Chapter 166: Securities Company Signing, the Archer Becomes a Stock Market Hunter
At dawn, while Lu Qingjun was still half‑asleep, Lu Qingshan pulled him out the door.
He hadn't slept well the night before, and his mind was full of thoughts about the Hong Kong Island stock market.
The experience he had studying stocks in his previous life told him that now was a perfect time to enter the market.
"Mr. Zhang, I'd like to learn about the stock trading situation on Hong Kong Island," Lu Qingshan said bluntly to Zhang Zhihua.
Zhang Zhihua was waiting for them in the hotel lobby; his eyes lit up at the words: "Lu, you're interested in stocks? That's a good omen. People on Hong Kong Island say 'the horses keep running, the dances keep dancing, the stocks keep trading'; stock speculation here is as ordinary as eating."
The three of them got into a taxi, and Zhang Zhihua introduced as he drove: "Hong Kong Island now has four major exchanges—the Hong Kong Island Securities Exchange, the Far East Exchange, the Gold and Silver Securities Exchange, and the Kowloon Securities Exchange. Each has its own characteristics."
Lu Qingshan felt a stir; in his previous life he knew these four exchanges would later merge into the Hong Kong Stock Exchange, but for now they operated independently.
The British Hong Kong government doesn't care how Hong Kong Island develops; it only cares how much capital Hong Kong Island can reap for the British Hong Kong government in Place.
The four exchanges have not yet unified trading, meaning the price of the same stock or futures may differ across exchanges, offering many arbitrage opportunities.
"What are the differences among these four exchanges?" Lu Qingshan asked.
"The Hong Kong Island Securities Exchange is the oldest, mainly controlled by Yingzi companies, and lists only large corporations. The Far East Exchange has a Chinese‑capital background and is more flexible. The Gold and Silver Securities Exchange specializes in precious metals and futures. The Kowloon Securities Exchange is the smallest in scale but the most vibrant," Zhang Zhihua recited like a familiar tale.
Lu Qingjun, listening from the side, was confused: "Second brother, what exactly are stocks?"
"Simply put, you buy a company's shares; when the company makes money you receive dividends, and when the share price rises you profit from the difference," Lu Qingshan explained, while his mind was already calculating other matters.
The car first arrived at the British Hong Kong Hong Kong Island Securities Exchange in Central. It was a modern building of over twenty floors, with a constant flow of people at the entrance, all financiers in suits.
Stepping into the Trading Hall, Lu Qingshan was stunned by the scene. Massive electronic screens were packed with stock codes and prices, red and green numbers flickering nonstop. Traders shouted bids into phones, their notebooks crammed with notes.
"This is the heart of Hong Kong Island finance," Zhang Zhihua said, pointing at the bustling Trading Hall, "tens of billions of Hong Kong dollars flow here every day."
Lu Qingshan carefully watched the price trends on the screens, his past‑life memories surging. He recalled a major crash in the Hong Kong Island market in 1982, followed by a rebound in 1983. Entering now would let him buy at the bottom.
"Mr. Zhang, can mainland people open an account here?" Lu Qingshan asked in a lowered voice.
Zhang Zhihua glanced around and also lowered his voice: "It's possible, but the procedures are complicated. You need a guarantor from Hong Kong Island and proof that the source of funds is legitimate."
"If I want to open an account, can you help?" Lu Qingshan stared directly into Zhang Zhihua's eyes.
Zhang Zhihua was taken aback by that gaze, a look of absolute Confidence, as if he already saw through the market's future.
"I have some connections here, I can give it a try. But first tell me, how much money are you planning to invest?"
Lu Qingshan quickly calculated in his mind. He had roughly 200,000 yuan in cash, which at the current exchange rate could be turned into 60–70 thousand Hong Kong dollars. Not a huge sum, but enough for some small‑scale investments.
"Let's start with 50,000 Hong Kong dollars as a test," Lu Qingshan said.
Zhang Zhihua's eyes flashed with surprise: "Lu, are you sure? The stock market carries risk, especially since mainland investors are unfamiliar with the local conditions."
"I know what I'm getting into," Lu Qingshan replied, his tone firm.
After leaving the Hong Kong Island Securities Exchange, Zhang Zhihua took them to the Far East Exchange. The atmosphere was noticeably different, with mostly Chinese faces and Cantonese and Mandarin intermingling.
"This place is mainly Chinese‑capital firms and is friendlier to mainland people," Zhang Zhihua explained, "and the procedures are relatively simpler."
Lu Qingshan toured the Far East Exchange and found that stock prices there were generally cheaper than at the Hong Kong Island Securities Exchange. He silently noted a few stock codes, planning to study them back home.
In the afternoon, the three arrived at the Kowloon Securities Exchange. It was the smallest of the four, but its location was unique, situated directly beneath the flight path of Kai Tak Airport.
As they were about to enter the Trading Hall, a massive roar came from above. Lu Qingshan looked up to see a huge Aircraft skimming the roof; the shock made his blood boil.
"That's a feature of Kai Tak Airport," Zhang Zhihua said with a smile, "when a plane lands it passes over the roof. It startles at first, but you get used to it."
Lu Qingshan stood by the window, watching plane after plane roar overhead every few minutes. Those Aircraft carried merchants and capital from around the world, converging, colliding, and blending on this tiny Hong Kong Island.
"Qingjun, did you see that?" Lu Qingshan said to his younger brother, pointing at the Aircraft outside, "These planes represent opportunities worldwide. Today we stand here watching planes; someday we'll be aboard our own, flying around the globe."
Lu Qingjun was inspired by his second brother's words and nodded vigorously: "Second brother, I believe you can do it."
At the Kowloon Securities Exchange, Lu Qingshan observed the price movements all afternoon. He found the stocks here more volatile, suitable for short‑term trades. And because of the small scale, some news spread more slowly, giving him extra maneuvering room.
In the evening, Zhang Zhihua took the two brothers to a cha‑chaan teng for a meal. During the dinner, Lu Qingshan formally made his account‑opening request.
"Mr. Zhang, I'd like to open accounts at both the Hong Kong Island Securities Exchange and the Far East Exchange," Lu Qingshan lifted his tea cup, "If this can be arranged, I'll never forget your kindness."
Zhang Zhihua thought for a moment: "How about this—I have a friend who works at a securities firm; tomorrow I'll take you to meet him. But to be blunt, the account‑opening fees are high, and every transaction incurs a commission."
"Every penny that should be spent will be spent, every penny that should be earned will be taken!" Lu Qingshan declared grandly, "Mr. Zhang, count on it—I, Lu Qingshan, will carve out a realm in the Hong Kong Island stock market!"
The next morning, Zhang Zhihua brought the Lu brothers to a securities firm in Central. The firm was modest in size but had a good reputation within the Chinese community.
The securities company's manager was a man in his forties, surnamed Huang; upon hearing that Lu Qingshan was a mainland investor, he was very enthusiastic.
"Mr. Lu, the Hong Kong Island stock market is perfect right now," Manager Huang presented a stack of materials, "Look at these companies; they're all potential stocks."
Lu Qingshan wasn't swayed by the sales pitch; instead he carefully asked about the specific procedures and fees for opening an account. After some haggling, the account‑opening plan was finalized.
By the time the paperwork was done, it was already afternoon. Lu Qingshan held the account certificates from the two exchanges, feeling a mix of emotions. It meant he had officially entered Hong Kong Island's capital market, and would now compete side‑by‑side with the world's sharpest investors.
"Second brother, are you really going to trade stocks?" Lu Qingjun asked, still a bit worried, "What if we lose money?"
Lu Qingshan looked out at Victoria Harbour, the sun setting, the sea glittering. Distant skyscrapers glimmered in the sunset, like piles of gold and silver mountains.
"Qingjun, remember this scene today," Lu Qingshan said softly yet powerfully, "In ten years, when we have built taller towers in Shenzhen City than here, you'll understand how important today's decision was."
The sea breeze blew, bringing salty sea scent. Lu Qingshan inhaled deeply, his eyes flashing with an unprecedented light.
The Hong Kong Island stock market—here I come!
End of Chapter
