Chapter 191: Successful Collaboration and the Plot for the Bus Company
One week later, Sanders arrived at Changxing Industrial with a team from HSBC.
Naturally, Yang Wendong personally gave them a tour of the Post-it note factory, followed by a visit to the nearby suitcase manufacturing plant.
"These things… shipping them overseas would definitely be a hassle," Sanders said after twisting and examining one of the suitcases.
Yang Wendong nodded. "Yes, these suitcases take up way too much space on a ship. If we use standard shipping methods, the cost is just too high."
At that moment, a young British man standing next to Sanders suddenly asked, "Eric, these suitcases are empty, right? If they're so light, why not stuff them with Post-it notes like the ones we just saw at the other factory? That way, the space isn't wasted and the weight's optimized."
"…?" Yang Wendong was speechless. If he hadn't already known that this young man was the son of a senior HSBC executive, he would've been tempted to show him the door.
"Tyron, that wouldn't work," Sanders said helplessly. He clearly had little patience for the spoiled rich second generation. "Different products combined like that incur high costs. Each one would have to be placed manually. Labor costs in Hong Kong might still be manageable, but do you really think we can expect American or European workers to unpack them one by one?"
"That's right," Yang Wendong chimed in. "The cost just isn't worth it. Plus, each product has its own batch and inventory tracking—mixing them up would throw everything into disarray.
More importantly, the process of packing and unpacking makes it far more likely that the products get damaged. That's a risk we simply can't afford."
Tyron fell silent. He hadn't thought that far ahead. The Chinese man in front of him looked younger than him, but clearly knew way more.
Seeing Tyron finally go quiet, Sanders turned to Yang Wendong and asked, "So Mr. Yang, entering the shipping business yourself—is it mainly for handling your own logistics?"
"Exactly," Yang nodded. "That's the primary goal. But if the shipping business develops well, I'll invest more into it."
"Haha!" Sanders laughed. "Looks like Hong Kong might have another shipping magnate in the making."
Yang Wendong asked, "Mr. Sanders, if I wanted to purchase ships and needed a loan, would HSBC consider it?"
Sanders paused briefly before answering, "If you're buying new ships, and you can find another bank to co-finance the loan, then HSBC would be willing to participate. But we won't do it for second-hand ships."
"Alright, then I'll definitely consider HSBC when the time comes to buy new vessels," Yang said with a grin. Then he added, "Has HSBC ever done this kind of deal before?"
"Not yet," Sanders replied. "But I'm currently preparing to enter into such an arrangement with a shipowner in Hong Kong."
"Who might that be?" Yang Wendong already had a pretty good guess, but he asked anyway.
"His name is Pao Yue-kong. You've probably heard of him?" Sanders said.
"I have," Yang nodded. So, it seemed Pao's rise was just beginning around this time.
Sanders added, "I told him he'd need to secure a letter of credit from a Japanese bank. That's no easy feat."
"Haha, maybe he'll pull it off," Yang chuckled, then said, "Mr. Sanders, why don't we talk about our collaboration now?"
"Of course," Sanders nodded.
"Let's head to the meeting room," Yang suggested.
The group moved to a nearby conference room.
After a few more polite exchanges, Sanders got down to business. "Mr. Yang, HSBC is willing to participate in this loan. But we'll need to provide half of the total amount."
"No problem," Yang agreed readily. After all, the borrower always had the right to decide how much they wanted to borrow from which bank.
In fact, if HSBC had wanted to take on the entire loan, Yang wouldn't have objected. But it made sense that they wanted to spread the risk.
In the world of commercial investment and lending, major banks and financial groups usually preferred co-lending structures to distribute risk and pool resources.
Sanders continued, "Also, we'd like the repayment period to be within three years. Based on the data your team provided, and Changxing Industrial's raw material needs, that should be sufficient time."
"No problem on my end," Yang said, after a quick mental calculation. "I'll speak with our partners in Taiwan about this as well. But I'm pretty sure they'll be on board."
"Excellent," Sanders replied. "Then we'll send a team to Taiwan to discuss the interest rates."
"No issues there," Yang said with a smile. "I've got people on the ground over there too. Hopefully, this deal comes together soon."
Sanders grinned. "Likewise. And I hope this is just the beginning of a long and fruitful partnership between us."
"Absolutely," Yang nodded. "I plan to invest in real estate in the future. When that happens, HSBC will be my first choice."
"Then here's to our collaboration," Sanders said, standing up to shake hands.
Yang stood and shook hands as well.
For the next twenty years, Hong Kong would remain HSBC's stronghold. Since their interests didn't conflict, Yang had no reason not to collaborate with them.
…
Back in Taiwan, the joint banking team from Hong Kong soon arrived—though the real lead was HSBC. Hang Seng Bank and Liu Chong Hing Bank were more like supporting actors.
Yang Wendong didn't go to Taiwan himself, but he monitored the situation closely. After about two weeks of negotiations, Formosa Plastics and the HSBC-led banking syndicate reached an agreement for a $500,000 loan.
"Old Wei, even though we're not managing Formosa Plastics directly, we still need to keep a close eye on them," Yang said after reviewing all the documentation.
"We need to assign our own financial personnel there, of course. But more importantly, we need to find someone already inside Formosa to buy out. I'm not asking them to do anything illegal, but I do want to know about any changes, movements, or developments within the company.
Also, we need to be cautious about Wang Yongqing. He's extremely capable—which makes him a fantastic partner for running a factory—but we still need to watch out. He may have his own agenda."
Just because a company had performed well in his past life didn't mean things would go smoothly now.
A good example was Yahoo and Masayoshi Son's early investment in Alibaba. While they profited handsomely in the end, Jack Ma still managed to pull a fast one on them.
If this had been a regular investment, then a founder having their own ideas wouldn't be a big deal—as long as they weren't outrageous. But Formosa Plastics was a cornerstone of Yang's future industrial plans, so extra caution was necessary.
"Got it," Wei Zetao agreed. "I'll have our people in Taiwan look for the right opportunity."
Time flew by, and soon it was October.
That day, Yang Wendong arrived at the Ganghua Building.
Zheng Zhijie came over to report and handed him several documents. "Mr. Yang, here are the blueprints for our new office building and residential project."
"Good," Yang took the files and glanced at the cover page. "What are we calling this new tower?"
"It doesn't have a name yet. Do you have anything in mind?" Zheng Zhijie asked.
Yang thought for a moment. "Let's call it the Jili Building."
He couldn't come up with anything better. He had initially considered naming it after his company—Changxing—but decided against it. That brand was the core identity of his group. He'd rather save the name for something more significant than a ten-story office building.
If he ever had the opportunity to buy a major skyscraper in Central—or build one from scratch—then it would be worthy of the "Changxing" name.
As for "Jili" (meaning "auspicious"), it wasn't bad for a building name. In his past life, he'd driven a Geely car, and the name suited a commercial property well enough.
"Alright," Zheng Zhijie nodded and asked, "What about the blueprints?"
"This kind of regular building isn't particularly special. They all look about the same—boxy and efficient," Yang said after a quick skim. "Let's go with the layout that maximizes utility."
Before the age of mega skyscrapers, high-rise buildings weren't especially complex—unless they were located in Central's premium commercial zones, in which case more factors had to be considered.
Zheng Zhijie chuckled. "Exactly. Standard buildings are basically all the same. Now, let me show you the residential layout."
"Mm," Yang nodded and turned to the second page, which featured the plans for the apartment complex they were building on the land near Admiralty.
Zheng Zhijie continued his explanation: "On this plot of land, we plan to build 412 residential units, focusing on three main layouts—1008 square feet, 826 square feet, and 633 square feet.
The 1008-square-foot units will be four-bedroom apartments, while the others will be three-bedroom. The interior layouts have all been optimized for space efficiency. These pages here are the floor plans."
"Looks pretty good," Yang Wendong said after studying the documents seriously. "When are we planning to start construction?"
A 1000-square-foot apartment was just over 90 square meters, and 600 square feet was barely 50 square meters—small by mainland standards in his previous life. Back there, calling something this size a three-bedroom or four-bedroom would have been laughable.
But this was Hong Kong—it was perfectly normal.
Besides, this was a different era. Even after the mainland's reform and opening-up, the per capita residential space had been quite limited.
"Early next month," Zheng Zhijie replied. "The land still needs a bit of leveling and preparation before we can lay the foundation. The base level should be done by December, and the full construction completed by next August."
"When can we start selling pre-sale units?" Yang asked.
In real estate, timing the pre-sales was everything. The earlier you start selling units off-plan, the sooner you can recover funds to reinvest into the next project—and keep the money flowing.
"We can start any time," Zheng answered. "But if the site hasn't started construction, most buyers won't believe in the project. If we launch too early and the response is poor, it could backfire once the media gets wind of it.
So we're planning to wait until late November or December, when construction is visibly underway, before releasing the pre-sales."
"Sounds good," Yang nodded. "Then let's get a model unit built near the site before November. Make sure the interior design is well done.
When we start marketing the pre-sales, we can bring clients to tour the sample unit."
He had visited some real estate projects before—one time, he tagged along with Lin Haoyu to check out properties—and had seen firsthand how companies promoted their developments in this era.
They'd tack a few blueprints onto a blackboard and pitch the buyers into reserving pre-sale units. It was primitive, but without better alternatives, most buyers simply accepted it as normal.
If people didn't know what to expect, they wouldn't complain—and they'd still buy.
Zheng chuckled. "If we sell that way, our units might get snatched up like crazy."
"That's fine. If demand's that hot, we just raise the price," Yang said casually.
These weren't essential goods. He had no qualms about pricing based on market demand.
Housing may be one of the basic necessities—along with food, clothing, and transportation—but in this case, we're talking about upscale apartments, offices, and commercial properties in Hong Kong, not just basic shelter from the rain.
"Alright," Zheng agreed. "We'll use the sales performance of the first batch as a test. If sales are strong, we'll hike the price for the next phase."
"Okay, sounds good," Yang added. "Pay attention to the quality of the interior finishes. This will be a key selling point of our brand going forward. We absolutely cannot allow any cutting of corners on the units our customers pre-order."
"Understood, Mr. Yang," Zheng replied.
Yang asked again, "Have we had any luck acquiring a cinema lately?"
Zheng shook his head. "No, cinemas on Hong Kong Island rarely go up for sale. I've checked with just about everyone, but no one is willing to sell.
So now I'm focusing on identifying promising locations. We'll buy land and build new cinemas instead."
"Alright," Yang thought for a moment. "We already own around ten cinemas now, right?"
"Yes, two on Hong Kong Island, and eight over in Kowloon. One of them is actually near the Changxing Industrial factory," Zheng replied.
"How are they being managed at the moment?" Yang asked.
"We haven't set up a formal theater chain yet," Zheng explained. "Right now, each cinema is operated independently. I've recruited a few experienced industry people to manage them. They're responsible for liaising with film distributors and acquiring content."
Yang nodded. "Alright, keep them operating under the real estate company for now. Once we scale up further, I'll spin them off into a dedicated cinema chain."
He wasn't planning to dive into the movie business just yet. First, he wanted to stabilize the core industries under his control.
"Understood," Zheng said. "Also, Mr. Yang, you previously asked me to look into the two major bus companies in Hong Kong. I've completed the investigation."
"Oh?" Yang's interest was piqued.
The bus industry wasn't exactly lucrative, but it held sway over the city's "mobility," making it reasonably influential.
More importantly, bus companies were a huge asset to real estate ventures—not just because they often held valuable plots of land due to early expansion, but because controlling bus routes meant you could directly enhance the accessibility of your developments. That alone could skyrocket property values.
"There are two main bus companies. Both were established in the 1930s. Kowloon Motor Bus (KMB) was founded by Tang Shao-kin, Raymond Ray, and Ray Leung," Zheng began his detailed report. "China Motor Bus (CMB) was founded by Yan Chengkun and Wong Wong-choi."
Over the next ten-plus minutes, Yang got a rough understanding of both companies. Then he asked, "So both companies are about to go public?"
"Yes," Zheng confirmed. "The Hong Kong government is currently pushing a policy requiring public utilities to list on the stock market. KMB is already scheduled for IPO next year, and while CMB hasn't received final approval yet, it's expected soon.
Otherwise, it might lose its exclusive operating rights."
"Hmm… do you think we could acquire one of them—enough to gain controlling interest?" Yang asked.
In the original timeline, both CMB and KMB had been targeted for acquisition by major financial groups in the 1980s.
There were many reasons for that, all of which spoke to their value. But Yang, having traveled back decades before that point, couldn't possibly wait until the '80s to strike.
What kind of time traveler would he be if he couldn't change history?
If something valuable was within reach, of course he would find a way to take it.
Zheng, knowing full well what his boss was thinking, didn't seem surprised. Instead, he replied, "Based on what I've found so far, KMB will be difficult. But CMB might be possible."
"Oh? Why's that?" Yang asked.
Zheng explained, "KMB was founded by five individuals, but they have strong personal and business ties. Even after the IPO, unless we offer a price they can't refuse, we're unlikely to buy enough shares for control.
CMB, on the other hand, only had two founders. One of them, Wong Wong-choi, has already passed away. His shares have gone to his descendants, while company management has stayed with the Yan family.
There's been a growing rift between the two families. The Wong family wants control of the company, which the Yan family currently holds.
Some say that internal conflict is the reason CMB's IPO keeps getting delayed."
"Hm, that sounds like a real opportunity. Castles are always easiest to conquer from within," Yang said with a nod. "Let's make CMB our target. Their headquarters and many of their properties are on Hong Kong Island, which makes it more meaningful for us."
In terms of bus operations alone, KMB had greater long-term potential—Kowloon was larger, with a growing population, and exclusive rights there would always be more profitable. The same would be true of the electricity market—China Light and Power would eventually surpass Hongkong Electric.
But when it came to property, nothing topped Hong Kong Island.
CMB and Hongkong Electric had been operating on the Island for decades and had amassed a treasure trove of valuable land. That made them very attractive to real estate developers.
Hong Kong law didn't allow a single entity to control both of the two franchise companies in the same industry. So if it came down to a choice, Yang would choose CMB.
Zheng grinned. "Exactly. Since Changxing Properties is aiming for the high-end residential market, we'll be focusing on the Island for the long term.
Having CMB would be a huge boost to our real estate operations."
"Alright," Yang said. "We don't know exactly when CMB will go public, so in the meantime, try to get in touch with Wong Wong-choi's heirs."
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