Chapter 162: A 10-Million-HKD Bank Credit Line
December 25, 1959 – Christmas Day:
As a Western holiday, Christmas had little cultural significance for the local Chinese population. At the Changxing Industrial factory, work continued as usual, with production moving along in an orderly fashion.
The workers were more motivated than ever—after all, working here meant they could bring extra food home for their children every day.
At the tail end of the 1950s, even though people weren't starving anymore, regular access to white flour and meat was still a luxury for most families.
...
Inside the office building up front, Yang Wendong stood by the window, watching as dozens of workers busily loaded goods onto three cargo trucks.
Knock knock knock—a series of knocks broke his train of thought.
"Come in," Yang turned and walked back toward his desk.
It was Wei Zetao who entered. Holding a folder in his hand, he said, "Mr. Yang, this is the recruitment plan for Phase Two of the factory. Please take a look."
"Alright." Yang accepted the document and gave it a quick glance. "You're planning to hire 300 people before Phase Two is even complete? That's going to bring us to over 2,000 employees in total, isn't it?"
Wei smiled. "It's enough. Once Phase Two is operational, we'll be reallocating some staff from Phase One as well. The exact number will depend on actual production needs.
Also, the new buildings will be completed all at once, but the equipment—just like with Phase One—will be brought in batches. Dongsheng, our supplier, can't manufacture hundreds of machines all at once anyway. So we won't need to fill every position right away."
"Alright, then proceed with recruitment according to this plan," Yang nodded.
Wei continued, "Mr. Yang, the last page includes the written test questions we'll be using during the interviews. Please take a look."
Yang flipped to the last page, scanned it briefly, and said, "Looks fine. Not too hard. If they can answer most of this, they're at least meeting our basic standards for workers."
In 1950s–60s Hong Kong, there were certainly people who could read and write, but true primary school graduates were rare.
Besides, many applicants were from outside Hong Kong, and even some so-called university students didn't have certificates—or their documents were hard to verify. In such cases, direct testing or past work experience was more reliable.
"Alright, we'll begin recruitment right after the New Year," Wei said. "We're placing ads in Ming Pao. Since Hong Kong Chinese Daily is positioned as a high-end paper, it's not the right place to find factory workers."
"True, but when it comes to hiring mid-level staff in bulk in the future, you can consider using Hong Kong Chinese Daily." Yang nodded.
Before the internet, job hunting was done through newspapers. It was also one of the newspaper industry's most profitable services.
And it served as an effective filter. If someone couldn't even read the most basic job ad, they likely weren't suited for the role.
Since Hong Kong Chinese Daily was priced at 50 cents, it targeted a more elite audience—not suitable for recruiting blue-collar workers. In contrast, Ming Pao and other general newspapers were ideal.
"Understood," Wei replied. "One more thing—Mr. Liao Liewen from Liu Chong Hing Bank wants to meet you sometime in the next few days."
"Liao Liewen? I haven't seen him in a while," Yang said. "Did he mention why?"
"No specifics. Just said it's part of the bank's end-of-year visits to major clients."
"Makes sense," Yang nodded. "How much is left in our Liu Chong Hing Bank account?"
"About 500,000 HKD," Wei said. "We considered the fact that we still have multiple loans with them, so we didn't zero it out. We left some funds there, along with some transaction records—to maintain the relationship."
"Alright, leave it as is for now." Yang thought for a moment. "Tell him he can come at 9 a.m. tomorrow."
Even though loans and deposits were two separate things, maintaining good relations still had its value—especially since they had a year left. Keeping the Liu Chong Hing account active was a strategic move.
As long as he withdrew by the end of 1960, he'd be fine. Even if there was a sudden run on the bank, his loan line was much larger than his deposits. Whether the bank went bankrupt or was acquired, he wouldn't lose out.
...
The next morning, right at 9 o'clock, Liao Liewen arrived on time.
"Mr. Liao, long time no see," Yang greeted him with a smile. "I heard you recently took a second wife?"
"Sigh, not a concubine—a wife," Liao replied with a chuckle. "Even though Hong Kong law still retains parts of Qing dynasty codes, times have changed. These days, wives are wives, all equal. It's better not to use words like 'concubine.'"
"Haha, my apologies," Yang chuckled.
Hong Kong's legal system was a blend of Qing-era Chinese law and British legal traditions.
Basic human rights were still protected—you couldn't have concubines with inferior legal status anymore. While the term might still exist, in practice, the women were treated equally.
"No worries," Liao laughed. "Honestly, it's one of the best things about Hong Kong. Some of my Western friends are jealous."
"They're all the same," Yang said with a wry smile. "You think monogamous countries are truly monogamous? That's just what they show on paper."
Even world-famous figures got caught visiting shady islands—what could you expect from regular rich folks?
"Ha, that's true," Liao laughed. "Anyway, today's visit is part of the bank's year-end tradition. We're making the rounds to thank our major clients for their cooperation this past year."
"Well, it's been mutually beneficial," Yang replied courteously. "I appreciate the support Liu Chong Hing has given me."
"Mutual benefit is always the best outcome," Liao agreed. Then he added, "Aside from that, we also hope to deepen our cooperation with you next year."
"Of course," Yang nodded. "What sort of cooperation did you have in mind? Can you be more specific?"
"We're a bank, Mr. Yang," Liao replied with a grin. "Naturally, we're talking about loan services.
If you have any large investments coming up, come to us. We'll evaluate based on the risk level and decide how to proceed, including setting appropriate interest rates."
Yang nodded and then asked with a knowing smile, "Sounds like Liu Chong Hing has had a good year attracting deposits, huh?"
Liu Chong Hing's founder, Liao Baoshan, had spent the past year being very high-profile—granting interviews left and right. He was even being hailed as the next richest Chinese after Sir Robert Hotung.
In an age when most people had very limited access to information, his high-profile public image naturally drew in a lot of depositors.
This strategy reminded Yang Wendong of people like Steve Jobs, Elon Musk, and Lei Jun in his past life—entrepreneurs who used their own reputations to drive traffic and trust for their products.
"It's workable," Liao Liewen nodded. "But the money we've gathered through deposits still needs to be loaned out to create value. Mr. Yang, you're one of our top-tier clients."
Yang asked, "Isn't your father investing heavily in real estate?"
Liao laughed. "You're joking, Mr. Yang. It's true that my father has been focusing on property, but banking is still the foundation of our family business. We can't abandon it just because real estate is lucrative.
Besides, the percentage of bank capital that my father utilizes is still quite controlled. Whatever outsiders are worrying about, we've already calculated the risks."
Yang thought for a moment and said, "Mr. Liao, if I'm not mistaken, this move you're making today is your own initiative, isn't it?"
"You're absolutely right." Liao smiled. "I want to ensure that the bank's funds are channeled in ways that fit sound banking practices."
"You're quite thoughtful," Yang replied, now fully understanding the situation.
Everyone knew that Liu Chong Hing Bank's real estate play was high-risk. It could win a thousand times, but lose once and everything could collapse. As the heir apparent to the bank, Liao Liewen was clearly trying to hedge those risks.
But as long as his father was still in charge, his opinions had limited weight. Still, he was doing what he could to reduce exposure.
Liao continued, "I know my father is passionate about real estate, but he wouldn't outright sabotage the banking side of our operations.
That's why I hope premium clients like yourself, Mr. Yang, will take out larger loans from us."
"Fair enough," Yang smiled. "If more of your bank's funds are used in real business activities, your risk exposure does decrease."
What Liao wanted, in truth, was for Yang and others to help consume more of the bank's available funds—especially the newly deposited capital. That way, his father would have fewer bullets to fire in the real estate market.
No wonder he had taken the initiative to visit. Hong Kong's financial circles already had a rough estimate of Yang Wendong's wealth, and Liu Chong Hing Bank surely knew that he had been slowly transferring funds out.
And yet, they still came knocking with loan offers. Clearly, they had their own motivations.
"So I hope we can count on your cooperation," Liao said. "It benefits you as well."
Yang nodded. "What kind of credit line are we talking about?"
Liao paused before replying, "Based on our internal review of Changxing Industrial's financials, we're prepared to offer you a credit line of 10 million Hong Kong dollars."
"10 million?" Yang raised his brows. That was tempting. Still, he asked, "Can I invest in anything I want with it?"
"Not exactly," Liao said. "The bank still needs to review each project. But as long as the plan is sound, there shouldn't be any issue.
For example, if you want to invest in manufacturing or build a new factory, we just need to confirm that there's a viable market for your product.
And if you're investing in property, that's even easier. The building or land would be mortgaged to us, making internal processing more straightforward."
"Very reasonable," Yang nodded. Then a new idea popped into his mind. He asked tentatively, "What if I wanted to invest in shipping?"
"Shipping?" Liao hesitated slightly, then said, "Mr. Yang, it's not just our bank—even big institutions like HSBC aren't keen on investing in the shipping sector.
Unless the applicant is a legacy shipping company like Swire or Wheelock, most banks won't touch it."
"That so?" Yang asked. This was news to him.
He had always assumed that HSBC helped back Pao Yue-kong in his rise to shipping dominance. Apparently, that hadn't happened yet—or was just beginning. At this point in history, Pao wasn't yet a household name.
"Yes," Liao explained. "The industry is just too volatile. When times are good, you can earn the cost of a ship in a few months. But in a downturn, you might have to scrap your vessels to cut losses.
Worse, the collateral—the ship itself—is floating out at sea. Even if the bank seizes it, they'd have to spend money to maintain and store it. So most Hong Kong banks avoid it."
"Fair point," Yang said, nodding. "But shipping is a capital-heavy industry. Surely no one funds it entirely with their own money?"
"You're right," Liao said. "It's actually more capital-intensive than real estate. That's why Japanese banks like it. Their government supports the shipbuilding industry, so loans and construction come as a package."
"Ah, now I get it." Yang smiled.
Liao then asked, "So you're seriously considering entering the shipping sector?"
"Maybe in the future," Yang said calmly.
Liao didn't press further and instead shifted the conversation. "If shipping isn't urgent, why not consider real estate for now? You've got confidence in that industry too, right?"
"It's okay," Yang replied. "Alright, I'm open to cooperating. But I'll need time to decide what properties to buy."
"Great," Liao smiled. "If you don't have a clear target, just go for Central. My father's picked up a lot of properties there. These are all highly liquid, quality assets."
"Alright, I'll think it over," Yang said.
Liao wasn't wrong. Buildings in Central were always easy to offload. Historically, when Liu Chong Hing Bank faced a run, Liao Baoshan had to sell several buildings in Central at a discount to stay afloat.
Once a bank run begins, no institution can withstand it. Restoring credibility is the only way to survive.
"Well then, I hope you'll make your decision soon," Liao said.
"I'll let you know when I'm ready," Yang replied.
After some casual conversation, Yang saw Liao off. As he returned, he ran into Su Yiyi.
She smiled and asked, "Dong-ge, what's got you in such a good mood?"
Yang grinned. "A golden opportunity just landed in my lap."
He had just realized—if he took this loan, even if he didn't invest it right away, when the bank run eventually hit Liu Chong Hing, he could scoop up their Central properties at a steep discount.
It was, in essence, a real-life version of a martial arts maneuver—like something straight out of a Jin Yong novel: using your opponent's strength against them.
In this case, using their money to buy their buildings.
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