Mixed in 1980

Chapter 386 Bullish Operations (13)

In order to win the Grand Bauhinia Medal, Zeng Ali and Zhao Yuanyuan both paid a heavy price, twice intervening in the market to save it and then suppressing the stock price to exit the market, each losing more than a small amount of money.

The unit is US dollars!

Zeng Ali doesn't care about the money. Neither her family nor she herself is lacking in it. Sometimes, reputation and honor are more important.

Those were amulets I saved up for the children!
With these honors bestowed upon them, the children grew up and had plenty to brag about: how dangerous the financial war in Hong Kong was back then, how my mother was this and that…

For their contributions in the previous two battles against international speculators, Zeng Ali and Zhao Yuanyuan have already received another honor: serving as members of the CPPCC Standing Committee.

In the business world, these honors become especially important when a company reaches a certain size.

Therefore, Zeng Ali warned Zhao Yuanyuan once again: "When the financial war breaks out again, you must show the spirit of defending Hong Kong when facing the media."

Miss Zhao teased, "A careerist!"

No sooner had she finished speaking than Zeng Ali pounced on her, lazy and clumsy, just needing to be taught a lesson: "If you dare to hold us back, I'll give you a good beating every day from now on."

The two sisters argued for a while before calming down.

Zhou Wenya arrived with documents and handed them to Chen Fan: "The international speculators are particularly well-prepared this time. It seems they intend to completely destroy Hong Kong."

Chen Fan lit a cigarette, took a puff, and then opened the file: "Let me give you a brief explanation. This pile of data is giving me a headache just looking at it."

Zhou Wenya nodded slightly and explained, "As before, international speculators are borrowing Hong Kong dollars from banks and financial institutions, with a scale of approximately HK$2000 billion."

"In addition, they have added another source of funding. Starting in February, they have been issuing Hong Kong dollar bonds with maturities of one to two years in Hong Kong."

"With an annual interest rate of 11%, it was widely welcomed by the market as soon as it was launched, with a large number of people and businesses purchasing it, raising more than HK$2500 billion."

Upon hearing this, Chen Fan frowned and took several puffs of his cigarette: "In other words, they have more than HK$4500 billion, which is nearly US$580 billion, at their disposal."

How much foreign exchange reserves does Hong Kong have?

“More than 920 billion US dollars,” Zhou Wenya replied.

Chen Fan leaned back and gently tapped the armrest: "It's equivalent to more than half. It's impossible for it to crash the exchange rate, but if it triggers a sell-off, it will be very troublesome."

Zhou Wenya added: "The above figures do not include British capital. British capital has not given up. Through financial monitoring, it can mobilize more than HK$500 billion."

"The British haven't given up yet?" Chen Fan asked in surprise.

Zhou Wenya subtly curled her lip: "How could I give up? I followed the international speculators and made a small profit the first two times. If I can make money, I'll definitely continue."

"Since their reputation in Hong Kong is already ruined, they don't mind it getting even worse."

Upon hearing this, Chen Fan touched his nose: "That's true. After the economic crisis, we'll settle accounts with the British. They all owe HSBC and Standard Chartered money."

Zhou Wenya sighed softly: "Being insolvent is quite troublesome to deal with."

"It doesn't matter, just go into bankruptcy liquidation."

When it comes to foreign investment, Chen Fan isn't afraid of not being able to recover the loans. On the contrary, he'll lend them another sum of money to help them overcome their difficulties. Taking them all in one fell swoop is the best strategy.

Bankruptcy should be declared, and liquidation should be carried out as appropriate.

Even if bad debts occur, it doesn't matter. On the surface, it may seem like a loss, but in reality, once you get the land and houses, the property prices will rise in a few years, resulting in huge profits.

If foreign capital were truly allowed to overcome its difficulties, the loans could be recovered, but the future real estate dividends would also be swallowed up by foreign capital – don't even think about it.

If foreign capital is to re-enter the market in the future, it can be summed up in one sentence: spend money to buy houses and land!
flicked his cigarette ash and picked up the documents again: "Let's talk about the housing market after the economic crisis is over. Now, let's talk about the stock market. How much have international speculators hoarded?"

Zhou Wenya shook her head slightly: "Many data cannot be monitored, but the scale is definitely not small. When Hang Seng shareholders sell their shares to drive down the price, international speculators buy them up."

"The money they used was Hong Kong dollars they raised."

"At that time, with both Hong Kong dollars and stocks being sold off, we will need to prepare a large amount of funds to save the market under the double blow."

Chen Fan nodded slightly, and Zhou Wenya continued, "The focus is still on the futures market. Soros's funds alone hold 20 short positions."

"According to the agreement, for every 1 point the Hang Seng Index falls, each short position will generate a profit of up to HK$50. If the Hang Seng Index plummets by 1000 points, the profit could reach HK$100 billion."

This is only from Soros's company!
Other funds, as well as British and international speculators, all combined, amount to an astronomical sum; the ATM is no joke!

After getting a general idea of ​​the situation, Chen Fan called the shareholders of Hang Seng Bank to his home for a meeting the following day.

The father and son, Zhao the Ship King and Hua the Third Young Master, were travel-worn when they saw Chen Fan and couldn't help but complain: "No wonder you won't stop, kid, you're treating inkpad like a Japanese devil."

"My son and I almost didn't make it back."

“It’s all in chaos. Many local Chinese have been killed and shops have been smashed. Damn it, I won’t be able to swallow this anger until I’ve killed them.”

Everyone was furious when this was mentioned.

But what can we do when we're just businessmen? As the saying goes, only when our motherland is strong can those of us abroad stand tall.

The rejuvenation of China still has a long way to go.

All that can be done now is to continue attacking the Indonesian rupiah. By May, the exchange rate of the rupiah had fallen to 20000 to 1 US dollar, making it practically worthless.

They also reaped a great deal of wealth. After grumbling and cursing for a while, everyone calmed down, lit cigarettes, and remained silent for a long time before starting to discuss the Hong Kong issue.

The most important point is to go long in the futures market!

Regardless of the type of futures, for every number of short positions, there must be a corresponding number of long positions. When Soros and international speculators short, they follow suit and go long.

This is true not only in Hong Kong, but also in the United States and the United Kingdom.

In the US and UK, institutions can also go long on Hang Seng Index futures. Soros has many short positions on the New York Stock Exchange, while British capital operates in the UK.

After Chen Yi's wedding, everyone started working on this, investing massive amounts of money and using double leverage to buy a large number of Hang Seng Index long positions.

Li Zhaoji flicked his cigarette ash and took another puff: "The Hong Kong dollars raised by international speculators have very high interest rates, so they can't hold them for long. The outcome will definitely be decided in a short period of time."

Chen Fan nodded: "We'll fight with everything we have!"

Financial warfare is like this: it may seem to be conducted without firing a single shot, but its harm may be greater than bringing an aircraft carrier battle group to your doorstep.

Military strikes can only destroy buildings and cause casualties. Financial warfare, on the other hand, is highly covert and destructive. It causes chaos and collapse of the financial system, public panic, and can even trigger systemic economic and social crises.

Like those Southeast Asian countries, the intensive industries that took over from Japan, South Korea, and Hong Kong in the 1980s had their wealth accumulated over more than a decade looted.

The worst off is South Korea, whose entire pillar industry has been plundered and turned into leverage by the Americans to hold South Korea hostage.

As a joke from later generations goes: Samsung is the greatest company in South Korea, but only the Koreans themselves don't know that Samsung doesn't belong to South Korea.

If Hong Kong loses this financial war, its fate will not be much better than South Korea's. The losses in the financial market are secondary; what is more frightening is the subsequent bottom-fishing.

Just like Chen Fan's bargain hunting in Southeast Asia!
For everyone present, it was a different story. They all put up huge sums of money to buy long positions, and if they couldn't hold onto the Hang Seng Index, the losses would be enormous.

Only by pushing up the Hang Seng Index can we make a profit!

Everyone shared their experiences openly and without reservation. Now we're all in this together, sharing both prosperity and adversity.

Today's meeting is more like a pre-battle mobilization.

Soros is also making preparations intensively, under even greater pressure than Hong Kong Capital, whose Hong Kong dollars are all obtained at high interest rates.

Several hundred billion Hong Kong dollars—the interest alone could crush a person.

"Hong Kong is indeed the toughest bone to gnaw on, but it is also the most succulent."

In June, Soros decisively issued an order, and together with international speculators, sold HK$400 billion worth of stocks and HK$400 billion worth of shares on the same day.

"It's about to begin!"

Shen Bi stared at the computer screen and immediately issued a sell order, now he was in the same boat as Soros.

After losing HSBC and its influence in Hong Kong, Shen Bi has been heavily criticized since returning to Britain. Besides criticizing Peng Ding Kang, he has been trying to find ways to rebuild his business.

This is the opportunity!
This is also the last chance for Pengdingkang.

Upon returning to England, he was dubbed the "most incompetent governor," having almost detached himself from the core of power. He also needed this opportunity to return to the inner circle.

Only by returning to the core of power can one have a chance to take revenge on Chen Fan.

Peng Dingkang had never hated anyone so much. Chen Fan was an exception, making him hate him so much that he was willing to use underhanded means to try to eliminate him physically.

Unfortunately failed!
Selling off is only the first step; public opinion is the most important factor. If only speculators participate and the market doesn't follow suit, international speculators will gain nothing.

In the securities market, negative news is everywhere, among which one stands out the most: the exchange of 3000 billion Hong Kong dollars between the mainland and Hong Kong dollars.

With exchange comes value, and that's what matters!
Speculators loudly proclaimed that the "yuan" would depreciate by 10%, and manipulated exchange rates on the black market in Shanghai and Guangzhou, just as Chen Fan had done to the Soviet Union.

The media is now reporting extensively that the dollar has depreciated to about 9.5 yuan per US dollar on the black market, and the Hong Kong dollar will also depreciate accordingly when exchanged for it.

Spreading rumors that the Hong Kong dollar will depreciate is an attempt to undermine people's confidence in the currency.

Speculators resort to almost any means necessary, including spreading rumors about the instability of the mainland banking system, all in an effort to create psychological conditions for their attack on the Hong Kong dollar.

Zeng Ali and Zhao Yuanyuan held a press conference immediately.

When asked by reporters, Zeng Ali stated directly: "I have always been in mainland China and have never heard of the 'yuan' starting to depreciate. The exchange rate is currently normal."

"China's foreign exchange reserves are as high as US$1400 billion, ranking first in the world. The exchange rate market is unlikely to be affected, and everyone should have confidence."

The reporter then asked, "Ms. Zeng, Soros has launched another attack. Do you think Hong Kong's financial system can hold out?"

Zeng Ali: "Of course! This is the third time Soros has launched an attack. We were able to defend against the first two times, and we will definitely be able to do it this time as well."

The reporter raised the corners of her mouth slightly: "Ms. Zeng, Soros won both times before, and this time the international speculators are even better prepared."

"It's almost impossible to hold on like the previous two times. Do you think we can accept Soros and international speculators winning a small victory and leaving the market?"

"As long as it doesn't collapse, Hong Kong can accept it?"

P.S.: First update here, two more to go~ One chapter was under review last night, I didn't notice, it seems it was only released this morning, how embarrassing~
(End of this chapter)