I Want To Be a Rich Man on Hong Kong Island

In early March 1974, the Hong Kong media suddenly reported that Hutchison International (Hutchison \u0026 Co.) had suffered varying degrees of losses in overseas investments, including the UK, Australia, and Southeast Asia, especially in Indonesia. After the oil crisis, more than 100 million Hong Kong dollars in bad debts occurred.

Once the news was spread by the media, investors sold a large number of Hutchison International's stocks;

At the peak moment of Hutchison International in March 1972, the market value was as high as 7.25 billion Hong Kong dollars, and the stock price reached 44 Hong Kong dollars per share;

Today, the stock price of Hutchison International is only 4 Hong Kong dollars, which is less than one-tenth of the peak period;

Hutchison International has fallen into a serious financial crisis, and rumors of the company's bankruptcy are flying everywhere.

.....

Cheung Kong Building.

Wu Guangyao took the specific information of Hutchison \u0026 Co., and read it carefully;

The more I look at it, the more I feel that Qi Dezun is a talent. If it weren't for the stock market crash and the oil crisis, it would only be a matter of time before Hutchison \u0026 Co. would surpass Jardine;

But it is precisely because of Qi Dezun that Hutchison is in the current predicament;

This is the so-called Pray for Virtue for Success and Pray for Virtue for Failure!

At this time, Hutchison International has a total of 7 listed companies, 285 subsidiaries and affiliated companies, which can be described as huge in size;

The seven listed companies are: Hutchison International, Hebao, Watsons, Hutchison Properties, Metropolis Properties, Junyicang, and Harbor Engineering.

In 1954, Qi Dezun became the chairman of the board of directors of Hutchison \u0026 Co., at that time, Hutchison \u0026 Co. was just a small firm, and Heji \u0026 Co. belonged to a joint venture;

In 1963, Kidecraft acquired the controlling stake in its listed company, Wanguo Enterprise, from Wheelock Group;

Afterwards, Qi Dezun acquired the entire equity of the unlisted Hutchison Co., Ltd. through Wanguo Enterprise, and changed the name of Wanguo Enterprise to "Hutchison International";

Since then, it is equivalent to injecting a shell of a listed company into Hutchison Matheson, so to say that "Hutchison International" is also "Hutchison Matheson".

Since the mid-1960s, Hutchison International has entered a new period of rapid expansion;

Qi Dezun took advantage of the psychology of some investors who are optimistic about the stocks of foreign companies, and launched a series of acquisitions through the issuance of new shares.

In 1966, Hutchison International successively acquired Watsons, Dehuibao Mathesons, and Taihe Mathesons, three import and export firms with a long history;

These three firms, together with Hutchison International, form the core of the Hutchison Group to expand import and export trade, as well as wholesale and retailers.

Since then, Hutchison Co., Ltd. has stood out from many foreign firms, but Hutchison Co., Ltd. has not stopped the pace of expansion;

In 1969, Hutchison International raised 72 million Hong Kong dollars through the issuance of preferred shares, acquired a 30% stake in the famous Whampoa Dock, and obtained control of the Whampoa Dock;

This is a very important milestone in the development history of Hutchison International, and it has laid a solid foundation for the development of "Hutchison Whampoa".

After Hutchison International acquired Whampoa Dockyard, it immediately reorganized the company's business and began to diversify:

First, Whampoa Dockyard built a container terminal in Hung Hom to start the development of the container transportation industry;

Secondly, Huangpu Dock cooperated with Huazi Real Estate Company to establish Capital Real Estate Company, intending to develop the remaining land of Huangpu Dock;

Finally, in 1970, Hutchison International acquired Kwan Yick Limited, a large warehouse group on Hong Kong Island, through Whampoa Dockyard.

The two companies, Whampoa Dockyard and Kwan Yick Warehouse, both own a large amount of cheap land in Kowloon and the mainland, making Hutchison International one of the largest landowners in Hong Kong, ranking only below the Wu family.

In 1973, Huangpu Dockyard merged the dock (shipbuilding), ship repair and other businesses with Taikoo Dockyard to establish United Dock Co., Ltd., and invested in the construction of Xinxing Dockyard on Tsing Yi Island;

Whampoa Dockyard strengthened the development of real estate and container transportation industry. Whampoa Dockyard and Junyi Warehouse formed Hong Kong International Container Terminal Co., Ltd. and won the Kwai Chung No. 7 container terminal;

Together with the partial equity of Kwai Chung No. 6 container, International Container Company has become the second largest container terminal operating group in Hong Kong in one fell swoop, second only to the four Kwai Chung container terminals of Global Terminal (acquisition of No. 5 Kwai Chung container owned by a Japanese company).

In 1970, Hutchison International successively established Hutchison Co., Ltd. and Hutchison Real Estate Co., Ltd., and listed them, further strengthening the momentum of Hutchison Group.

Hebao Co., Ltd., the main subsidiaries are Dehuibao Matheson Co., Ltd. and Taihe Matheson Co., Ltd., and its business mainly includes: import and export trade, commerce, machinery, automobile sales, construction material supply and so on.

Putting down the documents in his hand, Wu Guangyao fell into thought;

Although the family office and its subordinates advised themselves not to think too much, just directly intervene in the acquisition;

But Wu Guangyao has his own ideas, that is, he does not want to take over hostilely, let alone make people feel that he intends to target British capital;

What's more, Qi Dezun is Wu Guangyao's friend.

Therefore, it is best to be able to make a friendly acquisition, and if you cannot make a friendly acquisition, then let it go temporarily;

When the Hutchison Group cannot persist, Hutchison \u0026 Co. must belong to Wu Guangyao;

Even HSBC can't compete with Wu Guangyao.

But before that, I need to put eye drops on HSBC!

 …

Hutchison \u0026 Co.

Qi Dezun was anxiously pacing back and forth in the office, thinking about countermeasures.

Originally, although the stock prices of the listed companies under the Hutchison Group have depreciated sharply, the group did not reflect this situation in the accounts;

Instead, Hutchison Group intends to sell part of the land, and the proceeds from the land sale, as well as the capital raised from the listing of Capital Land, will be used to maintain the net profit of Hutchison International and for dividend distribution purposes;

Although this strategy is risky, as long as the stock market rebounds, Hutchison \u0026 Co. will naturally overcome its difficulties.

But now, the situation of Hutchison \u0026 Co. has been dug out by the media on Hong Kong Island, and the situation has been exposed all of a sudden;

Then Hutchison is very passive!

The first thing Qi Dezun thought of was to ask HSBC for help. As for Everbright Bank, Qi Dezun did not dare to think about it;

Because Hutchison Bank already owes China Everbright Bank a full 800 million Hong Kong dollars, accounting for two-thirds of the entire Hutchison Bank's debt;

China Everbright Bank is undoubtedly the largest creditor of Hutchison Matheson, of which 400 million Hong Kong dollars also used 15% of Hutchison International shares as a pledge;

Coupled with the sudden explosion of Hutchison Bank's investment situation in Hong Kong Island, and the entire Hong Kong Island media are overwhelmingly unfavorable to Hutchison Bank;

Qi Dezun also understood in his heart that if Wu Guangyao had no idea about Hutchison Co., Ltd., he would be too naive!

If HSBC Matheson can borrow another 200 million Hong Kong dollars to allow Hutchison Matheson to support it for a period of time, Wu Guangyao may not be able to make a quick grab.

Acquisitions are generally divided into friendly acquisitions and hostile acquisitions, and Wu Guangyao has always had a good face;

Therefore, Qi Dezun believes that as long as the company has the help to tide over the difficulties, Wu Guangyao will have no chance.

 …

Before Qi Dezun approached HSBC, Universal Group held a shareholder meeting.

At the meeting, Wu Guangyao's face was not very 'good' and he didn't say a word;

Instead, He Yuanzhang was filled with righteous indignation, took out a stack of documents, and handed them to Sanders and Shen Bi of HSBC.

Sandas and Shen Bi's hearts skipped a beat at this moment. Is Universal Group trying to kick HSBC away?

He Yuanzhang said: "As an important shareholder of Global Group, HSBC Bank should have safeguarded the interests of Global Group, but over the years, HSBC Bank has lent heavily to shipowners on Hong Kong Island, supporting a number of large shipowners, and causing damage to Global Group. An incalculable loss. As the directors of Universal Group, don't they understand business rules at all?"

Sanders is fine, anyway, he is about to retire, and although he still occupies the position of chairman of HSBC, the rights of HSBC have begun to be slowly handed over to Shen Bi;

Shen Bi's face couldn't hold back anymore. He thought that he would be able to call the wind and rain in Hong Kong Island by taking the position of HSBC executive, but he didn't expect to be scolded today!

Shen Bi said in a deep voice: "Although HSBC is an important shareholder of Global Group, HSBC is more of a commercial bank, and loans are our main business..."

Gao Ke quickly retorted: "Although loans are the main business of HSBC Bank, as an important shareholder of the company, the primary responsibility is to ensure that the company's rights and interests are not violated. As an important shareholder of Global Group, HSBC knows the overall layout of Global Group , and also obtained some business information from Global Shipping Group; it can be said that HSBC Bank has provided large-scale loans to shipping companies in recent years, which has damaged the fundamental interests of Global Shipping. As a result, Global Shipping has more and more competitors, and Global Shipping has to Reduce the number of ships to resist risks. Excuse me, the two directors of the Global Group, is HSBC earning dividends from the Global Group while supporting the competitors of the Global Group?"

Sandas and Shen Bi were in a terrible mood at this time, and it was also extremely complicated;

If Universal Group and HSBC fall out, even Universal Group will take HSBC to court;

So, can HSBC's shares in Global Group be kept?

In fact, Wu Guangyao had long wanted to beat HSBC, especially after Shen Bi came to power;

For a long time, global shipping has brought a lot of dividends to HSBC, and HSBC should not lend money to those shipowners anyway;

Although there was no written contract signed when buying shares;

However, as a minority shareholder, if the interests of the company are damaged, the major shareholder can file a lawsuit or negotiate a settlement to buy back the shares of the minority shareholder.

World Shipping has not built a new ship since 1966;

However, in 1967, the world's shipping business exploded, and HSBC could bear it, so it lent money to other shipowners on Hong Kong Island.

Wu Guangyao was aware of the situation at that time, but he did not intervene forcefully;

Because Global Shipping has taken the initiative, and even Japan's shipbuilding industry is full of orders from Global Shipping, and can no longer accept business; what's more, HSBC does not lend, and there are other preferential loans, so why be a villain directly.

But now!

Wu Guangyao intends to settle the matter properly!

Aren't you, Shen Bi, very good?

You have to see for yourself, how do you accept the move!

Wu Guangyao just played a trick of killing two birds with one stone, that is, he beat Shen Bi, and made HSBC dare not to sing against Wu Guangyao at Hutchison \u0026 Co.

You must know that although the shipping business of the Global Group at this time has declined, it is still the world's shipping giant;

More importantly, Universal Group's container terminals and aviation industries have begun to exert force.

Therefore, HSBC is absolutely reluctant to part with the shares of Universal Group!

Sandas took a look at Wu Guangyao, wondering what he could find out from Wu Guangyao's expression;

Is the Global Group intending to drive out HSBC, or is the Global Group just trying to give Shen Bi, his successor, a blow?

The result disappointed Sanders. Sanders, who has always claimed to know Wu Guangyao very well, still doesn't know what Wu Guangyao meant in today's shareholder meeting.

"Mr. Wu, the matter has come to this point, we should still resolve this matter through peaceful negotiation, don't you think so?" Sandas said.

At this time, Shen Bi is still stubborn, and Sandas can only seek peace between the two sides by himself!

Wu Guangyao stretched his pretense, and said, "Actually, I should have warned you earlier! It was also my fault. I missed Jingzhou carelessly; I only saw the global shipping killing all directions, and I didn't worry about the fire in the backyard (Hong Kong Island). Now Bao Yugang, Zhao Congyan, Dong Yunhao, the Madden family, the Shiyock family, etc. in Hong Kong Island all have a large number of ships; compared with them, global shipping has no advantage in price, but the cost is higher than them (higher labor wages) ), so much so that businesses are now defecting.”

When Sandas and Shen Bi heard it, they immediately felt that it made sense;

The benefits of seafarers in global shipping are more than 20% higher than those of other shipowners, and the operating costs have increased significantly;

In addition, Bao Yugang adopted a long-term lease, Dong Yunhao has the backing of Taiwan Island, and Wheelock and Swire Pacific are British-owned;

If global shipping did not have high-quality seafarers and occupied a high point (seize the market) at the beginning, it may not have achieved such results in recent years.

Shen Bi was suddenly embarrassed. Various reasons indicated that the shareholder of HSBC Bank seemed to have done something to be sorry for the Global Group;

If the Universal Group really wanted to make trouble, they would definitely get sympathy from many people;

Even if HSBC can continue to hold the shares of Global Group, then Universal Group can also arrange HSBC outside the management of Global Group; by then, HSBC may not even be able to enter the Global Building.

In this way, HSBC may not be able to supervise how much the Universal Group earns and how much dividends it shares!

Shen Bi softened and said: "The matter has come to this point, I think both of us have made mistakes, if the Global Group asks us not to lend to other shipowners, we, HSBC Bank, will definitely abide by it."

Wu Guangyao's face was full of incredulity and anger for Shen Bi's kind attitude, but in the end he chose not to comment.

In the end, He Yuanzhang came forward and announced the dissolution of the meeting!

Sandas and Shen Bi left the Universal Building with apprehension;

Both of them knew that HSBC Bank must not lose the shares of Universal Group, but it cannot afford today's responsibilities;

If HSBC really takes on this responsibility, will Universal Group take the opportunity to let HSBC hand over its shares?

Therefore, even Sandas thinks that HSBC can only make peace with it!

After the two left, Wu Guangyao's face instantly turned into a smiling face, completely different from the black face in front of him;

He Yuanzhang, Gao Ke, and Wu Xianshuo couldn't help thinking that it's a pity that the boss/father doesn't become an actor!

He Yuanzhang said with a smile: "The boss's move can be said to kill three birds with one stone!"

Wu Guangyao smiled and asked back: "I thought it was two birds with one stone, but you said three birds with one stone. What is the extra bird?"

He Yuanzhang said: "First of all, it is naturally to teach Shen Bi a good lesson, so that he will be less concerned about the management of Universal Group in the future! The second is naturally beneficial to the boss's recent acquisition case, so that HSBC dare not work here. It’s stuck on our necks. Thirdly, the last time Global Shipping leased ships to the ‘Guangyao Family Office’ on a large scale, which affected some operations. HSBC has complained quite a bit recently, and I believe there will be no more complaints.”

Wu Guangyao nodded, He Yuanzhang's analysis made sense!

"You've said a little less!"

"Boss, please advise!"

"Global Shipping has decided to drastically reduce ships. In the future, HSBC will bear more than half of the blame!"

"Haha, what the boss said is true! As long as we spread a little bit of public opinion, the business community on Hong Kong Island will know that HSBC's behavior is immoral; then the decrease in global shipping business may be blamed on them."

Wu Guangyao's behavior today is exactly the same as He Hongsheng's cleaning up of Ye Han in Macau;

In order to clear Ye Han out of the Macau Entertainment Company, He Hongsheng turned a blind eye to Ye Han's holding dog races outside, and finally directly used Ye Han as a shareholder of Aoyu, but used Aoyu to engage in other gambling businesses outside, which violated the company's interests. Because, directly prevent Ye Han from stepping into the casino;

In the end, He Hongsheng directly asked Ye Han to sell the shares to Zheng Yutong;

So far, He Hongsheng has completely mastered Aoyu!

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