novellhall Chapter 102 Dog Unravels the Hunt Between Two Heroes
Chapter 102 Dog Unravels the Hunt Between Two Heroes
Logically speaking, the Li Peicai family should have been the happiest people at the event when Chen Guanjiang took over the Kowloon Club.
However, after the conversation, Li Fushu had a dark expression on his face. After private talks with several closely related families, all of them had dark expressions.
The crowd whispered amongst themselves, trying to find out what had happened between the two sides. But the situation didn't seem like a conflict, leaving everyone puzzled.
"Mr. Chan, hello! I'm Sir Michael Sham. Congratulations on becoming the president of the Kowloon Association!"
"Mr. Sir Michael Sandberg, I've long admired your name! Winning the Kowloon Club deal wouldn't have been possible without HSBC's support; thank you so much..."
“…………”
Chen Guanjiang would not regard Shen Bi as a general manager. Shaya, the HSBC tycoon who succeeded Sanders last year, was mainly tasked with digesting the impact of the expansion in recent years.
In fact, as the handpicked next HSBC executive director, Sir Michael Sandberg's influence within HSBC had already surpassed that of the nominal executive director, Sir Michael Sandberg.
With two terms combined, Sir Michael Sandberg was powerful enough to hold HSBC for at least fifteen years. It was impossible to find a way to build a good relationship with him, but unexpectedly, he delivered himself to our doorstep.
After the pleasantries were over, Shen Bi slowly began, "Mr. Chen, you've made such a fortune in the stock market. What are your plans now?"
For banks, deposits are liabilities, especially such a large amount of deposits.
HSBC needs Chen Guanjiang to convert cash into assets that can be pledged to HSBC, thereby driving up asset prices in Hong Kong.
For Chen Guanjiang, cash is no match for inflation, especially given the current rapid devaluation of cash.
Chen Guanjiang needs to convert cash into assets, and the devaluation of cash will drive up asset prices. This is the way capital operates.
Does HSBC have any plans to sell its stake in Wireless?
Chen Guanjiang tentatively asked, but only received a smile and no answer. He sighed inwardly and continued, "For spot gold mortgage loans, how much leverage can HSBC provide?"
"Yes... five times." Shen Bi narrowed his eyes slightly.
Gold prices are destined to rise, but in the eyes of capital, the increase is actually quite limited.
If the increase is less than 16% and fails to keep up with inflation, it is equivalent to devaluation. Even if the increase exceeds 16%, it cannot be considered a clever capital operation. Gold has never been an investment, but a safe haven.
Prior to this, Sim Bi thought he knew Chen Guanjiang very well, but he never expected that he would still misjudge him.
This once-mad dog, which loved to gamble with high leverage, has now become more conservative in its investment approach after accumulating a massive cash flow of HK$4.7 million.
It's not surprising, really. This crazy dog swallowed up Kowloon Club and also got a 25% stake in TVB.
Whether it's digesting the Kowloon Club or vying for control of TVB, there's simply not enough energy to open up new battlefields, and the huge cash flow can't just sit back and collect interest while waiting to be diluted.
The rise was too rapid and the foundation too shallow. Chen Guanjiang really needs time to settle down, digest, and accumulate talent reserves.
In this light, it seems clear-headed that the so-called "mad dog" image is nothing more than a disguise used by those at the bottom to climb upwards.
"Five times? Thank you!"
Since partnering with HSBC, we've always used triple leverage, and increasing it to five times doesn't offer much benefit.
Gold is inherently stable, and even a fivefold increase carries no risk; this can only be considered the beginning of a closer collaboration between the two parties.
"You're welcome! Excuse me for a moment."
"Okay, you go ahead with your work..."
Shim Pil-min took a sip of his drink and politely left, his eyes full of anticipation.
With absolute control over the equity, no matter how capable Chen Guanjiang is, he has no chance of gaining management control of TVB. In comparison, the Kowloon Club's problems are the more pressing issue.
With the stock market crash, change of ownership, messy accounts, and mergers, the Kowloon Club must be in complete chaos. Sir Michael Sandberg is eager to see how Chan Kwun-kong will stabilize the situation and gain complete control of the Kowloon Club, or whether this will be the end of it.
Seeing that the conversation between the two parties had ended, Chen Guanjiang was left alone. Nearby guests apologized to those around them and rushed over, but were beaten to it by the women who had been secretly watching.
"Hello Mr. Chen, my name is Qiu Mengtang..."
"Mr. Chen, we were one family five hundred years ago!"
"I can't believe you've achieved so much at such a young age. May I have a drink with you?"
“…………”
For a moment, Chen Guanjiang seemed to have fallen into a spider's web, his still-growing height surrounded by milky-white snowflakes.
Back in the "Jackson Yee Milk" incident, when Chan Kwun-kong exposed himself to the spotlight, his HK$3000 million profit attracted the attention of women of all shapes and sizes.
Unfortunately, Chen Guanjiang has always kept a low profile, so the women he meets have no chance to get to know him.
The manipulation of the listing of the Kowloon News has caused a stir, and now there are even rumors that it has acquired the Kowloon Club.
How could they possibly sit still? Ignoring Chen Guanjiang's age, they all rushed over.
Girls who frequent such occasions generally come from wealthy families, and some socialites even come from prominent clans.
Women from higher social classes are more aware that they will not inherit the family's assets; they will only receive a small portion of the wealth.
Similarly, they understand the poverty of the lower classes and know all too well that after the family splits up, they are destined to fall from their current social class.
If you don't want to fall into a lower social class or live a life of poverty, you can only seek opportunities to move up or marry someone from the same social class.
The higher one climbs, the more one tries to climb, the less space there is to be allocated, and even among those of the same social class, there are very few marriage partners who can fully inherit the family fortune.
They didn't even dare to dream of marrying Chen Guanjiang; all they needed was to get Chen Guanjiang's first blood, and that relationship would guarantee they wouldn't fall into a lower social class and could even rise to a higher one.
"Excuse me, excuse me..."
Chen Guanjiang spread his arms and used his elbows to push the crowd aside before escaping from the Spider Cave to Hu Hanhui's small group. The faces of Li Fushu and Li Fuzhao's group and others became even more unsightly.
"Hello, Chairman Hu," Chen Guanjiang said, raising his glass in greeting.
"President Chen, please have a seat..."
Hu Hanhui, unaware of their purpose, also raised his glass and said, "Let me introduce you. This is Mr. He Shanheng from Hang Seng Bank, Mr. Wu Jieyi from Wing Lung Bank, and Mr. Ma Jinshan from Chinese Bank..."
Among the group of these Chinese-owned banks, Hang Seng Bank was the strongest. Unfortunately, in the 65 stock market crash, HSBC took away 51% of its shares.
Wing Lung Bank and Chinese Bank were also affected, and they have barely managed to recover in the last two years, but unfortunately they are about to be dragged down by the real estate market again.
"He Sheng, Wu Sheng, Ma Sheng..."
Chen Guanjiang recognized each person but made no comment, so they knew they weren't there to see him and made an excuse to leave politely.
Once only the two of them remained on the terrace, Chen Guanjiang slowly spoke, "Chairman Hu, I'm planning to buy some gold as a hedge against inflation. I wonder how the exchange operates on that?"
Hu Hanhui readily explained, "Gold trading is conducted through contract buying and selling, with five taels as one unit. Both parties pay a margin and agree on a delivery date. If delivery is not made by the due date, interest and fees will be incurred..."
Chen Guanjiang was completely baffled and it took him a long time to understand this strange trading method and the philosophy behind it.
First of all, Hong Kong implements gold import and export controls, which means it is easy to get gold in but difficult to get it out, since no country or region wants its domestic gold to be lost.
In fact, other countries are also willing to sell gold to private individuals or companies, even in large quantities at extremely low prices, but require the individuals or companies to transport it themselves and refuse insurance.
then…
If shipped by sea, the ship will sink; if transported by air, the plane will crash. Even if transported secretly through clandestine channels, it will be destroyed by black holes, aliens, or various supernatural forces.
Don't take on a job you're not qualified for.
In ancient times, even within their own territory, dynasties required heavy military escorts for transporting goods. In modern times, small countries lacking sufficient strength dare not transport too much. Transporting large quantities of physical gold from a small pond is tantamount to suicide.
Although the Hong Kong Gold and Silver Exchange was named after Hong Kong, it was actually a privately run gold and silver trading institution without the participation of the Hong Kong government, and was not protected by the British Commonwealth.
The Gold and Silver Exchange doesn't have much physical gold reserves either, especially since it was robbed seven years ago. At that time, it was reported that 15 tons were stolen, but the actual amount is unknown.
in addition…
"Paper gold," which was created in 1969, belongs to the International Monetary Fund's "Special Drawing Rights" and is used for international gold reserves. There is no concept of gold speculation in it.
The Winnipeg Stock Exchange in Canada began experimental trading last year, and even the United States has not officially launched gold futures contracts, let alone Hong Kong.
A combination of factors has created a trading system for gold and silver that is neither entirely physical nor entirely paper-based nor entirely futures-based, yet integrates all three elements into a unified whole.
The trading unit is truly amazing.
Sima liang is an ancient Chinese traditional unit of weight. The rule that sixteen liang equals one jin is also the origin of the idiom "half a jin is eight liang".
According to the conversion, 37.429 grams is one Sima liang, so 598.864 grams should be one Sima jin. However, the ancient conversion method was 604.8 grams to one Sima jin.
As for where the 5.936 grams that were missing from the 1 jin of Sima went?
以及一司马两等于1.2033盎司，可一盎司是31.1034克才对，1.2盎司是37.3241克又怎幺会与37.429克一司马两对等？
Five Sima liang is directly equal to six ounces, which is a standard unit of measurement for transactions. Once a transaction is completed, there is a minimum of 5 grams of gold.
All I can say is how amazing the ancient system of place value was, and how incredible the gold and silver trading market was.
That's how the trading system works. It's take it or leave it. Who the hell is begging you to buy?
Even so, both buyers and sellers still need to pay a 1% commission to the Chinese Gold & Silver Exchange Society.
Compared to the 2.5% commission for buying and selling in the brokerage firm, the 1% commission for buying and selling in the gold and silver trading industry is quite favorable. But can gold and stocks be considered the same thing?
No wonder so many tycoons have emerged in Hong Kong's gold and silver exchange industry since the war; it would be a miracle if they didn't make a fortune.
Of course, to run such a highly profitable gold and silver trading center, one must have an excellent reputation and extraordinary abilities.
Hu Hanhui served as chairman for 70 years and was able to open a gold and silver securities exchange just one year later, which speaks volumes.
Chen Guanjiang even strongly suspected that this guy might be backed by the person in Macau, after all, that person was the one who started his fortune by exchanging gold and silver before, during, and after the war and quickly gained immense influence.
Interest and fees are much easier to understand!
Both parties agree on a transaction period, and the contract is locked in the trading exchange. Upon expiration, the parties can choose to postpone delivery.
If prices rise and the seller delays delivery, the seller pays interest and fees to the buyer, a practice commonly known as adding to the position.
If prices fall and the buyer postpones delivery, the buyer pays interest and fees to the seller, a situation commonly known as "low-positioning".
If the price remains stable, both parties agree to extend the contract without interest or fees, a process commonly known as closing out a position.
Of course, the delayed delivery is not indefinite; instead, the interest rate increases by one level every three days.
一级11%、二级15%、三级18%、四级22%、五级26%，超过五级则强制平仓，息费年利率可参照实时银行利率调整。
In reality, it's hard to bear the interest and fees at Tier 3, and Tier 4 interest and fees can already be considered a default. If it really comes to Tier 5, even if you don't get liquidated, the 26% annual interest rate can still crush your position.
Futures trading is inherently ruthless, and trading methods that conflate the three types of trading are even more deadly.
Seeing that he understood the transaction method, Hu Hanhui asked, "How much is Chairman Chen planning to invest?"
"HK$23.5 billion! How many units can that buy?"
Chen Guanjiang's honest answer made Hu Hanhui's eyelids twitch. Regardless of whether HSBC could provide such a large amount of financing, saying it out loud at least proved that they had the strength.
As is well known, the price of gold is determined by a variety of factors.
Before the war, the dollar was priced at $20.67 per ounce, but everyone knew that $20.67 could not buy an ounce of gold, as the free market had already driven the price of gold up to $40 per ounce.
After the war, the dollar was pegged to gold at $35 per ounce. During peacetime, when the London gold market reopened, it quickly broke through $64 per ounce.
The US dollar announced a 10% devaluation of gold, priced at $42 per ounce. In reality, London gold has already broken through $100 per ounce, and it's unknown how much private gold trading companies have profited.
“…………”
Hu Hanhui did not answer directly, and even suspected that the other party was playing a trick on him.
The Gold and Silver Exchange priced at US$106 per ounce, so 6 ounces cost US$636, which is equivalent to five taels of silver as a standard trading unit.
In early February this year, the exchange rate was just adjusted to 1 US dollar to 5.085 Hong Kong dollars, which is equivalent to 3234 Hong Kong dollars and five taels of silver per standard trading unit.
HK$23.5 million!
115 million units?
115 tons?
As the chairman of the Chinese Gold and Silver Exchange, Hu Hanhui had a general estimate of Hong Kong's gold reserves.
The Hong Kong government has been providing financial support to England, so even 5 tons of gold reserves would be an overestimation. The major trading companies, including gold smelters, combined only amounted to about 7-8 tons.
On the contrary, due to war factors and the inherent metal-loving nature of the nation, wealthy people and gold shops like to "hide" gold reserves of at least 100 tons.
As for the gold and silver exchange, 99% of the transactions are based on warehouse receipts, and the less than 5 tons of physical gold are only occasionally brought out for show.
In other words, all the circulating spot gold in Hong Kong isn't enough for this guy to eat? The Gold and Silver Exchange's "empty market" simply can't handle such a large volume.
Chen Guanjiang wasn't familiar with the gold reserves, but he understood what the other party was worried about. He frowned and said, "If I can accept a higher offer, could we trade the entire amount?"
"How much is the price?"
"What's the current price?"
"HKD 1952 per standard unit!"
"I can raise it to HK$2200."
"You can give it a try."
Hu Hanhui immediately smiled, his eyes already calculating how to use Chen Guanjiang's funds to attract overseas spot gold and overseas funds into Hong Kong.
The price increase of nearly 10% is enough to attract a large influx of funds and risky spot gold, which is a good thing for the Chinese Gold & Silver Exchange and even Hong Kong.
"However, this will increase my costs..."
Chen Guanjiang was well aware of the impact raising prices would have on the Hong Kong gold market, and of course he was unwilling to give up the benefits.
In terms of capital alone, the Chinese Gold & Silver Exchange Society earned at least HK$1000 million from the inflow and outflow of funds, not to mention the hidden benefits brought to the Society by the massive influx of funds that actively drove up prices.
"What are Chairman Chen's conditions?"
"First: The 1% commission on purchases will be eliminated!"
With such a large amount of capital, they can buy at a premium and there's no worry about finding sellers. There's no reason for them to take away the 1% commission, and instead expect the other party to go to great lengths when they sell.
"no problem."
"Secondly: I need a board seat at the Chinese Gold & Silver Exchange Society. Since the funds are provided by HOTO, I need HOTO and Bank of East Asia to be on-site to supervise the transactions."
"certainly!"
It's perfectly normal for such a massive amount of capital to demand a board seat, and there's absolutely no problem with hiring Bank of East Asia and East Asia for oversight. It would be crazy to not regulate such a huge volume of transactions.
"Third: I need the Gold and Silver Society to fully cooperate with me in maintaining stability and controlling the Kowloon Society."
"good…"
Hu Hanhui sighed inwardly and nodded in agreement, inwardly praising Chen Guanjiang's strategy of using Chen's strength against him.
Previously, when it was learned that Chen Guanjiang had acquired the Kowloon Club and was likely to join forces with the Far East Club to expand their influence in the merged Hong Kong Stock Exchange.
Hu Hanhui and Qiu Chou exchanged glances, preparing to take advantage of Chen Guanjiang's unstable foundation and deliver a powerful blow.
Unexpectedly, Chen Guanjiang had this trick up his sleeve, making it difficult to target the Kowloon Club again. Hu Hanhui couldn't afford to ruin the HK$23.5 billion gold purchase.
"So...it's a pleasure working with you?"
"It's a pleasure working with you."