollars, the total deposits of Standard Chartered Bank, which ranked second, was only 45 billion Hong Kong dollars, and the third place Jiahua was only 20 billion Hong Kong dollars. The total market value of the entire Hong Kong stock market is only 150 billion Hong Kong dollars.

The frozen 50 billion Hong Kong dollars is equivalent to half of HSBC's deposits and one-third of the market value of the entire Hong Kong stock market! So much so that Hong Kong's financial industry suddenly experienced a liquidity shortage, and the overnight interbank interest rate soared instantly. Even the high-level officials of the Hong Kong government were alarmed and needed to hold a meeting overnight to discuss countermeasures!

The listing of a company can cause such an uproar. It is enough for Li Xuan to be proud. As soon as Li Xuan arrived in Hong Kong, he received a call from the governor of Hong Kong, expressing his concern about the listing of Asian Entertainment.

And for Asian Entertainment. Too much attention will only make the company's stock over-speculative, which can easily lead to a sharp rise and fall in the stock price. Li Xuan even secretly prepared a sum of money, when the stock price plummeted and triggered a capital stampede. Urgently protect the disk!

"Li Sheng, after tonight. I wonder how many millionaires you can create for Hong Kong?" asked Xu Jiankui with some gossip.

When he saw Li Xuan for the first time today. Unconsciously there is a sense of awe. The two talked and laughed for a few minutes, and Xu Jiankui slowly regained the feeling of getting along before, and his tone was a little more casual and free.

Xu Jiankui came from a proud family, and he has not seen a lot of the big world since he was a child, and his relationship with Li Xuan has always been very close. Even when he saw Li Xuan again, he couldn't help but lose his sense of normalcy, let alone others!

There were not a lot of guests who came to the reception tonight, including investment managers of various funds and trusts, many partners of Asia Entertainment Holdings, and many popular stars in Asia Entertainment Company! Countless people's attention quietly fell on Li Xuan's head from time to time, but very few people really made up their minds to dare to come forward to say hello, and most of them couldn't help but feel ashamed!

"There are not a hundred people, but there are seventy or eighty people!" Li Xuan said casually.

This number seems to be a lot, but more than half of the places will be occupied by Oriental Commerce, Oriental Research Institute, Oriental Games, ATV Group, etc., and several other companies that are not ready to go public.

The reason why Jiahua Bank and Asia Entertainment Holdings chose this time to list on the Hong Kong stock market is not only to raise funds for their own further development, but also to release dividends to the employees who follow Li Xuan in the group.

"Now all Hong Kong people are envious of your company's employees, and it is said that countless Hong Kong girls have adjusted their direction to catch the bachelors in your company when they can't catch you, the diamond king!" Xu Jiankui joked with a smile.

"I heard you say that our company was not envied before, but Oriental Group has been the most popular company in Hong Kong for several consecutive years, okay!" Li Xuan said with a natural look, "Of course, if this can promote the employees of our company to solve their personal marriage problems, my boss is still very pleased!"

"When others praise you, shouldn't you keep a low profile?" Xu Jiankui said helplessly.

"Is this necessary? I wanted to keep a low profile, but it didn't still cause such a big stir this time! If I didn't have to rush back to Hong Kong for the Spring Festival, I would like to stay in the United States for a few more days and come back after Asian Entertainment went public!" Li Xuan shook his head and said.

The attention attracted by the listing of Asian Entertainment is far greater than that of the previous Jiahua Bank, and its influence has even spread overseas. Because among the minority shareholders of Asia Entertainment, there are also a number of stars in the company. Hong Kong films have a huge influence throughout East and Southeast Asia, so much so that many foreign entertainment media are also very concerned about the news of Asian Entertainment's listing.

"Li Sheng, I congratulate you in advance on the stock price of Asia Entertainment Company tomorrow!" came up to greet a man with gold-rimmed glasses and a Sven face.

"To borrow Wu Sheng's auspicious words, compared to Bao Sheng's generosity, I'm just making a small fuss!" Li Xuan said humbly.

The other party's name is Wu Guanzheng, and he is the second son-in-law of Mr. Bao Yugang, the king of the ship. Mr. Bao Yugang has only four daughters and no sons. Therefore, several sons-in-law were trained by Bao Lao as sons, so that they could take over their own classes in the future.

Among them, Bao's eldest son-in-law is responsible for managing the shipping empire of the old ship king. After a few years of vigorous fire sales, the tonnage of Bao's ships is only half of its peak, but it is still one of the world's largest shipping companies.

The Wharf Company, which Bao Lao snatched from Jardine Matheson after he abandoned the boat and landed, was handed over to his second son-in-law, Wu Guanzheng, to take care of it! Recently, Bao Lao's movements in the Hong Kong stock market are no less than those of Li Xuanlai.

The Madden family, one of the major shareholders of Hong Kong's veteran British-owned company Wheelock, recently sold its shares to Khoo Tak Bah, Singapore's richest man. Bao Yugang immediately bought a large number of shares from the Zhang Yushan family, another major shareholder of Wheelock, and started a purchase war with the Qiu family!

According to Wheelock's current share price, either of the two Khoo and Pao wants to acquire more than 50% of Wheelock's shares, they need to use at least HK$2 billion. And just a few years ago, Bao Yu just used 2.1 billion Hong Kong dollars in cash to pocket Wharf Company.

"Li Sheng, you are joking, Jiayue's strength is not even a fraction compared to the Eastern Group, this time Qiu Sheng of Xingzhou is menacing!" Wu Guanzheng said with a straight face.

"As the so-called strong dragon does not suppress the head snake, if Bao Lao needs to turn over in funds, although the strength of Jiahua Bank is far less than HSBC, it is also willing to provide some help within its ability!" Li Xuan said with a smile.

The whole of Hong Kong knows that K. Wah Bank is now rich, not only does it have the third highest total deposits in Hong Kong, but it has just gone public and has taken 10 Hong Kong dollars. When Wu Guanzheng heard Li Xuan say this, his face also showed a little joy. Although the relationship between the Bao family and HSBC is very close, in this kind of hand-to-hand combat of real money, it is naturally impossible to gain more support.

Li Xuan was very happy about this kind of favor, and he was not worried about Bao's ability to repay after borrowing money. Hong Kong's real estate industry will soon usher in a wave of growth that will last for more than a decade. If it weren't for the fact that the earning power of these industries in his hands was more rebellious than that of real estate, Li Xuan might not be able to help but make a move against Wheelock Company.

Li Xuan said casually now, no matter whether the Bao family has financing from Jiahua Bank or not, they all need to accept his favor! And Li Xuan can also take this opportunity to deepen the relationship with the Bao family! (To be continued......