Hong Kong Island is known as the freest economy in the world. The Hong Kong government's principle of "active non-intervention" in the market has always been "active non-intervention". However, in the face of this situation, non-intervention is equivalent to sitting back and waiting for death, watching helplessly as people take money from their pockets and cannot move. If international speculators like Soros are allowed to win away the hard-earned money of Hong Kong Islanders again and again, Hong Kong Island's economic strength will one day be wiped out. Therefore, the Hong Kong government must take action to safeguard the financial order of Hong Kong Island, and the Hong Kong Monetary Authority is the institution that shoulders this sacred mission.
But now there are not many choices before Fan Xiangchen. One is to implement foreign exchange controls, and the other is to announce the decoupling of the Hong Kong dollar¡¯s ??linked exchange rate against the U.S. dollar. However, he believes that neither of these two methods is advisable. If the Hong Kong dollar is decoupled from the US dollar, it will completely repeat the mistakes of Southeast Asian countries and surrender to the "Quantum Fund" and international speculators. It will also make these financial institutions "Robbers" rushed into homes and looted them without any scruples. This was completely unacceptable to both the new SAR government and the central government. If the market entry fails, not to mention the CEO of the Hong Kong Monetary Authority, even the Financial Secretary and the Secretary for Financial Services will all step down to shoulder this responsibility.
At this time, it is difficult to accurately judge the situation, not to mention that what is in hand is the hard-earned money of the citizens of Hong Kong Island? Fan Xiangchen couldn't sleep all night, and he hadn't closed his eyes for several nights in a row.
Liu Ningqiang just smoked without saying a word, feeling even more annoyed and regretful in his heart. Lin Yu once reminded that the international speculators were all interested in Hang Seng Index futures. Beware of them selling the Hong Kong dollar short in the foreign exchange market first, forcing the Hong Kong Monetary Authority to resort to the old trick of raising interest rates and thereby suppressing the stock market. When interest rates rise, the stock market is bound to fall, and the Hang Seng Index futures will also fall simultaneously. Then short the Hang Seng Index futures loans at a lower price in the futures market, and both the foreign exchange market and the stock market will make profits. But I didn't take Lin Yu's kind reminders to heart at all. In his opinion, Lin Yu was just a condescending young man. How do you know about finance and politics? Unexpectedly, the situation developed exactly as Lin Yu expected.
This time, the Hong Kong government allocated a large amount of foreign exchange reserves to absorb all the selling of the Hong Kong dollar. Intervening in the market also stems from one's own intentions. Now the Hong Kong dollar exchange rate has finally risen above the psychological mark of 7.75, barely holding on. However, tens of billions of dollars of foreign exchange reserves were firmly trapped in it, and it was powerless to deal with the rapid decline of stock markets and futures. Although Liu Ningqiang believes that his judgment is correct, if he really needs to be investigated, he cannot shirk his responsibility.
Ge Hongrui took a few puffs of cigarette. Then he slowly said: "This time we have indeed underestimated the strength of Soros and international speculators, and have fallen into the current situation of being passively beaten. We must plan carefully for the next step."
¡°Let¡¯s see if the central government can mobilize another batch of funds?¡± Fan Xiangchen asked tentatively.
In fact, there are many solutions. The so-called "one force reduces ten" as long as you have enough funds and enter the market in large quantities, you can quickly lift the Hang Seng Index, which will not only make speculators unprofitable in the early sell-off. What's more, stealing the chicken will end up losing the rice.
Ge Hongrui shook his head, a wry smile appeared on the corner of his mouth.
This time, for the sake of the stability of Hong Kong Island¡¯s financial market, we ensure that the Hong Kong dollar will not be affected. When the expert team went to Hong Kong, they actually received full authorization from the central government and the State Council to directly mobilize huge amounts of foreign exchange reserves to intervene in the market. The central bank also received the same instructions. But some time ago, in order to stabilize the exchange rate in the face of huge selling orders, not only the Hong Kong government invested more than 100 billion Hong Kong dollars, but the expert team also urgently mobilized nearly 10 billion US dollars.
It is not impossible to continue to allocate funds from the central government. But for the almost huge amount of selling, it is still unknown whether it can really repel the "Quantum Fund" and international speculative funds. China's foreign exchange reserves at the time were about 140 billion US dollars, plus The investment on Hong Kong Island is only over 200 billion U.S. dollars, which is really nothing compared to the more than 900 billion in "Quantum Fund" and international speculative funds this time. Even if they all put in all their money, if Hong Kong Island's stock and currency markets are like Thailand is also experiencing a mass exodus. This amount of money is enough to support the market for two or three weeks.
As night falls, the lights of Victoria Harbor gradually turn on. The seaside guardrail blocks the sound of waves crashing on the shore, reflecting the continuous colors of the sea. The dazzling Hong Kong Island on the other side is dizzying. With the reflection of the waves, it becomes even more luxurious. Looking back at Kowloon, the glow is fading, the lights are fading away, a few returning boats are lying quietly on the pier, and the bell tower is still alone. The Wan Chai Convention and Exhibition Center is bright, Causeway Bay is bustling, the tall buildings in the Central and Western District are brightly lit, the bright lights in the center of Central pierce the sky, and the stars looming on the black Victoria Peak are the edges of this sea of ??lights. In a blur, the sightseeing cruise ships and even the Star Ferry on the sea have become performers competing on both sides of the Victoria Harbor, with water, lights, boats and people playing a beautiful part.
This is when Victoria Harbor becomes realNowadays, her makeup is more luxurious - the dazzling sea of ??lights on both sides of Hong Kong and Kowloon is the luminous eyeshadow she applied on herself, making the bright colors match the charming lines and luxurious evening gowns of Hong Kong Island. The flickering eyes in Victoria Harbor are not as flamboyant as her luxurious makeup. There is glitz and glitz in the changing tides, and she looks coldly through the world of mortals, which is more exciting.
However, no one noticed in the night. A few people in ordinary clothes and in a hurry secretly left the hotel from the staff passage of the Lam Group International Hotel in Hong Kong and boarded a Rolls-Royce that had been waiting here for a long time. Les, then escorted by two bulletproof Mercedes-Benzes at the front and rear, slid through the dimly lit urban night, the bright car lights shining brightly and brilliantly in the night, and headed straight for Repulse Bay.
Repulse Bay is located in the southern part of Hong Kong Island. It is the most representative and beautiful harbor on Hong Kong Island. It has smooth waves and fine sand, a wide beach bed, a gentle slope, and warm sea water. Because of its beautiful and charming scenery, Repulse Bay has always been one of the famous high-end residential areas in Hong Kong Island. The area is full of luxurious residences. If you pick any householder, you will be a big shot in Hong Kong Island.
The development of things after that was almost exactly as Lin Yu predicted.
First, the seven major financial groups in Hong Kong Island jointly held a press conference, claiming that they would defend the financial order of Hong Kong Island and warned international speculators that Hong Kong Island is not their cash machine. If they persist in their stubbornness, they will surely suffer a bloody blow. At the same time, the Hong Kong Island government officially intervened in the stock market, using the Exchange Fund and Land Fund to simultaneously enter the stock market and the Hang Seng Index futures market to absorb large amounts of money, causing the Hang Seng Index to rebound by more than 560 points that day. The increase was as much as 8%.
The Hong Kong Island government's reversal of its previous "active non-intervention" policy has dealt an unexpected and heavy blow to speculators. This has caused an uproar around the world, with mixed praise and praise. Support the Hong Kong government. Mainly local small and medium investors and business people believe that the Hong Kong government should have intervened long ago. Opponents are also quite broad, including many multinational financial institutions. For example, the US-funded Morgan Stanley issued a report, criticizing the Hong Kong government's move as a "desperate move" that may not succeed. Instead, it may give away the hard-earned money of Hong Kong Islanders to speculators. If this continues, it will even endanger the linked exchange rate. Among the opponents are one or two newspapers that have always claimed to believe in free market principles. and some professors and scholars. Their argument is nothing more than that the Hong Kong Island government's entry into the market has set a bad example of intervening in the market, which will have endless consequences. It will also damage Hong Kong Island's status as an international financial center and scare away investors. The Wall Street Journal of the United States also accused the Hong Kong government of interfering in free market principles with the title "Hong Kong Island Makes Big Mistake."
In this regard, the Chief of the Hong Kong Special Administrative Region also made a statement to reporters: The government will, as always, adhere to the policy of not intervening in the stock market and futures market activities, but when necessary, even when there is a clear relationship between stock speculation and futures At this time, the government has the responsibility to take decisive measures to reduce market chaos. Maintain the financial market and order on Hong Kong Island. The Hong Kong government is shouldering the responsibility.
Such a clear-cut attitude shows that the confidence and determination of the Hong Kong government to rescue the market this time is unquestionable. It has spent hundreds of billions of Hong Kong dollars to continuously fight against speculators in the spot and futures markets. It is different from the previous method of only pushing up overnight interest rates and increasing the selling costs of international speculators. This time, the Hong Kong government intervened in the stock market, futures market, and foreign exchange market at the same time, trying to form a three-dimensional defense network, so that international speculators could not use the methods they are good at "attacking the east" or "attacking the mountain to shock the tiger".
Specifically, in view of the fact that most speculators hold futures selling orders below 8,000 points, the Hong Kong government hopes to push the Hang Seng stock index to a level close to 8,000 points and at the same time increase the August futures settlement price, while leaving September The futures index fell back, opening up the gap between the two. Even if some speculators want to transfer warehouse receipts from August to September, they will have to pay an admission fee of several hundred points, which will significantly increase the cost. at the same time. In order to stimulate economic growth and alleviate the economic decline, the Hong Kong government has increased investment in public projects and actively built and expanded infrastructure such as subways and highways. Stimulate investment and enhance the charm of the financial center. And refund taxes and freeze fees. Relieve people's difficulties. Strengthen supervision and prevent excessive speculation.
With these effective measures, the confidence of Hong Kong Island citizens has been greatly boosted. Many wealthy businessmen on Hong Kong Island have also claimed that they will never sell their stocks even if stock prices continue to fall. The stock index also rose sharply, and the situation was excellent. However, the funds invested by international speculators suffered losses.
In response to the Hong Kong government's strong intervention in the market, international speculators were naturally unwilling to accept it. Under the leadership of the "Quantum Fund", they raised a large amount of funds and launched another fierce attack. They not only conducted a large number of forward purchases of Hong Kong dollars, but also prepared to repeat the siege. The glorious scene of the Thai baht is also competing with the Hong Kong government for the big blue-chip stocks in Hong Kong stocks. Mainly including HSBC, Island Telecom, Cheung Kong and other stocks. These stocks have large share capital and high market capitalization, and play an important role in the rise and fall of the Hang Seng Index. Take HSBC as an example. The stock accounts for 30% of the weight of the Hang Seng Stock Index, so it has become a must-have stock for both longs and shorts.
At the same time, in order to suppress the Hong Kong stock market, international speculative funds forced Russia to announce that it would give up its actions to defend the ruble, causing US and European stock markets toThe market plummeted across the board. At the same time, speculative capital was mobilized in the spot stock market, focusing on selling large blue-chip stocks and frantically shorting a large number of foreign long-term funds in an attempt to bring down the Hong Kong Island Index. This is a dirty trick to cause a greater decline in the stock market, forcing the government to bail out the market, and to accept the selling of stocks and Hong Kong dollars by speculators. The purpose is to gain money from the large-scale selling of futures contracts in the Hang Seng Index futures market and convert it into U.S. dollars. At the same time, international speculators are even more arrogant in claiming that the Hong Kong government will lose. This kind of provocation against the government is truly unprecedented.
The Hong Kong stock market is facing a severe test.
The war was extremely fierce from the beginning. The speculators' selling was fierce and overwhelming. Many blue-chip stocks such as Yangtze River Corporation and China Telecom were sold wildly by speculators, and a large number of European funds entered the market. The situation was so tragic that everyone could not help but be stunned and frightened.
Faced with the bloody massacre of international hot money, the SAR government fought to the death with a fearless spirit and tried its best to defend to the death. Under the overall command of Fan Xiangchen, the Hong Kong government also injected a large amount of funds, making every effort to support the sky. The soldiers will block it, the water will cover it, and there will be no one left. Buy them all. A full-line defense is used to stabilize the Hang Seng Index. In the first two days of the defensive war, the Hong Kong Monetary Authority took on about HK$30 billion to HK$40 billion, far exceeding the projected fiscal deficit of HK$21.4 billion for the current fiscal year.
But as more and more international speculative funds pour in, the funds used for defense are gradually exhausted. The Hong Kong dollar and stock index are in crisis again, and the situation is extremely dangerous.
Early morning. The Hong Kong Observatory has issued a thunderstorm warning. This seems to indicate that a more violent storm is coming.
And at this time of extreme crisis, Lin Yu finally issued the order for a full-scale attack. A well-planned counterattack was launched.
The next day, the Lin Group, which had been silent all this time, suddenly made a high-profile announcement that it would enter the market with all its strength to fight back against international speculators. The much-anticipated peak showdown has finally arrived. Millions of people in Hong Kong locked the channel and stared at the fast-beating Hang Seng Index. Everyone was sweating.
What shocked everyone. The originally menacing and arrogant Quantum Fund not only failed to fight, but instead forcibly closed its positions and then counterattacked, which immediately stunned other international speculators.
Wait until the other speculators react. The large influx of buying funds caused the exchange rate of the Hong Kong dollar against the US dollar to continue to rise, and the Hang Seng Index soared sharply. International speculative funds suffered heavy losses and suffered heavy losses.
At this point, international speculators saw that the situation was over, and they abandoned their armor and fled. Huge amounts of money collected from elsewhere continued to flow into the pockets of the Lin Group and the Hong Kong government, and they had to evacuate Hong Kong Island in embarrassment.
Lin's consortium once again won a great victory and became famous in one battle. Let everyone know that no matter what time, the Lin Group will always be the well-deserved No. 1 in the financial field.
The Asian financial crisis that lasted for several months has finally come to an end.
In this Asian financial turmoil that has swept across Asia, including Thailand, Indonesia, Malaysia, Singapore, South Korea, China, Hong Kong Island, Japan, and even Russia, the only thing that can withstand the attack of international speculative funds without economic collapse is return. Hong Kong Island after being embraced by the motherland.
??The international speculators have failed and suffered heavy losses. Not only did the huge wealth plundered from countries such as Thailand and Malaysia disappear, but more than half of the principal invested was lost. The lessons were so severe that they would never have the courage to attack China again in the future. But for Southeast Asia, especially Thailand, which is at the epicenter of the earthquake, it is okay to play the crown, but it is hard to mention the joy of celebrating.
And the Lin Group and the Hong Kong government are naturally the biggest winners.
For the Hong Kong Island government, it has achieved its goal by attacking international speculators head-on, safeguarding Hong Kong Island's financial market and order, and preserving the fruits of Hong Kong Island's development over the past few decades. What's more, when international speculative funds were smashing the market, they took over all the selling Hong Kong dollars at a lower price, and in the battle of the stock index, they made tens of billions of dollars in profits, and their foreign exchange reserves reached the fifth place.
This battle of the Lin Consortium not only once again showed the world its domineering power, but also made everyone understand that no one can surpass the Lin Consortium in this field. To paraphrase a later saying, it is: "Always imitated, never surpassed." The profits reached more than 60 billion U.S. dollars, not including the profits in the name of the "Quantum Fund" and the profits of more than a dozen investment companies hidden in the dark.
Not only that, the Lam Group¡¯s active rescue of the market and safeguarding the order of the financial market on Hong Kong Island has been praised by thousands of Chinese people. It is hailed as a ¡°hero of the country¡± and an enterprise that truly serves the country and the people. The Hong Kong government and even the central government have expressed their appreciation for the Lam Group on different occasions. It can be said to be a great victory, fame and fortune.
But even so, the Asian financial crisis has brought considerable disruption to Hong Kong's economy.??function. As a result, the overall economy of Hong Kong Island has shown a trend of recession, and the financial industry, real estate industry, trade, etc. have all been hit hard. Under this circumstance, both the central and Hong Kong governments have stepped up their efforts to revive the Hong Kong Island economy. The Lam Group has also invested heavily in Hong Kong, from port expansion to opening factories; from increasing trade to relaxing the status of the Lam Group International Bank. Investment and loan thresholds US$30 billion of the profits from this financial war will be invested in stimulating domestic demand, accelerating the economic development of Hong Kong Island, changing the industrial structure in a timely manner, promoting the development of emerging industries, and taking the development path of industrial diversification. . It laid a solid foundation for Hong Kong Island¡¯s second take-off.
It is precisely because of the strong intervention of the Lam Group that Hong Kong Island did not fall into a long-term recession like in its previous life, with the property market shrinking significantly and companies going bankrupt. Instead, it soon ushered in extremely rapid development. It attracted global attention and admiration.
At this time, Lin Yu was no longer on Hong Kong Island. Instead, when Soros made a "defection" as planned, he took a plane back to the mainland.
The situation has been decided, and it no longer matters whether he is in Hong Kong or not. (To be continued!~!
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