Time flies, and June is coming in a blink of an eye.

During these months, Li Zhongxin has been spending his last student time at the school.

However! Li Zhongxin is not a nerd who ignores the affairs of the window. During this period, he will also care about national affairs and various dynamics of several Asian countries.

Every three days, Li Zhongxin would discuss the facts with Keika Komura and study with Keika Komura how to operate such a thing in the future.

Chungshun Mitsui Bank is one of the largest super-large banks in Asia. Although there is not much money flowing into Asia from Chungshun Mitsui Bank, Komura Eika confirmed through other channels that Li Zhongxin said that there is a large amount of European and American places.

The funds began to flow continuously to the Asian region.

Li Zhongxin has thought about it this time. After Hong Kong returns, he will start to formally operate this matter. He must do a good job in the Asian financial crisis. This time it can even be said that Li Zhongxin has taken such a wire rope for the last time.

Because Li Zhongxin knew very well that such a thing would not be able to do in the future even if he wanted to do it.

For Zhongxin Company, it is an increase in assets. For China, it will give China's economy a lot of room for development. However, for other countries, Li Zhongxin is a devil who can eat people and doesn't spit bones.

We all know that all wealth is the same, and it is exchanged with the blood of countless people.

To put it bluntly, wealth is actually the accumulation of money. Equipping wealth with money is the product of the era of highly developed currency. In the early days of human civilization, the main form of wealth was still a physical object.

With the increasing development of productivity and the complexity of social production, and the monetary relationship became an important social relationship, the trend of money accumulation of wealth began to become popular. Then, the accumulation of wealth brought about the expansion of capital and directly promoted the entire society.

change.

However, if accumulating wealth is just accumulating money, it is just a pile of numbers. Entering the modern industrial society, our understanding of wealth will also deepen and complex. People no longer hold on to a bunch of numbers, inflation is the only one.

Monsters will devour your wealth at any time.

Therefore, Li Zhongxin had already considered a lot of things before the Asian financial crisis.

According to the information collected by Li Zhongxin for Xiaomura Huixiang, Li Zhongxin could see that when Thailand's real estate prices began to fall in mid-January 1995, hedge funds launched a tentative attack on the Thai baht - in the spot foreign exchange market

Selling large amounts of Thai baht.

Due to the intervention of the Central Bank of Thailand, the attack did not cause a crisis. At that time, the Mexican crisis had just occurred. All aspects, including the World Bank and the International Monetary Fund (IMF), were confident in Thailand, believing that except for the trade deficit, it was a biased person.

Outside of the big, Thailand's economy is much healthier than Mexico and does not have the conditions for a currency crisis.

Although the first battle was set, speculative capital did not give up. Quantum Fund's intelligence department has been collecting intelligence through various channels to analyze Thailand's economic and financial information.

Soros himself was in the rear, actively depositing margin and hoarding currency while spreading news in the market that the Thai baht was about to depreciate, attracting a large amount of speculative capital. With the downturn in Thailand's economy, the asset price bubble burst and financial sector problems emerged.

International speculative capital began to launch a large-scale offensive.

In February 1997, international speculative capital represented by Quantum Fund shorted the Thai baht in large quantum, borrowed the Thai baht (including borrowed the Thai baht through Bangkok International Banking Convenience [BIBF]) and sold it.

On February 14, the Thai baht exchange rate fell to its lowest point in 10 years of USD 26.18 baht. The Bank of Thailand resolutely fought back, purchasing large amounts of Thai baht in the foreign exchange market, while raising short-term interest rates, which greatly increased the capital cost of speculative capital.

Under the influence of these two measures, the spot exchange rate of the Thai baht was quickly stabilized, and the Bank of Thailand temporarily repelled the attacks of international speculative capital. But Thailand also paid a price: on the one hand, foreign exchange reserves were consumed in large quantities; on the other hand, the central bank of Thailand temporarily repelled the attacks of international speculative capital. But Thailand also paid a price: on the one hand, foreign exchange reserves were consumed in large quantities; on the other hand, the other hand, the foreign exchange reserves were consumed in large quantities;

, The negative impact of high interest rates on the domestic economy is gradually emerging, and the bad debt problems of banks and enterprises are beginning to be exposed.

Although international speculators encountered setbacks in this battle, they concluded that the Thai government would stick to a fixed exchange rate but lack strength, thus strengthening their determination to attack.

Regarding the issue of sticking to the fixed exchange rate that was widely criticized afterwards, in fact, as early as April 1996, the Bank of Thailand began to consider abandoning the fixed exchange rate, but it did not implement it.

At this time, it seems too late to give up the fixed exchange rate: due to the high foreign debt, if the Thai baht depreciates, it will inevitably cause the company's debt to appreciate and the assets to depreciate. Many companies will immediately become insolvent, which will lead to a rise in bank bad debts and even trigger a rise in bank debts.

The macroeconomic consequences of the banking crisis and the depreciation of the Thai baht are unpredictable.

Based on the above factors, coupled with the political turmoil, the heads of the central bank and the Ministry of Finance are afraid of taking responsibility, which has led to Thailand's undecision on the issue of abandoning the fixed exchange rate.

International speculators are getting closer and extending the battlefield to the forward market. As early as early 1997, international speculators began to buy US dollars and sell Thai baht on a large scale, "openly repairing the plank road and secretly spreading the Chen warehouse", and shorting the forward Thai baht in stages

.Thailand is still completely unaware of this and is still providing a large number of forward contracts.

In February and March of the same year, demand for similar forward foreign exchange contracts in the interbank market surged, reaching US$15 billion. This move triggered investors to follow suit, and Chuanxin Mitsui Bank also participated and further invested in the amount of funds.

enlarge.

By mid-May, international speculators began to sell large amounts of Thai baht in the spot market. By the end of May, the Thai baht had fallen to a low of 1 US dollar against 26.6 baht.

At this time, the Bank of Thailand began to fight back: one is to intervene in the forward market, sell a large amount of forward US dollars, and buy the Thai baht; the other is to join hands with Singapore, Hong Kong and Malaysian monetary authorities to intervene in the spot market, and buy the Thai baht for US$10 billion;

Third, domestic banks are strictly prohibited from lending Thai baht to international speculators; fourth, significantly increase the overnight lending interest rate.

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In addition, the Thai government has taken many extraordinary measures, including coercion and induce Thai banks to provide customer information on forward foreign exchange contracts; threatening to crack down on media that publish unfavorable news and dispatch police to track those who publish negative news. But all this is timely

It's too late, and the Thai baht has fallen into the trap of the maker's cloth.

International speculators confronted each other and continued to sell US Treasury bonds in June to raise funds to slaughter the Thai baht, while spreading news that Thailand has already lost its tricks.
Chapter completed!