Chapter 280: HSBC Support and the Water Storage Stations
Governor Blackie was efficient. Just three days later, Yang Wendong received a call from the Water Supplies Department, informing him that they could arrange a team to discuss a cooperation plan.
Naturally, Yang didn't attend the technical meetings himself — he knew nothing about pipelines. Instead, he assigned an expert from Changxing Real Estate with experience in pipeline infrastructure, along with a few staff members from the Changxing Charity Foundation, to go meet the government officials. His role was simply to approve plans and provide the funding.
However, there was someone else Yang did need to meet in person.
Inside a presidential suite at the Peninsula Hotel, Yang met with HSBC's new Chief Manager, Sanders.
"Mr. Sanders, good to see you," Yang greeted him with a polite smile.
"Hello, Mr. Yang," Sanders nodded. "I heard your Four Seasons Hotel has already broken ground. It looks like by next year, we'll be able to meet in your new property instead."
"Haha, that's right. Kinmen Construction is moving fast — we expect to be operational by the end of next year," Yang replied. "The Four Seasons will be focused on protecting client privacy and preventing press intrusions. We look forward to welcoming more business professionals."
In Hong Kong, many businessmen preferred to hold meetings in hotels. Even locals would often choose a hotel for privacy and comfort. The wealthier the individual, the more likely they were to use premium venues — even presidential suites.
According to rumors, decades later in the 1990s, Li Ka-shing would finalize a pivotal stock transfer of Wharf Holdings to Bao Yugang in a presidential suite at the Mandarin Oriental.
Since tourism hadn't fully developed yet in this era, the business market for high-end hotels was extremely important. Yang intended for the Four Seasons to focus heavily on this segment in the future.
"That would be ideal. I'm tired of coming to the Peninsula all the time," Sanders laughed. Then he added, "By the way, the Governor spoke to me about your water transport plan yesterday. I must say, I'm curious — Mr. Yang, are you really so confident this drought will last a long time?
If a few typhoons come through this summer and bring rain to Guangdong, the crisis might be over. And then what? You'll be stuck with all those old cargo ships and suffer a major loss."
Hong Kong had little natural water storage. Even if typhoons hit, they might only provide temporary relief. But Guangdong was different — it could retain rainwater. Once the region recovered, it could easily resume supplying Hong Kong, and the government would no longer need to spend large sums chartering ships to fetch water.
Yang smiled. "Personally, I'd rather the drought end quickly. My real estate and manufacturing businesses are both being affected, and whatever profits I make from water transport may not even cover those losses.
More importantly, I'm bullish on the long-term potential of the maritime industry. So even if the water business doesn't pan out, I don't believe I'll lose money overall."
Different messages for different audiences.
With the Governor, he'd emphasized his civic responsibility — how he was helping the people of Hong Kong and easing the government's burden.
But now, sitting with a banker, Yang spoke the language of business and risk management. Sanders didn't care about the public good; he cared about balance sheets.
Sanders smiled, clearly pleased. "That's a great perspective. I'm also optimistic about the future of shipping. Still, Mr. Yang, you're buying a lot of second-hand ships. Your future operating costs will be quite high — that's the part I find hard to overlook."
"I understand that," Yang nodded. "That's why I'm building a shipyard and repair facility in Junk Bay. It'll allow me to service and maintain my fleet more efficiently, minimizing future problems."
Using second-hand assets was always risky. Whether it was shipping, aviation, or even car rental fleets — companies looking to scale had to use new equipment eventually.
But the next five years would be different. Yang knew what was coming — the Middle East crisis that would make even the oldest, most rusted ships incredibly valuable.
In five years, he wouldn't have time to build a new fleet. Buying second-hand now was the fastest, most effective approach.
Still, to someone like Sanders — a conservative banker — Yang's business model seemed erratic. If Yang didn't have other thriving industries, HSBC might not even have considered supporting him.
Sanders said, "Well, we don't usually interfere with our clients' business models. And given the support you've provided to the colonial government, HSBC is, of course, happy to help."
"Thank you," Yang replied with a smile.
By leveraging the water crisis, Yang had managed to justify buying dozens of second-hand ships — and now he had HSBC's backing. It was a win on multiple fronts. Otherwise, he would've had to spend a significant portion of his own capital to make these purchases.
Buying new ships, even with bank support, would take too long — and time was of the essence.
"We'll discuss interest rates and loan limits with your team at Changxing Shipping later," Sanders said. "But Mr. Yang — beyond shipping, HSBC would be happy to cooperate in other sectors too."
"Of course," Yang nodded. "We can also collaborate on real estate."
Changxing Group had a clear strategy: work with Chinese banks on stable real estate deals, British firms on shipping, and Japanese banks on new vessel financing. It was a carefully balanced plan.
Banks competed fiercely for high-quality, low-risk corporate clients. And Yang's growing empire was exactly that.
Since HSBC had already done a lot for him in shipping, Yang was more than happy to return the favor.
"Great," Sanders said. "I also heard that you're planning to build a large museum in Hong Kong?"
"Yes. Is HSBC interested in that project as well?" Yang asked with a raised brow.
Word of the museum was already spreading — it was impossible to keep such a project under wraps. Though the site and size hadn't been finalized, someone like Sanders was bound to know.
He smiled. "Yes. Even if the land is sold at a discounted rate by the government, if it's a big enough site, the total cost will still be high. Then there's construction, operations… surely you don't intend to cover everything yourself?"
"Certainly not," Yang replied. "I'll need bank financing for that as well. Once my team finalizes the plans, I'll reach out to you."
A museum of that scale, especially one located near Admiralty, would require a massive investment. Yang had yet to decide which bank to approach — but Sanders' offer tipped the scales.
"Perfect," Sanders nodded. "But I do hope some of HSBC's history will be included in the museum's exhibits."
"Of course," Yang said readily. "HSBC is a major part of Hong Kong's history. And your name, Mr. Sanders, will certainly be featured in a few chapters as well."
It was clear — once someone no longer worried about money, they began to care about legacy.
If his name could be etched into history through meaningful action, Sanders wouldn't mind spending a bit of money — not that he had any shortage of it.
And in this case, it wasn't even his personal funds, but HSBC's resources being used to exchange for legacy.
"Haha, thank you," Sanders said with a pleased nod.
There were things he couldn't state outright, so he did it under the banner of "HSBC's interests." Yang Wendong clearly understood the unspoken rules.
After the meeting with Sanders, Yang returned to Changxing Tower — and happened to run into Zhao Liming and Lin Haoyu, who had come to find him.
"How did the discussion with the Water Supplies Department go?" Yang asked immediately.
Though he had also ensured that he gained some benefit in this whole drought relief initiative, the primary purpose had always been to help the people. Everything else — including using the project to build goodwill or leverage for future negotiations — was secondary.
The most pressing issue at hand was pipeline construction. Yang already knew the drought had only just begun. In a few months, tens or even hundreds of thousands of people in Hong Kong would face the worst of it.
In historical records, it was noted that when rationing was at its worst, what started as four water deliveries per day quickly became one every four days — and even then, water often failed to arrive.
Washing up became a luxury, and drinking water was sometimes out of reach entirely. The poorer someone was, the more they suffered. Even if they queued up and got water, the time lost meant lost income — which in many cases equated to lost meals.
Lin Haoyu responded, "Dong-ge, the Water Supplies Department moved really quickly. They've already mapped out plans to divert a dozen lines from existing water mains to areas near squatter settlements in Tsim Sha Tsui, Kwun Tong, Kwai Chung, and Kowloon Bay.
Our side will construct storage stations at these points. Water will be released during the day and stored at night. We'll also install queuing systems to maintain order."
"Good," Yang nodded. "But are they handling the routing of the pipeline segments?"
The most complex part of laying pipelines was the underground installation — especially when going under roads, through residential areas, or near existing buildings.
Compared to simply building an endpoint water station, laying new pipes was far more troublesome. That was exactly why Yang couldn't do it all on his own.
"I asked them about that," Zhao Liming said. "They said it's not a problem. I was worried at first, but they seemed confident — I didn't press further."
Lin added, "Dong-ge, I actually have an idea. Why not have Oriental Daily or Hong Wah Daily run a report on this project? Include the completion timeline too.
It'll serve two purposes. First, it spreads the word so nearby residents know where the new stations are — even if they don't read the paper, word will get around.
Second, it'll put some pressure on the Water Department. Once it's public, they won't dare drag their feet."
"Not a bad idea," Yang chuckled. "Alright, I'll have Qin Zhiye handle it. We'll make sure it gets proper coverage."
If this had been a confrontational issue with the colonial government, Yang would've turned to Ming Pao and Jin Yong instead.
But in this case, the coverage would actually cast the government in a positive light — once the water stations were complete, the drought's intensity would ease, and public criticism would lessen.
The only risk would be if the stations weren't finished on time, in which case the media pressure could backfire.
"That works," Lin said with a smile. "And the distances aren't too great. Most of the land near the squatter zones hasn't been developed. If the Water Department is willing, it should be easy."
Zhao added, "Yeah, if it weren't for the lack of legal authority, we could've done it even faster ourselves."
"Forget about authority," Yang said with a wave of his hand. "What about the design of the water stations? Got a plan yet?"
Lin answered, "Yes. We spoke with the team from Kinmen Construction. They recommended excavating large pits directly on site, lining the bottoms with waterproof material — sort of like shallow pools — with a larger-than-average volume. We'd then install water distribution equipment to draw from the reservoir and release it as needed."
Yang thought for a moment. "That means the water can't sit for too long — otherwise it becomes stagnant and undrinkable."
Flowing water can be preserved for a long time, but standing water in a large tank will turn quickly, especially in heat.
"Exactly," Lin said. "That's why the Water Department recommends limiting each station's reservoir to 200 or 300 cubic meters. Since water is piped in daily, we don't need massive storage."
"300 is too little," Yang said after thinking. "Make it a thousand cubic meters. If needed, buy a few air compressors and pump oxygen into the tanks to keep the water fresh."
That would be a backup solution. One thousand cubic meters was a lot — but the real problem wasn't tank size, it was water availability. Still, having large tanks would allow them to stockpile water when it was available, which could make a huge difference in a crisis.
With rationing, they could at least guarantee drinking and cooking needs. Showers and laundry? That was simply out of the question.
Zhao said, "Dong-ge, if we go with that size, we'll need quite a bit of land — between the reservoir, queuing areas, control facilities, and housing for staff and equipment, it'll be a big site. That's a serious investment."
"Don't worry about the money. I'll inject the funds," Yang replied. "This qualifies as a public infrastructure project. I'll have Changxing Real Estate negotiate with the government for discounted land."
If it involved land acquisition, any charity investment made today could be recouped through property appreciation tomorrow.
Even if it was industrial land, after the drought ended, it could be rezoned as commercial. At worst, it could be converted to light industrial offices — still profitable before the next big crash in the mid-80s.
"Perfect," Lin said with a grin.
Helping tens of thousands of people access clean water was a point of real pride for them. To play even a small part in that was an honor.
A short while later, Yang called in Zheng Zhijie and explained the new plan.
"You can count on me, Mr. Yang," Zheng replied. "This affects the livelihood of countless people — I'll make sure it's done right."
"Good," Yang nodded. "From now until the drought ends, Changxing Group will do everything it can to help the vulnerable."
"Understood," Zheng said. Then he added, "Mr. Yang, if I may — a large-scale water supply station like this is actually a fantastic real estate investment.
Given the government's usual policies, land for public-use projects is cheap, and legally, they welcome social enterprises to contribute."
"We don't need to over-invest," Yang said, shaking his head. "We'll build according to demand. There are plenty of chances to invest in real estate elsewhere."
"Got it," Zheng nodded.
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