Chapter 597: Consortium Formation

That evening, Xia Yu, accompanied by Li Qian and Li Wuming, went to Elena's house for dinner. Elena had purposely kept Xia Yu's visit a surprise, so when Henry saw them arrive, especially Li Wuming, his face lit up with joy. He practically bounced on his feet, unable to contain his excitement, and immediately pulled Li Wuming aside to show him the results of his hard work over the past month.

Henry had been diligently practicing martial arts every morning, hoping to impress his teacher, and now that Li Wuming was here, he was eager to showcase his progress. Xia Yu watched them with a faint smile, appreciating the boy's enthusiasm.

The next morning, Xia Yu received an unexpected call from Gerard Part, who had learned that Xia Yu was back in London. Gerard was eager to meet and invited Xia Yu to dinner at his home. Xia Yu, pleased by Gerard's proactive approach, accepted the invitation with a smile.

With that arranged, Xia Yu set off for the headquarters of the Chinese Mercantile Bank, where Wu Hongyi had asked him to come by to discuss the progress of forming the Chinese Business Consortium.

Arriving at the bank, Xia Yu went straight to Wu Hongyi's office. The door was slightly ajar, and he saw Wu Hongyi immersed in paperwork. He knocked lightly on the doorframe before stepping inside.

Wu Hongyi blinked to clear the strain from his eyes and looked up, instantly brightening when he saw Xia Yu approaching. Standing up quickly, he walked over with a grin.

"Xia Yu, it's been too long!" he exclaimed.

"Hongyi, it's only been a bit over a month since we last met, but you look like you've aged a year," Xia Yu joked, noticing the tired lines on Wu Hongyi's face. "Has the pressure been that bad?"

Wu Hongyi sighed and gave a weary smile. "The pressure's real, but it's mostly my own inexperience. I'm getting the hang of it now, though."

"You've done a great job," Xia Yu said sincerely, patting Wu Hongyi's shoulder.

Wu Hongyi's smile widened. "Thanks, Xia Yu. Honestly, I'm enjoying the challenge. The reward far outweighs the effort."

Xia Yu chuckled. "Glad to hear it. Why don't we sit down? I'd love to see how things are progressing."

"Sure, let me grab the documents," Wu Hongyi replied. He went over to a small safe in the corner, unlocked it with a key, and retrieved a thick stack of papers. Placing them on the coffee table in front of Xia Yu, he said, "These are the equity contracts from the companies that have agreed to join over the past month. We've settled on nine so far."

Xia Yu picked up the top contract and began reading through it carefully. As he read, Wu Hongyi prepared tea for them both, quietly observing Xia Yu's expressions.

The nine companies represented in the documents were diverse, spanning various industries, with each company occupying a different sector. These were to be the core companies of the future Chinese Business Consortium. Wu Hongyi had cleverly negotiated for shares in these companies in exchange for shares in the Chinese Mercantile Bank, rather than paying cash.

Shortly after Xia Yu had left London, the bank had completed its privatization, with a shareholding ratio of 60% for the Wu family and 40% for Xia Yu. The bank had a total share capital of 10 million shares, and the equity swap had involved issuing new shares, which allowed the Wu family and Xia Yu to maintain control without diluting their stakes too much.

The terms were straightforward: any company wishing to join the consortium had to provide shares worth more than those offered by the Chinese Mercantile Bank, ensuring neither the Wu family nor Xia Yu suffered any financial losses. This approach cleverly increased the bank's total share capital while boosting its overall value.

With each new member company, additional shares were issued, causing the original shareholders' percentages to decrease slightly. This continual increase in the bank's assets and value also meant the new shareholders benefited from the rise in value without having to pay cash up front, making the deal attractive.

Xia Yu admired the strategic finesse behind this model. "So, if I understand correctly," he began, "with every new company that joins, the total value of the bank rises, and so does its strategic importance?"

Wu Hongyi nodded enthusiastically. "Exactly. We've made sure that all working capital goes directly into the bank's accounts. The more companies that join, the more our bank becomes central to the consortium's operations. Our shareholdings drop only slightly, but the overall value and control we maintain increases significantly."

Xia Yu continued to review the documents, occasionally pausing to sip his tea and reflect on the contents. After reading the final contract, he looked up with a smile. "Hongyi, you've done an impressive job getting nine companies to sign up in just over a month!"

Wu Hongyi chuckled. "The market is on our side. I painted a very bright picture of the consortium's future to those executives. The only sticking point was negotiating the value and proportion of the equity swaps, but with the prospects of the consortium, they were eager to join."

He continued, "We're now in a position where we don't even need to reach out to companies. Word has spread, and businesses are lining up to join us. The door is practically being knocked down."

Xia Yu smiled, pleased with the momentum. He knew the situation was turning out just as he had hoped. Despite there being several banks founded by Chinese entrepreneurs in the UK, none were as established or reputable as the Chinese Mercantile Bank. The others were small players; only the Wu family and their bank had the clout to form a consortium of this scale.

Chinese businessmen in the UK had no other viable option. The British-dominated financial circles were inaccessible, and those who tried to enter would be swallowed whole. Essentially, the consortium was the only lifeboat for Chinese businesses in a competitive sea.

"Hongyi, at this rate, we should be able to formally establish the Chinese Business Consortium by the second half of this year," Xia Yu said.

Wu Hongyi nodded confidently. "Absolutely. We don't need to rush. Even with stringent vetting, I think we could screen a dozen more companies in the next two months. Once we have our core members, we can set up the consortium's management committee."

Xia Yu nodded, then recalled an earlier conversation with Ye Huanrong. "Oh, by the way, Hongyi, I'd like you to consider including Ye Huanrong's Rongye Company in the consortium. It has a lot of potential."

Wu Hongyi nodded, understanding the importance. "Rongye Company has already submitted an application. It's a bit smaller compared to the others, so it's currently lower on the list for review. But now that you've mentioned it, I'll prioritize it."

He knew Xia Yu had a stake in Rongye Company, and that Xia Yu's support made it worth a second look. Now, he would treat it as a special case.

"By the way, Xia Yu," Wu Hongyi continued, "I have some questions regarding the finer points of the consortium's structure. There are a few challenges I'd like your input on..."

Xia Yu nodded, ready to dive into the details. As they discussed, several Chinese businessmen arrived at the bank, hoping for an opportunity to speak with Wu Hongyi about joining the consortium. Xia Yu continued sipping his tea, content to let Wu Hongyi handle the talks.

Before long, the morning had slipped away. After a productive lunch at the Phoenix Building, Xia Yu decided to visit the Galaxy Fund's office to review the intelligence Liu Jiao and his team had gathered on the British business community.

By the time he arrived, the office was abuzz with activity. Liu Jiao greeted him with a report in hand, detailing their findings and insights into various investment opportunities. Xia Yu read through the documents, identifying potential high-yield investments and noting sectors poised for growth in the coming economic climate.

Liu Jiao, always observant, leaned in closer. "Boss, we've been following up on several leads regarding government policy changes and market fluctuations. There are a few opportunities that could yield significant returns if timed right."

Xia Yu listened carefully, appreciating the thoroughness of the analysis. "Good work, Liu Jiao. Keep monitoring these developments closely. The right opportunity is worth its weight in gold."

As Xia Yu continued reviewing the reports, he couldn't help but feel a sense of accomplishment. The foundations he had laid were starting to solidify, and the future looked promising. His plans were unfolding exactly as he had envisioned, and soon, he would be able to make his next strategic move. 

With a satisfied nod, Xia Yu stood up, ready for the next challenge. The game was just beginning, and he was determined to stay several steps ahead.