Chapter 671 Negotiation with HSBC Shen Bi
Chapter 671 Negotiation with HSBC Shen Bi
"Of course there is no problem." Shen Bi didn't think much about it;
HSBC is the largest bank in Hong Kong, and Changxing Group is the largest Chinese financial group in Hong Kong. In addition, the international background has changed. Even if Yang Wendong did not bring it up, he needs to discuss future cooperation with Yang Wendong at an appropriate time, or reach some views on some issues.
Yang Wendong smiled and said, "Okay, then I'll have someone send the invitation letter to HSBC headquarters."
In general cooperation with HSBC, Yang Wendong actually does not need to show up. All his subsidiaries, if they have any projects that require funding, generally decide internally. Unless the funds involved are very large, Yang Wendong will get involved. But if there is no special reason, he also delegates power.
However, if he plans to acquire Wharf Holdings in the future, he will naturally need to communicate with HSBC.
In 1978, Li Jiacheng attacked Wharf Holdings and was ready to roll up his sleeves for a fight, but Jardine Matheson found HSBC and both sides put pressure on Li Jiacheng. At that time, Jardine Matheson was already somewhat weak, with serious losses in its overseas business. Although it was much larger than Li Jiacheng in scale, he was not afraid either.
But after HSBC got involved, it put a lot of pressure on Li Jiacheng. First, he was not strong enough to face two top financial groups. Second, his real estate business also needed to rely on banks. He dared not offend HSBC. If HSBC wanted to help Jardine Matheson, Li Jiacheng would naturally have no chance of winning. So he was forced to give up. But he was very smart. He gave the shares to Pao Yugang, letting this Chinese tycoon and HSBC director confront Jardine Matheson, while he set his sights on Hutchison Whampoa, which had no competition.
And now, when he launched the merger and acquisition of Hutchison Whampoa, although he felt that he had a great chance of winning, if HSBC got involved to help Jardine Matheson, even if he won in the end, he might have to pay a higher price.
"Okay." Shen Bi agreed.
Time soon came to October, and the Hang Seng Index in Hong Kong had reached 10 points, which was also the highest point before the previous economic crisis, which appeared in March 1750;
Because of its own butterfly effect, the Hang Seng Index reached this point six months in advance, but the economic crisis did not break out;
However, Yang Wendong was not too worried. It was just a little late. It was impossible for it not to come. The current stock prices and housing prices in Hong Kong had long been out of touch with actual demand. International capital was not stupid. Once they felt that it was almost done, they would withdraw at lightning speed, triggering a crash.
It’s just that the reason for the stock market crash in the past was the appearance of fake stocks on the market, which caused a panic effect and eventually burst the bubble. I don’t know if anyone is playing this game now? If so, I don’t know when they will be discovered.
In fact, he did not take this crisis very seriously. If this was not the best time to attack Hutchison Whampoa, he would not care at all. After all, the core of the group is now in overseas business.
Since the incident had not yet occurred, life naturally had to go on. One day at the beginning of the month, Yang Wendong formally invited Shen Bi to his Four Seasons Hotel for tea.
The two sat opposite each other on the balcony outside the top-floor presidential suite of the Four Seasons Hotel. The balcony was more than 30 square meters in size, with a view facing Victoria Harbour, the Kowloon Peninsula in the distance, and even the Kai Tak Airport on the side. Every few minutes, you could see an airplane taking off or landing.
"The view here is really great, much better than the HSBC headquarters." Shen Bi looked at the surrounding scenery for a while and said with emotion.
Yang Wendong smiled and said, "Mr. Shen Bi, given HSBC's current size and status in Hong Kong, it should have built a new headquarters a long time ago."
HSBC's current headquarters is still a 6-story building. Although its location and area are large, it is not big enough compared to the scale of HSBC Bank today.
Even in today's fiercely competitive Hong Kong banking era, if HSBC were not a "quasi-central bank" with a great reputation, such a small headquarters would only make Hong Kong depositors unsure of the size of the bank and thus not deposit money there;
It can be said that it is precisely because of HSBC's position in Hong Kong that it can ignore its headquarters, just like if Yang Wendong today wears a cheap fake watch, no one will think it is fake.
Shen Bi shook his head and said, "HSBC has no such plan for the time being, but the current HSBC headquarters is indeed not enough. Perhaps in a few years, a new headquarters will be built."
“Given HSBC’s status, I think the Hong Kong government will definitely allocate a prime location for it and build another building. The scenery will be even better,” Yang Wendong said with a faint smile.
For ordinary companies, even Jardine Matheson and Cheung Hing Group, any normal company, if they want to build a headquarters or a building, they have to buy land from the market or participate in the auction of the Hong Kong government, like the Connaught Building;
However, as a "quasi-central bank", HSBC naturally has privileges.
Shen Bi smiled and said, "Maybe, but the Kangle Building has also been built. I'm afraid no other place can compare to this location."
"Not necessarily. There are a few places that are not bad." Yang Wendong said, "The Hong Kong government can continue to reclaim land in the future. There will definitely be better locations."
The cost of land reclamation is actually very high, but the land prices in Hong Kong will be ridiculously high in the future. If land reclamation is cost-effective, then the Hong Kong government will naturally be happy to do it;
The future IFC and Hong Kong International Trade Center will also be built on land obtained through reclaimed land.
"That's right." Shen Bi nodded, and then asked, "Mr. Yang, do you want to invite me here for some big cooperation?"
For Yang Wendong to personally invite him out, it must be a big project or a future cooperation plan.
"If I want to purchase an oil tanker, would Mr. Shen Bi be willing to cooperate?" Yang Wendong suddenly asked.
After Shen Bi heard this, he frowned slightly and thought for a moment before saying, "If Mr. Yang is willing to add other collaterals, or if you personally guarantee it, then there will be no problem."
"Mr. Shen Bi is so pessimistic about the future shipping market?" Yang Wendong asked again;
Shen Bi smiled and said, “I can’t say I’m not optimistic, but I’m not sure. The future of the shipping market is controlled by many factors, both good and bad.
For example, the reopening of the Suez Canal and the launching of a large number of ships are bad factors; the strengthening of the global economy, the increasing development of free trade, and the improving economic development of Asia are good factors;
But I don’t know how all these will work together? What impact will it have on the shipping market? I’m not sure how big the risk is, so in order to avoid risks, it’s better not to participate.”
"So that's how it is. Mr. Shen Bi's analysis is really amazing." Yang Wendong praised. From the big factors, Shen Bi's analysis was almost right, except for the oil crisis that no one knew about. After that, the shipping industry was even worse. So HSBC refused to cooperate with the shipping industry starting with Shen Bi, which can be regarded as avoiding a large number of bad debts in the future.
Shen Bi smiled faintly and said, "Mr. Yang should have the same idea. I noticed that you started selling off the large number of cargo ships you had a long time ago."
"That's probably a factor, right?" Yang Wendong paused, then asked, "What does Mr. Shen Bi think of Hong Kong's economy today?"
Shen Bi took a sip of tea and said, "The stock and housing prices are too high."
Yang Wendong smiled and said nothing more. Shen Bi was a man who left so many influential deeds in Hong Kong history. He was indeed worthy of his reputation. He then said, "Mr. Shen Bi, I also hope to cooperate more with HSBC in the future, especially in projects in Hong Kong.
But there is one thing I want to ask you, if I have a conflict with a large British consortium, will HSBC get involved? "
"Conflict? From Mr. Yang's tone, it doesn't sound like a normal competitive conflict?" Shen Bi asked back;
If it is just normal competition, such as a land auction, then HSBC will naturally cooperate with the winner. It is impossible to lock in one party first. This has never happened in the banking industry.
Yang Wendong said: "Acquisition."
"Acquisition?" Shen Bi raised his eyebrows and asked, "Which company? Can you tell me?"
Yang Wendong shook his head and said, "If I could tell you, I would have just told you."
HSBC and Jardine Matheson, these two companies have often been at odds with each other in Hong Kong's history, because both companies want to compete for the title of Hong Kong's No. 1 financial group;
In terms of scale and influence, HSBC, as a "quasi-central bank", is naturally stronger, but as a semi-official organization, it is naturally subject to many legal restrictions; while Jardine Matheson is free and invests everywhere, and Hong Kong Land has a large number of buildings in Central. The two sides can be said to be evenly matched;
Jardine Matheson, HSBC, the Jockey Club and the Governor of Hong Kong jointly control Hong Kong. This was no joke in the 1950s and 1960s.
But the Hong Kong market is so small after all, so the two companies naturally have a lot of cooperation. At the same time, it also depends on the personality factors of the bosses on both sides. This year, both Jardine Matheson and HSBC changed their leaders at the same time. Judging from some historical records in previous lives, the relationship between Henry Keswick and Stephen Schneider is still good.
Shen Bi thought for a moment and asked, "Mr. Yang, what you mean is that if HSBC doesn't get involved in this matter or help you, then we can have a lot of cooperation in the future? Otherwise, it's another matter?"
"Haha, Mr. Shen Bi, you're overthinking it." Yang Wendong smiled and said, "However, I don't want to have a conflict with HSBC. After all, there is no possibility of competition between us. Instead, there is unlimited possibility of cooperation."
His original intention was naturally what Shen Bi said, but this kind of thing is naturally not easy to make clear, so there must be a way out.
Shen Bi nodded and said, "I understand. However, Mr. Yang, if you refuse to tell me your goals and plans, then I really can't agree to it now. This is not just my problem. Sometimes, when big British companies run into problems, the Hong Kong government will also ask HSBC to get involved."
"I understand." Yang Wendong nodded and said, "When this happens in the future, Mr. Shen Bi can decide what to do, but I hope you can think it through.
If the Hong Kong government really has such a request, I hope your bank will make a careful decision."
Although the Hong Kong government claims to respect the "free market economy", it will intervene when major British conglomerates really encounter problems or when there are major events that affect the business community;
Historically, when Hutchison Whampoa was on the verge of bankruptcy due to debt, the Hong Kong government authorized HSBC to take over Hutchison Whampoa and resume operations.
In many cases, the biggest difficulty in acquiring a large company is not the company itself, but the local government. If the government is determined not to agree, then the acquisition will basically fail.
However, since he took action at a time when the stock market crashed and the East and the West were getting along well, if MacLehose wanted to intervene forcefully, he would have to be cautious.
PS: Ask for monthly ticket
(End of this chapter)