Chapter 670: Major Changes in Hong Kong's Financial Situation
Chapter 670: Major Changes in Hong Kong's Financial Situation
After Yang Wendong acquired shares in Hang Seng Bank in 65, there were not many subsequent acquisitions of Hang Seng shares, because since it was not a listed company, he could only look for shareholders of Hang Seng. In the early years, there were not many shareholders of Hang Seng Bank. In addition, Ho Sin Hang was also a major shareholder. The two of them together held more than 50% of the shares. If there were further acquisitions, it would be difficult to hide it from him.
Therefore, before Hang Seng Bank went public, Yang Wendong held a total of 27.1% of Hang Seng shares. When it went public, Hang Seng Bank released 25% of its shares, and Yang Wendong's shareholding ratio became 20.3%. However, Hang Seng Bank also received a total of HK$1.8 million in cash, making it the largest IPO in the 70s. In the entire history of Hong Kong, it was only slightly smaller than the listing of Jardine Matheson Group in 1961.
The next day, media outlets across Hong Kong were discussing the matter. Hang Seng Bank was included in the Hang Seng Index on the second day of its listing and became one of the blue-chip stocks. Its market capitalization directly entered the top 20 in Hong Kong, and because of its high popularity, its stock price continued to grow.
After noon that day, Fang Xianming came to Yang Wendong's office and asked, "Mr. Yang, should we buy some of the Hang Seng Bank shares now, sell some, or just keep them?"
"Has He Shanheng made any moves in the banking market recently with the intention of selling his real estate business?" Yang Wendong asked.
Fang Xianming said: "There is news in the market that Hang Seng Bank is packaging some of the higher-risk real estate businesses, mainly some ordinary residential properties, and a small number of small real estate companies;
But the scale is not very large, and some deposits with good locations and depositors with stronger risk tolerance have not been sold."
"It seems that he has chosen a moderate decision." Yang Wendong said with a smile.
Fang Xianming said: "Mr. Yang, in fact, Mr. He's method is not problematic. After all, the scale of Hang Seng Bank is too large. Large-scale sales of its businesses may have a great impact on the market, and the same is true for stocks.
If the economic crisis does not break out in the future, then he, as the chairman of the board, will be responsible for pushing this forward.”
"Well, this analysis is correct. Even we did not cash out on a large scale." Yang Wendong nodded.
After all, this was just his suggestion and he would not take any responsibility, so He Shanheng naturally needed to be cautious. And even if it was 100% certain that there would be an economic crisis in the future, it was impossible for the bank to sell all its businesses, not to mention internal operations. Just doing this would really offend all its peers.
Fang Xianming said: "Yes, Ho Sin Hang has been in the banking industry for decades and has always been very good at risk control. The 65 crisis was an unexpected disaster. Hang Seng's operations were actually normal at that time and there was no risk. But no bank can withstand a run."
"Okay, he has more than 2 million in cash now. If he doesn't move the money, there shouldn't be any big problems in the future." Yang Wendong finally made a decision and said, "The Hang Seng Index is about to reach 1600. I think it's almost at its limit.
In terms of stocks, whether it is Hang Seng, Cheung Kong, Wo Hup, or Sun Hung Kai, they should all sell some of them to cash out, no more than 5 points, and then buy them back after the stock market crash, just treat it as a small play. "
As a well-known figure in Hong Kong, he holds a large number of stocks of listed companies, and his shareholding ratio is not low, so it is not suitable for him to sell them on a large scale. First, he will definitely be discovered. Second, if it causes panic, he may be blamed for the stock market crash. Third, even if he sells all his stocks now, it will be difficult to buy them back in the future, even if there is a stock market crash later.
So just sell some appropriately, sell high and buy low once, and make a little profit. The long-term value of these stocks is the most important.
"Okay, I'll arrange it right away." Fang Xianming agreed and asked, "What about the stocks of Wharf Holdings?"
Yang Wendong shook his head and said, "Let's not do this for now. When the stock market falls, we will buy some of it, and then we can show our cards."
Through years of gradual acquisitions, he already has a lot of Wharf shares in his hands. There may not be many floating shares on the market. It is probably because the stock price has risen too much in the past two years, and Wharf has expanded its shares and raised funds many times, so Jardine Matheson Group did not find any abnormalities.
However, some stock analysts and experts still found some clues. Coupled with the matter of Hutchison Whampoa Milk and Hutchison Whampoa's acquisition of Hong Kong Electric, Changxing Financial Company took the opportunity to suspend the acquisition, which successfully diverted everyone's attention. Now no one is paying attention to it.
At this time, there is naturally no need to buy Hutchison Whampoa’s shares at a high price.
"Okay, Mr. Yang, let's not move the Kowloon Warehouse for the time being." Fang Xianming nodded and said.
"Well, this is the arrangement for the time being. After the stock market and real estate market change, we will have another meeting to discuss it." Yang Wendong nodded, and then asked, "HSBC sent an invitation letter. Sanders is about to retire. You can come with me to attend the banquet then."
Fang Xianming replied: "Okay, the successor is HSBC's general manager Shen Bi, whom we also know."
"Well, Shen Bi is indeed very capable." Yang Wendong said, "We can communicate with each other appropriately during the banquet. We will still have a lot of cooperation with HSBC in the future."
Although Changxing Group's main business will gradually expand overseas, the scale of its business in Hong Kong will not be reduced. It is just normal. This is normal because compared with other businesses of Changxing Group, it is still huge in Hong Kong.
Although it also cooperates with Standard Chartered, Bank of East Asia and even Citibank's branches in Hong Kong, HSBC is Hong Kong's quasi-central bank and the largest bank, so there will inevitably be a lot of cooperation between the two parties;
Of course, cooperation with HSBC is not necessary for Yang Wendong now, but no matter what, it never hurts to have a better relationship.
At the end of September, HSBC held a grand succession ceremony at the Peninsula Hotel. Governor Murray MacLehose and Governor Roberts were both present. The arrival of these two people also showed that the Hong Kong government really gave HSBC enough face. Naturally, enough people from the business community also came, including the heads of most real estate companies, the bosses of most British groups, the heads of many shipping companies, etc. These are all partners that have long-term cooperation with HSBC. The change of HSBC's successor is also a very important event for many companies.
The only bad thing was that since the Governor and the Governor of Hong Kong had come, Sanders and Shen Bi naturally had to accompany them. The others, including Yang Wendong, could only greet them briefly. This meant that the others had to gather together and discuss some things.
"Mr. Bao, long time no see." Yang Wendong said with a smile after seeing Bao Yugang.
Bao Yugang also shook hands and said, "Mr. Yang is a very busy man nowadays. I often see your private plane taking off at the airport."
"Haha, it seems that the location of the office expenses for students is quite coincidental." Yang Wendong said with a smile.
In fact, there are no special signs on his private plane, but Cathay Pacific's planes have their own unique trademarks, serial numbers, etc. In this way, Yang Wendong's private plane can be easily identified.
But this only happens in Hong Kong. If you are overseas, no one will be able to see it.
Bao Yugang then said, "Mr. Yang, HSBC is changing its manager. Have you discussed this with Shen Bi in advance?"
"No, has Mr. Bao already communicated with us?" Yang Wendong asked back.
HSBC could be a partner for Changxing Group, but it could also not be, so he just had to come to the banquet, and there was no need to meet with Shen Bi in advance for this.
However, it is different for other capitals, especially those like Pao Yu-kang, whose development is completely dependent on HSBC. If there is a change of personnel in the HSBC Group, he should naturally communicate in advance.
Bao Yugang nodded and said, "Yes, we communicated in advance. Shen Bi's attitude towards the freight industry seems to be unclear, which also caused me some concerns."
"Do you think HSBC won't support you?" Yang Wendong thought for a moment and said, "It shouldn't be the case, right? After all, HSBC is also a major shareholder of your Global Shipping."
Bao Yugang was able to obtain HSBC's full support, but of course he had to pay a certain price. The major shareholder of Global Shipping is HSBC;
This actually violates the Hong Kong government's banking law, but HSBC transferred the funds overseas and then lent them to Pao Yue-kong to buy the ship. Although it is not absolutely legal, if no one reports it, the Hong Kong government will not care, and everyone has this tacit understanding.
So, Pao Yu-kong was indeed very capable. I don’t know how he convinced HSBC to do this for him, but judging from the results, HSBC’s investment was still very cost-effective. Pao Yu-kong’s development in the shipping field has reached a very high level and has also brought HSBC very generous returns.
Bao Yugang said: "Maybe I'm overthinking it, but there are indeed certain risks on the Suez Canal side. You and I discussed this last time."
"With Shen Bi's ability, it's normal for him to notice this." Yang Wendong said with a smile: "I think the risk will definitely be controlled, but it shouldn't be to the point of giving up this business."
This also shows the ability of Stephen Sham. He was aware of the crisis in the shipping market earlier than Pao Yu-Kang. In history, Pao Yu-Kang decided to abandon the ship and land because after Stephen Sham took control of HSBC, he began to be pessimistic about the shipping market and cut off Pao Yu-Kang's source of funds.
Bao Yugang nodded and said, "Maybe."
An hour after the banquet, MacLehose and his party left early, and Shen Bi also had time to deal with other business people, first the British side, then the Chinese side. The first person he talked to was naturally Yang Wendong: "Mr. Yang, hello."
"Mr. Shen Bi, congratulations on becoming the new head of HSBC." Yang Wendong also said with a smile: "I hope that in the future, our two groups can cooperate in many aspects."
Shen Bi nodded and said, "I hope so too."
Even though HSBC is a "quasi-central bank", it is still a commercial bank in essence, and it also has shareholders and a board of directors. The bosses hold great power, but the premise is that the bank can make money. If the profit is small or there is a loss, the shareholders' meeting and the board of directors can also replace people.
However, in the history of HSBC, due to its special status, it generally does not incur losses. After all, it basically makes money without doing anything.
But if you can do better, it is also an achievement for the individual.
Yang Wendong continued, "Mr. Shen Bi, if you are free in the future, I would like to invite you to have a chat alone. What do you think?"
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(End of this chapter)