Who caused the collapse of Larry Yung Chi Kin: a tsunami is character
2009-04-13 15:38 Nanfang Daily
April 8, 2009, Larry Yung, 67, resigned from the post of chairman of CITIC Pacific.
And Yung also submitted his resignation, and also with Yung venture with CITIC
Pacific to create a veterans --- 61, CITIC Pacific Managing Director Henry Fan.
Joining a pair of old partner&#39;s withdrawal marks the CITIC Pacific
&quot;Yung era&quot; the end of 53-year-old successor, parent CITIC
Group Vice Chairman and President Chang Zhenming.
Yung resigned, even with foreign speculation, this may cause Yung faces 10 years in
prison. In addition, Jung&#39;s industry is considered the main heir of the eldest
son of Carl Yung Yung (currently serving as directors of the Company) may resign the
news was also reported.
Premier Wen Jiabao told Hong Kong media pointed out that the problem occurs on
CITIC Pacific, the first, according to the laws of the HKSAR and regulations dealing
with financial regulation, both the mainland and do not interfere with other aspects.
Second, to make clear the fact that after treatment, to draw lessons. Including business
philosophy, business direction, management and strengthen supervision, there has
been a lot of lessons to be learned.
As the entrepreneurs of the most special one, represented by red capitalists Yung and
the fate of the family&#39;s glory and become the most public concern (much
higher than CITIC Pacific&#39;s fate). Larry Yung is the conclusion that the
stage will be out of business, clearly too early; said Larry Yung&#39;s
resignation means &quot;Rich, three generations of&quot; the curse once
again be verified, his family would go from decline is nonsense; The only confirmed
that, as Larry Yung red capitalists have become history. This, perhaps Yung signed the
letter of resignation when the most sad place.
All along, Yung are wearing &quot;chains&quot; of the mall dancers.
&quot;Red capitalists&quot; status, to provide a luxurious stage than others;
and Yung want to demonstrate that their success is entirely their own effort. Larry
Yung Chi Kin cost of going against &quot;stick sound, careful, not
speculation,&quot; the teachings of our forefathers, wantonly engaged in
financial speculation. Unfortunately, a gamble, 30 years of hard work for Yung results
almost vanish. Life almost transported almost, character Shiran!
Australian crashed out of doing more than &quot;just make more than
loss&quot; of the contract
CITIC Pacific&#39;s business aviation, real estate, steel, power generation and
many other fields, despite the experience of the global financial crisis, but these
businesses of CITIC Pacific has not been much damage. Real fatal blow to CITIC
Pacific, is in Australian dollars on derivatives investments.
March 2006, CITIC Pacific to spend 415 million U.S. dollars acquisition of two
separate Western Australia has one billion tons of magnetite resource extraction
companies the right to Sino-Iron and BalmoralIron all options. This project allows
CITIC Pacific has a huge demand on the Australian dollar to the capital expenditure in
2010, demand for 1.6 billion Australian dollars, plus annual operating expenses by
about 10 billion Australian dollars, the project for a period of 25 years.
To prevent the risks of exchange rate changes (a few years ago the Australian dollar
(0.7241,0.0047,0.65%) has been greatly appreciated), in August 2007 to August 2008,
the CITIC Pacific and Citibank, HSBC, etc. signed dozens of foreign exchange
contracts, which accounted for the largest proportion of Australian contracts, Citic
Pacific in fact end up holding 90 billion Australian dollars, Chao Hui mining
investment amount higher than the actual 4 percent. Under the contract provides that
the contract has the highest profit per dollar limit, when the Australian dollar
exchange rate higher than 0.87, the CITIC Pacific may make the difference, the
contract automatically terminated. However, if the exchange rate lower than 0.87, it
can not automatically terminate the agreement, Citic Pacific must continue to 2 times
or times to accept the goods that is amplified losses. In the professional opinion, this
contract is characterized by &quot;more than just make a loss&quot;, that is,
the Australian dollar continued to appreciate, CITIC Pacific earns up to 53.5 million
U.S. dollars; and if the Australian dollar depreciated, the loss is a bottomless pit.
CITIC Pacific to fully charge in a multi-Po heads, they were Australian.
The outbreak of the financial tsunami, so rapid depreciation of the dollar. October 20,
2008 issued notice the huge loss on the Australian dollar was only 0.7, according to
the relevant exchange rate, the expected announcement date of total loss of about 15.5
billion Hong Kong dollars, if not the major controlling shareholder of CITIC Group,
to provide 15 billion dollars in reserve credit, CITIC Pacific will fall into bankruptcy.
End in December 2008, CITIC Pacific loss of 9.1 billion Hong Kong dollars to the
cost of an end to this bizarre speculation.
As for why gamblers type CITIC Pacific to sign the agreement so obviously unfair to
do more than Australian dollars, so far remains a mystery, yet the judiciary to
establish the truth, or will become a permanent mystery.
The paradox is that CITIC Pacific as early as Sept. 7, had been informed of the
companies in leveraged foreign exchange contracts led to huge losses, but the board
has not been disclosed to the public until a half months later, when the company lost
more than half the market value be announced. Just at this time, capital market size
CITIC Pacific&#39;s short selling suddenly soaring, even 10 times before the
accident. The company&#39;s share price on Sept. 5 to close at 24.9 Hong Kong
dollars, then gradually fell to 14.52 Hong Kong dollar share price. After the
announcement of the huge loss events, the minimum share price fell 3.66 yuan, the
profit of a number of short selling, while small investors were heavy losses.
Larry Yung, said after a press conference held for the investment in his prior
knowledge, the financial sector made the decision to bypass him, while the financial
sector in the first two people who were responsible for
&quot;accountability&quot; (the former financial director Zhang Financial
Controller Chau Chi Yin constitutional and the resignation). However,
Yung&#39;s daughter, former financial director of Wing Ming Square only to be
demoted, and did not leave the company. Yung also denied Leslie Chang Li Hsien as a
&quot;scapegoat&quot; theory. Larry Yung said in the conference, he on the
foreign exchange derivatives investment decisions,
&quot;knowledge&quot;, &quot;This is him (Leslie Chang Li Hsien)
of its own, not through legal means.&quot;
Police involved in the investigation, &quot;red top&quot; grim demise
For CITIC Pacific&#39;s &quot;Australian&quot; incident, October
22, 2008, the Hong Kong Securities and Futures Commission began a formal
investigation. 22 Hong Kong Stock Exchange also said that for the time being
received about 10 complaints related to Citic Pacific, the Institute will follow up on
In order to meet the regulatory investigation, CITIC Pacific Managing Director Henry
Fan temporarily retired Chairman of the Committee on Takeovers and Mergers
Commission, the Takeovers Appeal Committee and the Nomination Committee
ex-officio members, and the HKEx Board and other positions, or to avoid any
possible conflicts of interest.
In response to difficulties, CITIC Pacific on October 21 announced the proposed sale
of a subsidiary of emergency late night dch all or part of the equity to get some money.
In the self same time, Yung did not forget to help the parent company CITIC Group.
Complete some of the immediate emergency treatment, the Yung immediately flew to
Beijing, the CITIC Group for help. Critical moment, CITIC Group, reach out again
and decided to CITIC injected 1.5 billion for restructuring part of the debt obligations
of foreign exchange contracts. CITIC Pacific also cease to sell Dah Chong Hong.
Assistance in obtaining, after CITIC Group, CITIC Pacific has finally Huanguo Lai
In a positive out of this predicament, while CITIC Pacific, CITIC Pacific SFC
investigation departments are going deeper. January 2, 2009 notice announced that, 17
department directors are receiving the SFC investigation, including the chairman
Larry Yung Chi Kin, his eldest son, Carl Yung and Group Managing Director Henry
Fan, and seven executive directors and seven non-executive directors. However, the
incident is considered the three key players, including former chief financial officer
her daughter Yung Yung Ming Fong, the former because of the incident were
dismissed and the former finance director Leslie Chang Li Hsien Chief Financial
Officer Chau Chi Yin, not in the survey list.
March 25, CITIC Pacific announced the 2008 results. Annual report, 2008, CITIC
Pacific after-tax net loss attributable to shareholders of 12.6 billion Hong Kong
dollars, which led to the realization of foreign exchange contract and the fair market
value of the after-tax loss of 14.6 billion. Excluding the losses, the profit after tax last
year, can get 1.9 billion Hong Kong dollars.
&quot;This is the establishment of CITIC Pacific&#39;s first loss in 19
years.&quot; When the silver-haired Larry Yung said the fact that heavy, it is said
the conference was suddenly plunged into a quiet spot. Yung stressed: &quot;I
have not thought about retirement. Whether to continue as chairman, or if he resigned,
there was the decision by the Board to it.&quot; For 2009, Yung said, is
confident to profitability in 2009 profit, but profit margin is difficult to predict.
With Larry Yung Chi Kin &quot;red top&quot; in the background,
combined with leading corporate sponsor of CITIC Group, the industry generally
believe that CITIC Pacific, &quot;Australian&quot; incident, this should be
marked with a full stop. Larry Yung&#39;s position in the conference report,
appears to have passed this information to the outside world.
However, on April 3, Hong Kong Police Commercial Crime Bureau on the same day,
according to a search warrant on the headquarters of CITIC Pacific, CITIC Tower,
surprise --- survey of directors of the company have made a false statement and
conspiracy to defraud in violation behavior, makes the case suddenly upgrade.
6 million dollar capital started operation by continuously become richest man
Larry Yung is the only son of Rong, with Jung&#39;s family, economic and
political arena in China&#39;s influence can be said with Jade Yung born.
The late 50s of last century, when the whole of China is still in the extreme shortage
of material when the 16-year-old Larry Yung has just shown the children of a family
&quot;style.&quot; After college Larry Yung Chi Kin, then 8 years of
carrying the stone, earth digging, moving equipment and so on grassroots work,
returned to Beijing in 1972.
Yung began his commercial real sea career began in 1978. Is in June, Yung leave of
their parents, came to Hong Kong alone, to join their cousins Rongzhi Xin, Rong
Zhiqian founded in 1963 and love card electronic. With his father, a business
investment in Hong Kong before liberation dividend income 6,000,000 Hong Kong
dollars, Yung started in Hong Kong. After a series of investments, as of 1984, Larry
Yung&#39;s wealth has increased to more than 400 million Hong Kong dollars.
In 1986, Larry Yung, CITIC Hong Kong joined the company as vice chairman and
general manager. Start the Yung &quot;red capitalists&quot; of legend.
Just took office, hard-edged Yung to put on a good show: the 2.3 billion dollar
acquisition of British companies in Hong Kong Cathay Pacific Airways
(9.26,0.17,1.87%) 12.5% stake in the company. Cathay Pacific Airways is a veteran of
the British companies, is an international airline. Cathay Pacific to acquire, Yung was
carried out for 6 months of research. In the findings reported to the Beijing
headquarters, less than 5 days of CITIC Group, the investment was approved, the state
authorities also approved a 800 million yuan special loan as operating capital. After
this incident, Yung to fame.
In 1990, Hong Kong, CITIC bought 46.3% stake in Dragonair, became the largest
shareholder, and invited Swire, Cathay Pacific shares two companies, two months
later, Hong Kong Dragon achieve turnaround. Acquisition of Dragonair in the same
year, CITIC Hong Kong has one of the largest ever investment by 100 billion to buy
the highest market value at that time, the company --- 20% stake in Hong Kong
The end of 1989, CITIC Hong Kong to over 300 million dollar cost of the acquisition
was Chao Kuang-piu family held 49% stake in Pacific development, then, into
Dragonair by assets such as the expansion of its stake in the Pacific Group to 85%.
The development of CITIC Pacific after the acquisition of Hong Kong, in 1991,
CITIC Pacific will be renamed. CITIC CITIC Pacific became the capital in the
operation of the Hong Kong platform.
In 1992, CITIC Pacific began its second round of capital operation. Early 90s of last
century, Hengchang line intends to sell the company&#39;s largest shareholder.
Larry Yung Chi Kin Hang Cheong-owned high-end fancy car dealership the potential
value of these assets, they and the Li Ka Shing Hang Cheong convince shareholders
sold their shares in CITIC, Larry Yung Chi Kin Li Ka-shing, and so on. Then, CITIC
Pacific in early 1992, well above the price of its net assets to the public issuance of
shares for the acquisition of controlling stake in Hang Cheong. Trading in the Hang
Cheong, Larry Yung reportedly earned more than 8,000 individuals million. CITIC
Pacific in 1992, issuing additional shares to the public, he would use the money to and
the majority of investors the same price, bought 3,000 shares of CITIC Pacific shares.
December 1996, CITIC CITIC Hong Kong to the management of 33 per share price
of HK stock transfer 330 million shares (at market price of 40 yuan). Larry Yung Chi
Kin and the general management to the same price, they bought 290 million shares.
Become the second largest shareholder of CITIC Pacific. Since then, Larry Yung,
CITIC Pacific is becoming increasingly strong individuals. CITIC Pacific became the
Hong Kong stock market, &quot;Purple chip company&quot;: CITIC
Pacific excellent performance year after year, is regarded as blue chips; the same time,
because Larry Yung, CITIC back, it was seen as red-chip companies. Red with blue,
nature is purple.
In the early 90&#39;s, the formation of a new round of opening up
China&#39;s economy surges, while Hong Kong is
&quot;return&quot; on the eve. Hong Kong tycoons to invest in mainland
China, need someone to matchmaking. Yung year status as a special character, nature
will become rich and top government officials have access to the Mainland
&quot;bridge.&quot; At that time Hong Kong&#39;s richest
businessmen, including Li Ka-shing, Cheng Yu-tung, Kuok so happy to be his partner,
an influential investment banks have become their advisor Francis Leung. Into the
21st century, CITIC Pacific more active trading in the assets of the Mainland market,
such as selling a range of infrastructure projects in Shanghai, bought a 50% interest in
CITIC Capital, Jiangyin Steel&#39;s equity holdings.
Actively expanding, Yung also has to his eldest son Carl Yung and her daughter
Frances Yung Ming Fong arranged into Citic Pacific, a key department head.
Lonely dancer Yung farewell complex mentality
Yung and Citic Pacific in Hong Kong, the development of wind in its sails, many of
the bold acquisition has never lost. However, do not know this well, in the end is
Yung their commercial talent or because they benefit from their special political
background. I believe this confusion is a major problem plagued Yung.
Yung has repeatedly said in public: &quot;I do not seek to be the father to do
something, to do things by other people&#39;s fame, not long, may be one
occasion, but can not solve its fundamental problems.&quot;
On the one hand, Yung would like to get rid of CITIC Group, CITIC Pacific and the
relationship between the ability to prove his solo; on the one hand, CITIC Pacific met
in times of crisis, Yung is also the first time think of CITIC Group, the hope CITIC
Group, CITIC Pacific one can rescue. The CITIC Group also live
&quot;Wing&quot; look, the two met in CITIC Pacific crisis, played a
CITIC Group, CITIC Pacific and the relationship between the helpless and chaotic.
In 1996, Larry Yung Chi Kin alone flown to Beijing&#39;s Chang&#39;an
Street in Beijing, and Wang Jun, CITIC Building, separate talks to ownership by
management, and the separation of CITIC Group. Wang Jun, CITIC Group, is a
former chairman of the late son of former Vice President Wang Zhen, then assisted
Rong founded Citic Group, CITIC Group has high prestige. In all eyes, Wang Jun and
his father, resolute and unyielding, said that CITIC Group, was within the top no one
believed Yung Wang Jun, the request will agree. However, we are headed by Larry
Yung, Citic Pacific management to get a 25% stake, while the wing&#39;s also
became the second largest shareholder of CITIC Pacific. It is said that in order to
achieve this goal, Yung executives spent a lot of relationships.
Larry Yung Chi Kin On the relationship with the CITIC Group, the mentality is quite
complex. In an interview with Phoenix TV interview, Mr Yung said, &quot;I
have business to CITIC Hong Kong today, you have to ask me, I can tell, I have a
clear conscience. Time after the establishment of CITIC Group&#39;s Hong
Kong head office allocated to our 3000 million dollars in start-up, I saw today, this 30
million dollars I would have also, I also handed over to the head 11 billion Hong
Kong dollars in cash, there are now 30% stake in CITIC Pacific, in accordance with
the terms of the net assets, I do have a value of 20 billion. So I think that my
conscience is clear, but I am not satisfied now, I want to do something more.
As a special entrepreneur, Larry Yung Chi on the one hand repeatedly stressed that
they have to bear in mind the &quot;stick sound, careful, not
speculation,&quot; Zuxun. October 26, 2005 Rong died during the funeral
process in Beijing, Yung told China Central Television interview, &quot;I do
things should be done industry, this is a rule that we Veterans Home, a
tradition.&quot; Another side, Yung has been speculation in risky, CITIC
Pacific&#39;s history is a history of corporate mergers, a small broad history.
This contradiction, Yung business throughout the history of always. In the end, Yung
fall in the &quot;Australian door&quot; into the huge gamble.
Larry Yung is accidental and inevitable demise
&quot;Accidental, is inevitable.&quot; Larry Yung, a very unexpected to
say goodbye to their single-handedly founded reasons for CITIC Pacific, CITIC
Pacific, a core sector in serving the people, said: &quot;Larry Yung Chi Kin, and
the biggest difference is that Li Ka-shing, Li is a businessman, and Wing is more like
a capitalist, planted by accident in the capital markets is inevitable, there are elements
of character. &quot;
Recalling the ups and downs of life, and Larry Yung&#39;s Citic Pacific history,
it is not found in Yung business excels in management, but its superb financial skills.
Many people evaluate Yung man humble, good contacts, who can not see the rich air
of second-generation accustomed Jiaoshe. However, one can observe around us, face
moderate &quot;wing boss&quot; in the capital of the sea are like sharks as
Larry Yung Chi Kin life first bucket of gold from the capital operation. Love from the
shares to the founder of e-card to provide services in support of computer software
design company California auto, and business value through the equity market,
he&#39;s 1 million net worth from 1978 to 1984, the rapid rise of 400 million
yuan net worth. 6 years, the wealth of value-added times, capital can not resist the
When in 1986, Larry Yung, CITIC Hong Kong joined the company as vice chairman
and general manager, the illustrious family background and personal charm to bring
the rich network of contacts, &quot;red chip&quot; and
&quot;window&quot; brought a special platform, bones of the preference
capital operation, a variety of factors began to ferment in Larry Yung&#39;s
bones together, a fight in the capital markets can not stop to open a large screen: 23
billion acquisition of 12.5% stake in Cathay Pacific, the acquisition of 5 billion a
46.3% stake in Dragonair and their integration into Dragonair, M &amp; A
Pacific development and Hang Cheong, RTO, to persuade major shareholders to do
MBO ... ... dazzling in a series of mergers and acquisitions and capital operations,
CITIC Pacific and Larry Yung Chi Kin kick off reached its peak.
Larry Yung, among which the individual can not deny, but the technology behind
successful wealth is inseparable from the CITIC this tree. CITIC Pacific in the
implementation of the management of the second year after the acquisition, Yung had
to suffer the Asian financial crisis, Citic Group also shot by one billion HK dollars to
help tide over the difficulties of CITIC Pacific. Larry Yung is the son of former Vice
President Rong, Wang Jun, CITIC Group, is a former chairman of the son of former
Vice President Wang Zhen. For Yung, Wang Jun had evaluation, said: &quot;His
vision of good business, so he suggested that I rarely disagree.&quot; Retirement
with Wang Jun, the formation of a special emotional history is gradually fading , Yung
and Citic Group also become pure relationship between management and
30 years passed. If there is no bold adventure had, perhaps there is no Larry
Yung&#39;s first accumulation of wealth. But precisely because the Australian
bold gamble failed leveraged foreign exchange contracts, which makes Yung into a
whirlpool of capital, which from CITIC Pacific &quot;abdication.&quot;
However successful it may Yung Wing and his family will CITIC Pacific&#39;s
taken to a new level.
Cheng is also the capital, lost capital is also being investigated by the police Yung
from Hong Kong, if uneventful, in turn means to add a wing&#39;s how
business myth? The only sure that this is not a minor with more than shade and trees,