In Hong Kong, we build a global business empire

Chapter 788 Excellent Value for Money!
Lin Haoran had his reasons for being willing to spend 1 billion to buy Huifeng Bank.

Because he felt that Huifeng Bank was worth that price.

Otherwise, he wouldn't have needed to argue with the other party so much.

At his level, frankly speaking, he no longer needed to show any respect to the governor.

Of course, it's best not to offend anyone.

After all, his home ground is still under the jurisdiction of the Governor's Office.

As for why they wanted to spend 10 billion to buy Huifeng Bank, the reason is quite simple.

For example, Huifeng Bank spent more than HK$17 billion to buy 51% of Haifeng Group, a subsidiary of Huifeng Group.

If he really wants to sell, it will be difficult to sell in the short term, but if given time, he believes he will sell it sooner or later.

As for whether to sell or keep, he has not yet decided.

Based on a 51% valuation, even if sold at the original price, it would be worth eight or nine hundred million Hong Kong dollars.

In addition, the Bank of England in the Middle East is also a profitable bank, generating tens of millions of Hong Kong dollars in profit for HSBC every year. Although it may not seem like much, it is a stable source of income in the long run.

Moreover, this bank has unique connections and business channels in the Middle East, and the business opportunities hidden behind these are immeasurable.

However, Hengsheng Group has not yet entered the Middle Eastern market.

The Middle East is rich in oil resources, and the demand for financial services is growing in various countries. Leveraging its local advantages, the Bank of England in the Middle East has established a firm foothold in the region.

Lin Haoran knew that if he could further explore its potential and expand its business scope, he might be able to reap huge wealth in this land full of opportunities.

Therefore, in Lin Haoran's view, the Bank of England alone is worth more than one billion Hong Kong dollars!
Standard Chartered Bank doesn't value the Bank of England in the Middle East because, like HSBC, it has already entered the Middle Eastern market.

Therefore, the Bank of England in the Middle East is just icing on the cake for Standard Chartered, but for Hengsheng, it is the key to unlocking the Middle Eastern market.

Furthermore, Huifeng Bank has cultivated a strong presence in the Indian market in South Asia for many years and has a stable customer base, which is precisely the area that Hengsheng Group has been looking to explore but has not yet entered.

It is also worth mentioning that Huifeng Bank has branches in international financial centers such as London, Tokyo, and New York.

Although these outlets have limited business scale in the European market, they constitute a complete international network, which perfectly fills the most critical link in the Hengsheng Group's globalization strategy.

It can be said that Hengsheng Group's internationalization process will achieve a qualitative leap through the acquisition of Huifeng Bank.

In addition, even now, although Huifeng Bank's market share seems to have decreased significantly, it still has a group of loyal customers, even in Hong Kong.

This is the reputation and word-of-mouth that Huifeng Bank has accumulated over a hundred years. This intangible brand value is difficult to measure with any amount of money.

Having weathered a century of trials and tribulations, Hong Kong's Hong Kong has witnessed the rise and fall of the city, and its brand holds a special place in the hearts of older generations of Hong Kong people.

Even after the recent turmoil, a group of loyal customers have chosen to stay, and this loyalty is exactly what Hengsheng Group needs to accumulate over time.

Isn't HK$1 billion worth it?

It's absolutely great value for money!
This deal not only gave Hengsheng Group the global business network it had always dreamed of, but also opened up the most promising emerging markets at minimal cost.

In Lin Haoran's view, this is undoubtedly a key step for Hengsheng to become a world-class financial institution.

In the past, Lin Haoran would never have been able to buy Huifeng Bank.

After all, even if he wanted to buy it, the British wouldn't let him.

Now that he has finally encountered an opportunity to buy from an Englishman, and even the Governor's Office has explicitly told him to make the purchase, how could he possibly miss it?
Moreover, Lin Haoran did want the 30 billion yuan penalty for breach of contract, but he knew it was impossible to get it.

After all, he also knew that the British government had already been bribed by Standard Chartered Bank, which had granted Standard Chartered Bank the right to issue banknotes for Bank of East Asia. It was just that there had been enough time before, so it had not been implemented.

When the final period came and it became clear that Lin Haoran had no intention of acquiring Huifeng Bank, Standard Chartered Bank would ultimately have the Governor's Office grant Hengsheng Group a currency-issuing right.

Therefore, the so-called HK$3 billion in compensation is merely a bargaining chip.

Lin Haoran was fully aware of this.

Standard Chartered Bank is currently short of funds, so how could they possibly come up with a huge sum of HK$30 billion to make compensation?

Now that the deal is done, Lin Haoran is very satisfied.

First, he secured the Huifeng Bank brand, something he never dared to dream of before, and the money he spent was well worth it.

Secondly, they did not offend the Governor-General's Office.

Most importantly, they also successfully obtained the right to issue currency.

Although the negotiation process had some twists and turns, the result was satisfactory.

Standard Chartered Bank thought they had easily gotten rid of a troublesome problem.

But Lin Haoran certainly felt like he had gotten a great deal.

I wonder if Standard Chartered Bank will regret its decision today when the Hong Kong real estate crisis truly erupts each year and Caring Group, or even other real estate companies, go bankrupt?
Let's turn our attention back to the chairman's office at Hengsheng.

“Very good.” Lin Haoran sat down again and winked at He Shanheng. “Uncle He, this matter is your responsibility. Complete it with Standard Chartered Bank as soon as possible.”

“Okay, I’ll keep a close eye on things,” He Shanheng replied immediately.

Tyron breathed a sigh of relief, feeling as if a huge weight had finally been lifted from his heart.

Although the negotiations were humiliating for him, the final outcome was still acceptable.

Thankfully, I didn't give up.

He suppressed his inner elation and tried his best to maintain a professional expression: "Mr. Lin is indeed straightforward! This proposal truly reflects the sincerity of both parties."

Although it's only HK$1 billion, for him, the most important assets of Huafeng Bank now—those corporate clients—can all be handed over to Standard Chartered Bank. This transaction has far exceeded expectations.

What was handed over to the other party was nothing more than Huifeng's century-old brand and its overseas assets.

Before acquiring HSBC, Standard Chartered was quite interested in SITC, as they were actually trying to compete with HSBC for SITC.

After all, entering the US market is not easy, and the acquisition of SITC Bank undoubtedly established a bridgehead for further expansion in North America.

However, Standard Chartered Bank paid too high a price to try and take over HSBC's market share, and now it is willing but unable to do so.

Furthermore, after Huifeng Bank acquired Haifeng Bank, Haifeng Bank had to inject capital into Haifeng Bank year after year due to Haifeng Bank's continuous losses.

This kind of bank makes Standard Chartered Bank even more hesitant to invest.

Therefore, after acquiring HSBC, Standard Chartered Bank sought to sell SITC Bank multiple times.

However, perhaps due to the short timeframe or excessively high asking prices, Standard Chartered Bank has failed to find a suitable buyer for SITC Bank in the past three months.

Just as the contract signed with Hengsheng to help them obtain the right to issue banknotes was about to expire, Tyron had the idea of ​​handing Huifeng Bank over to Hengsheng Group.

Although the final price reached was far below the initial expectation, it was still a pleasant surprise for Tyron to be able to pass on the hot potato that was Haifeng Bank to Hengsheng Group.

Tyron suppressed a smile and spoke in a composed manner: "Mr. Lin, Mr. He, if there's nothing else, I'll head back now. I need to report this to headquarters as soon as possible and get it settled quickly."

Lin Haoran picked up his teacup, gently blew on the tea, and said calmly, "I hope Standard Chartered Bank can keep its promise and complete the handover on time."

"Definitely, definitely!" Tyron nodded repeatedly. "I will organize a team to connect with your side as soon as possible."

Immediately afterwards, Tyron left He Shanheng's office in a hurry.

After watching Tyron's figure disappear completely, He Shanheng turned his gaze back to Lin Haoran.

He couldn't help but exclaim, "Haoran, your negotiation skills are truly beyond my reach!"

Lin Haoran smiled. The reason he was able to talk so boldly was simply because he had the confidence to back it up.

If he didn't have confidence, how could he have been so composed at the negotiating table?
This confidence stems from his current immense wealth.

"By the way, Haoran, why do you want to abandon Huifeng Bank's remaining corporate clients? If we can acquire these clients, our market share in the financial sector will increase significantly again, making our dominant position even more secure," He Shanheng asked, posing a question he couldn't understand.

He had wanted to interrupt earlier, but ultimately held back.

He knew that Lin Haoran must have his reasons for being willing to abandon Huifeng Bank's corporate clients.

As the saying goes, even a small camel is bigger than a horse.

Huifeng Bank has indeed suffered heavy losses in the past few months, with most of its resources being absorbed by Standard Chartered Bank and Hengsheng Group.

But it is still a century-old brand, and its corporate clients that have been rooted in Hong Kong for decades are still a tempting piece of meat.

Therefore, even though Huifeng Bank was on the verge of bankruptcy, many important clients still continued to cooperate with it.

The Jianing Group is about to collapse in the near future, and apart from Lin Haoran, probably no one else knows about this.

He naturally wouldn't say something so unbelievable, so he never mentioned it, neither to Ma Shimin nor to He Shanheng and others. "Uncle He, as the head of the bank, you should also feel that Hong Kong's real estate industry is currently in a very bad situation," Lin Haoran said with a smile.

He Shanheng nodded and said, "Indeed, although Hong Kong's housing prices are still relatively stable, transaction volume has dropped significantly. The reason why prices have been stabilized is the result of the concerted efforts of the Hong Kong Real Estate Alliance."

He picked up his slightly cooled tea and took a sip, his brow furrowing slightly: "However, this situation probably won't last long. Recently, several small and medium-sized real estate developers have started to falter and are looking for buyers in private."

Lin Haoran gently swirled the teacup in his hand, his gaze deep: "Then, Uncle He, how many of Huifeng Bank's corporate clients do you think are related to the real estate industry?"

He Shanheng was taken aback for a moment, then suddenly realized: "You mean..."

“That’s right,” Lin Haoran put down his teacup. “At least 40% of Huifeng’s corporate clients are real estate developers and construction companies, and another 30% are related upstream and downstream companies. These clients seem stable now, but in reality they are already standing on the edge of a cliff.”

"However, companies like Caring Group are among the top five giants in Hong Kong's real estate industry. Even if a real estate crisis really occurs, they should be able to weather the storm, right? Hong Kong's real estate industry may be risky in the short term, but in the long term, I think it will develop in a positive direction."

Just like in 1973, Hong Kong also experienced a severe real estate crisis, with housing prices falling by more than 90% at one point, almost halved. However, not long after, Hong Kong's real estate market began to recover and reached new highs. This time, it will probably be no exception.

"Let alone the fact that the real estate market hasn't fallen into a real crisis yet, even if it had, as long as we weather the storm, these clients would still be the backbone of Hong Kong's economy. So it would be a real shame to hand them over to Standard Chartered Bank," He Shanheng said with a puzzled look.

In 1973, the Hong Kong stock market experienced an unprecedented frenzy followed by a sudden collapse, with the Hang Seng Index falling sharply from its high point by more than 90%.

This event had a profound impact on Hong Kong's economy, and the real estate market, as an industry closely related to the stock market, was also severely affected.

In the same year, the Middle East oil crisis broke out, causing global energy prices to soar and further exacerbating Hong Kong's economic recession.

As a vital component of the economy, the real estate market was not spared either.

Hong Kong's property market has entered a period of downturn due to the double blow of the stock market crash and the oil crisis.

Land and housing prices have fallen sharply, market transaction volume has shrunk, and many real estate companies are facing difficulties such as broken capital chains and project stagnation.

As a bigwig in Hong Kong's banking industry, Ho Sin-hang naturally experienced this real estate crisis and is very familiar with it.

Lin Haoran listened quietly, and only spoke slowly after He Shanheng finished speaking: "Uncle He is right. In the long run, Hong Kong real estate will indeed recover, but the problem lies in the reliability of these real estate companies."

I won't talk about other real estate companies, but I'll talk about this Caring Group. I've investigated this company in depth, and I think its source of funds is very problematic. Although the billions of Hong Kong dollars it borrowed from Huifeng Bank were secured, the value of the assets used as collateral was seriously inflated.

If what I've investigated is true, then if Xiangjiang Real Estate were to experience a situation like that of 1973, Uncle He, do you think Jia Ning Group could survive?
At that time, Huifeng Bank, as the lender, will inevitably be dragged into the abyss by Jianing Group.

The investigation was obviously something he made up on the spot. Even Standard Chartered Bank and Huifeng Bank couldn't find anything, which shows that Chen Songqing of the Caring Group is indeed very clever. It may be difficult to find even the slightest clue.

However, as a reborn individual, Lin Haoran naturally knew the inside story of the impending collapse of the Jianing Group.

He Shanheng pondered for a moment and said, "If what you say is true, then these customers are indeed a hidden danger. I'll listen to you on this matter."

Lin Haoran glanced at the time; it was almost nine o'clock in the evening. He smiled and said, "Uncle He, it's late. Thank you for your hard work today. Let's all go home now. We'll leave the handover with Standard Chartered Bank to you."

"Okay, you too. You just flew back from Shanghai and immediately started working. You should go back and rest early too. Xiaohan is probably getting anxious waiting at home. Let's go back first. I'll definitely keep a close eye on the handover. Don't overwork yourself. Health is the foundation of everything."

Lin Haoran also got up and walked out of the office with He Shanheng.

After passing through the corridor, they soon arrived at the elevator. They chatted briefly about the follow-up work arrangements as they walked until the elevator stopped in the underground parking garage of the Kang Le Building.

After saying goodbye, Lin Haoran got into the back seat of the Rolls-Royce.

Li Weidong started the engine, and the convoy of private cars slowly drove out of the underground garage, quickly merging into the traffic and heading towards the Shi Xun Road villa.

"Beep beep."

The car was parked in the private parking space of the Shi Xun Road villa. Guo Xiaohan, who had already heard the commotion, excitedly came to the yard where the car was parked.

As soon as Lin Haoran got out of the parking space, Guo Xiaohan couldn't wait to throw herself into his arms.

The bodyguards all turned their heads away consciously.

Holding Guo Xiaohan in his arms, Lin Haoran said with a smile, "What, you missed me that much?"

"Yes, Haoran, I miss you so much!" Guo Xiaohan nodded emphatically.

"Let's go inside. There are so many people here, aren't you shy?" Lin Haoran touched Guo Xiaohan's face and laughed.

Guo Xiaohan blushed and lifted her head from Lin Haoran's embrace, then took his arm and walked into the villa.

A late-night snack has been prepared in the living room, and the warm light creates a welcoming atmosphere.

"Haoran, have some soup first. I specially asked the kitchen to make it." Guo Xiaohan carefully ladled out a bowl of soup and handed it to him. "How was your trip to the mainland?"

Lin Haoran took the soup bowl and briefly talked about what he had gained from his trip to the mainland.

Watching Guo Xiaohan listen attentively, he suddenly felt that no matter how much he experienced ups and downs in the business world, he could always find inner peace here.

"And you, what did you gain from your trip to Guangdong? When did you return?" Lin Haoran asked in return.

When he went to Beijing, Guo Xiaohan had gone to Guangdong Province a day earlier for disaster relief. A typhoon had caused considerable damage to the coastal areas of Guangdong Province.

As the head of the Lin Haoran Charity Foundation, Guo Xiaohan represented Lin Haoran and personally led a team to the disaster area for relief efforts.

"I only got back a few days ago. This time I went to the mainland, I visited many places, including western Guangdong and Xiangshan. This typhoon caused considerable damage to the coastal areas."

Guo Xiaohan sighed softly and continued, "Especially in several fishing villages in western Guangdong, many houses were destroyed. However, what's touching is that the local government and the people are actively helping themselves."

Lin Haoran nodded. He knew that the entire Guangdong province was a typhoon disaster area, experiencing many typhoons every year, and western Guangdong was obviously the place most frequently visited by typhoons.

Unlike decades later, when every household had a small villa, this era was quite different.

More common were mud-brick and earthen-tiled houses, whose sturdiness was obviously incomparable to that of reinforced concrete buildings.

Basically, it's quite common for things to be blown over if the wind force exceeds a certain level.

This is a natural disaster, an inescapable calamity, and there's nothing we can do about it.

In the face of natural disasters, human resources are indeed limited.

Putting aside other things, Hong Kong alone experiences typhoons almost every year, only the degree of impact varies.

Fortunately, typhoons can be detected in advance by satellites these days, so we can make preparations in advance. Therefore, the casualties are not serious, and the main damage is property loss.

“When we were in Tuocheng,” Guo Xiaohan continued, “we saw many villagers spontaneously clearing the roads. One old man said that they had lived by the sea for generations and were used to coexisting with typhoons.”

Many villagers are extremely grateful to us for bringing disaster relief supplies and providing each household with housing reconstruction subsidies. They even said they want to have Haoran's name engraved on the merit tablet in the ancestral hall.

Lin Haoran smiled upon hearing this: "These villagers are too kind. We were just doing what we could."

He sighed softly, knowing in his heart that his abilities were ultimately limited and it was impossible for him to help every affected family rebuild their homes.

If we really did that, it would undoubtedly be a bottomless pit that can never be filled.

Worse still, it may cause the recipient to develop a dependency mentality. Such a seemingly kind act actually has endless consequences and should not be done.

It can be said that doing charity is also a science.

Therefore, he prefers to donate public facilities such as schools.

In this way, it can benefit more people and bring long-term social benefits, which can be described as killing two birds with one stone.

As for the disaster-stricken areas, donating more supplies and money to families in particularly difficult circumstances within one's own capacity is enough to show one's goodwill.

He knew he was not a savior and did not have the extraordinary ability to save all living beings.

In this era, there are countless people in the mainland who need help, and he can only do his best based on his own abilities.

The two sat on the sofa and chatted about these topics for a long time.

Perhaps because she had already become Lin Haoran's fiancée and had a formal status, Guo Xiaohan seemed particularly attached to him after only ten days apart. She nestled close to Lin Haoran and whispered about what she had seen and heard over the past few days.

Holding his beautiful wife in his arms, Lin Haoran felt a surge of warmth in his heart.

He gently stroked Guo Xiaohan's long hair and said softly, "You've worked so hard these past few days. I heard you even helped carry supplies yourself while you were in the disaster area?"

Guo Xiaohan looked up, her eyes shining: "Yes, I feel especially at ease being able to help others. Although those villagers live in poverty, they are all very strong. One old lady even cooked sweet potatoes for me, saying it was the best food she had at home."

Lin Haoran nodded slightly. Although Guo Xiaohan had been pampered since childhood and came from a wealthy family, she was very kind-hearted.

Moreover, she has an exceptional talent for business, making her the perfect person to manage the Lin Haoran Charitable Foundation.

Lin Haoran gazed into the clear, bright eyes of his fiancée in his arms, his heart filled with joy.

Guo Xiaohan is not only kind-hearted, but what is even more commendable is that she quickly integrated into this career.

Although the two are not officially married yet, Guo Xiaohan already knows how to enhance her fiancé's influence.

With such a beautiful woman by my side, what more could I ask for!

(End of this chapter)