In the afternoon, Lin BaoCheng went to Baisheng Securities.
The HK$100 million raised from Galaxy Games and other companies had been used to buy Hutchison Whampoa shares. That morning, all were sold. Although selling began once the price broke HK$20, the rapid rise pushed the average sale price to HK$24. Altogether, 27.8 million shares sold for HK$667.2 million. After fees, about HK$667 million remained.
Normally, stock and futures trades aren't taxed, only charged fees.
But once profits are made, capital gains tax applies — similar to corporate income tax, though higher for financial investments.
In Hong Kong, investment profits are taxed at 10%. Less than in the U.S., but still significant.
Thus, from HK$667 million proceeds, with HK$100 million cost, profit was HK$567 million. Tax: HK$56.7 million. Net profit: HK$510.3 million.
Taxes weren't paid immediately. The HK$56.7 million would remain at Baisheng Securities until year‑end reporting.
The HK$510.3 million usable profit was distributed:
Starshine Cinemas: HK$150 million
Jupiter Toys: HK$20 million
Asia Television: HK$50 million
The rest to Galaxy Games
HK$150 million was enough for Starshine Cinemas to build a chain across Hong Kong, especially since they were multiplexes with larger facilities.
Hutchison's repurchased shares were also sold: 17 million shares for HK$410 million, profit HK$310 million, plus 10 million shares retained by the company. Taxes would be calculated at year‑end after deducting investments.
The HK$410 million recovered was directed by Lin to real estate and retail — heavy asset investments. He instructed Wei Li not to sell properties, only rent them, limiting profits and thus reducing taxable income.
At Baisheng Securities, beyond approving transfers of over HK$600 million, Lin also inquired about establishing a fund.
Over the weekend, An Yuan had investigated.
Lin had invested in funds before his rebirth, so he knew some restrictions. Funds were divided into mutual funds, hedge funds, and futures funds, each with limits. Mutual funds could be stock, bond, mixed, or money market — generally conservative.
For stock funds, advertising in media was banned, and no single stock could exceed 10% of total capital.
But An Yuan reported that in Hong Kong at this time, restrictions were minimal. Fundraising couldn't use TV or radio, but up to three newspapers could advertise.
Operations were unrestricted — stocks, futures, anything. The only rule: no more than 50% of capital could be used to buy companies where the fund controller held over 30% shares, to prevent self‑dealing.
For Lin, this meant any company where he held over 30% — including Hutchison — could only receive up to 50% of fund capital.
In short, Hong Kong's fund rules were very loose.
"An Yuan, register Baisheng Fund with the government. Announce fundraising in South China Morning Post, Hong Kong Economic Journal, and Oriental Daily. Fundraising period: half a month."
Lin chose those papers carefully: English‑language, economic, and mass‑market — covering all classes.
An Yuan asked: "Chairman Lin, how much will we raise? Maximum and minimum investment amounts?"
"No cap. Each unit is HK$1,000. Minimum one unit. Maximum HK$100 million."
Lin continued: "Funds will be locked for one year. No redemption, whether profit or loss. Fees: 5% annual management fee. If profit under 30%, only 5% fee. Profit 30–50%, fee rises to 15%. Profit 50–100%, fee 30%. Profit over 100%, fee 50% — a 50/50 split."
Though the fund was mainly for networking, Lin wouldn't work for free. His bottom line was a half‑and‑half split.
"Chairman Lin, other funds charge only 3%," An Yuan reminded.
"Keep it at 5%. Sometimes choice matters," Lin smiled. "If someone pays 2% more, I guarantee they won't lose — only gain."
"Go ahead. Establish the fund, announce fundraising. Whatever we raise in half a month is fine."
"Yes, Chairman Lin."
Lin knew initial fundraising would be limited. Despite his billions earned for Hutchison in months, trust was scarce due to his youth. Few would invest heavily.
But that didn't matter. With one or two years of huge returns, investors would flock.