Rebirth

I followed the big guys for a little chat. When bidding farewell, I avoided everyone’s gaze, and quietly left and returned to the hotel after Mr. Deng left a note in his palm, and then went directly to Century World in Pacific Place. Invest in Hong Kong headquarters.

"BOSS, you are finally here." Just stepping out of the elevator, Bill Weilibe and Li Shanquan were waiting with several managements, and Bill smiled when he saw Li Feng coming out.

"Haha... Bill, I will be here with you in the next few days." Li Feng smiled.

"Boss, don't you know that since the beginning of the year, Thailand's financial and foreign exchange market has been turbulent, but it is very lively. Before following your orders to mobilize all the funds, many people have opinions." Bill replied with a smile.

"Let's go, let's go to the office and say." Li Feng could only reply faintly.

Under the attention of the company owner, the group returned to the company's Li Shanquan's general manager's office, which is also Li Shanquan's office.

As soon as they settled down in the office, Bill and Li Shanquan couldn't wait to report to Li Feng, and both showed excitement in their tone.

...

“BOSS, since the beginning of 1997, house prices in Bangkok’s business districts have fallen by 22%. The SET (Thailand Stock Exchange) index of the Thai stock market has also fallen from more than 1,400 points at the end of January 1996 to June 1997. More than 520 points a month, a drop of more than 60%.

As a direct consequence of the bursting of the real estate market and stock market bubbles, commercial banks' non-performing assets have increased substantially.In June 1996, the non-performing loans of Thai commercial banks exceeded 1 trillion baht, and the non-performing loan ratio reached 35.8%.In the stock market and real estate market, the sharp drop in asset prices has also hit financial securities companies hard.

On the one hand, their own securities have depreciated; on the other hand, their non-performing loans in the real estate market and personal securities investments have risen sharply.

Since Thailand implements a "pegged floating" exchange rate system, the peg is still the US dollar.When the US dollar entered the appreciation channel, the Thai government realized that the continued peg of the Thai baht to the US dollar would undoubtedly put the'export-oriented' Thai economy to death.

However, due to fear that abandoning the pegging system will depreciate the Thai baht, increase the domestic debt burden, cause corporate bankruptcy, worker unemployment, and rise in the rate of non-performing loans of financial institutions, the Thai government has been unable to make up its mind to adjust the exchange rate system.

They hope to maintain the peg to the exchange rate for a period of time, first to resolve domestic economic problems, and then adjust the exchange rate system.However, international speculators did not give the Thai government enough time.

Unfortunately, the Thai government miscalculated the form.Since the beginning of 1997, international speculative capital launched a series of attacks on the Thai baht. The Thai government has adopted a series of measures to try to resolve the approaching crisis.

...

In February, the Central Bank of Thailand implemented a massive intervention in the Singapore foreign exchange market in order to lower the exchange rate of the Thai baht.As a result, this operation caused a strong market rebound. The Thai baht exchange rate quickly depreciated by 5%, and international currency speculators turned their attacks on the Thai baht from covert to open.

In March, international investors borrowed up to 15 billion U.S. dollars in forward Thai baht contracts from the Bank of Thailand, and sold the Thai baht on a large scale in the spot foreign exchange market. The pressure on the devaluation of the Thai baht increased unprecedentedly.The Central Bank of Thailand used US$2 billion in foreign exchange reserves to intervene to quell the storm.

In May, international speculators quietly established positions in spot and forward foreign exchange transactions through foreign banks operating offshore businesses, and then borrowed Thai baht from local banks in Thailand.

Suddenly, in the form of selling large amounts of Thai baht in the spot and forward markets, short selling of the Thai baht caused a sharp drop in the spot exchange rate of the Thai baht, which repeatedly broke the floating range specified by the Central Bank of Thailand, causing market panic.

Commercial banks and companies have dumped the Thai baht and snapped up the U.S. dollar. The value of the Thai baht against the U.S. dollar once depreciated to 27:1.

In the face of the shock, the Central Bank of Thailand once again used US$5 billion in foreign exchange reserves to intervene, raising the offshore lending rate to 1,000% and prohibiting domestic financial institutions from lending baht.

Not long ago, in late June, the extremely fragile foreign exchange market in Thailand once again experienced violent fluctuations, and the exchange rate of the Thai baht to the US dollar plummeted to 28:1. Now it seems that the Thai government is almost over."Bill Williebe said in a positive tone with excitement.

...

"Yes, judging from Thailand's previous foreign exchange reserves of 33 billion U.S. dollars, according to calculations, this time has been basically exhausted. As long as the foreign exchange reserves are exhausted, perhaps the Thai government may find another way.

In our opinion, it is nothing more than several aspects. One is to sell domestic corporate assets and raise funds, and the other is to seek help from the international community, such as the World Bank.

Unfortunately, the nature of the World Bank is controlled by the United States, and most of the capital that attacked the foreign exchange market in Thailand came from Wall Street. The result can be imagined.Another example is seeking state aid, such as China, Japan, etc., but state funding cannot be unlimited. Therefore, these are just a drop in the bucket or a drinking poison to quench thirst.

The last point is to adjust the current foreign exchange policy. Now international hot money is attacking the Thai baht. This result is equivalent to giving up resistance. By then, the depreciation of the Thai baht will be further, even completely waste paper.

According to the current situation, according to my and my staff’s estimation, the Thai government should not be able to hold it up immediately, and domestic assets have begun to be gradually infiltrated and controlled by European and American capital. If it can get the support of the international community, it is necessary to adjust the exchange rate system. They are the only feasible way.

The devaluation of the Thai baht is our opportunity. Bill and I agree that when the exchange rate is adjusted, it is also when the last straw is crushed. It is not clear when the adjustment strategy will be announced."Li Shanquan also said from the side.

"Although, according to your instructions, we pooled the funds and opened a position on the 2nd, but BOSS, how did you know that they will adjust on this day?" Bill Welibei was finally facing right now. Li Feng asked.

Obviously, before Li Feng asked them to concentrate their funds and prepare to bet on the 2nd day, the two of them were still confused.

...

“I’m bringing you good news now. In the morning, I talked to several leaders of the Chinese government. I heard the government talk on the 1st, saying that the Prime Minister of Thailand has called him several times. I hope the government can support and assist. They, but there is no news yet.

And I heard from him that the Prime Minister of Thailand told him that the government has basically made a decision. If there is no other support, it will announce the abandonment of the exchange rate system tomorrow. In addition to the country’s inability to withstand it, there is also that it is better to die in the family. Everyone is going to die.

Isn’t Hong Kong just returned? The financial crises in Thailand, Malaysia, Indonesia and other places will definitely affect Hong Kong. The Chinese pay more attention to face. Naturally, the government does not want such a situation. According to the Thai government’s thinking, this is a turmoil. Possibility of launching."Li Feng said that the so-called Thailand's announcement of the abandonment of the exchange rate on the 2nd was the news from the Chinese government and temporarily fooled it.

"What is this, is it a threat to the Chinese government? It's too stupid." Li Shanquan interrupted.

"It's really stupid. The size of the Chinese government's economy is comparable to that of Thailand. Maybe it's drowned, and people are still strong." Bill Welibei also agreed.

"No matter what, we must make good preparations for tomorrow. Tomorrow may become the last straw to crush the Southeast Asian economy. Whatever the end result, perhaps the financial crisis is really coming." Li Feng smiled.

"Since you have brought such good news to the BOSS, we naturally cannot give up. Don't worry, all preparations have been made. We have prepared all our funds before, except for our own 3 billion US dollars. In addition, a fund of 5 billion dollars is also ready." Bill replied with a smile.

...

"That's good, I will accompany you to be busy next, and I will go to visit an elder at the end for a while, and I will leave first." Once again, I exchanged with the two generals under his banner, and finally Li Feng smiled. .

"OK, so be it." Bill and Li Shanquan both smiled.