Chapter 391 Spreading Rumors
Acquiring a bank was something he had never seriously considered before. The main reason was that he had accumulated wealth at such a rapid pace! So fast that he hadn't thought much about other matters; every time he obtained a sum of money, he would immediately consider which company to acquire next. Now, it seemed that it was indeed time to control a bank that completely belonged to him. Most importantly, owning his own bank would make the circulation of funds much more convenient. In his previous life, the reason why Li Jiacheng did not acquire banks in Hong Kong was mainly because he had been supported by HSBC. In such circumstances, if he tried to establish a bank in Hong Kong, it would be seen as antagonizing HSBC. Therefore, he did not acquire any banks.
But Lin Haoran was different. He did not rise relying on HSBC, nor did he owe HSBC any major favors. Furthermore, regarding the matter with Jardines Matheson, HSBC had also tried to make things difficult for him. Thus, it was completely reasonable for him to control a bank.
"Mr. Ma, which bank do you think would be better for me to acquire?" Lin Haoran humbly asked for advice.
"Boss, currently in Hong Kong, including banks and finance companies, there are more than four hundred institutions. Excluding finance companies for now, there are still 108 licensed banks. Moreover, I've heard that the government has not yet closed the license application channels. Those who meet the requirements can still apply, so it can be expected that the number of bank brands in Hong Kong will only increase in the future! Although I am not a professional in the financial industry, I do have some understanding of Hong Kong's banking sector. I would still suggest that you gather more information and carefully evaluate before making a decision. There are many foreign banks in Hong Kong, but relatively few local ones. My advice would be to prioritize the acquisition of a local Hong Kong bank. As far as I know, there are only 27 local brand banks; the rest are foreign-owned! As for foreign banks, if you plan to develop in the banking industry in the future, you can consider investing through a local bank rather than directly investing in a foreign one."
Ma Shiming did not propose a specific target but offered his own suggestions.
Lin Haoran nodded, agreeing with Ma Shiming's advice.
"Mr. Ma, what you say makes a lot of sense. Indeed, we need to understand the market more deeply to make the best choice. But with the limited number of local banks, do you have any suggestions to help me filter potential targets?" Lin Haoran asked.
After pondering for a moment, Ma Shiming replied, "Boss, Hong Kong's banking industry is indeed dominated by foreign banks, with relatively few local banks—only 27. Major ones include HSBC, Hang Seng Bank, Dah Sing Bank, Wing Lung Bank, Chiyu Banking Corporation, Nanyang Commercial Bank, and Bank of East Asia. Given the limited options, we need to be more meticulous in our screening. I suggest considering the following aspects: first, whether the bank has a good reputation and a stable customer base in the local market, which relates to its future development prospects; second, assess their financial health, including asset quality, profitability, and risk management capabilities; third, understand the shareholders' structure and whether the major shareholders are willing to sell, which is crucial for our acquisition success. Of course, these are just preliminary thoughts. Specific details would need further investigation and evaluation. I hope these suggestions can help you."
Lin Haoran nodded again. Although Ma Shiming was not an expert in banking, his insights did provide Lin Haoran with some useful perspectives. He felt that what Ma Shiming said made a lot of sense.
Among the local banks in Hong Kong, Jardines Matheson's bank was not worth considering. Although it was a locally grown bank, it was controlled by British capital, making it impossible for Lin Haoran to acquire it. As for Hang Seng Bank, Hong Kong's second-largest bank, it had been directly acquired by HSBC during the squeeze-out crisis of the 1960s, with HSBC holding 51% of its shares, making it absolutely controlled by HSBC. So, Lin Haoran almost had no chance of targeting Hang Seng Bank.
Thus, his targets were narrowed down to those local banks without such strong backers.
Lin Haoran did not care too much about the strength of these banks. He never intended to build a banking empire. He was very clear that before Hong Kong's return to China, no matter how much he developed, he would still be limited by the Governor's Office. After the return, it would be even more restrictive.
His goal for acquiring a bank was simple: to efficiently operate the cash flow of his subsidiaries and prevent those funds from lying idle in other banks, allowing others to use his money for investments or high-interest lending. It would be better for him to manage and profit from these funds himself.
Whether it was Qingzhou Cement, Hongkong Electric, Towngas, or Dairy Farm International Holdings, all were companies that held large amounts of cash. If these funds were not utilized well, it would be an incredible waste.
With these ideas in mind, Lin Haoran decided to take action.
It was already December, and in about ten days, he would be heading to the United States because Apple's IPO was scheduled for December 12th. He planned to arrive two days earlier.
Before going to the U.S., Lin Haoran wanted to filter and identify suitable acquisition targets. As for completing the acquisition, he was not in a rush. Acquiring a bank was not something that could be done overnight.
"Real estate project sales, Mr. Ma, you need to continue executing. Housing prices haven't peaked yet, and now is the best time to sell. Once the market reaches its peak and crises start to appear, it will be much harder to sell. Even if we manage to sell then, the prices may not be satisfactory!" Lin Haoran once again emphasized the urgency of the real estate project sales, refocusing their attention.
The current market situation was extremely favorable for them. Housing prices were climbing steadily, and there were no obvious signs of a bubble yet, making it the perfect time for them to cash out.
"Don't worry, boss. I completely agree with you. Hong Kong's real estate market has already grown beyond sustainable levels. I predict that within a year or two, the industry might face a crisis similar to 1973, perhaps even worse. Therefore, I will continue selling the less prime projects as per your instructions. However, considering that our Land Holdings Group is the largest real estate company in Hong Kong, selling too many projects at once could attract excessive attention and unnecessary panic. I plan to adopt a phased selling strategy, releasing a few projects each month. This way, we can gradually cash out without causing a major shock to the market. This strategy will allow us to achieve our financial goals while maintaining the company's image and market stability," Ma Shiming answered confidently with a smile.
Lin Haoran nodded thoughtfully and provided some additional advice: "Indeed, a large-scale sell-off would impact the real estate market. To minimize this and maximize our interests, I think we can spread some rumors. We can say that I personally owe massive debts due to the acquisition of Land Holdings Group, and that the group itself is facing some financial pressure with upcoming debt repayments. Therefore, in order to raise funds, we are selling some premium projects. This narrative would counter any negative speculation about why we are selling so much property and make it seem like a normal financial adjustment. At the same time, such news might attract investment groups looking for quality projects, possibly driving up the prices. In this way, we can not only sell off the assets but also fetch better prices, achieving multiple goals at once!"
Upon hearing this, Ma Shiming's eyes lit up. He highly praised Lin Haoran's plan: "Boss, this strategy is brilliant! It resolves the potential market volatility from selling projects and also attracts more buyers, raising selling prices. It's truly a win-win solution!"
"However, boss, this might bring some short-term negative impacts on your personal reputation," Ma Shiming added with a slight tone of concern.
Lin Haoran smiled indifferently and said, "Mr. Ma, business is like warfare. Sometimes, a few personal sacrifices are necessary for the greater good. These rumors might bring temporary pressure, but as long as we successfully sell off problematic projects and bring greater benefits to the company, the sacrifices are worthwhile. I believe time will prove everything. Once the turmoil passes and the market stabilizes, people will naturally see Land Holdings Group's strength and stability. By then, these rumors will dissipate, and I will gain even more respect and recognition."
Even Bao Yugang, the legendary shipping tycoon, had paid a huge price to acquire Wharf Holdings and had since been lying low, adjusting his layout.
Compared to that, for a young man like Lin Haoran, who had been navigating the business world for less than three years, facing some financial challenges after acquiring Land Holdings Group was not a big deal.
These were unavoidable challenges on the path of growth. Once the rumors spread, no one would doubt them. Everyone would believe that Lin Haoran was under financial pressure!
Thus, Lin Haoran was completely unconcerned about the negative effects the rumors might bring.
"You're right, I was being shortsighted!" Ma Shiming admitted, nodding.
The two continued to discuss various business matters regarding Land Holdings Group in depth. Although Lin Haoran was young, his wealth of knowledge and insight accumulated through online platforms in his previous life allowed him to quickly grasp the essence of problems and offer precise and unique suggestions.
Every time Lin Haoran proposed an idea or solution, Ma Shiming would listen attentively and nod in agreement. He deeply admired his young boss's sharp mind and unique insights, always able to find the best solutions amid the complex business environment.
"Boss, you are truly talented and farsighted!" Ma Shiming sincerely praised. "No wonder you have achieved such brilliant success at such a young age. I truly admire you."
Today's Land Holdings Group was immensely powerful. After inheriting most of Jardines Matheson's local assets in Hong Kong, the group's strength had undoubtedly increased significantly, if not doubled, then certainly by a large margin.
As a result, Ma Shiming's workload had also become extremely heavy.
It wasn't until two hours later that Lin Haoran bid farewell to Ma Shiming and left Connaught Centre.
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