Chapter 622
Barings Bank
The year 1995 arrived.
The high heels clicked and clacked. Guan Jiahui and Li Jiaxin were breathtakingly beautiful. A real estate agent followed in front of them, but he didn't dare to look at them for long, for fear of offending him and ruining the business, or even incurring the wrath of a powerful figure.
There are countless rumors circulating in Hong Kong media about Kwan Ka-wai, the owner of IT Fashion. Mainstream media still believe that she is just a second-generation star, but with a keen business sense, which is why she has built up a huge fortune and business at a young age. Of course, some tabloids have also published articles saying that Kwan Ka-wai is Chan Man-kit's confidante and received guidance on real estate investment; or that she has close ties with the Chan family and has gained some advantages from them.
Regardless, Kwan Ka-wai's founding of 'I·T Fashion' in 1983, starting with selling parallel imports and then acquiring commercial properties at bargain prices in 1984, has become a widely recognized "legendary story of a beautiful female boss" in the business world. Furthermore, the media considers Kwan Ka-wai to be very decisive and capable in property investment.
As for Li Jiaxin, she is not well known to the media, after all, she is only Guan Jiahui's close friend and a director of IT.
"Ms. Kwan, the owner is asking HK$30 million for this sea-view villa in Turtle Bay, Stanley. If it weren't for the impending '97 crisis and the recent sluggish property market, the owner wouldn't be in such a hurry to sell! If you're interested..."
Guan Jiahui looked at Li Jiaxin, who decisively stepped forward and said, "As long as there are no other disputes or accidents with the property management, if we like something, we can talk to the owner!"
The agent quickly replied, "Absolutely no trouble at all! In Hong Kong, who would dare to disrespect Ms. Kwan!"
Ignoring these comments, Guan Jiahui said, "Then let's arrange it as soon as possible."
Li Jiaxin added, "We have other things to do."
The entire process took less than an hour, and the purchase intention was basically reached.
The real estate agent watched in astonishment as the sports car and bodyguards drove away, and couldn't help but say, "They're really rich."
Throughout the entire process, neither of them frowned at the 3000 million yuan price tag, and after only a brief look at the property, they basically decided to buy it.
"Could she really be the confidante of Hong Kong's richest man?"
the other side.
Sitting in the passenger seat of the sports car, Li Jiaxin said to Guan Jiahui, who was driving, "This feels so good! This feeling is really great!"
Since becoming Chen Guangliang's mistress, she has been "buying low and selling high" more than once or twice, but each time it gives her an extraordinary sense of excitement. This feeling is actually more exhilarating than making money itself.
Guan Jiahui joked, "Was it as enjoyable as what you had with Mr. Chen?"
Li Jiaxin said coquettishly, "What do you think, sister?"
After the two women had a bit of a tiff, they drove the car directly to Jardine's Lookout and looked at a detached house (villa).
This detached house has five floors, a usable area of approximately 3700 square feet, and an additional 3700 square feet garden. It is equipped with an elevator, a swimming pool, a large living room, five bedroom suites, and a garage.
The two women fell in love at first sight again, and without batting an eye at the price of HK$4250 million, they were ready to make the purchase.
In just one morning, the two women finalized an investment worth over 7000 million yuan. Of course, they had informed the real estate agent in advance, which led to these two opportunities today.
At noon, Guan Jiahui and Li Jiaxin had lunch together at the Shangri-La Hotel and talked.
"Sister, I want to invest in the Stanley property, you invest in the Jardine's Lookout property!"
Guan Jiahui said with a smile, "Why not compete for the bigger one?"
Li Jiaxin said, "Who told me I'm the younger sister? Besides, I'm not as good as you!"
Guan Jiahui straightened her back, which immediately made Li Jiaxin want to explode. She retorted defiantly, "It's about the same, no need to compare!"
Even the smallest thing can't be accepted!
Guan Jiahui said with a smile, "Who's comparing with you? It's decided then. This time we'll buy at the bottom, focusing on speed and accuracy. Anyway, he'll back us up."
Now that stocks have fallen more than 30% from their peak, they've started buying in.
This is happiness—accumulating cheap chips little by little.
As for when to sell, Mr. Chen will naturally tell them the timing.
"Oh, right," Li Jiaxin immediately said, "I want to reserve one of the four villas in Tianbigao. I'm going to move there with my child in the future. Let's make the deal soon!"
In 1990, Kwan Ka-wai spent 1 million to acquire 'HSBC Grand House (Cloud Peak Residence on the top of Gough Hill)', and then carried out a long-term reconstruction into four independent villas 'Sky High'.
Guan Jiahui didn't tolerate Li Jiaxin's behavior and said directly, "You're quite the schemer, trying to rip me off. But it's not impossible. I'll take it from you at cost price, 1 million per building!"
"Are you robbing me?"
After some haggling, Kwan Ka-wai sold the property to Lee Ka-yan for HK$8000 million.
She knew that if Li Jiaxin wasn't satisfied, she would definitely complain to Mr. Chen, and then she might end up giving it away for nothing.
Meanwhile, Kwan Ka-wai and Lee Ka-yan began buying office buildings and shops in Hong Kong on a large scale. For almost all the properties, they only needed to pay 30% upfront, with the remainder financed by bank loans. As for securities, they leveraged their investments by around five times.
With a net worth of HK$5 billion, the two women possess extraordinary purchasing power.
A magnitude 7.3 earthquake struck southern Hyogo Prefecture, Japan, at 5:46:52 a.m. (Japan Standard Time) on January 17. The epicenter was located in northern Awaji Island and was triggered by the Rokko Fault. The earthquake caused numerous casualties and property damage.
When Chen Guangliang saw the news, he showed no expression—this was an inevitable historical event, and he felt neither sorrow nor joy at Japan's loss.
He never tried to change history; the only thing he said about 'changing' was Hong Kong's economic development and future, which he has been influencing step by step.
Florence, Italy.
Chen Wenxi and Chen Daiyi visited Gucci's headquarters and met with President Dessall, Creative Director Tom Ford, and others.
After Harrods acquired Gucci in 1992, it immediately implemented a series of reforms, including replacing the president and creative director. Tom Ford did not disappoint, winning numerous awards at Paris Fashion Week in 1993 alone, and Gucci subsequently began to turn a profit.
President DeSoll reported: "Last year (1994), Gucci's sales increased to $3.5 million, with profits reaching $6000 million, marking the second consecutive year that profit growth has exceeded 50%."
If Maurizio, the third generation of the Gucci family, heard this news, he would be furious. In 1992, the company was losing tens of millions of US dollars; now it's making a profit of 6000 million US dollars.
With his mixed-race features, Chen Wenxi said steadily, "Thank you all for your hard work in giving the Gucci brand a new lease on life. Going forward, Harrods Group will continue to acquire new brands to expand the Group's strength in the luxury goods sector, while also hoping to achieve synergies. Of course, the Gucci brand remains the core of Harrods Group."
Everyone applauded.
The Hepburn family is a renowned business tycoon family in the West. The family was founded by Audrey Hepburn, who started with Barbie dolls and, over the course of forty years, has grown into a vast family with businesses spanning the globe.
Audrey Hepburn's two sons and daughter were all very successful. They were not content with the family business, Mattel, but instead created a legendary second generation.
Take West Hepburn, for example. Her Canary Wharf Group has become a model for commercial real estate in Europe, developing not only Canary Wharf in the UK but also the 'Canary Shopping Centre' brand. She also serves as the president of Harrods Group, further expanding its presence in the luxury goods sector.
Then, Chen Wenxi added, "Harrods Group has already implemented a dual headquarters strategy in London and Milan, and I will be even closer to everyone in the future!"
Everyone laughed.
After leaving Gucci, Chen Wenxi and Chen Daiyi went straight to the headquarters of Harrods Group in Milan, accompanied by Gucci President Desol.
Today, Harrods has changed its name to 'Harrods Group', clearly not wanting to emphasize 'department store' but rather intending to increase its investment in the luxury goods sector.
Upon arriving in Milan, another meeting was held, with only one focus: to expand the Harrods Group by acquiring more brands.
Chen Wenxi began by stating, "Next, Harrods Group will establish five divisions through acquisitions: Wines and Spirits, Fashion and Leather Goods, Perfumes and Cosmetics, Watches and Jewelry, and Luxury and Boutique Retailing."
The high-ranking officials present at Harold's were impressed by the plan and began to join the discussion.
Of the five sectors, the representative brand for wine and spirits is naturally 'Latour,' a national treasure of France, but now in British hands; for fashion and leather goods, there is currently only one brand, Gucci; for perfumes and cosmetics, and watches and jewelry, no suitable target has yet been found; and for luxury goods and boutique retail, there is naturally the Harrods brand.
Overall, once this strategy is formulated, the next step will naturally be a continuous stream of acquisitions.
Following this, Director Chen Daiyi stated, "I am quite familiar with the founders of the Saint Laurent brand, and I want to persuade them to sell Saint Laurent and join our Harrods Group. Here is the information about Saint Laurent."
Now, Chen Daiyi is gradually adapting to her new role: assisting her brother in managing the Harold Group. Of course, she has long since lost her status as heir, but she still owns 15% of the shares.
Soon, everyone agreed to the acquisition, and at the same time, they began to work on finding a suitable brand in Italy.
The next move by Harrods will naturally shock everyone, as they seek to acquire various luxury goods.
On February 26, the Bank of England declared Barings Bank bankrupt.
The collapse of Barings Bank made the world laugh at the British banking regulatory system.
Founded in 1762 by Sir Francis Baring as "John and Francis Baring Company," Barings Bank has grown into one of the oldest commercial banks in Britain, renowned for its flexibility and innovative operations. The bank has financed projects such as the Louisiana Purchase, participated in international projects including copper mining in the Congo, financing the Australian wool trade, and the Panama Canal project. In 1886, it sparked a market frenzy with the issuance of "Guineas" securities. In the early 20th century, it became the bank appointed by the British Crown, with businesses encompassing securities brokerage, corporate finance, and asset management. In 1993, its assets reached £59 billion.
Barings Bank differs from ordinary commercial banks in that it does not develop deposit-taking business with ordinary customers. Therefore, its funding sources are relatively limited, and it must rely on its own strength for survival and development. In 1803, when the newly formed United States purchased Louisiana from France, the funds used came from Barings Bank. In 1886, Barings Bank issued "Guinness" securities. Buyers flooded the bank with application forms, requiring police intervention to maintain order. Many queued for hours, buying small amounts of stock and then selling it later. By the time they sold it the next day, the stock price had doubled. At the beginning of the 20th century, Barings Bank had the honor of gaining a special client: the British Royal Family. Due to Barings Bank's outstanding contributions, the Barings family successively received five hereditary titles. This is a world record, thus laying the foundation for Barings Bank's prominent position.
This is the bank that went bankrupt because "an employee mistakenly opened a bank account." Of course, in essence, Barings Bank went bankrupt because of "speculating on the Nikkei index," and the Nikkei index itself plummeted due to the earthquake in Japan.
At this time, Chen Wensheng, representing Ping An Financial Group, was actively contacting the Bank of England and the entire London financial system to acquire Barings Bank, making it the flagship enterprise for Ping An's investment in Europe and the United States.
Ping An Investment is undoubtedly a top-tier investment bank in Asia, but in Europe and America, it mainly invests in securities and real estate.
It's true that Barings Bank went bankrupt, but in fact, Barings Bank is not without assets. It manages billions of dollars in assets for other people, businesses, and governments!
Ping An Investment not only values the Barings Bank brand, but also hopes to enter the asset management business in Europe and the United States through the acquisition.
"Sir Will, Asia has been one of the regions with the best investment returns in recent decades. If we acquire Barings Bank, it will allow us to strengthen Barings Bank's investments in Asia."
In the Bank of England's office, Chen Wensheng humbly and confidently explained the advantages of Ping An Investment to the Bank of England.
The Bank of England is essentially the central bank of the United Kingdom, so any acquisition of Barings Bank would naturally require its approval.
Sir Will whispered among himself and several Bank of England directors before looking up and asking, "How much are you willing to offer?"
Chen Wensheng smiled and then held up one finger, a move that did not surprise the directors of the Bank of England.
Sir Will replied, "That's $1! But if that's the price, I hope you can come up with a better solution to Barings Bank's problems."
Chen Wensheng said confidently, "We will solve the current problems of Barings Bank; we will also attach importance to the future development of Barings Bank and are very confident. Moreover, we will not cancel the name of Barings Bank, but will carry it forward."
"Okay, we'll discuss it later and get back to you."
In reality, Barings Bank had become a hot potato for British finance at this point. It didn't matter who bought it; the important thing was to mitigate the impact that Barings Bank had had on the British financial world.
If anyone is interested in Barings Bank, what matters is its qualifications and its importance.
Ten days after Barings Bank collapsed, the 233-year-old bank was acquired by Ping An Financial Group for a symbolic price of £1.
At the press conference in the UK, Chen Wensheng said in front of all the reporters: "Barings Bank will not disappear, it will only become greater!"
The applause lasted for a long time.
In fact, prior to this, it had already been revealed that ING Group was also interested in Barings Bank.
But the final destination was Ping An Financial Group, which surprised many people because Ping An Financial Group is a Hong Kong financial company. Are they really suited to Europe?
During the interview, a spokesperson for the Bank of England also stated: "Their (Ping An Financial Group) demonstrates greater sincerity and possesses a better investment plan, which is crucial for Barings Bank." (End of Chapter)