In Hong Kong, we build a global business empire

Chapter 799 A Divine Stroke That Shook Hong Kong

On the morning of October 29th, the air in Hong Kong was filled with the aroma of dim sum and the clear cries of newsboys.

"Breaking News! Breaking News! Exclusive from Oriental Daily News! Mr. Lin creates another miracle: Haifeng Bank changes hands to Citibank for a record price!"

"Hengsheng Group's astonishing deal: Lin Haoran pulls off a get-rich-quick scheme, while Standard Chartered Bank becomes the biggest loser!"

"A stroke of genius! Lin Haoran 'got something for nothing,' and Hengsheng Group netted hundreds of millions of dollars from Citibank and a core board seat!"

The huge, bold headline almost occupied the entire front page of the Oriental Daily News.

The report provides a detailed account of the ins and outs of the deal, from Lin Haoran's HK$10 billion acquisition of Huifeng Bank, which Standard Chartered was eager to divest, to his current acquisition of a 3% stake in Citibank, valued at approximately US$1.2 million.

With an additional $1.5 million in cash, totaling approximately $2.7 million (equivalent to about HK$14 billion), HSBC sold its "hot potato" subsidiary, SITC, to Citibank.

Even more shockingly, the deal came with a condition that everyone in the financial world coveted: Hengsheng Group would receive a permanent executive director position at Citibank!
The article presents a clear calculation: Lin Haoran not only acquired the complete banking system of Huifeng Bank at almost "zero cost," but more importantly, he opened the door to the core of global financial power for Hengsheng Group and himself.

"A single buy and sell demonstrates true business acumen!" The Oriental Daily News praised, "Mr. Lin Haoran's actions are a prime example of 'turning stone into gold' in modern business history."

Haifeng Bank, which Standard Chartered once considered a burden and was eager to sell, was transformed in a short period of time by Mr. Lin into a strategic bargaining chip in transactions with global giants such as Citibank.

This is not only a huge financial success, but also a perfectly executed strategic move!

The report caused an uproar throughout Hong Kong.

At the newsstands and inside the stock exchange, almost every topic of conversation revolved around this astonishing deal, and everyone held a copy of the Oriental Daily News.

In the teahouse, the diners who were originally discussing horse racing and the real estate market were instantly replaced by this explosive news.

"Wow! Lin Haoran is really sharp! I thought he was a sucker when he spent 1 billion to buy Huifeng, but who knew he had such a long-term vision!" A stock investor exclaimed, slapping his thigh as he read the article in the newspaper.

"Damn it! Standard Chartered Bank has really lost all face this time! They threw away what they considered garbage, and someone else sold it for a sky-high price and even got a board seat at Citibank! What a slap in the face!" Another middle-aged man who looked like a businessman said, spitting as he spoke.

"So, people have different perspectives. While we are still laughing at others for taking over, they have already made plans from a height that we cannot see."

"Hengsheng Group has truly made a leap forward this time!" A bank employee wearing gold-rimmed glasses pushed up his glasses, his tone full of admiration.

At a newsstand in Mong Kok, Kowloon, a dozen or so citizens gathered around, each holding a copy of the Oriental Daily News.

After they bought the newspaper, they couldn't wait to stand there and read it.

"Wow! 3% of Citibank's shares plus 150 million US dollars? Wasn't Haifeng Bank supposed to be losing money hand over fist? How did Lin Sheng manage that?"

"Incredible! Absolutely incredible! When Standard Chartered Bank was sold to Hengsheng Group, everyone thought it would be a problem, but who knew they would turn waste into treasure and sell it for a sky-high price."

"And there's a seat on the board of Citigroup! For the first time, a Chinese person is sitting squarely on the decision-making platform of a Wall Street giant!"

"Wow, impressive! He's really brought honor to the Chinese community. Huifeng was the former British-owned leader in Hong Kong, and Citibank is the American giant. Mr. Lin has conquered them all! Who dares to say that we Chinese don't know how to play the financial game?"

On the streets and alleys, taxi drivers, shop owners, and office workers alike are all discussing it.

Lin Haoran's reputation reached unprecedented heights at this moment. He was no longer simply a "Hong Kong tycoon," but was crowned with dazzling titles such as "financial magician," "the pride of the Chinese people," and "the pride of Hong Kong."

The national pride brought about by Hengsheng Group's acquisition of Huifeng Bank has not yet subsided, and this top-tier deal with Wall Street giants has pushed that pride to a fever pitch.

Hong Kong citizens seem to be witnessing a local hero who, with his wisdom and skill, is writing a legendary chapter belonging to the Chinese people on the world financial stage.

Compared to the shock and excitement of ordinary citizens, the reaction in the financial sector was much more complex, with deeper interpretations and divisions emerging beyond the initial shock.

In the offices of various banks in Central, analysts and executives are holding emergency meetings to reassess the strength and threat posed by Hengsheng Group and Lin Haoran.

Those who previously mocked Lin Haoran for being "foolish and rich" and "not understanding the banking industry" have all disappeared, replaced by deep shock and re-examination.

"Ingenious! Lin Sheng's move is simply a textbook example of asset management. He accurately judged Citibank's desire for Haifeng Bank's branch network resources, and even more so, he accurately judged Citibank's fear of him gaining a foothold in New York State."

By exchanging a distressed asset for core shares of Citigroup and valuable cash, and most importantly, an executive director position, they opened the door to the highest echelons of global financial power!
The corporate clients abandoned and the burden of non-performing assets taken up during the previous acquisition of Huifeng are simply insignificant compared to the benefits and strategic value brought by this transaction! Standard Chartered? It has become a stepping stone in Lin Sheng's perfect chess game! "An analysis director of a Chinese-funded securities firm exclaimed in admiration.

Another veteran fund manager remarked with a hint of disbelief: "Just a few days! From taking over Huifeng to selling Haifeng to Citibank, it only took a few days!"

This is not just vision, but also unparalleled execution, courage, and negotiation skills! Lin Sheng's grasp of timing and understanding of his opponents' psychology have reached the pinnacle.

This deal is classic enough to be included in top business school case studies.

On that day, the Oriental Daily, which had exclusive coverage, sold out almost immediately.

Throughout the day, Oriental Daily News sold a total of 57.8 copies, marking the first time the newspaper's daily sales have exceeded 55 copies, setting a new record.

Previously, the highest number was only slightly over 50 copies.

In any case, this deal completely overturned the previous perception that Lin Haoran was being taken advantage of.

As an evening newspaper, the Hong Kong New Evening Post promptly published its issue that afternoon.

His headline article, "A stroke of genius: How did Lin Haoran turn the rotten into the miraculous?", once again amazed the citizens.

The voices that previously questioned Huifeng Trading now appear pale and powerless in the face of irrefutable facts and enormous profits, and are quickly drowned out by a sea of ​​praise.

At this moment, however, the atmosphere in the conference room on the top floor of the Standard Chartered Bank building in Hong Kong had dropped to freezing point.

The latest edition of the Oriental Daily News was slammed onto the conference table by Tyronn, the new tycoon of Standard Chartered Hong Kong.

The photo of Lin Haoran shaking hands and smiling with John Reed on the front page of the newspaper seemed incredibly jarring to him at that moment.

"Disgrace! Utter disgrace!" Tyron's forehead veins bulged as he practically spat out the words through clenched teeth.

He glanced around at his equally grim-faced colleagues, his voice trembling with anger.

"Can anyone tell me what exactly happened? We dumped Haifeng Bank and Huifeng together like a bag of garbage and handed it over to Lin Haoran, and even took on the responsibility of stripping away 58 billion yuan of debt. We thought he was taking over a mess that was hot enough to burn your hands!"
And what happened? Just a few days, only a few damn days, and he sold the core of this mess to Citigroup! And for an astronomical price: 3% of Citigroup shares, $1.5 million in cash, and an executive director seat!

There was a deathly silence in the Standard Chartered Bank conference room.

Tyronn's roar echoed in the conference room: "Where's the team that was in charge of finding buyers in the US? Step forward!"

A middle-aged man wearing gold-rimmed glasses stood up shakily: "Mr. Tyronn, we did contact Citibank at the time, but they made it clear that they were not interested in Haifeng..."

"Not interested?" Tyron sneered, picking up the newspaper. "Then what is this? Magic?"

Several senior executives who were in charge of handling the sale of Huifeng Bank hung their heads, silent and trembling, with beads of cold sweat on their foreheads.

They did approach Citibank, a financial giant also based in New York State, but Citibank's response was very perfunctory, making it impossible for them to see any opportunity to sell to Citibank.

None of the executives present could understand why Haifeng Bank, which they had tried so hard to sell, was sold by Lin Haoran in just a few days, and at a high price.

"And what did we get? We only got HK$10 billion in cash and the relief of getting rid of a burden. Now the whole financial world is laughing at us!"
Look how blind Standard Chartered Bank was! They threw away a piece of gold covered in mud as trash, only for a young Chinese man to pick it up, polish it, and sell it for diamond prices!

The meeting room was completely silent; everyone kept their heads down, not daring to look directly at the furious Tyron.

However, Tyronn was also very clear that his outburst in the conference room would be completely useless.

He was the one who strongly pushed for the divestiture of Huifeng Bank to Hengsheng, believing it to be the best solution to get rid of non-performing assets.

The transaction assessment report he spearheaded now seems more like a self-humiliating document.

Although Tyronn's roar had subsided in the conference room, the suffocating sense of oppression lingered in the air, refusing to dissipate for a long time.

He slumped back into his seat, his once straight back seemingly collapsing instantly, leaving only his bloodshot eyes fixed on Lin Haoran's calm and confident smile on the front page of the newspaper.

"Let's adjourn."

He waved his hand, his voice hoarse and weary.

Tyron knew that continuing this meeting would be pointless.

He is destined to be the scapegoat in this matter.

The executives felt as if they had been granted a pardon. They lowered their heads and quietly and quickly left the conference room, afraid that if they were even a step too slow, they would reignite the volcano that was about to erupt in Tyron.

The last person gently closed the door, leaving only Tyron and the glaring copy of the Oriental Daily in the huge conference room.

Sunlight streamed in through the huge floor-to-ceiling windows, offering a panoramic view of Central's bustling cityscape, but Tyron felt a chill run through him.

He leaned back in his chair, closed his eyes, and his mind uncontrollably replayed the scenes of when he had strongly advocated for the deal with Hengsheng Group.

At that time, he was so full of vigor and ambition.

The successful disposal of Huifeng Bank, a "non-performing asset," was seen by the London headquarters as a crucial step in turning around the business situation in Hong Kong.

The transaction report, personally drafted by him, detailed how the divestiture of Huifeng Bank would allow Standard Chartered to shed this heavy burden, optimize its balance sheet, and enable it to focus on its core businesses with greater growth potential. In the report, he described Lin Haoran and Hengsheng Group as "acquirers with insufficient understanding of the complexities of the banking industry but strong financial resources," implying that this transaction was a prime example of Standard Chartered's skillful transfer of risk.

He could even recall the approving looks from several senior directors when he reported to the London board during his business trip to the London headquarters a few days earlier.

At the time, a director who had a good personal relationship with him said to him privately, "Mr. Tyron, well done! If this deal can be completed successfully, your reputation at headquarters will reach new heights, and you may well be able to compete for a position on the board of directors in the future."

"The future positions on the board of directors..."

This statement now seems like a joke.

He once thought this deal would be the most glorious chapter of his career, a solid stepping stone to the pinnacle of power.

But now, that step has instantly turned into quicksand that is swallowing him up.

Lin Haoran was not a "lack of awareness when taking over," but a sharp-eyed and far-sighted hunter.

Standard Chartered is not a "wise risk transferor," but rather a "foolish clown" who was kept in the dark and handed over strategic chips to others.

“The Joker…” Tyron muttered to himself, a bitter smile curving his lips.

He recalled a phone call he received that morning from an old friend on Wall Street, who said, half-jokingly and half-seriously, "Hey, Tyron, when did Standard Chartered switch to philanthropy? Providing seed money and ammunition specifically for Eastern geniuses?"

He was completely baffled until his secretary placed the Oriental Daily News on his desk.

The entire global financial community is watching this as a joke!

Look at Standard Chartered Bank, look at Tyronn, how he perfectly embodies the phrase "blind to the truth"!

What he found most unacceptable was that they had tried to find other buyers, including Citibank.

But Citibank's dismissive attitude convinced them that SITC Bank was completely unattractive.

But why was Lin Haoran able to do it?

What key point did he grasp that they had overlooked?

Is it a potential threat to that New York State banking license?
Or is it that they underestimated some special value of SITC Bank?
Whatever the answer may be, it only proves that Standard Chartered's team had a fatal blind spot in their professional judgment.

He himself is the biggest promoter and person responsible for this blind spot.

A gentle knock interrupted his thoughts.

The secretary pushed open the door and reported directly, "Mr. Tyronn, the private line of Lord Derek Barber, Chairman of the Board of Directors at the London headquarters, requests to speak with you now."

What was supposed to come finally came.

And it came so quickly that it didn't even give him any time to prepare.

Tyron took a deep breath, trying to make his expression look calm, but he could feel his facial muscles stiffening and unresponsive.

He straightened his crooked tie, cleared his sandy throat, and then left the meeting room to return to his office.

“Tyron.” Lord Derek Barber’s voice seemed calm at the moment, but Tyron’s heart tightened involuntarily.

“Mr. Chairman,” Tyron said, trying to keep his voice steady.

Lord Derek Barber's voice came through the transatlantic telephone line, carrying the chill unique to the other side of the Atlantic: "I think you've already seen today's news; the Financial Times and the Wall Street Journal have both reprinted it."

The entire City of London is now talking about how Standard Chartered Bank perfectly missed out on a deal worth nearly $300 million.

Tyron gripped the microphone and replied, "Mr. Chairman, we are conducting an in-depth analysis of this matter."

“Analysis?” Lord Derek Barber interrupted him. “I need more than just analysis. This morning at the board meeting, everyone was questioning the original decision-making process. That assessment report you spearheaded now looks like a joke.”

Tyron felt his back was soaked with cold sweat.

He knew that the "fellow directors" Lord Derek Barber referred to mainly meant Richard, who was also qualified to take the position of the next chairman of the board.

"Mr. Chairman, the assessment at that time was based on..."

"Based on what? Based on your belief that Lin Haoran doesn't understand the banking industry? Based on your belief that Haifeng Bank is worthless? Or based on your eagerness to complete this transaction so as to add a good entry to your resume?" Lord Derek Barber interrupted Tyron directly.

Every word felt like a whip lashing at Tyron's heart.

He opened his mouth, but found himself speechless.

He already had a general idea that headquarters was looking for a scapegoat.

And Tyronn, like Brown, the former tycoon of Standard Chartered Bank in Hong Kong, has probably become the scapegoat.

Thinking about this, Tyron felt even more bitter.

He had previously mocked Brown behind his back, believing that Brown had made such a great contribution to Standard Chartered Bank that he would have been the next chairman of the board of directors of Standard Chartered Bank without any surprise.

However, he completely lost his eligibility to be the heir because he offended Lin Hao.

Therefore, after taking over Brown's position, Tyron was always cautious when facing Lin Haoran, not daring to offend this troublemaker.

But to my surprise, I still couldn't escape this fate in the end.

He thought he was cautious enough, but he still fell into the hands of the same person, and in a more thorough and humiliating way.

He could almost see his bleak future in the workplace.

"What's even more worrying is that this deal gave Hengsheng Group a board seat at Citibank, which means that we not only lost a potentially huge amount of revenue, but also made our competitor stronger."

Tyronn, this is more than just a matter of misjudgment.

The sound of papers turning over came from the other end of the phone: "According to preliminary estimates, Standard Chartered's share price may fall by 5% to 8% due to this incident. More importantly, our reputation in the Asian market has been severely damaged."

"The board requires you to prepare a detailed explanatory report immediately, and you need to return to London next Monday to report to the board in person."

Tyrone felt a tightness in his throat: "Yes, Mr. Chairman."

"Furthermore," the voice on the other end of the phone paused, "until the investigation is completed, the board has decided that Richard will temporarily act as your representative in all your duties in Hong Kong."

These words were like a heavy hammer blow, shattering Tyron's last glimmer of hope.

He could almost picture Richard Young's smug expression at the London headquarters right now.

After hanging up the phone, Tyron slumped into his chair.

Outside the window was the most bustling street scene in all of Hong Kong, but he knew that his career at Standard Chartered had come to an end.

In stark contrast to the commotion outside and the chaos inside Standard Chartered, the atmosphere in Lin Haoran's office on the top floor of the Hengsheng Group building in the Kang Le Building was calm and exuded a sense of composure as if he were in complete control.

Lin Haoran stood with his hands behind his back in front of the iconic round window of the Kang Le Building, looking down at the city that had once again fallen into fervor and controversy because of him.

He Shanheng walked in carrying several newspapers that still smelled of ink, his face beaming with undisguised smiles and admiration: "Haoran, the whole city is in an uproar! The Oriental Daily's report has had an effect ten times greater than we anticipated!"
Now the whole of Hong Kong is talking about your "stroke of genius," and those voices saying we were suckers when we bought Huifeng have completely fallen silent.

Simon Ma chuckled, "Boss, Standard Chartered is probably in an uproar. Just imagine Sir Tyronn's expression."

There was a hint of satisfaction in his tone.

Standard Chartered Bank had dealt with Hongkong Land Group quite a bit before, and as the head of Hongkong Land Group, the boss was happy to see Standard Chartered Bank suffer another setback.

Lin Haoran turned around, his face showing little smugness, but rather a very calm demeanor.

He took the newspaper from He Shanheng, glanced at the eye-catching headline and photo, and casually placed it on the huge mahogany desk.

He already knew the contents of that newspaper.

"The sensation was expected. The value and drama of this deal were enough to drive the media crazy. Standard Chartered's reaction was also within our calculations. The angrier they are, the more it proves that we made the right move."

He walked to the sofa and sat down, gesturing for He Shanheng and Ma Shimin to sit as well.

"In comparison, what I care about more is our executive director position at Citibank. Uncle He, I will definitely be going to the United States in a while, but I can't stay there permanently. At most, I'll stay for a month or two."

Therefore, I would appreciate it if you could select an elite member from Hengsheng Group who can represent me, be based in New York, and serve as an executive director at Citibank.

He Shanheng replied with a smile, "Don't worry, Haoran, I will personally oversee this matter. The candidate must not only be proficient in international financial business, but also have enough loyalty and courage to fight for our interests on the board of directors of Citibank."

Lin Haoran nodded and said with some emotion, "This seat is the fulcrum for us to leverage the global financial landscape. While the 3% stake in Citigroup and the $1.5 million in cash are important, this board seat is the real priceless treasure."

(End of this chapter)