Regarding the surging foreign exchange exchange, Tianyu Bank accepts all comers and they have enough foreign exchange to cope with the exchangers.
There is even a long queue at the business point in Central. Most financial investment institutions in Hong Kong are headquartered in Central, so they naturally give priority to coming here to handle business.
Xia Fengxing, vice president of Tianyu Financial Group and chairman of Tianyu Bank, personally came to the Central store to understand the situation here.
After seeing the current situation, Xia Fengxing ordered the manager of the Central store to immediately arrange more windows that mainly deal with foreign exchange exchanges to reduce the pressure on the current windows.
At the same time, security personnel are arranged to maintain order and ensure the safety of customers. Today will be the busiest day for business. After today, the pressure on Tianyu Bank will be reduced.
The more customers that come now, the better, so the bank will make more profits. Once the government introduces relevant policies and the Hong Kong dollar exchange rate rebounds, they will be able to gain income from the price difference. At the same time, their bank will also charge fees for the exchange.
Xia Fengxing knew very well that the current exchange rate could not be maintained for a few days, so he hoped to exchange as much as possible. With every additional exchange, Tianyu Bank would be able to earn more profits.
You must know that for their current exchanges, the profits after the exchange rate rebounds need to be given to the major groups first.
Now it is equivalent to major groups converting US dollars into Hong Kong dollars at the current exchange rate. If their banks want to make more profits, they must find ways to do as much exchange business as possible, otherwise they can only earn some handling fees.
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Although Xia Fengxing hopes that major groups will keep their foreign exchange rates unchanged and wait for the government policies to be released, their banks will be able to gain more profits from this.
It is a pity that none of these group presidents and financial directors felt that they were all members of the Li Group, so they gave up their interests in this area, allowing Tianyu Bank to increase its performance in vain.
After Li Guangyu announced that the meeting was adjourned, the financial directors of each major group approached Zhou Xiaoning and asked Tianyu Bank to convert all the foreign exchange accounts in their group accounts into US dollars.
Zhou Xiaoning had no way to refuse the request of these financial directors. Their bank could only agree to it. The requests of these financial directors of these groups were normal. Even if this matter came to Li Guangyu, their bank would have to exchange money for the major groups.
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You must know that their bank used the foreign exchange in these group accounts in the early stage to ensure that these major banks can cope with the foreign exchange run crisis. During this period, Tianyu Bank will face an exchange rate loss problem. The US$10 billion of this loan is in place.
If there is too little business, Tianyu Bank’s final profits from this operation may not be as good as those of these groups.
Especially Wheelock and Hengyu Supermarket Group. These two groups were converted into U.S. dollars at an exchange rate of 5.2, but now they are converted back into Hong Kong dollars at an exchange rate of 8.5. The intermediate exchange rate difference has reached 3.3.
It was originally HK$10.4 billion, but now it has become HK$17 billion. For these two conversions, their bank will incur more than HK$130 million in handling fees.
Each of these two groups will have a profit of more than 6 billion Hong Kong dollars, which has far exceeded the market value of most listed groups in Hong Kong.
Of course, this is calculated in Hong Kong dollars. If calculated in US dollars and based on the current exchange rate, the two major groups are losing money, and the losses are the handling fees charged by their banks.
Their capital was originally equivalent to US$2 billion, but now after two conversions, it is less than US$2 billion.
However, Xia Fengxing knows that once the government's policy of stabilizing the exchange rate is introduced, these groups will gain a lot even if they settle in US dollars, allowing their profits to increase significantly this year.
Especially for the Wheelock Group, they mainly invested in Hong Kong this year, and the funds were used in Hong Kong. The fall in the Hong Kong dollar exchange rate did not have a great impact on them.
The exchange rate of the Hong Kong dollar is falling these days, and the property market prices have not only risen instead of falling, but have entered a new round of plummeting. The Wheelock Group can acquire more properties with this capital.
The same goes for Hengyu Supermarket Group. They rent both Hengyu Supermarket stores and 7-11 convenience stores in Xiangjiang. This time they will also repurchase these stores, and the profits from the exchange rate this time will not only be able to
Help their group acquire the properties of all stores in Xiangjiang, and they can still make a profit even if the losses from this material run are covered.
However, Xia Fengxing is not depressed. They have gained a lot from handling fees during this period. The major groups under the Li Group alone have created nearly 600 million Hong Kong dollars in revenue for them.
This is because they all belong to the Li Group. These groups charge a handling fee of 0.5%, while external exchanges charge a handling fee of 1% to 2% depending on the exchange amount.
As long as the bank can exchange half of its U.S. dollar foreign exchange this time, their bank will be able to obtain very good profits. By then, the company with the highest profit will still be Tianyu Bank.
Now Tianyu Bank counts the US$10 billion in loans, and their US dollar foreign exchange reserves have reached 14.2 billion, which has exceeded the foreign exchange reserves of many countries in Southeast Asia. As long as the major banks such as HSBC, Standard Chartered, and Hang Seng are restricted, as well as Citigroup and Sanhe
, Mitsui and other foreign banks’ exchanges, Tianyu Bank has enough ability to block the exchanges of major financial investment companies and small and medium-sized banks outside.
At six o'clock in the afternoon, Li Guangyu listened to Xia Fengxing in his office about today's foreign exchange situation at Tianyu Bank.
Xia Fengxing said: "Li Sheng, today is the first day that we have relaxed exchange restrictions, so the business volume is very huge, especially some financial investment institutions, which have brought us a very large business volume, including Central and Kowloon.
Several business offices have the largest business volume. Our finance department has just made statistics on the foreign exchange exchange situation reported by each business office over the phone. Today, 2.6 billion U.S. dollars were exchanged in Xiangjiang U.S. dollars."
Li Guangyu was quite surprised by such an amount. He did not expect that major investment institutions in Hong Kong still have so many Hong Kong dollars in their hands. It seems that these investment companies are probably investing in foreign exchange.
Li Guangyu asked: "Did these exchangers directly open accounts in our bank today or transfer them to other banks?"
"This time, the vast majority of customers have transferred to other banks, mainly banks in Baodao, Japan and Southeast Asia. These investment companies are probably inextricably linked to these banks, and some investment companies are even like these.
Subsidiaries of banks.”
Xia Fengxing knows very well that many of these investment companies are backed by banks and carry out financial investment activities in Hong Kong. After the exchange rate crisis came, due to some initial restrictions of several major banks, they were unable to quickly exchange the Hong Kong dollars in their accounts.
For other foreign exchange.
Among them, there are also some institutions that specifically take advantage of this crisis to invest in Hong Kong dollars. They take advantage of the continuous decline of the Hong Kong dollar. Many citizens are eager to exchange for foreign exchange. They exchange foreign exchange for Hong Kong dollars with Hong Kong residents at a lower exchange rate, and then go to Tianyu
The bank conducts the exchange.
In this way, the handling fee for large-amount exchanges will be lower, and they can also earn the price difference.
Li Guangyu said: "Now your bank should pay more attention. The exchange should be the largest on the first day, and it may be reduced tomorrow. We must prevent several major banks from taking this opportunity to run on our bank. They have huge amounts of money in their hands."
Hong Kong dollars.”
"Li Sheng, we will carefully review the information of the exchanger to prevent this from happening, and at the same time we will do a good job in risk monitoring."