America: My Time

Chapter 486 Testing
Chapter 486 Testing

"Capital is profit-driven. Without sufficient benefits, it is impossible to get Standard Chartered Bank to invest its valuable funds in Hong Kong's development. Unless we can offer them enough benefits to get Standard Chartered Bank to act, or get the Mandarin Oriental Group to act. Now the Mandarin Oriental Group has shifted its focus overseas. They are no longer just a Hong Kong company, but a multinational conglomerate."

"How do you plan to provoke the Cultural Oriental Group into taking action?"

"Profits, only profits can motivate them. Now that the Mandarin Oriental Group has integrated all the real estate in Hong Kong, it has halted many projects and focused its energy on overseas expansion. They have substantial investments in Japan, Taiwan, and even the UK and the US. Their focus is not on Hong Kong now, and they are not worried about any changes there. Don't be fooled by the fact that the Mandarin Oriental Group's headquarters are in Hong Kong; as a multinational corporation, they have investments all over the world. We need to get them to refocus their efforts on Hong Kong and stimulate its economic development, and that requires offering profits!"

"What plans do you have to get the Mandarin Oriental Group to focus its attention on Hong Kong? And can't we get Standard Chartered Bank to loosen credit to fundamentally solve the current problems?"

The Hong Kong government was very dissatisfied with Standard Chartered Bank's tightening of credit, but it was helpless. Now that Standard Chartered Bank has been privatized, it is wishful thinking to expect a privatized bank to obey the Hong Kong government's orders and sacrifice its own interests to solve Hong Kong's financial problems. It is simply impossible and unrealistic.

"We can't succeed with Standard Chartered Bank, so let's settle for second best and make arrangements in real estate. Ordinary real estate can't stimulate the economy of Hong Kong, but Universal Studios can. Universal Studios' studios in Japan have huge benefits for Tokyo and Osaka. We can also discuss with Universal Studios. If successful, the Mandarin Oriental Group's focus will be brought back to Hong Kong. Such a project is enough to drive the development of Hong Kong's economy!"

"The plan is indeed good, but do you think Universal Pictures will agree? Besides, they already have such investments in Japan, would they choose to invest such funds and energy in Hong Kong?"

“Isn’t Mr. John currently in Hong Kong? We can certainly talk to him. As long as he agrees, neither Legendary Entertainment nor Universal Pictures will refuse. If this project succeeds, it will inevitably boost Hong Kong’s economy. However, we will need to pay a considerable price and provide them with land at a low price. Only in this way can we get them to invest more funds. Take Universal Studios Japan in Osaka as an example; they will invest at least tens of billions of Hong Kong dollars, or even more. The scale of the investment depends on our contribution!”

"Then let's do as you suggest and talk to little John to see what he thinks!"

With John's aggressive acquisition of the Hong Kong British-owned Group, Hong Kong has undergone significant changes. At least after integrating all Hong Kong properties, the Mandarin Oriental Group has not been investing heavily in Hong Kong properties, but has instead chosen to expand externally. It is precisely because of this change that the recovery of Hong Kong properties has been affected to some extent.

"A cocktail party invitation. It seems the Hong Kong government is getting impatient. Standard Chartered Bank's continued tightening of credit has put pressure on them. I just wonder what methods they plan to use to persuade me and Standard Chartered Bank?" John's eyes revealed a faint smile when he received the invitation. Although it was somewhat unexpected, it was also reasonable.

Hong Kong's economy has indeed been impacted by the depreciation of the US dollar, but it's impossible to get Standard Chartered Bank to change its ways. Standard Chartered won't make a foolish decision under such dangerous circumstances and plunge itself into crisis. John's plan is for Standard Chartered to accumulate sufficient cash reserves to cope with next year's economic crisis, gain more profits, and even take the opportunity to acquire more assets in Hong Kong.

As night fell, John brought Cherie Chung to a reception hosted by the Hong Kong government. His arrival was not unexpected; executives from HSBC and Standard Chartered had already appeared before him, clearly indicating a focus on Hong Kong's current economic problems. Although HSBC has undergone some changes, its overall available funds are still limited, and the previous depreciation of the US dollar had significantly impacted them. However, Standard Chartered, after completing its privatization, continued to tighten monetary policy, putting pressure on many and making their situation even more difficult.

“Mr. Yuan, does Standard Chartered Bank still have a pessimistic view of Hong Kong's economic development? Why have you been tightening credit? As a fellow banker, I don't believe that Standard Chartered Bank's integration is incomplete, nor do I believe that Standard Chartered Bank lacks sufficient capital reserves. Although affected by the depreciation of the US dollar, Hong Kong's economy has not declined!” Sir Michael Sandberg, the HSBC executive, was questioning Yuan Tianfan. This wasn't his opinion, but rather the Hong Kong government's. “Mr. Sandberg should be aware that the global financial market is not yet stable, and the impact of the US dollar depreciation still exists. Although Hong Kong's real estate market is recovering, other industries are not performing well. Under these circumstances, we dare not be complacent or careless. Otherwise, if unexpected events occur, I will find it difficult to stabilize Standard Chartered's situation. I don't have your prestige at HSBC; I only recently took over Standard Chartered Bank and haven't fully gained everyone's approval yet!”

Upon hearing Yuan Tianfan's answer, Shen Bi frowned. The reason sounded reasonable, but it was actually just an excuse. It meant that Standard Chartered Bank was not optimistic about Hong Kong's economic development and was unwilling to invest funds. It seemed that their plan was to expand overseas again. After all, the Mandarin Oriental Group had done just that. After integrating Hong Kong's real estate industry, it made great strides to expand overseas and has now become a powerful force. Standard Chartered Bank was the same in his eyes. He just didn't know who Standard Chartered's target was.

The current depreciation of the US dollar has had a significant impact on HSBC, which has paid a heavy price for its acquisitions in the United States. The depreciation of the dollar has caused them to suffer heavy losses. On the contrary, Standard Chartered Bank has not only suffered no losses from the depreciation of the dollar, but has also gained huge benefits. Its integration with Pacific Investment has given them a huge cash flow.

Although it's unclear how much Standard Chartered Bank has benefited from the yen's appreciation, the fact that they've been consistently tightening credit suggests they've invested a significant amount of capital. Given Standard Chartered's current cash reserves, they are definitely superior to HSBC, yet HSBC continues to tighten credit, seemingly unconcerned about losing customers. This makes Sir Michael Sandberg somewhat uneasy.

Could it be that the other party is plotting something again, or planning some crazy action? Unfortunately, Shen Bi didn't discover anything during his conversation with Yuan Tianfan, and could only sigh and say, "Mr. Yuan, how long will Standard Chartered Bank continue to tighten its monetary policy? If this continues, you will lose most of your customers, which will have a significant impact on your company!"

“I know, but it’s not up to me to decide, it’s up to the boss. I’m just following orders. As long as the boss doesn’t say anything, Standard Chartered Bank won’t change its mind. We will continue to tighten monetary policy!” At this moment, Yuan Tianfan directly pushed everything onto his boss, completely ignoring Shen Bi’s 'persuasion'!
Faced with the stubborn Yuan Tianfan, Shen Bi had no choice but to give up and stop asking questions. This guy had even pushed his own boss to the forefront, so what could he say? He could only give up. He was powerless to do anything about it and could only watch the negotiations between the Hong Kong government and John.

Shortly after entering the reception, John was led to a conference room. Upon seeing the Hong Kong government officials, John smiled faintly. After some pleasantries, John sat down, and the two sides began negotiations.

"Mr. John, we would like to know how long Standard Chartered Bank will continue its tight monetary policy. Hong Kong's economy needs Standard Chartered Bank's support and financial assistance!" The Hong Kong government officials went straight to the point, asking about Standard Chartered Bank without any beating around the bush, getting to the heart of the matter.

"I'm sorry, Standard Chartered Bank still needs time to complete the integration. After all, we need time to understand the situation of each branch. Moreover, the current depreciation of the US dollar has also had a significant impact on Standard Chartered Bank. We need time to adjust. In the short term, we can only tighten credit to prevent any unforeseen events. Such an acquisition requires a long time to master everything. I believe that everyone here can understand Standard Chartered Bank's difficulties."

John's answer caused everyone present to sigh. Things were indeed as they had thought; it was impossible to expect Standard Chartered Bank to loosen its monetary policy. Now, they could only proceed with the second option.

"Mr. John, I wonder if Universal Pictures has any plans to continue expanding Universal Studios? The Hong Kong government is interested in inviting Legendary Entertainment to develop in Hong Kong. If Universal Pictures has any ideas, we are willing to provide some assistance!"

"If I said that Universal Studios has no plans to expand, you probably wouldn't believe me, because the success of Universal Studios Japan will inevitably give us new ideas. It's just that we haven't made a choice yet. Originally, we intended to invest in Europe, but unfortunately, the nuclear crisis in Russia forced us to abandon this idea. At least in the short term, we won't be restarting this plan. We need to assess the environmental issues in Europe. As for Hong Kong, although it has geographical advantages, its population is too small to support the Universal Studios plan. If we invest rashly, I'm afraid we won't see any returns for a long time! Recovering costs will be even more difficult. So we need to consider it and need time to evaluate this project."

(End of this chapter)