The Wealth Empire Crossing the Hong Kong

Chapter 208 Dividing up small and medium banks
Wing On, Xin Jian, Dao Heng, and the four major banks of East Asia held a joint press conference, especially Xin Jian Group deposited [-] million Hong Kong dollars into Wing On Bank, which completely brought Yong On out of the predicament.

Because of the example of Yongan, 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 can only be the younger brothers, and many times the development will no longer be in their own hands.

It's just that the current situation can no longer allow them to go on like this. It is better to lose the initiative in development than bank failure.

As the boss of the pure Chinese consortium, the Donghua consortium was undoubtedly the one who came to him the most, but it was a pity that Li Jianhui shirked all of them and did not meet him.

However, as Li Jianhui's two pawns, Yuntao Investment Company and Xingsha Investment Company moved.

Lanfeng Investment has not been idle either. They are also planning to seize the controlling stake in a bank with such a good opportunity.

Li Jianhui's unwillingness to accept this did not mean that the other major consortiums did 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 Xianghua consortium did not stop either. Wharf issued an announcement that the group would acquire 60% of the shares of Connian Bank.

On the other side, Hong Kong Asian Commercial Bank, Far East Bank and Guangxin Bank hold cross-shareholdings in New Asia, and provide cash support to Guangxin Bank at the same time.

On the one hand, the citizens are running out of cash and the HKMA wants to take over forcefully. On the other hand, banks are joining several major consortiums to tide over the crisis.

This makes those bank shareholders who still have a little hesitation in their hearts completely unable to sit still. Even if they sell them, they must find a way to find a force that can help their bank tide over the difficulties.

Under such circumstances, Yuntao Investment, Xingsha Investment, and even Lanfeng Investment moved smoothly.

All three of these banks only need controlling shares, and the current management is still in charge of the usual management. Under normal circumstances, they will not intervene. This kind of commitment makes these bank shareholders willing to sell their shares to several major investment companies.

Yuntao Investment Company spent 2.45 million Hong Kong dollars to acquire 65% of the shares of Union Bank, because this is the valuation price after financing, so this money belongs to the bank's assets, and it is also the guarantee to help Ka Wah Bank survive this crisis.

In the same way, Xingsha Investment acquired 3.15% of the shares of Ka Wah Bank for 67 million Hong Kong dollars, and Lanfeng Investment acquired 1.95% of the shares of Xingchuang Bank for 65 million Hong Kong dollars.

Li Jianhui was very happy to receive the report in the office, which means that his layout has taken a big step forward.

"Jianhui, according to the news, several other forces are also making frequent moves. In the afternoon, many banks have received capital investment from several major consortiums, and several banks have even been directly wholly acquired."

In the past few days, Zhou Jiayi has been thinking about what will happen if this continues, and what kind of situation will become in the future.

It was department store retail before, but this time it is finance. If this continues, there will be fewer and fewer industries and opportunities for the bottom to rise.

It was hard for her to imagine that if she hadn't joined the Xinjian Department, what chance would her children have to rise in the future.

As time goes by, all walks of life will be dominated or even monopolized by the five major consortiums, and the bottom-level citizens can only work for the five major forces.

However, from the standpoint of the Xinjian Department, Zhou Jiayi absolutely does not think there is anything wrong with Li Jianhui and the Xinjian Department. The larger the market that the Xinjian Department occupies or even monopolizes, the higher the profits it will get.

Li Jianhui doesn't have as many thoughts as the beautiful woman next to him, and he should do whatever he sits on.

Even if he doesn't want to monopolize, his opponents also want to monopolize. For his own development, he can only accelerate the company's progress.

Moreover, Li Jianhui feels that he has done a lot of good deeds this time. Through the reduction of small and medium-sized banks this time, the bank turmoil in the 80s in the previous life will not recur, and the losses of many citizens have been reduced.

The problem before Xiangjiang was that there were too many small and medium-sized banks, and some banks even had only two or three business outlets, 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 backed by strong capital. When there is a crisis, these capitals can guarantee the normal operation of the bank.

Since Zhou Jiayi was pregnant, it was inconvenient to accompany Li Jianhui to the evening dinner, so Li Jianhui sent her home on purpose before heading towards Xinhui Hotel.

This is a very celebratory day for the Tung Wah Association, and it is the first time that new members have been added since its establishment.

Members have also increased from the previous five to thirteen. 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 big families that Li Jianhui has attracted in Southeast Asia, Malay Sunway Holdings Xie Funian, Indonesian Lippo Group Li Wenzheng, Pacific Timber Company Peng Yunpeng, Thailand TC Pharmaceutical Factory (Red Bull) Xu Shubiao.

The slightly famous ancestral home in the Philippines are all from Fujian Province, and they have a pretty good relationship with the Nanyang Consortium. Although Li Jianhui also found a few cooperation partners with ancestral home from other regions, they are all similar to Cai Junxiong, and their strength is too weak. He intends to bring it to Donghuahui.

For Li Jianhui on this day, apart from the increase in the membership of the Tung Wah Club, he only paid a little attention to his career during the day.

However, March 3th is destined to be remembered by history. From this day onwards, the Hong Kong banking industry has been monopolized by several major banks.

According to subsequent statistics, on that day alone, as many as 16 major shareholders of banks changed.

From this day on, Xiangjiang Local Bank either belongs to the five major consortiums or is controlled by foreign capital.

Among them, the typical representatives controlled by foreign capital are Xingchuang Bank, Ka Wah Bank, Union Bank, Guangqing Bank, and Dean Bank.

The shareholders behind Xingchuang, Jiahua, and Youlian are closely related to the Donghua Consortium. Behind Guangqing Bank is the Hong Leong Group, a core member of the Nanyang Consortium, and has a good relationship with the United Consortium. The shareholder behind Dean Bank is CITIC. The Hua 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 the deliberate coercion of the HKMA.

As a financial manager, these small and medium-sized banks have not reserved relatively sufficient time to solve the difficulties faced by the banks.

In order not to be taken over by force, 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 own banks directly.

Many scholars also conducted in-depth analysis, believing that this was an incident planned by several major consortiums and facilitated 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 led to the fact that Hong Kong local banks belonged to the five major financial groups in the following decades, and no new local banks emerged.

However, some scholars have also affirmed the positive meaning. It was the strong takeover of the HKMA and the entry of several major capitals that calmed down the run on the bank and resolved a financial crisis, allowing Hong Kong’s economy to continue to maintain rapid development.

(End of this chapter)