In Hong Kong, we build a global business empire

Chapter 764 The Hong Kong business world has entered the 'Lin Haoran era'!
After the Hong Kong Stock Exchange confirmed that Lin Haoran would take over Hutchison Whampoa and made it clear that it would not privatize the company, Hutchison Whampoa's stock price surged after the market opened.

It's important to know that Galaxy Securities itself holds a whopping 86.9% stake, meaning that other investors only hold 13.1%.

Moreover, a portion of these shares are locked up by long-term holders, which further reduces the number of Hutchison Whampoa shares available for trading on the secondary market.

Now that Lin Haoran has become the big boss of Hutchison Whampoa, investors are naturally full of confidence in Hutchison Whampoa's future and no longer have any worries.

In the stock market, besides those investors who engage in short-term trading and buy low and sell high, there are actually quite a few people who tend to invest in the long term, such as those who are optimistic about the long-term development prospects of a particular stock.

In this situation, Hutchison Whampoa's stock is naturally prone to having more buy orders than sell orders.

Therefore, just as Dai Shi reported to Lin Haoran, Hutchison Whampoa's stock price soared like a rocket as soon as the stock market opened.

When Lin Haoran returned to the Kang Le Building, Hutchison Whampoa's market value had once again exceeded HK$10 billion.

Although the rate of increase has slowed, it still maintains a steady upward trend.

He walked straight into the office, where Dai Shi was already waiting, his face beaming with barely suppressed excitement.

“Boss, look at this trend.” Dai Shi pointed to the hand-drawn trend chart in his hand. “It has risen by more than 60% since the opening, and market sentiment is still very high.”

Lin Haoran took off his suit jacket, sat down at his desk, and looked at the data charts in his hand.

"What's the stock price now?" he asked.

“The price per share has reached HK$23.8, with a total market value of approximately HK$106.3 billion,” Dai Shi quickly replied. “The 11.9% stake we plan to reduce is worth more than HK$12.6 billion at the current price, which is higher than the cost we previously acquired from the market.”

Lin Haoran tapped the table lightly, lost in thought for a moment.

"We will sell in batches," he said decisively. "Starting this afternoon, we will complete the reduction over five days. Whenever there are large buy orders in the market, we will release some shares as appropriate."

Dai Shi quickly jotted down the instructions, "And what about the target price?"

“We don’t need to be fixated on specific price levels.” Lin Haoran raised his head. “What we want is a smooth reduction of holdings, without causing market panic. Remember, we will still be the absolute controlling shareholder of Hutchison Whampoa after the reduction. Long-term stability of the share price is more beneficial to us.”

As for Lin Haoran, he didn't think about how much money he would make from the reduction in holdings; as long as he didn't lose money, that was fine.

However, judging from the current situation, even if he didn't intend to make money, he will definitely make a lot, which is a pleasant surprise.

"Understood, boss. I will manage the timing well, ensuring I don't miss out on the current high prices, nor do I suppress the stock price due to large-scale selling."

Previously, after agreeing with Simon Murray not to seek the privatization of Hutchison Whampoa, Hutchison Whampoa submitted relevant official documents to the Hong Kong Stock Exchange and the Securities and Futures Commission.

The Hong Kong Stock Exchange is also unwilling to see Hutchison Whampoa, a listed company, delisted. After all, if Hutchison Whampoa were to be delisted, it would be a great loss to the Hong Kong stock market.

They knew how rich Lin Haoran was; if they really refused, he could privatize Hutchison Whampoa in no time.

Therefore, the Hong Kong Stock Exchange even took the initiative to negotiate with the Securities and Futures Commission, hoping to approve the application as soon as possible in order to stabilize market expectations.

Therefore, the Securities and Futures Commission expedited the approval process and approved Hutchison Whampoa's application on the same day, allowing Lin Haoran to hold 75% of the shares, leaving 25% of the shares to circulate on the market.

Logically speaking, selling the extra 11.9% of shares to a large conglomerate would be an extremely suitable choice, since a strong alliance can often bring about broader development space and synergistic effects.

However, Lin Haoran had a more meticulous and long-term consideration in mind.

Selling these shares to a powerful and influential entity could indeed create numerous potential cooperation opportunities in the short term, such as resource sharing and business expansion.

However, at the same time, this could very likely trigger a series of complex power struggles and conflicts of interest.

Behind each major power lies a complex web of interests and strategic demands. If they intervene in Hutchison Whampoa, it could disrupt the company’s existing stable structure and strategic rhythm, and interfere with Lin Haoran’s carefully laid-out future plans.

In Lin Haoran's eyes, Hutchison Whampoa is no longer just an ordinary company, but an important piece in his plan for the future and the realization of his grand business vision, no less important than Hongkong Land Group.

He has a clear and long-term strategic plan, hoping to build Hutchison Whampoa into a globally influential business giant according to his own pace and philosophy.

Therefore, Lin Haoran was absolutely unwilling to let the company get caught up in unnecessary power struggles and conflicts of interest because of the temptation of temporary benefits, thereby ruining the overall strategic plan.

More importantly, in today's Hong Kong stock market environment, finding a consortium willing to invest over a billion Hong Kong dollars in Hutchison Whampoa without seeking interference or even controlling rights is almost an impossible task.

Given the current state of the Hong Kong stock market and the investment logic of conglomerates, if a force can come up with such a huge amount of money, it will most likely have the opportunity to gain controlling stakes in other companies when investing in them, thereby gaining control over the companies' discourse and decision-making power.

Therefore, from a realistic perspective, selling this 11.9% stake to a large conglomerate is fraught with uncertainty and potential risks, and is not the best option.

It would be better to let ordinary shareholders in Hong Kong share in the dividends of Hutchison Whampoa's future development. This would not only increase market liquidity but also establish a better corporate image among investors.

Several hours passed quickly.

I looked at the time and it was already past three in the afternoon.

Sitting comfortably in his executive chair, Lin Haoran crossed his legs, looking quite content.

Just as I was pondering this, there was a knock on the door.

"Come in."

The person who came in was Ma Shimin's assistant.

As for Simon Murray, he is extremely busy these days. He has to take over Hutchison Whampoa, plan the establishment of the Galaxy Strategic Development Committee, and be responsible for approving important matters for Hongkong Land Group. It can be said that he wished he could be divided into three people.

They're probably still busy at the Hutchison Whampoa Building right now.

"Boss, we received a message from the building's front desk saying that Mr. Li Jiacheng didn't make an appointment in advance, but he's already here and wants to visit you," the assistant said respectfully, bowing slightly.

They had just met a few hours earlier and reached a settlement. What is Li Jiacheng's purpose in suddenly visiting now?
Lin Haoran was slightly taken aback; the other party hadn't even made a phone call beforehand?

Despite being somewhat surprised, Lin Haoran quickly said, "Please have the receptionist invite Mr. Li up."

In any case, he and Li Jiacheng have now reconciled and are no longer enemies, so they should still meet when necessary.

Moreover, he also wanted to know what Li Jiacheng meant by contacting him again.
The assistant quickly responded and turned to leave hastily.

Lin Haoran casually straightened his suit, his mind racing as he considered the purpose of Li Jiacheng's visit.

A few minutes later, the office door was gently pushed open, and Li Jiacheng walked in steadily with a gentle smile on his face.

Lin Haoran looked at Li Jiacheng, who walked in with a smile, and a subtle, unspoken meaning flashed in his eyes.

The CK Asset chairman, who had just been defeated by himself in the capital market but was forced to make peace, had an apologetic look on his face, but his eyes no longer showed the dejection and resentment of the past few days. Instead, they revealed a sense of relief and a hint of barely perceptible respect.

The Li Jiacheng of this world is far from the Li Jiacheng of his previous life who had already ascended to the throne of the richest Chinese.

Although he had taken advantage of his takeover of Hutchison Whampoa to quickly rise to the ranks of Hong Kong's top tycoons, the time he spent there was simply too short.

Moreover, even after successfully taking over Hutchison Whampoa, they were never able to fully control it.

The high spirits and boundless ambition they had when they acquired Hutchison Whampoa have been gradually worn away by their repeated defeats in business battles with Lin Haoran.

"Mr. Lin, I'm so sorry to bother you!" Li Jiacheng took the initiative to extend his hand, adopting a very humble posture, and his politeness in his words far exceeded the "sincere cooperation" he had shown in Bao Yugang's reception room.

Lin Haoran stood up, shook hands with him, and wore a formulaic but polite smile: "Mr. Li, you're too kind. Please sit down. You must have something urgent to discuss with me at this time?"

He quickly calculated in his mind. He had just met with Li Jiacheng at the Prince Building that morning. Only a few hours had passed, and the other party had come to his door without even waiting for an appointment. What could be so urgent that made the other party so impatient?
Ma Shimin's assistant served hot tea.

Li Jiacheng didn't engage in much small talk, nor did he mention anything about Cheung Kong's stock price or market reaction; all of these seemed pale and powerless in the face of Lin Haoran's absolute strength.

He took a deep breath and cut straight to the point, his tone carrying a sense of candor after a heavy burden had been lifted: "Mr. Lin, I just came back from Standard Chartered Bank headquarters. They have finally decided to abandon the deep cooperation agreement that Huifeng Bank and my company previously signed and accepted the request to sever ties."

"Oh?" Lin Haoran raised an eyebrow. Although this result was within his expectations, the speed at which Standard Chartered Bank so "cleverly" bowed its head and admitted defeat still surprised him.

At that moment, he finally understood what the other party's purpose was.

He said with great interest, "Standard Chartered has abandoned the agreement you signed with Huifeng? Does that mean you intend to transfer Cheung Kong Holdings' financial business to one of my banks?"

This is actually not hard to figure out.

Otherwise, what does it have to do with him if Huifeng Bank terminates its agreement with Li Jiacheng?

It must be related to him for Li Jiacheng to personally visit him.

“Yes!” Li Jiacheng nodded firmly, his tone carrying confirmation of Lin Haoran’s authority and a hint of barely perceptible flattery. “The Tyronn CEO consulted with the London headquarters, and they ultimately chose to accept reality.”

Mr. Lin, they are truly wary of you. Standard Chartered Bank in Hong Kong, and even in the Far East, no longer wants to be your enemy.

"The termination of this agreement and Standard Chartered's capitulation are the best proof of your current power in the business world, Mr. Lin!" He cleverly attributed his and Cheung Kong's extrication to Lin Haoran's intimidating influence.

But it also revealed the purpose of his visit to Standard Chartered Bank.

Lin Haoran leaned back in his chair, his fingers lightly tapping the smooth armrest, the surprise in his eyes gradually turning into deep contemplation.

Standard Chartered Bank's swift surrender not only signified the complete uprooting of HSBC's hard-earned foundation in Hong Kong, but also demonstrated that Li Ka-shing had resolutely severed all ties with the old financial system, HSBC, and Standard Chartered.

His sincerity, demonstrated by this "pledge of allegiance," has truly been put into practice.

This was a situation he had never anticipated. He had originally thought that even if Li Ka-shing shook hands with him and made peace, the internal situation of Cheung Kong Holdings would not change much.

To everyone's surprise, the other party presented this "pledge of allegiance" so readily and decisively!
"Good, very good. Standard Chartered is smart to be pragmatic. The termination of this agreement is a relief for Cheung Kong Holdings, and a good start for our cooperation as well."

His way of addressing Li Ka-shing changed from the polite and distant "Mr. Li" to the more framing "Cheung Kong Holdings" as a whole.

The way he looked at Li Jiacheng was less scrutinizing and more genuinely approving.

"Mr. Li, I appreciate your sincerity."

"Mr. Lin, you flatter me!" Li Jiacheng felt a great weight lifted from his heart, knowing that Lin Haoran had accepted his "pledge of allegiance."

He immediately added, his tone resolute: "To show our sincerity and to ensure the stability and synergy of Cheung Kong's financial lifeline, I have decided to pass on the news to the mainstream media in Hong Kong later."

Cheung Kong Holdings Limited will officially announce that, effective immediately, all financial transactions of the Group and all its affiliated companies, including but not limited to core accounts, settlements, credit, financing, and foreign exchange, will be fully transferred from Huifeng Bank to Hengsheng Bank!

He emphasized his words and continued, "At the same time, I will instruct the finance and legal departments to fully cooperate with Hengsheng Bank to ensure that all handover work is completed smoothly, efficiently, and seamlessly!"
Cheung Kong's financial business will remain firmly anchored within the Hang Seng Bank system.

"Good!" A glint flashed in Lin Haoran's eyes, and a satisfied smile appeared on his face.

Li Jiacheng's actions were even more swift and decisive than he had anticipated.

This is not merely a statement, but a substantial handover of Cheung Kong's financial lifeline to Hengsheng Bank, controlled by Lin Haoran.

This means that Hengsheng Group swallowed up Huifeng Bank's largest remaining customer resources overnight, its strength expanded rapidly again, widened the gap with Standard Chartered Group, and completely established its giant status among local banks in Hong Kong.

"Mr. Li is indeed decisive and efficient. Hang Seng Bank will definitely provide Cheung Kong with the highest quality, most efficient and most suitable financial services that are in our common interests. Cheung Kong's financial business will surely reach new heights with Hang Seng!"

The two exchanged brief opinions on the handover details, and the atmosphere was more harmonious and pragmatic than when they met in Bao Yugang's reception room that morning.

Because after this incident, the two became true business partners.

Li Jiacheng achieved the core objective of his trip—to solidify the alliance, express sincerity, and gain Lin Haoran's approval.

He didn't linger, knowing that Lin Haoran's time was precious, and thanked him again before taking his leave.

After seeing Li Jiacheng off, Lin Haoran stood in front of the huge floor-to-ceiling window, overlooking the still bustling Victoria Harbour late at night.

Standard Chartered's swift capitulation and Li Ka-shing's decisive transfer of financial business—these two consecutive bombshells had an effect far exceeding his initial expectations.

Not long after Li Ka-shing left, Simon Murray returned to the Connaught House from the Hutchison Whampoa Building.

Seeing this, Lin Haoran told Ma Shimin everything that had happened that morning, including Li Jiacheng's visit.

Ma Shimin was also very surprised when he heard this.

“Shimin, it seems that our Mr. Li has truly ‘surrendered’ this time. This pledge of allegiance is quite substantial.” He was referring to Bao Yugang’s suggestion, but even more so to Li Jiacheng’s determination to completely cut off his own escape route and tie Cheung Kong’s financial foundation to the “Hengsheng Group” chariot.

Sitting to the side, Ma Shimin was also deeply shocked: "Boss, your power has completely intimidated Standard Chartered. Mr. Li's move is tantamount to cutting off the last 'lifeline' of Huifeng Bank. Hengsheng Bank's acquisition of all of Cheung Kong's business will be the last straw that breaks Huifeng's back."

"Huifeng?" Lin Haoran's lips curled into a cold smile, his eyes looking as if he were looking at a piece of rotten wood. "It's just a piece of rotten wood. Notify Hengsheng Bank to fully coordinate with Cheung Kong and Hutchison Whampoa, and make sure they swallow and digest this piece of fat meat!"

I want a seamless transition; no step can be overlooked. Also, have the public relations department keep an eye on the political climate tomorrow.

"As for Huifeng, it's a bit of a pity that this century-old Hong Kong brand has been ruined."

In his memories of his previous life, Huifeng Bank was one of the top ten international banks in the world. Even in this world, a year ago, although it had not yet reached that world-class status, it was still the undisputed hegemon of Hong Kong's financial world.

It's quite regrettable that he managed to defeat them in less than a year.

However, the business world is like a battlefield, and since the other party is his business rival, he naturally cannot show any mercy.

The next morning!

As citizens welcomed a new day, two explosive news items, like two bombshells, instantly jolted the entire city awake!

Announcement 1, from Hutchison Whampoa Group.

"In order to optimize the allocation of the Group's financial resources, improve operational efficiency, and based on in-depth consideration of the synergy of future development strategies, the Board of Directors of Cheung Kong Holdings Limited has resolved:"

Effective immediately, all financial business of the Group and all its subsidiaries will be formally, fully and permanently transferred from Huifeng Bank to Hengsheng Bank.

The handover process has commenced smoothly and will ensure that the interests of clients and partners are not affected. Cheung Kong Holdings looks forward to establishing a long-term, stable, and mutually beneficial strategic partnership with Hang Seng Bank.

Announcement number two comes from Cheung Kong Holdings Limited.

The content of the announcement is similar to that of Hutchison Whampoa.

Many mainstream media outlets gave in-depth coverage because they had received the news the day before.

Hong Kong Commercial Daily's headline: "Lin Haoran's power is on full display again! Li Ka-shing brings Cheung Kong's financial empire to Hengsheng!"

Sing Tao Daily's headline: "Huifeng Bank suffers a fatal double blow! Cheung Kong's defection adds insult to injury, and the century-old enterprise collapses!"

The media reports instantly ignited the entire Hong Kong financial circle!
Hong Kong-style cafes, upscale restaurants, breakfast shops, office buildings in Central...

Every corner was in an uproar:

"My God! Cheung Kong Holdings has also transferred to Heng Sheng Bank. Then Hui Feng Bank must not have any big clients anymore, right?"

"Li Jiacheng is impressive! He's truly flexible and adaptable! He just reconciled with Lin Sheng, and then decisively severed ties with Huifeng, even transferring the entire Cheung Kong financial business to Hengsheng Bank, which is controlled by Lin Sheng! This pledge of allegiance is ruthless and thorough!"

"Standard Chartered's agreement to allow Cheung Kong to transfer its business to Hengsheng Bank seems to be a sign of weakness to Lin Haoran!"

"It's over! Huifeng is completely finished! Cheung Kong and Hutchison Whampoa were its last elephant-sized clients in Hong Kong! What does Huifeng have left now besides an empty shell and a pile of bad debts? Standard Chartered's acquisition of it was the biggest joke of the year, and now it has become its biggest burden!"

"Hengsheng Bank is about to soar to new heights! Having acquired the financial businesses of two behemoths, Hutchison Whampoa and Cheung Kong Holdings, who else can challenge them?! It is now the new uncrowned king of local banks in Hong Kong! Mr. Lin's move is far too ambitious!"

"Huifeng's stock price is also in jeopardy! It was previously drained of its resources by Standard Chartered Bank, leaving it with very few key businesses. I've also heard that the performance of its overseas subsidiaries is mediocre."

Inside the exchange, the opening bell tolled like a final death knell for Huifeng Bank.

Huifeng Bank's stock price plummeted without any resistance, as if all its bones had been removed!
Panic selling surged, with sell orders piling up and buy orders scarce.

The decline quickly broke through 15%, 20%, 30%... all the way down, heading straight for a 50% drop!

Since being acquired by Standard Chartered Bank, HSBC's share price has rebounded slightly, reaching a market capitalization of over HK$3 billion.

Although it is far below its peak, it is still considered one of the giants of Hong Kong.

However, having lost its two major clients, Cheung Kong Holdings and Hutchison Whampoa, Huifeng seemed to have no future in everyone's eyes.

The market, with its cold-blooded monetary vote, declared the de facto death of this once illustrious century-old institution on the Hong Kong financial stage.

Huifeng, a name that once represented the glory of British capital, has completely fallen from its position as a financial giant.

Fortunately, Standard Chartered Bank is now listed in London, not Hong Kong; otherwise, it would certainly have suffered a sharp decline as well.

However, this was only a matter of time. Information between London and Hong Kong is almost mutually accessible. Once something important happens in Hong Kong, it will soon reach London.

One can imagine that when the London stock market opened for the new day, the market was extremely disappointed with its strategic misstep in acquiring Huifeng, its weak performance in Hong Kong in the face of Lin Haoran, and full of doubts about its ability to maintain its core business in Hong Kong and its competitiveness in the Far East market.

Hutchison Whampoa's share price continued to rise today, and even Cheung Kong Holdings' stock started to rise today.

After all, from the perspective of shareholders, with Lin Haoran becoming the second largest shareholder of Cheung Kong Holdings and backed by the financial giant Hengsheng Group, Cheung Kong Holdings' future is not bad, and the rise in share price seems to be a matter of course.

As for Hang Seng Bank, having swallowed the financial businesses of Hutchison Whampoa and Cheung Kong Holdings, and backed by the deep-rooted and flourishing Lin Haoran, it has become the most dazzling and powerful new star in the reshaping of Hong Kong's financial landscape.

The rise of new elites is unstoppable.

After a slight fluctuation, Cheung Kong Holdings' share price stabilized and rebounded.

The market interprets Li Ka-shing's move as "submitting" to Lin Haoran, but it has successfully broken free from the heavy shackles of Huifeng and secured a stronger and more promising "thigh." In the long run, it may open up new development space for Cheung Kong Holdings, rather than being entirely negative.

Hutchison Whampoa's share price continued its steady upward trend after yesterday's surge.

Lin Haoran's successful integration, his swift and decisive removal of the old management team, and the fact that its core business was not affected by the transfer of financial business have led to unprecedented market confidence, with investors optimistic that Hutchison Whampoa under Lin Haoran's leadership will usher in a new era of glory.

Financial commentators were excitedly analyzing the situation on television and radio, their voices almost drowning out the clamor from the stock exchange:
"Standard Chartered's capitulation and Lin Haoran's tacit approval mark the complete end of the old financial forces represented by Huifeng Bank in Hong Kong! A new financial order led by Lin Haoran, the 'Hengsheng Group,' is being established with overwhelming force!"
The rise of Hengsheng Bank is the most prominent example!

"Li Jiacheng sacrificed control of the entire financial business of Cheung Kong Holdings in exchange for Lin Haoran's trust and protection. This move may seem humiliating, but it was actually a desperate measure to survive and secure a space for survival and development for himself and Cheung Kong Holdings in the torrent of the new era."

He lost some independent control over financial channels, but he shed heavier shackles and gained stronger backing and broader possibilities for cooperation.

"The collapse of Huifeng is yet another heavy sacrifice on Lin Haoran's path of expanding his business empire! His will has become an inviolable iron law in Hong Kong's business world!"

From Jardine Matheson to HSBC, from Li Ka-shing to Standard Chartered, who will be next? Hong Kong's business world has entered the 'Lin Haoran era'!

(End of this chapter)