Currently, most Hong Kong dollars are in the hands of two financial market giants, Yellow River Capital and the Hong Kong Monetary Authority, who represent the central forces in the Hong Kong dollar war.
In addition, third-party institutions, securities firms, investment companies, and investment banks form the peripheral forces supporting the Hong Kong dollar.
"No matter what, we must hold the 7.5 line. If the Hong Kong dollar depreciates, inflation in Hong Kong will be another financial disaster!" Du Xingzhi instructed.
"Understood, President."
On the first day after Chen Dong established his position, the Hong Kong stock market closed with the currency value having fallen to 7.65.
Having just completed his initial investment, Chen Dong was still in the observation phase, so he did nothing throughout the trading day, simply watching Yellow River Capital and the Hong Kong Monetary Authority go back and forth.
Wangcai checked the funds in the account and said to Chen Dong, "Our HK$40 billion has all been transferred to the account and the transaction with the brokerage has been completed."
"We haven't bought any Hong Kong dollars today. If the situation continues like this tomorrow, the Hong Kong Monetary Authority might not be able to hold on."
Upon hearing this, Annie and Zhou Huimin looked anxiously at Chen Dong, who calmly lowered his head and said:
"It has been four days since the Soros Group officially began selling Hong Kong dollars in the Hong Kong financial market."
"Let's wait until the Hong Kong Monetary Authority (HKMA) steps down, then we'll take over."
From the moment the Hong Kong Monetary Authority sensed something was wrong and its superiors determined that assistance from the central bank was needed, to the time it took to formally apply to the central bank for market stabilization funds, it would have taken at least three days.
“Three days is just the HKMA’s reaction time,” Chen Dong reminded Wangcai. “In other words, after the HKMA receives market feedback, it will take at least two days from applying for market stabilization funds from the mainland to the completion of the review and the arrival of the funds.”
"And within these two days, after the funds arrive, it will take at least a day to build up the position and increase the investment."
Zhou Huimin sighed and said, "There is a three-day gap in between. In three days, if the Soros Group is efficient and clean, they should have completed the entire process of shorting the Hong Kong dollar."
“Yes, even if the Hong Kong Monetary Authority manages to secure funds to stabilize the market, it will be too late.” Annie looked at Chen Dong, her eyes full of hope.
“I wonder if the central government can make an exception? If the timeframe can be reduced to two days, we can intervene when the Hong Kong Monetary Authority is running out of steam, and maybe we can buy some time,” Wang Cai said.
Looking at the numbers on the computer, Wangcai quickly came to a conclusion: "It will take at least two days."
Lin Zhiyuan made a quick decision and said to Chen Dong, "I'll go and contact the people on Elder Lin's side, hoping that the Central Bank can arrange the relevant matters as soon as possible."
"The Soros Group's strategy this time is to advance and retreat rapidly, and the central government must handle this as a special case."
Chen Dong nodded, which was taken as tacit approval.
His memory has not yet returned, and he is confused about the people and affairs in Longteng.
After Lin Zhiyuan contacted Mr. Lin, Mr. Lin urged the central bank several times to expedite the process.
At the same time, the Monetary Council also received a request for assistance from Du Xingzhi.
All members of the Monetary Council held an emergency meeting.
Meng Qing stated at the meeting: "The current currency war in Hong Kong is no longer just a war of capital, but also a political war."
"Hong Kong has just returned to China, and they are already trying to take action against it. It's obvious they want to slap us in the face!"
Yi Shu had a fiery temper. When he heard from his assistant that Soros was attacking the Hong Kong stock market again that morning, he was furious. He cursed Soros as a scoundrel and ordered the People's Bank of China to prepare funds to support the market at any time.
Yi Shu said, "Hong Kong has just returned to China. International political figures are watching, and the people of Hong Kong are watching too. No matter what, we must safeguard the security of Hong Kong's financial market."
“Among those attending the meeting today are the presidents of the People’s Bank of China and Huaxia Bank, as well as representatives from the China Banking and Insurance Regulatory Commission,” Meng Qing suggested. “I recommend that this time, we must handle this as a special case. The relevant procedures must be followed, but the formalities must be expedited.”
"agree."
I agree.
Meng Qing smiled and said, "Since everyone agrees, let's start raising funds. This time, Soros is coming on strong, so we need at least $10 billion to support the market."
As soon as the figure was released, several bank presidents fell silent.
It's not that they didn't sign; it's that the foreign exchange in the bank was converted into bonds and other assets and invested abroad.
They really need to raise such a large amount of foreign exchange in such a short time.
"Everyone, I know that it's a bit too rushed to prepare $10 billion in just two days."
Meng Qing thought for a moment, then looked at Yi Shu, "I ask the presidents of each bank to discuss and, according to their own acceptable proportions, to meet this $10 billion to the greatest extent possible."
Yi Shu said with some concern, "I'm afraid the Hong Kong Monetary Authority is already impatient. I think the safest way is to allocate US$1 billion, and we can continue to raise the remaining funds."
"agree."
"I'm fine with it too."
Everyone chimed in, saying, "I can take a hundred million dollars."
After the meeting, the Governor of the People's Bank of China and the President of Huaxia Bank immediately returned to their posts, sorted out the foreign exchange at hand, and handed it over directly to Du Xingzhi of the Hong Kong Monetary Authority.
Economically, Soros has twice disrupted Hong Kong's financial markets. Politically, Soros's interference at this critical juncture of Hong Kong's return to China has already offended China.
Regardless of how the central government deals with these political enemies, the Central Monetary Commission, as China's golden shield, will definitely make Soros pay the price this time.
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