Rebirth of Hong Kong 1981

   Chapter 534 Financing and Share Expansion

   After passing the first proposal, Yang Chen said again: "The Hang Seng Index plummeted, causing market turmoil, and Hang Seng's stock price also fell. What will happen next, everyone can guess one or two.

   In order to prevent Hang Seng from repeating the same mistakes, I propose that all the directors and shareholders present at the meeting should raise and expand their shares internally. "

   "Boom..."

   As soon as Yang Chen's words fell, the entire conference room burst into flames, and there was a lot of discussion. No one would have thought that Yang Chen would raise several billions of shares to expand shares.

   You must know that the market value of Hang Seng Bank was only about 3 billion at this time, and now Yang Chen will raise 3 billion to expand the stock, which is really unexpected.

   Let’s say we are against it, but what the other party said is indeed justified. If the Hang Seng Index plummeted, it should be said that in addition to a number of listed companies, the rest are banks.

   In this case, if the loan cannot be recovered, you have to keep borrowing money to help a number of cooperative companies to tide over the difficulties. If you don’t borrow, once those companies can’t survive and go bankrupt overnight, it will be bad.

   If it’s one or two families, it doesn’t matter. What’s worse is that a lot of people have an accident, then it’s really over.

   In particular, Hang Seng Bank, which serves small and medium-sized enterprises, is particularly vulnerable in the face of the big stock market disaster.

  He Shanheng, who was sitting in the first place, knew what Yang Chen was planning, but he had to say that Yang Chen's move left no one to say anything.

   After all, the lessons from the 1965 banking crisis are too profound for anyone to forget.

  The banking crisis in 1965, Hang Seng changed hands overnight, He Shanheng and several people worked hard, and finally they all made wedding dresses for HSBC.

   In fact, Hang Seng Bank suffered a run on it at the beginning, and it was completely implicated, suffered by a pool of fish, and even deliberately done behind the scenes.

  According to the regulations of the government, the cash-out rate of each bank needs to reach 25%. As long as the cash-out rate of banks reaches this standard, there will be basically no so-called run.

  During the banking crisis in 1965, Hang Seng Bank's cash-out rate exceeded 30%, which was more than the government stipulated.

  Chinese people have always liked to take every step, and He Shanheng and others did not take any risk in running Hang Seng Bank. After all, in this place where foreign banks are full of foreign banks, Hang Seng Bank is too dazzling, and it will inevitably be remembered.

  Be careful, there is always nothing wrong.

   However, this is the case, Hang Seng Bank is still unavoidable to be acquired.

  The banking crisis in 1965, what happened to Hang Seng Bank, just one, 'run'. The loss of a large number of deposits in a short period of time caused Hang Seng Bank to be unable to open its capital for a while.

  The total deposit of 700 million yuan, loaned out more than 400 million yuan, and left more than 200 million yuan to cash out to avoid capital rupture.

  Everything makes sense. After all, banks want to pay depositors interest, and they have to lend out the money to earn higher interest from businesses.

   It was just that when the banking crisis broke out, everyone was clamoring to withdraw money. Hang Seng Bank couldn’t take out so much money to withdraw money for depositors, and the problem broke out.

   Selling shares at a low price to gain the support of HSBC became the best choice for Hang Seng Bank to tide over the difficulties at that time.

  If Hang Seng has always been backed by HSBC, naturally there is no need to be afraid of a banking crisis. HSBC, as the 'quasi central bank' of Hong Kong, in everyone's opinion, the most important thing it lacks is money.

   However, things are different now. Hang Seng has changed hands again, and HSBC is no longer the major shareholder of Hang Seng Bank. Once the banking crisis breaks out again, it is difficult to say whether Hang Seng can survive.

   As the saying goes, 'If you have food in your hands, don't panic. ’

  Yang Chen proposed financing to expand shares, everyone really can't say anything, but everyone has careful thoughts.

   Now that the Hang Seng Index has plummeted, these people have been more or less affected. It is not so easy to make enough money in a short time.

   "Of course, if you don't want it, I don't force it. If anyone is willing to sell their stock, I'm willing to buy it at Hang Seng's current share price.

   Here I would like to remind everyone that from today onwards, as a major shareholder, I have decided that Hang Seng Bank will not distribute a single cent of dividends to shareholders from now on.

   In other words, in the future, the Hang Seng Bank stocks in your hands can only be traded, and you will no longer enjoy a penny of dividends, including 51% of the Hang Seng shares in my hands. "

   "Boom..." The entire conference room boiled again.

   First he promoted He Shanheng as the honorary chairman, then he raised shares to expand, and now he wants to cancel the dividend. Everyone was stunned by Yang Chen's series of punches and punches.

  Don't distribute dividends to shareholders. Who would want to hold such a company for a long time? Yang Chen's final decision was more unacceptable than the previous financing and share expansion.

   "Yang Sheng" At this time, He Shanheng, who had never spoken, finally spoke.

   As He Shanheng spoke, everyone felt that they had stopped talking.

  Yang Chen: "He Dong, just call me Ah Chen."

  He Shan waved his hand sideways and said, "Yang Sheng, I have no opinion on financing and expanding shares, but we will not distribute dividends to shareholders, not to mention Xiangjiang, there are no such companies in other countries."

Yang Chen shook his head and said: "He Dong, I don't know if other companies have them, but what I'm talking about is Hang Seng. The reason why the juniors bought the shares of Hang Seng Bank from HSBC was not to make money blindly, but to make more money. Good development of Hang Seng Bank.

  The purpose of not distributing dividends is for the better development of Hang Seng Bank, but also to find more like-minded people. Only when shareholders believe in the company can the company develop better. "

   The stock of Buffett's company in later generations is hundreds of thousands of shares, and it is still US dollars. The reason is that they do not pay dividends. They reinvest the profits earned by the company every year into the company's expansion.

   Even if the company does not expand, the money can also be used as the company's liquidity to ensure that the company is not affected by lack of funds.

   That means of making money from constant money is the best way to preserve value.

  It is necessary to know that the currency will depreciate, and use the money for company expansion, so as to keep the banknotes on hand from being affected by the depreciation of the currency to the greatest extent, and then accumulate more and more.

   At the same time, if the shareholders holding the company's stock are really short of money, they can sell the stock to obtain funds, and the shareholders who are unwilling to sell the stock can also mortgage the stock to the bank and obtain a loan.

  Compared with stock dividends, company appreciation is the most important.

   However, these years, the company makes money without dividends, which is absolutely unacceptable to shareholders.

   After all, Xiangjiang has suffered from stock market disasters more than once or twice, and no one wants to hold a company's stock in his hand and eventually become a piece of waste paper.

  ——

   (end of this chapter)