Legend of Xiangjiang Tycoon

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He Shaoheng was originally from Shunde, Guangdong Province, and was born in a poor family in 1900.

He Shaoheng only studied in a private school for a few years, and his short schooling career laid a good foundation for him in Chinese studies.

In the 1960s, He Shaoheng wrote a book called "A Brief Talk on Reading the World", which is beyond the reach of ordinary scholars.

He Shaoheng is obsessed with reading, and the poor family situation forced him to drop out of school. He first worked as a handyman in his hometown, and came to Yangcheng alone when he was fourteen. Yangcheng is a prosperous city in South China, and there will definitely be more opportunities for development here.

He Shaoheng was one of the thousands of untouchables who flowed into Yangcheng. He was empty-handed and barefooted. Because his family was poor, he couldn't even afford shoes.

He found a handyman in the salt warehouse and was responsible for cleaning the salt warehouse.

His feet are still bare all day long, the salt is irritating and corrosive, and his feet are red, swollen and rough due to the salt erosion,

If there is trauma, the pain is unbearable. He Shaoheng was paid, but his feet were still bare, and his shoes were damaged by the salt. He would rather suffer from flesh and blood.

His feet are still bare all day long, the salt is irritating and corrosive, and his feet are red, swollen and rough due to the salt erosion,

If there is trauma, the pain is unbearable.

About a year later, He Shaoheng resigned as a handyman in the salt warehouse and came to a gold shop as an apprentice.

At that time, gold and silver jewelry was very fixed. Gold and silver jewelry was far less refined than it is now, and there were fewer styles. Only a few styles changed.

At that time, He Shaoheng originally entered the gold shop as an apprentice to learn a certain skill, but after his apprenticeship, he did not make a living from jewelry craftsman skills, but his ability to distinguish the fineness of gold and silver made him gain a lot.

He Shaoheng is very diligent and studious, and he can operate independently after more than a year.

The boss of He Shaoheng's behavior naturally saw it, so the boss didn't let him stay in the workshop, but transferred him to the shop - because of his loyalty, honesty and literacy.

In the shop, He Shaoheng finally had the opportunity to meet all kinds of people. He Shaoheng also quickly became familiar with the shop business, knew how to treat customers with sincerity, and would soon be able to get started.

At that time, many Shunde villagers "fried market noodles", which meant currency exchange. If you were lucky, you could make money overnight.

Getting paid for several months, of course, there are times when you are unlucky, but these are not in He Shaoheng's eyes. .

In He Shaoheng's view, he is born to be successful, so he doesn't need to care about other things.

With the consent of his boss, He Shaoheng started speculating in the market outside of work.

There are various kinds of currencies in circulation in Yangcheng, including official yuan issued by government-run banks, bank notes issued by private banks, and currencies of various countries.

Since he was a child, He Shaoheng knew that capital was hard to come by, and he did not dare to "exchange water" easily, which means exchanging one currency for another.

At the beginning, He Shaoheng paid attention to the people who lost their fortunes. Through observing He Shanheng, he discovered the reasons for their failure: firstly, it was because of inaccurate vision; Water, wait for it to rise to a small profit and get rid of it as soon as possible, and then change the water again.

In this way, repeated over and over again, He Shaoheng's capital is getting bigger and bigger, showing his extraordinary financial talent.

From this, we can also understand that sometimes we must be calm. On the one hand, we must act quickly and have a good vision.

In 1922, He Shaoheng was promoted to the manager of the gold shop, responsible for the daily operation of the gold shop.

In the days when he first arrived in Yangcheng, He Shaoheng ran into Yangcheng with bare hands, but now he has achieved remarkable results.

However, at this time, He Shaoheng opened his eyes in Yangcheng and tasted the sweetness of speculation in the market. He no longer satisfied his goal of being a part-time job boss. He Shaoheng wanted to start his own business.

At this time, He Shaoheng got acquainted with the He family. The He family is from Panyu, and the two are not far apart.

Mrs. He also came out to venture into the world in his teens. He has a lot of contacts and is a relatively fun person.

After He Shaoheng left the gold shop, he speculated in the market and ran business with the He family.

In 1926, the two joined hands and opened Huilong Bank on Shangjiu Road, Yangcheng.

He was the manager, and He Shaoheng was the deputy, and people at that time called their store "Erhe Bank".

Their opening capital was 200,000 yuan, which was a large sum at the time, and of course it is also a considerable sum now, enough to build a western-style building in Yangcheng.

But for Kaiyinhao, it is difficult to measure the amount of money in terms of size.

If you do it well, you can double it in a year; if you mess it up, you will lose everything. They have been doing it for several years, making a small profit and not losing money.

Although He Shaoheng did not make a fortune from this, he gained a lot of knowledge, and it also aroused his long-term interest in the bank.

Before Huilong was prosperous, the two broke up amicably.

Mrs. He went to Lisboa, while He Shaoheng went to Xiangjiang. They often meet in Yangcheng.

He Shaoheng travels back and forth between the province and Hong Kong, making profits by taking advantage of the difference in foreign currency prices between the two places. At that time, He Shaoheng was in his early thirties and reached the age of starting a career.

On March 3, 1933, He Shaoheng, Lin Bingyao, Sheng Chunlin, Liang Zhiwei and other friends founded Hang Seng Bank.

There are four "3" on the opening date. In Cantonese, "3" is the same as "Sheng", which means "Sheng, Sheng, Sheng, Sheng", so it is called "Hang Seng".

Hang Seng Bank is located at No. 70, Shuile Street, Central, Hong Kong Island, Hong Kong Island, with a share capital of HK$100,000 and eleven employees.

Later, some relatives and friends requested to participate in the shares, and the share capital increased to HK$125,000.

For Xiangjiang, there are many banks and more bank accounts. No one can tell how many bank accounts there were in the past.

One side opens, the other closes. It has been born and died for more than a hundred years. At that time, some people made a conservative estimate of how many thousand years there were.

And at this year's end, there are less than 20 that can really become a big climate.

The Hang Seng Bank at that time was one of them. If it hadn't developed into Hang Seng Bank, probably no one would remember that there was a Hang Seng Bank.

Over the years, Hang Seng Bank has gradually established its reputation, its business has become increasingly prosperous, and its benefits have been considerable.

When the Anti-Japanese War broke out, the semicolon of Hang Seng Bank in the mainland gradually shrank to Xiangjiang.

However, the business of Hang Seng Bank was not greatly affected, because Hang Seng Bank was very curvy at that time, and merchants from the mainland often brought hard currencies such as gold and silver, and they had to exchange them into Hong Kong dollars for common use in the market, while Hang Seng Bank No. is vigorously developing the exchange business.

When Xiangjiang fell, Hang Seng Bank smuggled funds to Lisboa.

Lisboa is neutral and has become a gathering place for refugees from Hong Kong and Hong Kong. Hang Seng Bank still has a lot to do.

There is already a Hang Seng Bank in Lisboa, which is owned by the Lisboa District family.

In this way, the Hang Seng Bank that Xiangjiang moved to was renamed Li Yonghua Bank.

During his stay in Lisboa, He Shaoheng and his old friend He often got together.

He was the Director of the Accounting Department of the Trade Bureau of Lisboa at that time.

Mr. He has been in Lisboa for many years and is an important figure in the local area. Therefore, Mr. He came forward to solve many difficulties of the Hang Seng (Yonghua) Bank.

From the 1950s to the 1980s, Ho was recognized by all parties as the leader of the Chinese community.

After the recovery of Xiangjiang, He Shaoheng gradually became the recognized leader of the Chinese banking industry.

In the early years, Yangcheng Huilong Bank was a double hero, and it became a good talk from all walks of life in Xiangjiang and Lisboa-of course, this is another story.

At that time, He Sang was also working in the Bureau of Trade, and met He Shaoheng through the recommendation of the He family.

Quota business is quite profitable, but it requires a certain relationship. So He Shaoheng and He Sang formed Damei Company, and He Sang came forward to engage in quota business, and both of them made a lot of money.

Later, He Sang returned to Hong Kong to develop, and received strong financial support from the boss of Hang Seng, He Shaoheng - and this is also a later story.

Li Guowei, an outstanding banker who debuted many years later than He Shaoheng, also went into exile in Lisboa at this time, and Li Guowei is the cousin of the famous Li family in Xiangjiang.

Li Guowei's grandfather, Li Wenyi, and his father, Li Liangyi, are brothers.

However, the Li Wenyi branch had declined by the time Li Guowei was born.

Although Li Shi was assassinated by the enemy, he left a large inheritance. His sons Li Mingze, Li Xiaohe, and Li Rongda all graduated from famous universities in the UK.

Li Guowei was born in Lisboa in 1918 and studied at Xiangjiang Dunmei College and St. Joseph's Secondary School.

Li Guowei, who had just graduated from middle school, was admitted to Guohua Bank as a small employee.

From Li Guowei's experience, it can be seen that his family has been reduced to the commoner class, and he has to make a living independently.

Li Guowei kept secret about his family background, maybe he was the two branches of the Li family, one flourished and the other withered, and he had no intention of gaining the glory of the other Li family.

Li Guowei joined the Hang Seng Bank because of Ho Tim, an employee of the Hang Seng Bank.

He Tian was in charge of the legal market and gold business of Hang Seng Heung Kong headquarters at that time, had business dealings with Guohua Bank, and met Li Quowei.

When Li Guowei came to Lisboa, He Tian talked about Li Guowei to the four major shareholders.

Lin Bingyan, Ho Shaoheng, Sheng Chunlin, and Leung Chik-wai sincerely invite Li Guowei to work at Hang Seng Bank as if they have found a treasure.

Li Guowei did not dare to agree. Of course, he did not submit his resignation to Guohua. He felt that it was not good to leave Guohua Bank at this time.

However, Li Quowei left a good impression on the Big Four of Hang Seng Bank.

Before that, like other big bank employees, he had always looked down on banks with less than good reputations and lower status.

In August 1945, Xiangjiang recovered. Hang Seng Bank resumed business in Xiangjiang in September.

The division of labor of Hang Seng Bank is still the same as before the war, and He Shaoheng is based in Yangcheng.

In 1946, He Shaoheng, He Tian and other friends established Hengchang Company to engage in grain business.

And Hengchang Company is the predecessor of Dachang Trading Company. More than 20 years later, Dachang became a well-known large trading company in Hong Kong, with all-encompassing trading business. Li Guowei, who became He Shaoheng's two major businesses, also joined Hang Seng Bank number,

The birth and death of silver numbers is very frequent, and Li Guowei's move requires considerable courage. Li Guowei later recalled: "I took this step because I saw the great future of Hang Seng Bank. Of course, the career of a bank is not as reliable as that of a bank, but a bank may not become a big bank."

In the summer of 1946, in order to make up for huge military expenditures, the Guo Party issued a large number of gold coupons and prohibited private possession of gold and silver.

The gold-dollar coupons inflated and the credit declined. People tried to exchange the gold-yuan coupons into foreign currencies to preserve their value. Hang Seng Bank seized this favorable opportunity and vigorously developed the exchange business.

The exchange rate is many times more expensive than usual, and rich people who are in urgent need of foreign currency will not borrow it, as long as they have foreign currency, they can take their assets out of the mainland.

In 1949, the wave of immigration reached its peak. Xiangjiang is a temporary refuge for wealthy people in the Mainland. Most of what they brought was gold and silver, which needed to be exchanged into some foreign currency for urgent use.

The "gold speculation fever" came into being, and many people from Guangdong and Shanghai in Hong Kong were involved in the gold speculation fever.

Since 1948, He Shaoheng has returned to Hong Kong to preside over the gold speculation business of Hang Seng Bank.

The risk of speculating in gold is extremely high, and hurricanes occur one after another. It is not uncommon to get rich overnight and go bankrupt overnight. There are quite a few big gold speculation winners who end up bankrupt and want to cry without tears.

However, He Shaoheng has a smooth journey and auspicious stars. In the future, whether it is loans or investments, Hang Seng Bank will sell tens of millions, which will make the peers jealous.

This time the gold speculation is hot, most of the gangs in Shanghai are Jinyu, and there are more winners in the gangs in Guangdong Province. Why is Hang Seng Bank so outstanding?

He Shaohang and his Hang Seng Bank colleagues were tight-lipped.

Most of the Shanghai people involved in gold speculation are bankers, bank bosses, stock brokers, etc. They were "bleeded" as soon as they came to Xiangjiang. Few eat financial meals - of course, this is a digression.

In February 1949, Lin Bingyan, the rudder of Hang Seng Bank, died of illness in Hong Kong, and He Shaoheng took over his mantle.

Lin Bingyan is the founder of Hang Seng Bank. It is under his general decision-making that Hang Seng Bank has developed from a small and unknown bank to a big brother in the industry.

The first major event of He Shaoheng after taking office was to prepare for the reorganization of Hang Seng Bank.

For more than a hundred years since Xiangjiang was opened as a port, the government has always pursued a free and positive non-intervention policy in the development and management of the banking industry.

On January 29, 1948, the Hong Kong government promulgated the "Banking Ordinance" for the first time, only stipulating that enterprises that apply for a license issued by the Governor in conjunction with the Executive Council and pay a license fee of HK$5,000 per year can operate the banking industry.

As for banking business, there are no specific regulations.

Whether it is before or after the promulgation of the regulations, it is relatively easy to open a bank in Hong Kong with a license.

This also makes others wonder why there are so many quasi-banking institutions—banks? And why didn't the owner change to a bank?

Although the banking business is not bound by specific legal provisions, there are conventions. This convention was brought by the early foreign-funded banks and became a model for the practice of Chinese-funded banks in the future. This invisible binding force,

It is quite inconvenient for Chinese owners and customers who do not have modern financial concepts. Many Chinese bankers regard practicing banks as daunting.

It is obvious that the bank's operation is flexible; of course, it is also obvious that the bank's reputation is not good.

Therefore, if you want to achieve great development, you must take the bank.

This is He Shaoheng's starting point. He Shaoheng's proposition was strongly supported by Li Guowei.

In other words, if Hang Seng Bank does not change its bank account, it will not be possible to keep Li Guowei.

Li Guowei is studying finance by himself, and later he was admitted as a member of the Association of British Banks. He is the first banker in the Hang Seng Bank to be plated with "foreign gold".

In 1952, Hang Seng Bank was registered as a limited company with a legal person organization, with He Shaoheng as the chairman.

In October 1953, Hang Seng Bank moved into its own property at 163-165 Queen's Road Central.

In terms of scale, quite medium-sized Chinese-funded banks, the nature of their business is as close as possible to banks, but the name is still called Yinhao.

The recovery of the economy after the war and the vigorous development of the processing industry led to the rapid expansion of the banking industry in Hong Kong. He Shaoheng, who dreamed of reorganizing the bank, was in a hurry. He believed that such a bank would be doomed to failure (bankruptcy).

He advocated gradual progress, and then changed the name when the conditions were ripe.

Hang Seng Bank slowly and steadily brought the system into the banking track.

He Shaoheng, who only studied in a private school for a few years, showed the foresight of a big banker.

Therefore, after the name change of Hang Seng Bank, it did not encounter labor pains, but ushered in rapid development.

In 1958, Hong Kong's entrepot trade accounted for 57.8% of the total export value; by the second half of 1959, the entrepot trade accounted for only 30.4% of the total export value, while 69.6% of the total export value was created by Xiangjiang's local industrial output.

This astonishing change marks that Xiangjiang is transforming from a entrepot trade-based economy to a heavy-duty economy of processing trade and entrepot trade.

This is hailed as a milestone in Hong Kong's economic take-off. Banks will play a very important role in the Hong Kong economy in the future, and the old workshop-style bank will become a sunset industry.

From the perspective of internal conditions, this year, the registered share capital of Hang Seng Bank increased to 30 million Hong Kong dollars, and the paid-in share capital increased to 15 million Hong Kong dollars. At that time, there was only Hang Seng Bank with such a rich and powerful bank account.

Moreover, the mechanism of Hang Seng Bank has basically realized banking.

All is ready except for the opportunity. He Shaohang bought the old building next to the Central Fire Station and planned to build the future Hang Seng Bank Building.

On January 1, 1960, Hang Seng Bank was renamed Hang Seng Bank. In the following year, the 22-story Hang Seng Building was completed,

The exterior walls are made of glass curtain walls and aluminum, the most advanced building materials at the time.

Bank property is a sign of a bank's reputation. Hang Seng is extraordinary once its name is changed, which impresses its peers. On the other hand, some banks that have been in operation for many years are still in the structure of a bank.

Sailing on the silver sea is both a challenge and a test for Hang Seng Bank.

On June 14, 1961, Hong Kong broke out in the biggest wave of liquidation since the end of World War II.

Liao Chong Hing Bank was crowded with people. Depositors lined up in a long queue, anxiously waiting to withdraw their deposits. Some depositors even slept on the street waiting for the withdrawal the next day. The run has lasted for 3 consecutive days, and according to statistics, the total number of people queuing for the run has exceeded 20,000.

With such a turbulent squeeze, even gold and silver mountains will be emptied. Liao Chong Hing Bank was dying like a body drained of blood. The founder of the bank, Liao Baoshan, wanted to cry but had no tears, and died!

When Liao Chong Hing was hit by the disaster, other banks watched from the other side, and even gloated, saying that Liao had done it to himself.

They are indeed a bit cruel, but it is not groundless. The Hong Kong government does not have a comprehensive banking law, let alone formulate official interest rates. The Hong Kong Association of Banks has formulated interbank interest rates and requires all member banks to abide by it to avoid vicious competition.

Liao Chongxing originally copied the bank's set of rules into the bank, ignored the regulations of the trade association, and created "high-interest small deposits".

Banks headed by HSBC and Standard Chartered are very dissatisfied with Liao Chongxing, but they have nothing to do. Now that Liao Chongxing is being squeezed, it is inevitable that the banks will not stand idly by.

After three days of crowding, the chief of the police issued a statement in response to the rumor that Liao Baoshan had absconded.

A statement: "A rumor has emerged that a well-known banker has been investigated by the police and has been notified

Leaving the state cloud, this rumor has been verified to be groundless. "

The announcement did something to slow the crowding.

Liu Baoshan is still in Hong Kong, proving that he can still cope

Pay the situation. However, there are still many small depositors who are not at ease. They will not put their deposits into their pockets and will not give up.

HSBC and Standard Chartered are executive member banks of the Association of Banks, and large commercial banks that are compatible with the rights and obligations of a quasi-central bank. The two banks issued a joint statement in support of Liu Chong Hing Bank, claiming that it can overdraft 30 million Hong Kong dollars should

Pay the run.

The squeeze gradually subsided, and Liao Chuangxing, who was on the verge of collapse, was exempted from "holding the hat". Liao Baoshan, who wants to cry but has no tears, should break through his tears and regain his glory-no, he is more like a frightened bird, terrified all day long. The cause of the incident was HSBC's kind assistance.

HSBC and Liu Chongxing prepared a joint statement in English: "HSBC and Standard Chartered have made certain arrangements to bring the incident of Liu Chongxing Bank under control."

The statement was published in a Chinese-language newspaper. I don’t know which master translator cleverly translated it. The Chinese translation was: “The business of Liao Chong Hing Bank is completely under the control of HSBC and Standard Chartered.”

The bank run in 1961 exposed the weakness of the Hong Kong government's active non-intervention policy, which lacked legal protection.

Since there is no legal restriction, the operation of Liu Chong Hing Bank is legal.

If measured by international banking practices, the bank's operations are extremely irregular: first, it engages in a large number of non-banking businesses; second, the interest it sets far exceeds the interest rate agreement of the trade association; business.

I don't know if Liao Baoshan herself realizes that there is a huge crisis lurking in this way. But his purpose is obvious. Otherwise, it is impossible for the family property to expand surprisingly in the short term.

The Hong Kong government has been criticized by all walks of life, especially the banking sector, for the Liao Chong-hing incident.

In 1962, Sir Patrick Black, the governor of Hong Kong, invited Tomkins of the Bank of England, the central bank of the United Kingdom, to Hong Kong. Thomson is a well-known expert in banking law in the UK. He investigated the banking industry in Hong Kong and submitted the "Tomkins Report" .

In the same year, the Hong Kong Bankers Association overcame numerous obstacles and completed a significant event.

Member banks and non-member banks sit together and reach an interest rate agreement that stipulates the maximum deposit interest rate.

According to this agreement, the bank numbers of non-member banks must also abide by it.

Hong Kong's banking legislation was basically complete until the introduction of the three-tiered financial system in the 1980s.

However, in terms of the "lawless" status quo of the banking industry at that time, the introduction of these two measures was a remarkable progress.

Large foreign-funded banks have been basically operating in accordance with international practices and industry agreements, and the introduction of the two measures is extremely beneficial to them.

Chinese-funded banks were either reborn from silver accounts, or they were contaminated with more bank legacy.

Most of them could not adapt to the new measures, and many complained that the British were stuck in the neck of the Chinese.

The 1960s was the era when small banks and banks flourished.

Xiangjiang's economy is taking off, processing industries are blooming everywhere, the real estate boom continues to heat up, and the banking industry is profitable, which has played a very important role in Xiangjiang's economic development.

Liao Baoshan's death did not leave any shadow on the Chinese counterparts.

Some people are even worse, but the bad luck has not come to them.

It is hard to go back, the new regulations of the Hong Kong government and the agreements of trade associations cannot fundamentally change the status quo, and the "bad habits" have even intensified.

As a result, less than 3 months after the implementation of the new regulations, another huge crowding wave swept Xiangjiang.

Mingde Bank went bankrupt, many small and medium-sized banks were on the verge of bankruptcy, and even the reputable Hang Seng Bank was on the verge of bankruptcy.

Hang Seng has always had an excellent reputation. Could it be that it has made major mistakes like Liao Chongxing?

Hang Seng Bank was renamed and reorganized from Hang Seng Bank on January 1, 1960. The following year, the 22-story Hang Seng Building was completed in Central.

In addition to the head office, there are also branches in Yau Ma Tei and Mong Kok, Kowloon. By 1965, Hang Seng Bank had 9 branches.

Before Hang Seng Bank changed its name, it was in line with the modern banking operating mechanism.

Li Guowei's status in Hang Seng Bank has risen rapidly. On January 1, 1960, he was promoted to director; in January 1964, he was promoted to deputy general manager.

Hang Seng Bank actively absorbs deposits. Before the outbreak of the bank run in 1965, the total deposits of Hang Seng Bank reached 720 million Hong Kong dollars.

Backed by relatively strong deposits, Hang Seng Chairman Ho Shaoheng took the initiative to find the lending market.

At that time, the textile, garment, plastic, hardware, and toy industries were in full swing, and industrialists came to ask for loans in droves. In fact, there was no need to find loan customers at all.

He Shaoheng believes that banks are not charitable organizations, and we cannot wait for others to "beg" us for gifts; banks are profit-making organizations, and finding potential customers means making profits.

He said: "Cultivating customers is to strengthen ourselves."

He also said: "Don't think that you are the parents of the customers, the customers are the parents of us."

In 1963, Hang Seng Bank launched the "Basic Advanced Training Course for Banking Business".

The purpose is to get rid of the old rules and stereotypes that banks do not adapt to the modern situation, and learn the basic business and management methods of modern banks.

The training class was presided over by Li Guowei, and He Shaoheng, the chairman of the board, personally taught the class. The trainees included veteran employees and trainees who had just entered the industry.

In response to the old rules and customs of the modern situation, learn the basic business and management methods of modern banks.

The mortgage system has greatly alleviated the difficulties of real estate developers and home buyers due to insufficient funds, and stimulated the rapid development of the real estate industry, which has become a boom.

Bank mortgages use land and properties as collateral, which is a loan business with a relatively high safety factor. But there is also an obvious flaw, the capital return cycle is too long.

Chinese banks are keen on the mortgage business, and Hang Seng Bank is no exception.

The Hong Kong government has been pursuing a high land price policy for a long time, and the supply of land is in short supply, and land prices are rising day by day, which has caused "speculation" to prevail.

Some banks have blindly lent huge sums of money to fuel the speculation.

There are also some banks that are so excited about Liexin that they can't help itching. They don't hesitate to use their own funds and depositor funds to directly get involved in the real estate industry.

As a result, small and medium-sized banks with weak strength generally suffer from anemia, empty treasury bottoms, and dry up liquidity. There are even some banks that cannot even cash out depositors' large withdrawals in a timely manner.

Many banks are stretched, leaving depositors in a panic.

Banking crises are imminent.

On January 26, 1965, that is, two months after the implementation of the new regulations of Hong Kong Bank, a wave of liquidation hit Mingde Yinhao, a small bank without a legal person.

Mingde Bank was keen to directly intervene in real estate speculation, and as a result fell into the quagmire of financial difficulties. How can a small bank stand against the turbulent crowd, and the depositors who cannot withdraw their funds are crying in the streets.

Mingde Bank regards the interest rate agreement of the trade association as nothing, and insists on pursuing a high-interest deposit strategy.

When the bank run occurred, the bank supervision commissioner inspected Mingde Bank and found that "not only did it have no liquidity, but it also had no solvency."

In early March, the Xiangjiang High Court approved the takeover of Mingde Bank and declared it bankrupt.

Hong Kong and Kowloon rumors are everywhere, and people are panicking. Depositors are afraid that their deposit bank will go bankrupt and their savings will be wiped out, so they rush to withdraw money in a panic.

The run on Hong Kong and Kowloon is like a raging tide, and small and medium-sized banks are in dire straits, like doomsday.

On February 6, the time-honored Chinese-funded bank established in 1931—Guangdong Provincial Trust and Commercial Bank was overwhelmed and ran out of cash. On February 8, the Hong Kong government announced the imposition of controls on the bank.

The collapse of this old-fashioned bank with 26 branches aggravated the panic among depositors, and the run on the bank set off another climax.

Chinese-funded banks are facing the biggest credit crisis in history, while foreign-funded banks such as HSBC and Standard Chartered are calm and sitting on fishing boats.

Many small and medium-sized banks are facing the danger of bankruptcy, including Hang Seng Bank.

There was a run on the Mingde bank, and He Shaoheng didn't realize that he would follow in his footsteps.

Because Hang Seng did not blindly get involved in the real estate boom like some banks did.

Although Hang Seng has a huge sum of money, it can always be recovered on schedule. Moreover, Hang Seng has always had a good reputation.

The Mingde bank closed down and the squeeze spread, and He Shaoheng realized the seriousness of the situation.

On February 4, more and more people came to Hang Seng Head Office and branches to withdraw cash.

The leaders of Hang Seng mobilized urgently, while raising cash to pay for withdrawals, and at the same time dispatching staff to persuade depositors not to withdraw funds temporarily.

He Shaoheng and the head of Hang Seng took their staff to each bank to explain, guarantee, and advise depositors, but they could not eliminate the fear of depositors.

Perhaps, it is because the depositors still have a fresh memory of Hang Seng being born out of a bank; perhaps, it is because the depositors do not trust the entire Chinese-funded bank. The situation is even more dire than Liao Chuangxing's squeeze back then!

In fact, there is no bank in the world that can withstand the "bottom-out" run - unless the central banks of certain countries that are not linked to gold and foreign exchange reserves can start the money printing machine at will.

This is because the total liquidity of commercial banks cannot be equal to the total deposits.

Otherwise, if the bank absorbs deposits, what will it provide to support depositors' interest?

He Shaoheng asked some well-connected wealthy businessmen and bankers for help, but no one offered a helping hand.

At the end of the road, He Shaoheng asked foreign banks for help, but HSBC agreed to help Hang Seng through the squeeze tide with "unlimited amount".

Of course, HSBC's help is conditional, and it will obtain 51% of the shares of Hang Seng.

Hang Seng Bank lost its controlling stake, but it also escaped bankruptcy and escaped bad luck.

According to He Wenxiang, a Hong Kong writer, several years after the incident, there were rumors in the banking circles of Hong Kong that Hang Seng sold 51% of its shares to HSBC, which was Li Quowei's idea in practice.

Among the directors, he is the only one who understands English, and he negotiated the price with HSBC Taipan Sanders, and He Shaoheng's original intention was to sell 35% of the shares.

Li Guowei replied frankly: "This is not my opinion. Such an important matter is decided by the board of directors, but I am indeed the only person sent by Hang Seng to negotiate with Sandas. I still remember that HSBC The bank sent staff to study our accounts, and in just over 10 hours, including the negotiation time, the huge transaction in the history of the bank was completed.”

Hang Seng Bank changed its flag, which was cited as "ominous news" by the media at that time. Whether it is a blessing or a curse, of course, can be verified by history.

On February 8, HSBC issued an announcement: If any bank feels pressure from depositors to withdraw funds and its financial situation is worthy of assistance, it is ready to discuss with the other party how to assist.

On February 9, the Hong Kong government announced that the maximum daily cash withdrawal amount for each account would be HK$100 in view of the turbulent bank run, and urgently airlifted British pounds from the UK to circulate in the market at the rate of one pound to sixteen Hong Kong dollars. The contradiction of insufficient banknotes.

On February 10, Hong Kong Governor Tai Linzhi delivered a speech, stating that the Hong Kong government has strong financial resources, but there is a temporary shortage of banknotes.

But this situation will soon be eased. "Now the major banks are united to deal with it together, and the Hong Kong government will provide the backing of the banks. Therefore, I would like to appeal to all citizens to cooperate with the banks, and I deeply rely on your assistance to overcome the current unnecessary difficulties. "

Only in this way did the crowding trend subside slowly.

This banking crisis is much more serious than Liao Chongxing's run four years ago.

The duration is long, up to more than 1 year. The scope of the impact is wide, two banks collapsed, Hang Seng Bank was merged, and almost all small and medium-sized banks were devastated, or were on the verge of bankruptcy, or were seriously injured.

HSBC and Standard Chartered Bank are the big winners in this crisis, their positions have remained unchanged, and they have also played the role of white knights-under the coordination of the Hong Kong government, they have funded and rescued many banks on the verge of bankruptcy.

HSBC sent 4 directors to the Hang Seng Board of Directors, and the chairman is still He Shaoheng. Apart from attending the board meeting to make some suggestions and participate in decision-making, the directors of HSBC did not interfere in the personnel, administration and operation management of Hang Seng Bank. Hang Seng Bank is still Hang Seng Bank.

This shows that HSBC is satisfied with the original operating mechanism of Hang Seng Bank. Hang Seng Bank suffered this catastrophe not because of any major flaws in its operation, but because of the wave of liquidation; it also shows that HSBC is a good-faith acquisition , unlike some acquirers, once they succeed, they dismantle the prey, at least beyond recognition.

Naturally, HSBC's acquisition inevitably led to the suspicion of taking advantage of others, so in the trade association, some member banks accused HSBC.

HSBC Daban Sandas explained: "HSBC is a commercial bank. For example, if HSBC is in a deep crisis, will the Chinese banks join hands to provide unconditional and unlimited funding for HSBC?"

Such a thing never happened, so there is no answer.

Let's say that Hang Seng Bank joined the HSBC Group, and with a strong backing, its reputation will be restored immediately.

In advance of the squeeze, the total deposits of Hang Seng were 720 million Hong Kong dollars, which caused a large loss of deposits.

After being owned by HSBC, the liquidation stopped abruptly, and depositors turned to saving money. By June of this year, the total amount of deposits had doubled, reaching as high as 1.5 billion Hong Kong dollars!

On May 29, 1972, Hang Seng Bank became a listed company with a total of 10 million shares issued and a paid-in share capital of HK$100 million. Among them, one million shares with a par value of 10 Hong Kong dollars were publicly offered at a price of 100 Hong Kong dollars.

As a result, the lowest transaction price was HK$135 and the highest transaction price was HK$195 during the year.

By 1973, the stock price soared to HK$290, almost thirty times the face value!

HSBC acquired a large number of shares of Hang Seng Bank. By the end of 1978, HSBC's shareholding in Hang Seng Bank had increased from 51% to 61%.

HSBC has increased its control over Hang Seng Bank, which also means that Hang Seng's financial backing is stronger and more stable.

At the end of 1978, the number of Hang Seng branches increased to 35, with 3,700 employees, a total deposit of 12.8 billion Hong Kong dollars, and an annual profit of 208 million Hong Kong dollars.

Its strength far exceeds that of all Chinese-funded banks.

If Hang Seng Bank did not join HSBC, it would be impossible to achieve such a rapid development.

At the beginning, Hang Seng Bank changed its banner, which became a great tragedy for the Chinese capital industry.

Unexpectedly, frequent banking crises have caused many Chinese-funded banks to repeat the same mistakes as Hang Seng, and have been merged or bought shares by large foreign banks.

There are only a few independent Chinese-funded banks remaining, but none of them has become a big climate, and they are cautiously protecting themselves as if they are walking on eggshells.

Hong Kong has freedom of speech. Naturally, some people criticize the Hong Kong government, saying that in previous crises, the Hong Kong government was slow to respond, and even deliberately delayed, making it easier for large foreign banks to annex local banks.

Naturally, some people disagree with this point of view, saying that the Hong Kong government is an administrative agency, not a holding company for banks. Why do Chinese-funded banks suffer the most in every banking crisis? Survival of the fittest, survival of the fittest - this is the law of the business world.

This is a very famous work "A Brief Talk on Reading the World".

One author gave a comprehensive evaluation of this book:

"From his "Yue Shi Tan", we can see that he basically followed the Confucian tradition in dealing with people and dealing with things. Aim, work hard, avoid greed, treat people kindly, and benevolent and moral. However, in terms of management, his concepts are modern in the West, for example, he emphasizes psychology, public relations, and modern management methods.”

This book has become one of the basic teaching materials for people in the Hong Kong Banking industry to train staff~www.readwn.com~ Hang Seng Bank is not only a profit-making organization, but also enthusiastic about social services.

Hang Seng's "Educational Counseling" department is free of charge and does not make profits. It is responsible for providing counseling for Hong Kong students studying abroad, and helping with admission applications and procedures for staying in Hong Kong. The "Basic Advanced Training Class for Banking Business" is based on Hang Seng and faces the society. So far, 50,000 person-times have received training.

The "data research" department of Hang Seng Bank is even more famous. The researchers specialize in collecting Hong Kong and world economic data, write research reports, and provide them to the whole society free of charge. It is valued and welcomed by people, and its influence spreads far and wide to the world.

In 1978, He Shaoheng was awarded the CBE honor.

In 1983, Ho Shaoheng resigned as chairman and was replaced by Li Guowei.

The property of the He Shaoheng family mainly consists of three parts: banking, real estate, and trade.

The family holds 6.46 million shares of Hang Seng Bank and 2.94 million shares of Wing Lung Bank; owns multiple property equity and independent garden houses; Hengchang Trading Co., a joint venture with He Tian and others, sold 7.5 billion Hong Kong dollars in cash. He Shanheng The family holds 35% of Hengchang shares. The family property is estimated at HK$10 billion.