Chapter 251: The Opening of Changxing Tower and Massive Fleet Expansion
Yang Wendong stayed at the Bai residence until evening, and everything went quite smoothly. The families got along well, and Yang also agreed to give the Bai family some renovation contracts. Of course, the details would need to be discussed carefully. As long as there were no conflicts of principle, there would be no problem.
January 5th – Des Voeux Road, Central, Hong Kong Island:
Bang bang bang bang—! A string of firecrackers exploded outside the front doors of Changxing Tower.
Yang Wendong, Su Yiyi, Bai Yushan, Wei Zetao, Zheng Zhijie, Qin Zhiye, and other executives of the company stood together, with several holding cameras to document the event.
After the firecrackers finished, Yang Wendong smiled and said, "Let's all head upstairs. Each of you has your own office in Changxing Tower now. Feel free to use them whenever needed."
Today marked the official opening of Changxing Tower, which would serve as the new headquarters for the group. All key business leaders and subsidiary managers had been summoned to attend.
Just then, Zhang Hui approached. "Mr. Yang, some reporters from smaller newspapers are here. Should we receive them?"
"Small newspaper reporters?" Yang thought for a moment and replied, "Let them rest in the reception lounge, but no interviews or photography for now."
Unlike the opening of Changxing Mall, which was a public-facing commercial property, Changxing Tower was a private office building. There was no need to invite external guests.
In fact, media coverage for this type of opening was typically limited—unless it was a land king–level building.
Public interest was minimal, and the media would only mention it in passing, buried deep in the paper—if at all. Yang had already arranged for Honghua Daily to publish a brief announcement.
"Got it," Zhang Hui nodded. "Actually, they were hoping to interview you."
"Then let them go through the proper channels," Yang said with a smile.
While he was now a well-known figure in Hong Kong, he wasn't going to accept interviews from just any publication—especially not on a whim.
"Understood," Zhang replied.
…
The group followed Zheng Zhijie into the newly renovated building. After acquiring the property, the full interior refurbishment had been handled by Zheng's team.
The building had 25 floors. Yang's office was on the top floor, naturally, along with the offices of other business division heads—making internal coordination easier.
The two floors below were for the group's central office, which didn't generate direct profit but handled interdepartmental coordination, supervision, and auditing.
"This office is huge!" Bai Yushan said in amazement upon entering Yang's office. "It's bigger than the executive suite at HSBC!"
Yang laughed. "It's over 2,000 square feet. Of course it's big."
Now that they were based in Central, he had no reason to skimp on space. His office included a lounge area, private meeting room, bathroom, and even a bedroom—he could live here full-time if he wanted.
Su Yiyi, holding their child, asked curiously, "Yushan, you've been in HSBC's executive suite before?"
"Just once," Bai Yushan laughed. "My boss forgot some documents and called me to deliver them. That was the only time I ever saw it."
"Isn't your big boss about to retire?" Yang asked suddenly.
"Yes, Mr. Guy has mentioned plans to step down," Bai Yushan said. "He's been in that role for almost ten years. According to HSBC's internal rules, it's about time."
"Has his successor been decided?" Yang asked.
He already knew it would be Sanders, but he also understood the butterfly effect of his presence—there could be surprises.
"Rumors say it'll be Mr. Sanders, but until it's officially confirmed, we junior staff wouldn't know," Bai Yushan replied.
"I've got a feeling it'll be him," Yang smiled.
Before 1960, HSBC mostly partnered with British trading houses. Chinese businesspeople—unless they came from families like the Ho Tungs or the Lis—had no real access.
Even ordinary Chinese trying to open accounts faced numerous hurdles.
Sanders was different. He believed in working with Chinese businesses. Perhaps he had noticed that those "low-tier" Chinese banks—Hang Seng, Bank of East Asia, Liu Chong Hing—had all risen thanks to the Chinese community.
When Sanders was in charge of HSBC's lending department, he actively promoted cooperation with Chinese firms. Once he became chief executive, he went further, pushing partnerships in real estate and shipping.
"If that's true, it'll be good news for us," Bai Yushan said with a smile.
"Mm." Yang nodded. "I'm planning to visit HSBC in the next couple of days to meet with Mr. Sanders."
For Yang, that would be a strategic move. A pro-Chinese HSBC would make his real estate and shipping expansions far smoother.
"I'll take you," Bai Yushan giggled.
Three days later—
Yang Wendong and Zheng Yuhua, head of Changxing Shipping, visited HSBC's headquarters and met with Sanders.
"Mr. Sanders, nice to see you," Yang said with a handshake. "I hear congratulations are in order."
"Hahaha, Mr. Yang, you really do have your ear to the ground," Sanders laughed. "Please, have a seat."
After some small talk, Yang got to the point. "Mr. Sanders, I've placed an order for five new DC267 freighters from Japan, totaling $7.2 million USD.
The Japanese bank will cover half of that. I'll be paying $1 million myself, and I'm hoping to borrow the remaining $2.6 million from HSBC."
"Buying five ships at once—that's a bold move," Sanders smiled. "And I've heard you're also buying a fleet of second-hand vessels. As your financial partner, I have to ask—are you expanding too aggressively?"
Yang shook his head. "I'm very optimistic about the shipping market. The U.S. is driving global trade liberalization. More countries are lowering tariffs and barriers. That means shipping demand will only increase.
But shipbuilding can't keep up. So for a long time, shipping will remain profitable. If I believe in the future of this market, I have to go all in now."
Even without the 1967 Middle East crisis, the next ten years would be excellent for global shipping. It was the beginning of international trade.
Especially after 1970, the container revolution would slash transport costs. Port-handling jobs would suffer, but shipowners would make a killing.
Only by the early 1980s—after too many ships had been built—would the industry face a downturn.
"Mr. Yang, your thinking is very similar to Mr. Pao's. I too am bullish on shipping," Sanders said. "But aren't you taking on a lot of risk? You're putting up just $1 million and borrowing the rest."
Yang Wendong said, "As long as the ships are delivered on schedule, the revenue they'll generate will more than cover the interest. I've also brought a detailed operational plan. These ships will be leased to several Japanese shipping companies. Please take a look."
With that, Zheng Yuhua handed over the documents and said, "Mr. Sanders, please review them."
"Alright," Sanders took the materials and after reading through them, nodded. "It looks solid. If these are long-term lease contracts, then the risk is minimal."
Yang Wendong replied, "Mr. Pao's long-term charter model is indeed quite effective, but it's not suitable for my operations at the moment."
There was no need to overexplain. Many shipowners were reluctant to commit to long-term contracts at this stage. They feared missing out if shipping rates surged in the future. While it might seem shortsighted, this was the reality of the market.
"I understand," Sanders didn't press the issue. "As long as you're willing to personally guarantee the loan, HSBC can proceed with financing."
As the quasi-central bank of Hong Kong, HSBC had full visibility into local economic data. Changxing Industrial's export figures were astonishing—last year alone, they nearly hit 100 million HKD in export volume.
And with the new Wanren Industrial Park in Kwun Tong coming online, and no signs of production slowing elsewhere, breaking the 100 million mark this year—or even surpassing it—was entirely possible.
While Changxing's businesses weren't absurdly profitable in margin terms, they were far more efficient than the average Hong Kong factory. Sanders had no doubt about Yang Wendong's repayment capability.
"Great, no problem," Yang Wendong nodded. "Mr. Sanders, you're also aware that I'm planning to purchase a large number of second-hand cargo ships. If I provide a personal guarantee for those as well, could I secure a mortgage loan from HSBC?"
Although Yang Wendong could have paid out of pocket, after years of running Changxing Industrial, the company had substantial reserves.
But the golden rule of doing business was: always use other people's money if you can. It wasn't just about lowering risk—it also preserved his own liquidity. Company reserves were the last line of defense. Unless you had Apple-level cash reserves, this was how smart companies operated.
"How many second-hand ships are we talking about? What's the total cost?" Sanders asked.
"Nineteen vessels in total. Estimated at around 5.5 million USD," Yang Wendong replied.
"That's not too much," Sanders considered, then said, "At that price, the ship quality probably isn't great. Mr. Yang, typically, it's only those lacking capital who go after used ships."
"I understand," Yang Wendong said. "Once my management team is fully in place, we'll begin purchasing new ships as well."
The 1960s were a boom era for shipbuilding technology. Vessel sizes were increasing rapidly. Back in the 1950s, a 10,000-ton ship was already considered large. Many of Hong Kong's shipowners at the time were still operating ships under 5,000 tons.
But soon, 50,000- and even 100,000-ton freighters and oil tankers would be launched regularly.
The reason was simple: big ships were vastly more efficient. They could cut fuel consumption in half and transit time by several multiples. That's why the industry loved them.
Yang Wendong's current expansion was about building a team. Once that was done and his dry docks were complete, he would pivot toward acquiring larger, more modern vessels.
"Alright. As a bank, I shouldn't interfere too much in your business decisions," Sanders said. "I can approve the loan application, but for second-hand ships, we can only finance up to 50% of the purchase price. The interest rate will also be slightly higher."
"That's fine. Half is good enough. We can negotiate the rate," Yang Wendong said.
Used ships were notoriously difficult to finance—much like used cars in the future. Major banks almost never accepted them as collateral.
Sanders added, "Also, I can't make the final decision on my own. This will need to go through our internal review process."
"Understood," Yang Wendong replied with a smile. In truth, that already meant the deal was essentially approved.
The HSBC chief executive had near-absolute authority. In fact, HSBC once sold its Hutchison shares to Li Ka-shing at a steep discount without informing its other shareholders—Jardine Matheson and Swire. They even manipulated board meeting times so those firms would miss their voting rights.
That kind of corporate maneuvering would be unthinkable in a normal company.
Of course, Sanders wasn't yet officially the HSBC chief executive—but he was close.
"Well then, here's to a successful partnership," Sanders said cheerfully. In a matter of minutes, he had closed deals worth tens of millions.
He had strong faith in the shipping market, which is why he had been driving HSBC's pivot into maritime financing. Yang Wendong's various ventures—and his personal capability—made this a low-risk bet.
"To a successful partnership," Yang Wendong echoed as they shook hands.
With HSBC's backing, his expansion into shipping would go even smoother.
It was a mutually beneficial relationship.
After a bit more small talk, Yang invited Sanders to lunch, but the banker had a prior engagement with government officials and promised to meet another day.
Outside HSBC headquarters, Zheng Yuhua said, "Mr. Yang, once we receive the official documents from HSBC, I can sign the contracts with the Japanese shipyards and the European shipping firms."
"Good," Yang Wendong nodded. "If we can finalize these two major deals before the Lunar New Year, that would be ideal.
After that, focus on building our management team. Poach talent if necessary—or train them ourselves. Or work with Pao Yue-kong's Maritime Academy. Once our team is strong enough, I want to continue expanding our fleet."
Shipping was also a game of scale. The bigger your fleet, the lower your per-unit cost. And with the next 20 years set to be a golden era, this was the time to build.
"Understood," Zheng replied. "Also, Mr. Yang, news about our massive ship acquisition has already leaked. Once the contracts are signed, the deals will likely be made public—either through our partners or through HSBC."
"No problem," Yang Wendong said. "Besides, Oriental Daily is about to launch. This will make a perfect front-page headline."
After more than two weeks of preparation, Oriental Daily was ready to publish.
"It's not far from Honghua Tower," Zheng said. "I'll talk to Qin Zhiye about it."
"Alright. Let's go together. I want to check it out myself," Yang Wendong said.
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