On July 2, 1997, a financial crisis broke out in Thailand.
The Thai government announced that it would abandon the fixed exchange rate system and implement a floating exchange rate system, which triggered a financial crisis throughout Southeast Asia.
On that day, the exchange rate of the Thai baht against the US dollar fell by 17%, and the foreign exchange and other financial markets were in chaos.
Under the influence of the huge fluctuations in the Thai baht, the Philippine peso, Indonesian rupiah, and Malaysian ringgit have successively become the targets of international speculators.
The target of the attack was a series of tragic chain collapses when the confidence of market participants collapsed.
In August 1997, Malaysia gave up its efforts to defend the ringgit. The Singapore dollar, which had always been strong, was also affected. Although Indonesia was affected by the "rumor"
The countries that were the last to be affected by the epidemic have been hit the hardest.
In late October, international speculators moved to Hong Kong, the international financial center, and targeted Hong Kong's linked exchange rate system. The Taiwan authorities suddenly abandoned the new Taiwan policy.
The currency exchange rate depreciated by 3.46% in one day, increasing the pressure on the Hong Kong dollar and the Hong Kong stock market.
On October 23, Hong Kong’s Hang Seng Index fell sharply; on the 28th, it fell below the 9,000-point mark.
Under the fierce attack of international financial speculators, the Hong Kong SAR government reiterated that it would not change the current exchange rate system, and the Hang Seng Index rose to reach the 10,000-point mark again.
Hongkong
Lingxiao Pavilion, Taiping Peak Mansion
Thousands of square meters of office space on the second and third floors here are now the financial crisis response headquarters of Royal Family Fund, with more than 700 business elites working here day and night.
Third floor, chairman's office
Wang Yaocheng walked in from the outside with brisk steps, his face kind and filled with invisible majesty. Du Bo and Deputy Director Wilkinson, who had been waiting here, quickly stood up.
"Chairman, good afternoon."
"Sit down!"
Wang Yaocheng sat down on the sofa at the top. The female secretary brought a fresh fruit plate, refreshments, and a stack of organized documents. Wang Yaocheng casually placed them beside him without reading them.
"Tell me, where are you now?"
Dubbo glanced at his deputy Wilkinson and made the report without hesitation;
"Chairman, following your instructions, we have been keeping a close eye on HSBC stock and have done a lot of work in the past three years.
In January 1997, after the fund's strategic withdrawal, we still held 10.45% of HSBC's equity, which was spread across 11 institutional accounts.
In March, it acquired 4.5% of the shares held by the Krone family through over-the-counter transactions, with a transaction price of US$627 million.
In addition, in London and Hong Kong, after more than seven months of bargain-hunting on the market, they successively controlled 7.12% of the shares, adding up to a total of 22.07% of the equity.
Since the outbreak of the Asian financial crisis on July 2;
International financial speculators moved to Hong Kong in mid-October, focusing their speculation on the Hang Seng Index, the fixed exchange rate system and the bond market. Stocks on the Stock Exchange plummeted continuously due to heavy short-selling, and the stock of HSBC, the market leader, could not escape.
This is difficult.
As of today;
The stock price has plummeted from a peak of 38.2 billion pounds in early 1997 to 14.2 billion pounds before the Southeast Asian financial crisis. Now it has plummeted to 9.77 billion pounds (119.7 billion Hong Kong dollars).
The huge psychological deterrent brought by the financial tsunami caused a large number of hard-core chips to loosen and flee, and HSBC, the leader of blue-chip stocks, experienced a chip collapse.
Taking advantage of this opportunity, we entered the market and purchased a large number of HSBC shares, spending HK$18.2 billion to acquire 14.13% of the shares, and controlling a total of 36.2% of the shares of HSBC.
It is precisely because of our strong support for HSBC, the leading blue chip stock, that the Hang Seng Index was able to regain more than 10,000 points, and was highly commended by the Hong Kong government and praised as the anchor of Hong Kong Island's financial community.
Therefore, Royal Family Fund hopes to continue its efforts and decisively seize the final controlling stake in HSBC, and asks the chairman for approval."
Wang Yaocheng calmly took out a cigar, cut off the cap, and said with a thoughtful look, "You guys can have one too. This kind of Cuban handmade cigar tastes pretty good, so don't make a decision in a hurry."
"Thank you, Chairman."
Dubbo and Wilkinson respectfully took one each, lit it for the chairman first, and then enjoyed it themselves.
moment
The room was filled with the pure aroma of cigars, like wisps of light smoke.
It is now the end of October, and Wang Yaocheng knows that the financial crisis is far from over, and the year-long fierce competition has just begun. This is a hunting season.
In the financial war between the Royal Family Fund and the controlling stake in HSBC, Hong Kong's wealthy family had an ambiguous attitude and did not respond to the Royal Family Fund's request for cooperation and transfer the equity they controlled in HSBC.
The eventual collapse of the M&A effort had a lot to do with it.
In the modern development history of Hong Kong that lasts for more than a hundred years, Chinese consortiums and HSBC have had inextricable relationships that have been constantly being resolved and disrupted. The Battle of Taikoo Dockyard, the Battle of Hutchison Whampoa, and mergers and acquisitions battles of all sizes.
The figure of HSBC is everywhere behind them.
Similarly, Chinese consortiums hold a considerable amount of equity in HSBC Bank.
According to the survey, the total number should be no less than 11.7% to 13.5%, scattered among the seven richest families.
Among them, the Li Jiacheng family, the shipping king Bao family and the Lee Shau Kee family are the main ones. As strategic holdings, this part of the chips is locked in for a long time and will not be loosened due to rising or plummeting market prices.
For a domineering character like Wang Yaocheng, since you don't want to be friends with me and you have so many little tricks in private, don't blame me for getting angry.
Thinking of this, Wang Yaocheng's eyes showed a cold light.
"Based on the current market conditions, has Royal Fund conducted targeted research on the time and scope of the spread of the financial crisis and come up with professional opinions?"
"Yes, Chairman, the fund's internal research department has been conducting follow-up research on the current financial crisis.
Based on the abundant speculative capital controlled by international speculators, the Hong Kong government's foreign reserves and the firm determination to attack financial speculators, the Research Office has determined that the financial crisis on Hong Kong Island will last at least half a year or even longer.
at present
International speculators also realized that there was no quick solution and took corresponding actions. They used financial futures to buy a large number of three- to six-month Hong Kong dollar futures contracts and focused on short selling in an attempt to raise Hong Kong dollar interest rates, causing the Hang Seng Index to plummet.
Profit from it.
Faced with the rampant attack by international financial speculators, the SAR government encouraged Hong Kong's wealthy families to step in to rescue the market and continued to sell off foreign reserves of U.S. dollars to expand the supply base of Hong Kong dollars and strengthen market confidence. The Hang Seng Index reached 10,000 points again.
Judging from the market situation, the SAR government has temporarily stabilized the market, and the next round of competition may break out at the end of the year or early 1998.
It is still unclear who will win."
"Well, does the Office of Financial and Economic Strategy consider the full support of the central government?"
"Taking this factor into consideration, the financial crisis will last longer and will inevitably spread to Japan, South Korea and other countries. Currently, some international speculators have moved to South Korea. Their situation is precarious and a crisis may break out at any time.
"
Wang Yaocheng nodded with satisfaction. Although he would not take advantage of the situation, he was still happy to step on it.
"Currently, regardless of the ultimate controlling stake in HSBC, through our continuous efforts, HSBC's share price will not fall too deeply. We must open up opportunities for international speculators to focus on short selling and focus on attacking HSBC's opportunities.
If international hot money wants to cause trouble on the Stock Exchange, it is inevitable to focus on short-selling HSBC, the leading blue-chip stock. Soros cannot fail to see this, and we must follow the trend."
Dubo and Wilkinson understood the chairman's words instantly.
The current BlackRock Group has nothing to fear. The key is to follow the trend and use the financial turmoil to strike out many retail investors, so that they can seize more equity and firmly control their destiny.
As long as more than 50% of the absolute controlling interest is obtained, all conspiracies will be in vain.
The sudden financial turmoil in Southeast Asia has caused staggering book impairments to the internationally renowned listed company management institution BlackRock Group. It is now in the stage of vomiting blood and has no ability or financial resources to compete with the royal funds.
HSBC's stock price fell to 9.77 billion pounds (HK$119.7 billion), almost a quarter of its peak. As the financial crisis intensifies, it may fall further.
Nowadays, as a result of the Royal Family Fund's acquisition of HSBC Bank, BlackRock Group's book impairment has reached a huge amount of US$4 billion, which has almost greatly reduced the group's vitality. Even Chairman Toler can't protect himself.
BlackRock Group's losses are related to the vital interests of every senior partner.
As the culprit, Richard Trier has been kicked off the company's board of directors, but his original staunch ally, Chairman Torrell, cannot escape the blame and will surely bear leadership responsibility for this.
What is the concept of 4 billion US dollars?
This is equivalent to a year and a half of BlackRock's profit. All was lost due to one wrong decision. How can it not be held accountable?
BlackRock Group is a professional listed company management organization, equivalent to a listed company manager team, contracting the company's management functions, and receiving generous rewards for its professional and efficient management capabilities.
For such a company to intervene in the battle for controlling stakes is indeed a mistake.
Knocking on the sofa with his slender fingers, Wang Yaocheng opened his mouth and smiled, revealing his white teeth, which were as sharp as blades;
“Since we settled in Hong Kong Island, these landowners have been very supportive of us, and we cannot but reciprocate their kindness and kindness.
Just taking advantage of the financial crisis, Royal Fund can target the following companies.
Mira Hotel, Cheung Kong Holdings, Wheelock Properties and Wharf.
Among them, the Miramar Hotel must be in hand, and Wheelock Real Estate must spit out the Harbor City project and Ocean Terminal project. You can arrange the specific operations yourself, and I will see the harvest in half a year."
"Yes, Chairman, we will arrange a special trading team to follow up, please don't worry."
Du Bo was full of confidence in this and the counterattack finally began.
Taking over the Miramar Hotel is not a big problem. The current value of this listed company does not exceed 10 billion Hong Kong dollars. The family of the company's chairman Yang Bingzheng controls very little equity, and more than 30% is in the hands of the Lee Shau Kee family.
In this financial crisis, the Lee Shau Kee family will inevitably reduce their controlling stake in branch companies in exchange for cash. This is an opportunity.
As for Wheelock Properties and Wharf, they are the core assets of the Shipping King family and are now managed by Wu Guangzhen. The Harbor City project and the Ocean Terminal project are the pearls of Wheelock Properties, and you have to go through some twists and turns to get them.
What the chairman did was a severe retaliation against these landowners in Hong Kong. He took advantage of the market support to enter the market and made them suffer a dumb loss without being able to speak out.
Of course, now we still need to disperse and absorb quietly. If we don't move, we will easily break our muscles and bones.
Now under the haze of the financial crisis, people are in panic, like a frightened bird, and the difficulty of collecting chips has become much lower.