At HSBC Bank, Lin Baicheng arrived for the first time—this time alone.
Bao Yugang, who had already come ahead of him, served as the intermediary and made introductions.
"Manager Shen."
"Mr. Lin."
The two men shook hands. Although Lin's personal wealth already surpassed Shen Zhou's, the influence and resources the HSBC director could command were far beyond Lin's current reach.
Shen Zhou smiled and said, "I wanted to meet you back at the charity gala hosted by the Hong Kong government, Mr. Lin, but unfortunately, there was no one to make the introduction."
"I've long heard of Manager Shen's reputation," Lin replied politely. "It's my honor to finally make your acquaintance."
Formalities exchanged, Shen Zhou said, "Mr. Lin, your businesses are flourishing at an impressive pace. I hope you'll consider supporting HSBC more in the future. As Hong Kong's largest bank, if you ever need financing or loans, HSBC can certainly assist you."
"Of course," Lin said with a polite smile. "I'm sure there will be many opportunities to work with HSBC in the future."
Whether he truly intended to or not didn't matter—this was the kind of thing one said in a meeting like this.
Bao Yugang joined in with a grin. "Once Mr. Lin's enterprises grow larger, he'll inevitably need financial backing. If HSBC provides the loans, both sides benefit. It's a win-win relationship."
"Indeed," Lin and Shen Zhou both agreed. What Bao said was true—cooperation between banks and companies was mutually profitable.
After chatting pleasantly for a while, they turned to the real purpose of the meeting.
"Mr. Lin," Shen Zhou began, "if you were to acquire control of Hutchison Whampoa, how do you intend to develop the company?"
The question was natural. HSBC was not only a major shareholder but also a major creditor of Hutchison Whampoa, with loans amounting to several hundred million Hong Kong dollars. The bank had no desire to see the company fail—such an outcome would benefit no one.
Even if HSBC decided to sell its shares, it still wanted to find a suitable buyer—someone capable of revitalizing Hutchison Whampoa and ensuring the bank's loans remained secure. Ideally, this new owner would also maintain a long-term working relationship with HSBC.
Lin replied steadily, "First, I'd stabilize the management team. A change in ownership can easily lead to confusion, so maintaining stability is crucial. As for the company's direction, I'm quite optimistic about Hong Kong's real estate sector, so I plan to guide Hutchison Whampoa toward property development."
"Additionally, the company has too many subsidiaries. I intend to gradually sell off the unprofitable ones and buy back or privatize the high-quality assets. Streamlining and focusing our efforts is the only way to make Hutchison Whampoa truly strong."
Lin's tone was confident and composed.
"I see Mr. Lin already has a clear plan," Shen Zhou said approvingly. He now understood Lin's strategic thinking. Whether the plan would succeed or not, Shen could tell Lin was no reckless youth—he understood the importance of keeping a management team intact. That alone marked him as a competent businessman.
"Mr. Lin," Shen continued, "I do have a proposal regarding HSBC's sale of the Hutchison Whampoa shares. I wonder if you might be open to it?"
"Please, go ahead," Lin said courteously.
Shen nodded. "Hutchison Whampoa's current market value is a little over HK$2.8 billion. HSBC is willing to sell its 22.5% stake to you based on a total valuation of HK$1.5 billion. Moreover, if funding is an issue, you only need to pay HK$100 million upfront—the remaining amount can be settled within six months."
"Such a generous offer?!"
Lin's heart raced. He could barely contain his excitement. This was the same kind of favorable arrangement Li Ka-shing had once received! But he quickly calmed himself. He knew full well that he and Shen Zhou had no personal connection—there had to be strings attached.
"Manager Shen," he said carefully, "I assume there are some conditions attached?"
"Indeed," Shen admitted openly. He had no reason to deny it. After all, he wasn't offering charity, and even as HSBC's director, he couldn't make deals that harmed the bank's interests. The board and shareholders would never allow that.
"The condition is simple," Shen continued. "If Mr. Lin agrees to transfer all company accounts and financial transactions to HSBC—and sign a confidential agreement ensuring that all your future enterprises do the same—then all financing and loan business will be handled primarily through HSBC. In return, we will sell you the Hutchison Whampoa shares at the favorable rate, and your future loan interest rates will be lower than the industry average. It's a mutually beneficial arrangement."
Lin couldn't help thinking privately, HSBC's appetite really is enormous.
Outwardly calm, he asked, "Does this agreement also cover companies I establish overseas? If so, I'm afraid that won't be possible."
"No," Shen replied. "Only companies operating in Hong Kong. The registration location doesn't matter—registration can be changed—but as long as the business operates here, it will be included."
"I see," Lin said. "And what about the duration? Surely this agreement isn't meant to last forever."
"Fifty years," Shen proposed after a pause, watching Lin's reaction closely. His bottom line was twenty years—if Lin wasn't willing to commit at least that long, there would be no point in HSBC's support.
Lin didn't respond directly. Instead, he said mildly, "Manager Shen, I'll need some time to think about this. I can't give you an answer right now."
Of course, Lin had already decided. There was no way he would accept such terms. But rejecting Shen outright would have been impolite—and possibly jeopardized his chances of purchasing the shares. So instead, he chose to defer, saying he would "consider it." That way, Shen wouldn't lose face.
"That's understandable," Shen said with a polite nod. "It's not something one decides on the spot. I'll await your reply."
In truth, whether Lin accepted or not made little difference to HSBC. There were plenty of capable businessmen in Hong Kong eager to partner with the bank.
In Shen Zhou's mind, he had extended an opportunity. If Lin Baicheng chose not to seize it, the loss was his own—HSBC had no shortage of other candidates.