Siheyuan, Shazhu: I have both parents in this life

Chapter 292 There's always someone who can't stand being alone.
One day after the Lunar New Year in 1978, Xiaoman hurriedly pushed open the door to He Yuzhu's office, holding a newly printed report in her hand, her face unusually solemn.

"Brother Zhu, there's some unusual activity in Wharf Holdings' stock." She placed the report on He Yuzhu's large desk.

He Yuzhu picked up the report and began to read it.

Xiaoman continued, "Over the past three weeks, retail investors and small institutions have been continuously and discreetly buying up the circulating shares. The operations are very covert, conducted through more than a dozen different brokerage accounts, but the total inflow is quite considerable. Less than an hour after the market opened today, the stock price jumped by 5%, and the trading volume was three times that of usual. Someone is quietly accumulating shares, and their appetite is quite large."

He Yuzhu quickly flipped through the report, then looked up and asked, "Have you found the source? Which direction did the funds come from?"

Xiaoman shook her head: "The other party's methods are very sophisticated. The funds were routed through several loops and eventually distributed to those brokerage accounts. I have already asked Bai Yifeng to investigate the specific operators and the financial backers behind them."

"They're definitely from Hong Kong. I'll give you two targets: Li Ka-shing and the shipping magnate."

"It's possible that he'll take over the shipping magnate. Wasn't Li Ka-shing forced to withdraw from the real estate and port businesses due to pressure?"

"Heh, do you think he's that honest? We can use a shell company, but he can't? Hong Kong's real estate market has developed so rapidly in recent years, do you think he'd let go of this lucrative opportunity?" He Yuzhu sneered.

"So what do we do?"

"What we want is control of Wharf Holdings. Let them throw money at it until they feel the pinch."

"Then our losses won't be small either," Xiaoman thought to herself.

"That depends on the abilities of your men."

"Okay, I'll go back and get them to come up with a plan. What about Lao Bai?"

"Let him continue investigating, trace the source of the funds and find out exactly how many shells Li Ka-shing has, and crush them all after the Wharf case is over."

"understood."

Two days later, Bai Yifeng knocked on He Yuzhu's office door, his face showing a hint of excitement at having discovered a clue.

"Boss, we've made progress."

"Explain clearly, which one have you found?"

"Oh, it's about Li Ka-shing. Our people have found out that Li Ka-shing started contacting HSBC through a very discreet middleman at the beginning of the year. Li Ka-shing also secretly met with HSBC's chairman, Sir Michael Sandberg, three times in a row. The day after Li Ka-shing's last meeting with Sir Michael Sandberg, Wharf Holdings' stock began to show unusual activity."

"HSBC's Sir Michael Sandberg, are you sure?" He Yuzhu pressed, his mind still searching for memories from his past life. In the end, only a string of question marks remained: "Wasn't Hutchison Whampoa supposed to be next year? Why is it being brought forward???"

"I'm sure. Could our people possibly be mistaken?"

"Besides manufacturing and retail, what else has Li Ka-shing been involved in lately?"

"You guessed right, boss. He set up a few shell companies and did some real estate development that doesn't conflict with ours, and it seems to be selling quite well."

"These funds aren't enough for him to pull off so many moves, are they?"

“He sold a lot of land, some of which we bought back. These were the small, unclaimed plots of land that Ah Lang hadn’t taken when he acquired land ten years ago. Now they’ve increased in value many times over.”

"HSBC, I see. What's the situation with the shipping magnate? Has he joined forces with Li Ka-shing?"

"No, he probably really wants Wharf Holdings. Worldwide Shipping is developing very quickly now, and the port and warehouse rental fees are probably becoming too much for him."

"Alright, I got it. Continue investigating Li Ka-shing and find out all his shell companies."

"understand!"

After Bai Yifeng left, He Yuzhu called A Lang, He Yuxin, and Wilson over.

"Boss (brother)!"

"Please sit down, there's something very important that you all need to do together."

"Boss, you said it, I guarantee it will be done perfectly," Ah Lang said.

"Are you getting cocky now? Do you think we Yellow River have no rivals?" He Yuzhu said.

"No, no, but the boss always plans things out carefully before acting. We're basically just running errands." Ah Lang patted the horse lightly.

“I agree with that!” Wilson replied.

"Alright, do I need your flattery?" He Yuzhu said irritably.

"Brother, is something big going on? Otherwise, why would you call us all over here?"

"Yes, it's not small. The three of you should make an appointment with HSBC's CEO, Sir Michael Sandberg."

“Shen Bi, should we take out a loan? No, we have plenty of cash flow!” Ah Lang interjected.

"What's the rush? Let me finish what I have to say."

"Boss, please speak."

"I suspect HSBC wants to sell its Hutchison Whampoa shares to cash out. You guys need to negotiate that."

“Hutchison Whampoa? We really want to acquire it? Brother, as far as I know, their docks are losing money, and the equipment is old and will all need to be renovated after the acquisition. That’s a huge sum of money!” He Yuxin said anxiously.

“I think it’s worth acquiring. They have a lot of land. If we hadn’t been competing with Jardine Matheson back then and hadn’t paid attention to them, the boss would probably have taken it back long ago,” Ah Lang said.

“I’m not that amazing, but Hutchison Whampoa is indeed not as impressive as Jardine Matheson.”

"In that case, you should go and talk to them first, see what properties Hutchison Whampoa has, and who you need to help with the evaluation. You can find them yourselves."

"Is there a time limit?" Wilson asked.

“We have competitors, and we won before them.”

"Having rivals is not a good thing; it might mean paying a higher price."

"Hehe, you just need to find out how much our opponent is offering, and then offer a little more than him. Don't worry, we won't lose money," He Yuzhu said confidently. He knew that Li Ka-shing had played a trick of swallowing an elephant, and the price he offered was not high.

“Alright then, since you’re so sure, boss, we’re more confident,” Wilson said.

"By the way, bro, who's your opponent?" He Yuxin asked curiously.

"Li Ka-shing".

"What? Him? He dares to mess with us?"

"The HSBC incident wasn't caused by them provoking us; we're the ones who want to make them lose more than they gain."

"Rice? Where did he scatter rice? I didn't know. He's not involved in real estate or anything," Ah Lang said.

"Ah Lang, you've definitely lost your vigilance lately. Go down and find Lao Bai." He Yuzhu gave Ah Lang a slight nudge.

"Understood, boss." Ah Lang nodded hurriedly. There must be something going on here, and it's not a small matter. Since the boss has called him out, he feels he needs to reflect on his actions.

"Alright, go and do it."

"Should we avoid Li Ka-shing?"

"No need, just go openly and honestly. I want to see what other tricks he has up his sleeve."

Then, the Yellow River Group openly extended a meeting invitation to HSBC, and the person in question was none other than Boss Shen Bi.

Although Huang He is not HSBC's largest client, he is still a VIP customer, and they cannot refuse this request.

Three days later, at the HSBC headquarters in Hong Kong, in the executive office.

Shen Bi looked at the three people representing the core of the Yellow River Group and pondered in his heart. If it were just one person, he wouldn't have thought much of it, but three people came at once, one from real estate, one from the port, and one from the lawyer.

He had already guessed the other party's purpose. The best seller for the shares of Hutchison Whampoa held by HSBC was Huang He, but HSBC did not want to sell to Huang He because their cooperation with Huang He was not close, and even somewhat distant.

Furthermore, they didn't want to see Huanghe Group take another step forward and acquire Hutchison Whampoa, leaving it virtually without rivals in Hong Kong.

"What do you all want to talk about?" Shen Bi feigned ignorance.

"Boss Shen, let's not beat around the bush. You can't possibly not guess why we're here!"

"This"

"Then I'll be frank: the Yellow River Group intends to take over all of HSBC's shares in Hutchison Whampoa."

"Where did you get the news?"

“Shen Daban, is Hong Kong very big?” Wilson asked.

"So how do you plan to collect it? You know that's a huge sum of money!"

"Could you reveal HSBC's low price, Ms. Shen? If it's based on the market price, then don't bother, we know the market price very well."

Shen Bi did not immediately make an offer, but began to think about it. Ah Lang and the others did not urge him, but waited quietly.

After a long pause, Sir Michael Sandberg spoke up: "We hold 25% of the shares, which are worth HK$1.5 billion at market value."

Seeing that no one interrupted him, Shen Bi took a deep breath and continued, "1.2 billion. As long as you Huanghe come up with 1.2 billion, I will apply to the board of directors to sell it to you."

"Does Master Shen think we, Huang He, are easy targets?" Wilson's face darkened.

"That's not how it works. My offer is quite reasonable," Shen Bi said calmly, as if he had Huang He completely under his control.

“Then we’ll have to consult the HSBC board directly!” Wilson said.

"Are you provoking me?" Shen Bi's face instantly turned ugly.

"Hehe, Mr. Shen, we just want a reasonable quote."

"So what do you consider a reasonable price?"

"We believe that the price of 750 million is reasonable."

Shen Bi cursed under his breath: "Damn it, who leaked the bottom price?"

This is very close to the price he agreed on with Li Ka-shing, but Li Ka-shing paid 6.39 million to acquire 22.4% of the shares, while Huanghe's price was only slightly higher.

“I don’t know where you heard your price from, but this price is impossible,” Shen Bi regained his composure. “Then let me ask you another question. How did the last person who came to negotiate pay?” Wilson asked.

"This is a trade secret."

"I see. May we take a look at Huangpu's asset list?"

"Okay, just a moment." This time, Shen Bi didn't refuse. He pressed a button on the table, and then his secretary came in. Shen Bi gave a few instructions, and the secretary went to get the documents.

A moment later, the secretary came in with a stack of documents and respectfully placed them on Shen Bi's desk. Shen Bi gestured for him to enter.

Then A Lang, He Yuxin, and Wilson each took a portion and started flipping through them.

Soon, Wilson turned to a page, pointed to a piece of data, and asked directly, "Boss Shen, is the depreciation period for the equipment at Taikoo Wharf listed on this list compliant? As far as I know, the design life of this large gantry crane is twenty years. Your bank's accountant is depreciating it for ten years, which may be an overstatement of the asset value."

Shen Bi's expression changed slightly: "The depreciation policy is in line with industry practice."

"What about the land use of the Kwun Tong warehouse?" He Yuxin then pulled out a document and pressed on, "The Planning Department issued a revised draft last year, which stipulates that converting this industrial land to commercial use would require paying a huge price difference, but this was not reflected in your firm's assessment report."

Ah Lang then flipped to the debt section: "And this bridge loan from Nanyang Commercial Bank, it's due next month, right? And is the cash on hand enough to cover it?"

The three men's precise and rapid-fire questions caused beads of sweat to appear on Sir Michael Sandberg's forehead. These crucial questions directly targeted the inflated valuation of Hutchison Whampoa, clearly indicating that the other party had come prepared.

A brief silence fell over the office. Sir Michael Sandberg rose and walked to the window, gazing at the ships sailing in Victoria Harbour, before finally turning back: "Eight hundred million. Cash payment, settlement within a week."

Wilson shook his head: "Seven hundred and eighty million. Pay in full within three days."

Sir Michael Sandberg's pupils contracted. "Three days, cash? There are very few companies in Hong Kong that can come up with that much working capital."

He stared at Wilson: "You already found out?"

Wilson smiled and stood up: "Sign the contract now, and the money will be in your account in three days."

“I need to report this to the board of directors.” Shen Bi shook his head.

"Then we'll wait for good news." Ah Lang stood up, and He Yuxin and Wilson followed suit.

"I will do it as soon as possible!" Shen Bi did not give a definite answer.

After getting into the car at HSBC, He Yuxin asked, "Brother Lang, Lao Wei, do you guys think it'll work out?"

"It's pretty close," Ah Lang said.

"I'm afraid someone might not be able to resist." Wilson's lips twitched slightly when he heard He Yuxin address him, but he still replied.

“Then let’s continue the discussion. I don’t think they can come up with any more money,” Ah Lang said. He had specifically gone to Bai Yifeng to find out more about the situation.

"It's better to be safe than sorry. We'll urge Shen Bi tomorrow," Wilson said.

“Mm,” Ah Lang replied.

The next day, before Ah Lang could even urge him, Shen Bi called.

"Mr. Hung, the board of directors has approved your offer in principle: HK$780 million, cash settlement within three days."

Ah Lang held the microphone, a barely perceptible smile playing on his lips. He gave Wilson a victory sign beside him, then spoke into the microphone: "A wise decision, Mr. Shen. I will deliver the contract to HSBC's legal department before noon, and I hope it can be signed this afternoon."

"Yes," Shen Bi replied with a hint of helplessness.

He spoke with Li Ka-shing yesterday, but Li Ka-shing couldn't come up with more money. Of course, he could offer that price if HSBC was willing to lend more.

However, HSBC retained a portion of the loan amount, which was unacceptable to Samuel Schamps, so he reported it to the authorities.

It wasn't supposed to be this fast, but HSBC has some big moves going on recently and needs funds, so the board made the decision as quickly as possible.

You have to understand that he had been talking to Li Ka-shing for several months, but Huang He wiped out all his previous efforts in a single day. You can imagine how he felt.

That afternoon, at the legal department of HSBC, Hong Lang, a representative of the Yellow River Group, and HSBC tycoon Sir Michael Sandberg officially signed the equity transfer agreement.

The huge sum of HK$780 million in cash will be transferred to HSBC’s designated account in one lump sum within 72 hours after the agreement takes effect.

The news then spread, causing a huge stir in Hong Kong's business community, and Huanghe Group's stock price soared.

Upon seeing this news, Bao immediately sent someone to inquire. He learned that Li Ka-shing had also considered it but hadn't told him yet. He was furious. If he had made a move, he would have taken it long ago. How could he have let this piece of meat end up in He Fei's mouth?

He also realized that Li Ka-shing was not a good ally, but unfortunately Li Ka-shing did not give him a chance to back out.

On Li Ka-shing's office desk sat a copy of Ming Pao, with the headline on the front page: "Yellow River Group makes lightning acquisition of HSBC's 25% stake in Hutchison Whampoa."

He meticulously planned, negotiated with various parties, and even used his cash flow for the next few years as collateral, but the verbal agreement he finally reached with HSBC was intercepted by Huang He in a more direct and ruthless manner within just two days.

He felt a tightness in his chest, and he pounded his chest twice before he could finally exhale. After that, he looked ten years older.

"He Fei, Huang He, do you really have to be so ruthless?" Li Ka-shing said through gritted teeth.

Although his actions regarding Wharf Holdings' stock were bait, he certainly wanted to gain some advantage, so he approached Bao, the shipping magnate, to jointly acquire Wharf Holdings in order to gain some control over the company.

He was ousted from the core circle in the real estate industry and could only scrape by, so he kept trying to accumulate capital.

He was envious of the prosperity of Hong Kong's port in recent years, and Hutchison Whampoa was the breakthrough point he had chosen. He didn't know why Huang He hadn't made a move yet, but this was his opportunity.

As a result, someone threw money at him, and the duck he was about to get flew away.

Li Ka-shing picked up the phone and called the person in charge of the stock market on the internal line: "How many Wharf Holdings shares have we acquired?"

"Eight percent."

"It's already up eight percent? What's the stock price now?"

"That's thirty yuan already, boss."

"Is there any movement from the Yellow River?"

"not yet."

"What about Bao Sheng?"

"He also received roughly the same share."

Li Ka-shing took a deep breath and decisively ordered, "Take profits! Clear out all of our Wharf Holdings shares immediately!"

"Completely sold off?" The subordinate was taken aback. "The market is very hot right now, and the shipping magnate is still buying in. There's still room for the stock price to rise..."

"Clear out all positions!" Li Ka-shing declared decisively. "If we don't sell now, it'll be too late to run once Huang He makes his move. They're holding back, waiting for someone to buy at a high price. Bao Sheng, hmph, he's too eager to take over Wharf Holdings. We'll be the sucker! We'll take the money and leave!"

He does this entirely out of his personality; seeking advantage and avoiding harm has always been his secret to success.

Although the stock could still rise, he didn't want to take the risk. If He Fei seized the opportunity, he didn't know what the outcome would be. Losing his savings of the past few years might be the least of his worries; he could end up bankrupt.

Li Ka-shing's actions brought Wharf Holdings' rising stock price to a standstill, and then it plummeted, even causing a slight drop in the overall market. This was due to market panic.

As a result, Bao, the shipping magnate, dared not buy at a high price, and Li Ka-shing's plan to take profits and close out his positions failed. He only recovered part of his funds, and the rest were all trapped.

The driving force behind this was Xiaoman. Her team bought up a lot of peripheral stocks at low prices and then cooperated with Li Ka-shing to put on a big show. Huanghe made a small profit, but Li and Bao were stuck at high prices because they couldn't sell them, at least not in the short term.

Because He Yuzhu had Bai Yifeng spread a message that he wanted to transfer the port to Huo Sheng, it directly attracted the intervention of the Hong Kong government.

Of course, He Yuzhu had informed Huo Sheng about this beforehand; it was just a smokescreen to suppress the stock price—a classic case of hurting the enemy a thousand while hurting oneself eight hundred.

Only insiders knew that this was an attempt to lock down the opponent's cash flow, with the main target being Li Ka-shing. Bao Shih-hsiang was merely collateral damage, but He Yu-chu believed he was not wronged at all.

A week later, Li Ka-shing stared at the mortgage contract on the table, covered with the bank's red seals, and clenched his fist tightly.

The HSBC loan collateral assessment report chilled him to the bone.

The price of his three industrial land parcels in Kwun Tong was reduced by 30%, and the price of other parcels was reduced by 40%. He mortgaged the factory, but unfortunately, they wouldn't accept the application.

Shen Bi didn't even want to see him. He saw a pair of hands slowly gripping his and Cheung Kong Holdings by the throat, and the owner of those hands was He Fei.

"Mr. Li, are you going to sign or not? The bridge loan is due the day after tomorrow," the loan manager urged.

Li Ka-shing shook his head, and the loan manager picked up the contract and left without saying a word.

Three days later, when Yellow River Industrial bought his most valuable Kwun Tong land at a price slightly higher than the appraised value, he was too exhausted to even feel anger—it felt like he was being brutally ripped apart again.

This is not over yet.

“The Li family’s electronics factory in Yuen Long has had 70% of its orders canceled.” Xiaoman pushed the report to He Yuzhu. “We found three contract manufacturers and quoted 15% less than them, with better quality terms. Their shipping company also received a risk warning letter from our insurance brokerage yesterday.”

He Yuzhu glanced at the data in the report: "What about the plastic flowers that are piling up in his warehouse?"

"They can't be shipped out; they're all piling up in the warehouse. His factory has stopped operating."

“Tell those ship owners that anyone who dares to help them transport goods without permission will be barred from entering any of the ports on the Yellow River.”

"Yuxin has already notified those ship owners."

"His retail sales also generate cash flow."

"Xiao'e has started sniping, and the results are quite good."

How long do you think Li Ka-shing can hold on?

"No more than three months," Xiaoman said after thinking for a moment.

"Then tighten the rope a little more and make him get out of Hong Kong."

"What if he gets cornered and does something rash?"

“I’ll tell Lao Bai that if he dares to jump, that would be even better. Stanley is short of people operating sewing machines. I’m afraid this Mr. Li doesn’t have that much courage,” He Yuzhu said disdainfully.

"Then I'll go check if there are any loopholes or anything. He's very slippery."

"it is good."

(End of this chapter)