Chapter 217 Long Hang Seng Index
Luo Hao sent the group management to their respective positions, leaving only Chen Shujian, Wang Guiqing and Sun Jie guarding Chen Lidong in the hospital.
After Chen Lidong's cardiopulmonary function was stable and his traumatic infection was under control, he left the intensive care unit and was placed in the veteran ward for special care.
After leaving the custodial unit, the elder of the Presbytery, Qingche Jiancong, checked Chaisang Embankment on August 12 and then visited the unconscious Chen Lidong and his family.
Luo Hao then briefly reported the relevant situation of Donghua to the Great Elder and his party.
He concealed Chen Lidong's "ingenious plan to calm the world", but confessed to the elder and relevant senior officials that he fabricated Chen Lidong's "helplessness" that he had woken up, just to keep Donghua running normally and ask all leaders to understand the "difficulties" of Donghua's senior officials.
”.
Luo Hao picked up the plane and proposed: Donghua has raised more than one billion funds and is preparing to go to Dongzhu to assist in the financial war. Please support and release the relevant departments. The funds will be returned before the end of September. He also promised that the money will definitely return to the country in the future.
, invest in infrastructure construction.
The great elder and the senior counselors around him all understood that Donghua wanted to make a fortune through financial war.
Someone in the entourage reminded: "The current financial war situation is very tragic, retail investors have been killed one after another, and Donghua may lose all his money if he goes into troubled waters."
Luo Hao said helplessly: "Before his death, the boss had arranged to use foreign funds to build a long position in the Hang Seng Index in Dongzhu. We mobilized funds there mainly to prevent the stock market fluctuations from causing insufficient margin to be liquidated."
The senior officials said nothing, but in their hearts they praised Donghua's family for being so interesting.
While Tung Wah is mobilizing manpower and material resources to fight floods and provide disaster relief, it is also raising funds to resist the pressure on the Hong Kong dollar and RMB from financial giants.
Such an enterprise deserves a personal visit from the Great Elder.
Afterwards, the great elder commissioned a painting with a four-foot-long nave and four words: Sacrifice the family for the country.
Luo Hao held it in his hand and looked at it for a long time, feeling mentally that this is called "Jane in the Emperor's Heart"!
Luo Hao was privately very worried about raising funds to speculate in futures in Dongzhu. This futures game was a heart-pounding game. Tens of billions of funds were gone, and Donghua's billions were probably gone without even a single sound.
Since July last year, international hot money represented by Solas has been aggressively shorting the Southeast Asian foreign exchange market, triggering a financial turmoil in Southeast Asia.
By the end of March this year, in less than a year and a half, the stock markets of various Southeast Asian countries had shrunk by more than one-third. The exchange rates of various currencies against the US dollar had fallen by more than 10% to 70%, with the Thai baht being the hardest hit.
The Korean won, Indian dong and Singapore dollar depreciated by 39%, 36%, 72% and 61% respectively. International hot money made a huge profit of US$4 billion, which was unparalleled for a while.
The Sauras have long been eyeing Dongzhu, who has just returned to China.
Unlike other Southeast Asian countries, Dongzhu's foreign exchange reserves are as high as more than 90 billion U.S. dollars, and because the Hong Kong dollar implements a linked exchange rate system, there is an automatic adjustment mechanism that is not easy to break, so Solas and others have placed their main battlefield on the stock market.
Since last year, Solas and others have used several means to cause the Dongzhu stock market to fluctuate. The Hang Seng Index fell from a high of 16,000 points to below 10,000 points by the end of last year and was close to 8,000 points at the end of June.
Since July, international hot money has aggressively shorted the Hang Seng Index and established a large number of short positions in the Hang Seng Index. At the same time, they have spread rumors, threatening that "the Hong Kong dollar is about to decouple from the U.S. dollar and depreciate by 40%" and "the Hang Seng Index will fall to 4,000 points" and so on.
.The purpose is to disturb people's hearts, create chaos, and then take advantage of troubled waters to fish in troubled waters.
This is a life-and-death financial war with money, wisdom and courage as weapons. Both challengers and challengers are well aware of the benefits and risks involved in their success or failure.
On August 5 and 6, international speculators sold more than 50 billion Hong Kong dollars in two days. The Dongzhu Monetary Authority mobilized a large amount of foreign exchange to collect all orders, stabilizing the foreign exchange market at the level of 1 US dollar to 7.75 Hong Kong dollars; and
Depositing the absorbed Hong Kong dollars into the Dongzhu banking system has the effect of stabilizing interbank interest rates and preventing the risk of a stock market decline due to an increase in interest rates.
In the following trading days from August 7 to 13, the Dongzhu government continued to adopt the method of absorbing Hong Kong dollars to stabilize interbank interest rates and thereby stabilize the stock market.
However, due to aggressive short selling by speculators in the stock market, the Hang Seng Index eventually fell to a low near 6,600 points.
At this time, the Solas were already complacent, and victory seemed to be just around the corner.
Some financial experts jumped out to accuse the government. The reason is that Dongzhu has always believed in free economy, and free economy is the cornerstone of Dongzhu. The government's measures to control the stock and foreign exchange markets have damaged the image of a free economy and undermined its status as a financial center.
Some people in the country also began to criticize the central government's actions and criticized the newly-appointed leadership team for acting haphazardly with the country's foreign exchange. In the name of Solas's power, they lamented that this would be a war with no victory in sight.
In the "Wall Street Journal" Solas has openly shouted: "Dongzhu will lose"!
At this time, Luo Hao, on behalf of Donghua, promised to raise funds to go long the Hang Seng Index in response to the government's actions.
What is this called? A rebel!
The central government has long been vocal about its support for the Dongzhu stock market, and is devoting a large amount of foreign exchange to support the Dongzhu government in stabilizing the exchange rate. This has basically become something that everyone in Blue Star knows, but there are few who stand on the side of the central government and the Dongzhu government.
Very few.
International speculators contacted some wealthy people in Dongzhu and prepared to borrow stocks from them to stir up trouble.
There are some domestic private capitals in China that are richer than Donghua. Those people are doing well if they don’t follow Solas and others in short selling. What if they support the government’s actions and it’s all in vain?
In the past few days, the Hang Seng Index once fell to 7,000 points. Who dares to block the breach knowing that it is a black hole?
Right now, Donghua not only helps the government block the Yangtze River, but also blocks the financial war!
Rebellious people like Donghua are absolutely rare. Of course, the top management should set Donghua as a model and let them set an example.
Therefore, the funds raised by Donghua were handled specially and quickly transferred to Dongzhu.
China's top leaders are eager to have private capital to contain the financial giants. If they can take a piece of meat from those financial giants, it will make everyone feel happy.
Of course, the reason why Chen Lidong dared to wade into troubled waters was because of his rebirth, but in the eyes of others, this was true patriotism!
After Donghua's money passed, the operation was simple and direct, just one operation: long the Dongzhu stock market, specifically the Hang Seng Index.
The Hang Seng Index plays with futures contracts.
Regarding futures, the author needs to say a few words here.
Futures trading is contract trading. People who buy futures contracts must buy the linked assets at a predetermined price on a specified date in the future, such as ore, steel, grain, stocks, index contracts, etc.
Hang Seng Index futures refers to the Hang Seng Index futures contract launched by Dongzhu Futures Exchange in May 1986.
Hang Seng Index futures are not trading physical objects, but contracts.
The Hang Seng Index contract is settled in cash, and its value is calculated based on the average value of the Hang Seng Index on the expiration date. Each contract is referred to as "Zhang", the contract multiplier is 50, and 1 point of the index is 50 Hong Kong dollars. If the Hang Seng Index is
1,000 points, then the value of one contract is HKD 50,000.
Investing in Hang Seng Index futures is both profound and simple.
The profound thing is that its value is closely related to the changes in the stock market and foreign exchange market. If you want to chase the rise and fall, you need to analyze various situations. Compared with investing in a stock, seeing the trend of the Hang Seng Index is much more complicated and profound.
The simplicity lies in a bet. If you buy that the Hang Seng Index will rise in a certain year and month in the future, then you will make a profit. If it falls by then, you will lose money. It is as simple as that.
Calculating profit and loss is also simple. Every time the Hang Seng Index rises or falls by one point, each contract will make a profit or loss of HK$50.
Historically, the Dongzhu Hang Seng Index futures market has always been dominated by bulls, because most traders switched from the stock market to the Hsang Index futures market. And the only trading direction in the stock market is to go long, so the Hang Seng Index futures market is also
There are many people betting on the rise.
However, since this year, longs in the Hang Seng Index futures market have almost all lost their money, just like those who play stocks.
The Hang Seng Index was 16,470 points a year ago, but now it is 6,660 points, a drop of 9,810 points. One contract lost HK$490,000.
Having said that, it is necessary to talk about the issues of long and short.
What is too much?
It's a bet that this thing will appreciate in value at some point in the future.
Going long in futures is the same as stock trading and is easy to understand.
For example, Zhang San predicted that the Hang Seng Index would rise and bought a contract. Today's index was 1,000 points and it cost him HK$50,000. Ten days later, the index reached 1,100 points and rose by 100 points. This Hang Seng Index contract in Zhang San's hand
It is already worth HK$55,000, so if the handling fee is not considered after delivery, Zhang San will earn HK$5,000.
If the index does not rise after 10 days, but falls by 100 points to 900 points, then after delivery, Zhang San can only get 45,000 Hong Kong dollars and lose 5,000 Hong Kong dollars.
This is an example of going long. To go long in futures, the gameplay is the same as stock trading. It’s that simple. Elementary school students can understand the math involved.
But there is another technique for futures, which is short selling. The short selling mechanism is a unique attribute of futures, and it is also the charm of playing futures.
How to play short selling?
Analyzing the logic, it creates a loan-debit relationship.
Let’s still set the Hang Seng Index to 1,000 points. Zhang San determines that the Hang Seng Index will fall in 10 days. Then he can go to the exchange and spend HK$50,000 to borrow a contract, promise to return it in 10 days, and sell it immediately at the current price.
I put HK$50,000 in my pocket.
Ten days later, the Hang Seng Index really fell by 100 points, and the value of one contract became 45,000 Hong Kong dollars. At this time, Zhang San only needed to spend 45,000 Hong Kong dollars to buy a contract from the market and return it to the exchange.
How was it? I made HK$5,000!
So what if it didn’t fall, but rose 100 points?
Zhang San will have to spend HK$55,000 to buy a contract and return it to the exchange 10 days later, resulting in a loss of HK$5,000.
This math problem is not difficult. If you understand this loan-debit relationship, you can understand the principle of short selling.
In fact, in short-selling futures trading, the borrowing and lending procedures are simplified, and you only need to bet big and small.
Do you understand? This is the difference between playing stocks and futures: you can make money only when stocks rise, but you can make money even if they fall when playing futures.
This is the charm of playing futures.
Chapter completed!