Chapter 642 Three-party cooperation

Chapter 642 Three-party cooperation

Chapter 642 Tripartite Cooperation
As a time traveler with a decade of influence on Hong Kong history, many things have changed, and some things have not;

Jardine Matheson Land still has its eyes on Dairy Farm International and is ready to make a move, but because of my existence, they are a little wary and have reached an agreement with me in advance. As a representative of Chinese capital, I will not let go of Wharf Holdings or even the future Jardine Matheson Land.

But Qi Dezun's Hutchison Whampoa is an exception. Because of his early investment, Hutchison Group acquired Whampoa Group very early, merged it into Hutchison Whampoa, and then set its sights on Hong Kong Electric.

This is also a good thing for me, but looking at the trend now, everyone seems to want to take action this year, so this may affect each other.

Fang Xianming said: "I only know that Hutchison Whampoa has been using multiple accounts to manipulate the share price of HK Electric and then gradually buying shares. But I don't know how much they bought. This is also an internal matter of Hutchison Whampoa, and I have no right or reason to ask."

"Well, Qi Dezun kept this matter a secret from other members of the board of directors. I was the only one who knew about it in advance. I guess it's because he needed sufficient funds." Yang Wendong shook his head and smiled.

Although the board of directors of a listed company is theoretically the highest institution, this is only in theory, especially in Hong Kong. Many times, major company actions are decided by the chairman alone, and the board members are not informed until things are almost done or exposed.

For example, in the past, Li Jiacheng secretly acquired Wharf Holdings shares. If this matter had been discussed at the board meeting first, the outside world would have received the news within three days.
Of course, since the chairman has such great privileges, he must also bear corresponding responsibilities. If it causes huge losses to the company, he may step down. For example, Newbijian of Jardine Matheson handed over power to the Keswick family after huge losses in the 80s.

Qi Dezun's acquisition of HK Electric and even dozens of different companies over the years were all planned by him himself. He notified the board of directors only after the completion. The representatives sent by Yang Wendong only learned about it afterwards. Only when a large amount of money was involved and Qi Dezun needed Yang Wendong's help would he inform him in advance, such as the Whampoa Group and Junyi Warehouse in previous years.

Fang Xianming said: "Should we tell him about this matter? Otherwise, if he takes action against HK Electric in advance, it may affect Jardine Matheson's actions, and ultimately affect us."

"We can't tell anyone else what we promised Jardine Matheson, including Qi Dezun. Otherwise, if he's prepared and intervenes in advance, it will affect my business reputation." Yang Wendong thought for a moment and said, "How about this, invite him over. I'll ask about the progress and time of HK Electric's acquisition. As long as there's no major conflict, we can just have a simple conversation. Jardine Matheson will take action soon."

"Okay, then I'll arrange this matter." Fang Xianming replied.

The next morning, in the presidential suite of the Four Seasons Hotel, Yang Wendong set up a tea table on the balcony to receive Qi Dezun.

"This is top-quality tea from the mainland. Try it. It tastes very different from the British tea." Yang Wendong said.

Qi Dezun took the tea and said with a smile, "I also like the tea from the mainland. As early as a hundred years ago, the British Empire was very fond of tea from the mainland."

"That's good. You know the current relationship between the mainland and overseas. It will be much more convenient for us to get things from the mainland in the future." Yang Wendong said with a smile.

Although the reform and opening up began in 78, after the East and the West became friendly in 72, various trade restrictions were immediately relaxed. In theory, there were no restrictions on both imports and exports, and even WQ could be traded.

China Resources once publicly stated in an interview that it welcomes more Hong Kong businessmen to participate in the Canton Fair, which will promote trade between the two sides. In addition, China Resources is also increasing its supply of various materials to Hong Kong.

Qi Dezun also nodded and said, "Yes, I am now also planning to let Hutchison's trading company focus on the needs of the mainland and do some import business from Western countries. My Hutchison trade is mainly import. Mr. Yang, your relationship with the mainland should be better than mine. I think we can cooperate in this regard."

"My relationship with the mainland is not as good as you think. It's just general cooperation." Yang Wendong shook his head and said, "You might as well go directly to China Resources. This is indeed an opportunity for Hutchison."

The British companies in Hong Kong control most of Hong Kong's trade. This is definitely not an empty statement. This is the development achievement of British companies in Hong Kong over the past century. It can even be said that this is one of the infrastructures of Hong Kong. For a city like Hong Kong, most materials need to be imported. Only China Resources can eat a piece of meat because it is backed by the mainland, but it is only a part. In the past ten years, Changxing Trade has also been trying to compete for the trade of British companies, but it is very difficult because competing with others in their areas of expertise is thankless. Therefore, the core business of Changxing Trade is still developed around the needs of Changxing Group, plus the various needs of the supermarket industry.

Among the British companies, Hutchison Whampoa was a very capable newcomer, and it was easier for them to snatch the traditional British trade business, especially the overseas import business, which was very profitable, easily reaching hundreds of millions of Hong Kong dollars, such as the machinery and equipment needed by many factories in Hong Kong, production materials, various furniture, home appliances, glass, floor tiles, etc. for house decoration;
Although some of these things can be produced in Hong Kong, most of the wealthy people in Hong Kong still prefer foreign brands. Some people even specify overseas brands for clothes and curtains. This is naturally a huge business opportunity. It is thanks to Qi Dezun's efforts that Hutchison Whampoa has made a big profit in this field. Even Changxing Trading cannot do this.

Therefore, if the mainland needs to import some idle equipment and materials from overseas, Hutchison still has a good chance to participate.

Qi Dezun laughed and said, "Haha, that being said, China Resources is also very cautious about cooperating with me, which is a waste of time, so I hope Mr. Yang can also participate. If you don't want to participate, can you make a guarantee? I will definitely follow market rules in terms of fees.
As long as there is a fully trusted middleman as a guarantee, both my side and China Resources can cooperate with confidence, and the efficiency can be increased by more than ten times. "

Although both companies are large, it is normal for them to pit each other against each other in their cooperation. If they want to have full trust, it will take a long period of cooperation.

"As for the guarantee, it's possible, but you have to follow the mainland's needs. You can make money, but don't cheat the other party." Yang Wendong thought for a while and said, "According to my estimation, the mainland's demand for overseas equipment is also long-term. If you want to do business for a long time, you can't play any crooked tricks."

Hutchison Whampoa is good at importing some mechanical equipment and is relatively knowledgeable in this area. The mainland has just started to improve its relations with overseas countries, and the domestic basic industries are scarce, so a large amount of equipment is needed.
For some large-scale steel, chemical fiber, petroleum, and fertilizer production lines, it is definitely negotiated separately between domestic high-level officials and overseas large companies or even at the national level. Hong Kong trading companies are not qualified to participate in such matters. However, many provincial, municipal, and local state-owned enterprises, if they need some small equipment, such as tens of thousands of dollars, can only go through Hong Kong, the only bridge between the East and the West.

Although there is no historical record, according to Yang Wendong's estimation, Hong Kong trading companies or overseas terminal equipment companies should have cheated mainland enterprises many times. This is the nature of capital. There are actually very few entrepreneurs who can consider the long term. Most of them only look at the short term.
Just like Chrysler Corporation in the 80s, it entered the Chinese market earlier than Volkswagen, but it only cared about short-term interests and ruined its opportunities in the mainland market. Otherwise, how could Volkswagen have such a dominant position in the Chinese market in the future?

If Hutchison Whampoa could sincerely do business with mainland demand-driven enterprises, without giving them special care or preferential treatment, as long as they don't cheat others, that would be enough. This would be a great help. Moreover, for Hutchison Whampoa, such long-term business would also bring higher business, especially if, as planned, Hutchison Whampoa was acquired by itself, this relationship line might also be helpful to itself.

Qi Dezun quickly agreed, "Don't worry, Mr. Yang. We have known each other for many years and have cooperated many times. This time, I also want to find a long-term partner for Hutchison's trading company. However, trust is too time-consuming, so I need a middleman. Originally, Mr. Huo Yingdong was the most suitable, but considering some reasons, let it go."

"Okay, I still trust you in this regard." Yang Wendong nodded and said, "Then I will meet with the person in charge of China Resources when I have the chance. Then we can have a meal together and promote trust between you."

Qi Dezun was very arrogant. He often didn't even give face to the HSBC boss. He even had a bit of arrogance towards Yang Wendong.
But he is indeed capable. He fought against the Japanese devils when he was young, and even participated in local artillery command in the mainland because he knew artillery. Just for this reason, Yang Wendong gave him enough face.

Later, he retired and joined Wheelock. Although he used some dishonorable means to acquire Hutchison Trading Company and make it independent, this is also a kind of ability. Later, relying on his own ability, he developed Hutchison from a small and medium-sized trading company into one of the four major trading companies in Hong Kong. Even without Yang Wendong's history, he is equally outstanding.

Such people have excellent vision and ability. At least in business, they generally will not betray their long-term partners for the sake of short-term benefits. Of course, this does not mean that they are not greedy, but in order to be more greedy, they will restrain their inner short-term desires.

When Qi Dezun heard Yang Wendong's promise, he immediately smiled and said, "That's good. Thank you, Mr. Yang. As long as this is successful, I will definitely not reduce the guarantee fee in the future."

Many businesses require guarantors, which is also the foundation of many Hong Kong companies doing business, from trade to bank loans;
"Okay, just follow the market rules." Although Yang Wendong didn't care about the money, he wouldn't do it for nothing. He would collect what he should collect. Then he moved on to the next topic, saying, "Qi Dezun, how is your acquisition of HK Electric's shares going? When do you plan to start?"

PS: Please give me a monthly ticket.

(End of this chapter)