The birth of the Hong Kong Island family

Time flies, and it’s September 1983 in a blink of an eye.

On the 8th, the Hong Kong Association of Banks announced that starting from the next day, it would increase the deposit interest rate by 1.5%, which is 7% for savings deposits.

Even so, the Hong Kong dollar exchange rate fell to a new historical low. On the 14th, the exchange rate of the Hong Kong dollar against the U.S. dollar fell to 7.89 Hong Kong dollars per U.S. dollar. In just one year after Mrs. Thatcher visited the capital, the Hong Kong dollar devalued by one-third.

On the 16th, Hong Kong Financial Secretary Peng Lizhi openly stated: "It is impossible for the government to stabilize the Hong Kong dollar exchange rate at any specific level. This must depend on market forces."

He accused the Hong Kong branch of Hua Xia Bank of deepening the crisis by buying large amounts of U.S. dollars, and warned that the Hong Kong dollar's decline was unlikely to stop unless Hua Xia "gives a positive statement on the progress of the negotiations."

On this day, Lin Zhichao came to the Hong Kong Governor's House and met with the Hong Kong Governor Youde.

The Governor of Hong Kong took over from MacLehose last year (1982) and was a diplomat like MacLehose.

At the same time, he has a deep connection with China.

As the saying goes, 'cause and effect cycle', this Youde later suffered a heart attack when he visited the capital, and was the only Hong Kong governor to die in office.

Entering the Hong Kong Governor's office, Youde accompanied Lin Zhichao and sat down on the sofa.

Given Lin Chi-chao's status in Hong Kong and his relationship with Reagan, Thatcher, and the big guys, of course he, as a Hong Kong governor, had to address Lin Chi-chao as "Sir Lam" and treat him with great respect.

Of course, Youde is Lin Zhichao's direct 'leader', and the county magistrate is not as good as the current manager, so Lin Zhichao also respects Youde very much.

Soon, the two sides got down to business. Youde said: "Sir Lin, the Hong Kong dollar has been speculated by many forces recently, causing instability in the Hong Kong dollar. What do you think?"

The many forces he mentioned must include Hua Xia Bank. Of course, others are worried about asset stability, not pure speculation.

Lin Zhichao said: "The appreciation of the U.S. dollar has begun to appear since 1981. At that time, I also exchanged a lot of U.S. dollars in order to achieve the purpose of asset preservation. However, today's speculation and speculation have indeed become more and more intense, but I am very confident in the Hong Kong dollar. At present, there are just some people taking advantage of the negotiation situation to seek personal gain."

He has never exchanged U.S. dollars since mid-1982, so many people know that companies such as Cheung Kong and Hutchison have U.S. dollar cash flows, but they have nothing to say.

After all, at the end of 1982, the US dollar was still 6.49 Hong Kong dollars against the Hong Kong dollar. At that time, the Sino-British negotiations had begun. In mid-1981, the US dollar against the Hong Kong dollar was only 5.2. At the end of 1981, the US dollar against the Hong Kong dollar was only 5.5.

Seeing that Lin Zhichao believed in the Hong Kong dollar so much, Youde suddenly wondered whether Lin Zhichao was different from the rumors - he was rumored to be a gentleman, but now he seemed a bit cunning. After all, if you believe in Hong Kong dollars, why do you hold a large amount of US dollars in your hands?

So, he said: "I am very surprised that Sir Lin is so confident in the Hong Kong dollar. Sir Lin is also a business leader in Hong Kong, but now the Hong Kong dollar is being speculated. I wonder if you can give some advice?"

He deliberately discussed this issue in depth.

Lin Zhichao said: "Well, if the Hong Kong government promotes the linked exchange rate and maintains it at a specific level, it is indeed the best way."

Yoder immediately said: "No, speculation and speculation are hot now. If we strongly promote the linked exchange rate, we will definitely destroy the city wall."

Lin Zhichao nodded and admitted this. Forcibly promoting the linked exchange rate will only cause greater financial instability; only when the market exchange rate has stabilized, the Hong Kong government will formulate the linked exchange rate to maintain it at a specific level.

Youde took advantage of the situation and said: "Can Mr. Lin come forward to maintain the credibility of the Hong Kong dollar?"

Lin Zhichao was not surprised. He seemed to have known Youde's intention to come to him.

He did not shirk, but said directly: "I have never thought about letting companies move out of Hong Kong. I am more determined about the future of Hong Kong, so I am also very optimistic about the prospects of the Hong Kong dollar. Since Governor Youde said this now, I am willing to contribute. To share our own strength, that is to convert most of the U.S. dollars of our affiliated companies into Hong Kong dollars to show support!"

At this time, the Hong Kong dollar exchange rate has exceeded 8, and as far as Lin Zhichao knows, the later 'linked exchange rate' is 7.8, and Lin Zhichao has never thought of exchanging a large amount of Hong Kong dollars when they are the least valuable (9.6). First, it can only last for a short time. Time (the Hong Kong government will not sit back and watch the collapse of the Hong Kong dollar), and the second is that Lin Zhichao's status does not allow for 'speculation', at least on the surface.

The current exchange rate of 8.0 is already a little higher than the 'linked exchange rate', so there is no problem in converting most US dollars from Cheung Kong Holdings, Hutchison Whampoa, Wharf Group, etc. into Hong Kong dollars. The reason why the redemption is not completed is because many companies still need to develop overseas.

Youde was also stunned. Lin Zhichao agreed so readily!

After all, in business, when it comes to interests, there are a few businessmen who are willing to lose their own interests and do good deeds.

“With Mr. Lin’s support, I believe the Hong Kong dollar can be much more stable!”

"Your Excellency, the Governor of Hong Kong, is serious. I am just trying my best to maintain this hard-won prosperity."

Later, after the two chatted for a while, Lin Zhichao stood up and left.

Youde looked at Lin Zhichao's background and fell into thinking. His predecessor Sir MacLehose described Lin Zhichao to him - he was a man full of money-making cells and a real business god; but in addition, he was also a very A gentleman businessman who is willing to help people and give back to the society.

The rating is very high!

Today Youde finally felt the charm of Lin Zhichao for the first time.

Lin Zhichao has made so many contributions to Hong Kong that he is the idol of Hong Kong people. Of course, there are also Hong Kong people who originally advocate money society. Lin Chi-chao is an industrialist and shipping man who has brought jobs to tens of thousands of people in Hong Kong. In addition, Lin Chi-chao is very generous in donating to charity. He only supports the Hong Kong Polytechnic University and is already highly respected by the public.

In the following days, companies such as Cheung Kong Holdings and Hutchison Whampoa announced that they would support the stability of the Hong Kong dollar and convert their US dollars into Hong Kong dollars. At the same time, the U.S. dollars used by these companies were specially introduced in 1981 when the appreciation of the U.S. dollar started. The exchange decision was made for the stability of corporate assets. Not a single U.S. dollar was exchanged after Hua Ying negotiated.

Lin Zhichao himself also announced his support for the Hong Kong dollar in the media and was firmly optimistic about the development prospects of Hong Kong's economy.

With its huge influence, Hong Kong dollar speculation and speculation activities have decreased a lot for a while, and the Hong Kong dollar exchange rate has also fluctuated between 8 and 8.2.

Hutchison Building.

This building is located between the Furama Hotel (later the AIA Financial Center) and the Golden Gate Tower (later the Bank of America Building). In its previous life, it was rebuilt as the "Yangtze River Center Phase II" by Li Jiacheng in 2018.

In terms of floor area, it is larger than the buildings on the left and right sides. It is indeed a first-class high-quality Central building.

The value of such a building was actually worth more than one billion Hong Kong dollars at its peak in 1981. When Changshi Group purchased Hutchison Whampoa, the total market value was only about 2.4 billion.

However, today's Hutchison Whampoa has a market value of about HK$5 billion. It is not that the stock market environment has improved, but that Hutchison Whampoa has successively privatized Watsons, Hebao, Hutchison Real Estate, and Junyicang in the past few months. The total cost is 20% of new shares, plus HK$1 billion in cash flow.

Today, Cheung Kong holds only 44% of Hutchison Whampoa, and its stake has been diluted by 20%.

However, Lin Zhichao is not worried because he will continue to increase his holdings in the future. On the contrary, now that Hutchison Whampoa has privatized all its listed companies, it is equivalent to Lin Zhichao occupying more interests.

In the conference room.

Lin Zhichao was having a meeting with a group of foreigners. Everyone had already forgotten about the three "pseudo giants" Richard Richard, Peter Wei, and Xia Boyin, and they all cooperated with Lin Zhichao and Ma Shimin's changes to Hutchison Whampoa.

"The Hong Kong dollar speculation seems to be stabilizing, but in fact it is still easily affected by the general environment. Recently, Huaying is conducting the fourth round of negotiations, and I do not expect the results to be good. Once this news is released, there will be another wave of Hong Kong dollar The decline has even spawned a wave of panic buying of supplies. So, does the retail department reserve a large amount of cans, daily necessities, rice oil and other supplies that should be stored?"

In the first half of the year, PARKnSHOP launched an advertising campaign and price war that lasted for more than half a year. Although the price was not the lowest, it lasted the longest. The consequence of this is that the goal of monopoly has been initially achieved, Wellcome Supermarket has been dragged down, and Landmark has been even worse. As for other small and medium-sized supermarkets, the overall turnover has been reduced by 20 to 30%.

In the end, due to the intervention of the media and well-known figures in the business and political circles, PARKnSHOP closed its doors for a long time. After all, the influence of public opinion was huge.

Of course, in Lin Zhichao's view, this is just business talk and giving profits to the public, which is not considered "not practicing martial ethics" at all.

Watsons President Olander said: "Yes, we have maintained sufficient supply of goods in the past six months, especially since August, we have begun to reserve six months' worth of inventory."

This boss dealt a severe blow to Hong Kong's retail industry. Not only did he increase the share of supermarkets in the entire retail market and beat up department stores, but he also beat up small and medium-sized supermarkets. The most important thing is that Watsons Retail Group's market share has increased a lot in the past six months and has initially achieved a market monopoly.

If you add in the 7-11 convenience stores owned by Cheung Kong Group, Hong Kong's retail industry is really already a monopoly.

Lin Zhichao nodded with satisfaction and said: "All our companies must not refuse Hong Kong dollars, not under any circumstances. This is the bottom line issue that a Hong Kong company insists on!"

Olander said quickly: "No problem! This is also a matter of credibility of our company, and we will not make such a mistake."

Since Hutchison Whampoa privatized its listed companies, its profitability has also greatly increased. It is expected to reach normal profits of HK$1.2 billion this year. As for converting the US$300 million in hand into HK$2.4 billion, it is actually equivalent to more than 600 million. non-recurring profits.

The main business of this group of companies is not real estate and finance, so profits this year continue to grow.

After the meeting.

Lin Zhichao and Ma Shimin came to the office and started chatting.

Ma Shimin said: "When does the boss plan to take down Hong Kong Electric? As far as I know, the war between the Keswick family and Newbrick has come to an end. Simon Keswick should replace Newbrick as the Taipan. And Newbrick Bi Jian and Bao Fuda will step down this month."

This year, Land has sold an asset - a 38.8% stake in the Hong Kong Telephone Company. The buyer was Taitung Cable and Telegraph Company for a price of HK$1.4 billion. In addition, Yili also sold 51.7% of its shares in South African Leilis, cashing in HK$1.3 billion.

During this period, Lin Zhichao sent people to lobby Landmark to trade 'Exchange Building', 'Milk International', 'Wellcome Supermarket' and 'Hong Kong Electric Light Company' to Cheung Kong Group, but did not really take any action.

Because he knew that Niubijian was a stubborn ass, and it was not like he would lose assets such as Hong Kong Electric and the Exchange Building from him again, even if the company went bankrupt.

It’s not his own company anyway, so what is he afraid of!

Therefore, Lin Zhichao planned to wait until Simon Keswick came to power before launching a real attack.

The two assets sold by Jardine Matheson and Land are completely worthless for the liabilities of the two companies.

Land's highest market value is only HK$15 billion, but its liabilities this year have reached HK$20 billion, and its losses this year will reach more than HK$1 billion (interests engulf profits).

"Let's wait until Ximen comes to power. As long as the Keswick family is not stupid, they all know that a strong man cuts off his wrist. And the only companies in Hong Kong that can escape billions of cash are our Cheung Kong companies. As for overseas companies, they don't even dare to accept Hong Kong dollars now. It is even less likely that they will come to Hong Kong to invest.”

Ma Shimin said: "Indeed, no wonder the boss is not anxious at all! Land's debts are already much higher than its own assets. Without Jardine's rescue, the only way out is bankruptcy. And Jardine is also unable to protect itself, and the only pity is that overseas profits are not ideal. Yes, Newbingham sold the shares of Hong Kong Telephone Company to Cable and Telegraph Company, thus depriving our Hutchison Telecommunications of development opportunities."

Lin Zhichao said with a smile: "British companies will fade out of Hong Kong sooner or later, so there will be opportunities in the future. Buying these assets is not buying antiques, it is not necessarily necessary. What's more, all our previous funds are occupied by US dollars, and now we are just exchanging them , this time it was equivalent to making more than 600 million, so I didn’t regret at all that the Hong Kong Telephone Company was sold at that time!”

The two communicated for a while and reached a consensus.

We must give priority to developing assets in Hong Kong, and then develop overseas when we have sufficient strength.

In terms of being based in Hong Kong, Ma Shimin and Lin Zhichao have maintained a high degree of consistency, which is very important.

And Ma Shimin also understands that no matter who wins the negotiation in the end, as long as the answer is revealed, Hong Kong's economy will immediately return to the upward channel.

Based on this, he also firmly believes that local development in Hong Kong is more suitable for the current Hutchison Whampoa, especially when the Hong Kong Electric Lighting Company has not yet acquired it.