Chapter 214: Acquiring Seven Buildings on Hong Kong Island
Afterward, Zheng Zhijie continued introducing the various properties held by Liu Chong Hing Bank's affiliated real estate company.
Yang Wendong listened carefully, one by one, until the final property had been presented.
After the summary, Yang Wendong remarked, "Liu Baoshan has accumulated quite a lot over the past decade, especially with such easy access to financing. The total volume of real estate under his name is impressive. At market value, it must be close to HK$100 million, right?"
Zheng Zhijie replied, "Yes, just the three buildings in Central alone are worth over HK$10 million. Across Hong Kong Island, there are numerous residential and office properties. Even conservatively, if not HK$100 million, the portfolio is worth at least HK$70–80 million.
However, we still don't know how much of that is leveraged—how many of these properties are mortgaged. The documents Liu Chong Hing Bank provided don't specify."
"That's not important," Yang Wendong said. "When we buy the properties, we pay the Liu family directly. As for any existing debt, it was borrowed from their own bank, so that'll disappear anyway. It'll just be a straightforward transaction—cash for property."
In normal cases, a property transaction involving existing loans can be structured in two ways: either the buyer assumes the loan, or the seller pays it off with the sales proceeds. Fundamentally, it's the same—just a matter of liquidity pressure.
But in the case of Liu Chong Hing's assets, only the latter makes sense. Since the lender and the seller are the same entity, it makes no sense to "buy the debt."
Zheng Zhijie nodded. "Understood. So which properties are you targeting, Mr. Yang Wendong?"
"I want all three in Central—especially that 25-story tower. We must secure that one," Yang Wendong said, then paused before adding, "As for the rest, take as many as you can. I've already secured HK$28 million in financing from HSBC and Standard Chartered. Changxing Industrial will also allocate some internal funds to this effort."
Zheng Zhijie looked slightly worried. "Mr. Yang Wendong, taking on so much additional debt for real estate might be risky. We've already invested heavily in the Kwun Tong Industrial Park. If the market doesn't recover soon—or worse, continues to fall—we could be seriously overexposed."
"You don't think the real estate market will bounce back?" Yang Wendong asked.
He wasn't angry at the question. In fact, he was pleased. That was how a professional manager should think—analytically and responsibly. Apart from himself, the only one with real foresight into the future was the man who had lived it once before.
Zheng Zhijie said, "The industrial and trade sectors in Hong Kong are doing well. In the long term, I do believe the market will grow.
But short-term, things are uncertain. The bank run at Liu Chong Hing has already started affecting other banks. I've heard that the government is considering new banking laws to limit risky practices.
If that happens, financing will tighten. And that'll definitely ripple through the real estate sector."
"Your analysis is sound—but you're overestimating the government's efficiency," Yang Wendong chuckled. "Besides, Changxing Industrial's profit margins are very high. The loans we're taking now will be easily manageable later.
Once the Kwun Tong park is operational and our fleet expands, profits will increase substantially."
In the original timeline, when the bank run hit Liu Chong Hing, it caused panic among depositors, many of whom rushed to other banks to withdraw their money out of fear.
This forced the hands-off British colonial government to finally step in and ask HSBC to help stabilize the situation.
In the end, Liu's family suffered massive losses, but the rest of the market remained relatively unscathed. After a few months of stagnation, real estate prices began climbing again.
"Alright, I'll proceed with negotiations with Liu Chong Hing Bank," Zheng Zhijie said, nodding.
Since the boss had made up his mind, he wouldn't argue again—much less go against his wishes.
Yang Wendong added, "This round of acquisitions should focus on fixed properties—skip anything still under development. That kind of deal can get messy quickly.
We're also limited on time and capital. Focus on income-generating buildings that don't require much management."
Though Changxing Real Estate was already working on its third residential complex, it was still a relatively young player. Taking over multiple half-finished projects would only introduce chaos and risk.
In contrast, stabilized properties or plots of land were simple. Buy, collect rent, repay the loan, and monitor the market. If prices rose, sell. If not, hold.
These kinds of assets could also be used as collateral for future loans. Once prices went up again, properties that were already mortgaged to the max could be re-leveraged.
That was why real estate was so intertwined with finance.
"Understood. I'll prioritize Hong Kong Island properties," Zheng Zhijie said with a grin. "Though I doubt they'll sell us their current headquarters unless they're truly desperate.
But the under-construction tower is likely on the chopping block. And a location like that will attract plenty of buyers."
"Of course. Who wouldn't want prime Central real estate?" Yang Wendong said. "If competition heats up, we can offer a fair price. No need to exploit their desperation."
Compared to the long-term appreciation potential of such a premium asset, shaving off a few percent now was meaningless.
Besides, Yang Wendong's name now carried real weight. He was already under the watchful eye of the colonial government and the city's business elite. What he needed now was to expand his influence.
The Kwun Tong Industrial Park helped. So did the shipping company. But a high-rise in Central? That was a true status symbol.
"Got it. We won't haggle too much. That'll probably make them prioritize us as buyers," Zheng said.
"Exactly. Go talk to them. Keep me updated on any progress," Yang Wendong said with a nod.
Negotiations weren't his strong suit, even as a time traveler. His job was to set strategic direction—execution was best left to professionals: lawyers, bankers, and seasoned managers.
Over the next few days, Liu Chong Hing Bank was forced to shutter multiple branches due to cash shortages.
That only made the panic worse. Desperate depositors now surrounded the few locations still open—and the bank's main headquarters. The run intensified.
Rumors were flying all over the market—some said Liu Baoshan had committed suicide, others claimed he had fled Hong Kong. As the gossip spread, even newspapers picked up the stories, forcing the colonial government and police department to publicly confirm that Liu Baoshan was still in Hong Kong.
Zheng Zhijie's team quickly entered negotiations with the Liu family, discussing pricing for the properties.
Yang Wendong had temporarily set aside all other affairs. A once-in-a-decade opportunity to acquire large volumes of high-quality real estate like this didn't come often. And because the bank was in crisis, these real estate negotiations wouldn't drag on for long.
June 25:
Liu Baoshan stood by the window, staring blankly at the sea of people crowding the streets below. His face was pale, but there was nothing he could do.
At this point, he finally understood—everything that had happened was of his own making. If he hadn't recklessly used depositor funds to speculate on real estate, how would things have come to this?
Knock knock. A knock on the door brought him back to the moment. Seeing who it was, he said, "Come in."
"Dad, how's your headache?" Liu Liewen entered with a stack of documents. He didn't speak of business immediately, instead expressing concern for his father's health.
"It comes and goes." Liu Baoshan waved it off. "How are the offers from the buyers?"
He was reluctant, of course, but he knew his cherished properties were as good as lost. Even if the bank somehow survived, the debts would still need to be repaid through asset sales.
Right now, he only wanted to protect the Liu family's core business—the bank. Everything else, he was prepared to let go.
Liu Liewen said, "We've had offers from more than a dozen companies. Among them, even giants like Hongkong Land, Swire, and Wheelock have shown interest in our Central properties.
These are the offers we've received so far. Some are still negotiable, but given our situation, I doubt we'll have time for back-and-forth."
"No need to drag it out," Liu Baoshan said. "Whoever offers the highest, sell it to them."
"There's one buyer whose offer is the best overall—Yang Wendong. His offer is only slightly below normal market value," said Liu Liewen.
"Yang Wendong?" Liu Baoshan recalled the young man he had only met once and then glanced at the documents in front of him.
After reviewing them for a while, he said, "This price is actually quite generous—only about 5% below market value. But can he really raise that much cash in such a short time?"
"They say he can. Apparently, he secured emergency loans from HSBC and Standard Chartered," Liu Liewen replied. "I'm not sure why those banks approved such large loans so quickly."
"Alright then, sell to Yang Wendong. We're in urgent need of cash; there's no time to waste haggling with others," Liu Baoshan said.
"Understood." Liu Liewen hesitated, then asked, "What about your talks with the government? Selling property only solves the symptom, not the root. To stop the run, we need the government to guarantee our deposits."
At first calm, Liu Baoshan now flared with anger. "Those damn foreigners want to take this chance to swallow our bank whole. They've made outrageous demands. If I agree to them, the Liu family will be completely pushed out of the banking industry."
Liu Liewen understood just how dire things were. Maybe the colonial government didn't covet the bank directly, but many of its senior officials had close ties to British banking institutions in Hong Kong. Even if they couldn't act directly, there were always indirect channels.
Still, there wasn't much choice anymore. "The longer this drags on, the worse it gets for us."
"I know," Liu Baoshan nodded. "You focus on selling the properties. I'll keep dealing with the government."
"Okay," Liu Liewen said, aware that even in this dark moment, his father still had connections built over decades of business in Hong Kong.
Two days later, June 27:
Yang Wendong arrived at a luxury suite in The Peninsula Hotel.
Liu Liewen was already waiting and handed him a folder. "Mr. Yang Wendong, here are the documents for the seven commercial buildings in this transaction. Total price: HK$23 million. We've rounded down the small change.
Please review the contents."
"Alright," Yang Wendong said, taking the documents and reading them carefully before passing them to his legal team.
These seven buildings were the final result of his negotiations with the Liu family.
One of them was the future Liu Chong Hing Bank headquarters in Central. The remaining six were spread across prime locations: two in Admiralty, two in Causeway Bay, one in Wan Chai, and one in Happy Valley.
After about thirty minutes of final contract checks, Yang Wendong and Liu Liewen signed and sealed the deal.
"Congratulations, Mr. Yang Wendong," said Liu Liewen. "You are now the proud owner of seven office buildings on Hong Kong Island."
"Thank you, Mr. Liu," Yang Wendong replied. "I'll go to HSBC shortly to process the transfers. You'll receive the funds soon."
"Much appreciated," Liu Liewen nodded.
Yang Wendong added, "I hope your bank pulls through. Once things return to normal, we can work together again."
He didn't feel this was an opportunistic deal. If anything, he had offered above-market prices compared to the others. He had actually helped the Liu family avoid heavier losses in the property market.
Still, he knew better than to gloat or say anything cheerful in front of someone being forced to sell off family assets.
"I hope we can collaborate again," said Liu Liewen. "If that day comes, our bank will offer you the best rates in Hong Kong."
It wasn't exactly a case of "a friend in need is a friend indeed," but Liu Liewen knew that at least Yang Wendong hadn't taken advantage of them like others had—driving prices into the dirt because the Liu family was desperate.
Now that Yang Wendong owned so many prime properties—and already had a large industrial empire and a shipping fleet—it was likely that he would become one of the top Chinese businessmen in Hong Kong. Perhaps even surpassing Liu Baoshan's former peak.
If Liu Chong Hing Bank ever wanted to restore its former glory, it would need a reputable ally like him.
"Alright," Yang Wendong said. "But your bank still needs to push for government support. Only an administrative guarantee will restore confidence."
In a bank run, even massive injections of cash only delay the inevitable. What's really needed is restored trust.
No matter how healthy a bank is, it can't survive a full-blown panic. Right now, only the government or the most prestigious British banks—like HSBC, Standard Chartered, or Jardine—could serve as guarantors strong enough to calm the public.
Yang Wendong knew he wasn't there yet. His wealth and influence still didn't compare to the top-tier British financial groups.
"I understand. Thank you for the advice, Mr. Yang Wendong," Liu Liewen said with a polite smile.
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