Chapter 454 Let's Go Short Together

Chapter 454: Let’s go short together

The disease-free financial group lives in Hong Kong. Many of them are Soros and others. To analyze its trends. So whether it is in Thailand's financial crisis. It is still the process of Soros sniping at the Hong Kong dollar. They are very familiar with the movements of Soros and others.

Now Soros is madly attacking the Hong Kong dollar for the international level. Then the means of profit is naturally still on the Hang Seng Index. Therefore, after Fan Wubing proposed the idea of ​​shorting the Hang Seng Index in advance. They began to establish short contracts on a large scale for three to six months. Start accumulating combat power.

The Monetary Authority is very puzzled by Fan Wubing’s short-selling behavior. However, Fan Wubing had already provided US$20 billion in foreign exchange reserve assistance to the SAR at this time. It’s hard to say anything. After all, the help provided by the people in Hong Kong and the island at this time is far less than this. these people. When there is no pain on the skin. They are all unwilling to pluck a hair to benefit the world. July 21st. Soros launched a new round of attacks. same day. The three-month forward price of the US dollar against the Hong Kong dollar rose to 250 points. The Hong Kong dollar three-month interbank lending rate rose to 7.06 percent from 5.575 percent. The Hong Kong Monetary Authority feels that if it does not launch a counterattack from the policy level. Dispel the opponent's offensive. So after many discussions. A counter-war was immediately orchestrated the next day.

The SAR government passed a large amount of government bonds. Raise Hong Kong dollar interest rates. This in turn pushed the exchange rate of the Hong Kong dollar against the US dollar to rise sharply. at the same time. The Hong Kong Monetary Authority issued verbal warnings to two banks suspected of speculating on the Hong Kong dollar. Make one Hong Kong dollar speculators tremble with fear. Finally, I chose to quit the Hong Kong dollar speculation team. This will undoubtedly weaken Soros’s speculative power.

When the Hong Kong dollar started selling opportunistically again. The Hong Kong Monetary Authority was advised by Fan Wubing. Short-term interest rates were also significantly raised. The interest rates on overnight loans between banks skyrocketed. A series of counterattacks prevented Soros from gaining any advantage in his Hong Kong expedition. lost heavily.

At this time, the central government also emphasized. We will fully support the Hong Kong government in safeguarding the stability of the Hong Kong dollar. Bank of China will cooperate with the Hong Kong Monetary Authority when necessary. Join forces to combat Soros’s speculative activities. This is undoubtedly a shot in the arm for Hong Kong. But it's definitely bad news for Soros.

Soros heard more bad news than that.

July 25th. The central bank meeting of 11 Asia-Pacific countries and regions, including China, Australia, Hong Kong Special Administrative Region, Japan and ASEAN countries, was held in Shanghai and made a statement. The Asia-Pacific regional economy is developing well. Strengthen cooperation with each other and jointly combat the power of currency speculation.

On August 14th and 15th, some substantial investment funds entered the Hong Kong currency market. They use financial futures to buy Hong Kong dollars using three-month or six-month Hong Kong dollar futures contracts. Then quickly sell short. As a result, the exchange rate of the Hong Kong dollar against the US dollar has reached 7.75 per US dollar. Seven point seven five is also known as the important psychological key point of the yuan exchange rate.

The Hong Kong Monetary Authority responded quickly.

To counter speculators, it tightened money supply and raised interbank interest rates. The Hong Kong Monetary Authority increased loan interest rates to banks to force them to hand back excess positions. Let those speculators who borrow money to sell Hong Kong dollars to buy US dollars face a situation where the wall is strong and the country is cleared. Prohibited by the extremely high cost of speculation.

in a very short time. That is less than a week. It restored calm to the Hong Kong city. Speculators come back in vain.

However. Everyone understands very well. This group of speculators will not give up. A bloody fight between the two sides is inevitable. The Hong Kong authorities have launched a two-pronged policy offensive. This group of international financial giants is reminded not to act rashly.

The attitude of the Hong Kong financial authorities is extremely clear. We will resolutely maintain the stability of the linked exchange rate system. The Chief Executive of the SAR who is visiting the UK stressed before leaving London. The SAR Government has great determination to maintain the linked exchange rate.

And Financial Secretary Donald Tsang. Secretary for Financial Services Hui Shi-yan met with the media. It reiterated that maintaining the linked exchange rate is the Hong Kong government’s goal. To achieve this goal, it is inevitable that interest rates will soar. I hope the people of Hong Kong will stay calm. Chief Secretary for Administration Anson Chan called on everyone to remain calm and the Hong Kong General Chamber of Commerce issued a statement stating its support for the linked exchange rate system. And called on people in the financial market to think calmly. Re-examine Hong Kong’s economic foundation. And stabilize the market.

Donald Tsang at an investment presentation. The SARs will not change the currency system or the relationship between the Hong Kong dollar and the US dollar. Only speculators died by investing in Hong Kong dollars.

Of course. International speculators have repeatedly attacked the Hong Kong dollar not only to make profits on the exchange rate of the Hong Kong dollar. Adopt a comprehensive strategy. Profit in the stock market and futures market. Their approach is. First, accumulate a large number of short positions in the futures market. Then buy forward dollars. Sell ​​forward Hong Kong dollars. Build a lot of momentum.

When the Hong Kong government takes measures to significantly raise interest rates in response to attacks on the Hong Kong dollar. Sentiment on stocks turned sour. People are worried that rising interest rates will push down the stock and property markets. this

Those who take advantage of the situation will prosper. The futures index plummeted.

then. There is panic in the stock market. Sell ​​stocks out of fear. Speculators can close their short positions and make huge profits. In other words. Although speculators have failed in the Hong Kong exchange rate. Even small losses. But he made a fortune in the futures market.

October 20th is the tenth anniversary of Black Monday, the Wall Street stock market tragedy in the United States. Because of this. It became a most anxious day for investment analysts. However. The atmosphere of fear did not appear on Wall Street. Quite the opposite. The Dow Jones actually rebounded 74 points that day.

Just as investment analysts are celebrating. The other end of the ball is already surrounded by dangers and undercurrents. Ten years later, another color Monday begins. Pass. This time it is Hong Kong, known as the shopping paradise. October 20th. Hong Kong stock market began to fall. October 21st. Hong Kong's Hang Seng Index fell 765 points. This momentum continued on the 22nd. Down one thousand two hundred points. Twenty-three days. Concerns about the outlook for the Hong Kong dollar have sent Hong Kong's interbank lending rates rising. The overnight interest rate, which was only about 7% the day before, once surged three hundred times. In this market atmosphere. Hong Kong stocks suffered their fourth consecutive setback. It fell by 10.41 percentage points.

Hong Kong SAR Financial Secretary Donald Tsang said on the same day. Hong Kong's basic economic factors are good. The decline in the stock market was mainly due to the temporary speculative influence of external factors. Investors need not panic. He said: "I don't think this is a stock market crash. He thinks it doesn't matter. The SAR government first wants to defend the Hong Kong dollar exchange rate. Although there was speculation in the dollar the night before, the speculation has been subsided at this time. At the same time, . Hong Kong Monetary Authority Chief Executive Yam Chi-kang also spoke, claiming that the Hong Kong Monetary Authority had repelled speculators the night before.

Perhaps it is due to the strong intervention measures of the special administration. Perhaps it is because the confidence of the SAR government and financial managers has infected investors. Twenty-fourth. after four consecutive sessions of sharp declines. The Hong Kong stock market rebounded strongly on this day. The Hang Seng Index rose 718 points. The increase was nearly seven percentage points. 20th. Tsang Yam-kuen reiterated. Hong Kong's current linked exchange rate system will not change. It will be the speculators who will lose in this event.

at this time. Stock markets around the world have formed a vicious cycle, with widespread plummets. Twenty-seventh day. The Dow Jones index in New York plummeted nearly 554 points. It was the worst drop ever. As a result, trading was automatically suspended for an hour. The Tokyo stock market plummeted by more than 100 points after opening.

Twenty-eighth. Hong Kong's Hang Seng Index reached more than 1,400 points. The decline was 13.7 percent. The number of points dropped was the largest in history. In this situation, the fluctuation of the Hong Kong stock market is not limited to its own factors.

To this. The Chief Executive of the SAR stressed. The shock in Hong Kong is only a temporary adjustment. A spokesman for the Chinese Ministry of Foreign Affairs also stated. The Hong Kong stock market has experienced such fluctuations in the past. Not surprising. Hong Kong stock market fluctuations are something that the SAR government has to deal with on its own. The central government will follow the principle of one country, two systems. It will not directly intervene in Hong Kong’s stock market and the Hong Kong dollar exchange rate. Beijing remains confident in Hong Kong's overall economy.

The Secretary for the Provisional Legislative and Fiscal Affairs Bureau of the SAR said in response to questions from members. Society is very concerned about the stability of the joint exchange rate system. About the functioning of the market. The consistent policy of the SAR Government is freedom. Administrative interference should be kept to a minimum.

Anson Chan, Chief Secretary for Administration of the SAR, advised citizens to remain calm. Don’t overreact. Be cautious in market times and act within your capabilities.

Public opinion in Hong Kong expressed strong confidence. "Sing Tao Daily" commented. past. After experiencing the economic crisis. Hong Kong will recover soon. And more vigorous. This time should be no exception. U.S. Treasury noted. Since the global stock market crash in 1987. The Hong Kong stock market's return rate over the past ten years ranks among the world's stock markets. After the seven stock disasters. Hong Kong only needs to vigorously develop its economy. The return after ten years may be the highest in the world.

This invisible war caused by Soros. It shocked the world like a volcano erupting. Thailand and Malaysia, which are at the epicenter of the earthquake, are suffering terribly. the other side. Hong Kong, across the sea, has tightened its nerves more than ever. Everyone realizes that it is only a matter of time before this black financial undercurrent hits Hong Kong Island.

Faced with the aggressive flames of international financial speculators. Hong Kong's chief executive expressed caution. The Hong Kong SAR has abundant foreign exchange reserves. The economy is growing steadily. more importantly. The Hong Kong SAR is backed by the strong motherland. Therefore, this storm will not have a particularly serious impact on Hong Kong.

Fan Wubing has been here for a while. But he made a lot of money and was elated.

The second update is delivered today