Mixed in 1980

Chapter 388 The Final Blow (33)

Chen Fan did not answer Li Hongying's question, but instead asked, "Sister Ying, haven't you noticed that two people are missing from here?"

"Two people are missing?"

Li Hongying glanced around; all the shareholders of Hang Seng Bank were present. After thinking for a moment, she realized, "You mean Director Han and Xin Yingjie?"

Chen Fan nodded slightly.

Li Hongying frowned, still not quite understanding.

Chen Fan explained with a smile, "The higher-ups have prepared a large sum of money and are waiting for the right moment to forcibly intervene in this financial war."

"Official intervention in the stock market?" Li Hongying was stunned.

Seeing Chen Fan nod, everyone present exchanged glances, their brows furrowed with doubt. Li Zhaoji even asked, "Is this appropriate?"

Hmm... It's not appropriate before 98!
This was unthinkable before. Official intervention in the foreign exchange market to stabilize the exchange rate is a relatively common practice, but direct intervention in the stock market is unprecedented.

Just like in Singapore, where the stock market plummeted, there was no official intervention. Under the intervention of the "universal values" of the giant Midea, the market remained free and open.

As a global financial center like Hong Kong, the market demands greater freedom. According to US rules, the government cannot intervene in the stock market.

For example, the Hong Kong Monetary Authority's actions today involved using fiscal reserves to buy Hong Kong dollars and then depositing them into the Hong Kong banking system to stabilize the exchange rate and reduce interbank lending interest rates.

All of these are normal, but getting involved in the stock market is not.

In any case, in the eyes of bigwigs like the US and Soros, the market should be free and open so that the world can become their ATM.

"Does it matter whether it's suitable or not?" Chen Fan shrugged.

Americans follow the same rules as Chinese people. To stand idly by and watch the market be exploited is utterly brainless.

Besides, the big boss is the originator of intervention.

On Black Monday in 1987, U.S. stocks experienced a sharp decline, with the Dow Jones Industrial Average falling 22.6% in a single day.

To stabilize the market, the Federal Reserve purchased large amounts of Treasury bonds, lowered interest rates, and coordinated exchange rate policies with other countries, ultimately successfully preventing a stock market crash from triggering an economic recession.

In the future, plane crashes into buildings will trigger stock market crashes and subprime mortgage crises, requiring US government intervention in the financial markets to weather the storms.

Americans arrogantly believe: Just because I can do it doesn't mean you can!
Hong Kong's Financial Secretary responded that what speculators want to take away is not just money, but also the stability of Hong Kong's financial system and the confidence of 600 million people.

Seeing everyone's conflicted expressions, Chen Fan asked again, "Are you planning to be the ones to be fleeced, or to fleece the international speculators in return?"

Upon hearing this, everyone breathed a sigh of relief.

That's right. We're all capitalists. Whether the government intervenes or not is not important. What matters most is that everyone can make money. Who cares about the rest?

June 16th marked the third day of the Hong Kong Monetary Authority's intervention.

International speculators continued to sell off their holdings, as they still had a lot of capital, including borrowed Hong Kong dollars and a considerable amount of stocks.

The Hong Kong Monetary Authority was not to be trifled with either, and the two sides fought back and forth. Overall, international speculators benefited, and the Hang Seng Index fell another 100 points to 7200.

International speculators have already begun to celebrate. Hong Kong's financial sector is beyond saving. The Hong Kong Monetary Authority won't be able to hold on for more than a few days, and a new round of sharp declines will soon follow.

Therefore, they bought short positions in the Hang Seng Index again.

Correspondingly, Hong Kong capital followed suit by buying long positions, adopting a do-or-die stance.

"Hong Kong is finished. Although the process was different from what we expected, the goal was ultimately achieved, leaving China with only a mess!" Peng Dingkang laughed.

With the property market collapsing, the stock market collapsing, and the futures market collapsing, what future does Hong Kong have? The Chinese people still want to use Hong Kong as a window to the outside world? Not a chance!

Thinking of all this, Peng Dingkang laughed even harder.

It will soon be a year since we withdrew from Hong Kong. After nearly a year of depression, we can finally laugh freely. After this round of crisis, the global partnership program will quickly take effect.

If nothing unexpected happens, a large number of elites will go to the British Embassy with the passwords to initiate the immigration plan, and Hong Kong will face a brain drain crisis.

Hong Kong is ruined!

However, Peng Dingkang's smile didn't last long. A mysterious force suddenly appeared in the market, absorbing all the selling pressure. In just one day, the Hang Seng Index rose instead of falling.

Blue-chip stocks, in particular, were heavily bought up, and by the afternoon close, the Hang Seng Index had surged 600 points, rising to a high of 7800 points.

The Hong Kong Monetary Authority (HKMA) issued a press release announcing the activation of foreign exchange reserves to stabilize the market. In addition to Hong Kong's foreign exchange reserves, there are also foreign exchange reserves from the mainland.

The two sides have foreign exchange reserves exceeding US$2000 billion.

“Shit… How dare the Chinese? The market is free and open. Are they trying to destroy Hong Kong’s status as an international financial center?” Peng Dingkang cursed.

This was something he hadn't expected!
How can the authorities intervene in the stock market? That's unreasonable. Who will want to play with you in the future?

Soros thought the same thing, and while cursing, he smashed an ashtray, and then started smashing everything in sight.

"Fuck... Chinese people don't follow the rules!"

"This behavior must be condemned and stopped, otherwise our investment will be wasted."

Wall Street giants banded together, creating momentum in public opinion and putting pressure on China globally, while also lobbying Congress and launching diplomatic protests.

However, it was useless!
On June 17, the Hang Seng Index quickly returned to the high of 8000 points after the market opened. If the market closes at this point, international speculators will suffer heavy losses.

They established short positions at 8000 points and 7200 points respectively. The latter has already resulted in heavy losses, while the former seems to have broken even, but the costs are high.

Whether you borrow Hong Kong dollars or stocks, you have to pay high interest rates.

"Congratulations, everyone! May you make a fortune!"

Han, the director of Xinghuo Investment Office, came over specifically to express his gratitude to everyone, noting that the large amount of funds invested in the early stages had alleviated the pressure on the mainland and the Hong Kong Monetary Authority.

In reality, both the mainland and the Hong Kong Monetary Authority are here to wrap things up, and the amount of funds needed to activate is far less than previously expected.

"Mr. Han, congratulations to you too!"

Li Zhaoji smiled and lit a cigarette: "The funds that went up were all harvested by Japan and South Korea, so you also got a share."

Han Ting laughed heartily: "Thanks to everyone's help, let's put in a little more effort today and at least push the Hang Seng Index up to 8600 points."

If the index is pushed up to 8600 points, international speculators who shorted the market at 7200 points will be liquidated. These people are incredibly greedy, basically using leverage of 5 times.

Once it bursts, the financial war will essentially be over.

Naturally unwilling to suffer a crushing defeat, the state speculators, under Soros's leadership, quickly set their sights on three new targets: HSBC, Hang Seng, and Bank of East Asia.

They are the most important constituent stocks of the Hang Seng Index.

In other words, they have a very high weighting in the Hang Seng Index, and their stock price declines have a huge impact on the Hang Seng Index. If their stock prices are driven down, the Hang Seng Index will inevitably plummet again.

HSBC has the highest weight among them.

Originally, attacking HSBC would have been enough, but the real estate market collapsed ahead of schedule, and HSBC was acquired by Chen Fan ahead of time, causing the stock price to crash. Simply attacking HSBC was no longer sufficient.

Hang Seng Bank strictly controlled mortgage lending during the property market boom and was almost unaffected after the property market crash, instead becoming a high-quality stock in the eyes of investors and institutions.

The stock price soared as a result, indicating a bubble.

As for Bank of East Asia, like HSBC and Standard Chartered, it was deeply affected by the property market collapse, but it had not been attacked by Chen Fan before, showing a seemingly strong but actually weak performance.

It can be a key target!

International speculators quickly identified their targets and began borrowing large amounts of shares in HSBC, Hang Seng, and Bank of East Asia for the final showdown.

"Win or lose, take it all, lose..."

Soros gritted his teeth. From his attack on Britain in 1992 to his attack on Mexico City in 1994, and then to his sweeping conquest of Southeast Asia, Japan and South Korea, he had never lost.

We won't lose in Hong Kong either!

P.S.: It's the 20th, and I'm updating three times now. If you have any votes, please support me! Thank you!

(End of this chapter)