Chapter 512 Hong Kong Island Showdown 1: International Speculators Living in Bengbu
Before the market closed on Thursday, August 13, more than 100 securities trading accounts controlled by Li Xiaofan bought 20,000 bullish August Hong Kong stock index futures contracts through securities brokerage companies such as Duoli, Hesheng, Bank of China, and Eagle.
Under the dark clouds in the market, this mysterious bullish fund surprised the market, and even more so the traders from the Hong Kong government. Where did this alliance come from?
On Friday, August 14, after the Hong Kong stock market opened from around 6661 points, Li Xiaofan found that today's Hong Kong stock market swept away the previous downturn. After the opening of the market, the stocks of the two leading stocks, Cheung Kong Holdings and HSBC, began to rise strongly. Buyers are constantly buying super blue-chip stocks such as HSBC Holdings, Hong Kong Telecom, Cheung Kong Holdings, Hutchison Whampoa, and China Telecom in Hong Kong stocks. This situation has never happened after the outbreak of the Asian financial crisis.
Li Xiaofan knew that if he guessed correctly, the Hong Kong government should use the Exchange Fund and Land Fund to simultaneously enter the stock market and Hang Seng Index futures market to sweep goods.
"Xiaoqing and Danrong, convert all the remaining 1.2 billion US dollars in your account into Hong Kong dollars, and put half of your position into Hong Kong stocks and August futures contracts!" In the trading room on the 28th floor of the Bank of China Building, Li Xiaofan, who was staring at the computer market, suddenly He gave orders to Zhou Xiaoqing and Wang Danrong.
"Director Li, change everything into Hong Kong dollars?" Zhou Xiaoqing and Wang Danrong's first reaction was, did they hear correctly? At present, the Hong Kong government is exerting all its efforts to maintain the Hong Kong dollar exchange rate. There are rumors in the market that the Hong Kong government's foreign exchange reserves are almost exhausted and it will give up the Hong Kong dollar exchange rate and let it plummet.
"Yes, all of them, allin!" Li Xiaofan finally emphasized in English.
"Roger it!" Although Zhou Xiaoqing and Wang Danrong could not understand, they still resolutely carried out Li Xiaofan's instructions.
After converting all 1.2 billion U.S. dollars into U.S. dollars, plus the previous 300 million U.S. dollars and 11 Hong Kong dollars in profits, Li Xiaofan controlled 12.8 billion Hong Kong dollars in cash.
Hong Kong stocks such as HSBC Holdings, Hong Kong Telecom, Cheung Kong Holdings, Hutchison Whampoa, China Telecom and other super blue-chip stocks were boosted by the Hong Kong government's entry funds at the opening of the market, and soon suffered violent selling. Under the current stormy and gloomy crisis cloud, many of Investors have no confidence in Hong Kong stocks at all. Everyone has the mentality of "getting out on rallies and closing when the gains are good." It would be better if they can reduce their losses. When seeing such a good opportunity to get out of rallies today, they basically have a "run away" mentality. Most of them are meat-cutting warehouses dripping with blood.
Just when the trading commander of the Hong Kong government was about to give instructions to the traders to launch the second round of buying offensive, they suddenly discovered that a mysterious fund was entering the market, all with large amounts of more than 100,000 lots, taking over HSBC Holdings, Hong Kong A large number of selling orders were placed on super blue-chip stocks such as Telecom, Cheung Kong Holdings, Hutchison Whampoa, and China Telecom. After sweeping away the selling, they also showed an active upward attack trend.
Oh shit, who is this?
The trading director of the Hong Kong government was a little confused when he saw the situation in front of him. Which institution is entering the market? Could it be that the Hong Kong government and the Chief Executive have prepared a second mysterious allied force?
It doesn’t matter if it’s a white cat or a black cat, any cat that can do a lot with me is a good cat!
This mysterious alliance is Li Xiaofan's capital for entering the market.
After receiving support from Li Xiaofan's buying orders, the Hong Kong government's funds entered the market with even greater strength. At the same time, they entered the stock market and the Hang Seng Index futures market to absorb large amounts of funds.
The huge amount of buying today surprised Soros and other international speculators and shocked them!
Because they did not expect that the Hong Kong government, which has always advertised a free market, would actually enter the market to fight. Unexpectedly, a mysterious amount of funds came from Singapore to help.
They asked around that day, but to no avail.
I only heard that several large sums of funds, hundreds of millions of dollars, have come to Singapore recently, but they didn't take it seriously at all.
At the closing time that afternoon, the Hong Kong government spent about HK$4 billion on the market that day. With Li Xiaofan's assistance, the Hang Seng Index rebounded by more than 630 points, an increase of 9%, and closed at 7,295 points.
In the previous life, the Hang Seng Index closed at 7224 points on August 14. Li Xiaofan's assist made the closing index of Hong Kong stocks 71 points higher than in the previous life.
Every time the Hang Seng Index rises by one point, it can bring a profit of HK$50 to long investors.
Today's 630-point gain in the Hang Seng Index made Li Xiaofan's 20,000 long August Hong Kong stock index futures contracts a profit of more than HK$600 million.
The international speculators who placed short orders on Soros suffered a lot of losses.
Shortly after the market closed, the head of the Financial Secretary of the SAR government issued a statement saying: "In order to combat the manipulation of the market by speculators, I have exercised the power granted to me by the Exchange Fund Ordinance to instruct the Hong Kong Monetary Authority to use the Exchange Fund to take appropriate responses in the stock and futures markets. action."
Later, the Chief Executive of the SAR also issued a statement through Hong Kong Island's television and radio media to reiterate: "The Hong Kong government will, as always, adhere to the policy of not intervening in the stock market and futures market activities. However, if necessary, it will When there is a clear connection between stock speculation and futures, the Hong Kong government has the responsibility to take decisive measures to reduce market chaos. Our economy needs a healthy environment to quickly complete adjustments."
Hong Kong Island has long adhered to the free port policy of "active non-intervention". When the Hong Kong government released this news, it immediately attracted widespread attention from the international economic community.
After confirming the news of the Hong Kong government’s official entry into the market, the Soros Army immediately “lived in Bengbu”! They never expected that the Hong Kong government, which has always advertised a free market, would actually enter the market to fight.
However, Soros is an old hand after all. Once the arrow is shot, there is no turning back. Several speculators immediately held a meeting to discuss: Since the Hong Kong government has already entered the water, we can only take the small fish and the big fish together. Don't blame us for being ruthless!
On August 17, a message suddenly came from Russia: the head of the Russian government announced reforms to adjust fiscal and budgetary policies. These measures actually mean default and devaluation of major types of government debt
The Russian government suddenly announced a debt default and announced an indefinite suspension of foreign debt repayment. This shocking news gave international investors, including Soros and other hedge funds, a heavy blow. At that time, they held a large number of US dollar treasury bonds issued by the Russian government, and generally had a fluke mentality: once Russia's sovereign default, it would cause a serious chain reaction. Western European countries, especially Germany, could not sit idly by and would inevitably lend a helping hand to Russia.
But the opposite happened. Western Europe stood aside and watched, which immediately made hedge funds that relied heavily on bank credit for leverage deeply mired. In the face of the crisis, the banks' instinctive reaction to protect themselves was to "withdraw funds", and hedge funds were forced to close their positions hastily and scramble to escape, which in turn triggered a huge wave of short-term yen liquidation.
This situation made Soros and other international speculators determined to join forces to "take down" the newly established Hong Kong government and win!