Chapter 434 Increase capital and invest in Hang Seng
Yang Wendong nodded and said: "It seems that he didn't listen to my suggestion at first, but this is normal. Now it depends on how long he can support it."
Regardless of whether he helps or not, he will not take the initiative to speak. Even if he is sincere, everyone will be wary and think that you have some agenda. This is normal behavior in business and even between countries.
Zheng Zhijie said: "Yang Sheng, you are also their shareholder. I estimate that once they run out of funds, they will come to you."
Wei Zetao said: "That's not the case. Hang Seng's scale is much larger than that of Liao Chuangxing. Even if it encounters a run, it may be able to stop it. The Hong Kong government will definitely support it. Otherwise, Hong Kong's economy will be affected. What a shock.”
The scale of Hang Seng Bank today is at least three times that of Liao Chongxing, and many of Liao Chongxing's loans were given to himself, while Hang Seng gave them to many other companies. If something went wrong with it, the impact would be huge.
Yang Wendong said: "The Hong Kong government does not do charity. It is precisely because Hang Seng Bank is large in scale and is considered a high-quality asset. Who is not jealous of it?"
Wei Zetao nodded and said: "Yes, it depends on whether Hang Seng can persuade depositors not to withdraw money in the next few days."
"It's very difficult. Depositors all have a panic mentality." Yang Wendong shook his head and said: "Anyone would be willing to do this if they lose a little interest and keep their principal."
Zheng Zhijie also said: "Yes, Liao Chuangxing was bankrupted in just ten days, and it was too late to sell off the assets. This bank looks prosperous, but in fact it is also extremely risky."
"Yes, if an enterprise like ours fails, it will not go bankrupt immediately. It will take a long time. But if there is a problem with a bank or some financial institution, it will be an avalanche." Yang Wendong said with a smile: "Now we will just Let’s look at He Shanheng’s response.”
The banking industry often seems very easy. It uses depositors' money to lend money to merchants. In this process, except for a few special circumstances, the lenders are always asking the bank, and the bank can mobilize a lot of funds, which far exceeds its own. scale.
But the risk is that once a little bit of bad news triggers a run, it will be over. Not only will everything be lost, but everyone may have to go in and squat.
Therefore, although Yang Wendong knew the benefits of banks in the early days, he did not participate. One was because his golden finger was not very helpful in this area, the other was that it could easily become a major weakness of his own group, and the third was that his real estate, shipping and even industrial industries were weak. We need help from other big banks. Once we have our own banking industry, it will be difficult to cooperate.
Therefore, it is not cost-effective for him to start a bank in the early stage. He will consider it later when he becomes stronger and has a ZZ background behind him.
In the next few days, all branches of Hang Seng Bank in Hong Kong were surrounded by countless depositors, everyone wanted to withdraw their money
At the headquarters of Hang Seng Bank in Central, a man with glasses walked over quickly and said: "He Sheng, the funds in our hands are almost gone."
"Didn't I just get back 40 million Hong Kong dollars the day before yesterday? Is it gone so quickly?" He Shanheng also asked with a change of expression.
The man with glasses said: "Yes, there are too many people withdrawing money, each of them has tens of thousands of dollars. I have already asked everyone to persuade the depositors, but the results have been very little, and more and more people are withdrawing money." The more.”
He Shanheng asked again: "Have you asked the salesperson to withdraw money more slowly and slow down?"
"We have tried, but this will make the queue longer, and the media publicity will only attract more people." The man with glasses explained: "And when we do this, it will also cause conflicts among people in the queue. There have been several branches in the past. Some people were beaten by the depositors who urged them. It was useless to call the police. Some police also wanted to withdraw money.”
He Shanheng immediately frowned. He was already trying his best to raise money, but the speed of raising money could not match the speed of withdrawing money.
At this time, another person came to report and said: "He Sheng, someone from the Lin family asked someone to ask, what is the current capital situation of Hang Seng Bank? He hopes that we can truthfully inform shareholders."
"We are not listed, so what's the use of telling him? He can't cash out either." He Shanheng paused and then said: "But there is no other way now, Ah Wei, convene a shareholders' meeting immediately and let all shareholders attend. ”
"Yes." Ah Wei agreed and left quickly.
After receiving the news, Yang Wendong naturally came to Hang Seng Bank Building the next day;
"Yang Sheng." He Shanheng warmly welcomed every shareholder who came.
Yang Wendong said: "He Sheng, there is a lot of pressure during this period."
"The most fearful thing for a bank is to encounter this kind of thing." He Shanheng sighed and said: "We, Hang Seng, obviously have no problems, but in the end we also suffered a run. It is really an unforeseen disaster."
Yang Wendong said: "Business is like this. It depends not only on strength, but also on luck. Sometimes you are dragged down by others, and there is nothing you can do about it."
"Yes, please come inside." He Shanheng pointed inside and said.
"Okay." Yang Wendong agreed and walked in.
Those who came to the scene were all people with some status in Hong Kong. Many of them were the second generation of wealthy families a long time ago. However, these people basically declined in the 1970s and 1980s, or they were really low-key; most likely they did not survive. In the past, there was the economic crisis in 1967, or direct immigration.
There are also the early founders Lin Bingyan, Liang Zhiwei, Sheng Chunlin and He Tian.
After a while, when more than a dozen people arrived, He Shanheng said: "Everyone, everyone knows the situation of Hang Seng Bank now. Regarding the funding issue that you are concerned about, I can tell you that the funds of Hang Seng Bank have been exhausted. This is the result of borrowing money from everywhere before.”
This matter must not be hidden. If depositors cannot withdraw their money, it will be known to the whole Hong Kong. Even if they go out to borrow money, there will be news. Everyone present has spies in Hong Kong.
"So fast?" Many people whispered to each other. Although they knew that the situation was not good, they did not expect it to be so fast.
"He Sheng? What should we do next?" Another person asked.
He Shanheng said: "I hope that all shareholders can jointly raise a sum of funds, part of which will be injected in proportion, and the other part will be loaned to Hang Seng Bank;
I can guarantee that as long as Hang Seng Bank can survive this hurdle, your loans will definitely receive very high interest returns. ”
After finishing speaking, the people present frowned, and a few people discussed in low voices. Even Yang Wendong remained silent
In fact, if he hadn't known that HSBC would eventually take over, he wouldn't have dared to invest money. Liao Chong Hing Bank was a lesson learned from the past. The Hong Kong government only saved the deposits of most ordinary depositors, investors, shareholders, and even borrowers. How can the Hong Kong government bear the heavy losses that have been suffered more or less?
Seeing that many people were showing embarrassment, He Shanheng added: "Let's think about it, everyone. If we don't rescue, our previous investment will be in vain. Only with rescue can we have a chance."
"But if we invest money and Hang Seng still fails, then wouldn't the loss be even greater?" A man in his 30s said coldly: "He Sheng, everyone believed in you before investing in Hang Seng Bank. Now Hang Seng has become like this. "Don't you take some responsibility?" "Li Sheng, if it's my problem, I will definitely take responsibility." He Shanheng also said with a bad expression: "But the run on Hang Seng Bank was an unreasonable disaster. Who would be in my position." , there is no way to avoid this;
Right now, the most important thing is not to hold accountable, but to save Hang Seng. Please prioritize. If Hang Seng can survive, you can invite a third-party review agency to investigate in the future. If I have a problem, I will be responsible. Naturally I will. ”
The people at the scene were silent again. He Shanheng cannot be blamed for the disaster of Hang Seng Bank. This is a disaster for all Chinese banks in Hong Kong.
At this time, Yang Wendong said: "Everyone, what He Sheng said is quite right. The most important thing right now is to solve the problem. Let's talk about responsibilities later."
Seeing that Yang Wendong said this and it was hard for others to say anything else, He Shanheng also looked at him with thanks.
Although they were no longer held accountable, it was obviously still difficult to get the shareholders present to invest again. More than an hour passed, and no one took the lead. Instead, everyone just found excuses for trouble and left one by one.
In the end, only the founders of Hang Seng Bank, plus Yang Wendong and one other person were left.
He Shanheng finally said: "Yang Sheng, let's go for a walk?"
"Okay." Yang Wendong nodded in agreement.
The two of them soon came to a small green lawn downstairs. He Shanheng sighed and said: "Yang Sheng, you suggested that I keep more funds in my hand. It was indeed right. It's just that I was too greedy, so I still put these funds aside." Out.”
"I'm just guessing. I didn't expect it to come true." Yang Wendong added: "From a bank's perspective, Hang Seng Bank itself is operating normally and has good risk control. There is really no reason to hold a large amount of cash. This will inevitably lead to unforeseen consequences." Small losses.”
"Yes, I was very confident at the time, but I was unexpectedly run out of money for no reason. I was really unwilling to accept it. I have obviously been controlling the risks very well." He Shanheng paused and said, "Yang Sheng, at the moment, I hope You can save Hengsheng.”
"Do you want me to lend a sum of money to Hengsheng?" Yang Wendong asked.
He Shanheng said: "It is better to borrow money, but I hope that Yang Sheng can stand up and support me, Hang Seng. With Yang Sheng's reputation in Hong Kong, as long as you stand up, many people will definitely stop withdrawing money. In this way, is the best way to deal with a run.”
"He Sheng, I may not have such strength." Yang Wendong shook his head and said: "Although Changxing Group is doing well, the deposits of Hang Seng Bank should be 7 to 8 billion. I cannot guarantee such a large amount of funds."
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The current annual profit of Changxing Group has exceeded 100 million, and there are hundreds of millions of cash in the account, as well as a lot of US dollars overseas. However, these are top secrets within the company, and not many people in the entire Changxing Group know about it.
To the outside world, although Changxing Group is very large, most people are really not sure whether it has several hundred million. After all, it is not listed; and assets and cash are two different things. Many companies with a market value of 1 billion may not be able to spend two to three billion. of cash.
The most important thing is that this matter is too bad for me. What kind of benefits can I get from such a big risk? Of course he wouldn't do it.
"But it can at least provide some relief." He Shanheng added: "I know this is a very high request, but I still ask Yang Sheng to consider it."
"He Sheng, it is impossible for me to promise to cover Hang Seng's deposits. On the other hand, He Sheng, will you help others like this?" Yang Wendong asked back: "If there is no problem with Hang Seng today and East Asia is severely run, Li Fushu will also come to you in this way. You Will you agree? ”
He Shanheng also fell silent. He also knew that this request was too much, but there was no other way at the moment.
Yang Wendong continued: "However, I can help you with some funds, but I not only want interest, I want shares."
Helping others must be rewarded. As a time traveler, there are so many places to invest, so naturally you can't afford a little interest.
"How many shares does Yang Sheng need? How much money can he invest?" He Shanheng asked.
We are not philanthropic. If we can help, we must get benefits, and if the other party wants shares, it will pull the other party into the same boat, which is a good thing in the short term.
"I can give you 50 million Hong Kong dollars. For shares, I want 25%." Yang Wendong reported his price.
He Shanheng's expression changed and he said, "Isn't Yang Sheng's price too low? In the previous financing, Hang Seng Bank valued it at 320 million, but now it's only 200 million. Isn't it too low?"
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"In this situation, I am also taking huge risks." Yang Wendong said: "He Sheng, if you think about it from another perspective, my valuation is really not excessive."
In fact, if he had not known that the Hong Kong government and HSBC would eventually save Hang Seng, he would not have made this transaction. If Hang Seng went bankrupt, he would lose money.
"Then Yang Sheng also wants director rights?" He Shanheng asked again.
Yang Wendong nodded and said: "Yes, according to the law, I should have the right to vote for one seat."
Hong Kong law stipulates that a joint venture company must have at least 5 director seats. Once one person has 16% of the equity, he will have one voting right; and if the company sets more than 5 director seats, the number of voting rights will be divided proportionally.
"I need to think about it." He Shanheng said with a frown.
"Okay, my funds will be in place as soon as possible, but if He Sheng disagrees, please let me know." Yang Wendong nodded and said.
Although its own Hong Kong dollars are gradually being converted into US dollars, it also takes time. It has just begun. Changxing Group still has a lot of Hong Kong dollars, and it is very suitable to spend them here.
"Okay." He Shanheng agreed.
After returning to Changxing Building, Yang Wendong called Zheng Zhijie and Fang Xianming, the head of Changxing Financial Company, and said: "You two will work together this time to contact the current shareholders of Hang Seng Bank to see if they are willing to sell. Stocks.”
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(End of chapter)