money player

"Hutchison's Qi Dezun invited my sister to afternoon tea a few times to discuss the acquisition of shares in the Cassidy and Pierce families."

"The Pierce family also wants to sell their shares?"

"Yes."

What percentage of the shares do you own?

"6%."

"What about the Cassidy family?"

"12%."

"What about the other shareholders?"

"Hutchison's largest shareholder is currently Wheelock, with Wheelock Hong Kong holding 50%, Wheelock Group London holding 10%, other British-owned shares held by directors holding 10%, and public shares at approximately 12%, of which Chi Tak-chung personally holds approximately 0.3%."

Sin Yiu-man asked in surprise, "When did Wheelock acquire the shares in London?"

“Since the beginning of this year, Wheelock Group in London has been secretly absorbing shares from minority shareholders and public shareholders, and stopped after absorbing 10% in mid-July. According to Qi Dezun, he only learned about this last month.”

Sin Yiu-man lightly touched his chin with his fingertips and said calmly, "Does Wheelock really have the power to control everything on the board of directors of Hutchison Whampoa?"

He asked this question because Hutchison is not a publicly traded company. Legally, it is permissible to secretly acquire shares without informing the board of directors, but in practice, companies like Hutchison usually have their own bylaws.

The first is the right of first refusal. If a shareholder wants to sell shares, they must first ask the board of directors. Only if the company does not want to buy can the shares be sold to an external party.

Secondly, there are restrictions on transfer. Share transfers must be approved by the board of directors and can be refused without reason. Privately signed contracts are invalid without the approval of the board of directors.

As the largest shareholder, Wheelock has veto power and the ability to forcefully push through acquisitions, but it cannot avoid informing the board of directors no matter what.

Of course, informing others can be malicious; it's also reasonable to handle things privately first and then announce them only when it's necessary to make them public.

If Wheelock intended to conceal the truth from Mr. Chi Tak-chun, theoretically, he could have kept it a secret until Mr. Chi was unaware. However, Mr. Chi Tak-chun had ambitions to become the taipan of Hutchison Whampoa, and he would certainly have secretly cultivated relationships with minority shareholders. In a society based on personal connections, there are no truly airtight secrets.

Liao Kexin shook her head gently, her tone frank: "I'm not too sure about that. My younger sister said that if what Qi Dezun said is true, then he's not worth helping; it's more likely that he's lying, probably because his efforts to gain support from Wheelock haven't been successful."

“It’s not just possible, it’s definitely going to be difficult.” Sin Yiu-man said with certainty, “Qi Dezun has yet to demonstrate any value that would garner the full support of Madden and his son. He still has a long way to go.”

"What if we take over Hutchison?"

“Taking over is impossible.” Sin Yiu-man shook his head. “Hutchison’s core business is entrepot trade, mainly dealing in the import and export of British-made cloth, Southeast Asian rubber and various groceries. Its shipping routes cover Hong Kong to Southeast Asia and Taiwan. Currently, the profits are mediocre.”

The real ballast is its warehousing real estate business, including two office buildings in Central and Sheung Wan, three warehouses in Wharf and Hung Hom, a small warehouse and wharf in Aberdeen, plus a small amount of farmland and industrial land in the New Territories. These assets combined generate an annual rental income of approximately HK$150,000.

Other notable holdings include various equity investments and joint venture shares: a small stake in Wheelock Properties, equity in two textile factories, and minor stakes in Watsons, Tak Wai Po, and other companies.

He paused briefly, then continued, "The only assets I truly value are these ballast assets, which will undoubtedly be valuable in the long run. However, we are under pressure to achieve short-term returns. Before securing a high-return project, we cannot make large bets on long-term strategies. For now, we can only act pragmatically."

"You're not planning to help Qi Dezun?" Liao Kexin asked, puzzled.

My younger sister had mentioned to her before that her brother-in-law originally intended to help Qi Dezun.

“I will definitely help him.” Sin Yiu Man’s tone was calm but firm. “After all, I have known Qi Dezun for a long time, and we should still show him some respect. But how much I can help depends on his own abilities and how much he values ​​friendship.”

He paused slightly, his eyes darkening, and added, "However, one thing must be made clear: no matter what the final outcome, Jin Fugui Holdings will not be able to take over Hutchison; it can only join."

Liao Kexin couldn't help but show a look of regret, "If you had taken over Hutchison, your reputation would have reached new heights."

"What reputation? Reputation within the Chinese community?" Sin Yiu-man smiled faintly, his tone calm yet carrying a hint of deeper meaning. "Sister-in-law, I am a first-class citizen of Great Britain."

He paused, then continued, "King George VI has already stepped down, and Princess Elizabeth is handling official duties on her father's behalf, exercising the powers of a quasi-monarch. In a few months at most, I will have to prepare a huge sum of money to hold a grand celebration for the Queen's accession to the throne."

Liao Kexin was taken aback upon hearing this, then realized what was happening and asked in a low voice, "King George VI's body... can't hold on anymore?"

"Yes, he just had major lung surgery, and his condition is very bad. He basically doesn't have much time left."

Liao Kexin's heart skipped a beat, and for a moment she didn't know what to say. She simply nodded slightly, a complex look flashing in her eyes. She was shocked that things were about to change, and she really couldn't understand why Xian Yaowen would express his pro-British stance so openly.

Seeing that she remained silent, Xian Yaowen looked up at her and asked calmly, "Is there anything else you need to tell me?"

“That’s all.” Liao Kexin shook her head gently. “The others haven’t shown any value in continued monitoring yet.”

"Okay." Sin Yiu-man nodded slightly, then turned to look at Judy on the other side, "Is your stomach still bloated?"

Judy turned her gaze away from the window and said softly, "Much better."

“The hotel should have honey water. If you’re still not feeling well, have a glass to calm down,” Sin Yiu-man said gently. “We’re not in a hurry. We can go into the banquet hall later.”

"It's okay, we can just go in."

"OK."

Fifteen minutes before five o'clock, the car came to a steady stop in front of the Gloucester Hotel.

Judy gently took Sin Yiu-man's arm, and Liao Kexin followed slowly behind them. The three of them entered the hotel lobby, two in front and one behind.

The reception was held in the Gloucester Hall on the second floor, but the hall was packed with people, and Chinese men in suits were weaving through the crowd with wine glasses in their hands.

Their eyes were fixed on the British business tycoons in dark suits and bow ties. Once they spotted one, they would immediately approach him, hand him their business card, and then introduce their factory and products in broken English.

In a corner, several young Chinese people were discussing something in hushed tones, taking notes in their notebooks.

In the past, the trading companies in Hong Kong were not ordinary trading firms, but rather commercial agents and institutional implementers of the British colonial empire in the Far East. Their existence was based on the structural divide between the two parallel worlds of China and Britain, and the comprehensive privileges granted by British colonial rule.

After World War II, Britain probably exposed itself as a paper tiger, and the privileges of trading companies were no longer so exaggerated. After 1945, the most solid foundation of privileges on which trading companies relied for survival collapsed, but the trading companies did not decline significantly because they held the market.

Foreign firms that are worthy of being mentioned often have existed for centuries. A century of time and the efforts of several generations are enough to make them seem like air in the market—inconspicuous, but indispensable.

A hundred years ago, Chinese merchants were at odds with merchants from around the world, as they did not follow the same set of theories. Chinese merchant society based its credit on "personal relationships and clan ties," which was not something that merchants from around the world could directly assess. A "credit converter" was needed between the two.

For this reason, the Qing government granted a special permit to a foreign trade intermediary—the comprador—at the Thirteen Factories in Guangzhou. British merchants found this system quite useful and introduced the mature comprador system to Hong Kong, making it a standard feature of foreign firms' operations.

Regardless of the praise or criticism of the comprador group, it cannot erase the positive role that compradors played in promoting China's foreign trade over the past century. Or, to put it more absolutely, there would be no foreign trade without compradors.

Chinese merchants were like overgrown children, spoiled by compradors in the past. Once they left the compradors, they neither understood nor dared to sell their products to the outside world.

Compradors are businessmen, and generally they are ruthless. As intermediaries, they take the lion's share of the profits, much more than Chinese merchants. Perhaps that's why some Chinese merchants curse the compradors' ancestors as soon as they put down their chopsticks, only saying bad things and never good things.

If we only consider one side of the story, it's like only mentioning Huo Qubing's status as a maternal relative, his arrogance, his narrow-minded pursuit of family interests, his disregard for human life, and his killing of Li Gan, who didn't deserve to die, for his uncle's sake.

He disregarded the soldiers' suffering. When food was scarce in the border regions and the soldiers were so hungry they could not stand up, he still ordered them to build a field to play football for fun, completely disregarding their lives.

He lived a life of luxury, bringing his own cook and gourmet food with him when he went to war, a stark contrast to the austere lives of ordinary soldiers.

He wasted the imperial supplies. Emperor Wu of Han sent dozens of carts of fine wine and delicacies to accompany the army, but after the battle, he let the food rot and be thrown away, while the soldiers went hungry.

he……

Huo Qubing has too many flaws. If it weren't for the "Langjuxu" poem covering up all his crimes, whoever beheaded him would at least have earned the title of "Upright Official." It's fortunate he died young, otherwise the women in his household would have suffered terribly, and they would have been used as pawns to boost morale by the executioners.

Leaving aside whether compradors are good or bad, the comprador group in Hong Kong today is in a state of double contradiction:
On the one hand, the embargo brought its power and profits to an all-time high, making it the "only key" to Sino-foreign trade.

On the other hand, the loosening of the colonial system and the rise of Chinese merchants have sown the seeds of institutional collapse, and compradors are in a transitional period from hereditary monopoly to professional services.

The Hong Kong government has no explicit regulations or unspoken rules prohibiting Chinese businesses from exporting directly. As long as you pay taxes, they would love for you to export more.

But exporting isn't something you can do just because you want to. First of all, Chinese merchants were trapped in the comfort zone of being compradors, making money while complaining and living a carefree life. If it weren't for certain factors affecting the situation, their business in the mainland had reached its limit, and the entrepot trade was sluggish, so traders flocked to transform into industrialists. Seeing that they were about to starve if they continued to lie around, they wouldn't risk giving up their good days.

Secondly, to do export business, you need to go out and contact customers. You can overcome language barriers and unfamiliar roads by enduring some hardships. Even if you suffer a few losses or are cheated a few times, you can still reach real customers and even reach an agreement directly, thus getting through the "difficult start" period.

However, this is only the beginning of the hardship. There are still many pitfalls waiting to be encountered, such as credit, payment, freight, and sudden changes in market conditions. If any link goes wrong, it may lead to a pit that you can never recover from.

Besides, you're quite bold, daring to linger by the smell of blood at the card table. Is it too much for the foreign firm sitting at the card table to deal with potential competitors?
The Western Christmas shopping season is about to begin. Foreign firms use cocktail parties to connect orders and release demand information. Leaders of Chinese businesses naturally receive invitations to go directly to the Gloucester Hall on the second floor. Those who are willing to spend money can spend a lot of money to get an invitation to enter the hall. Those who are unwilling or unable to spend money can stand together and kowtow to the hotel owner to thank them for making money from everything.

Today, the lobby is also a banquet hall. If you stand here in a suit and leather shoes, you have to pay for drinks, try to get an order, and have an opportunity to make connections with compradors.

Xian Yaowen looked around, roughly surveying the scene, then turned to Liao Kexin and casually asked, "Sister-in-law, how much should we pay for the drinks tonight?"

One hundred dollars.

Is it expensive?

"Expensive." Liao Kexin sighed softly, "Business is tough for everyone in the second half of the year, and the cost of alcohol has doubled."

"Oh."

Before Sin Yiu-man could turn his head, his eyes caught sight of Michelle walking in through the front door, all alone, without any male companions.

He whispered "Let go" to Judy, then quickly went to meet Michelle, opened his arms, and gave her a hug. "Sweetheart, you got a promotion?"

Michelle rolled her eyes. "Adam, are we that close?"

"Seven-tenths cooked, just right." Sin Yiu-man released Michelle, raising his gaze slightly. "Are you a representative of HSBC?"

“No.” Michelle straightened her dress, then looked up past Sin Yiu-man and at Judy. “Miss Montagu?”

"Yes, she came to my brother's wedding."

Michelle looked at him with a half-smile. "Attending Victor's wedding?"

Xian Yaowu's decision to take two young ladies as concubines at once caused a great stir throughout the city, and it all seemed strangely unsettling. Rumors swirled, various speculations circulated, and the truth was gradually revealed.

In essence, matters between men and women boil down to why, when, and where they do it. If everything is reasonable, it becomes a romantic love story; if anything goes wrong, it becomes an irreparable disaster.

Sin Yiu-man shrugged, looking helpless, and said, "Is it too late for me to verbally invite you to the banquet now?"

"Thank you," Michelle said with amusement. "I'm fine with going to your place anytime, but I don't want to go tomorrow."

Sin Yiu-man shrugged indifferently: "My flight is the day after tomorrow morning. When is a convenient time for you?"

Michelle's expression suddenly turned serious as she looked directly at him: "Tonight?"

“Not tonight,” Xian Yaowen said calmly. “I need to go back and be with Ruoyunna.”

"Call me anytime tomorrow."

"OK." Sin Yiu-man gestured behind him. "See you later."

After saying that, she turned around and went back to Judy's side. The three of them walked through the noisy lobby and headed towards the stairwell.

Without an invitation, Liao Kexin simply used her facial recognition to bring people into the Gloucester Hall.

The party had already begun, and the hall was bustling with people, yet it presented a refreshing division of social circles.

On the east side, in the area with genuine leather sofas, gathered the executives of British trading companies. They were dressed in dark, custom-made suits, with silk bow ties, and holding stemmed glasses filled with amber-colored whiskey. They spoke in English at a measured pace, occasionally interspersed with a few words of French.

An Irishman, John Keswick, sat at the head of the table, a half-burnt cigar between his fingers, his brow slightly furrowed, listening to what the people from Swire Trading Company were saying.

The Keswick family is the current de facto controller of Jardine Matheson. John Keswick went to Shanghai at the beginning of the year to handle the business there and just returned to Hong Kong at the end of last month. Upon his return, he officially succeeded David Landoo as the new mastermind of Jardine Matheson.

Behind them, waiters in white uniforms stood ready to refill their drinks, their expressions respectful and their distance appropriate.

The central area of ​​the banquet hall was the most crowded, almost entirely occupied by Chinese businesspeople.

Most of them held slightly wrinkled business cards, their eyes scanning the crowd precisely, their core target being the comprador group surrounded by the crowd.

These compradors were the most recognizable figures in the hall, their attire displaying a distinct blend of Chinese and Western styles: some wore Western suits with Chinese mandarin jackets, while others wore shirts with silk bow ties. They could communicate fluently with the managers of foreign firms in English, and also turn around and chat with Chinese merchants in Cantonese with ease, their tone carrying an air of superior composure.

Suddenly, Sin Yiu-man's gaze as he looked around was blocked by someone. Su Lai-zhen picked up a cocktail from the waiter's tray and slowly walked up to him.

She raised her glass, deliberately avoiding the lipstick on her lips, tilted her head slightly, and took a small sip of the wine. Then, she handed the glass to Xian Yaowen, "Sir, would you mind sharing a drink with me?"

Sin Yiu-man took the wine glass and chuckled, "I don't mind sharing a bed with you. Why are you here so early?"

"Sir, have you ever heard of Beutron buttons?"

"An Australian brand?"

Su Lizhen nodded: "G. Herring, the operator of Beutron, sent a representative to Hong Kong to look for OEM cooperation. I am entertaining him."

"How did the talks go?"

"It's going fairly smoothly. The other party plans to find a factory to cooperate with for OEM manufacturing first, and may build a factory directly in Hong Kong later. I am trying to talk about a joint venture."

As she spoke, Su Lizhen gestured with her chin toward a British man not far away, "This guy is watching too."

Sin Yiu-man glanced in the direction she pointed and saw a middle-aged man with a sullen air about him. He recognized him as Henry John Goyle, the founder of Goyle & Co.

Gao Yi Hang was only established last year. Its main business is the import and export trade of commodities such as pharmaceuticals, chemicals, fabrics, yarns and metals. It also has its sights set on plastic products, and its main market is Australia.

"Considering his achievements, don't be too ruthless."

Gao Yi was born in Darjeeling, India. After graduating from Oxford University, she worked for Swire Group until she joined the British Indian Army in 1940.

In 1944, having been promoted to major of the 5th Cavalry Regiment, he led the British Army Assistance Team into the Battle of Guilin-Liuzhou, successfully destroying all the road bridges within a range of about forty miles northeast of Guilin.

This operation effectively slowed down the Japanese offensive and bought valuable time for the Allied air force to safely evacuate from Guilin and Liuzhou.

“He shouldn’t be eyeing plastic products.” Su Lizhen whispered close to Xian Yaowen’s ear, “Gao Yixing will affect my position in the plastics industry. I plan to set up a trading company in Sydney and give Gao Yixing an order.”

"We're all seasoned foxes; who hasn't played the game of Strange Tales from a Chinese Studio? Gao Yi has worked at Taikoo for many years, and his two partners are not simple either; they're not easy to deal with. Be careful."

"I will be fully prepared and only take action when I am absolutely certain."

"Hmm." Xian Yaowen nodded slightly. "Madam Xian, I'm going for a walk. Excuse me."

"Shall we go back together later?"

"It depends." Xian Yaowen leaned down and kissed Su Lizhen on the cheek. "Who are you going to see later?"

Su Lizhen raised her hand and gently straightened his collar, replying softly, "I'm going to see Tang Chuheng, the chief comprador of HSBC. HSBC has established a Chinese business department, and the compradors have gone from being the main investors to intermediaries. They must feel a sense of loss. I need to go and visit the old man."

There has always been a business relationship between HSBC and Chinese businesses, but they did not have a direct connection in the past. Instead, the comprador acted as a kind of online lending app, while the comprador acted as a small regional bank, acting as a financier for the comprador.

For every transaction, the comprador had to provide a guarantee. If the Chinese merchant couldn't repay the money, HSBC would only ask the comprador for the money, not the Chinese merchant. The comprador bore high risks and also earned high interest spreads.

Once the Chinese business department was established, compradors became similar to credit managers or credit intermediaries, responsible for client referrals, credit investigations, paperwork, and local clearing, while the loan approval authority was in the hands of HSBC.

The income has changed from earning interest spreads legitimately to a fixed salary plus dividends, and there are also hidden fees charged to Chinese businessmen.

Well, there are only transaction fees, and probably nothing else fancy. After all, it takes decades of experience to become a deputy comprador at HSBC. Take Tang Chuheng, for example; he seems to be almost seventy this year.

"Is Tang Chuheng getting too old to work anymore?"

"I saw him a few days ago; he didn't look well. I have a meeting tomorrow afternoon with Li Shunhua to play cards."

The occasion was inappropriate, so Sin Yiu-man forcefully suppressed the urge to pat Su Li-zhen's plump buttocks. "Madam Sin's eyes are truly beautiful, and she can see far."

Su Lizhen's eyes flickered, and she raised her hand to lightly tap his chest with her fingertip, chuckling softly, "Isn't it all for the sake of our Xian family? They don't see far enough ahead, and sooner or later they'll be devoured without even leaving a bone."

"Fine, you go beat the little devil, I'll go see the King of Hell."

As soon as he finished speaking, Sin Yiu-man, holding his wine glass, walked to the right. He had only taken a few steps when he ran into Michel again. He formally introduced Judy to him, then excused himself to meet the other guests.

Before they could even meet any outsiders, Xiao Jingyue, the very special manager of the trading company Jinji, came over. The two chatted for a few minutes and clarified their division of labor—he wouldn't wear the label of Jinji on his forehead, but would only use the banner of the actual person in charge of Jinfugui Holdings.

There are several opinions about the four major trading houses in Hong Kong. Some say that Kam Kwai Trading Co. squeezed out Hutchison Whampoa or Wheelock and became one of the four.

But he dismissed such claims, saying that Golden Season Trading was more than enough to be compared to other British conglomerates such as HSBC, Barclays, Lloyds, Westminster, and Rothschild.

Opinions have been divided on the four major trading houses in Hong Kong recently. Some say that King's Company was capable of squeezing out Hutchison Whampoa or replacing Wheelock and joining the ranks of the four.

But he has always been dismissive of this, as the Golden Season Trade alone is enough to rival it.

The real rivals of Golden Company were never the local Hong Kong trading companies, but rather the top British conglomerates—HSBC, Barclays, Lloyds, Westminster, and even the Rothschilds.

After bidding farewell to Xiao Jingyue, he looked around the entire Gloucester Hall again and saw that all the people worth getting to know were busy socializing. He then turned and walked towards the smoking area, which was reserved for people to have a moment of peace.

Smoking was not prohibited in the lobby, and the smoking area was empty. He leaned against the windowsill and looked up at Liao Kexin, who had been following behind him.

"Sister-in-law, let's talk for a bit." (End of Chapter)