novelraw Chapter 95 The Old Dog Suffers a Tragic Backlash
Chapter 95 The Old Dog Suffers a Tragic Backlash
The door to the general manager's office at Kowloon Club was pushed open.
Chen Pufen was extremely displeased with this uninvited visit and sternly questioned, "Chen Guanjiang, what are you doing?"
Eight bodyguards kept bystanders out. Chen Guanjiang placed the file bag on the table and said, "Uncle Fen, don't panic. Please read this first before we talk."
"Chen Dacai!"
Chen Pu gritted his teeth and uttered the name, staring at Chen Guanjiang as he said, "You dare to mess with me?"
The folder contained not only bank transaction records, but also fictitious purchase and sales contracts, a draft of the original prospectus, and minutes of confidential internal meetings…
No single department within Xiangjiang Antenna could provide such a comprehensive chain of evidence. Only Chairman Chen Dacai, acting as a scapegoat, participated in the entire process and secretly recorded everything.
"Uncle Fen is being unfair!"
Chen Guanjiang said with a smile, "Ah Cai helped you make so much money, but you only gave him 500 million Hong Kong dollars and made him take the blame for you and live in anonymity for the rest of his life. No wonder he betrayed you."
"I don't need your help. What exactly do you want to do?" Chen Pufen felt as if his heart had been gnawed by a wolfhound he had raised.
Xiangjiang Antenna has a total share capital of 5000 million.
Chen Pufen didn't intend to issue all the shares; he planned to scam tens of millions and then stop. He figured the Hong Kong government, already in a mess, wouldn't have time to deal with such a small matter.
Unexpectedly, Chen Dacai, a "family heir," not obediently accepted his wrongful imprisonment, but dared to raise the stock price of the antenna stock without authorization, and even issued new shares without authorization, bringing a giant wolf to the family.
Scamming tens of millions and scamming billions are two completely different concepts. To avoid getting into trouble, Chen Pufen had to help cover it up.
A wave of unrest, a wave of up again.
That guy actually handed the evidence to Chen Guanjiang again? At this moment, Chen Pufen just wanted to keep this guy in check and get rid of Chen Dacai as soon as possible to prevent him from doing anything unpredictable.
"I have too many stocks, and to avoid a panic sell-off, I need Kowloon Securities to help me sell them off in large quantities. Also… there's a 2.5% brokerage commission, you know what I mean!"
"Aren't there other conditions?" Chen Pufen sneered.
In paper stock trading, the seller can only receive the money two days later, during which time there is room for manipulation by brokerage firms and exchanges.
Chen Guanjiang holds a wide variety of stocks, and it wouldn't be difficult for him to liquidate them amidst the current huge trading volume. If this guy is willing to turn against you, he must have even more outrageous demands.
"Hehe! Uncle Fen has a really sharp eye!"
Chen Guanjiang continued with a smile, "My Koo News can issue another 2500 million shares, which, at the current price of HK$11.5 per share, can raise HK$2.87 million."
"But you know my situation. If I raise all the funds through a public offering, my equity will be diluted to 17.5%, which could very well be taken over by someone with ulterior motives. That's why I need your help to break it up..."
Under normal circumstances, if the largest shareholder of a listed company holds 35% of the shares, there is no possibility that the controlling stake will be taken away by someone else.
A shareholding ratio of around 25% is relatively normal, but there is still a possibility that someone will take away the company's controlling stake at all costs.
17.5% is a bit dangerous!
They issued another 2500 million shares, taking a 50% stake, and could acquire a 20% stake with just HK$2.3 million. They then convened a board meeting to demand a new election for chairman.
With a controlling stake of HK$2.3 million and a cash flow of HK$2.87 million, along with five companies with consistent cash flow, plus a free newspaper and listed company shell, many people will likely seize the opportunity to launch a surprise attack.
If there are risks in the primary market, then all of them can be handed over to the secondary market. By breaking up the stock into smaller pieces through the Kowloon Club, even if someone is watching, it is impossible to complete the increase in holdings without alerting the market.
If you wait until the stock market crashes, you can land safely and then increase your shareholding to a safe level after the collapse.
"What else?" Chen Pufen asked, still wary.
These two things, taken together, wouldn't be difficult to accomplish even with some cost, and weren't worth Chen Guanjiang threatening him, a district councilor and Justice of the Peace.
"I knew I couldn't hide it from you..."
Chen Guanjiang chuckled awkwardly, "I hope Uncle Fen can transfer the exchange to me."
“…………”
Chen Pufen stared at Chen Guanjiang as if he were seeing him for the first time, his eyes wide with disbelief. After a long while, he finally reacted and demanded, "Who do you think you are? How dare you try to meddle with the stock exchange!"
Although there were no restrictions before, establishing a stock exchange was still something that ordinary forces could not do.
The chairman of the Hong Kong Stock Exchange, Qiu Cuo, may not be a well-known figure, and he himself has lived a secluded life for many years, but his profound background can be summarized in one sentence:
Sir Paul Chater had two protégés: Robert Ho Tung in the late 19th century and Steve Ballmer in the early 20th century.
Sir Robert Ho Tung has passed away, but he is in his prime. This alone is enough to demonstrate the depth of the Hong Kong Club.
Li Fuzhao, on the other hand, had the support of the entire Li Peicai family, with several banking families and the legislative sector as his background, which enabled him to build the vast Far East Stock Exchange.
Hu Hanhui of the Gold and Silver Exchange, who previously served as the chairman of the Chinese Gold and Silver Exchange, has close ties with the overseas precious metals industry.
In his youth, he was a student of Mr. Jin, Mr. Liu, and Mr. Qiao, and joined the earliest New Flower Society. Both his personality and background were extremely complex.
and so!
Chen Pufen's background is nothing compared to these three, and the Kowloon Stock Exchange is certainly no match for the other three.
But what exactly is Chen Guanjiang?
Is the stock exchange something he can spy on?
"Uncle Fen, don't be angry..."
Chen Guanjiang brought him a cup of water and said, "You've made enough money over the years, haven't you? The stock market crash will be a real problem. Uncle Fen is focused on his career and doesn't want to be distracted, so let your nephew share the burden for you."
From an official standpoint, the chaos in the stock market has reached a point where it must be rectified. MacLehose has already conveyed his intention to merge the four exchanges, and he will inevitably take steps to facilitate the merger after the stock market crash.
Privately speaking, with the stock market about to crash, trading volume will inevitably drop sharply. Given the size of the Kowloon Club, merging it with the other three exchanges would not align with the original intention of making the Kowloon Club a treasure trove for the family.
If the stock market crashes, the daily trading volume may drop to HK$300 million. After deducting the necessary expenses of HK$5 per day based on the 0.02% exchange settlement fee, the profit would be HK$1.
Admittedly, this figure is not worth clinging to by District Councilor Chen Pufen; the money from selling the exchange license and earning interest would be more than that.
With transaction volume plummeting to HK$300 million,
Early-stage investments and valuations at the Kowloon Stock Exchange;
If Kowloon merges with three other exchanges with trading volumes more than ten times that of Kowloon, the combined shareholding will not be 25%. It would be good if it could retain 5%. The most valuable license would become meaningless.
Holding less than 5% of shares in the United Exchange?
They can't even get a board seat!
Otherwise, Chen Pu-fen would probably rather perish than relinquish the Kowloon Stock Exchange, which would be Chen Guan-jiang's only chance to gain control of the exchange...