On September 13, the third day of the run on the Lai Family Jewelry Stores, the situation was finally stabilized after the Lai family deployed massive amounts of capital.
Over the past three days, all 36 of the Li family’s branches in Hong Kong Island had faced massive runs on the bank. Hundreds of thousands of investors had withdrawn 780 million Hong Kong dollars in cash from Li Family Gold Shops in a very short period of time.
At the same time, customers withdrew gold worth 500 million Hong Kong dollars.
In less than three days, the Lai family had suffered losses exceeding HK$500 million.
Fortunately, Lai Kau-ying, the head of the Lai family, was a man of great resolve. No matter how many people came to demand their money, he insisted on honoring all payments in full.
Moreover, he paid in cash where cash was demanded and in gold where gold was demanded, never shirking his responsibilities.
At the same time, media outlets controlled by British-owned conglomerates went all out, vigorously praising the Lai family’s responsible approach.
Even the Governor’s Office, in a rare move, stepped in to publicly endorse the Lai family.
Soon, some of the clients who had originally intended to redeem their holdings let down their guard and abandoned their claims. Miraculously, the once-teetering Lai family managed to stabilize the situation.
Moreover, after weathering this run on the bank, the people of Hong Kong not only retained their trust in the Lai family but actually held them in even higher regard.
It could be said that although the Lai family lost a significant amount of money in this turmoil, they gained an excellent reputation!
However, just as Lai Jiuying and the British-backed conglomerate behind him thought they had finally weathered the storm, the media broke a story that caught them completely off guard.
Once again, it was the South China Evening News that broke the story first, reporting that informed sources revealed the Lai family’s ability to so resolutely repay clients in full with cash and gold was entirely due to Longheng Bank keeping them afloat.
The report also exposed the truth of the matter, revealing that on the very day the Lai family faced a run on their business, Lai Jiuying leveraged his position and influence at Longheng Bank to secure a massive unsecured loan worth 500 million Hong Kong dollars, which was used to settle payments to customers at the Lai family’s jewelry store.
In effect, this meant the Lai family was using Hang Lung Bank depositors’ money to keep their jewelry store afloat.
More importantly, this report in the *Nan Hua Evening News* described the detailed sequence of events with great authority, even publishing a copy of the loan agreement signed by both parties in the newspaper.
At the same time the *Nan Hua Evening News* reported this story, a slew of tabloid newspapers jumped on the bandwagon.
Unlike the *Nanhua Evening News*, which merely reported the facts without speculation or conjecture, these tabloids let their imaginations run wild. Some claimed that the Li family had long since squandered investors’ money and had been relying on bank loans to keep up appearances.
Other tabloids reported that the Li family had long anticipated a run on their jewelry store, so they had transferred their assets to Zaiying Bank well in advance; the Li family was now nothing more than an empty shell.
Some tabloids even went so far as to wildly speculate that the Li family had already squandered all the customer deposits at Longheng Bank, and that everyone’s money was about to go down the drain.
The moment this news broke, it sent shockwaves throughout Hong Kong Island.
In the blink of an eye, a massive crowd of depositors rushed to Longheng Bank, scrambling to withdraw their funds.
Longheng Bank reacted swiftly, holding a press conference that very afternoon to solemnly declare that it had no financial ties to the Li Family Gold Shop—yet it remained silent on the loan agreement.
However, the bank stated that it would immediately raise funds to prepare for depositors’ withdrawals.
Although Longheng Bank’s public relations response was timely, the people of Hong Kong Island were not convinced. Soon, long lines formed outside all of Longheng Bank’s branches, and a bank run began.
Li Family Manor. Study!
When news broke that Longheng Bank was facing a full-scale bank run, Li Yi was having tea and chatting with Li Futi and Huang Lixing!
They were all in high spirits, as Li Yi and Li Futao had just received the profits from their gold investment.
Starting on September 2, they had bought gold at a price of around 3,500 Hong Kong dollars per tael and eventually sold it at a high price of 5,500 Hong Kong dollars.
After deducting various costs, the return on this investment reached 40%. Li Yi and his company, Starry Sky, raked in over 70 million Hong Kong dollars, while Li Futao also pocketed a hefty 60 million.
Even by their current standards, this was still a colossal sum.
More importantly, through this counterattack, they dealt a crushing blow to the Lai family, the foot soldiers of the British-owned conglomerate.
Just as they received their investment returns, they learned that Longheng Bank had suffered a run on deposits, which put the three of them in an even better mood.
“Brother Li Yi, how long do you think the Lai family can hold out this time?” Li Futao asked with a smile.
“Three days—three days at most!”
“No way. The Li family has suffered significant losses, but they aren’t insolvent. How could they possibly only last three days?” Li Futiao asked in surprise.
Huang Lixing, standing nearby, added, “Exactly. I don’t think that’s likely either. After all, the Li family has the British Capital Group backing them. As long as they’re willing to bail them out, even if the Li family can’t weather this crisis, they shouldn’t collapse that quickly, right?”
However, Li Yi replied calmly, “Theoretically, that’s true. But that’s just theory. In reality, given the current situation, the British Capital Group won’t just fail to help the Li family—they might even take the initiative to drain them of their very last drop of blood!”
Upon hearing this, Li Futao fell silent.
Having dealt with those Westerners for so many years, he knew exactly what they were like. When they were useful, they were close partners; but once they lost their value, it was entirely possible they’d be discarded like worn-out shoes.
If the Li family could weather this storm, that would be one thing, but if they showed any signs of collapse, the British-owned conglomerate might be the first to strike.
After all, they all had business dealings with the Li family to some extent; if the Li family collapsed, they would certainly suffer losses.
Given those foreigners’ purely profit-driven nature, they’ll undoubtedly secure their own interests before the Lai family even goes under.
If that happens, the Lai family will go under even faster.
“Is there any chance the Lai family could turn things around on their own? After all, Longheng Bank’s situation isn’t as dire as the outside world claims. If Longheng Bank can hold on, the Lai family should be able to survive as well!” Huang Lixing suddenly asked.
Li Yi smiled and said, “The problem is that the chances of Longheng Bank surviving are slim to none, unless the British-owned conglomerate is willing to bail it out at any cost—and the funds would have to be at least 1 billion Hong Kong dollars!”
“But that’s practically impossible. After all, no one would pour that much money into a pawn that’s lost its utility—let alone the self-serving Anglo-Saxons!”
“So does that mean the Lai family is doomed?”
“Not necessarily. It all depends on what Li Jiuying does!” Li Yi said, making a startling remark.
“Brother Li Yi, what do you mean?” Li Fu asked, a hint of confusion in his voice.
“If I’m not mistaken, it won’t be long before the British-funded conglomerates abandon the Lai family—or even kick them while they’re down!”
Li Yi continued, “If Li Jiuying is smart enough, he’ll come to us with Ma Biao’s head to make peace! If he really does that, I wouldn’t mind letting him off the hook!”
As far as Li Yi was concerned, the mastermind behind this incident was undoubtedly the British-funded group, with Ma Biao serving as the executor. As for Li Jiuying and the Li family, they were merely intermediaries facilitating communication between the two.
If the Li family were truly willing to switch sides, Li Yi wouldn’t mind sparing them. After all, even if they managed to survive this crisis, they would be severely weakened and, clinging to life, would be unable to cause any significant trouble.
But his presence could serve a triple purpose: it would infuriate the British-backed group, allow him to deal with that bastard Ma Biao without spilling a drop of blood, and serve as a warning to those forces willing to act as lackeys for the British-backed group—this is the fate of those who act as lackeys.
Killing three birds with one stone—why not?
“What if he remains stubborn?” Li Futao said in a low voice.
Li Yi replied calmly, “If he insists on going down that path to the bitter end, then we have no reason to hold back—we’ll just crush the Li family!”
“So what do we need to prepare now?”
“First, secure the funds to acquire Longheng Bank!”
Li Yi continued, “At the same time, let the word out that as long as the Li family takes out Ma Biao, we’re willing to make peace with them!”
“Alright, I’ll have someone handle that!”
“Alright…”
………