Chapter 628
A Great Victory
In August, international institutional investors attacked the Hong Kong dollar's linked exchange rate for the third time, and the Ping An Index also touched 10000 points on August 1.
Before this, the "Five Tigers of the Chen Family" were eager to make a move, but Chen Guangliang temporarily suppressed them. After all, he knew that the international speculators' attack on the linked exchange rate might not be genuine, and their real purpose might be to target the Ping An Index futures.
If we don't lure them in, how will international speculators fall for our tricks?
Clearly, the time was ripe.
August 1st was supposed to be a day when the Ping An Index should have plummeted.
When the market opened in the morning, Chen Wensheng was already standing in the trading hall of Ping An Investment, personally on the front line. Dozens of traders were waiting for instructions, and the entire hall was silent, afraid of making a sound.
"The market has opened, and it opened significantly lower. The Ping An Index is at 9750 points."
Chen Wensheng immediately said, "Begin."
With just two simple words, the group leaders quickly gave instructions: "Buy! Buy! Run into the market as I told you beforehand!"
In an instant, the largest 'buyer' in Hong Kong's history entered the market, with HK$20 billion in funds eagerly devouring various blue-chip stocks and quality stocks that day.
"100 lots of Sun Hung Kai Properties. 500 lots of New World Development."
"HSBC 200 lots. Bank of East Asia 1000 lots."
"Hong Kong Airlines 600 lots. Cathay Pacific 800 lots."
"Hutchison Whampoa 700 lots, HK Electric 500 lots."
One victory after another echoed through the trading hall. At this moment, everyone finally let loose, as they were competing against international speculators. Of course, on their side, there were also the Hong Kong and mainland governments.
On August 5, speculators dumped over HK$20 billion in a single day. The Hong Kong Monetary Authority, contrary to its past passive approach, used Hong Kong's fiscal reserves to absorb the entire amount, stabilizing the exchange rate at HK$7.75 to the US dollar, with interbank lending rates rising only slightly.
On August 6, speculators dumped more than HK$20 billion worth of shares. The Hong Kong Monetary Authority (HKMA) then took a new approach—not only did it buy up all the shares, but it also deposited the absorbed Hong Kong dollars into the Hong Kong banking system. This helped stabilize interbank lending rates and prevented a stock market decline from being inevitable if interbank lending rates rose.
On August 7, the stock market fell sharply due to poor performance of some blue-chip stocks that had announced their interim results, with the Ping An Index falling below 8800 points.
At this very moment, Ping An Investment's daily capital absorption surged to 100 billion yuan, instantly attracting the market's attention.
The Hong Kong Monetary Authority's "one-man show" led him to personally visit Chen Wensheng at the Ping An Bank Building. As he walked out of the building, he finally smiled.
At the same time, international speculators launched a full-scale attack, shorting a large number of Ping An Index futures contracts. Their costs were around 9500 to 10500 points. If the index fell by one point, they could make a profit of HK$50 per contract.
Their short selling positions are in the 8800-10500 point range, and their target is below 7000 points.
On that day, the Ping An Index only fell by 2%, and rumors were rampant in the market.
However, at this time the Hong Kong Monetary Authority was also accumulating shares in the stock market, so it did not suspect that the Chan family had already entered the market.
What followed was an unforgettable weekend.
As the new week begins, the Ping An Index remains hovering above 8800 points, while market trading is unusually active.
The market has finally received some shocking news: Ping An Investment has made a large-scale acquisition of 33 blue-chip stocks, with the purchase amount being unimaginably large.
Ping An Investment is the financial representative of the Chen family, and the Chen family represents the economy of Hong Kong.
Sing Tao Daily: Ping An Investment made a large-scale purchase of blue-chip stocks yesterday (August 10), conservatively estimated at tens of billions of yuan.
Oriental Daily News: Mr. Chen Wensheng, Chairman of Ping An Financial Group, stated that Hong Kong's economy is highly resilient and his long-term outlook is positive. Furthermore, the market has an abundance of undervalued stocks, which will attract a large number of blue-chip and high-quality stocks for long-term investment.
On August 11, the market was quite shocked. Chen Wensheng's speech was no less impressive than that of the HSBC taipan, instantly turning the tide. The Ping An Index rose above 9000 that day, surging by 8 points.
On August 12, speculators widely publicized that the RMB would depreciate sharply, causing the black market exchange rate for RMB in Shanghai, Guangdong and other places to drop to 9.5 RMB per US dollar.
Speculators spreading rumors of RMB devaluation is a diversionary tactic aimed at undermining confidence in the Hong Kong dollar. In addition, they are also spreading rumors about the instability of mainland banks, again with the goal of creating conditions to attack the Hong Kong dollar. Besides spreading misinformation, one overseas fund even offered options for the decoupling of the Hong Kong dollar from its linked exchange rate on August 12, 1998.
The Ping An Index fell to 8800 points again.
On August 13, CK Asset Holdings Chairman Chan Man-kit delivered a speech, which was published in all Hong Kong newspapers:
Cheung Kong Holdings remains steadfastly optimistic about Hong Kong's future development. Short-term setbacks are merely a consequence of external circumstances and have not shaken the fundamentals of Hong Kong's economy.
Hong Kong's economy no longer relies solely on real estate, finance, trade, and industry; now, it also has initiatives to "revitalize Hong Kong through technology" and "revitalize Hong Kong through culture." I believe Hong Kong's economy will recover quickly.
If Chen Wensheng's speech was comparable in authority to that of a HSBC taipan, then Chen Wenjie's speech represented the Chen family's stance and carried more weight than the governor's.
On that day, the Ping An Index surged 300 points, reaching as high as 10200 points at one point.
On August 14, Hong Kong Financial Secretary Donald Tsang held a press conference to announce that the government was serious about taking action, directly using the Exchange Fund to invest in the stock market and buy 33 constituent stocks of the Hang Seng Index. That day, the Hang Seng Index bucked the market trend, rising 8.5% to close at over 11000.
At that moment, the trading hall was filled with applause, and morale was instantly boosted.
On August 26, reinforcements from the central government arrived, bringing HK$60 billion and US$128 billion in foreign exchange reserves, giving Hong Kong even more confidence.
August 28th is the decisive day.
Speculators pulled out all the stops, dumping Hong Kong dollars and stocks in a last-ditch effort.
But the Hong Kong government wasn't going to sit idly by; it directly poured money into blue-chip stocks like HSBC Holdings.
At the same time, Ping An Investment has purchased HK$1000 billion worth of shares, becoming the largest buyer in the market, accounting for 3.5% of the total market capitalization of Hong Kong stocks.
That day, the Hong Kong government, the Chan family, and some Hong Kong investors forcefully pushed the Hang Seng Index to 12000 points. When the closing bell rang at 4 p.m., cheers erupted in the trading room.
Hong Kong won this battle, and it was a resounding victory.
国际炒家普遍建仓在9000~10000点沽空，相当于他们每张合约要亏10万港币左右（2000X50）。
This was a victory unlike any he had ever achieved in his previous life.
Because of the influence of the Chen Guangliang family, many investors have joined the ranks of those buying at the bottom, and the amount of money involved is enormous.
If it were just the Hong Kong government buying in, it would at most push the index to 10000 points (it was only 7900 points in the previous life), but in this life it has driven international speculators crazy.
Speculators have placed large bets on short positions in August futures, so even if they roll over their positions, the costs will be very high, and huge losses will be inevitable once they close out their positions.
The Wall Street Journal: International speculators didn't lose to the Hong Kong government, but to the Chan family of Hong Kong. The Chan family's investment in securities was almost as large as the Hong Kong government's (approximately US$130 billion). However, the Chan family's influence was enormous, and many investors saw an opportunity and rushed in to buy at the bottom.
Oriental Daily News: The people of Hong Kong and the Hong Kong government have achieved this victory. The Hong Kong financial defense battle in August shocked the world, with some calling it a battle of the century. The success of Hong Kong's financial defense not only turned the tide, greatly enhancing its ability to withstand the Asian financial crisis, but also demonstrated Hong Kong's courage to say no to international financial predators and demand financial justice. It has set a valuable example for developing countries and regions to achieve self-reliance, prevent financial risks, and safeguard financial security, winning praise both at home and abroad.
It is reasonable to deliberately downplay the influence of the Chen family. During this period, Chen Wensheng and Chen Wenkai used HK$1050 billion to purchase securities, and a large number of local investors also "reversed their stance" and followed suit to buy at the bottom, which boosted the Ping An Index.
The six women alone—Kwan Ka-wai, Lee Ka-yan, Lee Chi, Cheung Man, Donatella, and Monica—raised HK$60 billion to enter the market, with Kwan Ka-wai and Lee Ka-yan's investment companies accounting for the majority.
At the Chen family villa complex in Discovery Bay, Chen Guangliang was having a small gathering with his four wives and concubines. The fighting outside didn't bother them too much.
Time flies. Yan Renmei is 83 years old this year, Jiang Meiying is 85 years old, Audrey Hepburn is 69 years old, and Si Yezi is 65 years old.
The saying "time cannot defeat beauty" is perfectly embodied in them. Although they have indeed aged, their elegant temperament, good figure, and well-proportioned features make it clear at a glance how beautiful they were in their youth!
The four women sat together and started playing mahjong. Neither Yan Renmei nor Jiang Meiying were addicted to the game; they only played occasionally as a way to exercise their minds.
Chen Guangliang sat on the sofa, looking at magazines and newspapers, occasionally glancing at them with concern, his expression leisurely and content.
Everyone has gotten used to Chen Guangliang's "improper behavior" and hasn't mentioned that kind of thing for many years, so as not to affect their relationship or the unity of the family.
"Husband, are Wenhai and Julie having some relationship problems lately?" Jiang Meiying suddenly asked Chen Guangliang, who was sitting on the sofa. Chen Guangliang put down his magazine and said with a smile, "They're both so old, their eldest son is already in college, what kind of trouble are they up to now!"
Chen Wenhai is his and Jiang Meiying's youngest son, and he is 46 years old this year.
Jiang Meiying hesitated for a moment, then left the matter to her husband: "Since Wenhai sold Atari a few years ago, he has gradually developed a taste for parties and is always surrounded by beautiful women. To be honest, Julie has tolerated him for a long time, but now that both of their sons are in college, she really can't take it anymore and says she wants to divorce Wenhai. Originally, this is a matter of personal choice, but I've been thinking—if we divorce, will it affect the four children? I'm always trying to mediate between them."
If Chen Wenhai weren't Chen Guangliang's son, inheriting only a small amount of his father's charm, and if Julie hadn't chosen to endure until today for the sake of the children and the family fortune, she wouldn't have done so.
Since selling Atari, Chen Wenhai hasn't had a full-time career; he's only invested in some businesses, though he still receives guidance from Chen Guangliang. With his considerable wealth, he gradually became complacent.
Chen Guangliang sighed, "I'm getting old, and things are getting busier. Have Julie and Wenhai come to Hong Kong so I can mediate."
Jiang Meiying nodded. Everyone respected the head of the family very much, and even the 11 daughters-in-law listened to their father-in-law very much.
Yan Renmei then said, "It's not that you're old and have more things to do, but that there are more family members, and there are bound to be some things to do. If you can manage them, then manage them; if you can't, they're all in their forties or fifties, and they're all grandfathers or fathers."
That's true. Chen Guangliang's eldest son, Chen Wenjie, is already a grandfather.
Chen Zerui, the eldest grandson, is 40 years old this year, and his eldest son is already 14 years old.
In his lifetime, Chen Guangliang will certainly be able to achieve the goal of having five generations under one roof.
A few days later, Chen Wenhai and Julie arrived in Hong Kong together.
After being persuaded by Chen Guangliang, Julie chose not to divorce for the time being, but their marriage existed in name only until Julie met her true love again, and at the same time helped her to receive a fortune of 10 billion US dollars in installments.
Julie has great respect for her father-in-law, Chen Guangliang. She said, "Father, I know you are thinking of the children and me, so I will always respect you and always regard you as my father."
Chen Guangliang's personal charm goes without saying. His persuasion this time focused on two main points: First, the mental health of the four children and their gradual adaptation to their parents' separation. Of course, the two sons are already in college and their personalities are maturing, which is also very important. Second, the $10 billion that Jolie can receive is because the four children will receive the vast majority in the future, so Jolie will receive less. The installment plan is naturally based on the concern that Jolie might marry the wrong person.
"I should be thanking you for agreeing to these conditions. Although your relationship with Wenhai has broken down, you are a mother of four, and I am a grandfather of four; we will always be family. Finally, as a father, I would like to advise you that finding a partner, especially a soulmate, is very important in the future."
"Thank you, Father. I will definitely heed your advice!"
The two hugged.
Julie was then led away by her mother-in-law, Jiang Meiying, leaving behind a nervous Chen Wenhai.
Even though Chen Wenhai is 46 years old this year, he is still afraid in front of his father!
"It's okay to play around with women, but don't ruin your brain or get ripped off by them. You can give money to women, but it should be as charity."
Chen Wenhai quickly replied, "Yes, Father, I will definitely prioritize the future of my four children."
She breathed a sigh of relief; at least her father was no longer interfering in her private life.
He was naturally a womanizer, but he was suppressed by his father and obeyed the family mission, so he always kept his feelings to himself.
After he had four children (three sons and one daughter), his true nature gradually came out.
It was only because of his strong personal charm that Jolie endured it for ten years.
Chen Guangliang continued, "By the end of next year, we should be able to cash out our internet and technology stocks. By then, your assets should be over 10 billion US dollars. I will oversee you to set up a trust fund with 10 billion US dollars in cash or securities and 'Blizzard Entertainment' assets, with you and your four children as beneficiaries. In addition, the family office will buy a portion of Blizzard Entertainment's shares. Do you have any objections?"
Although he was given away the vast majority of the wealth at once, Chen Wenhai did not have the courage to say no.
I will listen to my father.
In order to resolve the issues of the second-generation family members, Chen Guangliang also consulted Chen Wenming about the issues of the third generation.
Chen Wenming's second son, Chen Zeqi, started his own business with more than HK$5 million. He first bought a listed company in Singapore in 1994, and then began investing in real estate and insurance, during which time his assets increased significantly.
Subsequently, in 1997, he invested in real estate properties near Tokyo subway stations in Japan. When the financial crisis hit, the HK$80 billion project almost went bankrupt. Fortunately, his father, Chan Man-ming, had Wharf Holdings invest HK$29 billion to buy 50% of the shares and provide an annual management fee of HK$1.9 million.
Knowing he had family backing, Chen Zeqi acquired a 64-acre plot of land from the Hong Kong government free of charge in 1998 from Dong Jianhua to develop 'Cyberport'. This would later become a famous example in the industry of using technology to package real estate.
"We need Wenkai's full support for the Cyberport project, otherwise it will just be a pure real estate project packaged as high technology!"
Chen Wenming immediately said, "Cheung Kong Industrial Group has reached an agreement with PCCW to relocate Midea Games Entertainment and Manga World to Cyberport. Midea Electronics and other companies will also be considered."
It is evident that no other family in the world can match the unity of the Chen family.
The business principle of "keeping clear accounts even between close brothers" does not exist in the Chen family.
Chen Wenkai's Cheung Kong Industrial Group strongly supports Cyberport, which is certainly taking into account his father's "science and technology to revitalize the country" strategy, intending to make Cyberport Hong Kong's "Silicon Valley"; but his unwavering support for his nephew is clearly a symbol of family unity and brotherly harmony.
"Yes. Zechi is fine. With the support of his family, he's thriving."
If it were any other family, it would naturally be considered a 'failure'. Even for the Li family in the previous life, Cyberport was ultimately just a real estate project, and the whole thing was a failure.
"I will keep a close eye on things; I can't let Father worry all the time!"
Chen Guangliang waved his hand, indicating that he didn't mind such a small favor.
As long as it's not a matter of principle, it can be salvaged. Chen Zeqi's actions themselves were not wrong; it was just that he chose the wrong time.
Of the remaining 8 billion yuan investment, the loss would only be around 3 billion yuan, which is negligible for Chen Wenming's faction. If held long-term, they might not even lose money, as Japan's political situation is stable and its economy will gradually recover.
A few days later, accompanied by Chen Wenjie and Chen Wensheng, Chen Guangliang inspected the underground vault of the Ping An Bank Building.
This has always been Hong Kong's most heavily guarded underground vault, on par with HSBC's vault.
Looking at the 'gold bars' that had already begun to be stored, Chen Guangliang felt a sense of relief.
The family office planned to spend HK$1000 billion to purchase approximately 1150 tons of gold bars between 1998 and 2003, with half of that stored in Hong Kong alone.
With gold now below $300 per ounce, it implies a potential 15-fold increase in value, reaching $4500 per ounce. Therefore, his family office alone could potentially amass HK$1.5 trillion in wealth from gold alone.
Of course, during the peak of 2012-2013, some of the assets would definitely have to be used for "buying low and selling high," at least 200-300 tons.
At the same time, the 'family office' will also invest in various global assets such as securities, real estate, and land, which could reach a wealth of HK$2.5 trillion in the future.
As the third and fourth generations gradually grow up, Chen Guangliang has begun to arrange family members in various positions in the family office to prevent outsiders from knowing the details of the family fortune.
Even the CEO of a family office will eventually be a member of the family, since there are enough family members anyway.
Let's go back.
As Chen Guangliang walked out of the vault, he felt a sudden sense of powerlessness. He realized that he had already achieved all his goals and aspirations in life.
Chen Wenjie and Chen Wensheng quickly followed, and they also noticed that their father seemed somewhat disappointed.
"I'm really getting old. There's not much I can do to help you anymore!"
Chen Wenjie quickly said, "Father is in good health. With you here, even if you don't say anything, it's a blessing for everyone!"
Chen Guangliang smiled.
Being a 'spiritual leader of the family' doesn't seem so bad. (End of Chapter)