Chapter 227: The Rise of Carrefour Supermarket
Although Yang Wendong was inclined to cooperate with Hang Seng Bank, he certainly wouldn't settle on a single option from the start—doing so would be tantamount to offering himself up for slaughter.
Over the next few days, Yang Wendong also met with several other Chinese-owned banks to discuss the possibility of cooperation.
A week later, Yang Wendong invited Li Fushu from Bank of East Asia for a meeting at a high-end teahouse.
After a brief exchange of pleasantries, Li Fushu went straight to the point: "Mr. Yang, if we can successfully partner this time, Bank of East Asia is willing to fully support your company in acquiring the land at 2 Queen's Road Central and building a modern five-star hotel on it."
"Mr. Li, that would require a loan in the range of 30 to 40 million HKD," Yang Wendong responded with a bit of surprise. "Can Bank of East Asia really take on that amount?"
The Bank of East Asia, established in 1919, had a much longer history than Hang Seng Bank but was now smaller in scale. Li Fushu, the second-generation heir of the Li family, was a key figure in the bank. From what Yang Wendong knew, the total deposits of the bank were between 300 to 400 million HKD—issuing a loan equivalent to 10% of that amount wouldn't be easy.
Li Fushu smiled and said, "You can rest assured. Since I've given my word, I will make it happen. As long as we sign the agreement, I will attract deposits from the public by offering slightly higher interest rates to raise the capital. Besides, with land auctions of this magnitude, the Hong Kong government doesn't expect buyers to pay the full amount upfront. In fact, payments can be made in installments over a year or two—you should know that as well."
"True," Yang Wendong nodded. "What about the interest rate?"
Li Fushu replied, "Just the standard commercial loan rate. Initially, I'd propose 6.5%, but we can still negotiate further."
"That rate doesn't leave you much room for profit," Yang Wendong noted with some doubt.
Currently, real estate loan interest rates in Hong Kong, with sufficient collateral, typically ranged between 6% and 8%, with commercial loans even higher. If Bank of East Asia had to raise capital at high deposit rates and lend it at 6.5%, its profit margin would be minimal.
"As long as everything goes smoothly, we'll still earn something," Li Fushu explained. "This time, we're not aiming to make big money. It's more about showing our sincerity for our first collaboration. Personally, I'm very optimistic about you, Mr. Yang. Your ventures span across various industries and are all doing well. I don't think the hotel business would be any different."
"Haha, well then, I'll give it serious thought," Yang Wendong nodded.
He understood the subtext—Bank of East Asia wanted to win him over for future partnerships. For banks, a stable and low-risk client was a prized asset. Clearly, the bank was looking to form a long-term relationship with him.
"Then let me wish Mr. Yang success at the year-end land auction," said Li Fushu with a smile.
"Thank you." Yang Wendong smiled. "I'll have someone from my team follow up with your bank for the detailed discussions."
Li Fushu smiled and said, "Of course. We'll be ready."
Back at home, Yang Wendong played with his son while briefly telling Su Yiyi about his recent talks with several banks.
"That Bank of East Asia really sounds sincere," Su Yiyi remarked.
"Yeah, I suspect they're getting a bit anxious now that Hang Seng has overtaken them," Yang Wendong said with a chuckle. "I had someone look into it. Before the 1950s, East Asia was the leading Chinese bank. But Hang Seng caught onto the industrial boom and started lending massively to Hong Kong factories. The profits from commercial loans were high, and they used less than ten years to surpass everyone else."
"So now East Asia is trying to win your favor," Su Yiyi said, seeing the picture clearly.
"Exactly." Yang Wendong nodded. "I'll have Zheng Zhijie talk with all of them. Whichever gives us the best terms, we'll go with them—or they can form a lending consortium. We'll do whatever benefits us most."
"Too bad your new hotel won't be ready in time for the baby's one-year birthday celebration," Su Yiyi said.
Yang Wendong laughed. "No worries, we'll just have to have more kids. There'll be plenty of chances."
"Great!" Su Yiyi grinned. "But next time, I want a daughter."
Yang Wendong smiled. "Well then, I'll work extra hard tonight."
The next day, Yang Wendong arrived at the newly built Fortune Tower (Jili Dasha).
Zheng Zhijie came to report: "Mr. Yang, the Four Seasons Hotel brand registration is complete. We've also had 'Four Seasons Hotel' registered overseas in several countries."
"Good." Yang Wendong nodded. "I've already spoken with top executives from Hang Seng, Bank of East Asia, China State Bank, and HSBC Standard Chartered. They're all open to working with us. But each has different conditions. You lead the negotiations and see who offers the best terms. We'll go with the most favorable one."
For loans of over ten million HKD, even with collateral, it was a significant commitment for any bank. To save time, Yang Wendong had met the top people first. The detailed discussions would be handled by Zheng Zhijie and his team.
"Yes, understood," Zheng Zhijie replied. "I'll begin scheduling meetings with them this afternoon. But among all of them, do you have a preferred bank?"
"Bank of East Asia and Hang Seng," Yang Wendong answered after a moment of thought. "Focus on those two first, unless another offers much better terms."
"Understood." Zheng Zhijie nodded. "Also, I've already acquired more than a dozen street-level shops in Admiralty, North Point, Sai Wan, and Causeway Bay. They should be enough for Ms. Su's clothing store plan."
"That fast?" Yang Wendong asked. "It's only been half a month."
"They're just standard shopfronts. There are plenty available. As long as we have money, we can get them," said Zheng Zhijie.
"Alright," Yang Wendong nodded. "Leave the details with me. I'll let Su Yiyi handle the selection. Keep buying more. If she doesn't want them, we'll add them to the property management division's portfolio and rent them out."
Recently, Changxing Real Estate had created a new property management division. Unlike development, this branch was purely focused on acquiring and managing rental properties. The several office buildings bought from Liao Chuangxing Bank, including Changxing Tower (the new headquarters), and numerous industrial lots in Kwun Tong, were all under its name.
"Got it," Zheng Zhijie replied.
Yang Wendong added, "Let's keep doing both—real estate development for luxury residential projects to flip quickly through pre-sales, and property management for acquiring long-term rental assets. Pull in funding from as many banks as possible and leverage financial tools aggressively."
Even with Changxing Real Estate's limited profits for now, Yang Wendong could provide extra funding, and by using the banks' leverage, they could greatly expand their reach.
"Understood, I'll finalize our investment plan for the second half of the year and submit it to you for review," said Zheng Zhijie.
Having worked under the boss for two years, Zheng Zhijie was already very familiar with Yang Wendong's preferred real estate investment strategy. To put it simply: "develop residential, hold commercial."
Yang Wendong asked, "The villas we co-developed with Zheng Yutong in Happy Valley—are they completed?"
Zheng Zhijie replied, "Yes. We've completed 40 villas, each between 4,000 to 6,000 square feet. We haven't started selling them together with Mr. Zheng yet. Do you have any plans?"
"Let's hold onto them for now," Yang Wendong considered. "Not for economic reasons—I have other uses in mind. Arrange a renovation company to get all the villas furnished first."
Back when he partnered with Zheng Yutong on this project, it wasn't for profit; it was more about collaboration and learning, as Changxing Real Estate was still in its infancy. But the return turned out decent anyway. In this era, high-rise condos didn't interest him much for long-term holding—unless it was a rare, premium location, like Taikoo Shing in the early '70s.
Villas on Hong Kong Island, on the other hand, were always a scarce resource. Even entire villa complexes only dropped in value slightly during economic crises.
"Understood," Zheng Zhijie agreed.
Yang Wendong continued, "You're in charge of other matters, just stay on top of them. Also, Liu Huayu from our U.S. team will arrive in Hong Kong in a week. Besides working at Changxing Plaza, he'll be scouting other locations to open supermarkets. Do everything you can to support him."
Compared to real estate, Yang Wendong was more invested in developing his supermarket business. Like Walmart in the U.S., the supermarket industry was still in its early stages globally. Difficult as it might be at first, it meant immense opportunity.
Real estate could make a lot of money in Hong Kong, but it was hard to scale internationally. Even major Japanese developers failed to make waves in Hong Kong after multiple attempts.
Supermarkets were different. They at least had a shot at international expansion. Though difficult, if you could control costs and gain transport advantages, working with local capital in Southeast Asia might allow you to break into regional markets.
"No problem. I'll fully support our brother company," Zheng Zhijie said with a smile.
"Good," Yang Wendong said. "Also, tell Huang Yaonan we'll need his support down the line too. It won't be for free—he'll be paid fairly."
The benefit of controlling China Motor Bus (CMB) was that any major residential or commercial projects—like future supermarkets or shopping malls—could have a bus stop added.
Of course, he wouldn't abuse the privilege. Most of the places he invested in had some commercial potential anyway. For outsiders, the bus company would ignore them, but for him, it was just a phone call away.
"Understood. I'll notify him," Zheng Zhijie responded.
Soon, it was September 6th.
At the top floor conference room of the Port China Building:
Yang Wendong smiled and introduced, "Everyone, this is Liu Huayu, the future head of Carrefour Supermarket. Mr. Liu, these are the key executives of our Changxing Group, including…"
Just yesterday, Liu Huayu had arrived in Hong Kong with several former Walmart colleagues. After a night of rest, they were brought to Port China Building. Yang Wendong had gathered the heads of real estate and media operations since their departments would be tightly linked to the supermarket launch.
Also present was his old partner Zhao Chengguang, a seasoned domestic trader in Hong Kong. He had supplied goods to many local grocery stores before, and now was a perfect fit for Carrefour's procurement needs.
"Mr. Yang, just call me Old Liu," Liu Huayu said after nodding to everyone. "I'll be counting on all of you to support Carrefour going forward. I'm not too familiar with Hong Kong."
"It's our pleasure," the others responded in unison.
Everyone now understood how seriously the boss was taking Carrefour. The whole group was being mobilized to support this new business.
If properties were needed, Changxing Real Estate had to procure them. For advertising, the two media arms had to deliver. As for capital—there was no question.
After waving for Liu Huayu to take his seat, Yang Wendong said, "Old Liu will lead today's meeting. The Changxing Mall will open in a little over a month. I want Carrefour to open alongside it. If not fully ready, at least the essential daily goods must be stocked."
Changxing Tower, which would serve as the group's headquarters, would be completed around Lunar New Year next year. However, the lower-level shopping mall would open much sooner—at the end of October.
"Yes, Mr. Yang." Liu Huayu nodded and took out a notebook. "I've got a lot of questions that I need your help with. First…"
For over two hours, Liu Huayu went over issue after issue. Everyone listened intently, including Yang Wendong himself. Though he had some understanding of the future of retail, supermarkets in the age of computers and smartphones were a completely different beast from what they were now.
At the end of the meeting, a few foundational decisions were set. Advertising would be handled by Qin Zhiye, with Zhang Hui's radio station providing support. Since the Carrefour team didn't have the manpower yet, product procurement would be temporarily handled by Zhao Chengguang, who had extensive experience.
Renovation work was naturally handled by Zheng Zhijie, though most of it was already completed.
"Alright, everyone," Yang Wendong said. "This is our first supermarket. I don't expect immediate profits, but we need to build brand awareness. I want the people of Hong Kong to understand what a 'supermarket' is.
That way, when we open more stores in the future, we'll have an easier time. This first store will be the beginning of our Carrefour journey."
To most Hong Kong residents today, shopping still meant going to a small grocery store. You didn't pick your items—just told the owner what you wanted. After a while, the owner might even get annoyed.
But supermarkets would change everything—price tags, multiple options of the same product grouped together. The shopping experience would be revolutionary compared to traditional grocery stores or department stores.
"Don't worry, Mr. Yang," Liu Huayu said firmly. "We'll make sure this first supermarket is the best it can be."
For them, coming to Hong Kong was already a huge gamble. If they succeeded, they'd gain both wealth and fame, so they took this very seriously.
"Great. Then everyone, let's get ready for the grand opening," Yang Wendong concluded.
Get 30% off on my Patreon and enjoy early access to new chapters.
You can also purchase the next 100 chapters of the novel directly from my Patreon page.
Hurry up! The promotion ends on February 2, 2026.
Read 40 Chapters In Advance: patreon.com/johanssen10