In Hong Kong, we build a global business empire

Chapter 717 A single announcement shook Hong Kong; even Standard Chartered Bank backed down!

The day after Lin Haoran reached a deal with Laurence Kadoorie, on August 27th at noon, the Xiangjiang Hotel issued another announcement.

The announcement was simple, roughly stating that Mr. Lin Haoran and Mr. Laurence Kadoorie reached a series of agreements after friendly negotiations.

In this transaction, the Kadoorie family demonstrated great sincerity and foresight. After careful consideration, the Kadoorie family decided to sell all of its shares in Hong Kong Grand Hotel to Hongkong Land Group.

Furthermore, in order to promote the healthy development of Hong Kong's business and facilitate a more rational allocation of resources, the Kadoorie family completed this share transfer at 60% of the market price.

This announcement, seemingly without belittling either side, actually praised the Kadoorie family for their understanding of the bigger picture and prioritizing the overall situation.

But anyone with a discerning eye can see that behind these seemingly simple words lies a breathtaking business game.

Selling shares at a 40% discount means the Kadoorie family suffered heavy losses in this transaction, which is undoubtedly a bombshell and is destined to cause a huge uproar in the entire Hong Kong business community.

After all, this is the Kadoorie family, a super-rich family in Hong Kong with nearly a century of history.

From the late 19th century to the 20s, the Kadoorie family has long been one of the most influential business families in Hong Kong.

It is completely different from British-owned conglomerates such as Jardine Matheson and Huafeng Group.

Both the Jardine Matheson Group and the Huifeng Group are large business alliances composed of multiple families and companies, with complex internal interests, and decisions often require lengthy negotiations and weighing of options.

The Kadoorie family, with the family as its core, has built a vast and stable business empire through generations of wisdom and hard work in multiple fields such as energy, real estate, and hotels.

However, it's not hard to imagine what kind of hidden story lies behind the fact that such a powerful and influential family in Hong Kong's business world sold its shares in Hong Kong Grand Hotel at such a low price in this transaction!
A 6% discount! A little calculation shows that the Kadoorie family lost at least HK$1.5 million!
Given the Kadoorie family's past shrewdness and prudence in business decision-making, such a huge concession is by no means accidental.

The most likely explanation is that the Kadoorie family has backed down to Lin Haoran!

If that's really the case, then selling it at a 40% discount is not hard to understand.

As a result, after the announcement from Xiangjiang Hotel was made public, many reporters flocked to the headquarters of Xiangjiang Hotel, Hongkong Land Group, and CLP Power, among other places, in an attempt to obtain more firsthand information.

However, both Lin Haoran and Laurence Kadoorie tacitly chose to remain silent.

A reporter from the Hong Kong Commercial Daily waited outside the headquarters of CLP Power for an entire day, only to receive a cold response from a spokesperson for the Kadoorie family:

"This transaction is purely a business decision. The Kadoorie family and Mr. Lim have reached a consensus that they will each focus on their own business development in the future."

On the other hand, Hongkong Land Group seemed much more relaxed.

When pressed by reporters, Ma Shimin smiled slightly:
"The market has its own rules, and Mr. Kadoorie has demonstrated the wisdom and vision of an entrepreneur, which we respect."

His words clearly revealed his victorious attitude.

Although Laurence Kadoorie knew that Hong Kong Grand Hotel would announce that he had sold his shares to Hongkong Land Group, he did not expect that the other party would so shamelessly emphasize that the Kadoorie family sold them at a 60% discount.

Isn't this just making the Kadoorie family lose face in front of the entire Hong Kong?
The loss of the Peninsula Hotel in Hong Kong was already a major headache for the Kadoorie family, and now this happens again.

Don't the Kadoorie family have any pride?
However, even though they were furious, Laurence Kadoorie, and indeed the core members of the Kadoorie family, felt mostly helpless.

They couldn't do anything about Lin Haoran.

Otherwise, there's no need to admit defeat.

Should we confront Lin Haoran?

Come on.

Laurence Kadoorie had already suffered enough humiliation at Lin Haoran's hands the day before. He knew that seeking out Lin Haoran again would only bring further shame upon himself.

Although the Kadoorie family has agreed with Lin Haoran not to be enemies, it is clear that this does not mean that Lin Haoran will treat him well.

Therefore, Laurence Kadoorie could only remain silent in frustration.

He just hoped this matter would pass quickly, because no matter what it is, the heat of the moment will gradually fade over time.

At Standard Chartered Bank, Brown stared at the intelligence report in his hand, his face grim.

"The Kadoorie family actually conceded defeat without consulting us? Not only that, but they conceded in such a humiliating way, which is completely unlike the Kadoorie family's usual style!"

Li Jiacheng, along with Brown, Laurence Kadoorie, and Henry Keswick, formed an anti-Lin alliance with the aim of suppressing Lin Haoran and tearing pieces of flesh from him.

But now, the alliance has only just begun to act, and the Kadoorie family is already the first to surrender!

"Useless!" Brown slammed the file on the table, a glint of malice flashing in his eyes.

He still overestimated Laurence Kadoorie.

"Mr. Brown, what do we do now? The Kadoorie family has withdrawn, and our plans..." the assistant asked cautiously.

Brown said grimly, “The plan? Of course the plan must continue! The Kadoorie family is afraid of Lin Haoran. Now that things have come to this, is there any way out? Mr. Li Jiacheng and Mr. Henry Keswick have already spoken to me on the phone. They will absolutely not back down. We will all stand together!”

Brown became a major contributor to Standard Chartered's acquisition of HSBC after he facilitated the latter's acquisition.

After all, although Huifeng Bank suffered heavy losses in its commercial battle with Hengsheng Bank, it was still a much stronger bank than a weak one. After Standard Chartered Bank acquired Huifeng Bank, its strength naturally increased significantly.

This is why Brown's position at Standard Chartered Bank is now at its zenith, and he has even become a strong contender for the next chairman of the board.

Previously, he needed the approval of his headquarters in the UK to make important decisions in Hong Kong.

Now, he can even decide on many major strategic layouts in the Hong Kong market, and his word is law in the Hong Kong branch of Standard Chartered Bank. His power has reached an unprecedented level.

For him, this is the real person in charge.

As a result, their ambitions grew ever larger.

Brown is no longer content with simply being a regional head.

That's why he chose to join forces with Li Jiacheng and others to give it a shot.

If successful, then the position of the next Chairman of the Board of Directors of Standard Chartered Bank will be absolutely secure!
“Mr. Brown, we must be prepared for Mr. Lin’s retaliation. Our actions have certainly angered him. They have driven the Kadoorie family to this point, so they obviously won’t let us off easily,” a senior executive from Standard Chartered Bank said worriedly.

Although Brown was somewhat worried, he remained calm on the surface: "Retaliation? No matter how strong Lin Haoran is, he is still just a Chinese. The rules of Hong Kong are not up to him to decide!"
Moreover, now that Standard Chartered Bank has acquired Huifeng Bank, it has gradually absorbed Huifeng Bank's resources. The financial clients we retain are unlikely to leave. It's practically impossible for Hengsheng Group to continue expanding its market share; they should even be worried about us taking it away from them!

They were not unaware that Bank of East Asia was gradually eroding Huifeng Bank's market share; in fact, they were very aware of it.

But in their view, it is no longer possible for Hengsheng Group to continue its gradual expansion.

This can be seen from the fact that Hong Kong's financial industry is gradually stabilizing.

While Brown was going crazy over his ambitions, a high-level meeting was being held at Standard Chartered Bank headquarters.

The atmosphere in the conference room at Standard Chartered Bank headquarters was so heavy it was almost suffocating.

Since the successful acquisition of Huifeng Bank, Brown has been invited to every important meeting.

Even though Brown was far away in Hong Kong, he was involved through a conference call.

However, Brown was not informed of today's meeting.

Lord Derek Barber, Chairman of the Board of Directors of Standard Chartered Bank, stubbed out his cigar in the ashtray, raised his head, and looked at the senior executives of Standard Chartered Bank with a serious expression.

"Everyone, you should all know the news from Hong Kong. The 'Anti-Lin Alliance' formed by Mr. Brown and the Kadoorie family has failed after only taking its first step."

We have joined forces with Lin Haoran before, and everyone here knows how ruthless he is. So, should we choose to continue being enemies with Lin Haoran? That is the reason I have called this meeting today.

Undeniably, Mr. Brown played a crucial role in our acquisition of Huifeng Bank. However, the current predicament of the "anti-Lin alliance" he and another prominent Hong Kong businessman have led forces us to re-evaluate our relationship with Lin Haoran and our future strategic direction. Is it a mistake for Standard Chartered Bank to continue to antagonize Lin Haoran?

The meeting room was silent; everyone had their heads down, lost in thought.

After a moment, a senior executive broke the silence: "Lord, judging from the current situation, Lin Haoran's strength should not be underestimated. The Kadoorie family has a deep foundation in Hong Kong's business world, but they have all suffered losses in front of him."

Furthermore, given the cautionary tales of Jardine Matheson and HSBC, continuing to antagonize them would likely pose significant risks. In fact, I believe Standard Chartered Bank's current market share in Hong Kong is already quite impressive. While I would like to go further, I must possess the corresponding strength.

However, the price we paid for acquiring Huifeng Bank was too high. It will be difficult to recover without two or three years of careful management. Therefore, I do not recommend that Standard Chartered Bank provoke an enemy like Lin Haoran in Hong Kong.

Another senior executive echoed, "That's right, Mr. Brown's move was too impulsive. Although he has some power in the Hong Kong branch, this 'Anti-Lin Alliance' action was not fully evaluated by headquarters before it was launched. Now that the situation is out of control, we can no longer blindly follow."

However, some senior officials hold different opinions.

A young and ambitious executive stood up and said passionately, "Lord, we cannot back down because of temporary setbacks. Mr. Brown's efforts in Hong Kong have enabled us to successfully acquire Huifeng Bank and greatly increase our strength."

If we abandon our plan to suppress Lin Haoran now because of his strength and are afraid of him, wouldn't we be watching helplessly as we can only eat a small piece of such a big cake as Hong Kong?

Moreover, no matter how capable Lin Haoran is, he is still just a Chinese entrepreneur. In Hong Kong's financial landscape, Standard Chartered Bank has a deep foundation and extensive connections, as well as the support of the British government. We are not necessarily afraid of him.

His words had barely left his lips when they were met with murmurs from some people.

His supporters thought he made sense, while his opponents frowned, believing he was underestimating his opponents.

Soon, an old man spoke up: "I think that making enemies with Lin Haoran is a path to death. Have you all forgotten our current predicament just because we acquired Huifeng Bank?"
After acquiring Huifeng Bank, we advanced tens of billions of Hong Kong dollars in funds, which also put Standard Chartered Bank at risk of a broken capital chain at any time.

Under normal circumstances, this would not happen, but what if we completely offend Lin Haoran, and he collaborates with our competitors in the UK, plunging us into a financial crisis?

"At that time, we will be attacked from both sides and plunged into an abyss of no return. Lin Haoran's methods in the business world are obvious to all. He has won every battle and has never suffered a defeat. If we underestimate him, we will be digging our own grave."

Lord Derek Barber frowned slightly and fell into deep thought.

He was well aware that the old man's words were true; Standard Chartered Bank may seem to be enjoying great success now, but in reality, there are undercurrents swirling beneath the surface.

While the acquisition of Huifeng Bank enhanced its strength, it also burdened it with a heavy debt burden.

If we were to confront a formidable enemy like Lin Haoran head-on at this point, a slight misstep could lead to total defeat.

After acquiring HSBC, Standard Chartered Bank reached an unprecedented peak, and today it ranks among the top five banks in the UK.

Such a brilliant achievement has never been seen before.

Therefore, Lord Derek Barber does not want Standard Chartered's current success to be just a flash in the pan.

"In your opinion, if we are unwilling to be enemies with Lin Haoran, but Mr. Brown's actions have clearly angered him, how should we deal with the current situation?" Lord Derek Barber spoke slowly, his gaze sweeping over each of the high-ranking officials present.

The more senior executive spoke again: "Lord, I think we should immediately cease our association with the 'Anti-Lin Alliance' and send a goodwill signal to Lin Haoran."

At the same time, we sent a senior British official to Hong Kong to communicate with him and express that we had no intention of being his enemy. All of this was Mr. Brown's unauthorized action, and I think Mr. Lin would not make things difficult for us.

Furthermore, we have already reached an agreement with Mr. Lin to assist him in developing overseas markets. If we proactively propose these collaborations, this matter will naturally be resolved. After all, in business, there are no permanent enemies, only permanent interests. Through cooperation, we might be able to resolve this crisis and even achieve a win-win situation.

However, the dissenting leaders were still unwilling to give up.

The young and ambitious executive stood up again: "Lord, I disagree with this compromise. Standard Chartered Bank has a century-long history and profound heritage. How can we easily bow down to a Chinese entrepreneur?"

Even though we are currently facing some difficulties, as long as we unite as one, with our strength and connections, we may well be able to defeat Lin Haoran.

“Defeat? Easier said than done!” The old man sneered. “You only see our advantages, but you’ve overlooked Lin Haoran’s strength. His influence in Hong Kong’s business world is growing day by day, and he has strong financial backing.”

Look at the consequences for Huifeng Bank. It was only because Huifeng Bank offended Lin Haoran that Standard Chartered Bank was able to take advantage of the situation and acquire Huifeng Bank. Otherwise, do you think we would have had the opportunity to swallow Huifeng Bank?

Moreover, he is adept at seizing opportunities and achieving victory through surprise. If we rashly confront him, we will only put ourselves in a more passive position.

"They only defeated Huifeng Bank with our help; otherwise, they couldn't have possibly brought it down on their own!" the young man said defiantly.

Upon hearing this, the old man shook his head slightly and said, "You wouldn't believe that yourself, would you? When we intervened, Huifeng Bank was already being forced into retreat. If it weren't for the intervention of the Hong Kong Governor's Office, preventing Lin Haoran from acquiring Huifeng Bank, do you think we would still have this opportunity to give Standard Chartered Bank?"

These words caused another moment of silence in the conference room. The young and impetuous executive blushed, but for a moment he couldn't find any words to refute them.

Lord Derek Barber tapped the table lightly, drawing everyone's attention.

He then slowly said, "Everyone's point of view is reasonable, but the current situation is complicated, and we must act cautiously. This so-called 'Anti-Lin Alliance' has already made Lin Haoran hostile towards us. If we blindly confront them, the risk will be too great."

Our Standard Chartered Bank has achieved its current status through the efforts of countless generations. We cannot let it be destroyed by a moment of impulsiveness. Mr. Brown has indeed made great contributions to Standard Chartered Bank, but we cannot allow him to disregard the overall interests of Standard Chartered Bank and act recklessly just because of his contributions.

The most urgent task now is to resolve the conflict with Lin Haoran and prevent the situation from deteriorating further. Following Mr. Tyron's suggestion, a senior British official should be sent to Hong Kong to proactively communicate with him and express that we have no intention of being his enemy. All of this was Mr. Brown's unauthorized action, not a decision made by the Standard Chartered Bank board.

He decided to temporarily use Brown as a shield.

As soon as Lord Derek Barber finished speaking, a low murmur arose in the conference room.

The hot-blooded young executive wanted to argue further, but his colleague pulled his sleeve, signaling him to stop making futile resistance.

"Lord, what about Mr. Brown..." a senior official asked with some concern.

"I will personally speak with Brown and make him understand the seriousness of the current situation. Although he has made great contributions to the bank, he cannot act recklessly. He must be taught a lesson this time," Lord Derek Barber said solemnly.

As the head of Standard Chartered Bank, he naturally had to prioritize the overall situation.

Once Standard Chartered Bank has truly absorbed Huifeng Bank and overcome all crises, he can agree to Standard Chartered Bank engaging in a thrilling business battle with Hengsheng Group in Hong Kong.

But this is definitely not now.

“Lord, wouldn’t this make us seem too…” one of the directors hesitated before speaking.

"Too humble?" Lord Barber gave a wry smile, took off his gold-rimmed glasses and wiped them. "Compared to the fate of Huifeng Bank, this is the best option. Don't forget, although we have absorbed Huifeng Bank, our current situation is not as glamorous as it seems on the surface."

There is a Chinese story called "sleeping on firewood and tasting gall" (卧薪尝胆). When his country was destroyed and his family was ruined, King Goujian of Yue was able to endure humiliation and hardship, lying on firewood and tasting bitter gall to remind himself not to forget the shame. In the end, he accumulated strength, restored his country in one fell swoop, and achieved hegemony.

While Standard Chartered Bank is not yet facing national collapse, the difficulties it faces are equally severe. Lin Haoran is like a potentially powerful adversary. If we continue to act aggressively, we will only repeat the mistakes of Huifeng Bank.

Few people present had heard of the story of 'enduring hardship to achieve one's goal,' but they understood what Lord Derek Barber meant.

The old man agreed, saying, "The acquisition of Huifeng Bank has burdened us with a heavy debt, and our cash flow is stretched to the limit. If we were to start a full-scale war with Lin Haoran at this time, it would be tantamount to suicide. I agree with Lord's decision!"

Immediately, the meeting room was filled with voices of approval, and the voices of opposition dwindled.

In Hong Kong, Brown was completely unaware that headquarters had not notified him of the meeting.

He remained engrossed in his ambitions and plans, firmly believing that Li Jiacheng and Henry Keswick would stand with him and continue to fight against Lin Haoran.

The fact that headquarters didn't stop him made him feel that his decision had their full support.

Brown stood in front of the floor-to-ceiling window on the top floor of the Standard Chartered Tower, his gaze sweeping across the glass as he looked down at the bustling and vibrant street scene along Victoria Harbour.

As the power in his hands continued to expand, an unprecedented pleasure coursed through his body like an electric current, making him intoxicated by it.

He leisurely swirled the coffee cup in his hand, a slight smile playing on his lips, revealing a smug and self-satisfied expression.

Previously, although he was also a senior executive in the Hong Kong market of Standard Chartered Bank, he actually faced many limitations in terms of power.

After he made great contributions to the group, these restrictions seemed to disappear, and the headquarters gave him more authority.

All of this looks so wonderful.

"Get the car ready, we're going to the Hutchison Whampoa building in a bit!" He turned his head to look at his assistant beside him, his tone carrying an unquestionable authority.

"Yes, Mr. Daban!" The assistant said respectfully as he carefully left the office.

Just as he was about to pick up his suit jacket from the hanger and head out, the office phone rang.

Brown had to hang his suit jacket back on the hanger, walk to the telephone, and pick up the receiver.

(End of this chapter)