Seeing David Anderson turn around and walk out, Yang Jing nodded with satisfaction.

The financial crisis that broke out in mid-1997 and affected the entire East Asia and half of Eastern Europe was a feast for hot money from all over the world. Under the leadership of Soros, these international hot money did make a lot of profits in the early stage, but in addition to some sober-minded international hot money, many other international hot money followed Soros and failed in Hong Kong Island. Not only did they spit out all the profits they had earned from Southeast Asian countries, but they also suffered considerable losses in their original funds.

No one could have imagined that the booming Quantum Fund and those international hot money would end up like this!

Therefore, the famous saying "never underestimate any opponent in the financial market" has been verified again in this financial crisis.

In fact, the signs of the financial crisis in Southeast Asia had already appeared long ago. As early as December 1994, after the Mexican financial crisis, some economists pointed out that a financial crisis might occur in Southeast Asia. Krugman, a professor at the Massachusetts Institute of Technology, once pointed out that the East Asian miracle did not come from the growth of total production capacity, but was due to excessive input, excessive investment, excessive capital inflow, and excessive artificial capital outflow. The so-called "economic miracle" formed under this model would not last long.

In September 1995, Stanford University professor Liu Zunyi and in August 1996, IMF economist Goldstein both pointed out that financial crises might occur in Thailand, the Philippines, Malaysia and Indonesia.

These financial experts can see the signs of a financial crisis, not to mention guys like Soros and Roberts who are even more expert than the financial experts.

Of course, they can see the loopholes hidden in the financial systems of Southeast Asian countries.

Especially in Thailand, such loopholes and signs of crisis are more obvious.

Although Thailand has a lot of foreign exchange reserves, it also has a lot of foreign debt. However, nearly 60% of Thailand's foreign debt is in Japanese yen, but Thailand pursues a financial policy that pegs the Thai baht to the US dollar. In the past, when the Japanese yen appreciated, this contradiction in Thailand was not prominent, but since April 1995, when the Japanese yen appreciated to the peak and began to depreciate, this contradiction immediately became prominent.

Because the Thai baht is pegged to the US dollar, a strong US dollar means a strong Thai baht. However, more than half of Thailand's foreign debt is in Japanese yen. Once the yen began to depreciate, Thailand could not bear it.

Under such circumstances, international hot money led by Soros immediately rushed towards Thailand like a shark smelling blood.

In fact, the speculative activities against the Thai baht are the same methods used by Leo Vantaa to empty the legacy of the former Soviet Union.

Simply put, it is divided into three steps!

The first step is to borrow Thai baht at the then current Thai baht interest rate; the second step is to sell Thai baht in the spot market and exchange it for US dollars; the third step is to lend the exchanged US dollars at the US dollar interest rate.

After completing these three steps, speculators will make a profit once the Thai baht depreciates or the interest rate gap between the Thai baht and the US dollar widens.

Among these, the most difficult thing to accomplish is how to lower the exchange rate of the Thai baht to the lowest, that is, how to make the Thai baht depreciate.

For a single hedge fund, it would be impossible to smash the Thai baht to the ground in front of the Thai government, which had US$30 billion in foreign exchange reserves, especially when Thailand was teaming up with Singapore.

But when the amount of international hot money reaches a certain level, for example, exceeding Thailand's foreign exchange reserves, then the previously impossible or difficult practice of smashing the Thai baht to the floor suddenly becomes easy.

In May 1997, international currency speculators, mainly hedge funds and multinational banks, began to short the Thai baht. Hedge funds shorted the Thai baht's forward exchange rate in the futures market, while multinational banks sold the Thai baht in the spot market. Many hedge funds and multinational banks smashed the Thai baht together. Even though the Thai government and the Singapore government joined forces to fight against it, they still only resisted for a short period of time.

At the beginning, the Bank of Thailand and the Bank of Singapore jointly intervened in the market and took a series of measures, including using US$12 billion in foreign exchange reserves to absorb Thai baht, prohibiting local banks from lending Thai baht to speculators, and sharply raising interest rates to increase the cost of borrowing funds for speculators.

However, attacks on the baht exchange rate came like a tide, currency speculators sold the baht like crazy, and the forward exchange rate of the baht against the US dollar hit new lows. On June 19, 1997, Finance Minister Amray Wirawan, who firmly opposed the devaluation of the baht, resigned. Due to concerns about exchange rate devaluation, the baht interest rate rose sharply, the stock market and real estate market plummeted, and the whole of Thailand was shrouded in panic.

On July 2, after exhausting its 30 billion USD foreign exchange reserves, the Bank of Thailand announced that it would abandon the 13-year-long exchange rate system that pegged the Thai baht to the US dollar and implement a floating exchange rate system. On the same day, the Thai baht exchange rate plummeted by 20%. The Asian financial crisis officially began.

Starting from Thailand, the currencies of Malaysia, the Philippines and Singapore all fell. Especially when the Taiwan Island, which has US$80 billion in foreign exchange reserves, irresponsibly announced the devaluation of the New Taiwan dollar, the panic caused by this crisis became even greater.

Soros and his ilk have tasted huge benefits in Southeast Asian countries, so when faced with the fat piece of meat in Hong Kong Island, how could they resist?

As a result, Soros and others underestimated China's determination to support Hong Kong. These international hot money giants came with strong confidence, but ended up leaving in disgrace.

Yang Jing will certainly not participate in the attack on Hong Kong. On the contrary, he will let David secretly find agents to assist China and Hong Kong when necessary, and then scrape a lot of fat off Soros and others!

PS: I would like to thank "很懒的鱼" for the reward of 100.