Chapter 189 Liu Bancheng and the Financial Circle

A few days later, representatives from Daya Properties, Hang Lung Properties, the Hong Kong government and MTR Corporation gathered in the Hong Kong government conference room.

Discuss matters related to Daya Real Estate replacing Hang Lung Properties and taking over the subsequent development rights of properties above subway stations.

The Hong Kong government only needs to ensure that the land compensation of HK$18.2 billion is in place and has not put forward any new conditions. After all, this is beneficial to Hong Kong and can boost the confidence of the real estate industry.

If Hang Lung Properties were to go bankrupt, it would undoubtedly be a further blow to Hong Kong's real estate market, and the Hong Kong government would not want to see that, lest it be attacked by those who allege that the government is incompetent in governing Hong Kong.

MTR has had many pleasant collaborations with Daya Real Estate before, so we welcome Daya Real Estate.

Neither the Hong Kong government nor the MTR Corporation objected, so the four parties quickly reached an agreement. Daya Properties paid the Hong Kong government HK$18.2 billion in land compensation, and Hang Lung Properties received 2+1, totaling HK$3 million, and was eliminated.

At this point, Daya Real Estate obtained the rights to develop properties above eight MTR subway stations, starting Daya Real Estate’s difficult road to take-off.

When the news reached Liu Zhicheng, he was receiving an important client, George, the vice president of Citibank, at the Sail Boat Hotel.

Liu Zhicheng and George have collaborated many times and can be considered business partners.

Liu Zhicheng was also curious about George's sudden visit to Hong Kong, but he guessed that it was related to the real estate crisis that had already broken out in Hong Kong.

Liu Zhicheng vaguely remembered that Citibank was not having a good time and had faced crises many times.

"Mr. George, are you coming to Hong Kong this time to invest in Hong Kong?" Liu Zhicheng asked tentatively.

"Mr. Liu, Citibank is still very optimistic about the future of Hong Kong. After all, it is one of the three largest financial centers in the world.

The gold market second only to New York and London, and the best deep-water port in the Far East, are the cornerstones of Hong Kong's rapid development."

There must be a demon in the abnormal situation!
George was uncharacteristically loud today in speaking highly of Hong Kong, which further aroused Liu Zhicheng's interest.

"It's a pity that Hong Kong's future is uncertain. One of Hong Kong's economic pillars, the real estate market, has plummeted, and the number of middle-class people migrating is increasing day by day. It can be said that Hong Kong is in danger everywhere."

If you are high-profile, I will be pessimistic. Anyway, it doesn't matter, saying and doing are two different things.

"No.No.No, I know Mr. Liu is not sincere, otherwise he would not use a large sum of money to buy commercial land at this time."

"Haha." Liu Zhicheng laughed, "It seems that George pays more attention to me."

"Mr. Liu, please don't misunderstand. We are partners and we have absolutely no intention of investigating Mr. Liu." George was afraid that Liu Zhicheng would misunderstand, so he hurriedly explained.

In fact, all of Liu Zhicheng’s acquisition activities were announced, so it was normal for George to know about it.

"So what business activities does Mr. George have during his trip to Hong Kong this time? It must not just be a simple chat with me, an old friend." Liu Zhicheng said with a smile.

"Of course not. My trip to Hong Kong this time is related to financial activities."

"Oh, is it so?"

"Mr. Liu should know that our Citibank holds a controlling stake in Far East Bank in Hong Kong." George said this and looked at Liu Zhicheng.

"Of course I know this." Liu Zhicheng nodded.

"We are looking to sell, I wonder if Mr. Liu is interested?" George asked.

Liu Zhicheng looked at George with contempt. He had just said that he had confidence in Hong Kong, but now he was preparing to sell his assets in Hong Kong.

In the early days, Far East Bank was just a small money house located in Tsuen Wan. After decades of development, it is still just a small bank in Hong Kong.

Currently, there are about ten business outlets, with assets of approximately HK$200 to 300 million, and deposits under management will not exceed HK$10 billion.

And this is the result of Citibank's full support after taking control of the company.

It can be said that such banks are numerous in Hong Kong, an international financial center.

Back then, Citibank came to Hong Kong to expand its business, but it was unable to penetrate the wealthy market because the local tyrant HSBC was too powerful.

In the mid-60s, a bank run crisis occurred in Hong Kong. In 1969, Citibank took the opportunity to acquire shares in Far Eastern Bank and became the largest shareholder.

Although Citibank is the largest shareholder, holding 4% of the shares, they have no control at all and the power falls into the hands of Qiu Degeng.

At the beginning, Citibank and Qiu Degen fought fiercely for controlling stake, but Qiu Degen won every time.

Of course, this was also the result of Citibank not arguing for it, because they already regarded him as an investment.

Now that Hong Kong's real estate crisis is looming, Far Eastern Bank is inevitably caught up in it. It looks like Citibank is ready to get rid of the burden.

"I wonder what price Citibank is selling it for?" Liu Zhicheng said slowly.

It doesn’t matter whether the negotiations with Far Eastern Bank are successful or not. There will be a banking crisis anyway, and it will be easy for Liu Zhicheng to get a banking license.

"Mr. Liu, with only 3000 million US dollars, you can own 4% of its shares." George said, holding up four fingers.

3000 million US dollars, equivalent to 1.8 million Hong Kong dollars, is a bit overpriced. It is not cost-effective for the current Hong Kong market, and there is no control.

"Mr. George, this price is a bit high, and since we can't get control, it can only be an investment."

Liu Zhicheng was still very interested in taking over a bank, so he began to bargain.

"N0. If Mr. Liu buys shares, he will definitely get management rights because you are Chinese and will definitely not be rejected by other Chinese shareholders."

"Okay, 2500 million US dollars, we'll make a deal." Liu Zhicheng didn't hesitate and gave his desired price.

"Okay, deal." George was also very straightforward. Citibank made more than this much money from Liu Zhicheng every year.

Although Liu Zhicheng will become a competitor after owning the bank, the Hong Kong government has regulations that banks cannot provide loans to affiliated companies.

Moreover, Far Eastern Bank is a regional bank, and the overseas cooperation between Citibank and Liu Zhicheng will not be affected.

Selling Far Eastern Bank shares to Liu Zhicheng now will only deepen the friendship between them.

George was very happy because he could get rid of the burden and deepen his friendship with Liu Zhicheng.

Soon, Shanfeng Investment and Citibank signed a transfer agreement and became the largest shareholder of Far East Bank.

Subsequently, Han Chunxi held a press conference on behalf of Shanfeng Investment, announcing that it would use US$2500 million to acquire 4% of Far East Bank's shareholders and would send two directors to the Far East Bank's board of directors.

As soon as the news came out, Qiu Degeng was stunned. Liu Zhicheng's name was too famous in Hong Kong, so he had to take the initiative to invite Shanfeng Investment to join the board of directors.

.........

Qiu De is even more extraordinary. He is a tycoon in the Hong Kong business world.

He fled to Hong Kong in 50. At that time, Hong Kong was not well developed and it was not easy for Qiu Degeng to survive in Hong Kong when he first arrived there.

Before coming to Hong Kong, he had run a small theater in Shanghai and shown slides. This skill allowed him to gain a foothold in Hong Kong.

Later, he bought the Tsuen Wan Cinema, began his rural film journey, and earned his first pot of gold.

Now he owns banks, securities, real estate, hotels, theaters, newspapers, and has invested in the amusement park "Songcheng". Recently, the most influential thing is that he has acquired 50% of the shares of Asia (Rediffusion) Television. When Liu Zhicheng received the news, he wanted to curse.

But there is no rush. In a few years, Qiu Degeng will have to be fired from Asia Television because of financial fraud.

How to take over the management rights of Far Eastern Bank is the primary task Liu Zhicheng is facing at present.

He immediately called an office meeting with Han Chunxi and Sun Lina to plan this power grab.

"Mr. Han, what do you think about Far East Bank?"

"Mr. Liu and Mr. Qiu told the media that they welcome us to send directors. He is taking the initiative. If we seize power by force, we will be at a disadvantage morally," Han Chunxi analyzed.

"Well, we are all Chinese businessmen, so we still have to pay attention to our face-saving work. But you should do the work of other directors and shareholders, and strive to seize management rights without bloodshed." Liu Zhicheng said slowly.

Han Chunxi nodded to show that he understood.

"Besides, now that Hong Kong real estate has plummeted, Far Eastern Bank will inevitably be caught up in it. Go and find out if you can solve it with money."

Liu Zhicheng certainly had more than just these means. He said to Sun Lina, who was sitting opposite him, "City Group should immediately find a way to acquire the remaining 5% of Rediffusion Television's shares."

No matter what, it never hurts to be prepared, and the TV station is also a very important piece of the puzzle for Liu Zhicheng.

Face? It's mutual.

Of course, Liu Zhicheng would not be aggressive towards Qiu De because he was also a well-known patriotic businessman.

.........

November 11, Far East Bank Building in Tsuen Wan.

Although this building is called Far East Bank Building, it is an asset of Far East Group.

Far Eastern Bank only rented a few floors for its headquarters office and opened a business branch.

When Liu Zhicheng's motorcade slowly drove into the building, someone was already waiting for him.

"Mr. Liu, please forgive me for not coming to greet you in person." The visitor was Qiu Dachang, the second son of Qiu Degen and the future chairman of Far East Development Group.

"Brother Dachang, you are too polite. I dare not trouble Mr. Qiu to come and welcome you in person!" Liu Zhicheng shook hands and greeted him.

"My father is waiting for you in the office. Please follow me, Mr. Liu." Qiu Dachang didn't dare to act casually. After all, he was the most influential figure in Hong Kong.

Afterwards, Liu Zhicheng and Han Chunxi, led by Qiu Dachang, took a special elevator directly to Qiu Degeng's office on the 18th floor.

The moment Liu Zhicheng stepped into the reception room, he saw Qiu Degeng reading a newspaper and did not stand up to greet him.

Given Liu Zhicheng's current status, the Governor of Hong Kong would have to stand up and greet him when he saw him.

Qiu De was a bit arrogant and a bit of a senior. This was Liu Zhicheng's first impression.

He is not what others said in his previous life: the spirit of starting from scratch under the Lion Rock, and the unswerving love for family and country until death!

"Father, Mr. Liu is here." Qiu Dachang reminded from the side.

"Oh." Qiu Degeng raised his head and said, "Mr. Liu, welcome."

"Mr. Qiu, you're too polite." After Liu Zhicheng said this, he looked around Qiu Degeng's office. It looked rather shabby, which was consistent with his frugality.

Is it true, as rumored, that Qiu Degeng suffers from Alzheimer's disease?
In his previous life, he escaped punishment for financial fraud at Asia Television because he had Alzheimer's disease.

"Mr. Qiu's office is so shabby, it doesn't match your billionaire status." Liu Zhicheng also began to flatter him.

"I'm sorry to have embarrassed you, Mr. Liu. I grew up in hard times and I don't have any special pursuits for the office. After all, it is just a place to handle official business," Qiu Degeng explained.

After exchanging pleasantries, the two began to talk about today's business.

"It's an honor that Mr. Liu can invest in Far Eastern Bank. This is also a recognition of an old man like me." Qiu Degeng began to say self-deprecatingly.

Liu Zhicheng didn't quite understand the meaning and couldn't grasp the buoyancy, but he wasn't so easy to talk to either.

"Mr. Qiu, Shanfeng Investment is now the largest shareholder of Far East Bank. The development of Far East Bank is my unshirkable responsibility."

Qiu Degeng was an experienced man, so he naturally understood what Liu Zhicheng meant, which was that it was time to give up his position.

"I founded Far East Bank and I know its situation best. It will be beneficial for its long-term development if I continue to manage it. Mr. Liu, don't you agree?"

He just looked like he was suffering from Alzheimer's disease, but now he acts like a smart guy. Liu Zhicheng certainly won't indulge him.

"Haha." Liu Zhicheng laughed and said, "That's right, but I will definitely not give up my pursuit of a banking license.

I think with my reputation in Hong Kong, I will definitely receive the support of shareholders at the next shareholders' meeting.

Moreover, my company City Group has already acquired 35% of the shares of Rediffusion Television and has obtained a veto power. "

After hearing this, Qiu Degeng couldn't help but pause in his heart. Liu Zhicheng was just a smiling tiger. This was how he killed people by destroying their hearts.

Liu Zhicheng revealed his trump card all at once in order to break down Qiu Degeng's psychological defenses in one fell swoop.

In fact, banking is a useless industry for the rich in Hong Kong because they cannot lend a penny to affiliated companies.

In the past, Hong Kong’s top tycoons did not have their own banks; at most they owned securities investment companies.

Moreover, it is impossible to deposit all the money of one's own companies into one's own bank, otherwise when one needs bank loan support, other banks will refuse.

After a moment, Qiu Degen smiled and said, "Mr. Liu, as long as you don't increase your stake in Rediffusion, I can step down from the Far East Bank."

After hearing this, Liu Zhicheng was delighted. He didn't expect Qiu De to be so straightforward.

Perhaps he had seen the possibility of losing both.

ATV will be his sooner or later, so Liu Zhicheng certainly has no problem with that.

Soon, Shanfeng Investment officially took over Far Eastern Bank. Liu Zhicheng abandoned the original management model and introduced the management methods of Western banks.

Most of the Chinese banks in Hong Kong are family-managed. In order to completely control Far Eastern Bank, Liu Zhicheng made major adjustments to its management team.

We also hire foreign banking elites as consultants to help it develop in a healthier and more international way.

Moreover, Liu Zhicheng will ask banks to add ATM machines, realize automatic withdrawals, and set up ATM bank branches.

Of course, most of the management are still Chinese, because Far Eastern Bank is still located in the tiny country of Hong Kong, and the vast majority of its customers are Chinese.

The next step for Liu Zhicheng is to increase his shareholding and increase investment to allow it to develop rapidly and embark on the road of expansion.

At this point, Liu Bancheng's business puzzle had one more piece, and the Liu Group had begun to take shape.

(End of this chapter)