Mixed in 1980

Chapter 387 Information Gap (23)

The reporter's words were clearly a trap.

Is that acceptable? It means that Soros can treat Hong Kong as an ATM, or at worst, he can only win a small victory and leave, and Hong Kong is bound to lose.

Zeng Ali adopted a cool and aloof demeanor, her eyes filled with disdain: "With the experience from the previous two times, our response is much more thorough."

"Soros will surely suffer a crushing defeat!"

"As Zhao Yuanyuan said, Hong Kong belongs to the people of Hong Kong, to the Chinese people, and is absolutely not to the Westerners."

"This battle must be won!"

Seeing that Zeng Ali remained tight-lipped, the reporter turned to Zhao Yuanyuan: "Ms. Zhao, do you also believe that we will definitely win this financial war?"

"We can win, but it's none of your business!"

Zhao Yuanyuan sneered and retorted without any politeness: "It's not hard to see from your words that you're siding with international speculators. What does victory have to do with you?"

The reporter quickly explained, "Ms. Zhao, I think you've misunderstood. I was just looking at the issue from an objective perspective. International speculators are much better prepared."

"How much money have international speculators prepared? How much money have we prepared? How much do you know about that? And what exactly is this so-called objectivity?"

Zhao Yuanyuan scoffed and said sarcastically, "The two of us sisters are leading the charge with over 200 billion US dollars in cash, followed by all the shareholders of Hang Seng Bank, 600 million Hong Kong people, and 12 billion Chinese people."

"In this battle, we will surely demonstrate the might of the Chinese people. Just wait and see!"

……

International speculators dumped their shares, and the two women bought them up!

The state speculators were well-prepared for this, and just like the previous two times, they took the lead, pouring all their funds into the market each time.

Soros was used to this, but couldn't understand it. He always thought these two women were crazy. What did Hong Kong's finance have to do with them?
One operates Lululemon, and the other operates Luoshen; neither is publicly listed, so Hong Kong's financial system has no impact on them. Why get involved in this mess?

"This time, I'll make you pay back everything you owe!"

Soros gritted his teeth and sneered to himself: "Once there are serious losses and the capital chain breaks, it will be the perfect time to buy Lululemon and Luoshen at rock-bottom prices."

International investors are envious of these two companies.

It's too profitable, too lucrative!

Many financial institutions wanted to invest in them and invite them to go public, which would have made their market value soar in a short period of time, but they remained unmoved.

Things will be different after this!
International speculators were very well prepared, and even if Hang Seng Bank's shareholders collectively jumped in to buy, they wouldn't be able to hold on.

The only way to maintain the exchange rate is to raise interest rates!
Once interest rates are raised, a drop in stock prices will be inevitable, and Soros's objective will be achieved.

Even without raising interest rates, banks can still influence the stock market by repeatedly borrowing and raising overnight interbank lending rates.

This happened the first two times!
The overnight interbank lending rate is not set by the Hong Kong Monetary Authority (HKMA). Instead, each bank quotes its own rate based on its own funding situation and market supply and demand, and the transactions are matched through the trading system.

"Miss Zhao, who did you learn all this from?"

Pinching his wife's cheek, Chen Fan was very curious. She usually seemed quite clumsy, but when interviewed, she could shout slogans loudly.

It's quite inspiring.

"You're supposed to be from the 70s, and you're still living in that era?"

Disdainfully brushing her husband's hand away, Miss Zhao quipped, "When I was in school or during the Cultural Revolution, there were slogans everywhere. You could just learn a little bit and that would be enough."

Chen Fan smiled. "So that's how it is!"
Soon, two days passed, and the foreign exchange and stock markets were stable. Zeng Ali and Zhao Yuanyuan gained an excellent reputation in Hong Kong.

The name of the Heroine of Liyuan became even more renowned.

However, their funds were limited, and by the third day they could no longer sustain themselves. The market began to fluctuate, but fortunately, a shareholder of Hang Seng Bank immediately stepped in to save the market.

Everyone understands that this is a life-or-death financial war waged with money, wisdom, and courage as weapons.

Both challengers and those who accept the challenge are well aware of the benefits and risks involved in their success or failure.

The repeated pulling and tugging continued until June 12th.

Reports of the yuan's devaluation began to appear on a large scale in the securities market, with many reporters mentioning their undercover investigations in the black markets of Shanghai and Guangzhou.

The black market exchange rate has fallen to 9.5 yuan for 1 US dollar.

The information gap is very serious in this era. Once a rumor starts, countless followers will start selling Hong Kong dollars and Hong Kong stocks.

Soros's media attack came at just the right time.

Aside from Chen Fan, who hasn't yet joined the fray, all of Hang Seng Bank's shareholders have already fallen, making this the perfect time to launch a media attack. After so many days of attacks, overnight interbank lending rates have already been driven up, and the stock market has inevitably been affected.

The Hang Seng Index plummeted 212 points that day.

"The harvest time has come!"

Soros swirled his wine glass with delight, gazing at the red liquid inside, as if it contained the lifeblood of Hong Kong.

Solo downed his red wine in one gulp and unconsciously raised the corners of his mouth: "There's only Chen Fan left. Once he falls too, the Hong Kong Monetary Authority will have no choice but to intervene personally."

The following day, as expected, Chen Fan stepped in to rescue the market, but only brought 200 billion US dollars. His funds had already flowed into the mainland to dig canals.

"Continue borrowing, continue selling!"

The interest rates on interbank loans have increased significantly, and the financing costs have also increased considerably, but as long as the final harvest is successful, it will all be worth it.

Success is at hand!

To this end, Soros began lobbying international financial institutions to sell off their Hong Kong stock assets. His offensive was even more aggressive than before, burning through Chen Fan's $200 billion in just one day.

"Next, Hong Kong will be a fat sheep!"

Soros manipulated things extensively overseas, offering options through his overseas foundations to decouple the Hong Kong dollar from the US dollar.

This operation has had a huge impact on Hong Kong.

Because I've been there.

In the early 1980s, under the manipulation of the British, the Hong Kong dollar was decoupled from the US dollar, which directly led to the Hong Kong dollar crisis in 1983.

The exchange rate quickly dropped from 5-6 Hong Kong dollars to 1 US dollar to 9.6 Hong Kong dollars to 1 US dollar.

International speculators are once again manipulating public opinion and spreading rumors, claiming in the stock market that the Hong Kong dollar is about to decouple from the US dollar and depreciate by 40%; the Hang Seng Index will fall to 4000 points...

It was this rumor that caused the Hang Seng Index to plummet by 300 points, accompanied by a massive sell-off of Hong Kong dollars, forcing the Hong Kong Monetary Authority to intervene.

June 14th!
For the first time since the start of the economic crisis, the Hong Kong Monetary Authority (HKMA) has taken action, reversing its previous inaction, and has used Hong Kong's fiscal reserves to absorb all the Hong Kong dollars.

To prevent a shortage of Hong Kong dollars and an increase in interbank lending rates, the Hong Kong Monetary Authority (HKMA) deposited the absorbed Hong Kong dollars into the Hong Kong banking system.

In this way, the stock market was finally stabilized.

After a long battle, the Hang Seng Index has fallen from 8000 points to 7300 points. International speculators could make a fortune if they closed their positions at this point.

But having finally waited for the Hong Kong Monetary Authority to intervene, and seeing that it could crash the Hong Kong stock market, who would be willing to give up? What they want is a sharp drop in the Hang Seng Index, not a slight drop.

"Damn, Soros is ruthless!"

Old Huo, puffing on his cigarette, slammed his fist on the table: "How long has it been? The Hang Seng Index has already dropped 700 points. If it falls any further, Hong Kong stocks will be ruined."

Li Zhaoji laughed and said, "What can we do? The bubble was already there. If we don't intervene and it gets attacked again, it might fall to 2000 points, let alone 4000 points."

"That's why people say those in finance are ruthless."

Old Huo took a drag of his cigarette and said sarcastically, "I've spent my whole life in manufacturing, and I haven't made as much money as I have in the past two years in finance. Who can I complain to?"

Upon hearing this, everyone rolled their eyes.

This is a classic case of someone who benefits but then complains. This kind of thing only happens once in a lifetime, and it's not over yet. Celebrating now is like popping champagne halfway through.

The situation in Hong Kong is unclear. International speculators are launching a fierce offensive, aiming to force the Hong Kong Monetary Authority to raise interest rates and reduce the flow of funds into the stock market.

Logically, an interest rate hike is inevitable.

If interest rates are raised, everyone present will suffer heavy losses. Not only will the prices of the stocks they bought plummet, but those who went long in the futures market will likely lose everything.

All eyes turned to Chen Fan.

Everyone has invested a lot and doesn't have much working capital. Only Chen Fan has a large amount of funds on hand. The previous statement that the funds would be put in place all at once to dig the canal was just a smokescreen.

Why are you all looking at me?

Chen Fan flicked his cigarette ash and shrugged: "With the current offensive from international speculators, ordinary stock investors are also selling off in large quantities. I can't hold out either."

"Stop joking around, tell the truth!"

Li Hongying rolled her eyes at him and said irritably, "Everyone's already at their wits' end, and they're all counting on you. When are you going to step down?"

PS: Second update is here, one more to come~
(End of this chapter)