God-level Trader of Rebirth

Chapter 38 Destiny Turning Point

While Chen Weidong was talking with Lin Zeju, Wall Street in New York, the headquarters of Quantum Fund, was also holding an emergency meeting.

Representatives of the eight major capitals gathered together again and sat on both sides of the long conference table.

Each of them is a feared "hungry wolf" in the financial market, and even some "old men" among them have participated in the sniping of the pound and forced the UK to withdraw from the European exchange rate system.

The influence of the institutions behind it can be said to stomp casually, and the financial markets of some small countries will cause earthquakes.

The first to speak was Rodri Jones, the chief trader of Quantum Fund.

"Two days ago, we received urgent information from insiders of Xiangjiang, saying that the Hong Kong government has intervened in the financial market. It was because of their financial intervention in October last year that our attack was blocked."

"Oh?"

There was a burst of whispering in the conference room, and most people expressed shock.

Because Hong Kong, as the financial center of Asia, is one of the few free financial ports in the world, it pursues a liberal economic policy.

Even in the eyes of many people, financial freedom is the foundation of Xiangjiang.

But now, they actually take the initiative to intervene in the market, it's unbelievable!
"Hehe, in fact, this is also within the expectations of George and I. We have defeated so many countries, and it is normal for them to be afraid." Drucken Miller, the behind-the-scenes strategist of the Quantum Fund, said with a smile.

He is a somewhat obese middle-aged man who likes to drink Coca-Cola very much, because he believes that sugar can stimulate the brain to become more active and conducive to thinking.

This plan to attack the Hong Kong dollar was completely customized by him.

"Mr. Miller's speech means that we are going to launch a counterattack?" One of the young people asked, he is a representative of the Carlyle Fund, which is considered to be a relatively weak one among the eight major institutions.

Originally, he was not qualified to participate in this kind of meeting. It was another organization that temporarily withdrew from this operation and gave up this position.

Drucken Miller didn't answer, but turned to Jones next to him and asked, "How many Hong Kong dollars have we hoarded in total?"

Jones smiled and said: "Gentlemen, because we have borrowed and hoarded Hong Kong dollars a lot in the past few months, as of yesterday, we have more than 540 billion Hong Kong dollars."

"Interestingly, the Hong Kong Monetary Authority actually misunderstood that our purpose was to short the Hong Kong dollar, so they used the method of raising short-term loan interest rates every time to raise our short-selling costs, trying to force us to withdraw from the market voluntarily."

"I have to say, this method is very ridiculous." A blond middle-aged man mocked without any scruples. He is a representative of Tiger Fund, and his strength is evenly matched with Quantum Fund.

"If possible, I would like the Federal Reserve to warn them, saying that the bailout of the Hong Kong Monetary Authority is an intervention in the free market, which will damage Hong Kong's image of a free economy..." Morgan Stanley's spokesperson also made suggestions.

"Then...inform your people and prepare for the second step of the plan."

After Drucken Miller finished speaking, he closed his eyes slightly and entered a state of doze.

Jones spread his hands and shrugged at the crowd.

The time came to 1998, January.

Xiangjiang, Antlers Building.

"Old Liu, Soros and the others will definitely launch an attack again. What's your opinion?" Chen Weidong was sitting on the sofa, discussing the recent stock market with an old man.

In October last year, due to the attacks of Soros and other Western hot money, the Hang Seng Index plummeted from 15000 points to 10000 points.

The decline has reached more than 30% in one month.

The sharp drop in the stock market caused the Hong Kong foreign exchange market and the real estate industry to start to be impacted, and the Hong Kong dollar continued to decline against the U.S. dollar as soon as the market opened.

Housing prices have been cut in half, and the financial market is in chaos. People line up in front of major banks to exchange dollars, for fear that the Hong Kong dollar will become waste paper like the Thai baht.

The Hong Kong Monetary Authority also began to intervene secretly, intervening in the market through HSBC.

After some perseverance, the "domino effect" created by Western hot money was finally hit to a certain extent, and the stock market's plunge was temporarily eased.

However, after more than two months of consolidation, the Hang Seng Index has barely recovered to around 10500 points. If Western hot money attacks again, the broader market will face a very severe test.

"What else can I do? It's just that I am afraid that international hot money will short the Hong Kong dollar, so I keep raising the loan interest rate." The old man was a little dissatisfied.

In his view, this method is to injure one thousand enemies and eight hundred self-injury. Many countries in Southeast Asia have used bad tricks before, and there are no new tricks.

"In the short term, there is no better solution than this." Chen Weidong smiled wryly, but he expressed his understanding of the difficulties faced by the HKMA.

only.

The continuous increase of Hong Kong dollar interest rates will sharply reduce the number of Hong Kong dollars circulating in the market, and the liquidity of Hong Kong dollars will also be greatly reduced.

In order to have enough liquidity to ensure the normal operation of the society, Xiangjiang people can only seek liquidity by selling assets, especially stock assets.
Then the consequences are.
"Wait! Old Liu, why do I think this is a trap by Soros?" Chen Weidong suddenly thought of something and said hastily.

"What trap?" Liu Jianping asked doubtfully.

"Think about it, because loan interest rates continue to increase, when companies and ordinary people lack funds, they will not want to go to the bank for loans, but will reduce their holdings of stock assets to survive the crisis."

"At that time, a large number of stocks will be sold in the stock market, and funds will flow out. If Soros takes advantage of the trend and causes panic, the market index will definitely drop." Chen Weidong said.

"You mean, their target is probably not the foreign exchange market, but the stock market?" Liu Jianping immediately thought of the crux of the problem.

"That's right, openly build plank roads, and cover Chencang secretly." Chen Weidong said.

"If this is the case, they can freely choose to attack the foreign exchange market or the stock market, while we can only passively defend, which will be very difficult." Liu Jianping looked worried, and he was well aware of the strength of those international predators.

South Korea is the best example.

Since going bankrupt, I have had to apply for a loan from the International Monetary Fund (IMF), but the price is that South Korea’s economic policy must be subject to the intervention and supervision of the IMF. His countenance came to life.

"Old Liu, the foreign exchange reserves of the Hong Kong government are definitely not enough to deal with the attacks of international hot money. If necessary, I suggest you seek help from there." Chen Weidong pointed to the north.

"Is this okay?" Liu Jianping asked in surprise.

It is said that the financial market over there has only just started for a few years. Can there be foreign exchange reserves to help Xiangjiang in turn?
"Just call and ask."

(End of this chapter)