After watching Li Yi leave, Li Fu Tiao’s mind remained unsettled for a long time.
The Li family is finished, and Longheng Bank is likely headed for bankruptcy!
As a financial titan, Li Futao understood Hong Kong’s financial industry better than anyone. He knew full well that the market in Hong Kong was limited, and competition in every sector was fierce—including, of course, the banking industry.
Here, a bank absolutely cannot afford any serious negative publicity; otherwise, not even a god could save it.
After all, every bank holds the financial security of tens of thousands of families, and no one would risk their life savings.
Countless banks on Hong Kong Island have proven this through their past bankruptcies—take the once-renowned Liu Chong Hing Bank, for example.
As one of the earliest private banks established on Hong Kong Island, Liu & Chuang Bank held a pivotal position in the local banking sector during the 1950s and 1960s.
But on June 13, 1961, Hong Kong newspapers reported: “A well-known local banker has become the subject of a police investigation and has been ordered to leave Hong Kong.”
At the time, numerous negative rumors about Liu Chong Hing Bank were already circulating on Hong Kong Island. The publication of this news caused public suspicion to focus directly on Liu Chong Hing Bank.
Although the Hong Kong Police Force issued an urgent denial the very next day, Liao Chuangxing Bank still faced a massive bank run, with over 3 million Hong Kong dollars withdrawn that same day.
Over the next two days, the run on the bank intensified, with over 30 million Hong Kong dollars withdrawn, forcing Liao Chuangxing Bank to seek assistance from the two note-issuing banks, HSBC and Standard Chartered.
A month later, Liao Chuangxing Bank’s chairwoman, Liao Baoshan, passed away due to illness. The bank’s board of directors was reorganized, and the bank never fully recovered.
In addition to Liu Chong Hing Bank, many banks on Hong Kong Island also experienced similar situations. For instance, Chinese-owned banks such as Guangdong Trust Commercial Bank, Hang Seng, Kwong On, Tao Heng, and Wing Lung were successively hit by bank runs; even the renowned Hang Seng Bank could not escape this fate.
At the time, Hang Seng Bank was also hit by a run on its deposits over a minor issue, losing over 200 million dollars in deposits within half a month. With no other options left, Hang Seng Bank had no choice but to sell a 51% stake to HSBC, thereby relinquishing control.
Although Longheng Bank was no pushover, after the Lai family had siphoned off so much of its capital, facing such a severe run on the bank—well, even a fool could see how this would end!
Li Futao truly never imagined that the Lai family, which controlled Hong Kong’s sixth-largest bank, would be driven into a corner like this, on the brink of collapse.
He recalled how, just over ten days ago, Li Yi had rushed back to Hong Kong Island, declaring to him that he intended to seek justice for Huang Lixing—and that the Lai family would be the first to pay the price. At the time, Li Futao hadn’t really believed Li Yi could pull it off.
After all, the Lai family’s strength was undeniable; even the Li family would have struggled to take them on.
Yet Li Yi, an outsider, had managed to stun the Lai family and the entire British-owned conglomerate with just a few well-timed moves.
As for Ma Biao, the man who had laid a hand on Huang Lixing, Li Yi hadn’t even bothered to acknowledge him.
But now it seemed that bastard’s fate wouldn’t be much better than the Li family’s.
To be honest, Li Futao was truly stunned by Li Yi’s tactics.
What does it mean to “defeat the enemy through strategy” and “subdue the enemy without fighting”? This is exactly it!
Look all over Hong Kong Island—you won’t find a second person with such skills.
For those Westerners from the British-owned conglomerate to go out of their way to pick a fight with him—aren’t they just asking for trouble?
But considering the current tense relations between the two sides, the British-owned conglomerate—and indeed the Hong Kong-British government backing them—would certainly not give Li Yi a warm welcome. After all, he has official ties to the other side.
It’s like two tigers fighting—one is bound to get hurt!
Judging by the current situation, the British colonial government and their master, Big Ben, haven’t gained the upper hand in negotiations with the other side, and the British-funded conglomerates are unlikely to come out on top in their struggle against Li Yi.
Things are getting more and more interesting. Li Futao is actually curious to see what choice the Lai family will make next!
………
Downtown. The Li Residence!
In the study, Li Jiuying clutched the phone in his hand, his face grim.
Just moments ago, he had received a call from the board of directors at Longheng Bank, demanding that the Li family immediately repay the 1.5 billion yuan they had borrowed.
That’s right—the Li family had borrowed not 500 million, but 1.5 billion from Longheng Bank.
Of that amount, 500 million was borrowed this time to cover payments to customers at their jewelry store, while the remainder was borrowed earlier to expand into real estate and other industries.
They had originally assumed that, as major shareholders of Longheng Bank, borrowing from their own bank would mean they wouldn’t be pressured to repay the debt.
But they never imagined the collection call would come so soon—and that it would be made personally by President Charles’s assistant!
Although that loose woman’s tone on the phone was still relatively polite, Li Jiuying could detect her hardline stance. Clearly, that vile woman had been instructed by that foreign devil Charles—those bastards were determined to drive the Li family to ruin.
Being hounded for debt by his own bank, Li Jiuying felt he must be the most humiliated banker on the entire island of Hong Kong!
The reason for this situation was entirely because, although the Li family was the majority shareholder of Longheng Bank, he was not the chairman of its board of directors.
The chairman of the bank’s board was Charles, another member of the British-owned conglomerate, yet his stake in Longheng Bank was a mere 17%, far below the Li family’s 42%.
However, since the Lai family did not hold an absolute controlling stake in Longheng Bank, they held only one seat on the board and were unable to reorganize the board of directors.
Originally, after acquiring a stake in Longheng Bank, the Li family had planned to restructure the board and nominate Li Jiuying as chairman.
However, Charles persuaded the Duke to intervene and mediate, and since the Li family held less than 51% of the shares, they ultimately abandoned their plan to restructure the board and instead threw their full support behind Charles’s control of Longheng.
But they never imagined that now, just as the Li family has fallen on hard times, they would turn their backs on us and try to cut us off at the knees.
Li Jiuying knew full well that they simply couldn’t come up with 1.5 billion in funds right now!
Although the Li family currently owns a significant number of real estate properties—for example, they invested in a large shopping mall in Happy Valley, pouring 300 million into it over the years.
Another example is a residential development in Causeway Bay, which also required an investment of several hundred million.
If you do the math, the Li family’s real estate holdings are worth at least 2 billion Hong Kong dollars. Add to that the 36 gold shops in the city and their other properties, and the total value wouldn’t be less than 2.3 billion Hong Kong dollars.
Then there’s the 42% stake the Lai family holds in Long Heng Bank; before the bank run, those shares alone were worth 1.5 billion Hong Kong dollars.
But just how much they’re worth now—only heaven knows.
These assets may seem substantial, but it’s important to note that they are merely assets, not cash.
To repay the bank, they would have to sell these properties. However, with the entire Hong Kong Island currently facing a severe stock market crisis and real estate prices plummeting—with the vast majority of properties already halved in value and the downward trend continuing—
It’s easy to imagine that if they were to put these properties on the market now, regardless of whether there are any buyers—and even if there were—the prices would be driven down to rock bottom.
But he also knew that the depositors were desperate for their money, and the bank simply didn’t have that much cash on hand.
And if the bank runs out of funds, it will put pressure on the Lai family. If they cannot raise the money, their properties will likely be forcibly repossessed and auctioned off.
It’s safe to say that right now, the Li family is truly at a critical juncture—a matter of life and death!
One misstep could mean losing everything—bankruptcy and the destruction of their family!
With this in mind, Li Jiuying thought of the bigwigs at the British-funded conglomerate and the promises they had made to him.
Without delay, he picked up the phone and dialed a number…
………