Chapter 667 Reminder to Hang Seng Bank

Chapter 667 Reminder to Hang Seng Bank

Chapter 667 Reminder to Hang Seng Bank
After deciding on the general matters in the UK, Yang Wendong visited several of his industries in the UK in the next two days, mainly to take a look. In fact, he did not expect these industries to have much profit in the future. Everything was for other purposes, just to make a little money;
Compared with the electronic technology that is about to explode, or the real estate in Hong Kong and some parts of Asia, the difference in returns between traditional industries is too great, but their influence is large enough. After all, they can provide a region with long-term stable employment, foreign exchange, tax revenue, etc.
Another area that also has a significant impact is retail. Although the retail terminals are in different cities and the impact of each one seems to be small, the huge sales volume of chain retail brings about a huge purchasing volume. This purchasing volume can still be changed, so the impact is even greater. A tilt in an order may determine thousands of jobs.

These are also what Yang Wendong pursues. However, whether it is retail or industry, it is still difficult to achieve results in Europe. The simplest model is to invest in future local retail giants and let Changxing Trading cooperate with them in the process. Then, after they grow up, some orders will belong to them. For these retail companies, some products in Hong Kong or Asia must be more cost-effective, which is killing two birds with one stone.

The same is true for the current main layout in Europe, and this is all that can be done in terms of investment. After all, in the next few decades of the economy, Europe has basically missed out on more than 9% of new technologies. A few emerging companies such as Nokia have been killed by American companies, and they are basically relying on their previous technology and accumulation to make a living.

But no matter what, this will be a huge consumer market in the future. In order to develop Hong Kong, the mainland in the future, and the development of our own group, this market also needs to be cultivated well. It’s just that there are too many countries here, and the culture, language, and laws are all different. It is more difficult to develop than the American market, so naturally there is no priority, and we can only start with the UK.

After the incident in the UK, Yang Wendong did not return to Hong Kong directly, but first sent a plane to pick up his family, and then they went to several European countries for appropriate tourism, including the Eiffel Tower and Louvre in France, the Rhine River and Berlin Wall in Germany, Venice in Italy, the Vatican, etc.

In this era, the public security in Europe is much better than in later generations, and the cultural environment is much stronger. When traveling, his senses are much stronger than when he came to Europe in his previous life;

Of course, he also has bodyguards, so it doesn’t really make much of a difference, but the whole crowd environment will also affect the mood.

After traveling in many European countries for more than ten days, when he returned to Hong Kong, it was already August. This may be the norm in the future. As the overseas business of the group becomes larger and larger, he will need to go abroad a lot of time, especially for many important matters, which require him to appear in person.

After returning to Hong Kong, Yang Wendong immediately looked up what had happened in Hong Kong recently;

There is nothing major going on at the company. The renovation of the Kangle Building is almost finished. After confirming that there is no renovation pollution before the end of the year, the group headquarters can move in. Other businesses are also going normally and developing according to their own plans.

On the social side, there was nothing big happening. The stock market was still booming and housing prices continued to rise. Everyone was very happy, and the service industry was making a lot of money. There was a serious shortage of taxis in the Causeway Bay area.

The Hang Seng Index has also risen to 1450 points, and there is still no sign of stopping. The stock market crash that Yang Wendong was waiting for has not come, but according to the limit that the market can bear, it is coming soon. This is true for any market, whether it is real estate or the stock market. Once the bubble bursts, it will be a mess, especially for the last batch that entered. If leverage is added, there will be many visitors on the rooftops of Hong Kong.

However, Yang Wendong could not stop this kind of thing. These people were speculators, not normal people. If they wanted to take risks to make a fortune, they would have to bear the cost of failure. Moreover, if Yang Wendong came out to persuade investors to calm down, if the market collapsed in the future, he might be framed as the main reason. He did not want to go through this kind of thing.

However, it is still necessary to inform your own company appropriately. For example, Changxing Real Estate started to shrink half a year ago. However, because the next crisis will not be very serious and will be far less than that in 67, the properties already held will continue to be held. Now it is just developing fewer new properties and reducing acquisitions.

As for the various real estate companies he invested in, he did not interfere, because this real estate crisis itself is a test for these companies. If they cannot survive, they will go bankrupt or decline. Only those who can continuously overcome difficulties or take advantage of opportunities to buy at the bottom will become the kings in the future.
But there is one company that is an exception, and Yang Wendong still needs to remind them appropriately, that is Hang Seng Bank. When a real estate crisis occurs, the impact on the bank may be stronger than that on the real estate company. After all, if the real estate company cannot repay its debts, the creditor bank group will not dare to force it too much, and may even have to sit down and negotiate. But if the bank suffers serious losses and triggers a run, it will be finished.
At this time in history, Hang Seng Bank belonged to HSBC. Yang Wendong had no idea how it survived or what it did during the 73 economic crisis. It was not important anymore. The situation was completely different now, so it would naturally have to be run as a normal company.

Over the years, Hang Seng Bank has expanded rapidly with the ability of Ho Sin Hang and the appropriate help from Yang Wendong. It has also reached cooperation with many real estate companies in Hong Kong and naturally has a large amount of real estate debt in its hands. These may involve certain risks, so Yang Wendong also needs to avoid special circumstances. If there is another run on the bank, he will be in a dilemma.

However, there is also good news, that is, Hang Seng Bank is going to be listed. Yang Wendong usually does not interfere with the companies he invests in, and the listing time is also decided by them. In today's crazy stock market, when the Hang Seng Index is about to reach its highest point, Ho Sin Hang will really choose the time for financing. I don't know if it is really a coincidence or his ability;
Regardless of whether there will be any crisis in the future, by raising funds at this time, huge amounts of funds can be obtained. Especially since the market value is there, it is also a shot in the arm for investors, and the risks will be reduced a lot.

Because Hang Seng was about to go public and Yang Wendong had just returned from abroad, he invited Ho Sin Hang to visit his company.

"Mr. Yang, it's been a long time." After receiving the invitation, Ho Sin Hang came to Changxing Building as soon as possible. Yang Wendong smiled and said, "Mr. Ho, please take a seat. It has indeed been almost a year since we last met. The last time was when Governor Murray MacLehose hosted a banquet for us, right?"

Restricted by Hong Kong banking regulations, banks cannot lend money to major shareholders or directors, so Changxing Group itself has no direct cooperation with Hang Seng Bank;

There are many indirect ones, but they are usually done internally, without the need for Yang Wendong or He Shanheng to intervene.
In addition, Yang Wendong has been very busy with business in Hong Kong and overseas in the past year, and he has not met with his business peers very often, unless it is a large-scale political and business gathering, but these are usually just casual chats.

"Haha, Mr. Yang's business is getting bigger and bigger, and now he's focusing on overseas. I really envy him." He Shanheng laughed.

Yang Wendong asked: "Isn't Hang Seng Bank now also doing business in many countries in Southeast Asia?"

He Shanheng nodded and said, "Yes, there are a few countries, but it is difficult to expand business in these countries, and it is not easy to absorb local deposits. If it were not for the business introduced by Mr. Yang, I am afraid it would be difficult for me to persist for a long time.
Currently, 9% of Hang Seng Bank's turnover and profits are still in Hong Kong and Macau. Although I would like to reduce this proportion, I cannot do so at present."

"Mr. He, this kind of thing can't be rushed. It took Standard Chartered Bank a hundred years to achieve success in Southeast Asia." Yang Wendong smiled and said, "Banking business, entering any place means competing with local giants for business. You can imagine how difficult it is."

Changxing Group was able to expand overseas rapidly, firstly because of Yang Wendong's foresight, and secondly because many of its businesses did not conflict with local businesses and belonged to new markets, so there were opportunities;

If you do the same business as others, it will be difficult to succeed if you want to compete with a group of local financial groups. Even big American banks may not be able to succeed.
HSBC in its original history was really very capable. It was Stephen Schneider who planned HSBC's future overseas expansion, making it one of the top ten banks in the world from a local city bank. Regardless of the cost paid in the process, being able to succeed is what many banks dream of.

He Shanheng said: "I know, so I also have an idea. I was originally planning to come to you, Mr. Yang, recently. I plan to raise funds to acquire a Southeast Asian bank after Hang Seng is listed."

"Acquire a local bank?" Yang Wendong thought for a moment and asked, "Have you decided which one?"

He Shanheng shook his head and said, "Not yet. This needs to be carefully examined."

Yang Wendong said, "Acquiring a local bank is indeed the best way to expand, but it is not possible recently. I am not optimistic about the recent economy of Hong Kong. I asked you to come here this time because I want you to package up and transfer your real estate business appropriately, or at least prepare enough cash and be prepared."

In the past, HSBC also expanded its business in the Americas by acquiring a US bank. This is indeed the fastest and most effective method. Honor Electronics also has similar plans, but the timing is not right now.

He Shanheng was shocked and asked, "Mr. Yang, are you pessimistic about the recent economy?"

PS: Ask for monthly ticket

(End of this chapter)