Hong Kong media have reported that Mr. Lin Zuhui intends to take over China Commercial Bank and is negotiating with the Hong Kong government.
However, some media pointed out that China Commercial Bank may still have unrecorded debts of nearly 2 billion overseas, which is the biggest obstacle to this negotiation. After all, almost no consortium is willing to bear such a large amount.
Some media also pointed out that Mr. Lin Zuhui, as the richest man in Hong Kong, could not bear to see the depositors of China Commercial Bank lose all their money and it would take several years to get back part of their deposits, so he considered intervention.
Some media pointed out that if the new consortium intervenes in China Commercial Bank (Hong Kong), it will have to prepare for a "loss" of nearly 5 billion in order to save China Commercial Bank.
For a time, public opinion was in an uproar.
The depositors of China Commercial Bank have placed their hopes on Lin Zuhui, and the public opinion circles in Hong Kong have infinitely elevated Lin Zuhui's status. Everyone hopes that Lin Zuhui will take over this hot potato.
Of course, Lin Zuhui will not agree to the acquisition immediately. The period of "temporary liquidation" of China Commercial Bank is five months, so why should he be in a hurry?
Therefore, he wanted to wait for China Commercial Bank's overseas unrecorded creditors to appear before considering whether to acquire it.
However, he has not made up his mind to acquire the company, and contacting the Hong Kong government is just normal business behavior;
He needs to carefully weigh the pros and cons and bargain carefully with the Hong Kong government.
If it doesn't work out, he actually has other options, such as the Wing On Bank in the hands of Hang Seng Bank, which is also an option; and the Overseas Trust Bank in the hands of the Hong Kong government, I believe he also has great hopes.
Time flies, and two weeks have passed in the blink of an eye.
The beginning of May.
Lin Zuhui came to Hengjin Investment, and both George and Bruce returned to Hong Kong to report to him.
George Hui reported: "The April S&P 500 futures have been delivered, and the delivery index is 380 points. Our buying average index is 317 points, with a total of 25,000 lots. The profit per lot is US$15,000, and the total profit is US$375 million (2.925
billion Hong Kong dollars), 4.485 billion can be withdrawn.”
Lin Zuhui nodded with satisfaction. Although there was a slight deviation, it was expected.
"Return the funds to the Hengjiang Investment Xiangjiang account as soon as possible. My acquisition bank needs it. In the future, this kind of financial investment will be completed in my investment bank. Therefore, Hengjin Investment will become the investment bank of my bank.
You must be ready and continue to be responsible for my investment banking business."
To put it bluntly, there will be a merger, and his future financial consortium will include commercial banks, investment banks, and securities companies.
I don’t plan to be an insurance company. The reason is very simple. The insurance business in Xiangjiang is monopolized by London insurance companies, and local insurance companies are basically at a loss. The most important thing in insurance is reputation. Those insurance companies that have been around for hundreds of years have a natural advantage.
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What's more, Lin Zuhui's acquisition of banks is just to assist his personal investment in financial products.
George nodded excitedly. He knew Lin Zuhui's abilities and believed that the Lin family's financial consortium would grow bigger and bigger.
"Okay, boss!"
Then, Bruce reported to Lin Zuhui about the investment situation of the family office. Generally speaking, the investment department of the family office is not as busy as Hengjin Investment, but several investment managers of the family office are Lin Zuhui’s personal financial advisors, and they also supervise Hengjin Investment.
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After Bruce reported his work, he said to Lin Zuhui: "Citibank and Oracle, the stocks of these two companies are still not optimistic and continue to fall. If the boss wants to buy the bottom, we analyzed it and found that the second half of the year is the best
Opportunity."
Lin Zuhui nodded. He actually knew it. He remembered that Citibank's stock price fell to more than 8 US dollars, and it is currently only 10 US dollars, indicating that there is still room for decline.
As for the 4.9% of Citibank shares he invested earlier, it has been diluted to about 3%, totaling 16.6 million shares, resulting in a loss of more than 30 million US dollars.
But it doesn't matter. It's a long-term investment anyway. Citibank and Oracle will turn around next year. What's more, he has also become an ally with Citibank to facilitate future investments in the United States.
Lin Zuhui said: "Okay, I'll keep these two stocks for the second half of the year before hunting for lows. My funds have become tight recently!"
After all, he still wants to acquire China Commercial Bank and Overseas Trust Bank, which will probably require 7 to 8 billion in funds.
Moreover, he has recently formed a banking team. He has poached three bank executives in Xiangjiang, including Li Huimin of Hang Seng Bank. In addition, he has also poached two bank executives overseas, one Chinese and one foreign.
Together with his financial advisors, he believes that once he takes over the bank, it will be able to manage it right away.
Sure enough, China Commercial Bank suddenly had unrecorded debts of about 1.8 billion Hong Kong dollars. For a time, the Chinese Bank (with a Chinese background) that had intended to take over immediately announced its withdrawal. The last hope was that only Lin Zuhui had not expressed his position.
As for the depositors of China Commercial Bank, they are eager to offer Lin Zuhui as a deposit, hoping that he will accept China Commercial Bank.
Lin Zuhui once again led people to the Financial Secretary.
In the conference room, Lin Zuhui said: "Director Cui, our team has changed its focus and hopes to buy Overseas Trust Bank from the Hong Kong government."
Lin Zuhui changed his strategy and planned to start with Overseas Trust Bank. Of course, he actually also wanted to take down China Commercial Bank. After all, this bank has more than 30 branches and has a very wide range of business; but the losses are too big. Now
It's about over 4 billion.
It is slightly better than history, probably because Lin Zuhui let this thunder explode in advance.
Cui Kecheng immediately shook his head and said: "Lin Sheng, Overseas Trust Bank has not yet been sold. What we are talking about now is China Commercial Bank. Moreover, we hope to find an experienced team for Overseas Trust Bank!"
Lin Zuhui said with a smile: "China Commercial Bank has trouble even the Hong Kong government, let alone me as a businessman. As for the experienced team you mentioned, I have already formed it. They are all the top executives in Hong Kong. Even you
I also have two London bankers joining my team.”
Although Overseas Trust Bank also has a historical cumulative loss of 1.6 billion, it is currently profitable, with a profit of more than 300 million last year. Theoretically, it can turn losses into profits in four to five years.
The subsequent discussions between the two parties did not go smoothly. Lin Zuhui also gave up the idea of acquiring China Commercial Bank and planned to acquire Hang Seng Bank's Wing On Bank, which was cheap and only cost a few hundred million Hong Kong dollars.
Although the scale is small, with deposits estimated to be only over 2 billion, it can still be considered as entering this field.
Just when Lin Zuhui was about to give up, Zhuo Shengcai from the Banking Regulatory Office whispered a few words into Cui Kecheng's ear, seeming to compromise.
After a moment, Cui Kecheng said: "Mr. Lin seems to be very sincere in entering the banking industry, and we also want to handle the China Commercial Bank incident well, so we have a proposal. If Mr. Lin handles the China Commercial Bank well, Overseas Trust Bank can give priority to selling it."
Give it to you!"
Lin Zuhui smiled and said: "Director Cui, it seems that this is not sincerity enough. If the Hong Kong government really wants to handle the China Commercial Bank matter, I can successfully resolve the matter this month. For this, I have prepared 7 billion Hong Kong dollars in cash."
.I’m afraid China Commercial Bank only needs 5 billion to solve the problem perfectly, so how about buying Overseas Trust Bank with the remaining 2 billion Hong Kong dollars?”
He knows the price of overseas trust banks. In his previous life, he sold a total of 4.3 billion, although it was two years later. The bank itself has great value, talents, licenses, networks, etc., these are all invisible assets.
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Hong Kong government officials were shocked. They didn't expect that Lin Zuhui had such a huge amount of cash. I'm afraid even Li Chaoren couldn't get half of the cash!
Next, the two started a heated discussion, and finally reached a preliminary agreement.
The content is roughly as follows: Lin Zuhui's team will take over the "China Commercial Bank", assume all debts, and calm the impact of this incident; the Hong Kong government will sell "Overseas Trust Bank" to Lin Zuhui's team at an agreed price of HK$2.5 billion early next year.
In order to save Overseas Trust Bank, the Hong Kong government spent 2 billion Hong Kong dollars in cash. Now it has sold 2.5 billion, which is still a slight profit and will not be criticized.
In Lin Zuhui's view, even if Overseas Trust Bank is sold in two years, it will not be his turn; because he has no experience in dealing with problem banks in Hong Kong. Guoco Group, a Southeast Asian capital, took over Hang Lung from the Hong Kong government a few years ago.
Banks handle things better, so this kind of consortium is the favorite of the Hong Kong government.
Moreover, by selling it to Overseas Trust Bank for HK$2.5 billion next year, it will be equivalent to saving 2 billion. In this way, China Commercial Bank will not lose money at all.
Of course, these transactions require the participation of lawyers to form effective documents.
Furama Hotel.
Several hundred representatives of large depositors from China Commercial Bank attended a meeting with some anxiety and excitement.
Originally, China Commercial Bank had 45,000 depositors, but after a run on the bank and the Hong Kong government advanced HK$2 billion in deposits to depositors below HK$500,000, there are currently more than 5,000 large depositors left.
After reaching a preliminary agreement with the Hong Kong government, Lin Zuhui's team was not in a hurry to sign a formal contract with the Hong Kong government. Instead, it advertised in the media that the China Commercial Bank incident was expected to be acquired by the Lin Zuhui family. Then, large depositors were asked to select 500
Many representatives attended this consultation meeting.
"Hello Lin Sheng!"
"Hello Lin Sheng!"
But when Lin Zuhui led his team to the lobby, the depositors of China Commercial Bank greeted him excitedly.
Lin Zuhui smiled and nodded to everyone and signaled.
He walked to the prepared position on the rostrum and sat down with a group of consultants.
"Everyone, I am convening you this time to discuss with you! This time I do intend to acquire China Commercial Bank and assume all debts and responsibilities, but I am very worried." Lin Zuhui said through the microphone.
Hearing Lin Zuhui say that he was worried, everyone started to make a fuss, but Lin Zuhui's team quickly controlled it and designated someone to speak.
"Mr. Lin, I don't know what you are worried about?" A large depositor stood up and said.
Lin Zuhui smiled and said: "You are a contractor, right? Your name is Huang Qilin?"
The large depositor nodded quickly. He had cooperated with New Era Group many times, but he didn't expect that Lin Zuhui only met once and remembered his name.
Lin Zuhui continued: "It's very simple. My acquisition of China Commercial Bank is not for charity, but I think it is a long-term investment, although it will cause me a loss of 5 billion in the short term. Therefore, I am worried that once I take over, China Commercial Bank will
After the business reopened, a run occurred again. I have plenty of money, and a few billion is nothing to me, but China Commercial Bank’s credibility problem has made it hard to recover. Then there is not much point in me acquiring it!”
At this time, everyone looked at each other, and someone raised his hand and said: "Mr. Lin, if we have your guarantee, we can promise that we will not withdraw the deposit before it expires."
Lin Zuhui said with a smile: "My acquisition of China Commercial Bank is the biggest guarantee. I will not do anything that damages my credibility. But what you said makes sense. You should give me a promise, that is, the deposit has not expired.
Previously, you large accounts could not withdraw money. In this way, you can also avoid losing interest, and China Commercial Bank can also restore its credibility. After all, you have chosen to trust China Commercial Bank, so citizens can choose to continue to put their deposits in China Commercial Bank.
!”
"I agree! Originally we had no hope, but now that Mr. Lin, the richest man in China, is the guarantee, what do we have to fear?"
"Yes, Mr. Lin's reputation is unmatched by anyone in Hong Kong. I also promise not to withdraw the deposit before it expires!"
Everyone almost unanimously agreed with Lin Zuhui's suggestion, so the meeting was very successful.
Of course, if his words are unfounded, Lin Zuhui will publish a newspaper and ask all depositors of China Commercial Bank to go to the China Commercial Bank branch to register and sign a letter of commitment.
In this way, a three-party cooperation was formed to successfully resolve the national business incident.