Hong Kong is about to be returned to China.
Everyone is speculating that even if Soros is about to take action...
He wouldn't be so stubborn as to go head-to-head with a Hong Kong financial market backed by the mainland, would he?
Based on this speculation, private banks and asset management institutions in Hong Kong have been urging their clients to short sell and cover their previous short positions in Hong Kong dollars.
Many people hesitated but agreed, agreeing to the analyst's decision.
A new force, mainly composed of third-party institutions and retail investors, quickly emerged in the Hong Kong stock market, engaging in large-scale short selling in an attempt to recoup losses.
However, some with a longer-term perspective stubbornly believe that Soros has ill intentions.
Among these people are those who have encountered setbacks in the Southeast Asian market.
Back then, Soros, along with his foundation, used private equity funds to sweep through the Southeast Asian market, almost wiping out several countries in Southeast Asia with booming economies.
After being attacked by Soros, the Thai baht has been in a slump and has struggled to recover even with economic aid from neighboring countries.
Those who have suffered losses at Soros's hands hate him to the core.
Just as Hong Kong's bigwigs were still hesitating, unsure which side to align with, a heated debate took place on a pre-recorded television program hosted by a host from Hong Kong's financial channel.
The host, surnamed Liu, advocated buying more Hong Kong dollars, believing that with the support of the Hong Kong Monetary Authority and the backing of the mainland, the Hong Kong dollar would be able to weather the storm even if it was affected by the Southeast Asian crisis.
The host, Jin Xin, suggested shorting the market, arguing that Soros had his sights set on the Hong Kong dollar market and would never use such a mild method to exploit it.
The financial channel studied the operating styles of foundations, investment companies, investment banks, and financial giants around the world.
They receive information from third-party organizations and government agencies such as the Monetary Authority and the Financial Secretary more quickly and accurately.
Therefore, many citizens rely heavily on the news reported by financial channels.
However, the two hosts and the analysts on site cannot reach a consensus, which makes everyone even more confused.
After the program aired, Hong Kong retail investors flocked to the bulls, with some putting all their savings into long positions.
On the contrary, the big players in Hong Kong contacted their asset management institutions and asked to buy short positions.
Soros has a history of using news media to create hype and confuse investors. After seeing this pre-recorded TV program, the Hong Kong tycoon was even more convinced that Soros controlled the television media.
Since Soros wants investors to believe that the Hong Kong dollar will rebound, it means that his purpose must be to short the Hong Kong dollar.
On June 20, after a sharp drop in Hong Kong stocks, the Soros Foundation entered the market, greatly filling the foreign exchange gap, and the stock market surprisingly found a support line.
The upward movement of the support line has slowed down, and the value has stabilized at around 10% above and below.
This means that the short and long positions are basically in balance.
But this also means that Hong Kong's stock market could go to either extreme at any time.
Retail investors followed suit and bought more, causing market sentiment to decline. At this moment, the Chief Executive of the Hong Kong Monetary Authority, Du Xingzhi, had a flash of inspiration and thought of a good idea.
"Whether Soros is making a feint or a real move, there are still ten days until Hong Kong returns to China."
"At this time, the Hong Kong stock market absolutely cannot make any mistakes."
The assistant leaned forward and asked in a low voice, "Should we send a message to the mainland side?"
"No need. Contact the Financial Secretary and tell him we are applying to use the stabilization funds from Chinese-funded institutions," Du Xingzhi said seriously.
"clear."
With Hong Kong's return to China imminent, various departments in Hong Kong are busy with the handover ceremony. The Hong Kong Monetary Authority has received several orders from the Financial Secretary to ensure a calm and peaceful day on the day of Hong Kong's return.
Financial Secretary Yang Fuqiang directly told the Chief Executive of the Hong Kong Monetary Authority, Du Xingzhi, "I don't care what methods you use, but on the day Hong Kong returns to China, you must hold this pass at all costs."
"Soros is very likely to set up a scheme on the day of Hong Kong's return to China. Whether you buy in or sell out, I want to see a moderate rise in the stock market."
The meaning above is quite clear: the Hong Kong Monetary Authority (HKMA) must maintain a facade of success, regardless of the costs incurred, to ensure the market remains stable.
After hearing this, Du Xingzhi complained, "The higher-ups only gave us a fund of 5 billion US dollars. If it's just to deal with Soros's bullish moves, it's indeed enough. After all, there's a limit to how much the Hong Kong dollar can appreciate."
The rise in the value of the Hong Kong dollar directly threatens the status of the US dollar. Therefore, even if Soros goes long and raises the value of the Hong Kong dollar, the United States will not stand idly by.
However, if Soros turns around and shorts the market, then it is clear that their $5 billion market-stabilizing fund will definitely not be enough.
Yang Fugui thought for a moment and said, "I'll contact Mr. Lin in the mainland again and ask him to step in and try to get as much funding as possible to support the market."
Hong Kong stocks have been rising steadily around 10%, but even so, the Hong Kong Monetary Authority and the Financial Secretary have not dared to relax their efforts.
Since he had been given a task from above, Du Xingzhi had no choice but to keep watch over the gate.
Soon, $5 billion arrived in my account, bringing the total to $10 billion, which I added to the previous $5 billion.
Du Xingzhi personally visited Li Ka-shing, Hong Kong's richest man, and humbly asked, "Mr. Li Ka-shing, what is your opinion on the market situation?"
"The market?" Li Ka-shing shook his head. "I know what you want to ask. Hong Kong is about to return to China, and Soros, that time bomb, could jump out and cause trouble at any moment. You want to support the market, but you don't know the direction to do so, right?"
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