The stock market instantly became lively, with other Hong Kong stock index futures figures gradually turning red. Although the increase was not significant, it meant that someone was buying up heavyweight stocks and adjusting their asset structure.
At this point, the Hang Seng Index had stopped falling, and the number was fluctuating around a certain point.
After the four major families entered the market, the bulls and bears once again maintained a balance.
With so many new bullish investors suddenly appearing in the market, investor confidence in the bulls has been greatly boosted.
Almost all the sell orders that appeared in the Hong Kong dollar market were absorbed by the four major families.
Moreover, other futures contracts in the market were also acquired by the four major families as heavyweight stocks.
On the other hand, upon learning that his competitor had strengthened its main force, Tiger Fund's Robertson called Soros almost simultaneously.
"The four major families have entered the fray!"
The four major families in Hong Kong are financially powerful, each possessing a considerable amount of British pounds in assets. If they were to intervene and support the market, international speculative capital would likely have to spend at least three times the cost to achieve its goal of driving down the price.
Soros remained silent on the other end of the phone. "So what if the four major families come? They're no different from ordinary investors in Hong Kong."
He stubbornly retorted, "Perhaps their assets can rival those of our international hedge funds, but think about it, this time when we attack Hong Kong dollars, besides hedge funds, there are also international speculative funds that are several times larger than us."
"They include global currency speculators, large investment banks and commercial banks, as well as the world's financial giants."
"As long as they can stand on our side and short sell, the Hong Kong stock market will still be dominated by negative factors."
Robertson disagreed with Soros, reminding him, "We deal with futures indices, which require using stock chips to manipulate the market."
"Currently, the four major families are supporting the market, and the main force has strong momentum. Now they are competing with us for chips, which will make our cost of dumping the shares higher and higher."
"Soros, the longer we tug at the knot with the four major families and the Hong Kong Monetary Authority, the higher our cost of short selling will be."
While short selling offers high returns, it also carries higher risks.
Soros fell silent, then quickly gave Robertson a vague answer: "I will find a better way to stop the next, more powerful blow."
"At that time, even with the support of the four major families, they will not be able to stop the stock market index from falling."
Hearing this, Robertson hung up the phone with some skepticism.
Cyber, Xiang Feng, Po Luo and their group all turned their attention to Soros.
"After the four major families entered the market, many international speculative funds have withdrawn from the short position, and some have even closed their positions and moved to the other side."
“We’re using more and more leverage to dump our shares. At this point, we need to give international speculative capital an accurate expectation: do the short sellers still have potential?” Cyber asked.
The Freemasons put tremendous pressure on Soros, and after hanging up the phone, Soros had a gloomy expression.
Then, even worse news arrived.
Xiang Feng said expressionlessly, "The Hong Kong Monetary Authority announced on the public platform that it will raise interbank lending rates."
"The interbank lending rate was adjusted to 6.7% in a short period of time. This policy adjustment is obviously aimed at us."
To improve their investment portfolio, they not only bought Hong Kong dollar-denominated stocks but also other heavyweight stocks. Their current holdings of heavyweight stocks are partly purchased in Hong Kong dollars and a significant portion are borrowed shares.
These costs are not paid in one lump sum; they must be returned to the securities company after the short selling ends.
The interbank lending rate has increased by 6.7%, which means that the borrowing costs for the international speculative capital behind Soros have increased by at least 30 times.
Retail investors and institutions that shorted Hong Kong stocks, as well as investment banks and commercial banks, are complaining bitterly. Some have had to withdraw from the market early because they cannot afford the huge interbank lending rates and risks.
With the increased cost of short selling, international speculators have even higher profit expectations.
But now, the Hong Kong stock market is supported by the four major families and the Hong Kong Monetary Authority, and also backed by the mainland. China Asset Management has Longteng Company leading the way, and many patriotic enterprises have also joined the bulls in the stock market to protect the Hong Kong stock market.
The central government imposes numerous restrictions on transactions by mainland investment institutions and securities firms.
Unless their company is based in Hong Kong, they would have to pay a huge price to buy short positions in the Hong Kong stock market.
Therefore, even companies that are optimistic about a negative market can only stand on the side of a bull market.
Upon learning that mainland investment institutions and Chinese-owned businesses had joined the bullish trend in the market, Soros sent people out to gather more information.
An hour later, the assistant returned and said, "New regulations have been introduced in mainland China. Securities companies whose company addresses are registered with Huaxia Securities are not allowed to use RMB as the settlement currency to purchase Hong Kong dollar short-selling stocks."
"However, they do not impose many restrictions on securities companies that use US dollars for settlement, or on offshore companies whose registered address is not in China."
Soros scoffed after hearing this, "Using the US dollar for settlement means that the depreciation and appreciation of the Hong Kong dollar will be directly linked to the US dollar."
"This move by the mainland is really underhanded!"
......
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