In Hong Kong, we build a global business empire

Chapter 797 When luck comes, there's no stopping it!
Seeing the undisguised wariness in John Reed's eyes, Lin Haoran smiled slightly.

He knew in his heart that the conditions he proposed were seen by the other party as nothing short of exorbitant demands.

“Mr. John, I understand Citibank’s emphasis on equity structure,” Lin Haoran said calmly. “In that case, let’s try a different approach—3% of the shares plus $2 million in cash.”

I think this price is reasonable.

He paused briefly to give the other party time to think, and then further explained: "Based on Citibank's current market value, 3% of the shares are worth about $1.2 million. Adding $2 million in cash, the total is only $3.2 million, which is still lower than the $3.41 million that HSBC paid to acquire SITC Bank."

The conditions I offered weren't unreasonable.

John Reed shook his head after hearing this: "3% of the shares plus $2 million is still too high. The reason why Huifeng Bank was willing to acquire 51% of Haifeng Bank for $3.41 million is because they urgently need to expand into the US market, which is why they were willing to pay a premium."

Okay, here's the deal: 3% of the shares, plus $1.5 million. That's the highest I can offer within my authority. Anything more is truly beyond my capabilities.

Upon hearing this, Lin Haoran smiled and said, "Deal!"

But he immediately changed the subject: "However, I have an additional condition for this deal. If you agree, the 3% stake and $1.5 million in cash that we just agreed on can be officially finalized."

The $1.5 million in cash, plus a 3% stake in Citigroup worth approximately $1.2 million, totals approximately $2.7 million.

Converted to Hong Kong dollars at the current exchange rate, it is approximately 14 billion yuan.

When Lin Haoran acquired Huifeng Bank from Standard Chartered Bank, it only cost HK$10 billion.

In other words, once this deal is reached with Citibank, he will not only acquire Huifeng Bank at "zero cost," but also make a net profit of hundreds of millions.

The acquisition of HSBC by Standard Chartered Bank was a stroke of genius, a perfect deal that deserves applause.

“Please speak.” Upon hearing that Lin Haoran had added another condition, John Reed frowned and responded cautiously.

“I hope that after the transaction is completed, Citibank can provide Hengsheng Group with a permanent executive director position. This means that Hengsheng will not only become an important shareholder of Citibank, but will also directly participate in Citibank’s major decisions,” Lin Haoran said solemnly.

This is his true, ultimate goal.

Previously, although he had gained the appreciation of Mr. Walter Riston, Chairman of Citibank, through his numerous capital operations and was invited to join the Citibank board of directors, there was a clear division of powers and responsibilities within the board.

All Lin Haoran received was a seat as a "non-executive director".

Non-executive directors, also known as external directors, are characterized by not holding specific management positions in the company and not being involved in day-to-day operations and management.

Although they can participate in board meetings and provide advice and oversight, they have extremely limited say in key personnel, strategic, and investment decisions.

Simply put, it was more like an honorary posting, a bystander's seat isolated from the core power circle, with no real power to influence the course of Citigroup, this financial behemoth.

Lin Haoran naturally understood that a nominal position at Citibank would have limited impact on him. Only by gaining decision-making power could he strengthen the bond between their interests and ensure that Hengsheng Group would no longer be a passive financial investor that could be easily ignored in Citibank's future plans.

This permanent executive director position is the key fulcrum for him to leverage the future landscape.

This request clearly surprised John Reed.

He frowned, his tone becoming serious: "Mr. Lin, this request is probably beyond my authority. The executive board seats at Citibank have always been held by core management and senior professionals with deep industry backgrounds who are deeply involved in the bank's daily strategic operations."

This is not merely a matter of shareholding ratio; it concerns the stability of the bank's governance structure and the professionalism of its decision-making.

He stared intently at Lin Haoran, trying to read deeper intentions from the other's expression.

"We certainly welcome and value Hengsheng Group as an important strategic investor, but it is very rare for them to directly enter the executive board and participate in day-to-day management and core decision-making under our existing corporate governance framework."

May I ask, if I may? By insisting on this seat, at what specific level do you hope to play a more significant role?

John Reed's words, seemingly a question, were actually a clever way of setting up obstacles, highlighting the power, responsibilities, and thresholds represented by the executive director position, and implying that Lin Haoran and his Hengsheng Group might lack certain qualifications.

He threw a thorny problem, along with a test, back at Lin Haoran.

Lin Haoran's goal was, of course, very simple: to gradually enter the decision-making level of Citibank and increase his influence within the bank.

However, his ambition was clearly too great, and he certainly couldn't say it out loud.

Faced with John Reed's question, Lin Haoran calmly picked up his teacup, took a sip, and then responded unhurriedly:
“Mr. John, I understand your concerns. However, although Hengsheng Group is far less international than Citibank, we believe that our financial business layout and risk management experience in the Asia-Pacific region in recent years can provide unique value to Citibank’s globalization strategy.”

He gently put down his teacup, meeting Reed's scrutiny with candid eyes: "What I mean by 'participating in decision-making' is not to interfere with the bank's daily operations, but rather to contribute Hengsheng's expertise in areas such as Asia-Pacific market strategy, cross-border capital operations, and financial innovation."

After all, Citibank's future development opportunities in the Eastern market are precisely where our mutual interests converge. With Hengsheng Group becoming an executive director of Citibank, our cooperative relationship will become even closer, and then we'll truly be on the same side!

These words were perfectly worded, both responding to the other party's doubts and cleverly packaging one's own demands as a mutually beneficial cooperation opportunity.

Lin Haoran naturally understood that in negotiations at this level, blatant ambition would only arouse suspicion.

Only by making the interests appear mutually beneficial can this seemingly excessive demand become reasonable.

He added, "If Mr. John needs to consult with the other board members, I am willing to wait. I believe that a wise Chairman like Walter Riston will certainly see the strategic significance of this seat for the long-term development of Citigroup."

John Reed paused for a moment before nodding and saying, "Okay, Mr. Lin, I will have a conference call with headquarters in New York tonight to fully convey your demands and reasons."

He paused for a moment, his tone somewhat reserved: "However, I must remind you that the establishment of executive director seats requires a special resolution from the board of directors, which involves amending the company's articles of association."

Even if the chairman of Riston himself supports it, it still requires the approval of a majority of the board members.

Lin Haoran nodded slightly, seemingly having anticipated this response: "Of course, I understand that this takes time, but please convey to Mr. Riston and the board members that Hengsheng Group does not want an empty title, but a position that can truly create value for Citigroup in the Asia-Pacific region."

In this era of dramatic changes in the global financial landscape, I believe that an executive director familiar with Eastern markets is not a burden for Citigroup, but rather a rare opportunity.

Reed gave Lin Haoran a deep look. The composure and foresight displayed by this young man made him realize for the first time that this was not just a transaction, but could be a major turning point in Citibank's strategic layout.

“I will convey your message.” Reed stood up and extended his hand. “Whatever the outcome, Mr. Lin, today’s meeting has given me a completely new understanding of you.”

Lin Haoran raised his glass and gestured to John Reed: "Mr. John, cheers to the initial consensus we have reached, and to the deeper cooperation between Citibank and Hengsheng."

John Reed raised his glass in response: "Cheers, Mr. Lin. I hope this will be a win-win collaboration."

Two wine glasses clinked gently in the air, producing a crisp sound.

Behind this voice lies a temporary compromise between the two major financial groups based on a balance of interests. It also foreshadows a force from the East participating in the game of top financial giants in a more subtle and profound way in the future global financial landscape.

Lin Haoran knew that this was just the beginning.

The agreement still needs approval from Citigroup's board of directors, and uncertainties remain.

But in any case, today's negotiations have opened a small but potentially far-reaching crack in the heart of the American financial system, for Hengsheng Group and for himself.

And Haifeng Bank, this "money-losing" bank, is about to realize its final and greatest value in an unexpected way.

This may already be the most perfect path.

In his previous life, he had witnessed far too many cases of foreign banks failing miserably in the US market.

Ambitious foreign institutions, after investing huge sums of money and going through hardships to turn banks around, are often forced to relinquish control due to various "national security reviews" and "financial regulatory requirements" from the US government.

Even worse, they may be fined exorbitant amounts on trumped-up charges.

If Hengsheng Group really invests heavily in Haifeng Bank and devotes all its efforts to improving its operations, it's hard to guarantee that it won't suffer the same fate once the bank starts to turn a profit:
The U.S. Treasury or the Federal Reserve may intervene under various pretexts, directly interfering in the appointment and removal of senior bank executives, ultimately leaving Huifeng Bank to "work for someone else's benefit."

Instead of doing that, why not sell this hot potato now and exchange it for shares and a board seat at Citibank?

This approach avoids future political risks while leveraging Citibank's platform to more steadily expand its presence in the global financial market.

Thinking of this, Lin Haoran's smile became even more composed.

He gently swirled the remaining wine in his glass, his gaze drifting across the glass to the view of the southern shore of Victoria Harbour outside the window.

This transaction is far more than just a calculation of profit and loss on paper; it is a strategic move that will determine global financial dominance for decades to come.

What he needs to do now is wait for the response from the Citigroup board of directors, and at the same time prepare for his next move.

As the two finished talking, the setting sun outside the window bathed Victoria Harbour in a fiery red glow.

The golden afterglow streamed through the floor-to-ceiling windows, bathing the two men who had just ended this war without gunfire.

John Reed let out a long sigh of relief, his face showing exhaustion, but also a hint of relief.

Although the final conditions still need board approval, the core task assigned by headquarters has been completed: it prevented Lin Haoran from using Haifeng Bank to establish a foothold in the US market, and successfully incorporated this potential competitor into the Citigroup system, further consolidating Citigroup's dominant position in New York.

Although the cost was considerable, John Reed believed it was well worth it!
“Mr. John, then I won’t disturb your rest any longer.” Lin Haoran glanced at his watch, stood up, and took out an elegant business card from his suit pocket. “This is my mobile phone number in Hong Kong. I look forward to your call anytime.”

“Okay, Mr. Lin, take care.” John Reed accepted the business card with both hands, his demeanor serious. “I will contact you as soon as I have any news tonight.”

Please trust that I will do my best to facilitate this mutually beneficial deal.

After watching Lin Haoran leave, Reed stood alone by the window, gazing at the sunset gradually sinking into Victoria Harbour. He had to admit that this young man from the East had left a deep impression on him.

Within Citibank, besides Chairman Walter Ristol, he was the one who knew Lin Haoran's potential best.

Therefore, he has always tried his best to maintain a good relationship with Lin Haoran.

As Lin Haoran stepped out of the hotel and into the waiting Rolls-Royce, a confident smile finally appeared on his lips.

He was confident that John Reid would be his most powerful advocate during tonight's transatlantic conference call at headquarters in New York.

If this deal goes through, it will not only allow Reed to make a significant contribution before taking over as chairman, but it will also create a powerful alliance between Citibank and its subsidiary, Hengsheng Group.

As night deepens, the lights on both sides of Victoria Harbour gradually illuminate, reflecting the last rays of sunset on the horizon.

The Rolls-Royce smoothly merged into the traffic, and Lin Haoran comfortably leaned back in the back seat, the spacious interior allowing him to comfortably cross his legs.

His gaze swept across the dazzling night view of Hong Kong outside the window, but his thoughts had already flown to New York on the other side of the ocean.

Although there is only a two-word difference between executive directors and non-executive directors, it signifies a world of difference in power levels.

Non-executive directors can only offer advice on the periphery, and are mostly just figureheads.

When Walter Riston invited him to join the Citigroup board of directors, he was essentially granting him a nominal title without any real power, a status that existed in name only.

Executive directors, on the other hand, are able to participate in core decision-making and wield substantial power.

This position is not only his passport to truly enter the core of Citigroup's power, but it will also open up a new chapter for his companies to enter the US market.

The Rolls-Royce smoothly drove through the Cross-Harbour Tunnel, with the dazzling night view of Hong Kong Island flowing past the car window.

Lin Haoran stretched his body and placed his hands on the leather armrests.

As one of the top ten financial groups in the United States, Citibank's influence far exceeds what is apparent on the surface.

It not only controls hundreds of billions of dollars in assets, but also weaves a vast network of relationships covering both political and business circles worldwide.

From Wall Street to Washington, from the Federal Reserve to the Treasury Department, Citigroup's influence is ubiquitous.

Thinking of this, Lin Haoran's eyes became deep.

If he can indeed obtain a seat on the executive board, it means he will have access to Citigroup's most core business secrets and strategic plans, and it means he will become a member of the Citigroup consortium.

This is not just a position, but a key to unlocking the door to American financial power.

Through this seat, he can legitimately participate in Citibank's major decisions and advocate for the interests of his companies, such as Hengsheng Group, Hong Kong Land Group, and Wanqing Group, at critical moments.

More importantly, this identity will provide him with a natural layer of protection.

As an executive director of Citigroup, he will enjoy greater influence and a more lenient scrutiny in his business activities in the United States.

This is undoubtedly an important safeguard for his future plans in the US market.

Despite his current power and influence in Hong Kong, and despite his investments in Japan, the United States, and other places, he himself has no idea how much wealth he actually possesses.

In reality, Lin Haoran was well aware that without a strong foundation, he was still vulnerable in the face of true international financial giants.

His seemingly enormous assets were nothing more than a tempting piece of meat in the eyes of Wall Street tycoons.

Without a strong enough protective umbrella, one could become someone else's prey at any time.

Nowadays, all they can do is lord it over this tiny place called Hong Kong.

Even in Hong Kong, he was not actually able to completely wield power, because he still had to be mindful of the Governor's Office.

This is the reality.

Therefore, he began planning to enter the core of Citibank two years ago. When Walter Riston invited him to join the board of directors as a non-executive director of Citibank, it was the perfect start to this plan.

Now, he has finally waited for this once-in-a-lifetime opportunity.

Haifeng Bank, which was seen as a hot potato by others, became the perfect fulcrum for him to pry open the core of power at Citibank.

Lin Haoran couldn't help but smile. Sometimes, when luck comes, there's no stopping it.

Who could have predicted that this "money-losing" asset he took over from Standard Chartered Bank would become his key bargaining chip on his way to the pinnacle of power on Wall Street?

What's even more ingenious is that Huafeng Bank, which Standard Chartered Bank was trying so hard to get rid of, not only gave him a complete banking system for free, but now he's going to make a fortune from it.

Thinking of this, he smiled slightly: Standard Chartered Bank really is a true "money-giving angel".

As the vehicle drove onto Shixun Road, Lin Haoran's private villa came into view.

As soon as the car came to a stop, he saw that Guo Xiaohan had been waiting in front of the villa.

Although the two have not yet held a wedding ceremony, she has already naturally taken on the role of the hostess.

Guo Xiaohan, dressed in an elegant long dress, stood in the warm light of the porch.

Seeing Lin Haoran get out of the car, she walked lightly forward to greet him, naturally taking the handbag from his hand, and asked softly, "Brother Haoran, have you had dinner yet? If not, I'll have the kitchen prepare some food for you."

Lin Haoran gently put his arm around her shoulder and walked into the house, replying with a smile, "I just had a working lunch with John, the president of Citibank. It's chilly outside, so let's talk inside. I'd be worried if you caught a cold."

Upon hearing this, Guo Xiaohan felt a surge of sweetness in her heart and obediently walked alongside Lin Haoran into the villa.

Before we knew it, it was nine o'clock in the evening.

Meanwhile, in his suite at the Peninsula Hotel, John Reed sat solemnly in front of his communications equipment, preparing for a crucial transoceanic conference call with headquarters in New York.

At this time, due to the time difference, it is 9:00 AM in New York City in the Western Hemisphere.

Soon after John Reed told Walter Riston the terms of the negotiation, the two discussed it and quickly decided to convene a board meeting as soon as possible.

At 10:00 a.m. New York time, the atmosphere was somber in the top-floor conference room of Citibank's headquarters building.

Around the long walnut conference table sat a dozen or so of Citibank's most powerful executives—including several executive directors, risk control chiefs, and global business leaders.

Chairman Walter Riston sat in the head seat, while the other senior executives sat in their respective positions.

"Good morning, everyone." Reed's calm voice rang out in the conference room through the speakers. "I have just finished a meeting with Mr. Lin Haoran of Hengsheng Group, and I would like to report the results of the negotiations to you now."

He clearly reiterated the core terms of the deal that had been agreed upon: exchanging SITC Bank for a 3% stake in Citigroup plus $1.5 million in cash.

This condition sparked a murmur of discussion in the meeting room, but most people felt it was still within acceptable limits.

However, when Reed mentioned Lin Haoran's additional condition—a permanent executive director position—the atmosphere in the meeting room instantly became tense.

“That’s impossible!” Charles Wilson, the executive director in charge of investment banking, was the first to object. Behind him was a bigwig from the Citigroup.

“The executive board is our highest decision-making body, and we never set up exclusive seats for external investors. This would be tantamount to inserting an outsider into our core circle of interests.”

Risk management director Sarah Jenkins then stated, "From a corporate governance perspective, this sets a dangerous precedent. If we give Hengsheng a seat today, other major shareholders will make the same demands tomorrow, and our decision-making independence will be seriously challenged."

“More importantly,” Michael Johnson, head of global operations, added, “this means we will be sharing our most core business secrets and strategic plans with Hengsheng Group, a financial company from the Far East. Everyone here knows how much sensitive information the executive director has access to.”

Opposition voices rose and fell, creating an almost one-sided situation.

These executives knew perfectly well that having one more executive director meant having one more person to divide up the existing power and benefits.

Behind them, they are basically all represented by an important Citibank conglomerate tycoon.

Faced with a torrent of opposition, Reed calmly responded on the other end of the phone: "Gentlemen, I understand your concerns, but please consider a few key issues: First, if we refuse this condition, Lin Haoran can simply invest in Haifeng Bank himself and make the bank grow rapidly. I think everyone knows that Mr. Lin has such financial resources."

He paused for a moment, letting the possibility settle in everyone's mind.

“Secondly,” Reed continued, “Hengsheng Group’s network and resources in Asia are precisely the part of our globalization strategy that we most need to strengthen. Admittedly, we also have a presence in the Far East market, but it is far inferior to the banks under Hengsheng Group.”

A single executive director position has secured deep cooperation across the entire Eastern market; this is not merely a compromise, but a strategic investment.

“Third, and most importantly,” John Reed said with a serious tone, “in today’s global financial landscape, we need business tycoons like Lin Haoran who possess vast assets; he can provide us with tremendous assistance.”

As everyone knows, Mr. Lin Haoran has generated a tremendous amount of profit for Citibank in the past two or three years, a figure unmatched by any other client.

Rather than letting him become a potential competitor from the outside, it's better to bring him into our system and have him serve Citibank's interests.

John Reed stopped there, knowing he had said all he needed to say.

(End of this chapter)