The literary era since 1979

August 10, early morning.

After Bai Ruoxue learned that the Hong Kong Stock Exchange and Futures Exchange announced the suspension of trading, she called Fang Yan immediately.

Fang Yan asked: "Will this have any adverse impact on our subsequent operations?"

"Please rest assured, Mr. Fang. Although the suspension of trading can buy more time for the Hong Kong stock market to recover, it will also reduce the impression of international hot money on Hong Kong stocks and accelerate the withdrawal of funds." Bai Ruoxue explained, "At present, there are still more than 2 futures contracts that have not been closed in the Futures Exchange alone. The systemic collapse is almost imminent. If my prediction is correct, the stock market will probably collapse even faster when it resumes trading in four days."

"That's good."

Fangyan took a sip of tea leisurely.

"Hong Kong wants to save the Hong Kong stock market from the turmoil, but unless it can raise sufficient funds to rescue the market, everything will be in vain."

Bai Ruoxue said in a serious tone.

"That's simply impossible. With the US raising interest rates and foreign capital flowing back, the funds from Hong Kong alone won't make much of a splash in the Hong Kong stock market, unless there's support from the mainland behind it." Fang Yan couldn't help but think of the Hong Kong financial defense battle in 97.

The two then talked about Hong Kong stocks and then U.S. stocks. As the root cause of the global stock market crash, most stocks were affected. The share prices were either halved or plummeted. For example, Coca-Cola fell from around US$53 to around US$37 in just two days.

"Let Coca-Cola fall for a while. When it drops to around $30, we will start buying at the bottom."

Fangyan smiled.

Bai Ruoxue was equally excited. Following Mr. Fang's instructions, she gradually sold all the Coca-Cola shares she had when the price was around US$50. The amount she obtained was now enough to buy back almost 1.5 times the number of shares.

After asking about his own investment situation, Fangyan casually asked about the situation of Buffett, Old Mike and others.

Bai Ruoxue said that Mike Sr., Buffett and others called them specifically to express their gratitude and thank them for the investment advice they provided.

Fangyan heard that Buffett and Soros did not panic and ask around for news, nor did they panic and sell stocks. Faced with a big drop, a significant shrinkage of wealth, and a sharp drop in their heavily invested stocks, they remained unusually calm, even when Berkshire Hathaway fell by 30%.

"I have obtained the consent of Buffett, Munk and others to buy Berkshire Hathaway shares at a low price in large quantities."

Bai Ruoxue said that if the plan is implemented smoothly, Fang Yan will become the second largest shareholder after Buffett.

"Of course they will agree. Only if we buy heavily can we prop up the share price of Berkshire Hathaway during the stock market crash."

Fangyan curled his lips and said, "To be honest, Buffett should thank me!"

Bai Ruoxue smiled sweetly and asked at what price the Hang Seng Index futures contract should be closed.

"Before the stock market crash, the Hang Seng Index was at 3968 points. I expect that in a few days, it may be cut in half at least."

Fang Yan said, "But we can't be too greedy. For high-leverage contracts, we should gradually close them from 2300 points to 2000 points. We can take risks with low-leverage contracts and try to go down to 1900 points. What do you think?"

Bai Ruoxue pondered for a while and agreed.

"Teacher Fang, apart from the stocks on the investment list, what do you plan to do with the rest of the money you earn this time?"

"Of course, all of it will be converted into Japanese yen."

Fangyan said seriously.

Bai Ruoxue originally thought that she would continue to trade Japanese yen foreign exchange, but she never expected that Fang Yan actually wanted to go long on Nikkei 225 futures.

"Japan's financial bubble is expanding rapidly. This stock market crash cannot curb this expansion. If nothing unexpected happens, the Japanese stock market will recover first after a short-term decline." Fang Yan said, "Ruoxue, what is the current Nikkei index?"

Bai Ruoxue said truthfully: "It is currently fluctuating around 19000 points."

As Fangyan remembers, the Japanese stock market peaked in 1989, with the Nikkei index reaching an exaggerated 39000 points. The bubble began to burst when it reached 4 points. With this in mind, now is a good time to switch to the Nikkei index, which can at least double its value.

…………Time passes day by day, but for the worried stock investors, each day is more torturous than a whole year.

When the Hong Kong stock market resumed trading, although the weather was good and the sun was shining, everyone's hearts were shrouded in dark clouds.

Everyone walking on the street seemed to have a feeling that a disaster was about to happen, especially the stock investors who were rushing to the Hong Kong Stock Exchange.

Their eyes were bloodshot, their faces were pale and haggard, and their footsteps were heavy like death row prisoners about to be executed.

The opening time of the day was delayed by one hour than usual and officially opened at 1 o'clock.

However, the situation has not changed at all, and there are still only sellers but no buyers in the stock market.

The sellers raised the price to sell, but no one dared to enter the market to buy. After 15 minutes, the market conditions suddenly deteriorated sharply.

In just 15 minutes, the Hang Seng Index fell 650 points.

The retail investors and traders sitting in the hall looked pale, panic spread, and wailing sounds were heard one after another.

"Don't fall! Don't fall!"

"My house, my house! I invested all the mortgage money in the stock market. What should I do now?"

"Save the market! Why don't you save the market? If you don't save the market, I'm done! I don't have the money to pay the margin anymore!"

"..."

Most people originally thought that "it has reached the bottom and the only way to go is upward", but they did not expect that the stock market could still "make holes".

Another 30 minutes passed and the market fell another 250 points. As a result, in less than an hour, the Hang Seng Index had fallen by more than 900 points.

Even though it rebounded afterwards, the Hang Seng Index still fell by nearly 845 points at the close of the morning, heralding the beginning of the nightmare of Hong Kong stocks.

"How could this happen? How could this happen?"

Ni Xu collapsed in the chair in the rich man's room. When he thought about the fact that his belongings had shrunk by half, he felt a sharp pain in his chest.

"Dad, I heard from my friends that there will be a lot of measures to rescue the market."

While Ni Zhen was comforting Ni Xun, he was also comforting himself.

"Yes, we must save the market. We must save the market in this situation. We can't just sit there and watch it die!"

There was a hint of anticipation in Ni Xu's eyes.

Not only him, but all the investors who suffered heavy losses in the stock market crash were looking forward to the gods coming down to earth to save the market and provide relief.

However, the market conditions in the afternoon did not improve but became worse, with selling spree in the market and investment sentiment becoming extremely pessimistic.

Investors not only cut off their arms to survive, but also tried every means to sell Hang Seng Index futures in the futures market for hedging. Just when everything was bleak, the Hong Kong government finally launched a series of rescue measures, including exempting listed companies from restrictions on buying back their own shares.

The Foreign Exchange Fund, the Jockey Club, HSBC and others have all entered the market to buy stocks, hoping to play a leading role.

At the same time, 20 billion Hong Kong dollars were arranged to maintain normal settlement in the futures market, but the miracle day did not occur.

In one day, the market fell by 1120.7 points and closed at 2241.69, a drop of more than 33%.

It set a record for the world's largest single-day drop, and Hong Kong's futures market hit the limit down four times, plummeting by as much as 44%.

The next day, the front page of Ming Pao reported this news, describing the stock market crash as "a landslide"! (End of this chapter)