Chapter 435: The Shockwave of 50 Million in Cash
Fang Xianming tentatively asked, "Mr. Yang, are we planning to acquire Hang Seng Bank?"
"That would be difficult," Yang Wendong shook his head. "Personally, I believe the Hong Kong government won't allow Hang Seng to collapse. The consequences would be too serious. So I'm going to invest first and see what shares I can get."
There was another important factor to consider: unity among Chinese capitalists. In this era, while they weren't all friends, there were few who could be considered mortal enemies. Their common rival was British capital, and most still valued their reputations highly.
If Yang Wendong were to step in and fully rescue Hang Seng, taking over control in the process, it would likely provoke hostility from the broader Chinese business community. Many would view it as him taking advantage of a crisis for personal gain—especially since He Shanheng had a well-established and respected reputation in Hong Kong.
Therefore, directly saving the bank would be costly and bring no control benefits. It was a poor tradeoff—risk with no reward. A contradictory situation.
However, a simple equity investment was a different story. Even He Shanheng might not see it as betrayal or exploitation. After all, with risks this high, no one would help without expecting something in return.
"Understood," Fang Xianming replied.
Yang Wendong added, "Also, keep it low-key. Don't let the He family find out what we're doing. I plan to conduct a direct capital increase on the side. Let's move on both fronts at once."
"Yes," both Fang Xianming and Zheng Zhijie responded.
In the days that followed, the bank run at Hang Seng continued. Relying on his extensive connections in Hong Kong, He Shanheng managed to recover some of the loans he had previously issued, using those funds to pay off depositors.
"Mr. He," an assistant approached. "We're running out of money again. The number of people withdrawing funds is increasing. There are now even rumors going around that you're preparing to flee Hong Kong."
"Once a bank run starts, it has nothing to do with how well the bank is run," He Shanheng sighed.
"Mr. He, you've already done an amazing job recovering funds from so many borrowers. A lesser bank would have collapsed already," the assistant said.
Hang Seng wasn't the only bank suffering from a run—several smaller ones had already gone bankrupt. But the colonial government had been slow to act, only issuing vague reassurances that depositors would be compensated. This indecisiveness only intensified the public's fear, leading to even more withdrawals.
He Shanheng sighed again. "Still not enough. Contact Yang Wendong. Tell him I agree to his terms."
"You're really going to let Mr. Yang buy in that much?" the assistant asked. "And even 50 million HKD may not be enough to stop the run."
"I'm not after the 50 million," He Shanheng replied. "What I want is Yang Wendong's name. Even if he won't publicly guarantee our deposits, his investment might be enough to reassure some of the big depositors and stop them from withdrawing.
And if that's not enough, once his money is in, he won't just stand by and watch Hang Seng collapse. With his capabilities, he might find another way to help us through this."
"Understood," the assistant nodded.
That afternoon, upon receiving the message, Yang Wendong brought Fang Xianming and Zheng Zhijie with him to Hang Seng Bank headquarters.
He Shanheng didn't waste time with pleasantries. "Mr. Yang, time is short. I won't bother with the formalities. I agree to your investment terms. But I also hope we can hold a press conference together.
I don't expect you to guarantee our deposits, but I'd like you to publicly express confidence in Hang Seng."
"Alright," Yang Wendong nodded.
His investment alone was already a signal of confidence.
He Shanheng added, "We'll hold the press conference right here at the headquarters. I'll invite major Hong Kong media outlets. Mr. Yang, I'll also need your people to bring in a large sum of cash, in front of the reporters."
"Cash?" Yang Wendong was caught off guard. "I don't have that kind of cash on hand."
This wasn't the internet era, but large transactions were still done with checks. It wouldn't be hard for Yang Wendong to produce a 50-million-dollar check—HSBC would issue it without question. But cash? That was another story entirely.
"Don't worry," He Shanheng said with a smile. "I've already arranged it."
"You have that much cash?" Yang Wendong was skeptical.
Having 50 million in an account and having 50 million in physical cash were completely different. In his past life, there was a rumor that Li Ka-shing's son had been kidnapped, and the ransom was set at 2 billion HKD. Li Ka-shing had responded that even all of Hong Kong's banks combined couldn't come up with that much cash in a short time.
That's because most bank transactions were digital. The actual reserve cash was only a fraction of that. This was one of the key reasons banks couldn't survive prolonged bank runs.
"I don't," He Shanheng admitted. "But I can make the world think I do. All we need is the illusion. If the depositors see it, that's enough."
"Haha, impressive, Mr. He," Yang Wendong said, giving him a thumbs up.
Bringing in Yang Wendong's investment was a small matter—50 million wouldn't stop a full-scale bank run. But staging the event well could change everything. If people believed in Hang Seng again, the withdrawals might slow. If the panic receded, normalcy could return.
But it was still a gamble. If it worked, they'd pull through. If not, things would return to the brink of collapse, and Hang Seng would likely end up acquired by HSBC.
There wasn't much time left. With Yang Wendong's agreement, He Shanheng moved quickly to spread the news. Yang Wendong arranged for Kong Wah Daily, Oriental Daily, and Ming Pao to cover the story, instructing them to praise Hang Seng wherever possible and to try to sway the public. Even if it didn't stop all withdrawals, getting some people to wait and see could make all the difference. If withdrawal numbers dropped below a certain threshold, the bank might survive.
The next morning, the press conference went ahead as scheduled. Under the eager eyes of the media, Yang Wendong and He Shanheng signed the agreement and shook hands ceremoniously. Flashbulbs went off in rapid succession.
Many people who had come to withdraw their money stood watching. Their resolve wavered. After all, if they withdrew now, they'd only get back their principal—and lose all the interest. For those who had placed multi-year fixed deposits, the losses would be significant.
"Mr. Yang, does your investment mean you're personally guaranteeing the savings of Hang Seng Bank's depositors?"
"Mr. Yang, what's your opinion on the current bank run affecting Hong Kong?"
Yang Wendong faced the press with a calm smile. "I believe that Hong Kong's economy will pull through this crisis. Most banks in Hong Kong are operating normally. The current situation is due to widespread panic and misinformation. I hope everyone can stay rational. Panicked withdrawals will only hurt yourselves in the long run."
Everything he said was vague—purposefully so. Nothing concrete. No commitments.
He would never guarantee Hang Seng's deposits. He wasn't even sure if he could save the bank. If he made such a statement publicly, he'd be expected to follow through—and his competitors would use it to exploit any weakness.
The illusion of strength, for now, would have to suffice.
Still, Yang Wendong didn't outright deny anything when questioned. And sometimes, not denying something was all it took for rumors to take root. Rumors, if used properly, could be a weapon.
Soon, large amounts of cash began being delivered into the bank—one plastic storage box at a time. The boxes formed a long, continuous line that stunned both reporters and depositors.
"They're using our storage boxes? He Shanheng really is clever," Yang Wendong whispered to his team nearby.
The storage boxes weren't large, so containing 50 million HKD required a significant number of them. This made it seem as though Hang Seng Bank had mountains of cash on hand. Few people actually knew what 50 million in cash looked like physically.
More importantly, the boxes were transparent. From every angle, people could see the cash inside. It was much more convincing than wooden crates—those could easily be faked. Even if opened, who's to say the top layer wasn't just a cover?
It was just like the old days, when ancient money houses would display silver ingots up front to show they were trustworthy.
As the cash was stacked into a small mountain, journalists surged forward to take pictures. Even seasoned reporters had rarely seen so much physical cash in one place. If they got good shots, their editors would definitely reward them.
The other depositors were dumbfounded too. Most people panicked when holding just a few hundred-dollar bills, feeling it was unsafe. Now they were staring at millions in front of them. It was surreal.
Meanwhile, another group of well-dressed individuals stood silently nearby—Hang Seng Bank's major depositors. Some had hundreds of thousands, even millions, parked in the bank. They too were considering withdrawing funds amid the panic, but the interest they'd lose would be staggering.
While everyone was still hesitating, He Shanheng stepped onto a small stage in front of the cameras and said, "Friends from the press, please help me share this message: From today, any Hang Seng Bank customer who keeps their money deposited with us will receive an extra 1% interest upon maturity. This policy will be valid for one year."
"Whoa!" gasps and murmurs rippled through the crowd as everyone started discussing the news.
Even Fang Xianming of Changxing Financial was surprised. "Mr. He is bold. This extra 1% interest—across all deposits—will cost the bank at least seven or eight million over a year."
"That's future loss," Yang Wendong commented. "If it helps stop the withdrawals now, then it's worth it. Combined with the visual impact of today's 50 million in cash, it just might work."
In truth, Hang Seng Bank was operating normally. It had simply been sunk by rumor and panic.
If even part of the public regained confidence, it would give He Shanheng enough breathing room to continue gathering funds—and he just might pull through.
After the press conference, He Shanheng approached Yang Wendong with a smile. "Mr. Yang, I really must thank you today."
"You're welcome. I'm a shareholder now—of course I'll do what I can to help," Yang Wendong replied.
As long as it wasn't about guaranteeing the bank's entire deposit base, he was happy to help. After all, He Shanheng was a decent man, and in the early days, he had supported the development of Changxing Group.
Now that Yang Wendong had invested in Hang Seng, he hoped He Shanheng could continue to steer the bank forward. In a way, Yang Wendong now had partial control over a financial institution.
"Going forward, I hope your media group can keep saying good things about Hang Seng," He Shanheng added.
"Of course." Yang Wendong nodded. "TVB will also help out when needed. But we'll keep it subtle. I'll have the media cover the issue from a broader perspective—reminding all depositors across Hong Kong to stop panicking and withdrawing their savings."
This was the benefit of owning media assets. When needed, the group could move quickly to implement its strategic messaging. Otherwise, no matter how rich you were, other media companies might not cooperate in an emergency.
TV, especially, was crucial. Hong Kong already had a good number of televisions, and most of those watching were wealthier families—the exact demographic most likely to start bank runs.
After the press conference, under the direction of Changxing Media, the city's newspapers and TV stations began reporting optimistic economic forecasts and emphasizing the role of banks. They also warned that panic withdrawals would only hurt ordinary people in the end.
Images of cash stacked like mountains appeared on TV and in the papers. Many people began to hesitate. Some decided to wait and see. Others were swayed by Yang Wendong's investment. Those familiar with Changxing Group's size began to trust Hang Seng again.
After all, Yang Wendong was a household name in Hong Kong. Thousands worked for him. Rumors estimated his personal wealth to be in the billions—possibly exceeding Hang Seng's own assets. If he wanted to protect the bank, surely he could.
The next day, Yang Wendong returned to Hang Seng Bank. After all, his 50 million HKD investment wasn't a small matter. He wasn't about to take it lightly.
"Mr. Yang," He Shanheng greeted him with a beaming smile. "We've done a rough estimate. The number of people coming to withdraw funds has dropped by about half. Based on projections, we expect outflows of around 20 million HKD per day."
"Twenty million is still a lot," Yang Wendong remarked. "Doesn't that mean my 50 million will last less than three days?"
That was the terror of a bank run—it was like a high-pressure blood pump draining a person dry. No matter how healthy you were, you'd collapse in minutes once your blood was gone.
He Shanheng smiled. "Three days is already good. I'm also working on raising more funds and borrowing from other institutions. If I can collect money faster than people withdraw it, then the tide will start to turn.
Some customers will have already taken their money out. Others will watch and see that we're still paying withdrawals normally. The longer we survive, the more hesitant people become. That's when the crisis eases."
"That's great news," Yang Wendong nodded. His intervention really had made a difference. Then he added, "Mr. He, I also came here today to tell you something. My team has confirmed that someone is deliberately spreading harmful rumors about Chinese banks in Hong Kong."
"I know," He Shanheng said. "I have two main suspects, but no concrete proof. One is the British banking sector—no surprise there. The other might be Chase Manhattan Bank from the United States."
"Chase?" Yang Wendong raised an eyebrow. "I've heard of them. They've got a fair amount of business here in Hong Kong."
British and Chinese capital weren't the only players in Hong Kong's banking sector. The Americans and Japanese had smaller footprints, but the strength of their overseas headquarters made them formidable competitors.
"A few years ago, Chase tried to enter the Hong Kong market. They approached me directly, saying they wanted to acquire Hang Seng. I refused," He Shanheng explained. "And now, just days after this run began, Chase representatives showed up again. I don't believe in coincidences."
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