Before Lin Baicheng even returned to Hong Kong, his associate Cheng Yufeng had already begun reaching out to institutions holding shares of Cangjiang Industries, following Lin's phone call. His task was clear — to quietly buy up their holdings.
These institutions — funds, securities firms, and banks — all owned shares for one purpose: profit. Few held stocks for years or decades out of long-term confidence. As long as the price was right, they didn't mind selling.
Naturally, purchasing shares from institutional hands required paying a premium — the exact amount depending on negotiation.
The year 1977 had been a turbulent one for the stock market. When Lin Baicheng first tried to acquire Wharf Holdings, the Hang Seng Index happened to be on an upward trend. But afterward, it began to decline. Still, by the last trading day of the year, it closed above 400 points.
Then came 1978. By January, the market weakened again — the Hang Seng dropped below 400 and hovered around 390, showing signs of further decline.
With Lunar New Year approaching, many Chinese investors were cashing out to prepare for the holiday. Heavy selling pressure met with few buyers, and naturally, the market drifted downward.
In such conditions, anyone willing to buy at a premium was welcomed. As long as the price was satisfactory, institutions were eager to sell.
The afternoon after securing his bank loan, Lin returned to Hong Kong. Cheng Yufeng reported good news — several deals were already completed. They had acquired 7.6% of Cangjiang Industries shares at an average 12% premium.
It wasn't an exorbitant premium, but it was fair. The institutions still made money; it was only a matter of how much profit each one gained depending on their initial cost.
Still, that wasn't enough. Lin instructed Cheng to continue acquiring shares and said the price could be slightly raised if necessary.
The next day at noon, in Central —
Li Jiacheng, who had been quietly targeted by Lin's secret stock acquisitions, arrived at a teahouse after receiving an invitation.
"Ah, Brother Li, you're here."
As Li entered the private room, the host, Feng Jinxi, was already seated, brewing tea.
"My apologies, Brother Feng. I'm late," Li said, sitting down opposite him.
"Not at all, Brother Li. I was just early," Feng replied with a smile, pouring a cup for his guest.
Li took a sip and nodded appreciatively. "Good tea."
Feng smiled, savoring his own cup in silence. Seeing this, Li didn't rush to ask why he'd been invited — he knew Feng would get to the point in time.
After a few more moments, Feng finally spoke. "Brother Li, have you heard the recent news about your company?"
"Something happened?" Li asked, puzzled. "Please, enlighten me."
He shook his head slightly. The company had been developing smoothly without any obstacles. But since Feng had brought it up, clearly something had occurred — something he was unaware of.
Feng said, "You know my company deals in finance. We often keep in touch with major institutions in Hong Kong — it helps avoid unnecessary conflicts."
"You mean something's happening in the stock market?" Li asked, brows knitting slightly. "But Cangjiang Industries' price has been stable lately — no sudden spikes or plunges, no unusual volume. There shouldn't be any large-scale buying behind the scenes."
As soon as Feng mentioned the market, Li understood the hint. He himself had once considered acquiring Wharf Holdings shares through the market, so he naturally feared someone might try the same against him. For that reason, he monitored his company's stock trends weekly to guard against exactly this situation.
"Brother Li, you're mistaken," Feng said meaningfully. "It's not in the open market. Certain institutions holding Cangjiang Industries shares have recently been approached — someone is offering to buy at a premium. From what I hear, they've already acquired a fair amount."
Although Cheng Yufeng's negotiations with the institutions included confidentiality agreements, leaks were inevitable. If one side wanted to talk, no contract could fully prevent it.
From the moment Lin began contacting institutional shareholders, exposure had been only a matter of time. Every extra day it stayed secret worked in his favor.
"So, the visitor comes with ill intent," Li murmured.
Despite saying that, he wasn't truly worried. He personally owned just over 40% of the company's shares — enough to firmly control it. Even if someone tried to seize control, he could simply buy more; a 10% increase in his holdings would easily secure dominance.
"Brother Li, since you hold nearly half the company, you have nothing to fear," Feng reassured him. "Whatever their purpose, you remain the fisherman sitting calmly above the water."
"Still, thank you for the warning, Brother Feng," Li said sincerely. "Otherwise, I might've remained in the dark."
Though he wasn't concerned about losing control, he needed to know who was behind this. A new major shareholder could influence the company's direction — and if they turned out to be hostile, that could spell trouble for its growth.
"You're too polite," Feng said.
The real reason Feng had informed Li wasn't altruism — it was to earn a favor. With his connections, he could easily find out who was behind the secret acquisition, but he preferred to stay out of it. Exposing the culprit might earn him an enemy; gaining a debt of gratitude from Li was reward enough.
After finishing tea, Li took his leave, his mind heavy with thought.
Back at the office, he immediately ordered his staff to investigate who had been buying up Cangjiang Industries shares in recent days and how much they had already acquired.
It wasn't something that could be discovered instantly. Meanwhile, Lin Baicheng had no idea that Li, thanks to Feng's warning, was now aware of the covert acquisitions. Cheng Yufeng continued negotiating with the remaining institutions.
By the following day, Li had his answer. There was no way to keep something like this secret for long.
"How could it be him?"
Li frowned as he read the report. The name "Lin Baicheng" — the young rising star of the business world — puzzled him deeply. Why was this man secretly buying up Cangjiang Industries stock?
"No matter," Li muttered after a pause. "Once I meet him face to face, I'll know his intentions."
He set the file down and decided to contact Lin directly — to let him know that the game of secrecy was over.