Li Hualong is very clear that in the next 30 years, the overall trend of housing prices in Hong Kong is to rise sharply, but there have been many sharp declines, he has long thought about it, he wants to seize the opportunity of the sharp decline in Hong Kong's property market to make a profit, before the fall in housing prices, he sold a large number of properties to cash out, get a lot of cash, waiting for the property market downturn, when the house prices fell sharply, he invested money to buy a large number of properties at a lower price.

Once you sell and buy, you can make a good profit.

In addition to buying and selling properties, Li Hualong attaches more importance to buying a large amount of land at a land price during the downturn of the property market, after all, when the property market is in a downturn, the transaction of houses will be very low, he has money, and may not be able to buy enough property, and land is different, regardless of the property market is good or bad, the Hong Kong government will sell a certain amount of land every year.

Mr. Li is not prepared to focus only on land sold by the Hong Kong government, and he will also consider buying some listed companies with large land banks during a bear market in the stock market.

……

In the first half of 1961, there was a bull market in the Hong Kong stock market, which attracted a large amount of capital into the stock market, which caused a shortage of funds in some banks, and even a run on the stock market.

On June 13, True Newspaper made a headline that a well-known local banker had been the target of police investigation and had been notified to leave Hong Kong.

After that, rumors began to circulate in the market about Liu Po Shan, chairman of Liao Chong Hing Bank. Although later, the Hong Kong police commissioner came forward to refute the rumors, but it triggered a run on Liu Chong Hing Bank.

In 1948, Liu Po-shan founded the Liu Chong Hing Savings Bank in Wing Lok Street, Central, Hong Kong Island.

Through banks, Liu attracted deposits from Hong Kong and overseas Teochew nationals and acquired warehouse properties in Sai Wan on a large scale.

Sai Wan once played a very important role in the 100-year history of Hong Kong, because it was adjacent to Central, the most prosperous commercial area, and was the main area where Chinese people lived in Hong Kong in the early days. Later, as the population increased to the point where there was no place to accommodate, prosperity moved eastward, and the West Ring became a concentration of warehouses and wharves.

Liao Baoshan saw the development potential of Xihuan, and in the 50s of the 20th century, she entered the Xihuan real estate in a big way, and successively purchased a large number of warehouses such as public security, Gongyuan, Yuanyuan, and Yongyuan, and developed them into residential buildings.

In the 50s of the 20th century, the appearance of Xihuan began to change, land prices and property prices rose, and Liao Baoshan's wealth increased sharply, becoming a well-known big owner and financial giant in Xihuan.

Li Hualong has competed with Liao Baoshan many times, and Hualong Real Estate Company has bought several warehouses in Xihuan, demolished them to build residential buildings, and made huge profits.

In 1955, Liao Baoshan officially registered Liao Chong Hing Savings Bank as Liao Chong Hing Bank Co., Ltd., with a registered capital of 5 million yuan and a paid-in capital of 4 million yuan.

In the early 50s in Hong Kong, when banks were generally open from 10 a.m. to 3 p.m. with a one-hour break at noon, Liu Chong Hing Bank broke with tradition by extending its business hours to 8 a.m. to 5 p.m. and working as usual at noon, which was generally welcomed by depositors.

Liu Chong Hing Bank also pioneered the method of small savings deposits, i.e. small deposits of $100 to $1,000, with a monthly interest rate of 6% (7.2% per annum), which resulted in a sharp increase in deposits.

As a shareholder of Hang Seng Bank, Li Hualong has long noticed Liao Chong Hing Bank, one of Hang Seng Bank's competitors, and he feels that the owner of this bank is very business-minded.

In 1958, Liao Chong Hing Bank increased its registered capital to 20 million yuan, its paid-in capital to 10 million yuan, and its reserve fund was 15 million yuan. At this time, Liu Chong Hing Bank had moved its head office into the 10-storey Liu Chong Hing Bank Building located on Des Voeux Road West and had begun to take shape.

Liu Chong Hing Bank's business strategy is quite aggressive, with a lot of fanfare to attract deposits at high interest rates and to invest heavily in riskier real estate on the other.

At the end of 1960, Liu Chong Hing Bank's deposits (including profits tax and provision for doubtful debts) totalled $109 million, while loans (including overdrafts and mortgages) amounted to $73.57 million and $8.52 million was invested in real estate and the bank's buildings.

In other words, the bank's overdraft and investment in real estate accounted for 75% of the total deposits, and the soundness of the bank's operations has been shaken.

It can be said that the assets and liabilities of Liu Chong Hing Bank reflect the operating conditions of the vast majority of Chinese-funded family banks in Hong Kong at that time.

In contrast, the situation of Hang Seng Bank is better, Li Hualong attends the board of directors of Hang Seng Bank several times a year, and he asked Hang Seng Bank to support the development of Chinese-funded small and medium-sized manufacturing enterprises, including the Yangtze River Plastic Factory, which has been supported by Hang Seng Bank and has grown rapidly.

Later, the media analyzed the internal and external causes of the outbreak of the run on Liao Chong Hing Bank, the internal cause was that the bank had operational problems, and the external reason was that the two companies, Kowloon Motor Bus and Jardine Matheson, had issued new shares and went public, and a large amount of funds had flowed into the stock market, resulting in a shortage of funds in the banking system.

In the first five months of 1961, the prices of most stocks rose by 20 to 50 per cent, and the public rushed to subscribe to all the newly listed shares.

All subscribers, whether they can buy the shares or not, must pay their brokers by cheque, and the listing of the British-owned foreign firm Jardine Matheson has resulted in about $898 million in cheques having to be cleared by the banking system. This puts pressure on the banking system, especially for small and medium-sized banks, which are strapped for cash.

On June 14, Liao Chong Hing Bank was plagued by unfavorable rumors and rumors, and was run on by a large number of depositors, and about 3 million yuan was withdrawn on the same day.

By the 15th and 16th, the depositor run entered a climax, and the head office of Des Voeux Road West on Hong Kong Island and branches in Causeway Bay, Mong Kok, Sham Shui, Kowloon City and other branches were crowded with people who stayed up all night and waited on the streets to wait for withdrawal, most of which were clerks, workers, hawkers, overseas Chinese relatives and other middle and lower class citizens, who were extremely concerned about their hard-earned money, and the slightest disturbance could form mass hysteria.

According to reports, more than 20,000 depositors went to withdraw money in the first three days, and nearly 30 million yuan of deposits were withdrawn.

After the run, Liu Chong Hing Bank immediately turned to HSBC and Standard Chartered for help, and some people estimated that the two sides might reach a secret agreement with the real estate held by Liu Chong Hing Bank as security.

On the afternoon of June 16, HSBC and Standard Chartered issued a joint statement of "support for Liao Chong Hing Bank" and lent 30 million yuan to the bank to cope with the run. However, the Chinese version of the joint statement was withdrawn as soon as it was published, and for a time it caused confusion because of an error in the translation of the Chinese version.

The original text in English stated that HSBC and Standard Chartered had made certain arrangements that "resulted in the Liu Chong Hing Bank Limited incident being fully prosecuted".

However, the Chinese version was translated as "placing the business of Liu Chong Hing Bank Limited under the control of HSBC and Standard Chartered".

After the erroneous translation was published, Liao was nervous, believing that the two note-issuing banks were going to annex his assets.

On June 17, the rush gradually subsided.

The run on the crisis hit Liu Po Shan and Liu Chong Hing Bank very hard, and a month later, Liu Po Shan died of cerebral hemorrhage.

The Hong Kong media called it "the biggest banking storm in Hong Kong's history" and "an unprecedented banking storm".

The banking storm also affected Hong Kong's stock market, and the bull market ended in less than half a year.