To be honest, there are basically no major financial problems with these banks at present, especially as housing prices in Hong Kong are improving today.
The main reason why these small and medium-sized banks have problems is that their loan ratios are relatively high and there is no support. It is normal for them to encounter large-scale runs and have their funds broken.
It can only be said that these banks were unlucky and suffered from unexpected events, and there were also some forces that contributed to the situation, causing them to suffer huge losses.
That evening, Li Jianhui welcomed a guest at his home, Guo Zhiquan, chairman of the board of directors of Yongan Group.
The Guo family is also a well-known Chinese family in Xiangjiang. They started their business in Xiangjiang at the beginning of the century and are now in their third generation. They own two major industries, Wing On Bank and Wing On Department Store, as well as real estate investments.
Although the price war between Lane Crawford, Watsons and Wellcome caused countless small and medium-sized retailers to withdraw from the retail department store market in Xiangjiang, there are still a few with strong financial resources that survived, such as Hang Lung's West Bank House and Wing On Group's Wing On Department Store.
Although they only have a few stores, they are all self-owned and do not need to consider rent. They have a natural advantage in cost, so they are not afraid of price wars at all.
In this regard, although Tesco Group has many stores, most of them are rented, the ownership rate is quite low, and the cost is really incomparable with Wing On Department Store.
It’s unclear what happened to the Guo family this time. None of the five consortiums relied on it, which also led to the fact that when Yong’an Bank faced the crisis, no major force supported it.
Guo Zhiquan, who entered the study room with Li Jianhui, spoke out as soon as he sat down: "Li Sheng, I hope you can lend a helping hand to help Yong'an Bank tide over this difficulty."
Looking at the worried Guo Zhiquan, Li Jianhui felt quite helpless. The overall situation had been laid out. How could he destroy the chess game at this time?
Since the Guo family is unwilling to choose sides, they must bear the consequences. Although he is rich, he will never help outsiders for no reason, and Yongan Group also competes with him.
Li Jianhui said: "Guo Sheng, you are also aware of the current situation. The first one to suffer a run is my bank. And you also know that the investment in each of my projects is very large. I have been barely maintaining it these days. It is really difficult."
No extra funds will be spent to provide help to Yongan."
Of course, Guo Zhiquan did not believe what Li Jianhui said. This morning he also announced that he would use 2 billion Hong Kong dollars to increase his holdings in several major listed companies. How could he be out of money?
He also knew that it was impossible for Li Jianhui to help Yongan Bank like this, and he never thought that he could get Li Jianhui's help so easily.
Before coming, he had already discussed with the family members. If they wanted to ensure that the Guo family would not be kicked out, they could only choose one force to join.
Although the United Consortium is powerful, it contains Xiangjiang British Capital, Xiangjiang Chinese Capital, and Nanyang Capital. It is too complicated and it is doubtful whether it can be closely united.
Although the Xianghua Consortium's industries are widely distributed, most of its core members are north-oriented and have relatively distinct positions, which is not suitable for a business family like the Guo family.
The internal industries of Huaxin and Xinya are relatively single, and their comprehensive strength is relatively weak.
After comprehensive consideration, they set their target on the Donghua Consortium, which is a purely Xiangjiang Chinese-funded consortium and the one with the strongest strength and potential among the major Chinese-funded consortiums.
Its core figures have been named the Young Leaders of the Hong Kong Business Circle for two consecutive years, and their wealth ranks first among the Chinese.
"Li Sheng, there is no problem with the operation of Yong'an Bank itself. It is only because of this sudden incident that there is a shortage of funds within the bank. We, Yong'an Bank, are willing to give 40% of our shares for financing. I wonder if Xinjian Group is willing to lend a helping hand.
?”
The 40% stake obviously did not meet Li Jianhui's expectations. What he wanted was not to invest in a bank.
He did not go around in circles with Guo Zhiquan and said directly: "I believe Guo Sheng is aware of the current situation. At present, not only our Donghua, United, Huaxin, Xianghua and Xinya are sharpening their knives and preparing to take advantage of this opportunity and acquisition.
Form a large financial group as its core industry.
Guo Sheng came to me today. I believe he has made a decision in his heart. I will tell you my thoughts directly. 60% of Yongan Bank's financing shares will be acquired by Xinjian Bank, Daoheng Bank and East Asia Bank respectively. 20% will be acquired with financing funds.
Shares of the three major banks.
Yongan Group will also be a member of Tung Wah Club in the future, with mutual benefit and win-win results, and we can compete together in the face of external competition. I wonder what Guo Sheng thinks?"
In other words, the Guo family is indeed valuable to win over, otherwise Li Jianhui would not agree to this visit today.
Now that the situation in Xiangjiang's business community has roughly taken shape, all parties hope to have more high-quality allies join in to enhance their own strength.
The Yong'an Guo family happens to be a relatively high-quality ally. If Li Jianhui chooses to refuse to accept this person to join the Donghua Society, then it is very likely that this person will join the Huaxin Society or the New Asia Society tomorrow.
Guo Zhiquan has long been aware of some of the regulations within the Donghua Consortium, which require cross-holding in many industries. This is the biggest difference from other major consortiums, and has also led to closer ties and greater unity within the Donghua Consortium.
Although he personally lost 60% of his shares, Yongan Bank gained shares in Xin Jian, Dao Heng, and the three major banks in East Asia. Donghua Group used to hold shares in each other in the three major banks, but now the four major banks hold shares in each other.
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Although Wing On Bank has a market value of 5.6 billion compared with Bank of East Asia, Dao Heng Bank with a market value of 4.3 billion, and Xinjian Bank with a market value of approximately 2 billion, the market value of less than 300 million is very weak in comparison.
But after tomorrow, Yongan Bank's market value will soar rapidly.
He readily accepted Li Jianhui's request. To be honest, he didn't expect that Li Jianhui would be so easy to talk to. He originally thought that he would pay a huge price to get Li Jianhui to accept him into the Donghua Consortium and help Yong'an Bank survive this crisis.
Difficulties.
Perhaps as once rumored, Li Jianhui never meant to specifically target Chinese-owned families. Mutual benefit and win-win cooperation with all major Chinese-owned families was his original intention.
If you think about it carefully, those Chinese-owned families targeted by Li Jianhui also made trouble for Li Jianhui first, which led to Li Jianhui's counterattack.
Each of the families that Li Jianhui cooperates with has seen their net worth skyrocket, such as Li Guobao, Lei Juekun, Feng Jingyao, etc.
Seeing that Guo Zhiquan agreed, Li Jianhui said happily: "It's already late today. Tomorrow at seven o'clock in the evening, I will host a welcome banquet for Guo Sheng at the Xinhui Hotel. All members of the Donghua Association will attend."
"Li Sheng will call me by my name from now on, and I will definitely attend on time tomorrow night."
Guo Zhiquan did not rush to invite him in this matter. Li Jianhui came to invite the representative because of his identity as the person who had the conversation in Donghua.
Now that the other party has chosen to join the Donghua Society, Li Jianhui is no longer so polite. Calling Guo Sheng is really too alienating. Of course, he does not let Guo Zhiquan call him Li Sheng anymore, and also lets him call him by his name.