The Wealth Empire Crossing the Hong Kong

Chapter 509
After Li Jianhui met with the person in charge of First Citigroup Xiangjiang, his heart was quite heavy, and the butterfly effect he set off was getting bigger and bigger.

In the previous life, the U.S. dollar depreciated on a large scale after the Plaza Accord, and there are still three full years from this time.

Unexpectedly, in this life, the other party planned to depreciate on a large scale so early in order to promote the appreciation of the currencies of several major countries.

With the development in the past few years, the main production industry of Xiangjiang is not in Xiangjiang, and more of them are investing in various places with their capital. The appreciation of the Hong Kong dollar is good for companies like them.

Of course, in a disguised form, it will also increase the production costs of Xinjian’s computers, mobile phones, chips, etc., but in general, the appreciation of the Hong Kong dollar will have huge benefits for Xinjian and even Donghua Club.

And with preparations, they can reduce their US dollar foreign exchange holdings in advance and increase foreign exchange such as Japanese yen, British pound, and Mark to avoid large losses to their own assets.

It’s just that he is still not sure whether this is true or not. He is afraid that Citibank will put a smoke bomb on him. Once they adjust their positions on a large scale, the dollar will go in the opposite direction, and Xiangjiang’s economy will be hit hard.

In order to avoid heavy losses for himself, Li Jianhui deliberately contacted Wei Li, Zhou Pengfei and others to ask them to pay close attention to the monetary policies of various countries and report any situation in time.

At the same time, a new order was issued to the Xinjian companies, and the profits do not need to be converted into US dollars for the time being. In the future, the Xinjian companies will mainly use Japanese yen as their main funds.

Li Jianhui doesn't care whether the U.S. dollar will depreciate significantly. It is definitely not wrong to choose the yen during this period. Even if the yen does not appreciate significantly, at least there will be no significant depreciation.

As for the issue of the HKMA’s foreign exchange fund, Li Jianhui only briefly mentioned it to Financial Secretary Wilms, asking him to focus on the policies of the British Treasury and the Bank of England. Once there is a sign that the dollar will depreciate significantly, the HKMA will It is necessary to adjust the position in time.

As for Wilms’ mention of the peg between the Hong Kong dollar and the British pound again, Li Jianhui objected without thinking.

Fortunately, Li Jianhui insisted on his idea. He didn't know that the British government, considering the current domestic economic situation, also intends to promote the depreciation of the pound, so that British products can be more competitive in the Commonwealth market and even the global market.

It is estimated that Japan and the Federal Republic of Germany will suffer the most this time. Once these two countries are coerced by Britain, the United States and France, the export of products produced locally in the two countries will be severely hit.

And they are not like Xiangjiang. Xiangjiang is doomed to become an industrial product production center because of the development model.

Costs have increased, and these production companies have directly transferred to the mainland and Southeast Asia. Anyway, Heung Kong companies have been doing this for the past few years. Heung Kong mainly focuses on financial services and technology research and development.

Once the Hong Kong dollar in Hong Kong appreciates sharply, Li Jianhui will inevitably place the production of computer mobile phones, chips, displays (screens), and printed circuit boards in the mainland and Taiwan.Xiangjiang will only leave the R&D department.

In fact, Japanese companies will be quite successful in this aspect in the future. Although Japan’s GDP has stagnated for more than [-] years, its overseas assets and profits have continued to increase. This is why Japan was willing to sign the Plaza Accord at that time. one of the reasons.

Japanese capital goes out to form joint ventures with local companies, or directly invest in local industries. The appreciation of the yen is of great benefit to them.

It's a pity that Japan messed up internally, failed to guide domestic assets well, and failed to curb the bubbles in the stock market and property market. Therefore, under the impetus of the American consortium, huge problems appeared in the internal economy.

But there is one thing to say, Japan’s overseas development strategy is quite successful, especially in Southeast Asia and the mainland market. I don’t know how many companies are backed by Japanese capital. While these companies are developing rapidly, Japanese capital is also making huge profits.

In fact, the capital here in Heung Kong needs to learn this more urgently. While the company is going global, the capital must also go out. Only in this way can Heung Kong Capital develop and grow.

Li Jianhui didn't only care about himself, he also informed these allies under the East China Association of the news, hoping that each of them could prepare in advance to avoid too much loss for himself.

"Jianhui, how credible do you think the sharp depreciation of the dollar is?"

Facing Li Guobao’s question in the private room of Xinhui Hotel, Li Jianhui responded: “The depreciation of the U.S. dollar is an inevitable result, otherwise the U.S. economy will experience major problems. Clear.

This time, Citibank specifically informed me of the news. I guess the other party intends to promote the appreciation of our Hong Kong dollar, and its purpose is to reduce the competitiveness of our products overseas.

The only thing I don’t understand is that Hong Kong is different from Japan. We are not a manufacturing economy. The other party’s push up the market value of our Hong Kong dollar will not cause us too much trouble, but it will be of great benefit to our overseas development. . "

Li Guobao on the other side also pondered. As an elite in the financial industry, he sees farther than Li Jianhui in this regard.

Not to mention other things, the Hong Kong dollar continues to appreciate, Hong Kong will inevitably attract more hot money to enter, and the stock market will inevitably usher in a surge.

It will inevitably increase the cost of Xiangjiang products, and will also have an important impact on Xiangjiang's import and export trade.

The appreciation of the Hong Kong dollar also means that overseas profits will decrease relative to the Hong Kong dollar, and some companies may suffer heavy losses.

Of course, there are many benefits. For example, the price of imported products in Xiangjiang will be reduced due to the appreciation of the Hong Kong dollar. If wages do not fall, the lives of Hong Kong residents will be easier.

"Jianhui, I think it is necessary for your Political and Economic Research Office to carefully study the advantages and disadvantages of the appreciation of the Hong Kong dollar for us and Hong Kong's economy, and at the same time, we must strictly prevent US capital from sniping in the back.

It is only the first step for the other party to force the appreciation of local currencies, and there will be more actions in the future. Those giants will definitely not want to see all parties carve up their global markets. "

Subsequently, Feng Jingyao, Guo Zhiquan and others also expressed their views. As for whether the appreciation of the Hong Kong dollar is good or bad, they still dare not make a conclusion.

Fortunately, there is still time. The dollar cannot be depreciated sharply at once. They can also comprehensively consider the pros and cons.

At the same time, they also confirmed that they want to push the HKMA to reserve some gold and attach the value of the Hong Kong dollar to several major foreign currencies. This is irresponsible to the entire Hong Kong citizens, and it also prevents them from taking the initiative.

It is even more urgent to promote Xinjian Bank to obtain the right to issue banknotes in Hong Kong dollars. They hope to have a say in this, instead of being monopolized by British banks like they are now.

Whether it is pegged to the U.S. dollar or the British pound, it is not very reliable. It is necessary to add multiple currencies and gold to make the Hong Kong dollar relatively stable.

(End of this chapter)