Chapter 375: Expansion Plans for the Shipping Industry
The development of the cultural industry required time and patience—it wasn't like manufacturing, where a single innovative idea could spark explosive growth. It was a long game, one that relied on steady, methodical progress.
Thanks to the long-term nature of copyright ownership, companies focused on cultural industries often saw low returns in the early stages. But once the number of IPs accumulated, distribution channels matured, and diverse monetization strategies were in place, profits could snowball rapidly.
Yang Wendong's strategy was simple: start by dominating Chinese-language regions or areas with significant Chinese influence using stories from ancient Chinese mythology. While doing so, train talent, build expertise, and then expand to the global market.
December 28th:
Light rain fell across Hong Kong. In the morning, Yang Wendong arrived at his office in Changxing Tower. As he looked at the gray sky beyond the window, he felt a rare sense of calm. The cooler temperatures and steady rain had significantly eased the prolonged drought that had plagued the region.
Knock knock knock—
"Come in," Yang Wendong said, glancing up. It was Zheng Yuhua.
"Mr. Yang," Zheng Yuhua said politely as he entered. "We've finalized the tanker deal with Taiwan. Their base price is 6.1 million USD for a 52,000-ton oil tanker. But if we order two, they're willing to drop it to 5.9 million USD per ship."
"What about three?" Yang Wendong asked with a smile.
"They can't do three," Zheng Yuhua replied. "They only have two docks capable of building ships at that tonnage. If we want a third, we'll have to wait at least a year until these two are completed."
"Alright then, let's go with two," Yang Wendong said after a moment's thought. "And what about the Taiwanese banks? How much support are they offering?"
"Taiwanese banks are willing to finance up to 70% of the purchase," Zheng Yuhua said. "The shipyards are also offering multi-phase payment options, so our financial burden will be minimal."
"Good." Yang Wendong nodded. "Push for better after-sales support while you're at it. Even though we have our own shipyard, it's always good to take advantage of their facilities when we can."
"Understood. I'll finalize the letter of intent with Keelung Shipyard and send it to you and the legal department for review," Zheng Yuhua said.
Deals of this size couldn't be finalized by subsidiaries alone. Headquarters had the final say, and internal auditing teams were already involved in the negotiations to ensure due diligence.
"Alright." Yang Wendong nodded again. "What about Japan?"
"I've spoken with Mitsui, Mitsubishi, and Sumitomo," Zheng Yuhua replied. "They're all happy to continue supplying us with ships. The real issue is with the banks.
Because we haven't yet received delivery on our last round of orders, and our debt load is already quite high, Japanese banks are being cautious. Even HSBC is hesitant. Sanders is reluctant to keep financing our expansion, citing high risk."
"That's pretty much what I expected," Yang Wendong said with a nod. "Business is never easy—especially when banks are involved. They have to consider risk."
He added, "Talk to the Japanese banks again. If they're worried, offer slightly higher interest rates—it's a small price to pay. As for HSBC, I'll have a chat with Sanders myself."
Being a time traveler didn't mean banks would bend to his will. He still had to play by this world's rules—convince lenders with solid business cases and personal credibility. That was the only way to secure leverage and maximize returns.
"Got it," Zheng Yuhua replied.
The next day, Yang Wendong met with Sanders in the presidential suite of the Four Seasons Hotel.
"Please, have a seat," Yang Wendong said with a smile.
"Thank you," Sanders replied, taking the seat. "Mr. Yang, I hear the Four Seasons is doing remarkably well. I was told the average occupancy rate is up to 85%?"
"That's correct. We've benefited greatly from Hong Kong's economic growth over the past few years," Yang Wendong said with a nod.
Since its grand opening, Four Seasons had been managed by Tang Xingzhi, who had leveraged his network to establish partnerships with travel agencies across Europe and the U.S. That brought in waves of Western business travelers. At the same time, the growing influence of Changxing Group meant many local clients—or their overseas partners—chose the hotel for events or lodging.
Add to that the hotel's luxurious design and premium positioning, and it was easy to see why it became the go-to spot for affluent clients, both local and foreign.
"Opportunities always favor the capable," Sanders smiled. "And your success across multiple sectors is a testament to that."
"You flatter me." Yang Wendong smiled, then moved straight to the point. "Mr. Sanders, I assume you know why I asked to meet today. It's about Changxing Shipping's next round of ship purchases in Japan."
"Indeed, and to be honest, Mr. Yang, I'm a bit puzzled," Sanders said. "You were quite conservative about new ships before. Why the sudden shift?"
A few years earlier, when HSBC was just starting to explore maritime financial services, Sanders had considered Yang Wendong one of the most promising clients. His income from industry was stable, and even if shipping lost money, HSBC could cover its losses through other guarantees.
But back then, Yang Wendong insisted on buying second-hand ships. HSBC participated, but hesitantly.
Then came the previous wave of new ship purchases, which was already seen as aggressive. And now, not even a year later, he was pushing for another round of expansion.
Yang Wendong smiled. "I have full confidence in global shipping. Don't you feel the same, Mr. Sanders?"
"I do," Sanders admitted. "But confidence must be tempered with risk control. A bit of boldness is fine—but overconfidence can be deadly. One misstep could ruin everything."
"You're absolutely right," Yang Wendong agreed. "But no business is without risk. If something is truly low-risk, then it won't be high-return either.
Look at Southeast Asia, Japan, South America—all these regions are developing rapidly. The U.S. is pushing globalization. Labor costs in Europe and America are rising. Low-end industries are bound to shift to cheaper regions.
This means that shipping will become more essential than ever over the next few decades. Global demand for oil, energy, and raw materials is only going up. Our current fleet isn't even close to meeting that demand."
"You make a good point," Sanders nodded. "Profit always comes with risk. So what's your plan? How many tons are you looking to add?"
"I'm aiming for 500,000 tons in this round," Yang Wendong said. "Specifically, three 100,000-ton oil tankers and two or three 50,000-ton bulk carriers."
Container shipping was on the rise, but hadn't yet fully taken over. It was a tricky transition period. For now, he would continue buying second-hand container ships.
His focus would remain on oil tankers and large bulk carriers, especially since these would be in high demand during the coming Middle East energy crisis. When it came to necessities like grain and raw materials, shipping volume couldn't be compromised.
"I have to say, your pace is faster than any shipowner in Hong Kong," Sanders said with a laugh. "If you keep this up, you'll surpass Swire and Wheelock in less than five years and become Hong Kong's largest shipowner."
Yang Wendong smiled faintly. "Mr. Sanders, my goal isn't just to be the biggest in Hong Kong—it's to be a global giant."
"A global shipping titan?" Sanders was visibly surprised. He looked at Yang Wendong carefully—it didn't seem like he was joking. "That's a bold ambition. But is it really possible? Global trade is centered in the West, and Western nations have strict regulations to protect their own shipping industries."
"I know. And even if they don't have those rules now, they'll implement them the moment they feel threatened," Yang Wendong said. As a time traveler, he knew this all too well—when Western countries had the upper hand, they championed free trade. When they started losing, they hid behind 'national security.'
Sanders chuckled. "So how do you plan to break through that wall?"
"It's simple," Yang Wendong said. "I believe Asia will become the core of future global shipping. With its population base, once its economies grow for another decade or two, its trade volume will surpass that of the West."
In terms of value, Western nations still consumed more. But when measured by weight—by sheer volume—Asia would dominate.
Asia might be poorer, but once economic growth took hold, demand for basic goods would skyrocket. That was the benefit of having so many people.
The rise of the Four Asian Tigers and Four Asian Dragons was due precisely to Asia becoming the West's factory. Western companies wanted to lower risk and shed assets, so they outsourced everything. Naturally, Asian firms handled shipping too—perfect conditions for local shipping companies to thrive.
In his past life, Hong Kong's top shipping tycoons also rose because of Asia. Once they hit critical mass, they gradually entered the Western market. The trick was placing orders with Western shipyards to comply with local regulations—a kind of unspoken rule. Bao Yugang, for example, often bought ships from France just to access the European market.
"Asia, huh?" Sanders nodded. "That does sound plausible. Asia has the people, but not the energy resources."
"Exactly. That's why the oil shipping business is guaranteed profit," Yang Wendong said.
There were oil fields in Asia, but nowhere near enough to meet demand. Most of Southeast Asia was composed of island nations—even if they had oil, it had to be shipped out by sea.
Which meant that everything—oil, consumer goods, food, industrial supplies—had to move by ship. Maritime transport wasn't optional.
"Mr. Yang, you've convinced me," Sanders said after a long pause. "But with funding approaching ten million dollars, I'll still need to verify everything. And my board will need to vote."
"No problem. I'll await your good news," Yang Wendong replied calmly.
Under HSBC's management structure, senior executives—like the taipans—held considerable power. In his past life, it was this authority that allowed William Purves to sell Hutchison Whampoa's shares to Li Ka-shing at a huge discount.
Still, with this much capital involved, Sanders would have to consult others—either for real input, or just to share the responsibility.
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