Huang Bingxin knew Hong Kong's banking industry like the back of his hand. He said, "The development of Hong Kong's banking industry is mainly in recent decades, especially since the 1950s. Hong Kong has experienced two major economic transformations and the rise of labor-intensive industries. The second is in the last seven to eight years. At the same time that labor-intensive industries are moving north to the mainland, financial, shipping, trade and other high value-added service industries are rising. These two economic transitions created a huge demand for funds over a long period of time, which brought major opportunities to the development of Hong Kong's banking industry. Everyone describes the prosperity of Hong Kong's banking industry as more banks than rice shops. "
Li He said, "I know that. There's a bank less than a few hundred meters away from this street. There are as many as the hairs on a cow."
"In 1978, the Hong Kong government relaxed the restrictions on banking licenses, allowing a large number of foreign banks to enter Hong Kong, including many Southeast Asian Chinese banks. In 1982, the government abolished the foreign currency deposit interest tax, allowing a large number of international funds to flow back to Hong Kong. Today, it is not an exaggeration to say that Hong Kong has become the international financial center of the Asia- Pacific region. But with the increasing competition in Hong Kong's banking industry, most of them have been acquired or merged by foreign and domestic banks, or are on the verge of dying. "
The formation of Hong Kong as an international financial center was a natural process of development. In the 1960s, Hong Kong became an important entrepot trade center in the Asia- Pacific region. The scale of international transactions through Hong Kong continued to expand. The trade funds and overseas Chinese remittances formed an important source of capital for Hong Kong. In the 1970s, Hong Kong became an important syndicated loan center and gradually developed into an offshore financial center.
"These banks aren't small, right?"
In Li He's mind, if he didn't have tens of billions of yuan, he wouldn't be embarrassed to say that he ran a bank.
Huang Bingxin continued, "In September 1982, Margaret Thatcher went to the mainland to negotiate. There was a run on the Hang Lung Bank in Hong Kong. In 1983, Hang Lung was taken over by the government. The Hong Kong government injected HK $1.7 billion from the Exchange Fund to save Hang Lung. Due to the media's exaggeration, Hong Kong's confidence crisis became more and more serious. In early 1983, the "Hong Kong Dollar Crisis" broke out. Rumors spread in the market that the RMB would replace the Hong Kong dollar. The Hong Kong dollar plummeted, and people started to sell the Hong Kong dollar. Seven deposit-taking companies went bankrupt, including the wealthy Sun Hung Kai Bank. So far, almost all the Chinese banks registered in Hong Kong have been wiped out. The 27 Chinese banks had either changed their banner or accepted foreign banks' shares. Only three or four banks, including Yonglong, remained completely independent. Yong Long Bank was owned by Wu Yisun's family. As the Chinese banks collapsed, Perpetual Loan became more cautious, maintaining its loan-to-deposit ratio below 40%. The risk was small, and the profit was small. Just based on this point alone, Yong Long is destined to be unable to achieve anything great. "
Li He couldn't help but think highly of Huang Bingxin. Such an ordinary customer manager could actually be so familiar with the banking industry. It seemed that he was indeed a person with a deep mind. Li He originally wanted to poach Huang Bingxin because he really didn't have anyone in his hands. Now it seemed that he had picked up Huang Bingxin.
"Which bank do you want me to buy?"
"Kangnian Bank!" Huang Bingxin said anxiously, "Mr. Li, I think this is a once in a lifetime opportunity. If you were to acquire Kangnian Bank, it would be like adding wings to a tiger. Kang Nian was owned by the Taishan Li Bingchao Family. It was a very small company with only 4 branches. Currently, it was unable to repay a shipping loan of up to HK $160 million, resulting in serious bad debts. Kang Nian had no choice but to make a large write-off, reducing his paid-in capital and reserves from HK $260 million to HK $130 million. Kang Nian suffered a loss of HK $97 million, causing this small bank to face a disaster. Just a few days ago, the Hong Kong Government announced that they would be taking over Kang Nian Bank. They will be using the Exchange Fund, and Standard Chartered Bank will be assisting the Commissioner to manage Kang Nian. There are a few banks interested in acquiring Kang Nian, but the price has not been decided yet. "
"One bad debt and it can go bankrupt?"
This bank was so small that Li He found it unbelievable. One to two hundred million losses and it could go bankrupt? This was simply too weak.
"There are many such small banks in Hong Kong. Kang Nian's most valuable asset is not the bank's assets, but the bank license! Mr. Li, if you miss this opportunity, you will encounter it again in the future. With your current wealth, it should not be a problem for you to acquire Kang Nian. "
Li He was tempted. "How much do you think it will cost?"
He was actually looking forward to seeing if this game would be very trendy.
"As long as we inject 300 million HK $into Kang Nian, it will be able to recover its negative assets. Mr. Li, we can afford it."
Huang Bingxin looked at Li He with shining eyes.
"How about we wait until after October? By then, we will have enough money to acquire 10 banks." Li He still did not want to take up too much capital. At this critical moment, he realized that he had too little money.
Huang Bingxin panicked. "Mr. Li, based on what I know, the Lin family's First Pacific, the Chinese companies in Shenzhen, and the local companies in Hong Kong are all eyeing us. Lin Shaoliang is the richest man in Indonesia, and he is at least one of the top ten billionaires in the world. If he sets his eyes on us, we will not stand a chance. As the saying goes, the one who strikes first gains the upper hand. We must hurry. "
Li He lit a cigarette and gritted his teeth. "Prepare a feasibility report. If it is possible, we will buy it."
Maybe there was only one chance, and he had to work hard for it. It was not like the opportunity would come to him just because he was standing at one spot. If he was lucky, and the opportunity came to him, and he did not cherish it. If the opportunity was gone, there would be a next time.
"Mr. Li, don't worry. I will pass you the report tonight."
Li He replied. "Don't be in such a hurry."
"Mr. Li, I will leave first." However, Huang Bingxin did not care. He was determined to get Li He to do the acquisition. He was even more anxious than Li He.
After saying goodbye to the few people in the room, he turned around and left.
Shen Daoru said, "Mr. Li, I think this is really an opportunity for us."
If they were to acquire it, it would definitely be in the name of Yuan Da. He would be the one to benefit. Of course, he also hoped that Li He would acquire it. Even if he was not the manager of the bank, he would at least have the name of the bank's director on his name card. His status in society would be completely different.
"You think it's feasible too? “
Shen Daoru was a conservative person in Li He's eyes. When did he become so radical?
"Mr. Li, acquiring a bank in Hong Kong is not big news. It is nothing new. “
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