raknovel Chapter 106 A Double Act to Force Officials to Execute Their Dogs
Chapter 106 A Double Act to Force Officials to Execute Their Dogs
The joint petition went unanswered.
The Hong Kong government has no intention of rescuing the market, in fact, it does not need to, and cannot, rescue the market.
The so-called market rescue is more like a bank rescue. Only when banks face the risk of bankruptcy will regional financial imbalances occur, while the risk of stockholders going bankrupt is actually quite limited.
The problem is, the bank is fine!
Foreign capital is flowing in and out, while domestic banks are not only fine, but are also enjoying high interest rates and quality assets.
As for stock investors, they shouldn't be helped either. If they find that the Hong Kong government and banks are bailing them out, and that the profits are theirs while the losses are the Hong Kong government and banks', then why don't they just continue speculating in stocks?
The market rescue efforts won't save anything, but the four organizations must be merged. To this end, Financial Secretary Sir John Adamson and members of parliament took two hours out of their busy schedules to chair this meeting.
The motorcade arrived at the Government Offices and entered the Financial Secretary's conference room. After nodding and greeting Li Fuzhao and Hu Hanhui, Chen Guanjiang took his seat at the end of the table, still wearing a deadpan expression.
It's not hard to understand that this guy was captured by the Japanese during the war, and they squeezed a lot of war funds out of him. He suffered inhuman torture, which inevitably changed his personality and led him down a different path from Ho Tung.
Five minutes before the meeting was scheduled to begin, Xia Dingji arrived with representatives and money. The first thing he did upon entering was to spot Chen Guanjiang and glare at him fiercely.
While the others were puzzled, Chen Guanjiang knew perfectly well what was going on. He pretended not to know and appeared extremely mature with his calm demeanor.
Xia Dingji glared at him but made no other move, and began the discussion: "Hong Kong cannot accommodate four stock exchanges; they must be merged into one. What are everyone's opinions?"
"no problem!"
"I agree!"
"I agree!"
With the Hong Kong government taking the lead, and amidst a stock market crash, no one dared to refuse the merger.
After all, none of the four exchanges, including the Hong Kong Stock Exchange, had a formal exchange license. To be precise, Hong Kong had never had such a thing before.
From its inception, the Far East Club was challenged for its legality, but no relevant law could be found. The Hong Kong Club, for example, has been operating without a license for more than half a century.
As exchanges were established one after another, the Hong Kong government hastily granted temporary exchange licenses in an effort to stop the chaos and stopped granting any more exchange licenses, thus legitimizing the ban on the establishment of exchanges.
All four exchanges held temporary licenses with a validity period of twenty years, indicating that they were destined to merge.
Who would dare refuse the merger and have their license suspended upon expiration? That's why everyone is sitting here calmly to discuss the merger.
but!
How will the merger take place? Who will merge with whom? How will the shares be distributed? Who will become the chairman after the merger? The interests involved are too deep and too broad, not just limited to the four of you here. These are the questions that need to be considered.
Seeing that no one spoke up, Chen Guanjiang offered a suggestion: "Since it's a merger of four stock exchanges, the shares should be divided equally."
"How can that be?"
Li Fuzhao immediately retorted, "My Far East Association has the largest transaction volume, the most shareholders, and the most assets. Why should we distribute the shares equally?"
Chen Guanjiang scoffed softly, "Why should equity be allocated based on transaction volume? I could have said it should be allocated based on the number of listed companies! My Kowloon Club has 1332 listed companies, who can compare to me?"
"Don't you know what kind of companies the Kowloon Society is? They've made a laughing stock on the international stage, they're a complete mess in Hong Kong! Even nightclub owners and pesticide sellers can go public..."
"This was manipulated by the former chairman. If these listed companies violated regulations, Sir MacLehose and Sir Charles Heard will hold them accountable. If no one is held accountable, it means there was nothing wrong with these companies going public..."
“…………”
Everyone present knew the relationship between the two. Watching them work together seamlessly, they not only brought up the issue of equity distribution but also steered the conversation toward Chen Pufen.
The Far East Club accounted for 41.8% of the total transaction volume last year, which is the sum of the Hong Kong Club and the Gold and Silver Club. If we add the Kowloon Club's 7% of the total transaction volume, the merger will directly result in a situation where the two clubs dominate.
If the shares are divided equally, then there is no problem.
Although Far East suffered a loss, the two parties had an agreement that Chen Guanjiang would transfer 10% of the shares to Li Fuzhao. The two parties were confident in controlling the United Exchange, and they would stand together through thick and thin.
This won't work, that won't work, and merging is definitely not an option.
Chen Guanjiang and Li Fuzhao did not mind dissecting the issue, as long as the principles of fairness and justice were upheld, they had no objections to how fair or just the issue was handled.
Hu Hanhui and Qiu Cuo remained silent throughout, simply observing Xia Dingji's actions and following his orders.
In all fairness, Li Fuzhao is indeed qualified to lead the Stock Exchange; his status, qualifications, background, ability, and management skills make him the best choice.
The problem was that the Hong Kong government really disliked Li Fuzhao and was worried that the financial industry would be monopolized by Chinese capital. The establishment of the Far East Club did indeed lay the foundation for the chaos of the four clubs and the stock market crash.
Moreover, while the Hong Kong government is suppressing stock investors, Li Fuzhao publicly spoke out in the media against MacLehose's actions to curb stock trading. How could the Hong Kong government be willing to see Li Fuzhao become the sole dominant figure?
The Hong Kong government considered the best candidate for the position of "Ball Chop," whose status as Sir John Chater's last disciple in the 20th century made even the members of the Jockey Club's board of directors pale in comparison.
Unfortunately, a war destroyed a genius, and now all he thinks about is making money, making money, and making money.
It was under his leadership that the Hong Kong Club was gradually surpassed by the Far East Club, and the club still made money recklessly, regardless of anything else.
To this day, no one knows how much money this guy has, how many company shares he has held over the past twenty years, or how many shares he inherited from Sir Charles Chater.
Hu Hanhui's background is too complicated. He still has a very close relationship with Southeast University and is deeply associated with Chinese-funded banking groups and Ho Yin of Macau. He is not a suitable candidate to attend the meeting of the chairman of the Stock Exchange.
And look at Chen Guanjiang, that little mad dog!
Replacing Chen Pufen as the Kowloon Association president, he has taken decisive measures to reorganize the organization and fulfilled his responsibilities. With a clean and honest background in Hong Kong, he could be a candidate for the president of the Hong Kong Stock Exchange.
Moreover, once Chen Guanjiang becomes the chairman of the Hong Kong Stock Exchange, his alliance with Li Fuzhao will collapse on its own. To avoid being sidelined, he will inevitably use the Hong Kong Club, the Gold and Silver Club, and the Far East Club factions to check and balance him.
But the problem is, this little mad dog is only fifteen years old!
The Hong Kong government can't possibly appoint a fifteen-year-old boy to head Hong Kong's most important financial stock exchange, can it?
Also, this little mad dog!
A few days ago, an application was submitted to change the name of the Kowloon Stock Exchange to the Kowloon Stock Exchange.
Xia Dingji tore the item up and had it sent back to him, insisting that it be smashed on the ground in front of him.
Normally, the Financial Secretary should not interfere with a company's name change, but Xia Dingji couldn't help but tear up the rejection document.
Even if the matter were taken to England, to Queen Elizabeth II, Xia Dingji would still refuse to change his name.
If this mad dog is appointed chairman, will the Stock Exchange also submit a request to change its name? Will it be renamed the Stock Exchange Dog Exchange, the Dog Exchange Exchange, or the Stock Exchange Dog Exchange?
"Cough cough..."
Facing the intense gazes, Chen Guanjiang cleared his throat and said, "Since no one can convince anyone else, let's just let the results speak for themselves."
"Based on this stock market crash, each exchange should consider who can turn the tide and improve the stock market, and who should serve as chairman to lead the development of the United Exchanges..."
"Sure! Who's afraid of who?" Li Fuzhao immediately replied.
“…………”
Everyone remained silent in response to Chen Guanjiang's suggestion.
With no time to develop Hong Kong, Hu Hanhui's focus has always been on the gold and silver exchange, and Li Fuzhao is still the only one who has a chance of running for chairman of the exchange.
Chen Guanjiang's foundation is still shallow. Without the help of the Far East Association, he can't even maintain stability in Kowloon. How can he compete for the chairmanship?
These guys are always like this; they fall silent when faced with difficult questions.
Chen Guanjiang, however, continued, "In order to cope with the stock market crash and promote the stable development of the financial market, the Kowloon Club has prepared two completely opposite rescue plans."
"One initiative is to delist a batch of companies without listing qualifications, and another is to call on listed companies in Kowloon to repurchase shares to reduce the number of stocks on the market."
"Secondly, it will encourage a number of companies to go public and allow them to issue bonds and even convert debt into equity, thereby increasing the number of stocks traded in the market..."
"Don't mess around!!"
Xia Dingji could no longer contain himself and slammed his fist on the table, saying, "Do you know the consequences of doing this? Don't discuss personal grudges in meetings anymore."
"Consequences? Messaging?"
Chen Guanjiang retorted, "Your Excellency, is it I who acted recklessly without considering the consequences, or is it someone else? Why can others do it but I cannot? Give me a reason!"
Chen Pufen can push nightclubs to go public, and Chen Guanjiang can push dance halls to go public.
Chen Pufen can push for the listing of pesticides, and Chen Guanjiang can push for the listing of rat poison.
Everyone here is a Kowloon Association president, so why is it that Chen Pufen can be the first in line, but Chen Guanjiang is not allowed to be the fifteenth?
Is studying antennas really that impressive?
Chen Guanjiang can also research AI, VR, and AR, which will be more scientifically grounded than the Hong Kong antenna, and will also create an even bigger economic hole.
Allowing Chen Pufen to go free means that it's not wrong to list a bunch of messy companies, and it's not wrong for Chen Guanjiang to list even more and more ruthless companies.
The handling of Chen Pufen demonstrates that shady companies will not be allowed to go public, and Chen Guanjiang is willing to cooperate with the Financial Secretary to manage Hong Kong's economy well.
After all, the Companies Ordinance has not yet been drafted; to be precise, it is waiting for Chen Pufen to draft it.
Therefore, Chen Guanjiang was very clear that Xia Dingji wanted to give Chen Pufen an important position. If Chen Pufen were to make a comeback, there would be endless troubles. Therefore, he even threatened Xia Dingji to suppress him.
As the president of the Kowloon Association, he will have a lot of contact with Xia Dingji in the future. Even if he offends the Financial Secretary, there will be plenty of opportunities to make amends. However, if he misses the chance to crush Chen Pufen, there will be little chance for him to do so again.
"The Far East Club will also cooperate with the Kowloon Club to rescue the market and stabilize the healthy development of Hong Kong's financial sector." Li Fuzhao knew that the two were in the same boat and made it clear that he firmly stood on Chen Guanjiang's side.
"The Financial Secretary...will hold Chan Pu-fen accountable!"
"Sir, you uphold justice and are upright and incorruptible! The Kowloon Club will do its utmost to stabilize the economy. Please wait and see."
Faced with pressure from the two chairmen, Xia Dingji had no choice but to compromise temporarily, as maintaining economic stability was the most important thing.
Wait and see? Do they really think he doesn't understand Eastern culture? If we don't see him severely punish Chen Pufen, this mad dog will continue to cause trouble, and then it won't be about maintaining stability or the economy anymore.
The ducks are the first to know when the river warms in spring!
As Financial Secretary, Xia Dingji was keenly aware that Hong Kong was about to reach a turning point.
Over the past two decades, Hong Kong has taken on a large number of low-end manufacturing industries and is about to enter a period of transformation due to increasingly high labor costs. However, the direction of this transformation remains to be discussed.
With the South Vietnamese war ending inconclusively and the Western powers, led by the United States, retreating, the hammer and sickle forces were at an unprecedented height and had to be contained.
The fact that the university won three consecutive wars against South Korea, India, and Siam—wars that seemed impossible to win no matter how you calculated them—along with the successful live-fire bombings in actual combat, greatly enhanced its strategic importance.
Two years ago, Hong Kong regained its legitimate seat in the United Nations and its status as one of the five permanent members of the UN Security Council. Coupled with the visit of the first US president to Hong Kong at the beginning of last year, England realized that Hong Kong was in a precarious situation.
By recruiting two world-class shipping magnates to serve on HSBC's board of directors, HSBC is preparing for any eventuality.
If the situation becomes delicate, we can use boats to take away our personnel, machinery, and resources and say goodbye to Hong Kong.
Fearing that it will ultimately benefit others, how can Hong Kong transform from a labor-intensive to a technology-intensive industry?
Moreover, upgrading to a technology-intensive industry is tantamount to snatching teeth from the mouth of a rising island nation. Doesn't England itself need technology-intensive manufacturing?
The inevitable result will be a transformation into the financial services industry, which not only eliminates the need for effort but also allows for the return of funds to the local community, and makes it easy to withdraw cash and abscond at any time.
Of course, whether it's upgrading to a technology-intensive industry or transforming into a financial services sector, England doesn't want to lose this Pearl of the Orient, especially given the current decline of its global influence.
By transforming into the financial services industry, the exchange's status will be elevated infinitely. It would be unwise to offend a promising current chairman for the sake of a former chairman who has already lost.
Hu Hanhui and Qiu Chua didn't have many thoughts on it, and whether Chen Pufen lived or died was not of much concern to them, but they caught the phrase "proposed repurchase" in Chen Guanjiang's mouth.
The proposed share buyback by a company is a practice that originated in the 50s on the American Stock Exchange. However, since the proposed buyback was not formally approved, regulators considered it to be market manipulation.
Until the late 60s, when the American economy was mired in stagflation and dividends were restricted, many companies turned to returning cash to shareholders through proposed share buybacks.
Two years ago, island nations introduced "employee stock ownership plans" and "management stock option systems" to retain talent or limit foreign ownership ratios. In the past two years, these have become popular in the capital markets of the United States and island nations.
This financial method is extremely novel; no one in Hong Kong has ever used it before. However, Chen Guanjiang was able to see through it immediately and apply it to quell the stock market crash.
It is evident that this mad dog has an excellent understanding of the global financial market and must also be familiar with the island nation's "employee stock ownership plan," and he happens to own a company that is listed in Kowloon.
Hu Hanhui glanced at Chen Guanjiang; knowing the guy as he did, he was perfectly capable of doing it.
Under the guise of stabilizing the stock price and rescuing the market, they planned to repurchase company shares, and then reward themselves with shares under the pretext of leading the company to go public, guiding the company's development, and raising the stock price.
Thinking about this, Hu Hanhui was truly shocked by Chen Guanjiang's meticulously planned schemes, shameless spirit, and ability to manipulate the financial market...