Chapter 413: The Rise of the Chinese — The Beginning
Yang Wendong continued, "But it's hard to say when Singapore will truly stabilize. For now, the capital you just liquidated—focus it on partnering with Wang Yongqing in Taiwan for supermarket investments.
As for real estate, we'll concentrate on Taiwan in the short term, but only through indirect investment. Once Singapore stabilizes, we'll shift fully in that direction."
From a convenience standpoint, Taiwan was more favorable—closer to Hong Kong, and Yang Wendong already had factories there. But the problem was that Taiwan's government prohibited direct foreign investment in the real estate sector. While it was possible to go through loopholes, it was troublesome, came with costs, and wasn't worthwhile for large-scale projects. If not for supermarkets and cinemas, he wouldn't be rushing into the market.
Singapore, once it became independent, would pose fewer restrictions. And with the Hong Kong real estate crisis still looming, it would be the perfect time for him to invest there.
In fact, Singapore would soon be in dire need of basic industries. If conditions were right, some of his light industrial businesses could be relocated there. Hong Kong's industries would soon undergo a structural upgrade anyway. Having two backup locations—Taiwan and Singapore—would allow Yang Wendong to maximize returns.
"Understood," Zheng Zhijie nodded.
Yang Wendong smiled. "Alright then. For the next three months, focus entirely on liquidating our non-core properties and surveying the Singapore market. Everything else can wait."
With the property crisis approaching, real estate firms really had little to do. Even if they wanted to bottom-fish later, that wouldn't be until 1967—still a few years away.
—
October 16, 1964 — thousands of kilometers from Hong Kong, an earth-shattering event occurred. No one in Hong Kong knew it yet. Even though Yang Wendong was aware of it, he said nothing. In his estimation, his actions in Hong Kong over the past few years hadn't yet caused any significant ripple effects in that part of the world.
But once this event was revealed, it sent shockwaves around the globe. Many people were skeptical—perhaps the photos were fake. But the seismic activity data couldn't be forged.
Thus, the international order began to shift. For the first time, the Chinese people stood up.
With that, the likelihood of large-scale internal political unrest in China drastically decreased.
Of course, this was only the beginning. It would take multiple national-level breakthroughs, or "镇国神器" (foundational national weapons), to maintain long-term peace and stability. Having a sword and not using it is one thing—but having no sword at all is another matter entirely.
This single event's influence was only just beginning. Within a few years, China would return to the United Nations, reestablish ties with Western nations, and regain a degree of global influence—all of which were subtly linked to what happened on this day.
And with that, the global standing of the Chinese people also rose.
Even in Hong Kong, the improved status of Chinese locals was a direct result of China's growing international voice. In the original timeline, it was only after China rejoined the UN that Chinese businesses in Hong Kong dared challenge the British colonial elite. Without that backdrop, they would never have had the chance.
—
In the following days, the global media exploded with coverage. Even in Hong Kong, newspapers rushed to translate and reprint foreign reports. Public debate ensued. Some didn't understand what it meant; others had strong opinions. Regardless, the city was buzzing.
But Yang Wendong remained silent. He didn't instruct his media group to editorialize or publish formal views.
Politics was something best avoided—especially in this era. There was no need to openly declare a stance. Real support came from action, not words. Quietly doing the right thing carried more weight than shouting about it.
—
October 22, while most of Hong Kong was still caught up in discussions about the recent news, Yang Wendong arrived at the Four Seasons Hotel to meet Ho Sin Hang of Hang Seng Bank.
"Mr. Ho, good to see you," Yang Wendong greeted with a handshake.
"Mr. Yang, likewise," Ho Sin Hang replied. Once seated, he got straight to the point. "Mr. Yang, I've been meaning to ask you—your recent large-scale property sell-off through Changxing Real Estate… did you foresee something wrong with the housing market?"
"I've never been optimistic about Hong Kong real estate. That's no secret," Yang Wendong said with a laugh. "And I'm not the only one."
Back in mid-1963, Changxing Real Estate had already stopped acquiring new land. That kind of "strategic brake" had raised eyebrows among both industry insiders and banks. And now, their aggressive liquidation strategy had drawn even more attention.
Of course, there were many other shrewd investors—or perhaps just cautious ones—who were also pulling back. Then again, there were plenty of blind optimists who believed property prices would rise forever.
Ho Sin Hang chuckled. "I agree. Property prices do feel over-inflated. But no one knows exactly when or how the crash might come. Will it be a dip and rebound, or a major correction like in '57?
But I've noticed how fast you're moving. Do you think it's coming soon?"
"This is just my personal judgment," Yang Wendong replied. "I don't know exactly when it'll happen, and I don't really care. As long as I've cashed out and left the market, I'll be fine.
I'm no fortune teller—how could I predict the future?"
This wasn't the first time someone had asked. He always gave a vague response. His exit strategy was aggressive, and people were bound to wonder.
Thankfully, the scale of his group wasn't too large yet, so cashing out was still possible. Had he waited until 1972, such a strategy might have been too late. The 1973–74 economic crisis was more about stock crashes—real estate didn't fall nearly as much as in 1965–67. At that point, he wouldn't need to sell—just avoid buying at the peak.
"Understood," Ho Sin Hang said. "I won't press further. I just wanted to understand your perspective.
That said, your group recently repaid a large sum to my bank. Since you now have so much liquidity, why not consider working with us on other investments?"
Hang Seng Bank had been caught off guard by the repayment of nearly tens of millions of dollars from Changxing. For a bank with just a few billion in assets, this was significant.
Normally, banks didn't want to sit on excess cash. Their business model depended on lending, not holding idle capital. If loans weren't being issued, they'd still have to pay interest to depositors—meaning losses.
Everything at Hang Seng had been running smoothly, with capital deployment planned out. But now, thanks to a clause in their loan contract that allowed early repayment, they were caught off guard. Back then, no one expected a real estate company would ever voluntarily repay early.
But it wasn't a huge problem. As long as the bank could re-lend the funds, things would stabilize.
Yang Wendong smiled and said, "Mr. Ho, I plan to invest in Southeast Asia. Can your bank convert my funds into USD and help me remit them abroad?"
"For small amounts, yes. Large sums—no," Ho Sin Hang shook his head. "As you know, HSBC controls Hong Kong's foreign exchange reserves. Even Standard Chartered can't keep up."
"Then in the short term, I won't be investing much in Hong Kong," Yang Wendong said. "Mr. Ho, may I offer you a suggestion? If you don't like it, just ignore me."
"Please, go ahead," Ho Sin Hang said.
Yang Wendong continued, "If you believe my judgment is right—that a real estate correction is coming—then your bank should keep more cash on hand. Once prices fall, the value of your collateral will drop.
Sure, you can pressure developers to repay or increase their collateral. But if the entire sector collapses, that tactic won't work. In that scenario, having liquidity is key."
He couldn't outright tell Ho Sin Hang that Hang Seng was headed for a bank run. No one would believe him anyway. So he offered a financial strategy tip instead. Whether for companies or banks, having ample cash was always wise.
Then again, in a serious bank run, even tens of millions wouldn't help. Hang Seng would likely have a hard time surviving the coming storm.
"I'll think it over," Ho Sin Hang said. "But Hang Seng isn't just mine anymore. If we sit on too much cash for too long, our minority shareholders will start complaining."
"Come on, Mr. Ho. It's just a few shareholders. Don't let them influence your judgment," Yang Wendong said with a grin. "But I assume you're also here today about our previous discussion—my buying equity in Hang Seng Bank?"
"Yes," Ho Sin Hang nodded. "We've finalized our valuation: HK$320 million. This was calculated by multiple accounting firms. After you invest, if we find discrepancies during post-audit, the funds can be adjusted up or down based on collective agreement."
"HK$320 million? Fair enough. I'll invest. The audit can be completed after the deal," Yang Wendong said. "So, how many shares can I get?"
"3% equity," Ho Sin Hang said with a smile. "We're offering 20% total, both to raise funds for expansion and to bring in strategic partners like yourself. I want you on our board of directors."
"Deal. I can have the money ready soon," Yang Wendong said without hesitation.
Even if Hang Seng was later acquired by HSBC, Yang Wendong would become a shareholder in the future HSBC-controlled bank—still a great deal.
He didn't know whether this expansion plan for Hang Seng was part of real history. Perhaps it was a small matter, or intentionally kept secret, and thus wasn't documented. Or maybe his presence had already created a butterfly effect that altered Hong Kong's commercial timeline. After all, Changxing Group was now one of the largest private enterprises in Hong Kong, possibly even influencing foreign companies.
"You're very welcome to join us," said Ho Sin Hang. "Also, Mr. Yang, you don't need to gather all the funds immediately. We can offer you a loan."
"You're giving me a loan to buy stock in your own bank?" Yang Wendong blinked. "Isn't that basically free equity?"
There were historical precedents for this. For example, when HSBC sold Hutchison Whampoa to Li Ka-shing, they loaned him the money for the acquisition. Li Ka-shing barely put in any capital but gained control of a major conglomerate. Afterward, he simply sold a few assets and repaid the loan—free profit.
That's the power of close ties with banks. Sometimes, it really was free money.
Ho Sin Hang shook his head. "Not exactly. With your credentials, any bank would loan you HK$10 million. We'd rather offer that facility ourselves than lose the opportunity."
"Fair enough. Then let's proceed. I'll have my team contact yours for the details," Yang Wendong nodded.
At this stage, their conversation was just about mutual intent. The actual deal would still go through legal and compliance channels.
"Understood," said Ho Sin Hang.
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