Such unusual data fluctuations are baffling.
Previously, due to the pessimistic outlook of various media outlets on the Hong Kong dollar, a considerable number of retail investors who were shorting the currency had already placed a significant number of short orders for the Hong Kong dollar.
Now that positive news has come from Hong Kong stocks, retail investors are secretly cursing as they watch the Hong Kong dollar market rebound.
The exchange rate of Hong Kong dollars against US dollars is slowly climbing, reaching 7.753, 7.763, and so on.
Retail investors who shorted the market are now trapped by the short sellers, unable to move forward or backward.
Brokerage firms were inundated with calls from clients asking analysts, "Is the Hong Kong dollar market appreciating? Should we take advantage of the current upward trend in the Hong Kong dollar index and close out our short positions as soon as possible?"
The analyst patiently explained to the client: "The fund is now accumulating shares in small increments, just to pave the way for entering the market and testing market sentiment."
"In the future, Soros's foundation may very well turn around and use investment companies in Southeast Asia to manipulate the market and short sell on a large scale."
"If we retreat now, we will be the ones who truly suffer a loss."
The customer hung up the phone with some skepticism.
Soros's actions quickly alarmed the Hong Kong Monetary Authority and the Financial Secretary. Du Xingzhi anxiously sought out Yang Fuqiang and asked:
"Soros has already taken action. Do you have any thoughts?"
Facing his old partner, Yang Fuqiang sighed softly, "It's obvious that Soros's bullish move is just a feint; his front men in Southeast Asia and Hong Kong haven't made their move yet."
"Right now, whether it's a foundation or a front man, they're still in the stage of accumulating capital."
"However, he has already sounded the alarm for us, and we need to act quickly from now on."
Du Xingzhi had long anticipated that this day might occur before Hong Kong's return to China, but he did not expect that Soros's actions would happen precisely at the critical juncture of Hong Kong's return.
17 days left! 17 days until July 1st.
Du Xingzhi looked at Yang Fuqiang with a hint of resentment in his eyes, "What exactly did they say on the mainland?"
“The mainland will prepare US$5 billion in foreign exchange for us as capital to stabilize the Hong Kong dollar. When Soros officially attacks the Hong Kong dollar, this money will be sent to our account through Chinese-funded institutions under the guise of interbank lending.”
In any case, the central authorities will not stand idly by and watch overseas speculative funds devour Hong Kong's financial market.
There's no way around it; the mainland has always been protective of its own.
Du Xingzhi breathed a sigh of relief for the time being, but he was still a little uneasy when he thought about Soros's previous actions in Southeast Asia.
"US$5 billion in foreign exchange reserves is probably not enough."
“Although Soros is currently bullish, this is just a facade. When he actually takes action, he will definitely use a front man to act as a short seller!” Du Xingzhi said with some concern.
"His real goal is to short the Hong Kong dollar."
Previously, he had hinted in various Hong Kong media outlets that the foundation would not attack the Hong Kong dollar, in order to confuse investors' rational judgment and leave them bewildered by his remarks.
"In this round, they attacked while we defended."
Yang Fuqiang sighed. This was the first time he had faced Soros's team head-on since taking office.
"When soldiers come, we'll block them; when water comes, we'll dam it."
......
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