Chapter 568: Innocents Involved

Zhuang Rongkun returned empty-handed, and Zhuang Qingquan faced the same outcome. Meanwhile, Qiu Degan, president of Far East Bank, which had just lent 50 million HKD to Henglong Bank, was distraught. He immediately called Zhuang Rongkun, hoping to retrieve the 50 million HKD.

Unfortunately, given the critical situation concerning his own bank's survival, Zhuang Rongkun was not inclined to return the money. Once the funds were in his hands, there was no way he would comply with Qiu Degan's request.

In today's world, those who owe money are the real masters.

At Jia Hua Bank, Liu Cansong stood at a somewhat hidden corner, watching the crowded bank lobby. People were visibly agitated, pushing to withdraw their money, while the bank staff struggled to maintain order, with the lobby manager sweating profusely.

His fists were clenched, his forehead veins bulging, and he was seething with anger with nowhere to direct it.

He had received the news later than others. When a large number of depositors arrived to withdraw their money, the bank staff noticed something was wrong and immediately investigated. By the time he was informed, the lobby was already packed with people.

After considering the situation, he chose not to intervene directly but instructed the lobby manager to maintain order and calm the customers.

Jia Hua Bank's cash flow was less than 20 million HKD, and the losses from gold futures amounted to 220 million HKD.

Once the newspapers reported Jia Hua Bank's misuse of funds, Liu Cansong knew things were dire. Even if he wanted to use means to shut down these third-rate tabloids, it was too late. Tomorrow, all of Hong Kong's newspapers would report the unfavorable news about Jia Hua Bank.

A run on the bank was inevitable, but how could they withstand less than 20 million HKD in cash?

If clients who bought gold futures came to demand settlement, it would be disastrous.

Compared to ordinary depositors withdrawing hundreds or thousands of HKD, those dealing with gold futures could be demanding tens of thousands to millions of HKD in settlement. With less than 20 million HKD, they couldn't hold out long.

He had considered borrowing, but no bank or company was willing to lend to him. Moreover, he was facing the risk of major corporate clients pulling their liquidity from Jia Hua Bank, which was equally alarming.

The more he thought about it, the more oppressive it felt, as if a tidal wave was about to drown him.

Soon, the lobby manager sneaked away and came to Liu Cansong, sweating and with a voice full of urgency. He said, "President, the situation is worsening. More and more people are coming to withdraw money, and our funds won't last long!"

Liu Cansong's face darkened as he nodded slowly. He took a deep breath and issued a difficult command, "There are just over ten minutes until closing time. When the time comes, shut down the windows and tell them to come back tomorrow."

The lobby manager's face changed, and he blurted out, "But this…"

Liu Cansong interrupted him, giving an authoritative order, "Do it!"

The lobby manager swallowed his words, nodding reluctantly, "Yes."

He then walked away with heavy steps.

Watching the lobby manager's retreating figure, Liu Cansong clenched his teeth and let out a powerless sigh.

He knew the downsides of closing early. But he also knew that if he didn't close, depositors would not believe Jia Hua Bank had sufficient funds and would withdraw all night. With less than 20 million HKD, they wouldn't last.

Moreover, he was aware that this afternoon's reports were only from a few third-rate tabloids. Tomorrow morning, major newspapers would definitely report on the situation, making the problem known to all of Hong Kong.

With the news fermenting overnight, Jia Hua Bank would be overrun by customers the next day. Nothing could be done now; the only solution was to secure enough money to handle the run.

But given the current situation involving embezzlement and massive losses, he knew that cautious banks and financial institutions would not lend him another penny.

Even reaching out to close friends would be increasingly difficult.

"Ah…"

This night was destined to be sleepless for both the Zhuang and Liu families. Despite their efforts, they couldn't borrow a single penny. Instead, their frequent borrowing only reinforced the newspaper reports' credibility.

Of course, this night also saw many depositors from Henglong Bank and Jia Hua Bank unable to sleep. With their hard-earned money at risk, how could they sleep?

Many people, clutching their passbooks, stayed up all night outside the main branches and sub-branches of Henglong Bank and Jia Hua Bank. This scene attracted a large number of reporters for photos and interviews.

It was expected that the next day, these explosive news stories would spread across Hong Kong and even Southeast Asia through the media.

The following day, the weather was clear.

As anticipated, newspapers, led by the Jiuding Press Group, reported extensively on the explosive problems at Henglong Bank and Jia Hua Bank. Citizens who hadn't known the news were shocked, especially depositors from the two banks, who turned pale and skipped work to go home and get their passbooks to line up for withdrawals.

Xia Yu saw a Henglong Bank branch in Kowloon crowded with people. The lobby was packed, and it was impossible to move.

Seeing such a scene, Xia Yu paused for a moment and then left with a mysterious smile.

Henglong Bank and Jia Hua Bank were doomed!

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**In the Tin Shui Wai area of Yuen Long, New Territories, Chen Qiang was rummaging through his home and finally found his term deposit passbook at the bottom of a box.**

Holding the passbook, he quickly ran out the door to the nearest Henglong Bank branch on Anning Road. He knew he was late and was afraid he wouldn't be able to withdraw his money if he delayed.

As for the interest on his nearly three-year term deposit, Chen Qiang had already dismissed it. He just wanted to get his principal back first. The interest he had once valued paled in comparison to the principal.

However, just as he was about to leave, he saw his neighbor, Uncle Chen Dashan.

Chen Dashan noticed his nephew's anxious expression and immediately asked, "Qiangzi, what's wrong? What happened?"

Chen Qiang stopped and hurriedly said, "Uncle, my money is in Henglong Bank. The newspapers say Henglong Bank misused funds and lost billions. I need to hurry and withdraw my money, or it'll be gone."

"I'm leaving now; I can't talk to you anymore. I don't have time. There are newspapers on the stool in my house; you can take a look yourself."

With that, Chen Qiang sprinted away, leaving Chen Dashan stunned.

"Wait! Henglong Bank is an old established bank. How could it be going bankrupt?"

Chen Dashan muttered to himself. He went inside, saw the newspapers on the stool, and immediately picked up the "Jiuding Daily," Hong Kong's largest newspaper.

After reading it, he sighed with relief, "It's a good thing I didn't deposit my money in Jia Hua Bank or Henglong Bank. I didn't expect such established banks to have problems. I hope Qiangzi can withdraw his money; it's his hard-earned savings."

But just as he finished feeling relieved, his face stiffened as a thought crossed his mind.

Some of his family's money was deposited in Kangnian Bank, a bank smaller than Jia Hua Bank and Henglong Bank. He had chosen it because it was closer and offered higher deposit rates.

Now, although Jiuding Bank offered the highest deposit rates in Hong Kong, his fixed deposit still had eight months to mature, so he hadn't transferred it.

Suddenly, he felt extremely uneasy.

If established banks like Henglong and Jia Hua are having problems and both are reporting billions in losses, what about a smaller bank like Kangnian Bank? Are they having issues with their funding chain too?

Although the newspaper didn't report it, it doesn't mean there isn't a risk, right?

The more he thought about it, the more unsettled he felt. Considering his 5,000 HKD in hard-earned savings, he began to worry.

Should he withdraw it?

If he withdraws it, he loses the interest accumulated over more than two years.

If he doesn't withdraw it, and Kangnian Bank also has problems, he might lose the principal.

After much hesitation, cautious Chen Dashan gritted his teeth and decided to go home, retrieve his passbook, and head to Kangnian Bank.

And because of the collapse of Henglong Bank and Jia Hua Bank, many like Chen Dashan chose to withdraw their funds.

At that moment, not only Henglong Bank and Jia Hua Bank were crowded, but many smaller banks also saw a surge in withdrawal requests.

This is the plight of small banks. They lack the trust of the public, and a storm can easily affect them.

In contrast, major banks like HSBC and Standard Chartered faced no such worries. Depositors had strong confidence in them.

Jiuding Bank, though new, also enjoyed good public confidence. Depositors trusted the bank of the stock god Xia Yu, knowing his substantial wealth and funds, so they were confident in depositing their money there.

The entire Hong Kong banking industry was affected. A tense atmosphere spread across Hong Kong.