The only markets that they can see are North America, Japan and Europe. The economic scale of Southeast Asia is indeed too small for them.
"I originally wanted to have a big meal in the Taiwan Island, after all, the Taiwan Island also has 80 billion US dollars in foreign exchange reserves. As a result, the leaders of the Taiwan Island were tactful and directly devalued the Taiwan dollar without resistance. Alas, I guess those guys in Washington can't bear to see the economy of the Taiwan Island destroyed. After all, the Taiwan Island is the most important part of the first island chain. Those guys in Washington will not let the economy of the Taiwan Island collapse."
Yang Jing nodded. David's analysis was correct. Otherwise, it was impossible to explain why Taiwan, which has 80 billion US dollars in foreign exchange reserves, would devalue the Taiwan dollar without saying a word. They must have received a warning from Washington, so they did this.
What? If they do this, aren't they just watching the people of the island suffer losses?
Haha, what does it have to do with me if the people suffer? As long as I can keep the 80 billion US dollars of foreign exchange reserves, I can continue to buy weapons from the American godfather and maintain my position. The depreciation of the Taiwan dollar has caused the people to suffer, what does it have to do with me?
"Later, the Japanese yen, the Korean won and the ruble also began to depreciate sharply, so I focused my main target on that. Besides, didn't you say last year that we were not allowed to get involved in Hong Kong Island? So I followed your instructions and did not follow Soros and others to attack Hong Kong Island. Although I did not participate, I was watching the whole process. This war was really full of ups and downs." David had a rare sighing expression on his face, which was enough to prove the fierceness of the battle to defend Hong Kong Island.
"Boss, you know I came from Goldman Sachs, so I know the investment methods of investment banks like Goldman Sachs and Morgan Stanley very well. The Japanese market is our home market, so Southeast Asia is just a hook for them. Their main target is actually the so-called 'Four Little Dragons of East Asia'. Reaping profits from these four little dragons is the fundamental purpose of these investment banks."
"But Taiwan cannot be touched. Just targeting Singapore and South Korea is not enough to satisfy the greed of these investment banks. Therefore, Hong Kong will inevitably become one of their main targets. Moreover, the situation in Hong Kong in the past two years is actually full of loopholes. No wonder Goldman Sachs is determined to take action against Hong Kong."
Yang Jing also nodded and sighed, "Yes, flies don't bite seamless eggs. Hong Kong's economy is too hot. This is also the main reason why those big investment banks are targeting Hong Kong."
In fact, before the Asian financial crisis, Hong Kong's economy was affected by the collapse of the Japanese economy and also hit rock bottom. However, after two years of adjustment in 1994 and 1995, it began to recover from the bottom in 1996.
In 1997, Hong Kong Island's economy developed faster, with growth rates of 5.9%, 6.8% and 6.0% in the first three quarters respectively. Moreover, due to the stimulus of the return factor, the Hong Kong Island real estate market also prospered, and the Hang Seng Index hit new highs, reaching a historical high of .27 points on August 7, 1997, and red-chip state-owned enterprise stocks were extremely popular.
At that time, the bubble in Hong Kong's stock and real estate markets had reached its final astonishing level of madness. The resale price of a new building subscription certificate reached HK$2.5 million. Any third- or fourth-tier stock, or junk stock, would soar by 100% to 200% on the same day as soon as news of its acquisition by a red-chip enterprise came out.
With such a serious bubble, it would be strange if those investment banks didn’t keep their eyes on Hong Kong Island!
In particular, as the currencies of Southeast Asian countries have depreciated sharply, the Hong Kong dollar, which is pegged to the US dollar, has appreciated significantly. From an empirical perspective, currency depreciation in emerging investment markets is contagious. Since the export commodity structures of most emerging market countries are similar, there is a possibility of competitive currency depreciation.
In other words, if the currencies of neighboring countries and regions depreciate significantly, their exports will be smoother, but the Hong Kong dollar has remained strong due to its peg to the U.S. dollar, which will put tremendous pressure on Hong Kong Island's exports and ultimately lead to huge depreciation pressure on the Hong Kong dollar.
The Hong Kong dollar is facing such huge depreciation pressure, coupled with the stock market and real estate bubbles, which creates a natural advantage for those international speculators. In addition, Hong Kong Island has just been returned to China, and those guys are eager to dig a piece of meat from Hong Kong Island!
"From August last year to August 28 this year, the Hong Kong dollar experienced three major selling sprees. These were the big investment banks preparing for the final battle. They did a good job in preparing, successfully pushing the Hang Seng Index down from more than 16,000 points to 6,600, and also triggered panic among Hong Kong Island investors. So, on that day, they launched the final battle against Hong Kong Island."
David pouted and shook his head. "Goldman Sachs prepared for more than a year, but in the end, we got the advantage. Of course, the Hong Kong government also made more than 8 billion US dollars. It finally lived up to the support of the Chinese government and our final entry."
Yang Jing said calmly: "This is called the mantis stalks the cicada while the oriole is behind!"
PS: I would like to thank "The world is so big, I just follow my own path" and "Very Lazy Fish" for their 100 rewards.
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