In mid-1964, Meng Youtian had already realized that the crisis was approaching. He found that the banking industry, as a weather vane, was too deep into real estate, resulting in a serious shortage of cash reserves. Once a tide of crowding occurs, the consequences will be serious and chain-based.

In fact, the shortcomings of the Hong Kong banking industry were already noticed after Liao Chuangxing squeezed and storm in 1962. At that time, Tom Kings, a senior British Bank employee, visited Hong Kong to study the issue of revising the banking regulations, and submitted a report on the Hong Kong government on the Hong Kong banking system and the recommendations for revising the banking regulations.

The report believes that the main problems in the Hong Kong banking system are: too many banks and limited markets make it a very fierce competition to seek deposits, which is reflected in attracting deposits with high interest rates and opening a large number of branches; some banks have excessive loans and investments in real estate and stocks, which are too deeply trapped in the real estate and stock markets; family banks often combine banking business with the family business of directors, which affects the security of bank deposits.

Of course, if you can make successful investments in the real estate and stock markets, the gains will still be very considerable; and there are also many banks that rely on profits from real estate trading to establish their current achievements. However, this is not a sound banking system. It is not surprising that many banks have failed to abide by the principle of "borrowing and lending balance".

Unfortunately, when the real estate and stock markets were booming, this calm analysis and judgment was ignored by most people.

Fortunately, Great Wall Industrial has always adhered to a steady policy in its development in the real estate market, and the unsold and under-constructed properties have always been controlled to a fixed number. Once the market turns bad, there will be no backlog of funds. Although the land has risen and fallen in the short term, the overall trend is upward. Meng Youtian would rather hold the land to maintain the value, rather than crazily raise funds to build buildings.

Investment in Singapore seems to be very smooth, and the company has received many preferential policies in the local area. The Meng family industry, which mainly focuses on textiles and clothing, is gradually diversion and expansion into Singapore. What followed was housing purchases. As a safe haven, Meng Youtian bought a house in Singapore and could move to temporarily live there at any time. At the same time, this departure will also become a smokescreen for the secret expansion of Great Wall Industrial. It will make people's hearts even more unstable during turbulent times.

"I have made a lot of money now, so don't hold it anymore." Meng Youtian took the lead in reminding his family and friends that the real estate and stock markets have been booming in recent years. The returns have been quite considerable. It is obviously too early to start mergers and acquisitions or holding shares.

"Put your deposits from small and medium-sized banks, don't be greedy for the interest and deposit them into HSBC. If the bank can't hold back, then what's the point?" Meng Youtian's second reminder came soon.

At that time, banks in Hong Kong were launching fierce interest rate wars to compete for public deposits. Several British banks led by HSBC also participated in the war to show other banks that uncontrollable competition is futile. When the interest rate war reached **, it was reported that some small banks even raised interest rates to more than 10%.

Once a tide of crowding occurs, a number of small and medium-sized banks will inevitably go bankrupt or go bankrupt, and even a number of companies in factory conditions will be affected. For small and medium-sized banks that are deeply trapped in loans and investments in real estate, it may be difficult to change the final outcome now.

At that time, rumors about the financial difficulties of Mingde Silver were circulating on the market, but they did not attract public attention. Most of them believed that competitors deliberately spread slander. A few months later, on the eve of the Lunar New Year in mid-January 1965, the market's seasonal demand for money increased according to normal circumstances, and the bank's monetary policy began to be tense, and the straw that broke the camel's back also appeared.

The fuse was that the US dollar check worth 7 million Hong Kong dollars issued by Mingde was refused payment. Then, several larger customers took the checks to the Mingde Bank Headquarters in Central District to cash out, but the bank did not have enough cash payment. The news came out, and all the customers were coming. In the afternoon of the same day, the Hong Kong Bills Exchange announced that the exchange of bills for the bank was stopped. Early the next morning, the door of the Mingde Bank Headquarters was crowded with withdrawals. Subsequently, the Hong Kong Government Bank Supervisory Commissioner announced that he would take over the Mingde Bank in accordance with Article 13 of the Banking Ordinance.

The Mingde Bank squeezing wave set off the first wave of the banking crisis in 1965, and even greater crises followed one after another. Guangdong Trust Commercial Bank, which had more aggressive and stable progress, became the second goal of the squeezing wave. Under the surging crowds, the Guangdong Trust Commercial Bank head office and 24 branches announced the closure of business.

Rumors about local Chinese banks' financial difficulties were everywhere, like a wildfire burning all over the entire market. The terrified depositors began to withdraw deposits in large quantities, and the tide of withdrawal quickly spread to banks such as Hang Seng, Guang'an, Daoheng, Yonglong and other banks. The traffic in the central area was severely congested and police had to be summoned to maintain order. Even after the bank's business hours ended, the dragon who was queuing to withdraw money refused to disperse.

The panic continues to squeeze out the tide of spreading to the Far East Bank and spreading to Macau. Due to concerns that the situation is out of control, HSBC issued two statements to ensure unlimited support to Wing Lung Bank and Far East Bank. In addition to the publication of the Gazette, the Hong Kong government issued an emergency decree: declare the pound sterling as the legal currency, and the government will airlift a large number of pound paper notes from London to Hong Kong to deal with the lack of currency. Then, Hong Kong Finance Minister Guo Bowei, HSBC General Manager Sandas, and Standard Chartered Bank Manager Ji Lixian jointly held a press conference, emphasizing that Hong Kong banks have sufficient funds to calm people's hearts

After a series of measures taken by the Hong Kong government and banking system, the tide of squeezing has temporarily subsided. However, the market calm is only temporary.

Hang Seng Bank, the largest Chinese-owned bank in Hong Kong, is still troubled by rumors. There are many unfounded rumors maliciously attacking Hang Seng Bank. Some irresponsible newspapers also publish news that it is harmful to local banks that are not named. Hang Seng is widely considered to be one of them. During this period, some major customers quietly canceled their accounts. In early April, the storm of squeezing began again, and this time the first one was Hang Seng Bank.

Although HSBC repeatedly stated its support for Hang Seng Bank through communication media and appointed staff to stay in the lobby of the Hang Seng Headquarters to prove that there was enough cash supply. Although Hang Seng Bank repeatedly assured the depositors, the situation was still getting worse. On April 5, Hang Seng Bank lost 80 million yuan in a day, and by early April, a total of 200 million Hong Kong dollars were lost. Hang Seng’s deposits were drained bit by bit. If this continues, the bank will be unable to repay its debts and even reach the verge of bankruptcy. (To be continued, please search for Astronomy, the novel is better and faster!
Chapter completed!