For HSBC to be formally established, it needed a charter from the Governor of Hong Kong, legislation to be completed in Hong Kong, and approval from the Britain Government. HSBC officially began operations in Hong Kong on March 3, 1865, but it did not receive its business license and charter from the Britain Government until August 14, 1866. This means that HSBC operated in Hong Kong for more than a year without any legal permits.
Despite HSBC's tremendous success in Hong Kong over the past year, it took more than a year to obtain its operating license. The main reason for this delay was the obstruction by Jardine Matheson.
Moreover, the founders of HSBC were various well-known Britain trading companies that did business in China. Several of them were rivals of Jardine Matheson, especially Jardine's nemesis, Jardine Dent & Co., which was also a major founder of HSBC. With their old rival at HSBC, Jardine Matheson naturally did not want to do business with HSBC.
John Dinty, the Dent & Co. of HSBC, felt that Jardine Matheson was maliciously obstructing the establishment of HSBC, so he took action. However, the tycoon's methods were not business strategies, but absolutely despicable means. Jardine could not stop the establishment of HSBC, so he just wanted to annoy Jardine.
When Jardine Matheson 'Big Brother David Jardine went to London to pressure the Britain Treasury in an attempt to prevent HSBC from obtaining a business license, Mr. John Dindie, without saying a word, threw a large sum of money at David Jardine's beautiful mistress in Hong Kong and took her to his bed.
Moreover, in the Hong Kong Cup horse race that year, John Denny spent a fortune to buy a thoroughbred horse and win back the Hong Kong Cup, which Jardine Matheson's CEO Lobo Jardine had won for several years.
HSBC Dinty, the then-head of Jardine Dent & Co.. and a typical man of strong character, used these two incidents to declare to Jardine, "You mess with my business, so I'll mess with your women and horses."
John Dindie's two misdeeds were widely discussed in Britain high society. He was indeed too arrogant and domineering. On the day HSBC opened for business without a license, he was holding the woman of the Jardine Big Brother, whom he had seduced with money, in his left hand and the thoroughbred horse that had snatched the Hong Kong Cup from Jardine Matheson in his right. The faces of the two Jardine Matheson Big Brother were swollen and green.
The most humiliating thing for a man is probably having his woman and his honor taken away.
Then Jardine, the king of foreign trading companies, sharpened his fangs, preparing to strike at the opportune moment.
Just as the United States Civil War ended in 1866, Cotton Crisis that shocked Europe erupted. Britain capitalists who had been speculating wildly on India Bombay during the United States Civil War, using it as a substitute for United States cotton, were the first to be affected. Dozens of established Britain banks were on the verge of collapse, and within three months, seven British banks declared bankruptcy. Three or four banks that had cross-shareholdings with John Dinton's J. Dent & Co.. were also on the verge of bankruptcy. Moreover, with the outbreak of the Cotton Crisis, the real estate bubbles in Bombay and Shanghai burst, and the prices of the large amounts of land that Dent & Co.. had stockpiled in Bombay and Shanghai plummeted.
At that time, almost no Britain bank or Britain company was unaffected. Only Jardine Matheson, with its foresight, judged that the United States Civil War would end soon and that this speculative feast was coming to an end. Therefore, it disposed of its cotton business and real estate businesses in Bombay and Shanghai early on, made a fortune, and left the market in advance. After extricating itself from this speculation, it began to transform its business and set its sights on China's railway and port businesses.
Many foreign firms and banks were burdened by debt and on the verge of bankruptcy. Among them was Dent & Co. Firm, the main founder of HSBC, who had slept with the woman of the Jardine Big Brother and stolen his trophy six months earlier.
In desperation, Bao Shun, along with several other foreign firms, sought help from Jardine Matheson, whose coffers were already overflowing with profits.
Song Tianyao speculated that the scene when John Dindie might have gone to Jardine Matheson for help back then was probably as follows:
John Dinner burst into tears, sobbing, "Brother, lend a hand! We came to the East together back then, we have a deep friendship."
"You son of a bitch! When you slept with my woman and stole my trophy, where were you to talk about deep friendship?" Lobo Jardine sneered. "Want my help? Hand over your woman so I can sleep with her, then give me back the trophy."
John Dindie immediately replied, "My woman and the trophy are outside; I brought them a long time ago."
After Lobo Jardine finished enjoying himself, he looked refreshed, a toothpick dangling from his mouth, and said, "Even the richest man has no surplus grain. How about this, you transfer that Fourteen K shipping route on the Yangtze River to me, and I'll consider helping you through this difficult time."
Then John Dindie immediately offered. "One hundred dollars for four ships and one shipping route, I'll sell it to you right away."
"Didn't I tell you even the landlord's family has no surplus grain? Twenty yuan."
"F*** you! You're cutting my flesh!" John D. cursed, then immediately added cheerfully, "Deal!"
"I'll think about it for another two months. I only have five yuan in my pocket right now. Here, take five yuan. That flight route is mine now. Use the five yuan to buy a steamed bun first, and then I'll go spend some time with your wife."
"I'll fucking kill you! If I ever get another chance, I'll definitely kill you!" John Din watched Lobo Jardine walk away with his wife, then looked desperately at the five dollars on the ground. Five dollars wasn't enough to buy a steamed bun and get through the crisis.
Then, there was no chance for him to kill his rival. John Jardine and his Dent & Co. went bankrupt because Jardine refused to come to their aid. The newly established HSBC lost its most important pillar and was in a precarious situation. Jardine wanted to take advantage of the crisis to wipe out HSBC and force it into bankruptcy and closure.
However, the Britain Treasury, the Hong Kong Colonial Government, and even the other founders of HSBC all realized that if HSBC collapsed, Jardine Matheson would truly have absolute control over Hong Kong and China, and the Britain Government itself did not want to see Jardine in a completely unrestricted state.
Therefore, with the help of three parties, HSBC was able to barely catch its breath and avoid following in the footsteps of Dent & Co..
HSBC also began to realize that it could not openly oppose Jardine Matheson like John Jardine did, but instead had to cultivate a good relationship with him. So, starting in 1866, it frequently extended olive branches, inviting Jardine to invest in HSBC. However, Jardine remained arrogant until 1877, when HSBC was indeed worthy of being taken seriously by Jardine Matheson, and the two sides began to cooperate.