Rebirth of Bloody Romance

Zhong Yuemin replied without even looking up, "This broken thing won't work if we don't have a signal. It will just be a useless lump if we take it back."

"Yuemin, do you really think this thing is useless?" Li Kuiyong's voice came from above the newspaper, with some confusion and curiosity.

You know, in this era, if you have a Motorola "big brother" in your hand, it is simply a symbol of status and wealth, even though it is as big as a brick and the signal is sometimes good and sometimes bad.

Zhong Yuemin raised his head, a hint of teasing flashed in his eyes. "Kui Yong, you are a typical example of 'not seeing the forest for the trees'. This thing is like a headless fly in China now. There is no network to connect to, no signal to use. Apart from being a luxurious brick, what else can it do?"

Zheng Tong laughed along. "This broken thing is so useful. It can be used as a brick in a fight."

"But then again," Li Kuiyong pressed on, "If it's really as you said, how did these foreign things become so popular overseas? It can't be a lie, right?"

Zhong Yuemin sighed softly and explained patiently, "This is not a lie, it is an inevitable stage of technological development. Think about it, if the mobile communication network is not built, it is like a highway that has not been built. It is useless no matter how fast the car runs, right? Our country is now working intensively on this, and it is estimated that the analog network will have a prototype next year. At that time, these big mobile phones can really come in handy, but..."

"But what?"

Zhong Yuemin paused deliberately to whet the appetite of the two before continuing. "However, the initial network coverage is definitely limited, and automatic roaming is even more unrealistic. You have to use it within a fixed city. Outside of this circle, it is still a piece of scrap metal."

Li Kuiyong and Zheng Tong looked at each other, and both saw a bit of helplessness and expectation in each other's eyes. They knew that although Zhong Yuemin liked to joke around, when it came to serious matters, every word he said was a pearl and could not be questioned.

"Yuemin, all you do all day is look at these abstruse things. Let's do something practical. Let's go and have some cold beer!" Li Kuiyong's voice was full of a boldness that could not be refused.

Zheng Tong said unwillingly, "Let's wait until next year to see if it's really as you said. But, Yuemin, you have a unique vision. If there is anything new coming out, you must be the first to tell us!"

"When will you two change your impatience? Okay, you go first, I have to wait for someone."

After hearing this, Li Kuiyong chuckled and said nothing more. He pulled Zheng Tong, who was also curious, and the group went downstairs in a mighty manner.

The room returned to silence, leaving only Zhong Yuemin and the flipped newspaper. He shook his head and said to himself, "Mobile communications are not something you laymen can easily understand. What will it be like when analog networks are launched and mobile phones become popular? Unfortunately, we have to wait for the roaming function..."

Li Wenbo's newly hired investment manager arrived relatively quickly, carrying a briefcase and sweating profusely.

Li Wenbo introduced. "Mr. Zhong, this is Huang Zhongming."

"Manager Huang, this is Mr. Zhong, the big boss of our company." Following Li Wenbo's introduction, Huang Zhongming's gaze fell on Zhong Yuemin, a man with sharp eyes and a meaningful smile.

Huang Zhongming immediately felt the tension and anticipation in the air. He quickly adjusted his breathing, trying to greet this important meeting in the best possible state.

Sweat slid down his forehead and dripped onto his polished leather shoes, but he didn't bother to wipe it off. He just politely adjusted his tie, trying to make himself look more professional.

"Hello, Mr. Zhong! I'm glad to have the opportunity to meet you."

Zhong Yuemin's deep eyes looked at Huang Zhongming gently but sharply, and his signature smile concealed some subtle considerations. "Manager Huang, welcome to join our team. The stock market is like a battlefield. I heard that you have studied a lot of market trends recently. Let's chat."

Li Wenbo interrupted at the right time and said, "Manager Huang, Mr. Zhong has always been very interested in the Hong Kong stock market, especially the recent volatile situation with both opportunities and challenges. He mentioned Liu Daxiong's successful operations in the stock market and thought we could also give it a try. I personally am particularly optimistic about Cathay Real Estate and think it is a potential stock worth investing in. I would like to hear your professional insights."

Huang Zhongming's expression became more focused after hearing this. He quickly pulled out a document from his briefcase and said as he flipped through it. "Indeed, the Hong Kong stock market has been volatile recently, and many stocks present opportunities for buying low and selling high. As for Cathay Real Estate, I have also paid attention to it before. It has a solid fundamentals and abundant land reserves, especially in urban renewal projects. However, considering that its stock price has risen to a certain extent recently, the cost of direct acquisition may be high, and we need to carefully evaluate the risks and benefits."

Zhong Yuemin tapped the table gently, as if thinking about every word Huang Zhongming said. "Risk and return always go hand in hand. The key lies in whether our strategy is flexible enough and the information is accurate enough. Mr. Huang, do you think it is feasible for us to build positions in batches, gradually absorb Cathay Real Estate's shares, and use financial instruments such as options to hedge some risks?"

Huang Zhongming slowly picked up the water cup, took a sip and put the cup down gently, then frowned slightly and fell into deep thought.

After a long while, Huang Zhongming finally raised his head, looked at Zhong Yuemin firmly, and said in a steady tone. "Mr. Zhong, please forgive me for being frank, but the two companies you mentioned just now are not suitable for us to provoke. The reason is that, firstly, they have a deep background and strong strength, and we may not be able to compete with them with our current capabilities; secondly, Mr. Li's reputation among shareholders is not loud enough, and he lacks sufficient appeal and influence. If you want to snipe him, it is quite difficult and the probability of success is very small. As for the method of fishing in troubled waters, it is even more unfeasible, because no matter which force it is, it may not be willing to redeem those stocks from you. After comprehensive consideration, in my opinion, Mr. Zhong is not suitable to get involved in this kind of business at the moment."

After hearing what Huang Zhongming said, Zhong Yuemin's originally calm face suddenly flashed with a hint of surprise, his eyes shone brightly, and he hurriedly urged, "Oh? Manager Huang, please continue!"

Obviously, Zhong Yuemin deeply agreed with the views put forward by this experienced professional and aroused his great interest.

Zhong Yuemin was secretly impressed. He was indeed an expert. He got to the point with just a few words and pointed out the key to the problem. Faced with such a precise and profound analysis, Zhong Yuemin did not feel discouraged or frustrated at all.

After all, the business world is like a battlefield, where there are gains and losses. If this path is blocked, then look for another one. Moreover, the purpose of his meeting with Huang Zhongming this time was not only to discuss specific investment projects, but also to gain a deeper understanding of the true level and insights of this industry elite.

At this moment, Huang Zhongming paused for a moment, as if he was organizing his words, and then he spoke again. "Since Mr. Zhong feels that the plan mentioned above is not feasible, I wonder if you are interested in acquiring the bank?"

Hearing this, Zhong Yuemin was slightly stunned, but soon recovered and replied with a smile. "Haha... Acquiring a bank is not a small matter. It requires a lot of money. But then again, I am quite interested in it. Mr. Huang, why don't you tell me in detail? If it is really feasible, maybe we can really acquire a bank in the future."

"Mr. Zhong, do you know anything about the banking industry?" Huang Zhongming asked tentatively. He knew very well that for a decision maker, an in-depth understanding of the industry is crucial.

"I don't know, just say it directly." Zhong Yuemin answered frankly without any concealment. He really knew very little about the banking industry, but this did not affect his desire to explore new areas.

Huang Zhongming smiled slightly upon hearing this, and he had already made up his mind. He knew Hong Kong's banking industry very well, and began to talk about it. "Mr. Zhong, the booming development of Hong Kong's banking industry has mainly occurred in recent decades, especially since the 1950s. Hong Kong has experienced two major economic transformations. The first was the rise of labor-intensive industries, which injected strong vitality into Hong Kong's economy; and the second was in the past seven or eight years, as labor-intensive industries moved north to the mainland, high-value-added service industries such as finance, shipping, and trade rose rapidly. Both economic transformations have created a long-term and huge demand for funds, thus bringing major opportunities for the prosperity of Hong Kong's banking industry again and again."

"Everyone describes the prosperity of Hong Kong's banking industry as 'more banks than rice shops'." Huang Zhongming added humorously, trying to make Zhong Yuemin feel the prosperity of Hong Kong's banking industry more intuitively.

Zhong Yuemin nodded and smiled when he heard this. "I know this. Walking along this street, you can see a bank within a few hundred meters. There are indeed many banks."

Huang Zhongming continued to analyze the history and development of Hong Kong's banking industry. "In 1978, the Hong Kong government relaxed restrictions on bank licenses. This policy change was like a spring breeze that blew into the Hong Kong financial market, causing a large number of foreign banks to flock to Hong Kong to open businesses. Among these foreign banks, there are many overseas Chinese banks in Southeast Asia, which have injected new vitality into the Hong Kong financial market. In 1982, the Hong Kong government abolished the interest tax on foreign currency deposits. This move made a large amount of international funds flow back to Hong Kong like a tide, further promoting the prosperity of Hong Kong's financial market."

Huang Zhongming paused and looked into the distance with deep eyes, as if recalling those glorious days. "Today, we can say without exaggeration that Hong Kong has developed into an international financial center in the Asia-Pacific region. However, with the increasing competition in Hong Kong's banking industry, the market structure is also quietly changing. Many local banks have lost in the fierce market competition and have been acquired or merged by foreign or domestic banks. Some are even on the verge of death."

Zhong Yuemin nodded slightly upon hearing this, indicating that he agreed with Huang Zhongming's point of view. He also had a certain understanding of the formation process of Hong Kong's international financial center. "Indeed, the formation of Hong Kong's international financial center was first a natural development process. In the 1960s, Hong Kong gradually developed into an important re-export trade center in the Asia-Pacific region with its unique geographical location and preferential policies. The scale of international transactions conducted through Hong Kong continued to expand, and the resulting trade funds and remittances from overseas Chinese constituted an important source of funds for Hong Kong. In the 1970s, Hong Kong gradually developed into an offshore financial center on the basis of becoming an important syndicated loan center, attracting a large number of international financial institutions and funds."

Huang Zhongming saw that Zhong Yuemin had a certain understanding of the history and development of Hong Kong's banking industry, so he went deeper into the topic. "Mr. Zhong, the formation process of Hong Kong's international financial center that you mentioned is indeed a result of natural development. With the rapid development of Hong Kong's economy and the improvement of its international trade status, the banking industry has also ushered in unprecedented development opportunities."

"However, opportunities are always accompanied by challenges. As the banking industry develops rapidly, market competition is also intensifying. Especially in recent years, with the reform and opening up of the mainland, the Hong Kong banking industry is facing a more complex competitive environment."

"In order to cope with these challenges, banks in Hong Kong have been making strategic adjustments and business innovations. On the one hand, they have expanded their scale and enhanced their strength through mergers, acquisitions and restructuring."

"Of course, these efforts are not achieved overnight. Against the backdrop of increasingly fierce competition in the banking industry, some banks are still in trouble for various reasons. They find it difficult to adapt to market changes due to poor risk management, single business, or lack of innovation capabilities."

“These banks are all big, right?”

Zhong Yuemin has his own understanding of the size of a bank. He believes that without tens of billions of assets, it is embarrassing to call yourself a bank owner. However, Huang Zhongming taught him a lesson with a historical fact.

"In September 1982, when Mrs. Thatcher went to the mainland for negotiations, the Chinese-owned Hang Lung Bank in Hong Kong suffered a run. In 9, Hang Lung Bank was finally taken over by the government. The Hong Kong government injected HK$1983 billion from the foreign exchange fund to successfully save Hang Lung and avoid further expansion of the crisis."

Huang Zhongming said in a heavy tone, "This incident caused a great uproar at the time. Due to the media's exaggeration, Hong Kong's confidence crisis became more serious, and the capital outflow surged. In early 1983, the 'Hong Kong dollar crisis' broke out. Rumors spread that the renminbi would replace the Hong Kong dollar. The Hong Kong dollar exchange rate plummeted, and people sold the Hong Kong dollar. During this crisis, seven companies that accepted deposits went bankrupt, and even the wealthy Sun Hung Kai Bank was in trouble."

Zhong Yuemin couldn't help but sigh when he heard this. "What happened next?"

"Today, almost all Chinese banks registered in Hong Kong have disappeared. Among the 27 Chinese banks, some have changed their flags, and some have accepted equity participation from large foreign banks. Only three or four banks, such as Wing Lung Bank, have maintained complete independence. Wing Lung Bank is owned by the Wu Yee-sun family and has always been prudent. However, against the backdrop of the collapse of Chinese banks, Wing Lung Bank has become more cautious and its loan-to-deposit ratio has remained below 40%. Although this reduces risks, it also limits its profitability. In this regard, Wing Lung Bank is doomed to be difficult to become a leader in the industry."