He has always vowed to protect Hong Kong's financial market and ensure the stable development of Hong Kong's economy at all costs.
But now he has to deliver ammunition to the enemy!
The faces of Deputy Director Zhuo and Director Lin are getting more and more ugly, but this is their home field and he is not a national cadre. What can be done to him?
Li Jinghan knew better. He said calmly, "Director Lin, Director Zhuo, and Mr. Yao are not short-sighted. He should have other considerations that he did not tell us."
"Lending Hong Kong dollars to Soros is sending ammunition to the enemy, so what else can we think about?" Deputy Director Zhuo blew his beard and glared, looked at Yao Yuan who had just gone over to chat with Feng Zhijian, let out a heavy breath, and said,
"If we had known this, we would have done it ourselves. Private entrepreneurs are private entrepreneurs after all, and they forget their loyalty when they see profits."
Director Lin was relatively calm and said, "Director Zhuo, don't worry. I'll see what Mr. Yao says later. President Li is right. He is not a short-sighted person."
Deputy Director Zhuo said, "Is this a ploy? There's no reason to hide it from us, right?"
Li Jinghan also couldn't understand Yao Yuan's thoughts.
At this time, Lin Wei moved to the seat next to them and sat down.
Everyone knows that this is the chief financial officer of Dongfeng Group, who manages money.
Lin Wei said, "Three leaders, we have held many analysis meetings before, and the conclusion is that Soros will not let go of Hong Kong under any circumstances. The three leaders also agree with this conclusion."
"Well, the higher-ups agree with our judgment, but it doesn't seem to be related to what you are doing now, right?" Director Lin said calmly.
Lin Wei continued, “Since it is inevitable, the sooner Soros exposes his full strength and plan, the better it will be for us. If God wants to destroy him, he will definitely make him crazy first. We don’t believe in God, but we can ignore it.
Use a little trick to drive them crazy."
"Understood!" Li Jinghan suddenly slapped his thigh and said with excitement, "Mr. Yao wants Soros to continue to suppress the Hong Kong dollar in the foreign exchange futures market. The harder the suppression, the better, which means they have to use more funds."
He said with excitement, "When we launch an all-out counterattack and raise the Hong Kong dollar exchange rate, Soros won't be able to leave even if he wants to!"
"Mr. Lin, is this what you mean?"
Lin Wei smiled and nodded, "That's basically what I mean."
There were several layers of meaning that Lin Wei didn't say out loud. According to Yao Yuan's meaning, there was no need to explain to them. They only needed to carry out the plan. Those who should be understood would naturally be understood in due course, and those who couldn't understand would be useless even if they were explained.
Furthermore, the Dongfeng team has another plan of its own.
You know, how could Yao Yuan spend all his wealth just to protect Hong Kong's financial market?
To put it bluntly, what does Yao Yuan have to do with the life and death of Hong Kong and Hong Kong people?
Based on the level of national financial security and national justice, Yao Yuan regards safeguarding the stability of Hong Kong's financial market as his first task. This is more important than the vast majority of so-called 'patriotic Hong Kong businessmen' who "talk about doctrines and only think about business"
Much more noble!
On this basis, it is only natural to formulate your own plan and make some money.
Why can’t we make money from Hong Kong? Why can’t we make money from the rich people in Hong Kong?
Of course, these words cannot be said openly to Director Lin, Deputy Director Zhuo and others, or even said out loud, lest they add obstacles to the implementation of the plan.
Director Lin and Deputy Director Zhuo didn't think too deeply. They were relieved knowing that Yao Yuan was not helping others to do evil. After all, making money was secondary to them.
Yao Yuan is chatting with Feng Zhijian. This financial expert is not an executive sent from the mainland, but a high-level management talent recruited by Bank of China in Hong Kong. He has a good personal relationship with Ren Zhigang, the president of the Hong Kong Monetary Authority.
From Feng Zhijian, he learned some information about the Hong Kong Monetary Authority and Yam Zhigang that he did not have before, which was of great help to Yao Yuan in analyzing the subsequent actions of the Hong Kong Monetary Authority.
At this time, Feng Zhijian noticed that speculators who were selling Hong Kong dollars crazily in the New York foreign exchange futures market were still borrowing Hong Kong dollars frantically. He frowned and asked his men to investigate the shipper.
Yao Yuan smiled and said, "No need to check, I am lending the Hong Kong dollars."
Feng Zhijian looked at Yao Yuan in surprise.
Yao Yuan pointed to the large display screen and said, "In such a short period of time, the overnight interest rate has risen to 80%. This is not a small profit. Let's make them a quick buck."
"Mr. Yao, you do this..." Feng Zhijian subconsciously looked at his leader.
Yao Yuan waved his hand and asked, "Based on your understanding of Ren Zhigang, how long will he implement this strategy? This is an important basis for judging how high the overnight interest rate will rise."
"This..." Feng Zhijian calmed down. Since his leader did not object, it means that they have reached a consensus. He is a professional manager with high quality. He calmed down quickly. After thinking for a while, he said, "This requires
Look at the intensity with which international speculators are selling Hong Kong dollars. You have so many Hong Kong dollars in your hands. If you lend Hong Kong dollars without restrictions, Soros and others will try their best to suppress the Hong Kong dollar."
Yao Yuan smiled and said, "If the overnight interest rate soars above 280%, will Soros still make a profit? I think they will be miserable."
"Why is it so high?" Feng Zhijian smiled and shook his head.
Yao Yuan suddenly asked, "Soros is selling Hong Kong dollars wantonly, forcing Hong Kong to abandon the linked exchange rate system, and making huge profits from it. Do you think he will do this?"
Feng Zhijian frowned and said, "This is what he did in Thailand and other Southeast Asian countries. He took advantage of weaknesses such as the imperfect financial market mechanisms of Southeast Asian countries to borrow the target currency through high exchange rates, then sold the target currency crazily to attack the target currency exchange rate, and then used
Spend less money to repay short-term debt and make profits. This is Soros's usual method, and it has worked many times. He will not give up this attack mode."
Taiwan, which just announced that it will abandon its adherence to the New Taiwan Dollar exchange rate, has been attacked by this model, which is exactly the same as what Southeast Asian countries have experienced.
Yao Yuan said with a smile, "But after experiencing the stock market crash in the 1970s, Hong Kong already has a very mature response mechanism, and it has hundreds of billions of dollars in foreign exchange reserves as a guarantee. Soros will not succeed so easily, right?"
"Yes, Soros is probably going to hit the iron plate this time." Feng Zhijian nodded.
Yao Yuan knew it well.
Feng Zhijian is a Hong Konger and an elite in Hong Kong's financial circle. His views actually represent the views of Hong Kong's financial community. And because he has a good personal relationship with Yam, his views can actually reflect Yam's views to a certain extent.
So, Ren Zhigang’s views are basically those of the SAR government.
To sum up, underestimate the enemy.
At this time, the whole of Hong Kong is in a mood of blind optimism and underestimation of the enemy.
No one could have imagined that this would be a difficult game that would last a whole year from now on, a financial war that would be recorded in world history.
By the afternoon of New York time, international speculators led by Soros had sold a full HK$50 billion in the New York foreign exchange futures market!
Immediately afterwards, New York entered the dark night, and Hong Kong ushered in a new day. This will definitely be a black Thursday.
After the opening of Hong Kong's two markets (stock market and futures), the Hong Kong Monetary Authority once again announced an increase in interest rates. The Hong Kong dollar overnight interest rate in the market soared, reaching 285% at one time. The error in Yao Yuan's judgment was extremely small!
At this time, many institutions controlled by Yao Yuan opened their doors to lend Hong Kong dollars to international speculators, lending out 100 Hong Kong dollars, with a daily interest rate of about 1 Hong Kong dollar. Such high borrowing costs made international speculators start to retreat.
However, when the market closed in the morning, international speculators still sold more than 40 billion Hong Kong dollars, and the Hong Kong Monetary Authority bought them all as ordered, stabilizing the Hong Kong dollar exchange rate.
In less than twenty-four hours, Yao Yuan made hundreds of millions of dollars, which made Deputy Director Zhuo's eyes almost pop out of his head.
The foreign exchange market stabilized, but the real trouble began.
When the market opened in the afternoon, the Hang Seng Index fell 111 points, and then it plummeted all the way. The electronic screen of the Hong Kong Stock Exchange was red (red represents a fall in the Hong Kong stock market), and everything was down!
The sequelae of raising interest rates are here, and they are coming very violently!
Interest rates have always been an important tool in determining the flow of funds, before, now and in the future. So every time the news reports that the Federal Reserve announces a 0.5% interest rate hike, the world becomes excited. This is because of the dominance of the US dollar, and the value of the US dollar determines other currencies.
value, unless you close yourself off like North Korea.
It could be as simple as the Hong Kong Monetary Authority raising interest rates to increase the borrowing costs of speculators in order to repel them and stabilize the Hong Kong dollar exchange rate. Very high interest rates quickly hit the stock market hard.
The market's reaction is very sensitive and fast. A piece of news can determine the life or death of a stock. Major decisions like the Hong Kong Monetary Authority determine the life or death of the Hong Kong stock market.
In the past, after repelling international speculators, the Hong Kong Monetary Authority would quickly and gradually lower interest rates to normal levels, so that the impact on the stock market would be within a controllable range.
But this time, both the proportion and intensity were far greater than before. Before the Hong Kong Monetary Authority had time to react, the stock market responded first.
As of the close of the market, the Hang Seng Index plummeted 1,438.31 points, a daily decline of 13.7%, to close at 9,759.37 points, falling below the 10,000-point mark.
At this time, Hong Kong people did not realize that this was just the beginning, because the Hang Seng Index had also plummeted by thousands of points in a single day before, but it recovered steadily from the second trading day. This was due to investors' concerns about Hong Kong's economy.
Great confidence.
People still don’t realize it’s Black Thursday.
The next day, Friday, the last trading day of the week, the Hang Seng Index began to fall as soon as the market opened. Although the momentum was not as strong as yesterday, it still made people feel desperate.
The Hong Kong Monetary Authority responded quickly and immediately announced a reduction in interest rates. The stock market responded immediately. The Hang Seng Index showed a stabilizing and rebounding momentum. However, at this time, international speculators once again sold Hong Kong dollars in the foreign exchange futures market...
Exchange rate, interest rate, stock market, this is a dead end that cannot be solved.