In Hong Kong, we build a global business empire

Chapter 704 Motorola's stock price continues to plummet, Robert Galvin's questioning!

On the morning of August 18, Lin Haoran personally went to the airport to see Ma Shimin off to Singapore.

Only after watching him board the group's business jet did I return to the Kang Le Building.

Back at the Kang Le Building, Lin Haoran didn't rush back to his own office, but instead went to the Hengsheng Group's office.

The three banks have been combined to form Hengsheng Group for some time now.

During this period, the business of the three banks under Hang Seng Group gradually stabilized.

When Lin Haoran chose to locate the Hengsheng Group headquarters office in the Kangle Building, it was for convenience, and it is indeed convenient now, as he doesn't have to travel around.

Although several of his companies are headquartered in Central, Central is not small, and as Hong Kong's central business district, it is often congested. Lin Haoran is too lazy to travel around for anything that is not particularly important.

Upon arriving at He Shanheng's office, I saw him looking at a document through the window.

He knocked on the door and, without looking up, said, "Come in."

He assumed it was a subordinate coming in to report on work.

Lin Haoran stepped into the office with a smile and looked around.

This office was basically decorated according to the original office of the chairman of Hengsheng Bank, and it is clear that the other party is already used to this style.

Seeing that the visitor remained silent for a long time, He Shanheng finally looked up.

Upon seeing that it was Lin Haoran, he quickly stood up, walked out of his seat, and said, "Haoran, it's you. Why didn't you tell me you were coming?"

Lin Haoran smiled slightly, casually pulled up a chair from the side and sat down, then said with a smile, "Uncle He, I just came to take a look around, there's nothing special going on."

“Perfect timing, I was just about to give you a report on my recent work.” He Shanheng pulled up a chair and sat down, holding a document in his hand.

"Yes, Uncle He, please tell me." Lin Haoran nodded. Since the establishment of Hengsheng Group, he hadn't paid much attention to this matter.

"I've been following up on the progress of the banknote issuance rights. Standard Chartered Bank hasn't been delaying us. According to Mr. Brown's feedback, we're just waiting for the final qualification review by the Banking Authority under the Financial Secretary of Hong Kong before we can officially obtain the banknote issuance rights. However, this might take some time," He Shanheng said, opening the documents in his hand and pointing to several key data points.

Lin Haoran nodded slightly, tapping his fingers lightly on the armrest of his chair. After a moment of thought, he asked, "Is Standard Chartered Bank being so cooperative?"

During this period, Brown had been plotting with Li Jiacheng and others to deal with him. Since Brown was involved, it was clear that he wanted to increase Standard Chartered Bank's market share.

“They have no choice but to cooperate. If they really can’t do it, then after the three-month period, they will have to compensate us HK$3 billion. That’s real money. Given Standard Chartered’s current predicament, let alone HK$30 billion, even HK$30 million would be a huge loss for them,” Ho Shan-heng said with a loud laugh.

Lin Haoran echoed, "That's true. It's fortunate that we set up this compensation fund for Standard Chartered Bank back then. Otherwise, given their style, they would definitely have tried every means to delay or even back out."

He Shanheng nodded and continued, "However, the Financial Secretary has been delaying the approval, and I suspect that someone may be putting pressure on us behind the scenes."

“This pressure isn’t on us. If the Governor’s Office doesn’t agree, it shouldn’t be us who’s anxious, it should be Standard Chartered Bank. They had to pay the price for taking over Huifeng Bank. They’ll handle this for us, so we don’t need to worry,” Lin Haoran said with a smile.

The HK$30 billion compensation is enough to make Standard Chartered Bank's top management uneasy.

Lin Haoran naturally understood that in this game, their side had already gained the upper hand.

He Shanheng nodded thoughtfully: "That's right. I've already prepared for our side to obtain the right to issue currency. However, I hope that the right to issue currency will fall to Heng Sheng Bank. After all, Heng Sheng Bank's reputation and influence in Hong Kong are higher than those of the Bank of East Asia. I just don't know if the Governor's Office will allow it."

The original contract with Standard Chartered Bank stipulated that Bank of East Asia would obtain the right to issue banknotes, and now it is indeed a difficult problem to change it to Hang Seng Bank.

He Shanheng was, after all, the founder of Hengsheng Bank, and naturally hoped to leave this honor to his "own son".

Lin Haoran understood his feelings. For him, it didn't really matter which bank got the right to issue banknotes, since East Asia Bank had already been privatized and Hengsheng Bank was about to complete its privatization process. They were all his own businesses.

However, he still decided to grant He Shanheng's wish.

"Uncle He, I'll handle this matter." Lin Haoran pondered for a moment and said, "Once the authority to issue currency is confirmed, I will personally visit the Governor's Office. At that time, I think this issue shouldn't be a big problem."

A hint of gratitude flashed in He Shanheng's eyes: "Then I'll trouble you."

"For me, whether it's Bank of East Asia or Hengsheng Bank, I am the beneficiary. Of course, Uncle He, I understand that as the founder of Hengsheng Bank, you inevitably have some bias towards Hengsheng Bank."

"But when managing the three banks, I hope you will try your best to treat them fairly and justly, instead of channeling all the group's resources to Hengsheng Bank. That's not what I want to see." Lin Haoran's tone was gentle, but the weight of his words made He Shanheng's expression stiffen.

"Haoran, you're right." He Shanheng put down the documents in his hand and said seriously, "It was my oversight. As the head of the group, I should indeed treat everyone equally."

Lin Haoran nodded slightly: "It's good that Uncle He understands. Actually, after Hengsheng Bank obtains the right to issue currency, it will naturally have more development opportunities. However, East Asia Bank and Daoheng Bank also need to maintain their competitiveness so that the entire financial group can develop healthily."

"Yes, my goal is not just to expand into Hong Kong, but to develop Hengsheng Group into a top global banking institution, just like Citibank."

Haoran, I've recently been looking for banks in Southeast Asia, and I'm considering acquiring OCBC Bank in Singapore. If successful, our Hengsheng Group's strength in Southeast Asia will be further enhanced. In addition, with your increasing investments in Southeast Asia, the development of the banking industry there should also be strengthened.

Although Bank of East Asia and Heng Sheng Bank both have branches in Southeast Asia, the market there isn't very large. The Southeast Asian market is huge and deserves our attention. Furthermore, the Southeast Asian market can be considered a springboard for our Heng Sheng Group. The better we develop in Southeast Asia, the easier it will be for us to expand into other markets.” He Shanheng explained his recent plans.

“Overseas Chinese Bank?” Lin Haoran murmured.

He knew that there was also a branch of OCBC Bank in Hong Kong.

"OCBC was the leading financial institution in Singapore in the 70s, but in the 80s, another Singaporean bank, UOB, surpassed OCBC and became the second largest local bank in Singapore."

I heard that because the market size has been surpassed, some major shareholders of OCBC Bank are considering selling their shares. In my opinion, this is a very good opportunity. As long as we acquire the shares of these shareholders, we can take control of this Singaporean bank with a history of nearly 70 years.

"With our resources, it won't be difficult for OCBC to regain its position as the largest bank in Singapore!" He Shanheng said as he handed the brochure to Lin Haoran.

Lin Haoran flipped through a few pages, and with He Shanheng's explanation, he gained a certain understanding of the situation there.

He was very familiar with Hong Kong in his previous life, but not so much with Singapore. He only knew that Singapore's future would surpass that of Hong Kong.

Lin Haoran closed the file booklet, a glint of shrewdness flashing in his eyes: "Uncle He, this plan is very forward-thinking, but acquiring OCBC Bank is no small matter. Have you made sufficient preparations?"

He stood up and paced around the office a few times: "First, we need to find out the backgrounds of those shareholders who intend to sell their shares; second, we need to assess the Monetary Authority of Singapore's attitude towards this matter; and most importantly..."

Lin Haoran suddenly turned around and looked at He Shanheng, continuing, "We need to ensure that we can truly control the bank's operations after the acquisition, rather than just being a financial investor."

He Shanheng nodded in agreement: "I have already sent people to make initial contact. Two of the major shareholders are older generation overseas Chinese who are no longer capable of running the bank. Moreover, our goal is to control at least half of the shares, to achieve absolute control. As for the Monetary Authority of Singapore..."

He lowered his voice: "I heard they are hoping to bring in foreign investment to revitalize competition in the local banking sector."

“This is good news.” Lin Haoran sat down again. “However, we need to act quickly. If the news leaks out, Standard Chartered will definitely get involved.”

Standard Chartered Bank, which acquired Huifeng Bank, may seem to be coexisting peacefully with Hengsheng Group in the short term, but in reality, they are certainly unwilling to be suppressed by Hengsheng Group indefinitely.

Once they realize Hengsheng Group's intentions, they will definitely try to sabotage it.

He Shanheng nodded solemnly: "That's true. However, as far as I know, Standard Chartered is currently busy integrating Huifeng Bank's business and should not have time to attend to other matters in the short term."

"Don't underestimate our opponents. Although they are currently integrating Huifeng Bank's business, they can't stay idle at all. They're like fleas, trying to stir up trouble in secret!" Lin Haoran said, shaking his head.

He then revealed what he had learned from intelligence about how Brown, Li Jiacheng, Laurence Kadoorie, Henry Keswick, and others had been secretly targeting him.

Despite being crushed in market share by Hang Seng Bank, Standard Chartered Bank has a deep-rooted foundation and will not sit idly by.

Hong Kong's market is too small. Although Hengsheng Group currently holds a dominant position, ambitious companies like Standard Chartered Bank, after acquiring Huifeng Bank, have also grown increasingly ambitious. They certainly are not willing to let the market remain stagnant. This financial game has only just begun.

"In that case, it would be best to speed up the acquisition of OCBC Bank. Indeed, I underestimated Standard Chartered Bank. Haoran, your reminder is very timely."

Although Standard Chartered Bank is currently facing a cash crunch due to its acquisition of HSBC, it does not need to go it alone. It can join forces with other banks to participate in the acquisition of OCBC Bank.

Even Jardine Matheson might become their ally; they can't just stand by and watch our Hengsheng Group continue to grow stronger!" He Shanheng exclaimed.

"Yes, just keep an eye on this matter. If it weren't for the intelligence I received, I wouldn't have expected that Standard Chartered Bank hadn't even sorted out Huifeng Bank's resources yet, and Brown was already eager to join forces with other forces to deal with me. It's normal that you didn't know," Lin Haoran nodded and said.

Fortunately, he had laid a tight net throughout Hong Kong long ago, and his intelligence sources were extremely well-connected; otherwise, he might have been caught off guard by these people.

Next, He Shanheng talked about the issue of banks jointly paying salaries with enterprises.

A few days ago was the day when Hongkong Land Group paid salaries. As it had been agreed beforehand, they would first test the waters with middle and senior management, transferring their salaries directly to their bank accounts.

The test results were very good. Middle and senior management cooperated well with this method of paying salaries, and no errors occurred.

Of course, this is also related to the small-scale testing conducted by Bank of East Asia.

In addition, the middle and senior management did not object because their salaries were already relatively high.

However, lower-level employees may not be so cooperative. Nevertheless, reform is inevitable; it cannot be stopped simply because some employees disagree.

Regardless, it involves the payment of salaries to hundreds of thousands of employees, which could be quite troublesome at that time.

Fortunately, there are now three banks that can handle this matter, which will greatly reduce the pressure on Bank of East Asia when all salaries are paid via bank card transfer next month.

After chatting with He Shanheng for more than an hour, Lin Haoran made a special trip to the headquarters building of Hong Kong Telephone Company.

Tomorrow, the results of the lottery for the first batch of wireless phone subscribers will be announced. I wonder how well the preparations are going on the other side.

Lin Haoran learned from David that real-time reservations started on the 15th. The number of users who made reservations on the first day was as high as 5233, the second day 2536, and the third day 1320. In three days, the number of reservations reached a staggering 9089.

In just three days, the number of people who placed deposits and made reservations exceeded nine thousand.

This data, once released, will absolutely shock the world.

After all, this is just a small city with a population of only five million, and prices are high, yet the economy has exceeded nine thousand people in just three days.

Hong Kong's purchasing power is indeed beyond expectations.

If it weren't for the initial user quota of 3,000, Hong Kong Mobile Communications Company would have made a fortune, and Motorola would obviously have made the most money.

The first lottery only had one hundred slots available.

With over nine thousand people vying for only one hundred spots, the odds of winning are extremely low.

Needless to say, scalpers will drive up the price of mobile phones to exorbitant levels.

Today is the fourth day, but all the service centers have stopped accepting reservations.

It takes a day to determine the list of the first 100 lucky users in this lottery.

The daytime passed quickly, and Hong Kong gradually entered the night.

Meanwhile, it was morning in New York, and Lin Haoran finally received a call from Motorola President Robert Galvin.

Clearly, the Motorola president only learned of the dramatic drop in Motorola's market value after returning to the United States.

Today, Motorola's market value fell by about 8% on top of the previous two days.

Although the decline has lessened considerably compared to the previous two days.

However, Motorola's market value has fallen from its peak of nearly $50 billion to around $31 billion today.

18% on the first day, 15% on the second day, and 8% on the third day.

For three whole days, Motorola's stock price still hadn't stopped falling.

This is definitely a major blow to Motorola's influence.

Therefore, Robert Galvin, who had just returned to the United States, had not even left the airport when he learned from the airport newspaper that Motorola's stock price had continued to plummet in the past two days, so he personally called Lin Haoran.

"Mr. Lin, what does it mean that your company has postponed the lottery?" Robert Galvin asked in a questioning tone.

It's hard for anyone to accept that after the release of a new product, the stock price not only failed to rise, but instead plummeted.

He returned from Hong Kong full of joy, thinking that Motorola's stock price would surely soar once the lottery results were announced on the third day.

As a result, after returning to the United States and seeing the newspaper at the airport, he learned that Lin Haoran had unilaterally changed the original three-day booking period to five days, which put further pressure on Motorola's stock price and caused it to plummet.

This is definitely the most severe crash in recent years. Motorola seems to have fallen into a bear market, and many investors have sent letters to Motorola to question them.

Lin Haoran was already prepared for Robert Galvin's call.

While holding the phone, he said with a smile, "Mr. Galvin, we have already reported to Motorola that the reason for the delay in the lottery results is because there were too many people who made reservations."

Mr. Galvin is probably already aware that in just three days, we've received over nine thousand reservations, and the deposits alone have exceeded ninety million Hong Kong dollars. It's clear that our collaboration in Hong Kong has been a resounding success!

“Yes, I didn’t expect so many people to make reservations. There are definitely more wealthy people in Hong Kong than I imagined.” Robert Galvin certainly agreed with this.

You should know that he had been worried about whether those three thousand spots would sell out.

As a result, just by making a reservation, which requires a deposit of HK$10,000, the number of people has exceeded 9,000 in just three days!
Robert Galvin indeed believes that choosing to collaborate with Lin Haoran was the right decision.

However, he then thought of Motorola's dismal stock price and couldn't help but say, "But, Motorola's stock price..."

Lin Haoran interrupted him directly, and said with a smile, "Mr. Galvin, it's like shooting an arrow. The greater the pull back of the bow, the faster the arrow leaves the string and the farther it flies."

Although Motorola's stock price appears to be plummeting right now, this is only temporary. The shareholders' pessimism is precisely the best preparation for a future surge in the stock price. Isn't this a way of weeding out investors who truly have confidence in Motorola?

Robert Galvin on the other end of the phone was silent for a moment, then chuckled softly: "Mr. Lin, your analogy is quite interesting. However, the board of directors probably needs a more practical explanation."

“The actual data speaks for itself,” Lin Haoran replied calmly. “I have already arranged for Mr. David to prepare a detailed reservation report, including user profile analysis and market expectations. This report will be sent to New York as soon as possible after the lottery ceremony tomorrow.”

“This,” Galvin said, clearly surprised. “You’ve thought this through very well.”

"In addition," Lin Haoran changed the subject, "I suggest that Motorola launch a stock buyback program while the stock price is low. After the booming sales data in the Hong Kong market is released, the rebound in stock price will bring very considerable profits."

At this moment, it is already morning in the United States, and in a little over an hour, a new day of stock market activity will begin.

Lin Haoran doesn't mind Motorola entering the fray and competing with them for Motorola's shares, because just yesterday, Huanyu Investment Company acquired another 4.65% of Motorola's shares.

Including the 4.47% acquired in the previous two days and the 5.23% previously acquired, Huanyu Investment Company now indirectly holds 14.35% of Motorola's shares.

According to the shareholder list released by Motorola, Lin Haoran's shareholding has even surpassed that of the original largest shareholder of Motorola, making him the new largest shareholder of Motorola.

Of course, Lin Haoran had no designs on Motorola.

Even if he had designs on it, he knew that the US government would never allow him to control such an important technology company as Motorola.

Therefore, this time, he only planned to quietly take advantage of the opportunity when a certain force was shorting Motorola to buy at the bottom, and then cash out and leave after the stock price rebounded.

Of course, he would hold a portion of the shares for a while, because Robert Galvin had previously invited him to serve on the Motorola board of directors, and he had also disclosed to him that he held 5.23% of the shares. If he sold them all at once, it would be difficult to explain to Robert Galvin.

Anyway, Motorola's stock price won't fall much in the next ten years or so; it's just that the rate of increase won't be as fast as those of the other companies that Lin Haoran is optimistic about.

At this moment, Robert Galvin no longer harbored any resentment towards Lin Haoran.

Yes, Motorola's stock price has fallen because the market doesn't trust them, so they can't be blamed.

When they release the booking data, won't that be a slap in the face to those investors who don't trust Motorola?

Who told you not to trust Motorola?

If you have to blame someone, you can only blame yourself for not having a long-term vision.

Robert Galvin's tone softened noticeably upon realizing this: "Mr. Lin, you're right. We should indeed speak with facts. We hope you can send us the complete data as soon as possible after the draw ceremony tomorrow."

"Of course, Mr. Galvin. Hong Kong Mobile Communications will send the data report to you as soon as the data is compiled tonight. You can rest assured about that. You probably haven't returned to the company yet, right? Maybe you've already received the data!" Lin Haoran laughed heartily.

He could tell from the phone call that Robert Galvin was in a rather noisy place, and that he could even hear the radio occasionally.

Calculating the other party's flight time, it's clear they've just gotten off the plane and are probably still at the airport.

“In that case, Mr. Lin, I won’t talk to you any longer. I need to get back to the company as soon as possible to handle some work. Mr. Lin, our cooperation this time went very smoothly. I look forward to our next cooperation.” After saying that, Robert Galvin hung up the phone in a hurry.

Hearing the busy tone on the other end of the phone, Lin Haoran smiled. The other party, who had originally called in anger, had hung up with a hearty laugh.

Clearly, Lin Haoran's answer satisfied the other party.

If Ma Shimin were here, he would surely be amazed by Lin Haoran's negotiation skills. He defused the Motorola president's anger with just a few words and even made him feel grateful to Lin Haoran.

In reality, this was simply because Lin Haoran had accurately grasped the other party's psychology.

Galvin was most concerned about two things: the stock price and Motorola's prospects in the Asian market.

Lin Haoran gave him the answers he wanted most.

(End of this chapter)