The Hong Kong government issued an announcement: It will sell Overseas Trust Bank to Octopus Financial Group for a cash price of 2.5 billion.
For a time, Hong Kong and Kowloon were shaken.
The media have conducted inquiries and interviews one after another, and made extensive reports:
Octopus Financial Group is a subsidiary of Octopus Holdings Company, a wholly-owned company of Mr. Lin Zuhui.
This transaction did not involve China Commercial Bank, that is, all funds were spent from Mr. Lin Zuhui’s personal funds.
Overseas Trust Bank turned a profit in 1988. Last year (1991) it made a profit of 270 million, and its cumulative losses have been reduced to 2.15 billion. Based on this good momentum, it will be successful in a few years.
After the completion of this transaction, Octopus Financial Group will have two banks under its umbrella - China Commercial Bank (Hong Kong) and Overseas Trust Bank; with a total of 75 branches, second only to the Bank of East Asia and ranking second among Chinese banks;
With deposits of 19.1 billion, it ranks behind HSBC, Bank of China, Hang Seng, and Bank of East Asia in attracting deposits, and more than Standard Chartered Bank.
Regarding the rapid development of Octopus Financial Group, the media have also reported that no one can copy it because Mr. Lin Zuhui spent 7.5 billion Hong Kong dollars in real money.
For a time, Lin Zuhui's financial resources were once again talked about by the citizens of Xiangjiang, and even spread overseas.
Kowloon, China Commercial Bank Building.
Senior executives of Octopus Financial Group held a meeting with Lin Zuhui in the conference room.
Also attending the meeting were Li Rongheng, CEO of Overseas Trust Bank, and several senior executives of Overseas Trust Bank.
The president of Octopus Financial Group is a Chinese named Liu Guoquan; the vice presidents are He Changhong and British Dilles.
Among them, Stanley Ho is the CEO of China Commercial Bank (Hong Kong) and will also be the CEO of the upcoming ‘Octopus Bank’.
Although there are some foreign senior executives in the entire Octopus Financial Group, they mainly work as consultants to ensure that Octopus Bank does not have the common problems of family banks, and to give the company the concepts and experience of Western banking operations (for reference only, and will not copy them).
In other words, although Lin Zuhui is the sole shareholder of Octopus Bank, Octopus Bank still has to operate and operate in accordance with the rules and regulations of Hong Kong Bank and the general principles of international banks.
Octopus Bank cannot be regarded as Lin Zuhui's personal bank, otherwise problems will occur sooner or later, which will not be conducive to development;
Therefore, when the time comes, Lin Zuhui will organize it to be listed.
Only through listing, Octopus Bank is essentially a public bank.
Of course, the Lin family can still influence Octopus Bank through Octopus Financial Group, and it does not mean that everything is completely handed over to outsiders.
At the beginning of the meeting, Lin Zuhui, as the chairman of Octopus Financial Group, took the lead in saying: "The two banks will complete the merger and change their names this year. This is the first priority. He Changhong, Li Rongheng, and Li Huimin, you three are the leaders of the 'Bank Merger Group'.
Stanley Ho will serve as the CEO after the merger, and Li Rongheng and Li Huimin will serve as executive vice presidents."
"Yes, boss!" the three of them replied immediately.
Lin Zuhui added: "Liu Guoquan leads the Octopus Financial Group to support and supervise them to ensure that there are no mistakes and no mistakes!"
Liu Guoquan nodded and said, "Okay, boss!"
Lin Zuhui continued: "Octopus Bank itself has become a large Chinese-owned bank in Hong Kong. Logically speaking, it does not need to find a big backer like the local small Chinese-owned banks. However, Octopus Bank itself has a big backer like me.
So the loan-to-deposit ratio can be a little higher, let me set it at 49%."
For example, Bank of East Asia and Hang Seng Bank are generally below 50%. Bank of East Asia only has 43% and Hang Seng Bank 45%.
The closure of Chinese banks has also frightened the courage of some small banks. For example, the loan ratio of Wing Lung Bank is below 40%.
However, Lin Zuhui feels that he has Hengjin Investment and the family office as a guarantee, and the loan-to-deposit ratio of 49% is already considered conservative; if a run occurs, Lin Zuhui can raise 5 billion in a few days without any problem.
What's more, every run is caused by "external factors", and as Lin Zuhui knows, only the Asian financial crisis will cause a banking crisis.
If this is the case, then be a little bolder.
He Changhong said: "49% is not very high. Compared with more than 90% of Hong Kong Capital, it is completely dwarfed. The boss's reputation is outstanding, and for Hengjin Investment, a private investment company, the deposit-to-loan ratio of 49% is still very high.
Insured.”
The Hong Kong-based bank is indeed strong, with deposits of 6 billion and loans of 5.6 billion, leaving only a little cash as a reserve.
Of course, in the event of a run, with the support of Arab Bank and the backing of petrodollars, we can get through it without any danger.
Last year, when the China Commercial Bank broke out, all banks with Middle Eastern backgrounds experienced runs. However, Hong Kong-based Bank still managed to survive safely, and it still goes its own way and lends a large amount of money. Isn't that because it has the backing of "A Bank"!
Then, Lin Zuhui said: "When you lend, please pay attention. The mainland is opening up the market to a greater extent. By then, our real estate developers and factory owners will soon invest heavily in the mainland. You can consider loans in this area. I think it is very guaranteed."
"
Everyone did not doubt Lin Zuhui's vision, so they nodded in agreement.
Then, Lin Zuhui stopped speaking and let professionals continue the discussion, while he took notes with paper and pen, which was regarded as learning.
This time Octopus Financial Group reached a deal with the Hong Kong government, and Lin Zuhui immediately asked the heads of each branch to be vigilant to see if any depositors had withdrawn their deposits out of concern.
Theoretically, there won't be any. After all, Lin Zuhui has an excellent reputation in Hong Kong and he purchased it directly in cash.
But he won't take it lightly!
Of course, this week Hengjin Investment successfully closed its foreign exchange position and cashed out 4.95 billion Hong Kong dollars in cash. This is the confidence.
Even if 2.5 billion Hong Kong dollars are spent, there will still be 2.45 billion left.
In addition, Lin Zuhui also deposited 1 billion in China Commercial Bank, a total of 3.45 billion in cash.
Hengjin Investment invested 440 million in the May futures index and purchased 10,000 futures contracts. When the position is closed, more than 1 billion will be withdrawn (mainland factors caused the stock market to surge).
Suddenly, Lin Zuhui's pockets bulged and his confidence increased greatly.
........
On Saturday morning, Lin Zuhui held a meeting. The management present at the meeting were all senior employees of New Era Group (China).
New Era Group (China) is in charge of real estate investment projects in the mainland, including real estate development (sales), investment real estate (rent collection), and infrastructure, excluding ports, retail, beverages and other industries.
At the meeting, Lin Zuhui said: "President Lu, immediately lead a team to the mainland and prepare to set up offices in Yangcheng, Magic City, and Beijing, and recruit local employees."
Lu Donglai was shocked. It was finally his turn to appear!
Although he has always been a core executive of New Era Group, his position has been changing. In the past year, he has only been a director of the group and president of New Era Group (China), which is more or less a false position.
Now, New Era Group (China) is finally going to invest heavily in the mainland. According to the boss, mainland investment will account for 20% to 25% of the group. Therefore, New Era Group (China) has a lot to do.
"Okay, we will be ready by the middle of this month and will start setting off next Monday!"
Lin Zuhui nodded and said: "Okay, time is money! I estimate that I will go to the mainland in March and discuss many cooperation projects with the local government. I hope you are well prepared. At the same time, you must also take the initiative to find more
Real estate projects are then discussed and approved.”
Lu Donglai said: "Well, while setting up an office, we will understand the local policies and regulations, become familiar with the local environment, and be fully prepared for the next investment."
After taking note, Lin Zuhui appointed the heads of the three offices and encouraged everyone.
The capital also wants to build a ‘Central Plaza’, but considering the unpleasantness and losses of the ‘Oriental Plaza’ in the previous life (Li Chaoren said that 80% of the projects in the mainland are successful, while the Oriental Plaza accounts for more than ten percent of the unsuccessful ones);
Therefore, Lin Zuhui planned to develop Sanlitun according to the model of Taikoo Li in his previous life. The building was set to have ten floors and two underground floors.
The water in the capital is too deep. Although Lin Zuhui has a higher status than Li Chaoren, even if the people at the top agree to him, the people below will have all kinds of troubles. But if he gives up large-scale commercial projects in the capital, Lin Zuhui is a little unwilling.
It's not about how much money you make, it's about influence.
Therefore, Sanlitun is suitable for his idea. As long as it is developed well, wherever the Central Plaza is, it will be the commercial center of the city.
In the previous life, Taikoo Li Sanlitun was more profitable. It was composed of 19 low-density buildings about 10 stories high. Lin Zuhui happened to have visited it. It did not refer to the exact same design, but at least it served as a reference.
...........
On Saturday night, the Lin family gathered for dinner at No. 75 Deep Water Bay.
During this period, Lin Zuhui announced a shocking news.
"Recently, I will give each of you 100 million in cash and arrange for your investment!"
As soon as the words fell, the faces of the girls burst into smiles!
"Long live Brother Hui!"
For a time, it received rave reviews!
The investment capital of 60 million last year has increased to 100 million this year!
This year, the living expenses of the daughters will be paid by the family office instead. Each member of the Lin family will receive 1 million yuan per month. For example, Guan Jiahui has two children, and together with herself, the living expenses will be 36 million yuan a year.
Of course, if you have only one child, you will only have 24 million yuan left for living expenses every year.
As the principal wife, Wang Lingyin had already been communicated with by Lin Zuhui, who told her directly that he made this decision because he had just earned 3.3 billion in foreign exchange.
Wang Lingyin knew that this man could really make money, so she had no other ideas in her mind! Besides, these women were related to her husband's overseas plans, so even if she objected, it would have no effect.
Lin Zuhui accepted everyone's flattery with satisfaction. As for the investment project, he had actually already thought about it, which was to invest in Microsoft and Best Buy stocks. Anyway, it should only be less than 100 million US dollars in cash, and it was also the account of seven women. For Microsoft
For a market capitalization of US$13.5 billion, this is still childish.
Hengjin Investment owns 2% of Microsoft shares, but it has been treated as an offshore company; the family office has 2% of Best Buy shares, but it has also been treated as an offshore company.
By the end of 1999, Microsoft still had room for appreciation of more than 40 times, enough for these women to make a lot of money!
As for next year, Lin Zuhui will give each of them another 100 million to invest in commercial office buildings in Los Angeles and London.
Rather than saying that Lin Zuhui is purchasing assets for these women, it is better to say that Lin Zuhui is purchasing assets for his own children.