In Hong Kong, we build a global business empire

Chapter 735 A Cunning Plan: Seizing the Opportunity to Turn the Tide and Win Over Hutchison Whampoa!

"Now that things have come to this, he has no choice but to play with fire. The debt funds of Hutchison Whampoa and Cheung Kong Holdings were all obtained from Hui Fung Bank. The combined debt of the two companies is estimated to exceed HK$5 billion."

Wasn't he also gambling, gambling that extending the repayment period would allow Hutchison Whampoa to survive? Just like two years ago, in order to take over Hutchison Whampoa, he signed many unacceptable conditions and ultimately succeeded in taking control of Hutchison Whampoa.

Now, he can only try again, just like he did two years ago, because Li Jiacheng has no other way to go! Lin Haoran laughed.

The two continued watching the live broadcast on television.

After Li Ka-shing finished speaking, Standard Chartered Bank's new CEO, Tyronn, also stepped forward to emphasize that Standard Chartered Bank has the strongest alliance with Hutchison Whampoa and Cheung Kong Holdings, and stated that Standard Chartered Bank and HSBC will fully support Mr. Li in overcoming any difficulties.

Tyronn's words made Li Jiacheng's speech seem more convincing.

After all, even the head of Standard Chartered Bank came forward to testify.

In other words, there is no need to worry about whether Hutchison Whampoa and Cheung Kong Holdings' cash flow will break down.

At this moment, many citizens of Hong Kong are watching this press conference.

Those shareholders who sold their Hutchison Whampoa and Cheung Kong shares at low prices today are now filled with deep regret.

Originally, everyone was worried that Li Ka-shing's two companies would face a broken capital chain, so they just wanted to sell them off quickly, fearing that if they were too late, they would lose everything.

Now that Standard Chartered Bank has stepped in to support Li Ka-shing, there is no need to worry about Hutchison Whampoa and Cheung Kong Holdings collapsing, even if the data released by Global Research is true.

But it's too late to regret it now.

People have a herd mentality, and the panic this afternoon made them afraid to continue holding stocks.

Moreover, this matter cannot be blamed on Universal Research Company. Although Li Ka-shing did not explain the matter of Universal Research Company, his remarks and Standard Chartered Bank's endorsement have indirectly confirmed that the results published by Universal Research Company are reliable and not unfounded.

This precisely reflects just how strong the research capabilities of Universal Research are.

However, this dramatic turn of events subtly altered the nature of the entire incident.

The source of the panic was confirmed to be not a rumor, but the consequences of the panic were covered by the unlimited support of the two major banks.

The feelings of stock investors are extremely complicated at this moment: the stocks they are selling may have real fundamental problems with the companies behind them, but these companies happen to have the privilege of being "too big to fail".

In front of the television, Chen Bo, who had just sold his stocks, slumped onto the sofa. Looking at Tyron's confident expression on the screen, he suddenly slapped his thigh and lamented, "Oh dear! Why was I so impatient!"

They're a major player, backed by banks, how could they possibly collapse so easily? I'm so stupid!

His regret is a microcosm of the feelings of thousands of retail investors.

What they lost was not a game of misjudging the company, but an information war about "who has the ultimate credit endorsement".

Only now did they fully understand that in the turbulent land of Hong Kong, what was truly solid was never those perfect balance sheets, but rather the deeply entrenched and unfathomable alliances between tycoons and banks.

Meanwhile, on stage, Li Jiacheng slightly turned his head and nodded to Tyron, and the two exchanged a brief but meaningful glance.

This detail was keenly captured by the camera, conveying a sense of composure and complete control.

The crisis is not over, but the initiative in the war has been firmly returned to his hands through this carefully arranged "alliance show".

Following that was the Q&A session with reporters.

The reporters' questions were increasingly pointed, getting straight to the heart of the matter.

However, having reached an agreement with Standard Chartered Bank, Li Jiacheng was more confident, and every answer he gave was watertight, revealing no sign of his inner turmoil.

When pressed by reporters about the details of his cash flow, he did not evade the question, but cleverly defused it with a grand narrative: "In the ocean of business, there is never a smooth voyage. What matters is whether your ship is sturdy and whether your partners are strong enough."

Today, my partners and I have proven this to you.

He elevated the topic from specific financial difficulties to the level of corporate resilience and strategic alliances.

When asked about the specific terms of the cooperation with banks, he displayed a calm and composed demeanor: "Cooperating with top financial institutions such as Standard Chartered and HSBC is a strategic consideration based on decades of mutual trust."

Specific details are trade secrets, but you can understand it as a joint investment in the future economic prospects of Hong Kong and even the world.

He packaged the potentially harsh bailout conditions as a forward-looking and confident joint investment, easily deflecting the reporter's attempt to uncover the "cost."

Li Ka-shing's composure earned him the secret admiration of the reporters present. No wonder he was the Li Ka-shing who was able to take over Hutchison Whampoa. He was not so easily defeated.
At this moment, the faces of tens of thousands of stock investors are a mixture of regret and anxiety, like a tangled mess that cannot be untangled.

At this moment, Lin Haoran, who was in his office on the 51st floor of the Kang Le Building, was not flustered at all by Li Ka-shing's seemingly perfect "counterattack show".

On the surface, Li Ka-shing has received full support from Standard Chartered Bank and has managed to weather this crisis safely for the time being.

In the long run, as long as Hutchison Whampoa's docks, retail and other businesses do not recover, and as long as the real estate industry does not recover, Li Ka-shing's business empire is like a castle built on the beach, which may be washed away by the waves at any time.

The financial support from Standard Chartered Bank and HSBC is not a continuous source.

Moreover, based on his understanding of Hutchison Whampoa and Cheung Kong Holdings, the agreement reached between Li Ka-shing and the taipan of Standard Chartered Bank is at most an extension of the repayment period for the debts of Hutchison Whampoa and Cheung Kong Holdings that are about to mature.

As for providing more funds? Based on his understanding of Standard Chartered Bank, he didn't believe that Standard Chartered could continue to invest without reservation.

Lin Haoran's lips curled up slightly, revealing a barely perceptible sneer.

“Boss, even though Li Jiacheng paid a considerable price this time, judging from this press conference, he has at least overcome the difficulties in the short term!” Ma Shimin frowned and said.

"Overcome the difficulties? No, this might be a good opportunity for us to take another step forward!" Lin Haoran shook his head and laughed.

"Oh? I'd like to hear more!" Ma Shimin looked at his boss in surprise.

"No rush. I just thought of this after watching the press conference. I'll call Dai Shi up first, and we'll talk about it together then. I'll also arrange some things for him to do tomorrow," Lin Haoran said mysteriously with a smile.

Upon hearing this, Ma Shimin became even more curious.

In his view, barring any unforeseen circumstances, the share prices of Hutchison Whampoa and Cheung Kong Holdings will definitely surge again tomorrow after this press conference.

Even if it doesn't return to its previous market value, it will definitely inject a strong boost into the market in the short term, rekindle hope in those who were panic selling, and even attract new funds to enter the market.

The stock price has rebounded, and the short-term funding pressure has been temporarily relieved. In Ma Shimin's view, Li Jiacheng's situation has stabilized, and he really can't see any opportunity to use it to further attack him.

Lin Haoran, however, seemed confident, clearly having already made his plans.

A short while later, Dai Shi rushed over and greeted Lin Haoran and Ma Shimin as soon as he entered: "Boss, Mr. Ma."

Lin Haoran nodded and smiled, "Please sit down first."

Upon hearing this, Dai Shi pulled out a chair from the side and sat down.

"You know the details of Li Jiacheng's press conference just now, right?" Lin Haoran asked with a smile.

"Boss, although I didn't watch the whole thing, I do know the general outline of their press conference. If nothing unexpected happens, the share prices of Hutchison Whampoa and Cheung Kong Holdings will rise again tomorrow, and by a huge margin. However, I think it's difficult for them to return to their peak."

They did temporarily escape the crisis of a broken capital chain thanks to the public support from Standard Chartered Bank, but the fact remains that Hutchison Whampoa and Cheung Kong Holdings are facing a shortage of funds.

Previously, Hutchison Whampoa and Cheung Kong Holdings had never publicly disclosed these related financial reports. This time, being exposed by Universal Research will definitely be a blow to them! Dai Shi analyzed.

Lin Haoran and Ma Shimin both nodded.

Indeed.

Previously, Hutchison Whampoa and Cheung Kong Holdings were seen as rock-solid giants in Hong Kong's business world, and the anchors of stability for countless shareholders.

Every move they make, every decision they make, affects the market, as if they will never face problems such as funding shortages or poor management.

But now, this heavy blow from Universal Research has shattered that seemingly indestructible shell, revealing to the public the hidden crisis behind these two companies. No one expected that Hutchison Whampoa had actually reached such a state.

Even with the support of Standard Chartered Bank, it cannot change the fact that its business foundation is shaken and market confidence is crumbling.

Therefore, even if Li Ka-shing's two companies see a surge in their stock prices tomorrow, it will be difficult for them to return to their previous peaks.

"What I really want to say isn't the point!" Lin Haoran said with a smile.

Immediately, Dai Shi and Ma Shimin both looked at Lin Haoran, wondering what he wanted to say.

“We now hold 24.62% of Hutchison Whampoa’s shares, and it’s becoming increasingly difficult to acquire more Hutchison Whampoa shares. As retail investors hold fewer and fewer Hutchison Whampoa shares, our actions become more easily detected, right?” Lin Haoran continued.

"Yes, boss, it's fortunate that there were so many sell orders today, so our 2% increase isn't too noticeable. In the past, we would have to be very careful if we were to increase it by 0.1% a day," Dai Shi said with some emotion.

The shares held by Galaxy Securities, combined with those held by Cheung Kong Holdings, and those held by several other major shareholders and institutions, already exceed 77%.

In other words, shareholders' Hutchison Whampoa shares are now worth only about 20 percent.

"So, this show by Li Ka-shing and Tyronn has given us an excellent opportunity, an opportunity to openly, even 'invited,' further reclaim Hutchison Whampoa!" Lin Haoran said with a slight smile.

Upon hearing this, Dai Shi and Ma Shimin were both taken aback, their faces filled with confusion.

With market confidence recovering and stock prices expected to surge, this should be the time when there is the greatest resistance to increasing holdings. So where is the "perfect opportunity"?
Seeing the two looking confused, Lin Haoran chuckled and explained, "Think about it carefully. After today's panic selling, coupled with the expected surge in stock prices tomorrow, how will market sentiment develop?"

Those retail investors who painfully sold at a loss are probably regretting it terribly right now. What will their reaction be when they see the stock price skyrocket tomorrow when the market opens?

“I’ll definitely be eager to buy it back!” Dai Shi replied without hesitation.

"Yes! We now hold 24.62% of the shares. The other major shareholders and institutions together hold about 13% of the shares. As long as the price we offer is attractive enough, how can they not be tempted?"
Especially knowing that Hutchison Whampoa Group is in financial trouble, they are eager to sell off their shares and cash out. Now that we have given them a good opportunity to sell at a high price, do you think they will still hold on to their shares?
So, we can easily acquire this 13% stake, since we're not short of money! Adding that to our existing shares, we'll have about 38%.

Next, we'll acquire more shares from the secondary market, exceeding the 40% stake held by Cheung Kong Holdings in Hutchison Whampoa. It's only a matter of time.

"Don't you think tomorrow is the perfect time for us to increase our holdings?" Lin Haoran said, then burst into laughter.

"Brilliant! Boss, do you mean that tomorrow we should do the opposite of what we expect, not only ignoring the high prices, but also taking advantage of the market's frenzied buying frenzy to go on a massive buying spree?" Dai Shi slapped his thigh, his eyes gleaming, instantly understanding Lin Haoran's entire intention.

"Exactly! Li Ka-shing and Standard Chartered Bank have joined forces to provide us with an excellent stage. They are responsible for inflating the bubble, attracting the attention and funds of the entire market, and making Hutchison Whampoa's share price rise again. And we are going to be the most greedy predators in this bubble!"

Lin Haoran stood up, walked to the huge map of Hong Kong, and pointed heavily at the Hung Hom location representing the Whampoa Dockyard.

This is one of the main important assets that Lin Haoran coveted in Hutchison Whampoa.

Besides the Whampoa Dockyard, Lin Haoran also wanted the wharves in Kwai Chung owned by Hutchison Whampoa.

He turned around, quickened his pace, and said directly, "When the market opens tomorrow, there will definitely be a frenzy of buying Hutchison Whampoa shares, and the stock price will skyrocket. Why don't we turn the tables on them?"

What we need to do is blend in with the countless buy orders from retail investors and institutions, and use our prepared funds to buy in the most efficient and covert way, regardless of cost!
The target is all the shares that can potentially circulate in the secondary market! Even including the 13% stake held by major shareholders and institutional investors!

Ma Shimin understood completely at this moment. He took a deep breath and replied, "I understand! Li Jiacheng thought he had gained a breathing space, and that the rebound in stock price would stabilize shareholder confidence and even make those shareholders reluctant to sell."

But he was wrong! After today's panic, those major shareholders who knew the inside story are even more frightened than retail investors! They're like startled birds; now that there's a seemingly 'perfect' opportunity to sell at a high price, they will absolutely not hesitate to dump their shares and cash out! And we'll be the ones left holding the bag!

“That’s right!” Lin Haoran’s smile widened. “The more successful Li Ka-shing and Standard Chartered Bank’s performance, the bigger the stock price bubble will be tomorrow, the more determined those shareholders will be to sell, and the bigger our ‘loss’ will seem to be when we buy in at a high price. But what’s the reality?”

Dai Shi excitedly interjected: "Actually, we are using a short-term premium to buy a shortcut to controlling interest! Once we hold more than 40% of the shares, we will have the right to compete with Li Ka-shing on the board of directors, and even launch a takeover bid!"

"By then, who will own Hutchison Whampoa is anyone's guess! This premium is negligible compared to the overall value of Hutchison Whampoa!"

"Moreover, when we go on a large-scale buying spree, in the frenzied atmosphere of tomorrow, the market will only interpret it as a large number of stock investors chasing the rising stock price. In the frenzy of chasing the rising stock price, this will further push up the stock price and accelerate the formation of a bubble."

Mr. Li Ka-shing could never have imagined that his competitor, with whom he controlled a 40% stake, would still covet Hutchison Whampoa!

"As for the shares held by shareholders and institutions, as long as we offer a more attractive price, those major shareholders and institutions will naturally be very willing to sell," Lin Haoran added.

Ma Shimin and Dai Shi both nodded in agreement.

This is true.

The atmosphere in the entire office became more relaxed.

This is an extremely bold, almost insane plan.

It is built on a deep understanding of human nature and a precise control of market sentiment.

If successful, it would be highly likely that Li Ka-shing would be able to snatch the 40% stake in Hutchison Whampoa from the jaws of defeat!
Li Jiacheng is currently in dire need of funds, making this the easiest time to seize power.

Otherwise, once he has fully grown in power, it will be as difficult as climbing to the sky to take him down!
"Dai Shi! Tomorrow is your battlefield. Use all resources, all accounts, and spare no expense to buy. Buy aggressively, buy fiercely, buy until everyone thinks we are the most fervent optimists!"
"But at the same time, we must do it discreetly, and absolutely not let Li Jiacheng discover our true intentions and final shareholding ratio in advance!" Lin Haoran instructed.

"Understood, boss! I will definitely put on a good show and make sure I win every single chip!" Dai Shi stood up abruptly, his face flushed with excitement.

"Mr. Ma, once Galaxy Securities has acquired enough shares, you will be responsible for contacting those institutions and major shareholders privately and offering them an offer that they cannot refuse, slightly above the market price. But be quick and keep it confidential. The transaction must be completed before Li Jiacheng can react!" Lin Haoran then looked at Ma Shimin and instructed him.

"Leave it to me. I will arrange for these shareholders and investment institution leaders to come to the Kang Le Building at the same time, and then persuade them together. This way, the information will not be leaked in advance. By then, it will be too late for Li Jiacheng to make preparations!" Ma Shimin nodded emphatically, his eyes revealing fighting spirit.

At the same time, his admiration for Lin Haoran deepened once again.

No wonder he's a business tycoon who built such a huge empire at such a young age!
Looking at the young boss before him, who was strategizing and making decisive moves, Ma Shimin was filled with emotion.

He had seen too many influential figures in the business world, but those like Lin Haoran, who could instantly find a fatal flaw in an opponent's seemingly perfect defense and dare to launch a counterattack in such an aggressive and bold way, were extremely rare.

This requires not only substantial capital, but also extraordinary courage, ruthless calculation, and a precise grasp of human weaknesses.

"Boss, you are truly insightful and far-sighted. I admire you! Li Jiacheng probably never dreamed that the reversal he painstakingly created would become the best cover for our final offensive," Ma Shimin said sincerely.

Although the boss doesn't usually get involved in things, he always comes up with brilliant ideas at crucial moments that turn the tide!

Ma Shimin sighed inwardly, recalling Lin Haoran's decisions at several crucial moments in the past. Each one seemed perilous, but in fact, it was a precise grasp of fleeting opportunities that ultimately secured victory.

This time, facing a formidable adversary like Li Jiacheng and a seemingly impenetrable banking alliance, the boss was able to spot the flaws in the desperate situation and even turn the tables on them, transforming their "shield" into his own "spear." This insight and courage are truly admirable.

Lin Haoran simply smiled faintly at Ma Shimin's praise, as if it were just a trivial matter.

He sat back down on the sofa, his tone returning to its usual calm: "Man proposes, God disposes. A good plan is one thing, but execution is another. Tomorrow, it's up to the two of you."

We need to make Li Ka-shing understand that Hong Kong is no longer an era in which he can dance alone.

"Don't worry, boss, we will definitely live up to your expectations!" the two said in unison.

He glanced at his watch; it was already five o'clock in the afternoon. He then said, "It's getting late. You two go and draft the specific operational details and the authorized pricing range."

Remember, the key to tomorrow's actions is speed and ruthlessness. We must create a fait accompli before everyone, especially Li Jiacheng, can even react.

"Yes, boss!" Dai Shi and Ma Shimin replied in unison, their expressions solemn.

They knew that tomorrow's operation had to be as precise as a scalpel and as swift as lightning.

"Go ahead," Lin Haoran waved his hand. "Let me have some peace and quiet."

He trusted both of them completely; they were not only highly loyal but also exceptionally capable.

Dai Shi led his team to acquire shares in the secondary market, while Ma Shimin was responsible for negotiating with the major shareholders and institutional leaders to acquire their 13% stake.

In this way, catching up with or even surpassing the 40% stake held by Cheung Kong Holdings would not be difficult at all.

To others, holding 40% of the shares would be impossible to contest, but for Lin Haoran, it was not a problem at all!

(End of this chapter)