Chapter 848: Feint East, Strike West!
“Mr. Li, let me start by updating you on the situation at our New Territories Warehouse!”
Li Yi glanced over and saw that the man who had stood up was He Yunsheng, the general manager of New Territories Warehouse.
This man had originally been a department manager at Jardine Matheson, specifically in charge of New Territories Warehouse operations. He was quite capable and had been Powell’s intended choice for the position of General Manager of New Territories Warehouse.
Unfortunately, before He Yunsheng had a chance to build up enough seniority, New Territories Warehouse was acquired by Li Yi.
When Powell chose to settle with Star Company, He Yunsheng had originally planned to leave New World Warehouse, but unexpectedly, Powell recommended him to Li Yi.
Li Yi didn’t hold any bias against him simply because he was recommended by Powell. After a thorough discussion with He Yunsheng, he found him to be a capable and innovative individual, so he kept him on and appointed him as the General Manager of New Territories Warehouse.
“Go ahead!”
He Yunsheng replied immediately: “Last Wednesday, those foreigners suddenly launched a short-selling attack against New Territories Warehouse. They first borrowed 50 million shares from institutional investors to cash out, then began spreading rumors in the media. We reacted promptly, so although the stock price dropped slightly, the impact was minimal.”
“However, the Governor’s Office intervened in the matter and suddenly announced that our company’s facilities posed major safety hazards, ordering the Security Bureau to investigate us. As a result, our stock price plummeted, and we suffered heavy losses…”
Before Ho Yun-sang could finish, Li Yi asked, “What’s the stock price now?”
“It’s down to just 8 Hong Kong dollars per share!” He Yunsheng replied.
Hearing this, Li Yi couldn’t help but furrow his brow.
He knew that New Territories Warehouse’s stock price had been hovering between 17 and 19 Hong Kong dollars until recently; he hadn’t expected such a steep drop—a 60% plunge.
Li Yi looked at He Yunsheng and asked, “So, how do you plan to handle this now?”
He Yunsheng replied immediately, “Originally, we planned to raise funds to prop up the stock price and ensure it didn’t plummet too low, but we have less than HK$200 million in the company’s accounts—it simply can’t withstand such a drain!”
“So we adjusted our strategy. While the other side was dumping shares, we took advantage of the stock’s plunge to buy up shares on a massive scale.”
Upon hearing this, Li Yi’s eyes lit up, and he asked immediately, “So how many tradable shares have you acquired so far?”
“We’ve acquired 24 million shares. Currently, we not only control 57% of the non-tradable shares but also hold 8% of the tradable shares!” He Yunsheng said.
“Good. I’ll have the finance department transfer 500 million Hong Kong dollars to you shortly so you can continue buying up the company’s shares!” Li Yi said.
“Yes, sir!”
No sooner had He Yunsheng sat down than Xie Tianhua, the newly appointed General Manager of Hang Seng Bank, interjected, “Boss, Hang Seng has also been targeted by short sellers this time. However, since we’ve just completed our business integration and were well-prepared, our stock price only dropped by about 10%. It’s been recovering steadily over the past few days, so the losses aren’t too significant. But…”
“But what?”
“But according to my investigation, those foreigners seem to be specifically targeting our company. They won’t give up so easily; we still need to prepare early!” Xie Tianhua said.
Li Yi nodded and said, “Your concern is well-founded. However, we hold a relatively high stake in Hang Seng, so those guys have limited room to maneuver. Even if they do make a move, it’s highly unlikely they’ll target your bank!”
“Let’s hope so, but we can’t let our guard down. Those foreigners are constantly scheming to regain control of Hang Seng and Longheng Bank!” Xie Tianhua said.
“Hmm…”
Just then, a female secretary suddenly pushed open the door and walked over to whisper a few words in Lan Xinming’s ear.
Lan Xinming immediately stood up and said to Li Yi, “Boss, we’ve just received word from the exchange—those foreigners have made another move against us!”
Li Yi replied calmly, “Hang Seng or New Territories Bank?”
“Hang Seng. Someone just started buying up Hang Seng shares in a big way—the stock price has already jumped 5% since the market opened!” Lan Xinming said.
Li Yi gave a cold smile and said, “Petty tricks. These foreigners are clearly trying to distract us—their real target is still the New Territories Warehouse!”
“Boss, what should we do?” He Yunsheng asked in a low voice.
Li Yi paused to think for a moment, then said, “Go back immediately and hold a press conference. Announce that our company will invest 1 billion Hong Kong dollars to rebuild the New Territories Port, increasing its throughput capacity to 10 million TEUs!”
“At the same time, the company will invest another 4 billion Hong Kong dollars to build a large-scale CBD and a high-end residential complex in New Territories Port, and renovate all warehouses, hotels, restaurants, and other facilities in the port area.”
No sooner had he finished speaking than He Yunsheng exclaimed in surprise, “Boss, are you planning to use fake news to drive up the company’s stock price?”
Li Yi smiled and said, “Boosting the stock price is true, but what I just said isn’t fake news either!”
“Are you really going to invest that much money in construction?”
“Yes, we’ll discuss that later. For now, go back and call a press conference!”
Li Yi then turned to Pang Feiyan and said, “Manager Pang, gather your team and come with me to the stock exchange right now!”
“Yes…”
………
Far East Stock Exchange!
By the time Li Yi and his group arrived, the market had been open for over an hour.
No sooner had they arrived than Li Futao, having received word, walked into the VIP lounge where Li Yi and his group were waiting.
“Brother Li Yi, those foreigners are eyeing the Hang Seng Index again. What should we do?”
“Old Li, stay calm!”
Li Yi then turned to Pang Feiyan and said, “Check the turnover rate of New Territories Warehouse shares immediately. See if anyone is quietly accumulating shares. At the same time, contact the other shareholders and ask if anyone has been secretly approaching them!”
“Yes!”
After Pang Feiyan and the others had left, Li Futiao looked at Li Yi and asked, “Are you worried they’re going to make a move on New Territories Warehouse?”
“Yeah. We’re the absolute majority shareholders in Hang Seng. No matter what those foreigners try to pull, I couldn’t care less!” Li Yi said.
“Huh, you’re the controlling shareholder of New Territories Warehouse too, so how come…”
“Heh, not many people know we’re the controlling shareholders of New Territories Warehouse. When we made the announcement last year, we only said that our Star Company held 38% of the shares, with the rest scattered among other major and minor shareholders!”
Li Yi continued, “To some people, this is a rare opportunity!”
“But didn’t they already try to take over New World Warehouse before? Aren’t they afraid you’ve prepared for this?” Li Fu asked.
“That was just a test run. The real move is yet to come!”
Li Yi continued, “If things go as expected, those guys are already quietly buying up New Frontier Warehouse shares behind the scenes, while simultaneously reaching out to those scattered small shareholders to prepare for a massive acquisition of their holdings.”
“Are you saying they want to seize controlling interest in New Territories Warehouse?” Li Futao asked.
“Not necessarily. It could also be a low-price acquisition, waiting for the stock price to rise before selling at a high—after all, one of the main reasons these guys came to Hong Kong Island is to make money!” Li Yi said.
“So what do you plan to do…”
Before Li Futiao could finish, Pang Feiyan hurried in and said to Li Yi, “Boss, you really are a prophet. Someone is indeed secretly buying up shares of New Territories Warehouse.”
“They’re likely keeping a low profile to avoid alerting the target, so their moves aren’t very aggressive. Even so, New Territories Warehouse’s turnover rate has far exceeded that of other stocks since the market opened, and the share price has risen slightly.”
Li Yi’s lips curled slightly upward, and he said to Pang Feiyan, “Place an order immediately to buy New World Warehouse shares at a high price—HK$1,800 per lot!”
At these words, both Pang Feiyan and Li Futao were taken aback.
HK$1,800 per lot equated to HK$18 per share, whereas New World Warehouse was currently trading at just over HK$9 per share—effectively doubling the stock price.
After the initial shock wore off, Pang Feiyan immediately confirmed, “Boss, did you just say HK$1,800 per lot?”
“Yes, 1,800!” Li Yi said firmly.
Upon receiving a definitive answer, Pang Feiyan didn’t hesitate. She immediately replied, “Yes,” and hurried off toward the trading floor.
Soon, the Far East Stock Exchange was abuzz with excitement over Li Yi’s order…
……..