Chapter 880 It is better for me to take the hard-earned money of the Hong Kong people rather than fatten Soros
On Black Thursday, the Hang Seng Index plummeted 1,438.31 points. According to the Hang Seng Index futures rules and the regulations of the Hong Kong Clearing Center, for every point the Hang Seng Index falls by one point, investors can obtain a profit of US$50 from each contract, and vice versa.
Soros had already planned on the Hang Seng Index and profited from the plunge of the Hang Seng Index on Black Thursday. However, only a few people smelled something unusual through clues.
Yao Yuan is very clear.
Such a long-term plan was not in vain. Every move of Soros was closely watched by the intelligence team of the Spring Branch. After the war started, intelligence came back continuously. When he became busy, Yao Yuan could not take care of the three people with national prefixes.
The leaders came and let Lin Wei greet them.
Deputy Director Zhuo saw Yao Yuan busy non-stop, but couldn't see anything. The busyness of the Dongfeng team was in sharp contrast to that of the national team. It felt weird.
He couldn't sit still anymore, stood up and walked towards Feng Zhijian and asked, "Xiao Feng, why didn't we follow them?"
Feng Zhijian knew that this big boss was the financial backer of the national team, and his attitude was very respectful.
He explained, "Mr. Yao is bearish on the Hang Seng Index, and that's what they are doing."
"What do you mean?" Deputy Director Zhuo asked confused.
Feng Zhijian felt contempt in his heart and explained politely, "According to the rules of the Hang Seng Index futures, the Hong Kong Clearing Center stipulates that every time the Hang Seng Index falls by one point, investors can get a profit of US$50 from each contract. Similarly, every time the Hang Seng Index rises,
One point can also make a profit of 50 US dollars. Yesterday, the Hang Seng Index plummeted by more than 1,400 points. Conservative estimates suggest that Mr. Yao earned about 3.5 billion US dollars yesterday, about 400 million US dollars."
"What? Isn't it only 50 US dollars per share? How can there be so much!" Deputy Director Zhuo's eyes almost dropped.
Coupled with the high interest rates on Hong Kong dollars lent to international speculators, doesn't it mean that Dongfeng Team made 7.8 billion US dollars yesterday?
How come this money is easier than blowing by the strong wind?
Feng Zhijian smiled and said, "Director Zhuo, the profit of HK$50 per contract is not low. The Hang Seng Index plummeted 1,400 points yesterday, and the profit per contract was HK$70,000."
"That's not even 3.5 billion Hong Kong dollars." Deputy Director Zhuo couldn't figure it out.
Feng Zhijian glanced at Yao Yuan, who was strategizing over there, with great envy, and said leisurely, "Mr. Yao holds 50,000 Hang Seng Index futures contracts..."
Fifty thousand times seventy thousand equals...
It’s really 3.5 billion Hong Kong dollars!
It’s really so easy to make money!
Deputy Director Zhuo felt his heart dripping with blood, and said with complaint, "Why don't you follow suit? Didn't I emphasize that we will do whatever the Dongfeng Team does? We are in the same trench as them."
Feng Zhijian was aggrieved and speechless, and reminded him in a dumbfounded voice, "Director Zhuo, Mr. Yao is bearish on the Hang Seng Index and holds a short position, and he is continuing to build short positions. In other words, he will continue to be bearish on the Hang Seng Index."
"W-does this have any impact?" Deputy Director Zhuo did not turn around.
At this time, Li Jinghan, who came over and happened to listen to half of it, said, "Director Zhuo, if Soros wants to attack the Hong Kong stock market, the most important way is to be bearish on the Hang Seng Index. The Hang Seng Index is the weather vane of the Hong Kong stock market, and the rise and fall of the Hang Seng Index directly affects
Hong Kong stock market.”
He understood this clearly. A rise in the stock market means that economic development and prosperity are full of potential. A dead stock market or a fall in the stock market means that investors have insufficient confidence in the economic development of the region.
The national team is here to help maintain the stability of the Hong Kong dollar exchange rate and the stability of the Hong Kong stock market. How can it be bearish on the Hang Seng Index?
"This Yao Yuan...I'm not wrong, a businessman is a businessman, and he forgets his loyalty when he sees profit." After Deputy Director Zhuo understood, he became even more resentful towards Yao Yuan, "What makes him crazy? I think he saw the huge benefits.
I went crazy first."
Li Jinghan couldn't understand this operation and began to doubt Yao Yuan's motives.
On the contrary, Feng Zhijian said objectively, "Futures contracts are limited. Mr. Yao judged that Soros would quietly place a bearish position on the Hang Seng Index in the futures market when he attacked the Hong Kong dollar exchange rate, so he made arrangements in advance and held a large amount of stocks ahead of Soros.
Short position contract. If you look at it this way, Mr. Yao actually intercepted the money that would have entered Soros's pocket."
"That's what it means."
I don't know when, Yao Yuan came over, looked at several people with a smile, his eyes fell on Deputy Director Zhuo, and said, "Director Zhuo, the scary thing about Soros is not only that he has a huge amount of money and the influence of Wall Street big shots behind him.
The support lies in the fact that he has no rules in doing things. The most terrifying thing is that he does things without restraint."
He took out his cigarettes, fired them around, lit one himself and took a puff.
Smoking is not allowed on the trading floor, but obviously, this rule does not restrict the big guys.
Yao Yuan said, "If I follow the rules, it will be difficult to confront Soros, even if we have prepared for a long time. Behind Director Zhuo, President Li, and Soros are American chaebol families. According to the information I have received, at least five
There are several senators, and the congressmen support it. More than half of Wall Street’s major funds have unclear relationships with Soros’ Quantum Fund.”
After a pause, he said, "I am fighting against a consortium of financial giants from the most powerful country in the world. I must find another way and use some tactics."
Deputy Director Zhuo and Li Jinghan were silent.
They had anticipated the brutality of imperialism, and they believed in Yao Yuan's judgment.
Why did the Asian financial crisis spread to Hong Kong in July 1997? The specific time point was even as far as July 2. No one believed this was a coincidence. There was no such coincidence at all.
Britain and the United States wear the same pants, and the relationship between Wall Street financial giants and British plutocrats can be traced back to before the founding of the United States. It is a huge and closely connected interest group.
If Yao Yuan looked forward and backward, considering this impact and that impact, the only result would be failure. However, even a tragic victory like the previous one in history cannot be accepted by him.
Either we don't fight this war, or we have to fight it hard and fight hard, so as to achieve peace for at least thirty years. As the saying goes, if you fight with one punch, you will avoid hundreds of punches.
Soros has brought the wealth of Hong Kong people together, and the next step is to take it away. Either he takes it away, or he takes it away himself. How to choose? This is not a difficult multiple-choice question.
After finishing talking to Lin Wei over there, Director Lin, who was accompanied by Lin Wei, arrived. Yao Yuan glanced around, changed the subject, and said, "Everyone, I want to inform you of an important situation. Mr. Feng, you
We have to be prepared for the end here."
Feng Zhijian pricked up his ears.
He has already seen that this Mr. Yao is by no means an ordinary person. He has a very unique understanding of the financial market. No wonder he asked Pan Jie, known as a financial genius, to go to Russia to take charge of the overall situation.
With him personally in charge of the main battlefield in Hong Kong, everything will be worry-free.
Yao Yuan said, "We have obtained the exact information, and Soros has found the Achilles heel of any move."
He took the drawing board from Joey Chen and wrote three words on it: exchange rate, interest rate, and stock market.
He said, "In the past two months, Soros carried out several test attacks, but they were all repelled by Ren Zhigang's moves. The high borrowing costs have become an obstacle that international speculators cannot get around. But they discovered this strategy
Weaknesses."
"To attack the Hong Kong dollar exchange rate and adhere to the linked exchange rate system in order to stabilize the Hong Kong dollar exchange rate, the SAR government will activate the adjustment mechanism to raise bank interest rates, and at the same time use foreign exchange reserves to buy the sold Hong Kong dollars."
"This mechanism is very mature, but it is not without its weaknesses."
After a pause, he said, "Two months ago in mid-August, the Hang Seng Index once reached a peak of 16,497 points. At that time, no one was aware of the coming crisis. Putting aside the Hong Kong real estate bubble for the time being, in fact,
At that time Soros discovered the Achilles heel of this mechanism."
Yao Yuan circled the word "stock market" and said, "High interest rates are bound to affect the stock market. This is a general rule. If interest rates reach a certain level, it will severely damage the stock market and destroy the confidence of ordinary investors. Let's take a look at yesterday's plunge in the Hang Seng Index.
The situation before."
Feng Zhijian blurted out, "In just two months, the Hang Seng Index fell from a peak of 16,000 points to 13,300 points. Soros has been quietly suppressing the Hong Kong stock market!"
"That's right." Yao Yuan nodded slightly. This professional manager hired by Bank of China with a high salary is very capable.
Li Jinghan frowned and said, "The Hong Kong Monetary Authority, the Currency Board and other departments experienced the stock market crash in the 1970s. There are many financial elites in these departments. It is impossible for them not to discover it."
"It turns out that they didn't notice it. It's not that their quality is not up to par." Yao Yuan smiled and looked at Feng Zhijian, "Mr. Feng, tell me?"
Feng Zhijian nodded gratefully. He was not a pedantic person. He knew that Yao Yuan was giving him a chance to show his abilities in front of his boss and his superiors, proving that hiring him was definitely worth the money.
He said, "Hong Kong is the fourth largest financial center in the world, the second largest stock trading market in Asia, the sixth largest foreign exchange trading market, and an international free trade port. The complex flow of funds in the international financial market is caused by Soros and others.
A person’s best cover.”
"According to last year's statistics, international funds flowing in and out of Hong Kong amounted to hundreds of billions of dollars every day. This is a natural cover. Mr. Yao and I have analyzed it before and believe that Soros secretly collects Hong Kong dollars in two main ways. First, through
International financial institutions issue bonds in Hong Kong to raise funds, and secondly, directly convert their US dollar claims into Hong Kong dollar claims, both of which are difficult to detect."
Li Jinghan first understood that, yes, it is a normal financial activity for international financial institutions to issue bonds to raise funds in Hong Kong. Previously, Yao Yuan had also issued Oriental No. 5 in the world's four major markets for crazy financing.
Converting US dollar claims into Hong Kong dollar claims is a transaction between the parties. The Hong Kong Monetary Authority cannot control it in such detail, and it is impossible to control it in such detail. How can we discover it?
If it were in Pyongyang, if you, an ordinary person, had a thousand dollars in foreign exchange in your hand, you would be found out. It is a completely different environment.
It is precisely because of the high degree of freedom of transactions that Hong Kong has its current foundation.
Yao Yuan said, "Soros must have continued to secretly gather funds while continuing to make plans on the Hang Seng Index futures. This time I suddenly took action and cut off most of their profits, and my plan on the Hang Seng Index futures was basically exposed.
Next, everyone will play famous brands in the Hang Seng Index futures. To be honest, I am not willing to be bearish on the Hang Seng Index, but if I don’t get ahead of Soros, the hard-earned money of the people of Hong Kong will be taken away by him. How can I sit back and watch?
?”
At this time, Deputy Director Zhuo felt ashamed and awkwardly nodded to Yao Yuan and expressed his apology.
I didn't expect it to be so complicated and involve so many considerations. It seems that financial war is no less complex and cruel than military war.