As for Hong Kong Island, Lin Yu must be preserved, not only because he is patriotic, but mainly because of this matter to seek some benefits for the Lin family. By then, the Lin family will have two members, and it can be said that it will definitely be the absolute first family.
Today's Hong Kong Island, not counting the strong economic strength of those investment companies hidden in the dark, even if it is just "Quantum Funds" and a large amount of international hot money, Hong Kong Island's foreign exchange reserves are simply vulnerable to a blow plus hundreds of billions. With the huge influx of U.S. dollars, Hong Kong Island can only be at its mercy, with almost no ability to protect itself. It is like a naked beauty with her legs spread, waiting for an ending without any doubts.
Under the violent impact of such huge funds, the Hang Seng Index on Hong Kong Island will definitely plummet, and trillions of market values ??will evaporate or be lost. At the same time, the exchange rate of the Hong Kong dollar against the US dollar will fall rapidly, and major banks will be run by the public. The financial crisis will not only cause the stock market to plummet, Hong Kong Island's property market will also suffer heavy losses and continue to fall. The sharp drop in property prices will turn many property owners into "negative owners". Affected by the "negative wealth effect" and other factors, investment and consumption will shrink sharply, and the economy will suffer a lot of deflation. Companies may go bankrupt or lay off workers, causing Hong Kong Island's unemployment rate to rise sharply, and the entire Hong Kong Island economy will be shrouded in a cloud of gloom.
International hot money and speculators, like vicious dogs, have been attracted by the big fat meat of Asia and flocked to it. Although almost all of them are still within Lin Yu's control, no one knows these things. Will the red-eyed speculators go crazy and abandon the "Quantum Fund" and launch a massive attack on Hong Kong Island? Behind this, we don't know how many ulterior motives there are. Once the situation gets out of control, they themselves will Failure to take strong, effective, timely and reliable measures will undoubtedly be a disaster for Hong Kong Island
The matter was of great importance, so Lin Yu did not dare to slack off at all. All day long, Jason compiled the most timely daily situations and analysis reports, as well as the economic and financial news happening around the world, and gave them to him for reading and reference, and then combined them with With the memory of past lives, you can adjust situations and plans at any time to ensure that everything is carried out step by step according to your plan.
As time goes by, while Southeast Asian countries are asking for help and actively planning, international speculators suddenly disappear. The currency exchange rates of Southeast Asian countries have also temporarily stabilized. People in Southeast Asian countries who have been ravaged and tortured have taken a big breath: "Well, the storm has finally passed."
However, the calm on the eve of the storm often breeds murderous intent under the calm surface. This calm only lasted for a few days. Before the Southeast Asian countries had time to wipe away the blood on their bodies, the "Quantum Fund" and a large number of speculative traders seemed to have digested it. The huge gains made some time ago made a comeback again. This time, the power and intensity were stronger than before. Another round of jaw-dropping decline came in an instant. This time, Brunei was also dragged into the water.
So far, Soros has shown an attitude of being unyielding, and he has once again concentrated his firepower on sweeping Southeast Asia, and even gradually swept the entire storm across Asia, turning into the Asian Financial Crisis.
However, when the whole of Asia was shaken, speculators avoided a very obvious target, that is, the Hong Kong dollar. From the beginning to the end, the exchange rate of the Hong Kong dollar has been maintained at an ideal level. It is closely related to several countries that have experienced currency crises. For Hong Kong Island, which is inextricably connected, this cannot but be said to be a miracle.
In a sense, the creation of this miracle is inseparable from the huge deterrent power of the Lam Group of Companies and the effective management of the Hong Kong Island Monetary Authority. As early as the beginning of 1995, when the financial crisis broke out in Mexico, Hong Kong Island There have also been short-term fluctuations in the financial market, but the Hong Kong Monetary Authority promptly raised the interest rates on short-term liquidity, causing speculators to not only fail to speculate but also suffer heavy losses.
This year, when the speculative wave begins to take hold, the Hong Kong Monetary Authority is well prepared to deal with any challenges. As long as there is any sign that the speculative wave is coming towards Hong Kong Island, the overnight loan interest rate will rise rapidly and the interest rate will be raised to the necessary height. If the exchange rate is maintained relatively fixed, speculators betting on Hong Kong dollars are likely to suffer heavy losses again. As expected, on July 24, the Hong Kong Monetary Authority once again intervened in the macro financial market, raising the interbank interest rate to over 7%. This measure not only protects the Hong Kong dollar The exchange rate is strong, and it is also a warning to international hot money speculators.
In fact, there are profound reasons why Hong Kong Island, as a famous international financial center, has weathered many international financial crises in recent years.
First of all, the economic development of Hong Kong Island is good. It is in a rising period and the economic growth rate is high. The demand for investment and consumption will continue to increase. Currency and currency value are a reflection of economic strength. If the economy is running well, the currency will be stable.
Secondly, there is a strong foreign exchange reserve behind Hong Kong Island. As of the end of June 1997, Hong Kong Island¡¯s foreign exchange reserves were US$69.7 billion, plus the land foundation managed by a separate account set up by the Hong Kong Island Monetary Authority.gold foreign exchange reserves, the total value reached seventh place and rose to fifth place
However, just as everyone was paying close attention to Hong Kong Island, on August 14th and 15th, Soros's "Quantum Fund" finally entered the Hong Kong Island foreign exchange market with an unstoppable momentum, a battle between dragons and tigers. The battle of the century is about to begin under the spotlight.
This "invisible war" led by Soros has shocked the world like a volcanic eruption. Thailand and Malaysia, which are at the epicenter of the earthquake, are suffering terribly. The economic conditions of Southeast Asian countries continue to deteriorate, and the foreign exchange and stock markets have plummeted. After a setback, governments around the world felt that they were unable to recover. They have given up their defensive actions and began to surrender. They looked like they would not fight back and allowed their national currencies to rise and fall in the market. International currency speculators were emboldened to have all the power and influence in the Southeast Asian financial market. On the other side of the rampage, Hong Kong Island across the sea has tightened its nerves more than ever before. At this time, the lonely and upright Hong Kong dollar seems to have become a rabbit in the wilderness, always alert to the approaching wolves. Do your best to avoid falling into this quagmire
Although it was later confirmed that the shock in Hong Kong's foreign exchange market in mid-August was just a tentative attack by the international investment group headed by Soros's "Quantum Fund", perhaps the intensity of the attack was not even close to their use of financial futures. , using a 3-month or 6-month Hong Kong dollar futures contract to buy the Hong Kong dollar, and then quickly selling short, causing the Hong Kong dollar to US dollar exchange rate to drop to 7.75:1. This is an important psychological key point known as the Hong Kong dollar exchange rate.
Hong Kong's financial authorities responded quickly, using strategies and means such as tightening money and raising interbank interest rates to counter speculators. The Hong Kong Monetary Authority increased loan interest rates to banks, forcing banks to return excess positions, allowing those who borrowed money to sell Hong Kong dollars to buy Faced with a tough situation, US dollar speculators were deterred by extremely high speculation costs. These coping strategies were simple and effective, so they worked in a short period of time. On August 20, the Hong Kong market returned to calm, and international speculators had no success. and return
However, the entire financial market on Hong Kong Island is still clouded. Everyone seems to know very well that the wolf is finally coming. This group of fierce, greedy and emboldened international speculators will never give up until they take a bite out of Hong Kong Island. A life-and-death struggle is inevitable
Faced with the aggressive arrogance of international financial speculators, the Chief Executive of the Hong Kong Island SAR cautiously stated that the Hong Kong Island SAR has abundant foreign exchange reserves and its economy is growing steadily. What is important is that the Hong Kong Island SAR has the support of a strong motherland. Therefore, this storm has no impact on the economy. Hong Kong Island will not have a particularly serious impact
At the same time, the Hong Kong authorities are preparing for a rainy day, using both policies and public opinion trends to remind these international speculators not to act rashly.
The attitude of Hong Kong Island's financial management authorities is extremely clear: resolutely maintain the stability of the linked exchange rate system because decoupling the exchange rate at this time will only cause Hong Kong people to lose confidence in the Hong Kong dollar overnight. Hong Kong Island is an economic system that relies heavily on exports. Once there is no linked exchange rate , will immediately reduce the stability of Hong Kong Island's foreign trade, cause the stock and property markets to plummet again, interest rates to soar, and the economic environment to further deteriorate. Even in the long run, it may not be a blessing to the people of Hong Kong.
Before leaving London, the first Chief Executive of the Hong Kong Special Administrative Region who was visiting the UK stressed that the SAR government has great determination to maintain the linked exchange rate. The Financial Secretary and the Secretary for Financial Services also met with the media and reiterated that maintaining the linked exchange rate is the Hong Kong government's preferred goal. This target has caused interest rates to soar, which is inevitable. I hope that the people of Hong Kong Island will be calm. The Chief Secretary for Administration called on everyone to remain calm. The Hong Kong Island General Chamber of Commerce issued a statement stating that it supports the linked exchange rate system and called on people in the financial market to Think calmly and re-examine the economic foundation of Hong Kong Island to stabilize the market
Although the speeches and warnings of Hong Kong Island politicians have played a certain role, they cannot eliminate the fear of many Hong Kong Island citizens who have been made insecure by the Southeast Asian financial turmoil. They cannot prevent the international financial giants headed by Soros from attacking Hong Kong. The island is determined to launch an attack. News has come from the Hong Kong Monetary Authority that the recent sharp increase in Hong Kong dollar futures contracts and the high positions have been identified as what the international currency speculators call it. It is expected that they will be ready in a very short time. The Hong Kong dollar has launched another attack, and it is predicted that the funds used to attack Hong Kong Island this time will reach a staggering US$900 billion, which is dozens of times higher than Hong Kong Island¡¯s foreign exchange reserves (To be continued)
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Chapter 799 Countermeasures of the Reborn Financial Tycoon.
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