"This merger has been delayed for long enough. Tomorrow the London and Hong Kong stock exchanges will close their nets at the same time and launch a final decisive battle to win absolute control of HSBC in one fell swoop. Don't be afraid of spending money. The more equity, the better."
"I know, Chairman, we have been prepared for a long time, and we will arrange it now."
"Well, go ahead!"
Looking at the back of Director Du Bo leaving with confidence, Wang Yaocheng sat leisurely on the leather executive chair, turning the signature pen flexibly with one hand, feeling full of ambition, and thinking about the journey along the way.
hehe!
For the consortium, the most important core industry ~ HSBC is about to acquire it. It’s not easy!
July 2, 1997
The financial crisis in Southeast Asia originated from the Thai baht being attacked by international hot money and leaving the fixed exchange rate system. This increasingly fierce financial crisis has swept through Southeast Asian countries, treasure islands, Hong Kong Special Administrative Region and other places, leaving everything in its path desolate.
By February 1998
The financial turmoil in Southeast Asia has spread to Japan, South Korea and other countries, and has plunged South Korea and other countries into a serious financial crisis. All industries have collapsed and the national economy has been hit hard.
In this situation of heavy clouds
The Royal Fund's continuous holding of HSBC cards in London and Hong Kong was just a bright spot in the dark clouds, and was quickly swallowed up by the dark financial storm without causing much ripples.
There have been rumors of mergers and acquisitions for three years now, and the market has long been paralyzed.
Years ago, the last time the Royal Family Fund held a sign to increase its holdings, HSBC's stock price fell instead of rising, showing the market's resistance to news of mergers and acquisitions.
This is another story about the boy who cried wolf. For several years, I heard the sound of the stairs but never saw anyone coming down.
Even BlackRock had no time to think about it and just issued a statement without any pain;
We welcome powerful institutions to participate in the management of HSBC to bring new vitality and more development channels to HSBC. We look forward to a better tomorrow.
As a professional listed company management company, dozens of listed companies managed by BlackRock Group were severely damaged in the financial crisis, causing the stock price of the New York Stock Exchange to plummet.
BlackRock Group's 1997 financial report recorded a large loss. The core lies in HSBC's wrong decision-making, which resulted in a book loss of hundreds of billions of dollars. Anyway, it couldn't be worse.
I have a lot of bad things going on, and I am already exhausted.
Looking back, compared to other international multinational banks, HSBC, which has been rooted in Southeast Asia for more than a hundred years, was hit hardest and had the greatest impact.
The annual revenue shrank significantly, the amount of bad debt losses that needed to be provided increased rapidly, and the performance of the London and Hong Kong stock markets continued to fall.
Wang Yaocheng's strategy of putting things aside has achieved remarkable results. The Hong Kong Stock Exchange has suffered repeated attacks from international hot money, and HSBC's stock price has plummeted by more than 30% again.
The whole market is in ruins, and the market is full of decay.
In this case, a strong signal was sent from domestic high-level officials to the Special Administrative Region;
It is hoped that the powerful Royal Fund will link up with the government at the appropriate time, make responsible actions, jointly enter the market to support the bottom, and fight against the deliberate troubles caused by international financial predators.
Only when the most powerful royal family funds take the lead in entering the market and set an example for other wealthy families in Hong Kong can we gather the confidence of Hong Kong people and join forces with the SAR government to defeat the greedy financial predators.
This comprehensive acquisition of HSBC demonstrates Royal Fund’s confidence in entering the market.
It is a shot in the arm for the bleak Hong Kong Stock Exchange, which will inevitably attract high praise and support from the government.
February 1998,
Based on the trends of international financial speculators and the evolution of the financial crisis, the SAR government and relevant financial institutions can determine that the most difficult moment has not yet come.
Since the financial crisis broke out on July 2, 1997, it has experienced three stages of crisis evolution.
Phase one:
The Thai baht crisis broke out and spread throughout Southeast Asia. The exchange rates of various countries hit record lows repeatedly, and the stock markets continued to fall.
A financial crisis that started with the Thai baht crisis quickly spread to other Southeast Asian countries. From late August to early September, the currencies of Indonesia, Malaysia, South Korea, Singapore and other countries successively delinked from the US dollar.
Under the changes in the exchange rate system, Southeast Asian currency exchange rates have repeatedly hit record lows. At the same time, affected by the decline in currency exchange rates, the stock markets of Southeast Asian countries have continued to plummet. The financial crisis has left a mess and screams everywhere.
Second stage:
The foreign exchange markets of Taiwan and Hong Kong were hit again, and the Hong Kong stock market plummeted, causing huge shocks in world stock markets.
On October 17, 1997, after enduring nearly four months in the Southeast Asian financial turmoil, Taiwan gave up its peg to the U.S. dollar and announced free floating, causing Taiwan's foreign exchange market and Taiwan's stock market to plummet.
Subsequently, international financial speculators attacked the Hong Kong dollar, which still adheres to the linked exchange rate system, for the fourth time in an attempt to reap huge wealth.
Faced with the predicament, the Hong Kong SAR government was forced to use the foreign exchange reserve fund to maintain the linked exchange rate system. Royal Family Fund entered the market to acquire HSBC, and bought a large number of major blue-chip stocks at the bottom.
Market confidence on the Stock Exchange has somewhat recovered. After the flow of Hong Kong dollars was controlled, interest rates rose sharply, and major banks successively raised lending rates and short-term interbank lending rates, the Hong Kong dollar exchange rate quickly stabilized.
The price paid for this battle to defend the Hong Kong dollar was very heavy;
Ends October 28th
Hong Kong's Hang Seng Index fell below the 10,000-point mark from 13,601 points, a drop of 33.4%. Among them, the Hong Kong stock market lost as much as HK$800 billion from October 21st to 24th.
After October 28, the Hong Kong stock market plummeted, causing the New York, London, and Tokyo stock markets to fluctuate successively, with varying degrees of decline, which in turn caused the Hong Kong stock market to fluctuate violently.
The third stage:
The impact of the financial crisis in Southeast Asia continues to expand. International financial speculators took this opportunity to move to Japan and South Korea, attacking the precarious financial markets of South Korea and Fuso, and they reaped huge rewards.
Since November 1997, the Korean won has accelerated its depreciation, and the Korean won crisis broke out.
By November 20, the Korean won exchange rate fell to 1,139 per U.S. dollar, a drop of more than 20%. The international purchasing power expressed in U.S. dollars decreased by one-fifth. Eleven of the 30 Korean chaebols fell one after another, causing heavy losses.
Then, Fuso Kuniyama Securities announced its bankruptcy on November 24 due to foreign exchange losses of 106.5 billion yen and securities trading losses of 158.3 billion yen, and the Tokyo stock market fell sharply.
It immediately triggered a chain of declines in the New York and London stock markets, and the Asian financial crisis spread to Japan. Tens of thousands of companies went bankrupt.
On December 8, the exchange rate of the yen against the U.S. dollar in the Tokyo foreign exchange market fell below the level of 130 yen per U.S. dollar, hitting the lowest point since May 1992.
Today, the governments of Southeast Asian countries and the Hong Kong Special Administrative Region are on high alert to prevent international financial speculators from making a comeback and once again sweeping away a large amount of wealth in various countries.
This worry is not unfounded.
It can be seen from the Hong Kong foreign exchange market and futures market that international financial speculators are establishing a large number of six-month short-selling contracts. The amount is so huge that it makes people's scalp numb. The settlement date is steadily pointing to a certain period in August 1998.
Does everyone in the industry understand what that means?
The decisive battle will break out in August 1998. It depends on whether you go to heaven or hell.
If we want to safeguard Hong Kong's decades of economic prosperity, we must win this last-ditch battle.
Hong Kong has the strong support of the central government, and the people of Hong Kong need to unite as one to defend their homeland from being destroyed by bandits.
At this critical moment, Royal Fund, as a powerful global multinational enterprise, has huge cash flow and its own strength is outstanding among the others.
This is undoubtedly an important force influencing the financial market, and it is also the anchor that stabilizes the confidence of Hong Kong Stock Exchange investors. It has great influence and role, and its market position is very important.
Because it is expected that a fierce financial war will break out in August, large and small funds in the Stock Exchange market have withdrawn, driving all market participants to flee in panic.
This tragic stampede with many people killed and many people killed was a fatal blow to market confidence, and trading was in a sluggish state.
For Wang Yaocheng;
At this time, we made a decisive move to acquire HSBC. Based on HSBC’s huge size and deep-rooted influence in the Hong Kong market and the entire Southeast Asian financial market, this major move is destined to have far-reaching consequences.
Like a thunderous explosion, breaking through the dark clouds in the sky, it will definitely restore market confidence to get through this difficult moment.
move
It is of great significance to establish the unshakable dominance of Royal Fund in the Hong Kong market, win the respect of Hong Kong people and the recognition of the government. At the same time, it can win the high appreciation of the mainland government.
At this turbulent moment in the financial market, a major merger and acquisition has been given more meaning.
After the Wang Consortium took control of HSBC, it had the core banking support of the consortium, connecting companies scattered around the world, and had a strong and strong backbone and stable financial support.
This chemical effect is by no means the effect of one plus one equals two, but the effect of one power of infinity.
Now that we control the controlling stake in HSBC, we can officially take over the management of HSBC at the HSBC board meeting in March and take over the management of HSBC as a matter of course.
The integration in less than half a year is of great significance to the group's new round of expansion and response to the financial crisis.
The timing is right and the step is just right.
From another perspective;
At the end of last year, the Royal Family Fund entered the market on a large scale to hunt for the bottom. It controlled a large number of corporate stocks of the four richest families in Hong Kong, posing a direct threat to them.
Under this situation, the overt and covert fighting between the two sides continues to this day.
Especially the Wu family, after learning that Wang's Fund intended to control the Harbor City and Ocean Terminal projects, they resisted as strongly as if they had their hearts cut out, and have been mobilizing funds to fight back.
Faced with the Royal Family Fund's all-out attack on eight of its listed companies, it could save Zhang Shan but not Li Si. Now the Wu family is also in a state of turmoil and is struggling to deal with it.
Thinking of this, Wang Yaocheng's bright eyes showed a cold light;
It's time to take a heavy hand and make these four wealthy families, who still don't know what they are called, bow their heads and recognize the harsh facts.
In the three-thirds of an acre of land in Hong Kong, one can become a landowner by not only doing real estate, but by engaging in marriage. Faced with the royal funds entering the market aggressively, their strong strength will crush everything.
Even if it is a dragon, it must be coiled up, and even if it is a tiger, it must lie down.
Looking around the world, only Hong Kong is most suitable as the base camp of the Wang Consortium.
It is a bridgehead connecting the outside world and the mainland, with smooth information connectivity, superior geographical advantages, developed shipping and air transportation connecting all corners of the country, and a highly commercialized entrepôt system.
The most important thing is that this is the territory of the Chinese people. Under the dedicated care of the central government, they can enjoy geographical and institutional advantages.
If this is the case, then the rear area must be built into an iron barrel array, and managed carefully until no needle can be inserted and no water can be splashed.
The HSBC merger war is just the beginning, and there will be more exciting performances below.