Short sellers dumped money to drive down prices, while long sellers poured money in to support prices. Neither side would give way, and the back-and-forth battle between short sellers and long sellers in the Hong Kong stock market had become completely fierce.
When the market opened in the afternoon, the Hong Kong dollar remained at a certain level, almost unchanged from the morning.
Surprisingly, the Hong Kong dollar has remained steadily at a certain level throughout this chaotic struggle.
Meanwhile, the stock markets of neighboring Taiwan, as well as those of South Korea and other island nations far away in China, began to fluctuate wildly due to the turmoil in the Hong Kong stock market.
The Taipei stock market plunged, dropping 1,000 points, triggering panic in other futures markets.
The Straits Times Index in Singapore fell 119.7 points, opening down 2.05% and dropping 2.79% at the start of the day. The Nikkei index in Tokyo fell 150.6 points.
Hong Kong's stock market is protected by the Hong Kong Monetary Authority and the four major families, but Taiwan, which is next door, is like a pile of loose sand, and unexpectedly, it was hit by a fist.
It collapsed instantly.
The collapse of the currency market in Taiwan was particularly rapid, with an unprecedented drop from 11:00 AM to 11:00 PM.
This storm did not originate from within Taiwan Province, but from the Hong Kong stock market next door.
By the close of trading, the Hang Seng Index in Hong Kong had remained firmly in place, while the stock index futures in Taiwan had fallen by a full thirteen points.
The high-level organizational structure within Taiwan Province is loose, and the grassroots businesses also lack cohesion towards Taiwan Province.
The saying goes, "If the superiors don't act, the subordinates won't follow suit." Without sufficient cohesion and unity, they would simply flee in panic when faced with a major disaster.
After two days of intense trading, the Hong Kong stock market index not only did not fall, but rose above 100 points. The Hong Kong dollar reached its highest value against the US dollar in the past two weeks, reaching 7.603.
As the war intensified, the daily trading volume on the Hong Kong stock market had risen to ten times its usual level.
Afterwards, a large number of sell orders appeared in the market, but these sell orders were quickly absorbed as they were placed.
With the Hong Kong Monetary Authority relying solely on the mainland for support, Du Xingzhi became increasingly daring. He became bloodthirsty, immediately snapping up any sell orders from international speculators.
International speculative capital has abundant funds and is not concerned about the money poured into the Hong Kong stock market.
Overnight, international speculators dumped $6 billion worth of shares.
If this were an individual's stock investment, they would have gone bankrupt long ago. Fortunately, the forces behind these international speculators are mostly financial giants and international investment banks, so the losses don't affect the individual's stock holdings.
After the market closed, Soros convened a meeting of senior department heads.
At this moment, Du Xingzhi was smugly directing the traders to check the results of their battle against the slightly weakening short sellers.
Xu Jing, the chief financial advisor of the Finance Department, came to the busy trading hall and said to Du Xingzhi, "Taiwan Province has announced that its currency will float freely."
"What?" During this period, Du Xingzhi had been focused on countering the attacks on the Hong Kong dollar by international speculators.
As for the situation outside of Hong Kong, he indeed did not pay any attention to it.
"What happened?"
Xu Jing said, "It seems to be affected by the Hong Kong stock market; the New Taiwan Dollar has been falling continuously in the past two days."
"Taiwan Province has absolutely no intention of rescuing the market; it's just that the authorities made a show of buying some futures and stock market sell orders."
Even after hearing Xu Jing's explanation, Du Xingzhi still couldn't believe it.
International speculators really got going in just one week, while Taiwan couldn't even last a week.
He complained impatiently, "Is their finance director just sitting around doing nothing?"
Xu Jing shook his head and reminded Du Xingzhi, "In short, the New Taiwan Dollar is depreciating. Hong Kong stocks have just started to recover, but the depreciation of the New Taiwan Dollar could very well backfire on us."
Since the 1990s, the New Taiwan Dollar has experienced a rapid rise in prices due to the implementation of quantitative easing policies, leading to a bubble peak.
Nevertheless, from 1985 to 1990, Taiwan still maintained a six-year bull market for bonuses.
In 1990, the total value of the stock market in Taiwan Province exceeded NT$770 million, and investors in Taiwan Province were enthusiastic, leading to rapid economic development.
This has always been a popular story in the stock market, but no one expected that Taiwan would be so vulnerable.
"I understand, I'll be careful," Du Xingzhi sighed.
Du Xingzhi usually treated this old neighbor as a joke.
The main reason he pays special attention to the stock market in Taiwan is because the two markets are geographically very close.
In addition, Taiwan has found a powerful ally in the United States to support it.
The United States is the home base of international speculators. Any move by international speculators will directly affect the stock market of Taiwan. If the stock market of Taiwan collapses, Hong Kong will be the first to be affected.
Upon learning this news, the analyst gritted his teeth and said, "Soros previously sold off gold in China and Southeast Asia, which triggered a wave of inflation in China and greatly inflated the housing bubble."
"At that time, Taiwan Province had already been affected and its economy was declining. But no one expected that even after so long, Taiwan Province still hadn't found a solution and was just stubbornly enduring it."
It was only after Soros joined forces with international speculative capital to launch a major attack on Hong Kong that the Hong Kong dollar market directly brought down the already struggling stock market in Taiwan.
Du Xingzhi closed his eyes helplessly and asked the analyst, "What is the current exchange rate of New Taiwan Dollar to US Dollar?"
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