…
The day of returning the Thai baht to Siam came in a flash.
The $400 million in Thai baht that was originally borrowed as collateral can be repaid in full with only $180 million at the current exchange rate.
Xu Mengyao, Xiaomei and Li Yan huddled on the sofa, the aroma of tea filling the room.
She said with a smile on her face, "Finally I can relax."
Xiaomei also burst out laughing. "Fang Henian finally got what he wanted. The profit brought by this exchange rate fluctuation is far beyond my expectations."
"Next, I plan to invest some money in Korea." Her voice was filled with a hint of uncontrollable excitement.
"Kimchi Country?" Xiaomei was puzzled. That country was not even as big as a province, so what was there worth investing in?
"That's right," she nodded. "The economy there is in ruins. GDP has dropped by nearly 15%, the stock market has plummeted by 80%, the won has depreciated significantly, and foreign exchange reserves are almost depleted. How can such an opportunity be missed?"
At this time, a large number of companies in Korea went bankrupt, more than 30,000 companies closed down, and the unemployment rate soared.
Pillar industries such as semiconductors and automobile manufacturing have been severely impacted, and export markets have shrunk.
The government was under enormous pressure and was forced to accept harsh conditions, open up financial markets and remove restrictions on foreign capital holdings in order to obtain aid from the International Monetary Fund (IMF).
Xu Mengyao wanted to take advantage of this opportunity to buy a large number of shares of Shanxing Group.
She knew that in the future, Flash Star Group would become a leading company in the global consumer electronics industry. Most of the Korean people depended on this company for their survival, and the president would have to kowtow in front of the Lee family.
She had read a report before that said Chairman Shanxing left behind a large amount of property after his death, and the Li family would have to pay a full 70 billion RMB in inheritance tax alone!
She couldn't let this opportunity slip away, so she had to acquire more shares and have a say. Then she could apply for the World Heritage Listing for Qu Yuan and other figures, so they wouldn't steal them away again.
Also, the dramas they shoot and the star-making industry are really good, and she must make money from them. When she was a purchasing agent, the place she went to the most was Korea. These people make money from China while looking down on Chinese people.
Xu Mengyao plans to open more companies in Korea in the future, give priority to recruiting Chinese people, and restore order among them!
Then, they would train and sign those boy and girl groups that would become popular in Asia in the future, and greatly improve the treatment of the Korean members! Protect them from the clutches of the chaebols!
We will also train outstanding directors and screenwriters to deal a blow to some of the rubbish directors in the country and inspire more good film and television dramas.
She told her two good sisters about her business empire in detail.
Although Xiaomei agreed, she was still a little worried: "Everything you said requires someone to stay in Korea for a long time. We..."
Li Yan volunteered, "If you two can't spare the time, I'm willing to go!"
…
In contrast to her good mood, Lin Xiaohe, who was always calm and composed, frowned for several days in a row.
"Takahata," she called softly, "You look worried?"
"Come, come and take a look."
She walked to Lin Xiaohe, and the computer screen was showing reports from Hong Kong City.
"It fell so much?" she asked in surprise, obviously shocked by the scene before her.
"Well, there was some hot money that took advantage of the handover of power between the two countries to sell off Hong Kong dollars. The immigration wave at that time caused a lot of capital to withdraw, so the temporary sell-off was understandable. But in recent months, I found that the Hong Kong dollar exchange rate has been subjected to several tentative attacks, and the amount of selling has gradually increased. I feel that things are not good." Lin Xiaohe frowned and tapped the table unconsciously with his fingers.
"You mean, it's very likely S's people?"
Lin Xiaohe nodded solemnly.
"I certainly hope not, but if it is true... Hong Kong City will probably be doomed."
"We must be prepared. Call home first. I'll have Xiaomei notify Fang Henian. At the very least, we need to evacuate."
She immediately made her attitude clear. Lin Xiaohe's strength was far above hers. She had never cared much about national affairs in her previous life, and she had no impression of many things. However, the bloody storms in the financial market in recent years made her very cautious.
If this is really S's work, then in the later stage they will surely be like a swarm of locusts, devouring all the wealth wherever they go.
Since 1992, S has won consecutive victories in the international market. As long as they target a sector, the foreign exchange reserves accumulated over the past decades will be looted. The East Asian War has further advanced their strength to become a super boss.
Their secret weapon is short selling, which is a financial means.
Let’s take pork as an example to make it easy to understand: if the current price of pork is 30 yuan per catty, the S family comes to borrow 100,000 catties from you and agrees to pay it back in full after one month.
After they got the pork, S racked his brains to spread rumors in the following month, saying that eating pork would cause cancer and so on, in order to lower the price of pork. He also took the lead in selling all the pork in his hands at the price of 25 yuan per catty. As a result, other pork vendors became scared and followed suit, selling pork. Soon, the market was flooded with pork. Scarcity makes things expensive, and vice versa, they will naturally be cheap.
Coupled with the social panic caused by the rumors, the price of pork plummeted to only ten yuan per catty. So after a month, he bought 100,000 catties of pork from the market at a price of ten yuan and returned it to you, sold it for 25 yuan and bought it again for ten yuan. The difference of 15 yuan in the middle is the profit he earned. This is short selling.
The most critical step is how to lower the price of pork. As long as the price is lowered below the selling price, the short sellers can make a lot of money. If you want to stop the attack of the short sellers, the solution is to stabilize the price of pork.
The authorities discovered that some people had borrowed a large amount of G-coins, and the tragic situation of Siam was right before their eyes. They immediately raised the bank lending rate, causing the loan interest cost to rise sharply.
Taking pork as an example, it is equivalent to that if you borrowed 100,000 kilograms before, you had to repay 100,000 kilograms, but now if you borrow 100,000 kilograms, you need to repay 130,000 kilograms of pork. This will increase the cost of financial speculation, drive away foreign capital, and maintain the exchange rate of G currency.
But the people were not aware of this, and seeing that the bank interest rates were so high, they took out all the money in the stock market and deposited it in the bank. This trick could indeed resist the selling of G coins to a certain extent, but with less liquidity in the market, the impact on the real estate and stock markets would be increased.
Lin Xiaohe has been paying close attention to all the news and saw that the market has entered a period of rapid decline.
"Not good!" His face suddenly changed and he shouted loudly, pushing the door open and rushing towards Xu Mengyao.
"They are making a feint to the east and attacking in the west. Their real goal is not the exchange rate, but to short the market!"