Chapter 644: HSBC's Dilemma (Part II)
Just last night, Li Jiacheng invited him to dinner! And while having dinner, Li Jiacheng told him an important news. Cheung Kong Group has taken over all the shares of China Power Power Company originally held by the other party from the "God of Wealth Lee", and is ready to continue to increase its shareholding to compete with the Kadoorie family for control of the listed company!
Li Ka-shing hopes that Victory Securities, a subsidiary of HSBC Group, will join Sun Hung Kai Securities in Asia as the financial adviser for the acquisition of Cheung Kong Group. At the same time, he also hopes that HSBC can provide credit support for the acquisition of Cheung Kong Group!
The partnership between HSBC and Li Ka-shing has a historical basis. If it weren't for HSBC's strong support, Li Ka-shing would not have been able to complete the annexation of Hutchison Whampoa! But now when he asked HSBC for cooperation again, Pu Weishi was faced with a dilemma!
Because the other party involved in the merger and acquisition, the Kadoorie family, is also one of HSBC's most important partners in Hong Kong! If Pu Weishi chooses to support Li Jiacheng, then HSBC will once again stab its own partners in the back as it did with the Jardine Matheson Group before!
The previous choice in the merger and acquisition case of Hongkong Land has made Pu Weishi regret it to this day! That acquisition incident seems to have little to do with HSBC, but HSBC actually made the typical mistake of picking up sesame seeds and losing watermelons! HSBC not only failed to quickly enter Hong Kong's electronics industry, but took the lead in Hong Kong's real estate industry in its own back garden!
And this time, even if HSBC chooses to support Cheung Kong Group, it may not be able to reap Li Ka-shing's wholehearted gratitude! From the time Li Ka-shing told him that he was going to bid for the CLP Company, Pu Weishi had already roughly guessed the ins and outs of the whole thing! After all, HSBC, as one of the giants in the Hong Kong market, has far more information channels than ordinary people can reach!
Before today, the focal point of attention in Hong Kong's capital market was naturally none other than the incident in which Liu Yuenxiong and the Kadoorie family competed for a controlling stake in the Grand Hotel Group! However, even the Kadoorie family, the person concerned, may not have guessed that the "God of Wealth" Li was the real mastermind behind his trouble!
However, Pu Weishi had some suspicions long ago, Liu Ruanxiong is a big speculator in the Hong Kong stock capital market, and he entered the field of vision of Victory as early as the beginning of his rise. In the early days of Liu Ruanxiong's career, both HSBC and Dolly Securities had some cooperation with Liu Ruanxiong.
But then Liu Ruanxiong fully fell to the Jiahua department, and the relationship with HSBC gradually drifted apart. Pu Weishi knows very well that this Boss Liu is actually a knife in the hands of "God of Wealth Li". Many things that are inconvenient for "God of Wealth Li" to come forward are solved by white gloves like Liu Ruanxiong.
In Pu Weis's view, the equity competition for the hotel is far more than an ordinary commercial merger and acquisition battle on the surface!
Since Hong Kong entered the transitional period of Hong Kong's return to the motherland, the whole society has more or less a trace of panic and confusion about the uncertain future! This has brought the whole society into an impatient mood, and this is precisely the root cause of a series of problems in Hong Kong, such as the strong speculative atmosphere and the surging tide of immigrants in Hong Kong in recent years!
And if we want to calm down this restless emotion, we need to find an outlet for everyone to vent and relieve their stress! Due to the natural distrust brought about by differences in political and political systems, Hong Kong society has concentrated its dissatisfaction in the north for the past few years.
Recently, however, the spearhead of Hong Kong society seems to have suddenly taken a 180-degree turn, and the British, represented by the Hong Kong-British Government, have become the new culprits! Pu Weishi is very sure that the leader who is hiding behind the scenes to promote the change in the direction of public opinion in Hong Kong is none other than the "God of Wealth" of the Eastern Bloc!
Against the backdrop of Hong Kong society's beginning to show great dissatisfaction with British rule, the Kadoorie family's current experience is more like a victim of the "God of Wealth Lee" used to kill chickens and monkeys! And the other party really did not disappoint Puweis, the Grand Hotel Group was just an appetizer, and the real fatal blow to the Kadoorie family was the much larger China Power Company.
What made Pu Weishi feel the most uncomfortable was that Li Xuan once again cleverly chose the strategy of retreating into advance! Not only did he not choose to take the opportunity to swallow the blue-chip stock of China Power Company, which performed well in the Hong Kong stock market, but took the initiative to help Li Jiacheng, an outsider, give advice!
If it were the Eastern Bloc that had launched an attack on CLP now, Li Jiacheng would have felt no less fear than the Kadoorie family. After all, HK Electric, a subsidiary of Cheung Kong Group, as one of the only two monopoly power generation enterprises in Hong Kong, is already at a disadvantage in the competition with CLP. If CLP changes to a more powerful owner, the Oriental Group, the Li Ka-shing family's influence on Hong Kong's power industry will inevitably be further marginalized!
In the face of huge interests, let alone friends, even if they are father and son, they may become even enemies of life and death in a turn. Although Li Xuan's Eastern Bloc is strong, HSBC only needs to create enough enemies for him, and there is still a good chance to suppress the other party.
But Li Xuan was obviously not ready to give Pu Weishi this opportunity, for example, this time he took the lead before HSBC could react, and pulled Li Jiacheng into his camp! Li Jiacheng approached Pu Weishi last night, not so much to seek support from HSBC, but to make HSBC not help each other!
Pu Weishi could guess the conditions that Li Xuan offered to Cheung Kong Group, in addition to transferring his own equity in CLP, Jiahua Bank must be very willing to provide sufficient credit for Li Ka-shing's follow-up acquisition. After getting the capital endorsement of Jiahua Bank, HSBC is just the icing on the cake for Li Jiacheng!
Naturally, there is a world of difference between the gratitude gained from giving charcoal in the snow and the icing on the cake! Now it is the Kadoorie family who really needs charcoal in the snow. Because combined with Li Xuan's previous shareholding in a series of shareholders of CLP, his hunt for the Kadoorie family actually began a long time ago.
At the beginning, Li Xuan took the opportunity of the 87 stock market crash to continuously increase his shareholding when the stock price of CLP was at a low point, which made the Kadoorie family extremely panicked. At that time, Li Xuan's reason announced to the public was a simple financial investment! The Kadoorie family naturally would not believe it, but the difference in strength between them and Li Xuan was too great!
Therefore, after the Kadoorie family tried Li Xuan, Li Xuan quickly gave another more convincing reason! With the rapid development of Hong Kong's electronics industry, a gap began to appear in Hong Kong's electricity supply! The real purpose of Li Xuan's acquisition of the CLP Company was to lay out the layout of Hong Kong's electric power industry in advance. In order to avoid a shortage of electricity supply in Hong Kong in the future, which will drag down the development of the Oriental Group and the electronics industry in Hong Kong!
As long as the Kadoorie family can ensure that the power generation of the China Power Company continues to grow rapidly, Li Xuan can give up the competition for the China Power Company! Thinking that they have figured out Li Xuan's true purpose, the Kadoorie family has readily made a guarantee. After all, the more electricity generated, the more profitable CLP will be, and the more wealth the Kadoorie family will reap from it!
However, as CLP has continued to invest in the construction of new generating units in the past two years to expand its power generation capacity, the Kadoorie family has inevitably fallen into a situation of tight funds! After all, a set of high-power generating units can easily invest billions of Hong Kong dollars, and the supporting power supply and transmission facilities also cost a huge amount!
In addition to issuing bonds in the capital market, another important way for CLP to raise funds is to issue new shares. In order to ensure that their shares are not diluted, the Kadoorie family can only purchase new shares on a pro-rata basis, which will consume a lot of money.
In fact, CLP has expanded so rapidly in recent years that it has exceeded the Kadoorie family's financial resources. To put it in layman's terms, the Kadoorie family is now struggling! Many of its 30 percent stake in CLP has been pledged to HSBC in exchange for liquidity.
But as long as the Kadoorie family is given a few years to digest it, and when the new units under construction of CLP start to generate electricity and start generating a steady stream of huge cash flow, the Kadoorie family will be able to reap huge returns.
It's a pity that all this is a trap designed by Li Xuan, after CLP continuously issued new shares to raise funds, not only the major shareholder Kadoorie family was consumed a lot of funds, but also because of the large increase in the supply of CLP shares, which greatly suppressed the rise of CLP's stock price, which in turn limited the Kadoorie family's ability to raise funds by pledging CLP shares.
After Liu Nguyen Hung made a move, the Kadoorie family fought back in order to raise funds, and immediately approached HSBC for stock pledge. After the latest round of stock pledges, the remaining shares of CLP in the hands of the Kadoorie family are actually only 15.
If he had to choose between Li Ka-shing and Kadoorie, Pu Weishi would definitely choose Kadoorie without hesitation, after all, two birds in the forest are better than one bird in hand! From the moment Li Ka-shing chose to swallow Li Xuan's bait and launch an acquisition of CLP, the balance in his heart inevitably began to tilt to the side of Jiahua, and it was difficult for Cheung Kong Group to continue to become a core customer of HSBC.
It's a pity that the Kadoorie family will most likely suffer a full-scale rout in the next crisis! Unless HSBC is willing to provide the Kadoorie family with large-scale unsecured credit facilities regardless of its own risks. But now that HSBC itself is shrinking and retreating from Hong Kong, how can it be for the benefit of others to end up in person!
Therefore, what is really distressing about Pu Weishi now is that he actually has no choice. HSBC will also be a small supporting actor again, watching Jiahua stand in the center of the stage and perform a radiant performance!
First the Jardine Matheson Group, and now the Kadoorie family! Puvis is not even sure whether the next target of "God of Wealth Lee" will be HSBC's turn.