Chapter 513 Hong Kong Island Showdown 2: Hong Kong Will Not Sleep Tonight!

In August, the weather in Hong Kong Island was hot and muggy, and the entire financial market was in a hot turmoil.

The storm was coming, and the dark clouds were pressing down on the city.

Because many hedge funds and international speculators had suffered losses due to Russia's sudden debt default, which led to the devaluation of the ruble, they gathered in Hong Kong Island, a tiny place in Hong Kong, eager to cash out from the Hong Kong Island market and recover their losses.

Since the beginning of August, several European and American investment banks and hedge funds have continuously and simultaneously launched a large-scale attack on the Hong Kong Island foreign exchange market, stock market and Hang Seng Index futures market, frantically selling Hong Kong dollars and Hang Seng Index futures in Hong Kong Island. Its elite troops are the largest hedge fund on Wall Street - Quantum Fund.

After the close of Friday, August 14, Wang Danrong reported to Li Xiaofan that after they arrived in Hong Kong Island, international speculators added about 80,000 short contracts on the Hong Kong stock index futures. For every 1,000 point drop in the Hang Seng Index, international speculators can make a profit of 4 billion Hong Kong dollars.

On Monday, August 17, due to Russia's debt default, global stock markets plummeted. It happened to be the anniversary of the victory of the Anti-Japanese War, a public holiday, and Hong Kong was closed, fortunately avoiding this wave of shock waves.

Tuesday, August 18, the first trading day after the holiday.

At this time, the US stock market has rebounded sharply, the yen has also begun to stabilize, and stock markets across Asia have rebounded across the board.

Because the news of the Hong Kong government's entry into the market has boosted the confidence of market investors, there are fewer selling orders, and many investors have tentatively entered the market to support the Hong Kong government.

On that day, the Hong Kong government and Li Xiaofan both retained their strength, and the Hong Kong stock index maintained a narrow range of fluctuations. The market closed down 2 points and closed at 7293 points, closing with a small cross star.

On August 19, the Hong Kong government, which was supported by the mainland, entered the market again in a big way, and the Hang Seng Index climbed 412 points to close at 7705 points.

On August 20, the Hang Seng Index continued to rise, but encountered initial resistance at the high of 7,900 points. The Hong Kong government's buying also slightly converged, and the index closed at 7,825 points, up 120 points.

On August 21, Soros and other international speculators attacked in the late market, causing the futures index to plummet 200 points in the late market. The index softened on the same day and closed at 7,710, down 115 points.

In mid-August, Li Xiaofan asked Tang Xinyi and Lin Muchu, who were stationed in the United States, to find a way to increase the pledge rate from several major banks in the United States, and to obtain guarantees from Yahoo Yang Zhiyuan and Softbank Group, and then the Singapore headquarters temporarily borrowed 80 million US dollars from local merchants such as Mr. Tang and Lim Kok Thay and local banks in Singapore.

By the afternoon of Friday, August 21, Li Xiaofan, who was stationed in Hong Kong Island, had added another 200 million US dollars in ammunition remitted from the United States and Singapore.

Thus, when the Hong Kong stock market closed on Friday afternoon, August 21, Li Xiaofan had nearly HK$15 billion in funds.

On Monday, August 24, in order to break the speculators' plan to force the Hang Seng Index to fall for arbitrage, the Hong Kong government reorganized its strength, took the initiative, and used HK$5 billion to intervene in the market. At noon, buying suddenly stopped, and the stock index plummeted 300 points. Two minutes later, it was pulled back to the 7,900 point level by the Hong Kong government funds and Li Xiaofan's large-scale buying.

The Hang Seng Index rose more than 300 points that day and closed at 7,902 points.

On August 24, there were only four days left before the August contract expired on the 28th. After initially stabilizing the stock market, the Hong Kong government began to move to the futures market with huge funds. Feeling the Hong Kong government's determination to fight to the end, some international speculators wanted to temporarily avoid the edge and move the August contract to September in order to fight a protracted war.

In order to solve the problem of international speculators once and for all in August, the Hong Kong government took the initiative to sell short about 40,000 September contracts on the 24th, and the price of September contracts was hit to 7,200 points. Because the average opening price of international speculators on August contracts is 7,500 points, this means that speculators who want to transfer positions to September must bear a loss of 300 points on each contract.

Under the siege of the Hong Kong government, the retreat of international speculators was blocked, and most stock index futures contracts were left in August, with only about 10,000 contracts transferred to September.

During this period, Li Xiaofan took advantage of the opportunity to open 10,000 new August Hong Kong stock futures contracts.

At this time, because the average opening price of international speculators led by Soros on Hong Kong Island Hang Seng Index futures was 7,500 points, if Soros and other international speculators wanted to win, he had to smash the Hang Seng Index below 7,500 points. Similarly, if the Hong Kong government wants to win, it must ensure that the Hang Seng Index breaks through 7,500 points. It can be said that 7,500 points is the life and death line of the two sides.

On August 27, the day before the Hong Kong Island stock index futures settlement decisive battle in August, the global financial news was extremely bad. The Dow Jones Index fell 217 points, and European and Latin American stock markets fell 3% to 8%. The US, European and Asian stock markets fell across the board, and the Hong Kong Island stock market faced severe tests.

On the 27th, the international speculator Quantum Fund even declared to the outside world: The Hong Kong government will lose!

Li Xiaofan watched Druckenmiller, the chief investment strategist of Quantum Fund, who speculates in the Hong Kong Island market, being interviewed by CNBC on the TV in his office in the Bank of China Building. This arrogant guy first admitted that Quantum Fund had been shorting the Hong Kong dollar and the Hang Seng Index futures. He also said that due to the economic recession in Hong Kong Island, the Hong Kong government will end in failure in the "war" launched against international investors in the foreign exchange market and the stock market.

Although Soros's Quantum Fund has always made big moves, it has never publicly admitted that it is attacking a certain currency. However, this kind of event of publicly challenging a government in the name of a company or some people and threatening to defeat a certain government is unheard of, unprecedented, and extremely rampant!

These guys dare to be so arrogant because the international speculators such as the Quantum Fund have huge funds at hand, and their strength exceeds the foreign exchange reserves of the Hong Kong government. These rampant international speculators are full of confidence, and it seems that they are determined to win this battle.

On that day, audiences around the world were shocked by the arrogance of the international speculators such as the Quantum Fund.

Suddenly, the sky over Hong Kong Island was covered with dark clouds, and everyone was worried about the future of Hong Kong Island...

On the 28th floor of the Bank of China Building, only Li Xiaofan knew that these international speculators would pay a bloody price for today's rampantness, and the decisive battle on the 28th would give them a loud slap in the face! They underestimated the determination of the mainland...

On the 27th, as soon as the market opened, international speculators went all out in the stock spot market, trying to bring down the index. The Hong Kong government took a decisive battle posture with international speculators.

Because tomorrow, August 28, is the settlement deadline for stock index futures, international speculators have a large number of futures orders that expire and must be sold. If the stock market and foreign exchange market can stabilize at a high level or continue to break through on that day, international speculators will lose hundreds of millions or even more than one billion US dollars in capital, otherwise the tens of billions of Hong Kong dollars invested by the Hong Kong government a few days ago will be thrown into the sea.

The fierce battle between the two sides on that day was far more thrilling than the day before!

On August 27, the day before the decisive battle on the settlement day.

At 10 am, the Hong Kong stock market opened.

Li Xiaofan, Zhou Xiaoqing, Wang Danrong and others stared at the six market display screens in the office.

At the beginning, the speculators' selling orders came like a tidal wave, and the 33 constituent stocks of the Hang Seng Index were strongly suppressed at the opening.

In the first 15 minutes, the transaction volume reached HK$1.9 billion;

In the second 15 minutes, the transaction volume was HK$1 billion.

In the 15 minutes before the market closed, the battle entered a white-hot state, with a transaction volume of up to HK$8.2 billion! The situation was so tragic that all traders on the market were stunned.

International speculators bombarded one after another throughout the day, and the Hong Kong government took a decisive battle posture, using HK$20 billion and entrusting 10 brokerage firms to chase and intercept 33 Hang Seng Index constituent stocks.

Li Xiaofan commanded his traders to assist the Hong Kong government and bought more than HK$3 billion in spot stocks that day. The stocks he bought were mainly concentrated in HSBC Holdings, Hong Kong Telecom, Cheung Kong Holdings, Hutchison Whampoa, and China Telecom, which are super blue-chip stocks.

Finally, the Hang Seng Index closed at 7932 points, up 98 points from the previous trading day, which was the highest point since November 4, 1997.

Since the Hong Kong government entered the market on August 14, it has bought a large number of August stock index futures contracts that were shorted by international speculators. With the help of Li Xiaofan, the futures index was pushed up from 6610 points before entering the market to 7932 points, which was higher than the average opening price of 7500 points for investment speculators, causing a heavy blow to speculators.

On the night after the closing of Thursday, the 27th, Li Xiaofan and the people of Hong Kong Island, as well as international speculators and hot money, experienced a sleepless night, because tomorrow, August 28, will determine the future of Hong Kong Island's economy.

Tonight, Hong Kong Island is sleepless.

Li Xiaofan is also sleepless.

Tomorrow, he, together with the Hong Kong government and international speculators such as Soros, will usher in a decisive battle that witnesses history.

The dark clouds are pressing down on the city, and the city is about to be destroyed, and the armor shines towards the sun and the golden scales open!