Chapter 948
It's time to spend these hundreds of millions of dollars!
As dawn breaks, the villas on Sze Hung Road along the Xiangjiang River are immersed in tranquility.
Lin Haoran slowly awoke from his beautiful dream, his mind gradually returning to clarity.
Having been away for several days, he couldn't help but feel a bit guilty and indebted to Guo Xiaohan, his lawfully wedded wife.
After all, he had spent all his time with Keiko Yamada these days, leaving much of his time elsewhere.
However, Guo Xiaohan was always understanding and never questioned Lin Haoran's whereabouts. She simply responded with gentleness and tolerance.
Perhaps it was this unspoken understanding that moved Lin Haoran.
Last night, he was exceptionally attentive, spending intimate moments with Guo Xiaohan, expressing his love and desire to make amends through his actions, which made his wife smile with satisfaction.
After washing up, I was about to play with my son when I received a phone call, and it was an overseas call at that.
The call was from Su Zhixue, whose voice was filled with barely suppressed excitement.
"Boss, everything in Brazil has been successfully wrapped up."
Lin Haoran sat in the study chair, holding the receiver, his gaze unconsciously drifting to the horizon outside the window.
The morning light was piercing through the thin mist, turning the surface of Victoria Harbour into a shimmering gold.
"explain."
“Net profit, $154.3 billion.” Su Zhixue’s tone was as if he were reporting something commonplace, but the slight tremor in his voice betrayed the turmoil in his heart. “Adding the $158.1 billion from Mexico, we have earned a total of $312.4 billion in the Latin American market in the past six months.”
$312.4 billion!
The number flashed through Lin Haoran's mind. Converted to Hong Kong dollars at the current exchange rate, it amounted to HK$2062 billion!
Affected by the Hong Kong property crisis and the public's lack of confidence in Hong Kong's future prospects, the Hong Kong dollar exchange rate against the US dollar has been rising steadily during this period, and the depreciation of the Hong Kong dollar is simply unavoidable.
Last month, the Hong Kong dollar to US dollar exchange rate almost reached 7 to 1, but it has fallen back this month and is currently still around 6.6 to 1.
But Lin Haoran, as a time traveler, knew very well that this was not the final figure for the devaluation of the Hong Kong dollar.
After all, he knew that the future exchange rate of Hong Kong dollars to US dollars would be 7.8 Hong Kong dollars to 1 US dollar.
Even at the current exchange rate of 6.6 to 1, a sum of HK$2062 billion is still terrifying.
Two hundred billion Hong Kong dollars in 1982, and it was all in cash!
Lin Haoran was silent for a few seconds, the corners of his mouth slightly turned up, but his tone remained calm: "You've worked hard. The team will be rewarded as previously agreed. As for you personally, we'll talk about it when you get back."
"Boss, I..."
"No need to refuse," Lin Haoran interrupted him. "This is what you deserve. First, withdraw the funds safely, in batches, to the company's accounts in the United States, the United Kingdom, Switzerland, France, and other countries. Don't attract anyone's attention."
"Understood, boss. Please rest assured. In addition, I have also dispatched teams to finish closing out the positions in Argentina and Venezuela. Our investment in these two countries is not too large, totaling 20 billion US dollars."
Argentina's foreign debt has exceeded $400 billion, and Venezuela's situation is not much better. As a country that is completely dependent on oil exports, Venezuela's situation is actually more serious than Mexico's.
Therefore, based on our projections, we expect to earn $80 billion to $100 billion in profits in these two countries, and we anticipate being able to close out our positions completely by the end of this month.
I will travel to Buenos Aires, the capital of Argentina, the day after tomorrow to personally oversee the situation and ensure everything goes smoothly.
"Okay, thank you for your hard work. After you finish this, go back to New York and arrange your work. When you bring your family back to Hong Kong for the Chinese New Year, I will give you a proper welcome-back dinner."
Su Zhixue's voice revealed a hint of emotion: "Thank you, boss. Then I won't be polite."
After hanging up the phone, Lin Haoran sat in the study for a while before going out for breakfast.
At nine o'clock in the morning, he was already in his personal office on the 51st floor of the Kang Le Building.
As usual, Liu Xiaoli stood behind Lin Haoran, massaging his shoulders and occasionally refilling his tea.
However, Lin Haoran's mind was not on Liu Xiaoli at this moment.
Having earned $312.4 billion in Latin America, and with a high probability of earning another $80 billion to $100 billion, even he is finding it hard to remain calm at this moment.
He knew very well what this meant.
This means that the amount of funds he can mobilize exceeds Hong Kong's annual GDP, not including the available assets in Hong Kong.
Last year, in 1981, Hong Kong's GDP for the entire year was only US$310.55 billion.
Lin Haoran already possesses more than that amount of cash.
More importantly, it's cash.
It is cash that can be mobilized at any time, has no debt, and belongs entirely to him personally.
In 1982, a time of global economic recession and countless business failures due to broken cash flow, having such a large cash reserve meant that he could launch an attack on any asset in any market, at any time.
This sense of power gave Lin Haoran an unprecedented feeling of security.
However, the money was spent, not saved.
Therefore, at this moment, all he could think about was how to spend those hundreds of billions of dollars.
Most importantly, you need to spend your money wisely and make it generate more money, rather than just letting it sit in a bank account, which is just a number.
Lin Haoran picked up his teacup, took a sip, and looked out at the towering buildings.
Seeing that he was deep in thought, Liu Xiaoli softened her movements and did not disturb him.
How to spend hundreds of billions of dollars?
If this question were posed to any businessman in Hong Kong, they would probably be so excited they couldn't sleep.
But for Lin Haoran, this was a project that required precise calculations.
Having too much money means you shouldn't spend it recklessly.
Blind investment only dilutes returns, while large-scale capital inflows into a market inevitably drive up asset prices, which in turn increases one's own costs.
Therefore, they must disperse.
We must simultaneously deploy our resources across multiple markets and sectors, allowing funds to seep into every corner like water, rather than sweeping everything away like a flood.
"Perhaps I should go to America," Lin Haoran murmured.
He himself was somewhat surprised when he said those words.
But upon closer reflection, it makes perfect sense.
The United States is the world's largest market and a highly developed, multi-tiered, globally dominant financial market system.
He now holds hundreds of billions of dollars. Apart from a portion reserved for reserves, a portion invested in Oracle Semiconductor, and a portion to continue investing in mainland China, the remainder needs to be used to find high-quality investment targets globally.
The United States is undoubtedly of paramount importance.
Although he has been secretly acquiring shares in many listed companies in the United States through Universal Investment Company, these activities are not suitable for public disclosure at this time.
After all, the source of funds and background of Universal Investment Company remains a mystery on Wall Street.
Exposing it too early will only attract unnecessary attention and trouble.
But this time, Lin Haoran plans to make some more direct and public investments in the United States.
It's not about making money, or rather, it's not just about making money.
Rather, it was to establish a deeper foundation in the United States and pave the way for a longer-term future strategy.
"Boss, are you going to America? Can you take me with you? I've never been to America before!" Hearing Lin Haoran's mutterings, Liu Xiaoli immediately stopped what she was doing, her eyes sparkling as she looked at him, her tone slightly coquettish. Lin Haoran turned his head, glanced at her, and a slight smile played on his lips: "If you leave, who will watch my office?"
"It's just a few days..." Liu Xiaoli pouted, "I haven't taken a vacation in a long time."
"Alright then." Lin Haoran thought about it and realized that she should indeed go out for a walk. Besides, having a beautiful woman by your side to serve you while you're out and about is certainly a pleasure.
"But let me make this clear from the start: I won't have time to go shopping with you in America. I'm going there on business."
"It's okay, it's okay, as long as I can go, I just want to see what's so attractive about America!" Liu Xiaoli was as happy as a child, clasping her hands together, her smile as bright as the morning light outside the window.
Liu Xiaoli, who grew up in mainland China, had the strongest impression of the United States from childhood to adulthood, which was probably the phrase "a damned capitalist country." It wasn't until she came to Hong Kong that she truly came into contact with what capitalism was.
The American movies playing on the streets, the Coca-Cola on supermarket shelves, the brightly colored jeans worn by young people, and the arrogant American businessmen all filled her with curiosity about this distant country.
"Alright, then take a good look." Lin Haoran smiled, picked up his teacup, and took another sip.
Liu Xiaoli happily agreed and worked even harder with her hands.
If the two of them were in bed right now, she would probably be even more enthusiastic.
However, since this was in the office, she could only behave herself by massaging shoulders and pouring tea.
Just then, there was a knock on the door.
Liu Xiaoli stopped massaging him abruptly and deliberately distanced herself from Lin Haoran.
Lin Haoran's office in Hong Kong is located on the top floor of the Kang Le Building. Not many people come to this floor to knock on the door, but each one of them is of high status.
Having been with him for so long, Liu Xiaoli had long since learned when to maintain what kind of distance.
"Come in."
The door was pushed open, and it was He Shanheng from Hengsheng Group who appeared.
As soon as Lin Haoran looked up and saw He Shanheng, he immediately jumped up from his chair, took a few steps to greet him, and said with a smile, "Uncle He, if you need anything, you can just have someone call me over. There's no need for you to come all the way here. I'm hoping that you can lead Hengsheng Group to move forward for a few more years!"
Although He Shanheng was nominally Lin Haoran's subordinate in the group, Lin Haoran respected him from the bottom of his heart because of his contributions to Hengsheng Group at the age of 82.
Hearing this, He Shanheng smiled and waved his hand, his voice loud and cheerful: "Haoran, what are you saying? You're being too polite. It's true that you are the boss of Hengsheng Group now, but my old arms and legs can still move. The doctor always tells me to move around more, it's good for my health."
Lin Haoran smiled and invited him to sit on the sofa. Liu Xiaoli had already quickly poured tea, then left the office and closed the door for them.
"Uncle He, is there something important?" Lin Haoran asked curiously after the office quieted down.
"Haoran, I've come to see you this time because there's something very important I need to tell you," He Shanheng said, nodding.
Lin Haoran nodded, but did not reply. Instead, he gestured for He Shanheng to continue.
"Before this crisis broke out, after listening to your advice, Haoran, we significantly increased the dollar reserves of several of our subsidiaries, including Hengsheng Galaxy, Bank of East Asia, Huifeng Bank, and Daoheng Bank."
Everyone assumed that our Hengsheng Group would suffer severe losses due to the crisis, but what they didn't know was that not only did we suffer no losses, but our bank assets even appreciated significantly due to the depreciation of the Hong Kong dollar!
As He Shanheng spoke, his eyes gleamed with excitement, and his thin fingers gestured in the air, as if he had returned to his youthful days when he dominated the business world.
Before the crisis, the Hong Kong dollar exchange rate against the US dollar was relatively stable, and even if it fluctuated, the fluctuations were not significant.
However, since the outbreak of the Hong Kong property crisis, the Hong Kong dollar began to depreciate sharply due to the lack of confidence among citizens in the future prospects of Hong Kong. It once plummeted from 5.8 Hong Kong dollars to 1 US dollar to nearly 7 Hong Kong dollars to 1 US dollar.
Although it rebounded somewhat afterward, it still remained at a high level of around 6.6.
what does this mean?
This means that the US dollar reserves held by Lin Haoran's several banks have increased in value by more than 15% after being converted into Hong Kong dollars.
These are all real profits earned by the banks themselves through risk aversion, not the profits that depositors and others made while their assets shrank and banks collapsed during the crisis, while Lin Haoran's bank made a fortune.
With this one move in and one move out, the gap widened dramatically.
Other banks in Hong Kong did not take such measures, and naturally suffered heavy losses in this crisis.
Banks including Standard Chartered Bank, Union Bank, Hang Lung Bank, Ka Wah Bank, and Far Eastern Bank have all seen their bank reserves shrink to varying degrees due to the depreciation of the Hong Kong dollar.
The collapse and bankruptcy of real estate companies further exacerbated the situation, turning many of their debts to these companies into bad debts.
The reason why Hengsheng Group's banks were able to avoid risks so smoothly is naturally due to Lin Haoran.
In his past life, he clearly remembered that the Hong Kong dollar exchange rate was deeply pegged to the US dollar. So, after judging that a real estate crisis was about to break out in Hong Kong, that public confidence would inevitably collapse, and that the Hong Kong dollar would inevitably depreciate, he instructed his banks to significantly increase their holdings of US dollar assets in advance.
In his previous life, when he learned that the Hong Kong dollar and the US dollar were deeply pegged, he made a special effort to find out the origin of this peg.
In 1982, Hong Kong's economy was thrown into turmoil by the Sino-British negotiations on Hong Kong's future. Market confidence in the Hong Kong dollar plummeted, leading to significant fluctuations in the Hong Kong dollar exchange rate and even panic selling of Hong Kong dollars and buying of US dollars.
As a result, in order to stabilize the financial market and restore market confidence, the Hong Kong government decided to introduce a linked exchange rate system, pegging the Hong Kong dollar to the US dollar to eliminate exchange rate uncertainty through a fixed exchange rate mechanism.
After the exchange rate was fixed, the exchange rate between the Hong Kong dollar and the US dollar was fixed at HK$7.80 to US$1. The Hong Kong Monetary Authority promised to intervene in the market when the market exchange rate reached HK$7.75 to US$1 (strong-side conversion guarantee) or HK$7.85 to US$1 (weak-side conversion guarantee) to buy and sell US dollars to maintain the exchange rate within the target range.
Once this system was introduced, the Hong Kong dollar exchange rate stabilized and never again experienced the dramatic fluctuations seen between 1982 and 1983.
But for Lin Haoran, the most important thing was not whether the Hong Kong dollar was stable or not, but that he knew in advance that the Hong Kong dollar would continue to depreciate from the end of 1982 to the beginning of 1983 until the linked exchange rate system was officially launched.
Therefore, he had discussed this matter with Ho Sin-hang long ago, and Ho Sin-hang had his banks significantly increase their holdings of US dollar assets, even at the cost of reducing some of the Hong Kong dollar loans with good returns but poor liquidity.
At the time, He Shanheng was still somewhat hesitant. After all, giving up visible profits to gamble on an uncertain future does require some courage for an 82-year-old man.
But He Shanheng ultimately chose to believe Lin Haoran, not because he knew so much about exchange rates, but because he trusted the young man's judgment.
As it turned out, this decision was absolutely right.
Moreover, Lin Haoran also instructed his companies, including Hongkong Land Group, Hong Kong Electric Group, Longway Group, and Wanqing Group, to significantly increase their holdings of US dollar assets. Even companies he had recently acquired, such as Hutchison Whampoa, converted their Hong Kong dollar cash into US dollars at his behest.
This wasn't because Lin Haoran was bold, but because he knew the outcome: the Hong Kong dollar would continue to fall until the linked exchange rate system was introduced and stabilized.
Until then, holding US dollars is the best option.
In any case, Hong Kong is a region where US dollars can be used for transactions, and it is very common for businesses to use US dollars for cooperation and transactions.
This move seemed unnecessary at the time, since the Hong Kong dollar had been relatively stable for many years, and who would have thought it would suddenly plummet?
But looking back now, that move was absolutely brilliant.
He Shanheng put down his teacup and continued, "Therefore, Haoran, I believe it's time for Hengsheng Group to take the next step, which is expansion!"
Lin Haoran was not surprised to hear this.
The reason why He Shanheng left Hengsheng Bank to join East Asia Bank, which Lin Haoran had just taken over, was because he had great ambitions.
Although 82-year-old Ho Sin-hang is an absolute godfather figure in Hong Kong's banking industry, he is not much in the global financial world.
Lin Haoran initially lured He Shanheng by promising him the opportunity to become a world-class banker, and successfully persuaded him to join the company.
In the past two years, although the banks under Hengsheng Group have not stopped their development and have even grown stronger against the trend in many events such as global quantitative easing and the Hong Kong real estate crisis, He Shanheng believes that this development is only a quantitative change, not a qualitative change.
As for Hengsheng Group's overseas expansion, although the pace is not slow, it is still too slow for He Shanheng.
What he wanted was for Heng Sheng Group's banking division to truly expand beyond Hong Kong and into the world. Only in this way could He Shanheng become a world-renowned banker when he achieved success.
Therefore, Lin Haoran was not at all surprised that He Shanheng would propose the idea of expansion at this time.
On the contrary, if He Shanheng hadn't mentioned it, Lin Haoran would have suspected that this 82-year-old man had lost his edge. (End of Chapter)