God-level Trader of Rebirth

Chapter 31 The Thai Baht Sniper Battle

"You don't go out and have a look. The competition in Xiangjiang's telecommunications industry is too fierce now. There are seven or eight in Central." Lin Zeju stood in front of the floor-to-ceiling windows and complained, pointing outside.

"Fierce competition shows that the market has this demand. Have you ever considered paying a monthly subscription?" Chen Weidong was amused by his appearance.

"It's not going to work. A monthly subscription will not only affect profits, but also there are too many people surfing the Internet, and the bandwidth may not be enough during peak hours." Lin Zeju continued to explain.

He had worked as a manager in a telecommunications company affiliated to the group for two years, so he still has a certain understanding of this aspect.

It's not that they don't know the benefits of opening monthly subscriptions, but that the backbone infrastructure can't keep up.

"The whole Xiangjiang is only so big. I personally donate 10 billion to help Xiangjiang's network speed up!" Chen Weidong said with a final word.

"Then it's up to you." After some consideration, Lin Zeju finally agreed to the plan.

He is not an idiot either, if the network can be subscribed monthly, users will have more time to spend on the network, then the biggest beneficiary is the infinite company that owns the instant messaging software.

The advantages outweigh the disadvantages. Anyway, sooner or later, there is nothing to object to.

In the 90s, it was definitely a very luxurious thing to be able to surf the Internet without any worries about Internet fees.

It is precisely because of this that when the telecommunications company under the Yellow River Group launched a monthly Internet subscription package, countless people began to truly feel the charm of the Internet, and they have been deeply involved in it since then, unable to extricate themselves.

The appearance of Chen Weidong only brought this process forward.

1997, early May.

The economic overheating brought about by the boom in real estate has directly pushed up the Hang Seng Index.

It soon broke through the 15000-point mark, and the stock market was extremely hot because of this, and the trading was frantic. Unknowingly, it entered the era of the so-called "shark's fin soaked rice"
Antlers Building, nine floors.

Infinity private conference room.

"Mr. Chen, the market is very enthusiastic. Many outside experts say that the market will reach [-] points this time." The manager of the personnel department said excitedly.

The market has been doing well recently, and he has also bought some stocks himself, which has made him a lot of money.

"Hehe, Lao Zhang, the market is overheated, and I feel that it will soon pull back." Feng Yiwen is obviously not a half-hearted guy like Lao Zhang, and soon smelled the danger.

"I also think it should rise to at least 2 points and then pull back. The latest economic data shows that Xiangjiang's economic growth is very rapid this year, and we can still be optimistic." One of the analysts said.

"There's not much correlation between real economic data and the stock market. I don't think so."

"No, it should be"

Everyone in the conference room held their own opinions, everyone had a different opinion, it was noisy, like a vegetable market.

Chen Weidong sat silently in his seat, not knowing what he was thinking.

Gradually, when everyone stopped talking and looked at the position together, Chen Weidong finally said: "Withdraw all unnecessary funds, and don't buy Hong Kong stocks in the near future."

"Here, Mr. Chen, we have a few stocks, and we have just deployed funds into them. If we withdraw them like this, it would be a waste of time." The director of the fixed income department said cautiously.

Their department is mainly in charge of some less risky varieties and is very dependent on the general market trend. Now that the stock market is rising steadily, it would be a pity to withdraw like this.

"The stock market is not far from a crash now, and it will not be more than two months at most."

"Never eat the last bite, or you will be left to pay the bill if you are not careful." Chen Weidong warned with some seriousness.

Hearing these words, the hearts of everyone present were shocked.

No one dared to refute, and no one dared to ask why there was a crash and where was the basis.

Because this year, Chen Weidong's countless predictions have succeeded, with an accuracy rate of 100%!

He said that if the stock market is going to crash, something bad must happen.

See everyone has no objection.

Chen Weidong added: "The next thing we have to do is to exchange all the money for"

at the same time.

New York, Wall Street.

Inside Soros' office.

"George, can we do it now?" Rodri Jones, the chief trader of Quantum Fund, asked.

"How much baht have we borrowed?" Soros asked while lying on a chair.

"About 1400 billion, plus Tiger Fund and other institutions, it should be close to 3000 billion." Jones replied after thinking for a while.

"Very well, tell them to start squeezing the foam for Thailand."

Soros issued orders, and the Quantum Fund, which had accumulated chips for several months, finally launched a fatal attack on the Thai baht again.
1997, mid-May.

Thailand.

A number of foreign financial institutions released reports stating that the current asset price bubble in Thailand has become very obvious.

Many real estate developers are having trouble paying interest, but banks still find more dollar loans for developers...

1993~1996年，泰国的房地产价格上涨了近400%，SET指数也在1996年1月最高冲到1410.33，达到历史高位.
According to statistics, in June 1996, the non-performing assets of Thai commercial banks had reached 6 trillion baht, and the non-performing asset ratio was as high as 1.78%.
Since the Thai baht is pegged to the U.S. dollar, the appreciation of the U.S. dollar caused the Thai baht exchange rate to continue to rise, resulting in setbacks in Thailand's exports and a slowdown in economic growth. In 1996, Thailand's GDP growth rate was only 5.65%.

Thai baht may depreciate by 40%
The Thai baht may be de-pegged from the dollar.
Numerous news that are difficult to distinguish between true and false suddenly appeared on the market, catching the Thai people by surprise.

Immediately afterwards, Thailand's stock market, property market, and foreign exchange market began to shake...

at the same time.

Quantum Fund began to sell Thai baht in exchange for U.S. dollars. The spot exchange rate of Thai baht broke through the exchange rate floating limit stipulated by the Bank of Thailand many times, causing strong panic in the market.

The Thai baht once depreciated against the US dollar to 27:1.

In order to prevent international hot money from continuing to obtain Thai baht, and in response to the civil run, Thailand ordered financial institutions to suspend operations.

But what they didn't expect was that this order unexpectedly deepened the public's distrust of the banking system, causing panic to spread rapidly and comprehensively!
The gates of countless banks are crowded with people. They all feel that the Thai baht is about to collapse, and it is safer to exchange it for US dollars.

The public lacked confidence, a large amount of funds fled from the financial market, and even the stock market was affected, triggering an unprecedented plunge.

Facing the menacing and well-prepared international speculators, Thailand finally couldn't sit still.

A three-pronged strategy was immediately adopted.

In order to maintain a fixed exchange rate (25:1) of the Thai baht to the US dollar, they did not hesitate to spend a large amount of foreign exchange reserves to buy a large amount of Thai baht thrown out in the foreign exchange market.

The member states that passed the "East Asian Central Bank Presidents' Meeting" jointly intervened with Singapore in the foreign exchange market and invested 120 billion US dollars to maintain the exchange rate.

Order domestic financial institutions to prohibit lending Thai baht to Soros, and sharply increase the overnight lending rate from 10% to 1000-1500%.

After a fierce battle.

Thailand finally maintained the baht at 5 per dollar on May 20.

However, it was also this attack that even though Soros lost 3 million US dollars, he had completely seen through Thailand's hole card!
(End of this chapter)