On Feb. 4, Hong Kong's High Court approved Matilda's bankruptcy petition, but with a 40-day extension to allow it to negotiate with creditors.

After Matoda filed for bankruptcy, an even bigger crisis ensued.

The Guangdong Trust Commercial Bank, which has more than enough to make and is not stable enough, has become the second target of the run.

Founded in 1931, Guangdong Trust Commercial Bank was inactive at first, but in the 50s of the 20th century, it became more aggressive, setting up branches in Hong Kong, Kowloon and the New Territories, and by early 1965 had opened 24 branches.

On 6 February 1965 (Saturday), there was a run on the Aberdeen branch of the Guangdong Trust and Commercial Bank, with more than 1,000 people, most of them fishermen, waiting to withdraw money, and the run lasted from 2 p.m. to 9 p.m.

At 8 p.m. that night, the Commissioner of Banking in Hong Kong issued a statement stating that the incident would in no way have any impact on the safety of other banks or the banking system in Hong Kong.

However, the next morning, the Yuen Long branch of Guangdong Trust Commercial Bank was still crowded with people.

During the run, the manager and a senior staff member of HSBC's Yuen Long branch addressed the crowd through a megaphone to assure HSBC of its full support to Guangdong Trust and Commercial Bank.

This assurance had an effect, and the run ended that afternoon.

On this day, Li Hualong did not go out to work, but stayed at home. At around five o'clock in the afternoon, Li Hualong received a call from Li Huawen.

After chatting for a while, Li Huawen asked: "Ah Long, the run on Guangdong Trust Commercial Bank is over, do you know?" ”

"Got it. I don't think it's going to end so easily. ”

"Did you hear anything?"

"Nope. It's just a feeling. ”

"You've always felt good." Li Huawen said with a smile.

"Are you happy to see that Guangdong Trust Commercial Bank is unlucky?" Li Hualong smiled bitterly.

"Nope. I'm still working at the company, I'm ready to get off work, I'm going to your house for dinner. ”

"Okay. Is my sister-in-law coming over? ”

"She's staying at home today, so I'm not going to bring her over, and I'll call home later."

"Whatever you want, let's talk when we meet."

"See you later!"

Twenty minutes later, Li Huawen came to Li Hualong's home.

After chatting a few words, Li Huawen asked, "Do you think Hang Seng Bank will be squeezed?" ”

"It's hard to say, there have been all kinds of rumors in the market recently, and some bad media have added fuel to the fire...... Ay! Li Hualong sighed lightly and continued, "Even if there is a little crisis, I believe that Hang Seng Bank can survive safely." ”

"I hope so." Li Huawen paused, smiled and asked, "In your eyes, how much is Hang Seng Bank worth?" ”

"About 100 million."

"If you and other shareholders of Hang Seng Bank are willing to sell Hang Seng Bank for a total price of HK$100 million, it is estimated that HSBC is willing to take over."

"Even if I bid 200 million, I will not sell my shares."

"So, in your eyes, the market value of Hang Seng Bank is more than 200 million!" Li Huawen said with a smile.

"You can say the same thing." Li Hualong smiled faintly, changed the topic and asked, "You work seven days a week, don't you feel tired?" ”

"I don't do that every week, there's so much to do this week. Last week, I had a day off at home. ”

"The work is not finished, we must pay attention to rest, and the combination of work and rest is the long-term way."

"I don't have your skills, and I need to do a lot of things myself." Li Huawen sighed with a smile, "But fortunately, I don't feel tired, I go out to work every day, and I feel very fulfilled to see my company thriving!" ”

The next day, Monday, February 8, Olifin, deputy general manager of HSBC, issued a statement claiming that yesterday its staff had only guaranteed limited support.

"This is unfortunately misunderstood as HSBC's unlimited support for Guangdong Trust, which is impossible."

At the same time, the head office and 24 branches of Guangdong Trust Commercial Bank announced the closure of business.

On the morning of that day, the Financial Secretary of the Hong Kong Government, Kwok Pak-wai, issued an order under the Banking Ordinance instructing the Commissioner of the Bank to take over the Guangdong Trust and Commercial Bank.

The Financial Secretary declared that Hong Kong's banking system has a sound financial structure and sufficient funds, and that the public should not worry about their bank deposits.

However, official assurances came too late to restore public confidence.

Rumours of local Chinese banks' financial difficulties spread like a wildfire burning through the market.

Li Hualong thought about letting his "Ming Pao" publish an article to quell these rumors, but he thought that some banks might go bankrupt, so he gave up this idea, and he was worried that some depositors would be affected by the article published in "Ming Pao" and did not withdraw their money, causing the money deposited in the bank to be lost, then he would become a sinner.

At this time, Li Hualong did not think about saving those banks on the verge of bankruptcy at all, he was already the majority shareholder of Hang Seng Bank, and he personally had no interest in acquiring shares in other banks.

In the afternoon of the same day, panicked depositors began to withdraw deposits in large quantities, and the run quickly spread to banks such as Hang Seng, Kwong An, Dao Heng, and Wing Lung.

On that day, traffic jams in the central district were so severe that the police had to be called in to maintain order. Even after the bank's opening hours, the queue for withdrawals refused to disperse.

In the evening, HSBC issued a statement pledging its unlimited support for Hang Seng Bank and said that it would discuss assistance in the event of difficulties for any bank.

HSBC immediately dispatched staff to increase the night shift to count cash, and dispatched cash relief vehicles on several occasions.

At midnight, Standard Chartered Bank also issued a statement, claiming that it was authorized by the head office to support Guang'an and Dao Heng Bank in unlimited amounts.

These communiqués were repeatedly broadcast on various radio stations and published in Chinese newspapers.

On 9 February, the Hong Kong government announced that it fully supported the Foreign Exchange Bankers' resolution not to withdraw time deposits until maturity.

However, the panic did not stop, and the run not only continued, but also spread to the Far Eastern Bank and spread to Macau.

In the afternoon of the same day, HSBC issued another statement to guarantee unlimited support for Wing Lung Bank and Far Eastern Bank.

Fearing that the situation was gradually getting out of control, at noon on February 9, the Hong Kong government issued an emergency decree in the Gazette declaring the pound sterling legal tender and that the government would air a large number of pound sterling banknotes from London to Hong Kong to cope with the shortage of currency.

The Governor of Hong Kong also ordered that each depositor should withdraw a maximum of HK$100 per day in cash until a sufficient number of pound sterling notes arrived in Hong Kong. Violators will have their banking licences revoked.

At noon on the same day, Hong Kong Financial Secretary Pak Wai, HSBC General Manager Sunny Dashi, and Standard Chartered Bank Manager Gillie Ham jointly held a press conference, stressing that Hong Kong banks have sufficient funds to calm people's minds.

That night, Hong Kong Governor Stanley Trench called for the cooperation of the public to overcome the current unnecessary difficulties, and the statement was read out in Mandarin by Chinese celebrity Lee Ming-chak.

On 10 February, the Hong Kong government took two further measures: first, the Financial Secretary would enforce the power conferred by the Banking Ordinance to require all banks to report their cash deposits to the Commissioner of Banks at the end of each day's business; Second, the Governor of Hong Kong in Council has authorized the Commissioner of Banking to order "the banks to return the surplus banknotes deposited to the issuing bank".

After a series of measures taken by the Hong Kong government and banking system, the run subsided on 10 February.

From the start of the run to 13 February, £5.6 million was shipped from London to Hong Kong.

At this time, the Hong Kong government enacted a monetary regulation pegged to the Hong Kong dollar and the British pound, and the fixed exchange rate between the Hong Kong dollar and the British pound was 16.8 Hong Kong dollars to 1 pound.

However, the market calm is only temporary, and Hang Seng Bank is still plagued by rumours.

Until March, there were still many baseless rumours of malicious attacks on Hang Seng Bank.

Some irresponsible newspapers also ran news that was detrimental to unnamed local banks, and Hang Seng Bank was widely regarded as one of them.

During this period, some major customers quietly cancelled their accounts with Hang Seng Bank.