In Hong Kong, we build a global business empire

Chapter 737 This twist is far too dramatic!
While Lin Haoran and his group arrived in Shenzhen, Hong Kong, dozens of kilometers away, presented a completely different scene.

Just as Lin Haoran, Ma Shimin, and Dai Shi had discussed yesterday, the share prices of Hutchison Whampoa and Cheung Kong Holdings rose sharply after the Hong Kong stock market opened today.

Within half an hour of opening, the stock price surged by more than 25%, and market sentiment was in a frenzy!
Of course, this 25% increase is based on today's opening price, not yesterday's highest price; there is still a considerable difference between the two.

The exchange was bustling with activity, and the electronic screens were flooded with buy orders for Hutchison Whampoa and Cheung Kong Holdings.

Retail investors who panicked and sold off yesterday are now kicking themselves and regretting it, and are now scrambling to buy back in, afraid of missing out on this "retaliatory rebound".

The phones at major brokerage firms were ringing non-stop, almost all of them with inquiries and orders to buy Hutchison Whampoa and Cheung Kong Holdings.

Dai Shi sat in the trading room of Galaxy Securities, his phone never leaving his hand, as the stock exchange kept reporting the situation to him in real time.

As expected, both Hutchison Whampoa and Cheung Kong Holdings, two companies controlled by Li Ka-shing, were enthusiastically received by shareholders today.

What no one knew was that many of the orders placed during this frenzy came from the trading team at Galaxy Securities.

Their payments, seemingly insignificant among the many others, were as precise and persistent as maggots clinging to bones.

As the most professional securities investment company, Galaxy Securities' operations are clearly more professional and efficient than those of ordinary stock investors.

Therefore, the transaction volume is also higher!
Compared to major New York securities firms that have already begun connecting to stock exchange data via computers, the Hong Kong securities industry is clearly not as advanced.

Therefore, Galaxy Securities can currently only use telephone to communicate in real time with the "red vest" traders inside the exchange to obtain the fastest transaction information and market dynamics.

However, this did not significantly affect the efficiency of Dai Shi and his team.

His traders were highly trained, working like a machine with precisely meshing gears.

They maintained close contact with Galaxy Securities' seats and closely related brokerage seats within the exchange through multiple telephone lines.

"Amin in seat A, how are the order volumes for the top three bid levels with Huang? ... Okay, got it. We'll place a bid at number five and take advantage of their cancelled orders!"

"Mr. Chen from Brokerage B, keep an eye on Cheung Kong Holdings for me. Let me know immediately if there are any big deals coming in!"

"Channel C, who bought that 5,000-lot sell order just now? Was it one of our people? Good, well done!"

Inside the trading room, the sounds of telephones, reports, and instructions rose and fell, weaving together a tense yet efficient symphony of capital.

Although there is no real-time electronic data stream, Dai Shi can still clearly grasp the pulse of the market and the flow of funds through this traditional yet direct method.

He sat at the central command post, constantly integrating information from all sides, his brain working at lightning speed to make decisions.

"Mr. Dai, the market is chasing the hype too hard, and the stock price is a bit overvalued. Should we continue to chase it?" a senior trader asked, covering the microphone.

Dai Shi glanced at the clock on the trading room wall. It was already 10:30 a.m., which meant that an hour had passed since the stock market opened today.

At this moment, Hutchison Whampoa's stock price has risen by a full 35% compared to yesterday's closing price.

Another stock, Cheung Kong Holdings, has also seen its share price rise by about 32%.

The increases were faster than they had anticipated.

Of course, the reason for this is the covert involvement of Galaxy Securities.

Taking advantage of the rush of stock market investors to buy, they also went on a buying spree, greatly boosting the stock price.

"Buy, continue buying according to the plan. Be careful not to concentrate the orders too much; spread them out and mix them with retail investors' buy orders!"

Dai Shi decisively gave the order, adding, "However, notify all seats to lower our buy order prices by one level, placing them 2-3 price levels below the current market price! The current price is too hot to handle; we only buy cheap goods, not become suckers who buy at inflated prices!"

"Understood!" The instruction was quickly relayed.

Dai Shi's goal was to blend in with the many buyers and conceal his identity, rather than constantly driving up prices, as that would not be in their interest.

For them, the longer they keep it a secret, the better for the future.

However, even Dai Shi was not sure how long he could keep it a secret.

Because, although they have been very cautious, the large volume of buying will eventually arouse the vigilance of some people. Once they carefully examine those transactions, they will definitely find some clues. At that time, it will be discovered by Li Ka-shing's men that capital is eyeing Hutchison Whampoa and Cheung Kong Holdings.

Dai Shi's team is among the top elites in Hong Kong's financial industry, and Li Ka-shing's trading team is also among the top elites.

Now is not the time for Li Jiacheng to find out. Any carelessness could lead to the loss of all our previous efforts!

After all, Ma Shimin should not have contacted the major shareholders and investment institution leaders yet. If Li Jiacheng discovers any clues, Ma Shimin's plan may fail.

After all, those 13% or so shares were extremely important to Lin Haoran.

Without that 13% stake, it would be impossible for them to acquire more than 40% of the shares through the secondary market!

Of course, only Lin Haoran, Dai Shi, and Ma Shimin knew about these things; even the members of the trading team at Galaxy Securities were unaware of them.

These people are more like tools for carrying out orders. They only know that today's goal is to buy a large number of shares in Hutchison Whampoa and Cheung Kong Holdings, but they don't know that behind this is a shocking merger and acquisition for controlling stake.

Therefore, although traders operate professionally and efficiently, they do not experience the same level of psychological pressure as Dai Shi.

They simply followed Dai Shi's instructions meticulously, breaking down large orders, distributing them, and patiently placing orders at relatively low levels, waiting for the market sell-off to begin.

Dai Shi's eyes and ears were constantly scanning various information sources.

He needs to ensure the efficiency and secrecy of the accumulation of funds, while also being constantly vigilant for any unusual large buy or sell orders, which might indicate that Li Jiacheng's side or other institutions that have noticed something are taking action.

Time passed slowly in the highly tense atmosphere, and every minute seemed exceptionally long.

Meanwhile, Ma Shimin was in a conference room on the 50th floor of the Kang Le Building.

The people sitting in the conference room were not senior executives from Hongkong Land Group.

They are the shareholders or heads of institutions who collectively own nearly 13% of Hutchison Whampoa's shares.

Before the stock market opened, Ma Shimin had secretly contacted these people one by one without explaining the reason or telling them that he had also invited others.

After all, it was an invitation from the president of Hongkong Land Group, so these people naturally couldn't refuse.

However, when they arrived at the Kang Le Building, they realized that the other party had invited more than just himself.

The atmosphere in the meeting room was initially tinged with doubt and slight restlessness.

Several prominent figures and representatives of organizations who usually dominate the business world were invited to this familiar conference room by Ma Shimin for different reasons and in a semi-secret manner. However, when they found that each other was present, the expressions on their faces became subtle.

They are all important shareholders of Hutchison Whampoa, with shareholdings ranging from a little over one percent to three or four percent, which together make up the crucial nearly 13%!

They were both partners and competitors, and now they looked at each other, wondering what Ma Shimin was up to.

"Mr. Ma, what's going on here? You rushed me here saying it was to discuss important matters with Jardine Matheson, but why are Chairman Liu and General Manager Li here as well? Does Jardine Matheson want to do business with all of us as a package deal?"

Mr. Wang, an older chairman who holds more than 3% of Hutchison Whampoa's shares, spoke first, his tone carrying a hint of displeasure at being interrupted.

“Yes, Mr. Ma Shimin, the stock market has just opened, and Hutchison Whampoa’s stock price is fluctuating wildly. We’re all very busy over there.” Another fund company’s general manager, Mr. Liu, pushed up his glasses and spoke cautiously.

His fund holds a large number of Hutchison Whampoa shares and is both delighted and instinctively uneasy about today's unusual price increase.

He even planned to sell his shares once Hutchison Whampoa's stock price reached a certain level.

It has been confirmed that Hutchison Whampoa is experiencing cash flow problems.

Despite the backing of Standard Chartered Bank and HSBC, he still felt vaguely uneasy.

Therefore, the best course of action is to sell the shares as soon as possible to avoid significant risks.

"Ladies and gentlemen, please be patient. First of all, I would like to express my sincere gratitude to you all for taking the time to attend this busy opening ceremony."

I guarantee with my personal reputation that the matter I have invited you all here to discuss today is far more important than any of your current transactions, and is absolutely worth your time.” Ma Shimin’s voice was calm yet carried an inherent power of persuasion.

He paused, his gaze slowly sweeping over each shareholder present, taking in the expressions of doubt, curiosity, and impatience on their faces.

Then, he continued unhurriedly, "I know you are all very concerned about the stock performance of Hutchison Whampoa and Cheung Kong today. In just over an hour after the market opened, the stock price rose by more than 35%. I'm sure your net worth has also increased. Congratulations."

These words softened the expressions of the people present slightly; who wouldn't like their assets to appreciate in value?

Yesterday, Hutchison Whampoa's stock price plummeted by more than 60 points, to the point that some of them even had the urge to jump off a building.

Today's strong rebound has finally allowed them to recover a significant portion of their losses.

But everyone wasn't stupid; they knew that Ma Shimin hadn't come just to congratulate them.

“However,” Ma Shimin changed the subject and continued, “doesn’t anyone else think that the stock price increase is a bit strange?”
Yesterday's panic selling is still fresh in our minds, and today we've seen such a violent surge. Aren't you all curious about the driving forces behind this?

Many of you hold significant shares in Hutchison Whampoa and should have a better understanding of the company's internal finances than I do. Do you really think that so many shareholders could drive the share price up so quickly?
"By extending the debt term, can Mr. Li Ka-shing really help Hutchison Whampoa turn a profit in the short term?" The meeting room fell silent.

Those present were all intelligent people, and naturally they had already noticed the anomaly, but before they could think about it in depth, they were invited here by Ma Shimin.

Chairman Wang frowned: "Mr. Ma Shimin, what do you mean?"

"What I mean is that market confidence doesn't come from nowhere, but it's not just based on the endorsement of Standard Chartered and HSBC and Mr. Li's press conference yesterday, as it seems on the surface."

Ma Shimin lowered his voice, as if sharing an extremely important secret.

He paused, his gaze sweeping over each face lost in thought, and said with a smile, "One of the biggest forces driving today's stock price increase is someone you all know, and he has entrusted me to formally propose a suggestion to you all that is in your best interests."

All eyes instantly focused on Ma Shimin, and everyone unconsciously held their breath. They realized that the real issue was about to be addressed.

"Which investor?" Mr. Liu asked eagerly, his heart filled with a mixture of unease and curiosity.

Ma Shimin smiled slightly and uttered a name that made everyone present tremble: "Lin Haoran, Mr. Lin."

"Lin Haoran?"

Several incredulous gasps rippled through the conference room.

Lin Haoran, who just released a major negative report through his research company, almost dragging Hutchison Whampoa into the abyss.

This turn of events is far too dramatic, even bordering on absurd!
"Don't be surprised," Ma Shimin calmly reassured, as if he had already anticipated everyone's reaction. "In the business world, there are no permanent enemies, only permanent interests."

Mr. Lin did not intend to destroy Hutchison Whampoa. On the contrary, this was merely a small part of his business battle with Mr. Li Ka-shing. Everyone knows that Mr. Li offended Mr. Lin, so Mr. Lin's retaliation is perfectly reasonable.

The previous report by Universal Research simply punctured the excessively inflated bubble, allowing value to return to its true level.

He glanced at everyone and continued, "Mr. Lin believes that Mr. Li Jiacheng's abilities are beyond doubt, but the current debt burden is enormous, and the banks' support conditions are harsh, which has already tied Hutchison Whampoa's hands and feet, and may even force Mr. Li to sell core assets to survive in the future."

"Without Mr. Lin's intervention, I believe you all know that Hutchison Whampoa might not have lasted long, and might even have fallen into a prolonged period of losses, as it did a few years ago."

“Mr. Lin has made a cash acquisition offer to you through me.”

Simon Murray stopped beating around the bush and revealed his hand directly. He knew that for these investors who had just experienced a sharp drop and were worried about Hutchison Whampoa's debts, nothing was more convincing than real money and certainty: "He is willing to acquire all of your Hutchison Whampoa shares in cash at a price 65% higher than yesterday's closing price!"

"Yesterday's closing price? A 65% premium? Cash acquisition!"

A collective gasp filled the meeting room! Some people even instinctively stood up!

This offer is absolutely insane!
Yesterday's closing price was already a price that had plummeted due to panic, and on top of that, there was a 65% premium!

Even today, after a 35% increase, everyone knows it's impossible for the price to return to its original level.

Therefore, a 65% premium over yesterday's closing price is definitely a very tempting price for them.

This is a price that's simply irresistible!

Especially after clearly knowing Hutchison Whampoa's internal financial difficulties and having huge doubts about whether Li Ka-shing could truly turn things around, this offer was simply too attractive.

After learning that a large part of today's stock price increase was due to Lin Haoran's efforts, and that the purpose was simply to compete with Li Jiacheng in the business arena, they no longer have any hope for Hutchison Whampoa.

Ma Shimin, on the other hand, was very confident that he could persuade these people.

……

Inside a luxurious office on the top floor of Hutchison Whampoa Tower in Central.

Outside the window, the bustling Central district is filled with towering buildings.

However, at this moment, Li Jiacheng was oblivious to the scenery outside the window.

His entire attention was focused on Tyron, the newly appointed PB of Standard Chartered Bank, who had just arrived across the desk.

At this moment, however, Li Jiacheng's face showed a hint of relief at surviving a disaster and an undisguised confidence.

"Mr. Tyronn, look! The market's reaction is the best proof! In just over an hour since the market opened, Hutchison Whampoa's stock price has risen by more than 35%! What does this mean?"
This shows that the market trusts me, Li Ka-shing, trusts Hutchison Whampoa, and even more so, trusts the endorsement of HSBC and Standard Chartered! Yesterday's press conference was a resounding success!

He personally poured Tyron a cup of coffee, his tone quite smug: "It seems that the storm caused by the report from Universal Corporation has finally passed without serious incident."

Next, as long as we proceed steadily according to the plan we've agreed upon with the banks, Hutchison Whampoa, this large ship, will be back on track.

Tyron smiled as he accepted the coffee, clearly pleased with the market's enthusiastic response: "Mr. Li is right, market confidence has indeed returned."

The support from Standard Chartered and HSBC has given investors ample confidence. It seems our joint statement yesterday had an immediate effect.

He took a sip of coffee and added in a relaxed tone, "However, Mr. Li, such a huge increase and trading volume do indeed show that the market has regained its recognition and enthusiasm for Hutchison Whampoa's future value."

This is a good thing, showing that even after the turmoil, Hutchison Whampoa's core values ​​are still widely regarded as valuable.

As the newly appointed head of Standard Chartered Bank's Hong Kong operations, Tyron shoulders a heavy responsibility.

After all, Hong Kong has now become Standard Chartered Bank's largest market.

However, Standard Chartered Bank and the newly acquired HSBC are both facing difficulties in the short term. The debts of Hutchison Whampoa and Cheung Kong Holdings that are due for repayment need to be extended, which is indeed putting considerable pressure on them.

If Hutchison Whampoa and Cheung Kong Holdings were to actually face a broken cash flow, then the risks they would bear for endorsing Li Ka-shing would increase.

Therefore, Tyron was previously unwilling for Hui Fung Bank to extend the loan repayment period for Cheung Kong Holdings and Hutchison Whampoa.

But today's market frenzy undoubtedly reassured him.

This proves that Standard Chartered and HSBC's decision to support Li Ka-shing was correct; the market accepted it, and the risk was naturally reduced.

He had even begun to plan in his mind how to use this successful crisis management to further consolidate Standard Chartered Bank's position and influence in Hong Kong and even the Asian financial community.

Moreover, they gained a lot of benefits from Li Ka-shing this time, such as higher interest rates on subsequent loans, priority rights to mortgage some of Hutchison Whampoa's high-quality assets, and even the right of Hui Fung Bank to directly take over the mortgaged high-quality assets, such as part of the equity of Kwai Chung Wharf or some high-quality land plots, to offset the debt should Hutchison Whampoa default again.

These stringent terms are insurance that banks take out for themselves when they perceive high risks.

The market response has been enthusiastic. In Tyron's view, these insurance terms may no longer be needed, but this is undoubtedly an extremely successful venture capital investment, demonstrating his negotiation skills and decisiveness.

Banks do business, just like everyone else, to make money.

As the newly appointed head of the household, Tyron is now very cautious.

After all, Mr. Brown, who was instrumental in the acquisition of Huifeng Bank, has now been transferred back to headquarters because of things in Hong Kong. He has lost his position as a regional governor, and his chances of running for the position of head of headquarters in the future are probably almost gone.

As Mr. Brown's successor, Tyron naturally treads on thin ice, fearing that he might make a mistake and repeat Mr. Brown's mistakes.

Therefore, in negotiations with Li Ka-shing, he proposed such harsh conditions, both to protect the bank's interests and to demonstrate his prudence and shrewdness to the London headquarters.

Seeing the market's enthusiastic response, Tyronn finally felt a huge weight lifted from his shoulders, and even felt a surge of pride.

He felt he had made an absolutely correct business decision, which not only mitigated potential risks but also secured excess returns for the bank. This would undoubtedly be a good start to his new term and greatly boost his standing with headquarters.

“Mr. Li,” Tyron put down his coffee cup, his smile becoming even warmer and carrying a sense of relief, “seeing the market’s reaction like this, I am completely relieved. This fully proves that our previous judgment and decisions were correct.”

Standard Chartered Bank and HSBC will steadfastly support you and Hutchison Whampoa through this difficult time. The debt extension is only the first step; going forward, we will remain the closest partners of Hutchison Whampoa and Cheung Kong Holdings.

Upon hearing this, Li Jiacheng, though still heartbroken by the harsh terms, still showed a grateful and confident smile.

Overcoming the current crisis is more important than anything else; the future can be planned slowly.

Having been in business for decades, he is confident that he can turn things around.

"With Mr. Tyron's words, I feel even more confident! Rest assured, I, Li Jiacheng, will never let you down..."

Just then, there was a knock on the door.

The one who entered was CEO Richardson.

"Mr. Li, Mr. Tyron." As soon as he entered, Richard nodded to the two men, but his expression was not as rosy as the stock prices downstairs; instead, it carried a hint of imperceptible seriousness.

“Mr. Richard, you’ve come at the perfect time.” Li Jiacheng was in a good mood and greeted him with a smile. “Come and share with Mr. Tyron how much the share prices of Hutchison Whampoa and Cheung Kong Holdings have risen.”

Tyronn smiled and nodded to Richard.

"Mr. Li, Mr. Tyronn, just now, Hutchison Whampoa's share price has officially broken through 40% compared to the opening price. In addition, Cheung Kong Holdings' share price has also increased by more than 37%!"

Richard delivered the startling figure, but his tone was devoid of joy, instead becoming even more somber: "However, Mr. Richard, something is not quite right."

(End of this chapter)