1977: The beginning of the blind date with the daughter of the king

Chapter 745 The Initial Stage of Wheelock's Acquisition

In his office, Shen Bi frowned, deep in thought.

He was analyzing Bao Zeyang.

Bao Zeyang had anticipated the exchange rate would fall, so he wasn't surprised. After all, when he took out a loan from HSBC, he had made it clear that he would convert the borrowed Hong Kong dollars into US dollars, betting on a drop in the exchange rate.

Shen Bi was only surprised by the timing of Bao Zeyang's move.

The Hong Kong dollar exchange rate has not only experienced this one sharp drop, but has been slowly declining since the 1980s.

This is also why Samuel Barr was not surprised when Bao Zeyang bet on the exchange rate falling, because the exchange rate had been falling since 1980.

It's been falling for two or three years now, and Bao Zeyang hasn't exchanged any Hong Kong dollars in those two years. Instead, he decisively exchanged them during this short-term crash, which shows he seized the opportunity quite cleverly.

"This guy mobilized so many US dollars, his reaction was too fast."

Shen Bi continued to ponder this in his heart.

These days, communication isn't very smooth, and even bank transfers are generally inefficient due to limitations in technology and equipment.

Therefore, international capital flows often only within Europe and America, while in Asia, particularly Japan, they receive some attention.

While Hong Kong Island can be said to be developing well, it is still a small island, and not many international capital has yet focused on it.

This is also the source of the confidence that the Governor's Office and HSBC dared to implement a sharp devaluation of the currency. In fact, the sharp devaluation of the currency in the short term did not cause much damage to British capital, except for the suffering of the local people of Hong Kong Island.

Moreover, there's no need to worry about international speculative capital trying to take advantage of the situation, because by the time they realize what's happening, this wave might already be over.

But now, Bao Zeyang has mobilized billions of US dollars into Hong Kong Island, and the profits from this move are considerable.

Most importantly, he seemed like a hunter waiting in ambush, having already laid out his net and been waiting for his prey.

This keen judgment made Shen Bi somewhat uneasy.

Two hundred billion Hong Kong dollars in cash can be used in countless ways by a financial expert.

Unfortunately, even Shen Bi can't stop Bao Zeyang now.

People across Hong Kong were exchanging their money for US dollars and rushing to buy supplies. At this time, major banks were eager for US dollars to come in and take away their Hong Kong dollars. Sir Michael Sandberg had no way to stop Paul Chak-yeung from exchanging his money.

The same situation applies to the Governor's Office. Not only do they dare not order a ban on Bao Zeyang's exchange, but they also have to nominally support it, since on the surface they are still responsible for Hong Kong Island and have to stabilize the exchange rate of the Hong Kong dollar.

This is also why Bao Zeyang could exchange US dollars for Hong Kong dollars with impunity. Under the premise of free exchange, he could exchange as many US dollars as he had for Hong Kong dollars, thus reaping the assets of the entire Hong Kong Island.

While Shen Bi was pondering Li Changhe, Li Changhe was also busy with a meeting.

"Boss, since the Hong Kong Monetary Authority issued its statement, the Hong Kong dollar exchange rate against the US dollar has stabilized and is currently fluctuating around 8.5. Should we continue to allocate funds to exchange for Hong Kong dollars?"

In the office, Li Zhengguang was respectfully asking Li Changhe a question.

They are the core of Li Changhe's current finance team and the command center responsible for this fund transfer.

"Continue. Even if Government House wants to change the exchange rate, it won't be quick. We still have at least half a month to continue exchanging currency."

"Moreover, given the current situation, the best way for the Governor's Office to change the exchange rate is to fix it at a fixed rate."

"But I estimate that the exchange rate will definitely not exceed eight, but it will not be lower than seven either, and it will most likely be between seven and eight."

"Because this range is where Hong Kong Island residents exchange the most US dollars, they must ensure that the assets of Hong Kong Island residents are preserved and not affected by exchange rate fluctuations. Otherwise, chaos will definitely occur on Hong Kong Island."

At this moment, Li Changhe spoke to Li Zhengguang without hesitation.

Upon hearing this, Li Zhengguang and the others understood the core point.

To put it bluntly, the rapid decline in the exchange rate began after the negotiations between the two sides last September.

At first, the people of Hong Kong Island might not have realized what was happening, but once the exchange rate dropped to seven, they did and began exchanging their currency for US dollars.

The plunge in September, for example, was actually a short-term crash driven by the British. While some people were frightened, the proportion of them was not high.

The majority of people who actually exchange their currency are those whose exchange rate is between 7 and 8, so the new fixed exchange rate must be adjusted based on this range.

In this way, even those who exchanged more than nine dollars for US dollars would not actually suffer much loss in the end. A loss of a dozen or so points, although painful, is acceptable.

The range that our boss judged is most likely the range that the Hong Kong government will set in the future; many things in this range are already known.

"Boss, so you mean as long as the exchange rate doesn't drop below 8, we can make a profit, and once it falls below 8, we can stop, right?"

At this moment, Li Zhengguang spoke up and asked.

Li Changhe nodded: "Yes, once the exchange rate reaches around eight, we'll stop. Don't touch the funds in the US; wait until then, and then repatriate them all. The same goes for the European funds."

"It's our own money. You can compile a list and report it to me later."

At this moment, Li Changhe spoke to Li Zhengguang.

In fact, Li Changhe wouldn't make much money from the exchange rate alone. Even if he exchanged US dollars for Hong Kong dollars when the exchange rate was around 9, the Hong Kong government's linked exchange rate system would set the rate at 7.8 to one US dollar.

In other words, the interest rate difference of one US dollar is only about one dollar and fifty cents, which is only two or three billion Hong Kong dollars. When this amount is converted into US dollars, it is only two or three hundred million US dollars.

The returns are not as high as those from Kuwait.

However, this money did cover a lot of Li Changhe's interest, such as the money he owed to Jardine Matheson and the loan interest from various banks.

The remaining assets that were exchanged, as well as the profits generated by the subsequent stock market recovery, were pure profit.

"By the way, regarding the stock market, how many Wheelock shares have you acquired?"

At this moment, Li Changhe asked Li Zhengguang again.

Li Zhengguang shook his head: "Boss, we have acquired about 11 percent of Wheelock shares in a scattered manner, but it is useless. The vast majority of them are Class B shares, and Class A shares account for less than one-fifth."

"It is almost impossible to complete the acquisition of Wheelock through the stock market. Their dual-class share structure is disgusting. The major shareholder holds all Class A shares, with one Class A share being equivalent to ten Class B shares."

"However, we discovered a related company of Wheelock, namely Federal Properties, which owns a portion of Wheelock's shares. Now that the real estate industry is collapsing, we can acquire Federal Properties and thus indirectly own 6.8% of Wheelock's shares. Combined with the shares we have acquired, it should bring the total to about 15%."

"Furthermore, Federal Properties owns many nice buildings in Central, including the International Building and the Federal Building, which can complement Hongkong Land."

"But if we really want to take over Wheelock, we still need to consider contacting the Cheung family or John Madden."

"Currently, the Zhang family holds 35% of Wheelock's shares, while John Madden holds 24%, totaling approximately 60%. It is completely impossible for them to acquire Wheelock from the stock market."

Li Zhengguang reported earnestly to Li Changhe. Li Changhe nodded: "Understood. You can continue with your work. I will consider this matter."

Afterwards, Li Zhengguang and the others left, and Li Changhe summoned Ella.

"Ella, how's it going with your people contacting Zhang Yulin's widow in relation to the Zhang family?"

From the moment Li Changhe sent Ella to investigate the Zhang family's inheritance dispute, he arranged for people to contact the second branch of the Zhang family.

Now, it's time to put them to use.

“Boss, we’ve already arranged for someone to contact her. Zhang Yulin’s widow, Cui Xiuying, has agreed to cooperate with us. In fact, now she has no one else to cooperate with besides us.”

“Zhang Yuliang bribed Judge Bai Jia to rule against her, and at the same time bribed major law firms on Hong Kong Island to prevent them from taking on Cui Xiuying’s employment.”

"The second branch of the Zhang family can't even find a lawyer in Hong Kong Island now."

"What about the third branch of the Zhang family? Are they just going to watch Zhang Yuliang embezzle the entire family's wealth without doing anything about it?"

Li Changhe then asked curiously.

Ella shook her head: "Boss, the third branch of the Zhang family is a complete bunch of good-for-nothings. Zhang Yuliang gave them only tens of millions of assets, and they compromised and signed a family division agreement with Zhang Yuliang."

"It's probably very difficult to get the third branch of the family to step in now!"

After listening, Li Changhe smiled and said, "Since it's an agreement, it can naturally be overturned. You can send someone to contact them and tell them that the Zhang family's entire assets are worth billions. As long as they are willing to go to court, even if they only get 10%, it's still hundreds of millions of assets."

"Moreover, we can fully support them in their lawsuit, including helping them to defuse the pressure from the British and put their minds at ease."

"What I need you to do now is to get them to come forward and prepare to continue suing Zhang Yuliang!"

"By the way, remember not to reveal our identities. Pretend to be overseas and mislead them."

Li Changhe said softly at this moment.

Ella nodded immediately: "I understand, boss."

"Oh, by the way, could you also arrange a meeting with Zhang Yuliang for me? I need to meet him."

At this moment, Li Changhe gave instructions to Ella.

After listening, Ella, though curious, nodded in agreement.

After giving these instructions, Li Changhe waited quietly.

Meanwhile, in a luxury mansion on Hong Kong Island, Zhang Yuliang was discussing matters with his sons.

"According to the information I have gathered, the negotiations between the British and the north are not going smoothly. The other side has no intention of making any concessions. I feel that this time, the British may not be able to continue the negotiations, and we need to prepare as soon as possible."

If we were to ask who in Hong Kong is most concerned about the negotiations on Hong Kong Island, the Cheung family would definitely be among them. After all, their sins are too great; in ancient times, that would have been a heinous crime that would have resulted in the confiscation of their property and the extermination of their entire clan.

"Father, are we really going to Australia?"

"At present, Australia is the safest place. Although the United States is good, we have no foundation there. Australia is very close to Southeast Asia, and some of our industries are there, so we can continue to maintain control."

Zhang Yuliang said softly at this moment.

He has diversified his investments over the years, making many investments in Southeast Asia, all in preparation for this day.

"Father, what about Hong Kong Island? Should we continue to control it remotely?"

"No, I plan to sell it. We can't keep the business here. If the other branches change their minds and start lawsuits, it will be a problem for us."

"I called you all here today to discuss this matter. Who do you think would be the best buyer for Wheelock's shares?"

At this moment, Zhang Yuliang asked his sons, which could be considered a test to see which of them had the best judgment.

Several of his sons, most of whom were wealthy tycoons in Hong Kong, shared their thoughts. Zhang Yuliang listened in silence.

In fact, he did have someone in mind, and that was Li Jiacheng.

Zhang Yuliang had a good relationship with Li Jiacheng. He respected Li Jiacheng and knew that Li Jiacheng was now on good terms with HSBC tycoon Sir Michael Sandberg.

He is now showing signs of replacing Y.K. Pao as HSBC's top Chinese VIP.

Such a person, with both money and ability, will definitely be able to take over Wheelock.

However, the problem is that the Zhang family now only owns shares in Wheelock, but does not have real power in Wheelock. The real power is still in the hands of the founding family, John Madden. This is a bad disadvantage for Zhang Yuliang.

The Zhang family's shares are not yet sufficient to completely suppress Madden.

Just as Zhang Yuliang was pondering this, the old servant of the house came to the door of the study and gently knocked.

"Sir, Secretary Liu just called and said that Mr. Bao Zeyang from the Bao family in Hong Kong wants to meet with you."

After the old servant entered, he respectfully addressed Zhang Yuliang.

After hearing this, Zhang Yuliang was somewhat puzzled: "Bao Zeyang from the Bao family?"

That little Bao Sheng who's been touted as so amazing?
"Help me schedule a time to meet him."

After thinking it over, Zhang Yuliang agreed, since the Bao family in Hong Kong was showing signs of becoming the most powerful Chinese family in Hong Kong.

From shipping to real estate to retail, the Pao family occupies half of Hong Kong Island.

In other words, the Bao family doesn't own a bank. If they did, the Bao family would truly be revered as the King of Hong Kong, just like the Ho family in Macau.

However, considering the relationship between Y.K. Pao and HSBC, it really doesn't matter whether the Pao family owns a bank or not.

Soon, the time arrived for the meeting between Li Changhe and Zhang Yuliang. They met at the club in Deep Water Bay.

This area is located in the southern part of Hong Kong Island, separated from Central and Causeway Bay by mountains and rivers, making it a very private area.

In the reception room, Li Changhe saw Zhang Yuliang, the "notorious" head of the Zhang family, for the first time.

"Hello, Mr. Zhang, I am Bao Zeyang."

Upon seeing Zhang Yuliang, Li Changhe smiled and extended his hand to Zhang Yuliang in a friendly manner.

(End of this chapter)