China's unclear attitude prevents international speculators from rashly investing funds in China's financial market.
Soros turned off the TV: "China's move is indeed ruthless. If international speculators rashly enter the market at a high point, the losses will be trivial. Those small players who follow the trend will definitely be trapped, leaving large sums of money in China."
.As the main players leave the market, international predators who need to recover their losses will inevitably attack the financial markets of other countries. By then, the global financial crisis will break out. By then, in addition to China "not lacking money"
, other countries will face the dilemma of shortage of foreign exchange reserves.
If international hot money did not enter China and instead flowed into the financial markets of other countries, and countries closed their doors tightly and held high the banner of trade protectionism, a global economic crisis would not be far away. After China consolidated its domestic financial market, it relied on
The high growth brought about by the adjustment of industrial structure and the harm of the economic crisis have been minimal to China. However, those Southeast Asian countries without technological advantages will become the first choice destination for international speculators."
Soros sighed when he thought of this. If this happens, will those international speculators follow his lead and attack China's financial market? After all, no one is a fool. The only thing Soros can do now is to enter the market as soon as possible.
The Chinese financial market was completely defeated before strong barriers could be formed.
But can China really tolerate the world's financial speculators, led by Soros, to plunder the people's hard-earned money without any scruples? No, of course not.
At 8 a.m. Beijing time, Soros entered the Chinese foreign exchange market with overwhelming force and sold a large amount of RMB. The Shanghai and Shenzhen stock markets also fell under the influence of the decline in the foreign exchange market.
Under the leadership of Yaoxiang Group, more than a dozen large domestic groups have successively invested more than 800 billion in capital, all of which have been invested in the Lushen stock market.
State-owned enterprises managed by the State-owned Assets Supervision and Administration Commission also invested 700 billion to buy high-quality stocks when the index was low, private small and medium-sized investment funds invested about 100 billion, and domestic private enterprises invested no less than 600 billion.
The country’s comprehensive investment exceeds 2.2 trillion.
This amount of money was just a drop in the ocean in the face of a large amount of international hot money, but it still played a leading role, and private funds subsequently invested in the stock market.
In Conference Room 3, Zhongnanhai, Beijing, the Prime Minister said: "Mr. Chen, what do you think of the current situation?"
"The current situation is not optimistic. What we are protecting is not only China's financial market and economy, but also the foundation and future of the Chinese nation. It is time for the China Securities Regulatory Commission to take action."
Just after the market opened in the afternoon, the China Securities Regulatory Commission released nearly 100 billion unfrozen shares of more than 80 stocks that had been approved in advance and poured them into the foreign exchange market.
At this time, the Chinese government announced that it would invest 1.2 trillion in foreign exchange reserves to rescue the market.
Due to the Chinese government's rescue action, the Lushen and Shenzhen stock markets suddenly soared like a rocket that afternoon. By the close of trading, the stock indexes of the two cities had risen by 143% respectively, and the total turnover increased 43 times compared with the previous trading day, reaching an astonishing 10.424 billion.
The exchange rate in the foreign exchange market also ranged from RMB 9.32 to 1 U.S. dollar to 8.17 to 1 U.S. dollar.
China's rescue operation obviously caught Soros and international speculators off guard. However, Soros is not worried. He knows better than anyone the power of international hot money.