MC Bookstore Chapter 33 The Leader of the Flock
Chapter 33 The Leader of the Flock
November 3;
The Milk Company Board of Directors published an article in the Sing Tao Daily:
The company announced the appointment of Rothschild & Co. as its financial advisor, urged shareholders to make careful decisions, rejected the takeover offer from Hongkong Land Group, and awaited further notice from the board of directors.
…………
And then? That's it!
Hongkong Land Group is already trying to take over Milk Company, but Milk Company is only telling people to wait calmly and has not come up with any anti-takeover measures.
Panic gripped the crowd, with many believing that Zhou Daheng would lose control of the Dairy Farm Company and that it would eventually be swallowed up by Hongkong Land Group. They were unsure whether to sell or exchange their shares.
As investors hesitated, Chen Guanjiang, surrounded by a retinue, stepped into the Far East Stock Exchange.
As someone who started planning three months ago, and who had even won by borrowing all his money to bet on the dairy company, Chen Guanjiang's presence attracted the attention of most shareholders, who all wanted to see how he would make his decision.
Unexpectedly, Chen Guanjiang merely glanced at the price quote and turned to leave, seemingly extremely dissatisfied with the current price and showing no intention of selling or exchanging shares.
It's important to know that the 2.5% commission that Huoduoli helped with the acquisition wasn't for nothing. They would call immediately to report the situation whenever the stock price fluctuated by more than 3% from the opening to the closing bell.
Chen Guanjiang knew the milk stock price inside and out. The reason he came here was simply to support Zhou Daheng and to warn shareholders not to easily give up their shares.
After all, besides his nearly 1% shareholding, Chen Guanjiang's biggest bargaining chip in negotiations with the Jardine Matheson consortium was his influence.
By placing himself in the spotlight, he influences some shareholders to remain on the sidelines; only when Chen Guanjiang makes a choice that provides them with a reference will they make a further choice.
Fortunately, the milk stock price went up!
On the first day, the stock price soared to HK$215 per share, but I neither sold nor exchanged it.
The stock price rose to HK$220 per share the next day, and the seller still refused to exchange or sell.
Yesterday's rise to HK$226 per share was not enough, and today's rise to HK$237 per share has left them unmoved.
The more dismissive he was, the more the stock price continued to rise, the more confident Chen Guanjiang became, and the more investors watched his next move, unwilling to easily hand over their shares.
Conversely, the Jardine Matheson Group originally thought that Chen Guanjiang was just a "big spender" who had pledged all his stocks to HSBC and could eat whenever he wanted.
After taking a bite, they discovered it was a hedgehog. Considering the public pressure, they decided not to force it to switch shares, since the total amount was only 1%, and they didn't take it to heart.
I never expected this!!
This guy actually evolved into a leader, and even created the "herd effect" in economics.
In 1936, English economist John Maynard Keynes introduced this concept in his book "The General Theory of Employment, Interest and Money" and described in detail the phenomena in financial markets.
If the lead sheep captures the majority of attention, the entire flock will constantly imitate its every move. Wherever the lead sheep goes to graze, the other sheep will follow suit.
Modern media often act as a catalyst for herd mentality; a rumor can become a accepted fact after being reported in a newspaper, and an opinion can become public opinion through television broadcasting.
Of course, this is a good thing for the Jardine Matheson Group. As long as they can get Chen Guanjiang on board as the leader, the flock following him will blindly follow.
however…
Before Jardine Matheson could contact them again, Chen Guanjiang took the initiative to deliver himself to their door, requesting a meeting with a powerful figure in the Keswick family. The undecided foreigner, Val, reported this to Henry Keswick.
This piqued the interest of the young Jardine Matheson Group's tycoon. He had just appeared at the Far East Club to lead the refusal to switch shares, and then he came to Prince's Building to show off his power.
Unlike his previous perfunctory attitude, Chen Guanjiang arrived with a fawning smile, saying, "Freshly baked Taichang Bakery butter shortbread-style egg tarts, Mr. Val, please try them while they're hot..."
The foreigner, Val, took a box of egg tarts dumbfounded, completely unable to understand what he was saying. The traitor Song Qifeng felt an unreal sensation as he held the pineapple bun in his hand.
"Hello Mr. Henry, this is Chen Guanjiang..."
Upon arriving at Henry Keswick's office, Chen Guanjiang placed the egg tarts on the table and then stood aside with utmost respect, secretly observing the head of the Jardine Matheson Group.
There is a widely circulated old saying in Hong Kong:
Hong Kong is controlled by the Hong Kong government, the Hong Kong Jockey Club, and Jardine Matheson. In the last twenty years, HSBC has also emerged, with the Jardine Matheson Group known as the "King of Foreign Firms".
Chinese people seem to like to include everything in the "Big Four";
Thus, Swire Group, Hutchison Whampoa, and Wheelock formed the "Big Four British-owned trading companies," but in fact, the latter two were not even comparable to Jardine Matheson's "wings."
Even though Jardine Matheson has been suppressed by HSBC in the last two decades, it is still one of the most powerful entities in Hong Kong!
But is it really a good thing for such supreme power to be in the hands of someone whose eyes reveal an undisguised aggression?
The smaller the enterprise, the more effort it needs to make. But for a regional economic behemoth like Jardine Matheson, it's better to stay still than to make a move.
Henry Keswick looked at Chen Guanjiang with a mocking expression, without inviting him to sit down, and said in English with a hint of sarcasm, "So you've come to agree to the share swap this time?"
Do you agree…
"Don't use an interpreter, I can hear you clearly!"
“…………”
Since the opening of Hong Kong, English has been the primary language, while Chinese has only been a secondary language, and very few schools offer Chinese language classes.
In the 50s and 60s, Hong Kong experienced an influx of a large number of Chinese immigrants, which caused English, the main language, to become a minority language, and the vast majority of people could not communicate at all because they did not speak Cantonese.
Only now, in an effort to preserve this pearl of the Orient, has England begun to encourage the concept of "bilingual and bicultural" education, though it has not been formally implemented due to MacLehose's short tenure.
Born in Hong Kong in 58, Chan Kwun-kong received his education entirely in English during the 60s. Last time I pretended not to understand to tease him, but he actually took it seriously. I feel really embarrassed.
Although Chen Guanjiang understood English, he still insisted on speaking in Cantonese: "Yes, esteemed Mr. Henry! But I have a few conditions."
"What conditions?" Henry Keswick asked, displeased.
"Since it's a share swap, let's just do it directly."
Looking at the other party's expression, Chen Guanjiang continued, "In addition... after exchanging 9.24 milk shares for 18.48 Hongkong Land shares, I need to use these 18.48 shares to pledge out another 18.48 Hongkong Land shares."
"In other words, I need to hand over 9.24 milk shares to receive 36.96 Hongkong Land shares, and I will not accept any delay in the delivery of paper share certificates for six months!"
"As you know, although it's called a mortgage, I actually intend to sell the shares. So out of the total 36.96 Hongkong Land shares, not a single one will be mortgaged to you."
"You want to play the short-selling plunge game?"
As a graduate of Trinity College, Cambridge, Henry Keswick instantly realized the purpose behind Chen Guanjiang's choice, his cold gaze piercing like a sharp blade.