According to Soros's plan, once the Hong Kong Monetary Authority and the Financial Secretary's market stabilization funds are exhausted, he will take advantage of the gap during which the aid funds will not arrive so quickly to sweep through the currency market and short the Hong Kong dollar.
After making a fortune, they quickly withdrew from the scene.
This isn't the first time Soros has done something like this; everyone knows what he's up to.
However, the private equity funds controlled by the Soros Group were simply too powerful, and coupled with Soros's strong appeal in the financial market, they attracted a large number of international speculators to follow suit.
In other words, as long as he gives the order, international speculative capital will swarm out, like flies drawn to carrion.
They have formed a powerful, loosely organized consortium, sometimes even in an organized, disciplined, and planned manner, to attack the financial markets of a particular country or region.
These attacked financial markets often have no choice but to let the Soros Group reap the benefits, or seek support from third-party resources.
Compared to the powerful team at the Soros Group, the team assembled by Longteng's top management on a temporary basis was extremely rudimentary.
A boss with amnesia, two women who have almost never touched the stock market, and the Longteng Group, which has been in a slump for more than half a year.
This was the first time Chen Dong had sat in such a large conference room since returning, and in the head seat at that, which made him feel somewhat uncomfortable.
"Let's begin...the meeting." These words, spoken by Chen Dong, sounded both strange and familiar.
"After extensive investigation, I finally uncovered the truth about the source of the Hong Kong dollars in Soros's possession." Wangcai distributed the information to the members of the temporary committee of Longteng's president's office.
"The first time, a few months ago, they bought long positions in the Hong Kong dollar market, and this money actually flowed into two different investment companies."
Wangcai turned on the computer in his office, pointed to a string of keywords on it, and then explained, "Their initial target was the Hong Kong money market."
“Boss, if you were in Hong Kong at the time, you should have heard about this too.” He looked at Chen Dong.
Seeing Chen Dong nod, Wangcai continued, "Around the beginning of spring, the Soros Group entered the Hong Kong market for the first time, taking a long position. At that time, the Federal Reserve was planning to send policies to Southeast Asia to rescue the financial crisis."
"The implementation of this policy requires, to some extent, raising the value of the currency in the importing market."
"So when Soros was first out of the game, he painstakingly raised the value of the Hong Kong dollar. At the same time, faced with the continuous depreciation of currencies in Southeast Asian countries, they chose to speculate on the gold market instead of operating on the value of conventional currencies."
Lin Zhiyuan had been involved in the stock market for some time, and he had done his homework on some basic concepts.
"In other words, although the Soros Group's operations in Hong Kong and Southeast Asia are different, they both have the same purpose: to revitalize the local financial markets and reap profits from the bulls."
"The difference is that in the Hong Kong financial market, he reaped profits from the long positions in Hong Kong dollars, while in the Southeast Asian currency market, he reaped profits from the long positions in gold."
Wangcai nodded repeatedly, then said anxiously, "Soros's previous actions were mainly to cooperate with the Federal Reserve's quantitative easing policy, so that it could be recognized by governments around the world and implemented smoothly in Southeast Asia."
"This allows them to shift the domestic inflation crisis, that is, to transfer excess US dollars from their domestic countries to Southeast Asia by purchasing Southeast Asian bonds and fixed assets."
With Wangcai's analysis, the series of operations by the Soros Group and the Federal Reserve all have clues and logic to follow.
Chen Dong sighed. Just as he had guessed, the Federal Reserve had long been colluding with the Soros Group, working together in the same boat.
They not only created the Southeast Asian financial crisis and crushed the bulls in Hong Kong dollars, but also squeezed the last bit of wealth out of these two markets.
If Chen Dong were still just a laborer at a braised food shop, he certainly wouldn't have been able to compete with the Soros Group.
But now, he is the boss of Longteng Group, an entrepreneur who bears social responsibility for China. He absolutely cannot stand by and watch Hong Kong, which has just returned to China, be arbitrarily crushed by the Soros Group.
"Boss, we now have two main options. The first option is to short the Hong Kong dollar and confront Soros head-on."
“The second option is…” Wangcai sighed with obvious disdain, and then said, “The second option is to short the Hong Kong dollar with Soros.”
Lin Zhenyuan interjected, asking, "Which option offers the least cost and the greatest benefit?"
Wangcai gritted his teeth and continued, "If we short sell, it means we are in sync with international speculators and the Soros Group. As long as we establish a position and buy short orders, we can do nothing and recover at least 60% of the returns before the Soros Group exits the market."
“But if we go long, it means we have to confront the Soros Group head-on. We don’t have much capital on hand right now, and behind the Soros Group are not only the financial tycoons, investment companies, and foundations that he often works with, but also international speculators, and even the Federal Reserve is supporting him.”
A direct confrontation would mean a bare-knuckle fight with the Soros Group, and the outcome would be predictable.
"In other words, we are guaranteed to win if we short, but if we go long, we can win, but at a huge cost," Lin Zhiyuan summarized.
After he finished speaking, everyone turned their attention to Chen Dong.
Chen Dong had been working as a laborer at the braised food shop for more than half a year, always serving customers. Now, suddenly he had so many people under his command, all waiting to follow his orders, which he found very difficult to adapt to.
"For political reasons, we should indeed stand on Hong Kong's side, but for economic reasons, the cost of doing so would be far too high," Ma Guoliang cautioned.
Both Ma Guoliang and Wangcai have backgrounds in finance. From a purely business perspective, following Soros in short selling would be entirely beneficial for Longteng.
Annie, unaware of Chen Dong's thoughts, added, "Before Soros triggered the Southeast Asian financial crisis, our company's business in Southeast Asia completely came to a standstill."
"Because you were away for a while, the temporary committee was unable to make many decisions for the company."
"So Longteng's assets have been devoured by various parties, and now we are struggling to protect ourselves."
Upon hearing this, Chen Dong looked at Annie and said, "If we follow Soros in shorting the currency, it means we are going to join forces with international speculative capital to suppress the Hong Kong dollar and cause it to depreciate."
“For Longteng, short selling is indeed all benefits and no harm, but if the Hong Kong dollar depreciates, Hong Kong will inevitably experience large-scale inflation.”
......
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