The holding of a joint press conference by senior executives of Wing On, Xin Jian, Dao Heng, and East Asia's four major banks, especially the fact that Xin Jian Group deposited HK$500 million into Wing On Bank, completely helped Yong An get out of the predicament.
Because of the Yongan example, many controlling shareholders of small and medium-sized banks in crisis began to seek support from the five major consortiums.
Even if they know that once they join the consortium, they will only be the subordinates, and in many cases they will no longer be responsible for their development.
It’s just that the current situation no longer allows them to continue like this. Losing their leadership in development is better than bank failure.
As the boss of the purely Chinese-funded consortium, the East China Consortium undoubtedly came to the door the most, but it was a pity that Li Jianhui shied away from them all and did not meet with them.
However, Yuntao Investment Company and Xingsha Investment Company, two of Li Jianhui's chess pieces, made moves.
Lanfeng Investment is not idle either. With such a good opportunity, they are also prepared to take the opportunity to acquire a controlling stake in a bank.
Li Jianhui's unwillingness to accept it does not mean that other major consortiums do not need it. At noon that day, Huaxin Investment Company held a press conference and the company acquired 40% of the shares of Xiangjiang Guang'an Bank.
The Heung Wah Consortium did not stop either. Wharf issued an announcement that the group acquired 60% of the shares of Conifer Bank.
On New Asia's side, Xiangjiang Asian Commercial Bank, Far East Bank and Guangxin Bank have cross-shareholdings and provide cash support to Guangxin Bank.
On one hand, citizens are running out of cash and the Hong Kong Monetary Authority wants to take over forcefully. On the other hand, banks are joining the strength of several major consortiums to tide over the crisis.
This makes those bank shareholders who still have some hesitation in their hearts completely unable to sit still. Even if they are selling, they have to find ways to find forces that can help their banks tide over the difficulties.
Under such circumstances, Yuntao Investment, Xingsha Investment, and even Lanfeng Investment acted quite smoothly.
All three of these banks only need controlling stakes, and the current management is still responsible for normal management, and will not intervene under normal circumstances. This commitment makes these bank shareholders willing to sell their shares to several major investment companies.
Yuntao Investment Company spent 245 million Hong Kong dollars to acquire 65% of the shares of Union Bank. Because this is the post-financing valuation price, the money belongs to the bank's assets and is also a guarantee to help Ka Wah Bank survive this crisis.
In the same way, Xingsha Investment acquired 67% of Ka Wah Bank's shares for HK$315 million, while Blue Maple Investment acquired 65% of Industrial Bank's shares for HK$195 million.
Li Jianhui was very happy after receiving the report in his office, which meant that his layout had taken a big step forward.
"Jianhui, according to the news, several other forces are also making moves. In the afternoon, many banks accepted capital investment from several major consortiums, and several banks were even directly acquired by full capital."
Zhou Jiayi has been thinking about it these days, what will happen if this continues, and what kind of situation it will be like in the future.
Previously it was department store retail, this time it is finance. If this continues, there will be fewer and fewer industries and opportunities left for the bottom to rise.
It was difficult for her to imagine what opportunities her children would have had to rise in the future if she had not joined the Xinjian Department.
As time goes by, all walks of life will be dominated or even monopolized by the five major consortiums, and citizens at the bottom can only work for the five major forces.
However, from the perspective of the Xin Jian Department, Zhou Jiayi definitely does not think there is anything wrong with Li Jianhui and the Xin Jian Department. The larger the market that the Xin Jian Department occupies or even monopolizes, the higher the profits it will make.
Li Jianhui doesn't have as many ideas as the beautiful lady next to him. He can do whatever he wants wherever he sits.
Even if he doesn't want to monopolize, his opponents also want to monopolize. For the sake of his own development, he can only accelerate the company to move forward.
Moreover, Li Jianhui feels that he has done a lot of good deeds this time. By reducing the number of small and medium-sized banks this time, the banking crisis in the 1980s will not reoccur and the losses of many citizens will be reduced.
The problem before Xiangjiang was that there were too many small and medium-sized banks, some of which only had two or three business locations, and their ability to resist risks was extremely poor.
But now it is completely different. Even if there are still some small and medium-sized banks, they are supported by strong capital. When there is a crisis, these capitals can ensure the normal operation of the banks.
Since Zhou Jiayi was pregnant and it was inconvenient to accompany Li Jianhui to the dinner party that night, Li Jianhui sent her home specially before heading to the Xinhui Hotel.
This is a day worth celebrating for the Tung Wah Association, as it is the first time since its establishment that new members have been added.
The number of members has also increased from the previous five to 13. In addition to Guo Zhiquan, there are also Chen Zhiyong, chairman of the board of directors of Xinhui Group, Pan Zhiyong, vice chairman of the board of directors of Xinhui Group, and Ye Han, chairman of the board of directors of Haojiang Tourism and Entertainment Company.
In addition, there are several major families that Li Jianhui has attracted in Southeast Asia, including Malaysia's Sunway Holdings Xie Funian, Indonesia's Lippo Group Li Wenzheng, Pacific Timber Company Peng Yunpeng, and Thailand's TC Pharmaceuticals Factory (Red Bull) Xu Shubiao.
The slightly famous ones in the Philippines are all from Fujian Province, and have pretty good relations with the Nanyang Consortium. Although Li Jianhui has also found a few people with ancestral roots in other areas to cooperate, they are about the same as Cai Junxiong. Their strength is too weak, so he has not yet
I plan to drag him to Donghua Club.
On this day, for Li Jianhui, apart from the increase in Tung Wah Club membership, he only paid a little attention to his daytime career.
But March 12th is destined to be remembered in history. From this day on, Hong Kong’s banking industry began to be monopolized by several major banks.
According to subsequent statistics, as many as 16 major shareholders of banks changed on that day alone.
From this day on, local banks in Xiangjiang either belonged to the five major consortiums or were controlled by foreign capital.
Among them, typical representatives controlled by foreign capital are Industrial Bank, Ka Wah Bank, Union Bank, Guangqing Bank, and De'an Bank.
The shareholders behind Xingchuang, K. Wah, and Youlian have close relations with the Tung Wah Consortium. Behind Guangqing Bank is the Hong Leong Group, a core member of the Nanyang Consortium, which has a good relationship with the United Consortium. The shareholder behind De'an Bank is CITIC, which is a joint venture with Hong Kong.
The Chinese consortium has a lot of connections.
Many economists in later generations studied this incident and believed that the main reason why many bank shareholders changed on this day was deliberate coercion from the Hong Kong Monetary Authority.
As financial managers, there is simply no relatively ample time reserved for these small and medium-sized banks to solve the difficulties faced by the banks.
In order not to be taken over by a strong force, and in order not to be worthless, these small and medium-sized bank controllers can only sell their shares to seek support, or even sell their banks directly.
Many scholars have conducted a deeper analysis and believe that this was an incident planned by several major consortiums and promoted by the Bryan government in order to eliminate these small and medium-sized banks and allow several major consortiums to complete their financial monopoly.
The occurrence of this incident resulted in the local banks in Hong Kong being dominated by the five major financial groups in the following decades, and no new local banks emerged.
However, some scholars affirmed the positive significance. It was the strong takeover of the Hong Kong Monetary Authority and the entry of several major capitals that calmed down the run and resolved a financial crisis, allowing Hong Kong's economy to continue to maintain rapid development.