In mid-October, Jianing Group made a rare announcement to cancel the distribution of 'interim dividends', replacing it with 10 shares and 1 bonus share, and preparing to issue 500 million preferred shares to raise HK$500 million.

The move immediately exposed the plight of Jianing Group, whose share price plummeted, falling by 30% in one day. As a result, the entire Hong Kong stock market also fell sharply, with the Hang Seng Index plummeting by 9.5%, easily breaking the 800-point mark, which is regarded as a 'strong line of defense', and the total value of the stock market lost HK$15.2 billion.

However, the first to suffer was the good brother of Jianing Group - Yida Investment.

On November 1, Yida Investment announced its liquidation, and the company's chairman Zhong Zhengwen absconded from Hong Kong, leaving behind 21 Hong Kong dollars in debts and other guarantees of 1.6 billion Hong Kong dollars. Because the Hong Kong government followed the "hereditary debt" precedent in the 'Qing Law' retained by Hong Kong and British law, the court immediately detained Chung Zhengwen's son and prepared to serve his sentence in Stanley Prison.

With Zhong Zhengwen's escape, everyone in the Hong Kong business community knows that Yida and Jianing are twin brothers, Zhong Zhengwen and Chen Qingsong have teamed up many times and fought hotly; Yida is so bad, Jianing Group is not much better, even if Jianing Group has the support of overseas consortiums, it is not enough to say that it has no problems.

As a result, the Securities Department rejected Jianing's rights issue fundraising plan and began a financial investigation into Jianing Group.

For a while, Jianing and Yida had problems one after another, and there was a big real estate friend, Land, who was already trembling!

Hongkong Land's liabilities are as high as more than HK$18 billion, and if it is delayed until next year, the total liabilities will be as high as more than HK$20 billion. This amount of liabilities far exceeds the value of Hongkong Land's assets.

Victoria Harbour Centre.

In an office building, Lin Zhichao and his five sons - Lin Ruihuan, Lin Ruijiang, Lin Ruihai, Lin Ruikai, Lin Ruicheng, plus his brother-in-law - Lin Benfeng, held a meeting in the conference room.

Lin Zhichao first said: "The goal of Octopus Finance is to set up a bank. Of course, it is not to upgrade Octopus Finance to a bank, which is too cumbersome and time-consuming, but to prepare to buy a bank in Hong Kong. This crisis will lead to a banking crisis, and that's when we can do it. So Bentoyo, you have to get ready! ”

Lin Benfeng was shocked in his heart, he admired his eldest brother, the ability of this unknown prophet is legendary.

"Well, I have started to recruit professional talents to join, but to the outside world - we Octopus Finance Company want to upgrade the bank."

Lin Zhichao nodded, there is nothing wrong with this, after all, if you don't say this, many talents will not join. If this is said, coupled with Lin Zhichao's influence, banking talents will be willing to join.

Octopus Finance Company, on the other hand, has a glorious history, in the early days it was a financial company formed by Cheung Kong Group and the Canadian Imperial Commercial Company, and its business at the beginning was housing mortgages, and it also absorbed deposits (it could not open a branch, but it could absorb deposits privately), and later invested in the Saisai Lake real estate project.

At the beginning of this year (1982), Lin Zhichao carried out an 'equity adjustment' of Octopus Finance Company, and the Canadian Imperial Bank of Commerce withdrew (having completed its mission - to gain a foothold in Hong Kong).

The shareholding structure of the new Octopus Finance Company is: Cheung Kong Group, Cheung Kong Industrial Group, Global Group, Wharf Group, and Media Group, each of which holds 10% of the shares; Harbour Investment holds 30% of the shares, and Lin Zhichao's family office holds 20% of the shares.

And his brother-in-law, Lin Benfeng, was also invited to come over as the chief executive officer to prepare for the next acquisition of the bank. Lam started out as a mid-level manager at HSBC, and in recent years has been a vice president at Harbour Investments and has pursued overseas studies, so he has won the trust of Lam.

Lin Zhichao nodded and said, "Regarding the development of the bank, my idea is to absorb a number of 'problem banks', carry out rectification and merger, and eventually reorganize into Octopus Bank. Don't look at the problem bank is losing money and needs to inject capital to save it, but if it is rescued by the Hong Kong government, HSBC, or Standard Chartered, and then transformed, in the end they will change hands and sell it at a profit. ”

In the previous life, the Hang Lung Bank and the Overseas Trust Bank, which were received by the Hong Kong government, all made money from above. So as long as it is not too big a loss, as long as it survives the crisis, it may soon be profitable.

Lin Benfeng said: "As long as the financial strength is sufficient, coupled with an excellent banking system and management plan, it is not a problem to rescue a bank. In fact, many banks have failed, mostly in the collapse of reputation, and the boss of your credibility is no less than HSBC, so the acquisition of banks on the verge of bankruptcy is indeed the best way to expand. ”

Subsequently, Lin Zhichao said to his five sons: "You don't need to worry about the bank's affairs for the time being, just do your own essential work." ”

"Yes, Father!"

Everyone understands that my father invested five group companies in Octopus Finance Company in the hope of building a family bank, and at the same time, he also hoped to use this bank to unite the feelings of the five brothers.

As for the other two brothers, their careers are overseas, so of course they won't join.

Subsequently, the meeting ended.

Lin Zhichao and Lin Benfeng stayed behind and held talks.

"At present, the capital of Octopus Finance Company is 200 million US dollars, and the fall of the Hong Kong dollar is a foregone conclusion, so it depends on whether it will plummet next year! Therefore, there is no need to rush to invest in matters, and it is more important that the bank's preparation work should be done well! ”

"I understand that we will look for some senior talent to join us."

"Well, you look for it first, and if there is a place where I need to come forward, let me know."

"No problem!"

Lin Benfeng knows that his eldest brother's strength, if he enters the banking industry, he can simply become a large local bank in one fell swoop.

"Pay close attention to Hang Lung Bank, I think it must be the first thing to happen! Of course, I only need to understand Hang Lung Bank, and I have a sense of when to make a move. ”

"Okay"

Lin Benfeng is used to his boss's prediction, but Hang Lung has indeed surfaced problems.

Meeting room at Hutchison Whampoa.

Lin Zhichao is holding a meeting with a group of high-level executives, including CEO Richard Richard, business director Xia Boyin, political director Peter Wei, director Mai Lisi and other senior executives, more than a dozen senior executives are all foreigners.

If this kind of scene is reported by the media, it will definitely have the meaning of 'greatly boosting the prestige of the Chinese people'.

In fact, as early as the fifties and sixties, Lin Zhichao had already used Chinese as executives—Chris, the president of Victoria Harbour Investment at the time, was the first.

"I don't agree with the acquisition of United States Cold Storage. Rather than expanding overseas, Hutchison Whampoa's top priority should be to prepare for the privatization of its four listed companies. At the beginning of the meeting, Lin Zhichao said directly.

United States Cold Storage is a public cold storage logistics company in the United States. The management, led by Richard, recently intended to buy the company.

When Richard's face suddenly became a little ugly when he heard this, they thought that this acquisition was very beneficial to Hutchison Whampoa.

"Sir Lam, with the outbreak of the Hong Kong crisis and the uncertain future, our management has agreed that Hutchison Whampoa should focus on overseas!"

The meaning of his words obviously has the meaning of 'threat', and the hole card is that the foreigner management has reached a 'consensus'.

Lin Zhichao smiled lightly: "In six or seven years, many companies thought like this. And the Jardine Department has always thought so. How did it turn out? In such an environment, it is irresponsible to shareholders not to make impulsive decisions. You think I didn't think of it today? Why is Hutchison Whampoa's cash flow converted into US dollars and deposited in the bank? ”

After speaking, he glanced at more than a dozen high-level officials, and soon many foreigners lowered their heads. Clearly, they were coerced by Richard.

Lin Zhichao knows it in his heart, at most, the 'Big Three' of Richard, Xia Boyin, and Peter Wei have a rebellious heart, and it can also be said that they have 'different political views'.

Seeing that Lin Zhichao's momentum was overwhelming, Richardin immediately stood up and said: "At this time and that time, this time Britain is facing a different China, so the Hong Kong issue is more complicated. ”

Lin Zhichao said: "There are some questions that need to be thought about in depth! In any case, Hutchison Whampoa's current work is still focused on Hong Kong. As for overseas development, it will be a matter of having enough cash in hand in the future. ”

Richard said unrelentingly: "Sir Lin, the management of Hutchison Whampoa is in our hands, and we hope that Cheung Kong Group will only be the major shareholder, and we will also consider all shareholders!" ”

Lin Zhichao looked at Richard, this is simply attacking himself, it seems that Richardin has swelled in the past two years.

Richard, Xia Boyin, and Peter Wei have no problem with their own abilities, so Lin Zhichao has also trusted these three in the past two years. That's why they're so inflated today.

"President Richard, I want you to pay attention to your words, Cheung Kong Group owns 47% of the equity of Hutchison Whampoa, which is completely different from HSBC back then! To put it bluntly, Cheung Kong Group can increase its stake to 51% at any time, or even privatize it immediately. Therefore, we are the absolute controlling shareholder, and you are only the managers I invited, and more importantly, the shareholders of Hutchison Whampoa must be more supportive of me, if not, you can try. ”

He is not Li Jiacheng, and he needs to wait for Hutchison Whampoa to pay dividends before increasing his holdings.

Richard's face immediately flushed, and he immediately softened: "I'm sorry, Sir Lin, I apologize for my recklessness just now!" ”

Lin Zhichao nodded and said: "I understand everyone's thoughts, but I have been able to dominate the business world for more than 30 years, never by luck, but by thinking." So the more we are in this situation, the more we have to calm down and think about it, and don't make impulsive decisions. Hutchison Whampoa now has ample cash flow to privatize its four listed companies, and this is the focus for next year. ”

Hutchison Whampoa's current cash flow has reached more than 300 million US dollars, almost more than 2 billion Hong Kong dollars. Together with bank loans, it is enough to privatize four listed companies.

Importantly, Hutchison Whampoa's debt ratio is extremely low!

After the adjournment of the meeting.

Richard, Xia Boyin, and Peter Wei saw that Lin Zhichao had already left the Hutchison Building, so they dared to get together to discuss things.

"What to do? Do we have the strength to fight back? Xia Boyin said sadly.

Richardin shook his head and said: "Looking at Lin Zhichao's performance today, if we don't listen to him, we would rather privatize Hutchison Whampoa than just be a major shareholder." ”

Xia Boyin said: "In this way, Cheung Kong Group wants to take charge of Hutchison Whampoa? In this way, we should not obey the orders of Cheung Kong Industrial. Why? Hutchison Whampoa was originally a company managed by our British, and he Lin Zhichao just relied on his relationship with HSBC to take it down, and now he wants to cross the river and tear down the bridge? ”

The three then fell silent, thinking about what to do.

Subsequently, Peter Wei said: "I have a way, at least I can prevent Cheung Kong Group and Lin Zhichao from taking power in Hutchison Whampoa!" ”

"What's the solution?"

As the director of political affairs, Peter Wei is in charge of personnel and other work to put it bluntly, and he said with a hint of ruthlessness: "In recent years, Lin Zhichao has been courting the Chinese senior staff of Hutchison Whampoa and its subordinate enterprises, and we only need to squeeze out these people, otherwise they will be connected with Cheung Kong Group and let them leave." In this way, Cheung Kong Group and Lin Zhichao will have to continue to rely on us, and dare not fall out with us! ”

Richard's and Xia Boyin's eyes lit up, this is indeed a solution.

"That's how it was decided!"

"Give Lin Zhichao a little color!"

The three of them lost face at today's high-level meeting, and they didn't dare to confront Lin Zhichao, but when they thought of using this small means, they finally felt that they had found the field for a while.

The other side.

Lin Zhichao and Mai Lisi also talked on the way back.

Mai Lisi said: "Boss, now that everyone has different political opinions, I'm afraid it will be difficult to work together!" ”

After he joined Cheung Kong Group, he was highly regarded and is still a director of Hutchison Whampoa.

It is equivalent to that he is Lin Zhichao's pawn in Hutchison Whampoa.

Lin Zhichao said: "It's not that they don't agree with politics, it's that they are too short-sighted!" I also had plans to invest overseas, but they shouldn't have brought it up at this time. ”

Meris nodded, then said, "So what now?" ”

Lin Zhichao said: "You can help me make an appointment with Ma Shimin in Singapore, and say that I want to talk about the acquisition of his company!" ”

Mai Lisi asked curiously: "Does the boss want Ma Shimin to manage and remember Whampoa?" ”

Lin Zhichao nodded and said: "Ma Shimin has a tenacious character, which I like more. Not surprisingly, Richardin and others will also fall out with us completely, and it is expected that those Chinese senior staff will have to be squeezed. ”

Myris had to admire his boss, and he felt sorry for Richardin and others, and he couldn't see the situation clearly.

Although Cheung Kong Group does not have an absolute stake in Hutchison Whampoa, it also has a 47% stake. More importantly, Cheung Kong has a cash flow of nearly HK$10 billion, and can increase its stake in Hutchison Whampoa at any time, or even privatize it.

Of course, privatization is not necessary, and even if the shareholding is increased to 51% now, because the stock price has not been high in the past six months, the shareholders will not hand over their chips if they are privatized at the highest price. In this way, it is possible to circumvent the regulations on the full acquisition. (End of chapter)