The Red Era: Living in Seclusion in a Siheyuan as a Boss

Chapter 618 Three Families Join Forces!!!

One day in September 9, a very important meeting in Hong Kong's business history took place at the Mandarin Hotel in Central.

That morning, Liu Shudong, chairman of "Liu's Overseas Investment", received a call at home.

The other party was a well-known figure in Hong Kong's business community, and he wanted to invite Liu Shudong to a meeting.

Liu Shudong just thought that he had only met this person a few times and they had no friendship at all, so why did he suddenly invite him to meet so solemnly? There must be something extremely important to discuss.

The person who made an appointment with Liu Shudong was Li Jiacheng.

When Liu Shudong arrived at the Mandarin Hotel in Central quietly with light luggage, he was surprised to find that Li Jiacheng had been waiting for him in the reception room for a long time.

"It is an honor to have you here, Mr. Liu!" Li Jiacheng walked quickly forward with a sincere smile on his face and a hint of respect in his tone.

The reason why this business tycoon showed such courtesy to Liu Shudong could be traced back to the thrilling discovery a week ago.

At that time, Li Jiacheng keenly noticed that there were two mysterious funds in the stock market that were secretly absorbing the shares of "Hutchison Whampoa".

After an in-depth investigation, he found that one of the funds came from the famous Hong Kong shipping tycoon Bao Yugang, while the other seemed to have suddenly appeared out of nowhere.

Li Jiacheng, who has always been cautious, immediately mobilized his elite troops and focused on investigating the financial company called "Liu's Overseas Investment".

After peeling off the layers, a shocking truth gradually surfaced.
Li Jiacheng originally thought that this unknown financial company was just a small fish or shrimp, and he could easily control it with his own skills and make the other party retreat.

However, the results of the investigation were beyond his expectations - when the truth came to light, the business tycoon broke out in a cold sweat.

This "Liu's Overseas Investment" is no small role at all, it is clearly a giant crocodile lurking in the deep sea of ​​finance.

What is even more shocking is that "Liu Overseas" not only secretly holds shares in "Wharf Holdings", but is also quietly eroding the equity of many listed companies in Hong Kong.

What made Li Jiacheng most uneasy was that even Hutchison Whampoa, which he regarded as a sure thing, had already been included in the acquisition list of this mysterious company.

If it is said that Li Jiacheng is very optimistic about the future prospects of "Hutchison Whampoa" and is therefore quietly making plans in secret.

Then "Hutchison Whampoa" is the foundation of his career that he has always dreamed of.

In order to take over Hutchison Whampoa, Li Jiacheng spent countless efforts and paid a heavy price.

How dare someone snatch food from a tiger's mouth? This made him both shocked and angry!
However, after calm reflection, Li Jiacheng realized that it was not appropriate to completely break with this mysterious and powerful "Liu's Overseas Investment".

After all, he was also unwilling to reveal his intentions towards Hutchison Whampoa too early, so as not to alarm the powerful Y-capital consortium behind it.

In the 70s, Hong Kong's business world was almost dominated by Y-capital companies. Although H-capital had emerged, it was still no match for Y-capital.

The five largest private-funded conglomerates in Hong Kong are extremely powerful, namely HSBC, Jardine Matheson, Swire, Wheelock and Hutchison Whampoa.

Among them, the Jardine Matheson Group has two large companies under its umbrella, namely, Hongkong Land and Wharf Holdings.

At that time, Hutchison Whampoa was one of the most important listed companies in Hong Kong with a very high market value. Its basic businesses included real estate, transportation, hotels, docks, etc.

If managed properly, according to its potential, Wharf Holdings would surely have great potential and made huge profits. However, the problem lay in Wharf Holdings' management at the time. Because it was too conservative, the share price did not rise significantly despite the improvement of Hong Kong's economy.

It is for this reason that Hutchison Whampoa, controlled by Y capital, has gradually become the coveted object of emerging H capital such as Li Jiacheng and Bao Yugang.

After careful consideration, Li Jiacheng keenly realized that if the three major H-capital forces were allowed to fight each other, it would only benefit the Y-capital in the end, and it would also expose their intentions, thus arousing the vigilance of the Y-capital.

The business tycoon acted decisively and decided to strike first.

He first met with Bao Yugang, the shipping tycoon with whom he had a good relationship.

In a private club on the shore of Victoria Harbour, Li Jiacheng analyzed the situation frankly: "Brother Bao, rather than both sides suffering losses, why don't we join forces? I am willing to sell 2000 million shares of 'Wharf' at the market price." He tapped the mahogany table and added with a piercing look: "But there is a condition - we must form a strategic alliance to jointly deal with the mysterious 'Liu Overseas Investment'."

Bao Yugang understood what he meant. The old shipping magnate, who had traveled all over the world, immediately clapped his hands and praised: "Brother Li, this is a good idea! This way I can take over 'Kowloon Wharf' and help you compete for 'Hutchison Whampoa'. It's really a win-win solution." The two raised their glasses to celebrate, and a powerful alliance that could rewrite the business landscape of Hong Kong was achieved.

After Li Jiacheng and Bao Yugang finalized the cooperation agreement, they felt that the sooner the better and the later the action must be taken immediately to prevent any complications.

So, Li Jiacheng quickly called the private mobile phone of Liu Shudong, chairman of "Liu's Overseas Investment Group".

It was this crucial contact that facilitated Liu Shudong's personal visit to the Mandarin Hotel for a business meeting the next day.

"Mr. Liu, I have the honor to introduce you to Mr. Bao Yugang, a shipping magnate who is well-known in Hong Kong.

Brother Bao, the young talent standing in front of you is Mr. Liu Shudong, the helmsman of Liu's Overseas Investment! "

When Li Jiacheng saw Liu Shudong arrive on time, a glimmer of relief flashed in his eyes.

He thought to himself: Doesn’t the fact that this meeting has gotten off to such a smooth start indicate a bright future for successful cooperation?

"Mr. Liu, I have heard of your great name for a long time. It is a great honor to meet you today!"

"Mr. Bao, you are too polite. You are the leader in the business world. I have admired you for a long time!"

Seeing this, Li Jiacheng quickly smiled and tried to smooth things over: "You two are both honored guests, why don't you take a seat and talk in detail?"

Liu Shudong and Bao Yugang looked at each other in tacit understanding and said in unison: "Obedience is worse than respect!"

"Please take a seat!"

"After you!"

After the host and the guests were seated, Bao Yugang carefully looked at Liu Shudong sitting opposite him and was secretly surprised: this young man had an extraordinary bearing, and his every move revealed a calmness that was inconsistent with his age.

He couldn't help but think to himself: "Looking at this guy's appearance, he might not even be thirty years old?

I don’t know which famous family he comes from, and why have I never heard of him in the business world?

When did such a young and promising Liu emerge in the Southeast Asian Chinese community? "

Bao and Li looked at Liu Shudong carefully. They saw that he was sipping tea calmly, and his every move showed his composure.

Liu Shudong was thinking to himself: What was the purpose of these two business tycoons' sudden invitation?
"Mr. Liu, excuse me for asking, where is your paradise?" Bao Yugang asked in a gentle tone with a warm smile on his face.

Liu Shudong put down the celadon teacup gracefully and replied calmly, "Mr. Bao, you are too polite. I am from Yanjing and have just come to Hong Kong to develop my career. I hope you two seniors can support me in the future."

"You're from Yanjing in the mainland?" Li Jiacheng's pupils shrank slightly when he heard this, and a hint of surprise flashed in his eyes. Then he whispered thoughtfully: "To have such a foundation in Hong Kong, could it be..."

Bao Yugang was also shocked when he heard this. Nowadays, people from the mainland who come to Hong Kong are all ordinary people from the bottom of society.

As for Liu Shudong, he was like a fierce dragon crossing the river. Could he be an ordinary person? Could he be...

Obviously, Bao and Li had completely lost their minds at that time.

Come to think of it, in the 1970s when materials were scarce, how could a private domestic individual have such a huge amount of funds? Moreover, Liu Shudong claimed that he was from Yenching.

The two exchanged a meaningful look and simultaneously put away their previous contempt.

They realized that the young man in front of them was no ordinary person and they had to adjust their strategy.

Originally, the two of them planned to rely on the deep-rooted power of the Bao and Li families in Hong Kong to jointly put pressure on Liu Shudong.

Although the financial strength of the Liu Group may be far beyond their imagination, it may even exceed the sum of the Bao and Li families.

But Bao and Li are, after all, old-established forces in Hong Kong's business community. They have been operating here for many years, and their intricate network of personal connections and deep political and business relations are by no means comparable to Liu Shudong, a "dragon from across the river" who has just arrived.

What’s the use of having money? There are many things that cannot be solved by money.

If they offended these H-capital, even the foreigners would have to think twice, let alone Liu Shudong, an outsider.

……

"Mr. Liu, is your company also interested in 'Wharf Holdings'?" Without further ado, Li Jiacheng could not help but state his purpose.

"So that's it!" Liu Shudong's eyes flashed with enlightenment, and his mind suddenly became clear - he finally understood the real intention of Li Jiacheng and the others' invitation. In fact, Liu Shudong's recent series of actions in the capital market include secretly absorbing Hong Kong blue-chip stocks such as Wharf Holdings, Hutchison Whampoa, Cheung Kong Holdings, Hong Kong Electric, Hong Kong Land, Swire, China Gas, and Cathay Pacific.

Behind all of this, there is only one person’s strategic planning - his eldest brother, Liu Zhiye, the helmsman of the Liu family.

As early as the beginning of the layout, Liu Zhiye specifically reminded Liu Shudong: "The acquisition of companies such as Wharf Holdings, Hutchison Whampoa, and Cheung Kong Holdings must be extremely cautious, and you must pay attention to the reactions of Hong Kong H-funded giants such as Bao Yugang and Li Jiacheng."

This is a meaningful reminder. Now thinking about it, it seems that my elder brother Liu Zhiye foresaw the current situation so accurately.

Liu Shudong saw through the true intentions of Bao and Li, raised a calm smile, and said slowly: "Since you two asked, I might as well speak frankly.

Our company is indeed very interested in 'Wharf'.

In my opinion, the current market value of Wharf Holdings is clearly underestimated. This enterprise has unique geographical advantages and huge development potential, and will surely have a broader development space in the future.”

Sure enough, great minds think alike! These three business elites are all discerning people, and none of them is easy to deal with.

Bao Yugang leaned forward slightly, a shrewd light flashing in his eyes, and cautiously asked: "Excuse me, I wonder if your company is determined to acquire 'Wharf' and want to have complete control, or is it just a financial investment?"

Upon hearing this, Liu Shudong raised a meaningful smile and asked slowly: "Oh? What if it's a controlling stake? What if it's a financial investment?" His fingers tapped lightly on the table, and his eyes revealed a sophistication that didn't match his age.

Li Jiacheng raised his lips slightly, revealing a meaningful smile: "Mr. Liu, to be honest, our Li family is also determined to get the fat piece of meat of 'Kowloon Wharf'.

However, the current situation is delicate. If the three companies take action at the same time, it will inevitably trigger a fierce battle, which will not only hurt the harmony between the two parties, but may also allow those foreign capitals who are eyeing them to reap the benefits.

In my opinion, why don't the three of us join forces to fight against those foreign capital guys?"

"This proposal is not unfeasible, but the three of us are all eyeing the fat piece of meat of 'Kowloon Wharf'. How should we distribute the benefits appropriately?" Liu Shudong frowned slightly, with a hint of hesitation in his tone.

Li Jiacheng had a meaningful smile on his face and continued to probe: "Mr. Liu, as far as I know, you seem to be quite interested in Hutchison Whampoa?
Even our Cheung Kong Group is part of your plan?"

Liu Shudong's pupils shrank slightly, and the fingers holding the teacup tightened unconsciously.

He originally thought that "Liu's Overseas Investment" had acted cautiously enough, but he didn't expect that the old fox Li Jiacheng would still smell some clues.

These local tyrants who have been in the business world for many years are indeed shrewd people.

Since his cards had been seen through, Liu Shudong simply dropped his disguise and said frankly: "Mr. Li is indeed very discerning, it is true!"

"Li Jiacheng looked at Liu Shudong with a sincere smile and a sharp gaze: "Mr. Liu is an upright person, which is really admirable! It is a great honor for me to be able to make friends with you. I wonder what Mr. Liu thinks?"

Liu Shudong smiled knowingly and responded calmly: "Thanks to Mr. Li for his kindness, it is my honor to have friends with you and Mr. Bao." He paused, a glimmer of wisdom flashed in his eyes, "But friends are friends, business is business, and when it comes to the company's interests, I'm sorry to say that we still have to distinguish between public and private interests."

Bao Yugang laughed heartily upon hearing this, and patted Liu Shudong on the shoulder generously: "Good! Mr. Liu is indeed a man of few words.

From now on, you will be the honored guest of my Bao family in Hong Kong!"

Li Jiacheng struck while the iron was hot and said, "Mr. Liu, Mr. Bao, I have a plan. What do you think?"

"Appreciate further details!"

"Well, this is what I think..."

It turned out that Li Jiacheng's plan was to let Bao Yugang take charge of "Hutchison Whampoa" and let him, Li Jiacheng, take the lead in "Hutchison Whampoa".

In order to balance the interests of all parties, they specially designed a compensation plan for Liu Shudong - allowing "Liu's Overseas Investment" to hold three companies, "Wharf Holdings", "Hutchison Whampoa" and "Cheung Kong Holdings", and become the second largest shareholder.

This ingenious equity arrangement not only achieved a win-win situation for all three parties, but also created multiple strategic values: first, cross-holding effectively avoided the internal friction caused by the competition among the three parties;
Secondly, it can also reduce the financial pressure of the three parties in the acquisition process;

Most importantly, a powerful alliance of Liu, Bao and Li was formed, which built a solid defensive barrier against future competition from Y capital.

Liu Shudong readily accepted this plan.

In fact, his original appeal was not to seek controlling rights, but to make financial investments.

Liu Shudong is not confused and will not pursue controlling stakes just for the sake of controlling stakes.

Because even if he controlled these three companies, there was no guarantee that he could do better than Bao Li.

In addition, this has another benefit. Establishing a closer strategic partnership with H-funded giants such as Bao and Li will allow "Liu's Overseas Investment" to take root in Hong Kong better.

And this is what "Liu" who has just arrived in Hong Kong needs most.

According to Li Jiacheng, he had learned a few years ago that Jardine Matheson Group was the largest shareholder of Wharf Holdings.

But in reality, their shares do not exceed 20%.

On the other hand, Wharf Holdings owns a large amount of land. As land prices appreciate, the actual asset value of Wharf Holdings will definitely increase.

However, the share price of Wharf Holdings has not changed much. Therefore, the actual value of Wharf Holdings has already far exceeded its share price.

According to Li Jiacheng's estimation, even if the share price of Hutchison Whampoa soared five times, it would still be a project worth investing in.

Li Jiacheng had already figured it out in his mind that as long as he could acquire a sufficient stake in Wharf Holdings as soon as possible, he would be able to snatch Jardine Matheson's control over Wharf Holdings, and then develop the land held by Wharf Holdings, which would inevitably result in huge profits.

Li Jiacheng, Bao Yugang and Liu Shudong currently hold nearly 45% of the shares of Hutchison Whampoa.

As a result of their continuous acquisitions and purchases, the share price of Hutchison Whampoa has tripled from HK$10 per share to HK$30 per share.

However, Jardine Matheson may have noticed the abnormal increase in the share price.

If Jardine Matheson launches a counter-takeover and buys back the shares at a high price, the three of them may fail.

Because in terms of financial resources, the three of them are far from being able to compete with these Y investors.

What's more, Li Jiacheng is fighting the "Hutchison War" and is already too busy to take over the British-owned Hutchison Whampoa.

Therefore, Li Jiacheng needs some allies with strength and capital to fight the "Battle of Kowloon Wharf".

Objectively speaking, if Li Jiacheng just wanted to make money, he could have raised the share price when Jardine Matheson launched a counter-takeover, and then sold a large number of shares to make a lot of money;

But Li Jiacheng's ambition is not here. His goal is to shake the position of Y Capital in Hong Kong.

This would give Chinese capital room to develop. If he took Hutchison Whampoa and Pao Yue-kong took Wharf Holdings, Liu could lurk behind the scenes.

By then, Hong Kong's business power will inevitably be redivided.

Li Jiacheng's ideas coincide with those of Bao Yugang and Liu Shudong.

At present, their biggest enemy is the Y capitalists. They cannot allow internal strife to cause chaos among their own people.

Liu Shudong was amazed at Li Jiacheng's generosity. It was not just about making money, but a challenge and even a provocation to the existing Y-funded giants.

However, from a business perspective, this is also a very profitable business.

Therefore, after quickly thinking about the pros and cons in his mind, Liu Shudong decisively agreed to Li Jiacheng's suggestion.

After this discussion, the Liu, Bao and Li families initially established an alliance.

In order to deepen cooperation and share what we have.

The three of them met secretly several times and finally reached an agreement and established a joint communication mechanism among the three companies.

Not long after, Li Jiacheng sold all of his shares in Hutchison Whampoa and asked Bao Yugang to buy them secretly.

Li Ka Shing only made a net profit of 5000 million from this transaction.

Jardine Matheson had been watching Li Kar-shing's acquisition moves, but when they saw him sell all the stocks he had bought, they thought that Li Kar-shing was only doing it to make money.

Although there were still people secretly buying a large number of shares at that time, the boss of Jardine Matheson did not expect that there was another Bao Yugang and the even more hidden Liu Shudong.

(End of this chapter)