At this time, Soros was doing his best to suppress the Hong Kong dollar, which was exactly the time when he needed talent.
"What are your thoughts?" Soros asked Cyber.
Cyber said listlessly, "After two days of fighting with the Hong Kong Monetary Authority, we don't have many chips left."
"However, the other side has the mainland as a safety net, and it is clear that this time the Hong Kong Monetary Authority's counterattack is supported not only by state-owned enterprises, HSBC and commercial banks, but also by many Chinese-funded institutions."
"In other words, although we have the support of international speculative capital, the power behind them should not be underestimated."
Selling off shares requires capital; the Hong Kong Monetary Authority absorbed the market's capital, consequently reducing the amount of capital Soros held.
Soros asked, troubled, "Do you have any good suggestions?"
“My suggestion is,” Cyber said seriously, “that our next move should be spearheaded by Tiger Fund, with Yellow River Capital as our backer.”
"Tiger Fund has a strong advantage in foreign exchange funds, while Yellow River Capital is a local listed company and faces far fewer restrictions in Hong Kong."
At that moment, Tiger Fund's Robertson was sitting in his office, comfortably admiring the HK$7 billion he had just reaped from the market.
Soros said hesitantly, "Tiger Fund just placed a batch of sell orders and recently settled a lot of short positions. They do have a considerable amount of foreign exchange in their pockets."
Soros doesn't lack Hong Kong dollars now; what he lacks are US dollars to buy them.
After receiving a hint from Cyber, Soros called Robertson and explained his plan.
While his allies were engaged in fierce fighting with the enemy, Robertson reaped a windfall of foreign exchange.
This behavior was already unethical, but seeing that Soros had come to him personally, he felt guilty and immediately agreed to cooperate with Soros's actions.
Shortly thereafter, the Hong Kong stock market, which had just begun to recover, saw its index decline rapidly.
The short sellers were overjoyed and were almost ready to raise a glass in celebration in the trading hall.
At this moment, Du Xingzhi panicked and quickly ordered his traders to buy stocks.
"Buy Hong Kong dollar futures first, then buy heavyweight stocks," Du Xingzhi instructed. "To dilute the cost basis and avoid large-scale herding."
"yes."
With the intervention of Du Xingzhi's market-stabilizing funds, the Hong Kong Hang Seng Index experienced a slight rebound.
At this point, the short sellers began to exert their influence, and a large number of short-selling orders appeared in the Hong Kong stock futures market.
If the sell orders in the market cannot be absorbed in time, investors will question whether the Hong Kong dollar futures market is still operating healthily.
Hong Kong retail investors and international speculative capital use this information to judge the trading situation of the Hong Kong stock market.
With the Hong Kong stock market entering a crisis, Chen Dong calmly and collectedly ordered his traders: "Continue to buy short positions."
Previously, in order to maintain the Hong Kong stock market, he had always bought long positions. However, after taking over 9,000 short positions from Asia Travel, Dragon Capital was no longer satisfied with short positions of less than 1,000 lots.
In the past few days, while the Hong Kong Monetary Authority and George Soros were locked in a fierce battle, Dragonlink continuously used its affiliated securities companies, brokerage firms in Hong Kong, and various investment banks of all sizes to buy short positions.
Chen Dong took over almost all of the short positions that were dumped in the market.
Another strong buyer of short-selling orders is the Hong Kong Monetary Authority (HKMA).
Since the Hong Kong Monetary Authority (HKMA) adjusted the new interbank lending rate, the borrowing rate for them to buy futures has increased by at least 30 times.
In other words, the costs of short selling orders bought by retail investors now include transaction fees and interest rates, and these costs are very high.
The interbank lending rate has surged 30 times, which means that they expect the return on their investment to be at least ten times higher than before, in order to ensure that they can recover all their costs.
This was obviously impossible, so many stock investors and international speculators began selling Hong Kong dollars and shorting.
The increasing number of sell orders in the stock market further fueled investor sentiment.
The bears and bulls are each on opposite ends of the scale, striving to maintain balance.
Just then, Li Ka-shing arrived at Longteng's headquarters to meet with Chen Dong.
“It’s wonderful that you’ve returned to Longteng to take charge of the overall situation,” Li Ka-shing remarked. “Previously, we had no connections in Hong Kong to contact high-ranking officials on the mainland, so we were at a loss when it came to many policies and strategies.”
Chen Dong smiled and said, "I hope I'll always be here."
In fact, Li Ka-shing also knew that the previous announcement by Longteng's senior management that Chen Dong was on vacation was not entirely accurate.
Hong Kong had been in chaos for over a decade, and he had heard all sorts of outrageous news.
As for what Chen Dong actually went through back then, Li Jiacheng didn't want to pursue the matter any further.
Chen Dong didn't stand on ceremony and asked directly, "Mr. Li, what brings you here today to discuss with me?"
“Mr. Chen, Soros has been unable to conquer Hong Kong for a long time. Although we have stabilized the situation, we haven’t gained any benefits.” Li Ka-shing was very troubled. He looked at Chen Dong and said, “The four major families are all exhausted now.”
The four major families are bullish; as the Hang Seng Index rises and the Hong Kong dollar appreciates, they have unrealized profits.
However, the stock market is volatile, and the profits and losses offset each other, so in reality they don't earn much.
Chen Dong was a smart man and naturally understood what Li Ka-shing was trying to say.
He personally poured Li Ka-shing a cup of West Lake Longjing tea, saying, "Mr. Li, the support from the four major families for the market is a manifestation of their corporate social responsibility. They can't just think about immediate profits."
“Initially, the four major families weren’t entirely motivated by social responsibility. They all entered the Hong Kong market to support their businesses because of my influence,” Li Ka-shing put down his teacup and continued, “But we are not all one family. Each of the four families has its own ulterior motives.”
"Furthermore, we also paid a considerable price when we were supporting the Hong Kong dollar."
Chen Dong keenly sensed that Li Ka-shing had come to act as an intermediary for the four major families.
Sure enough, Li Ka-shing then said to Chen Dong, "I think this time when we're trying to stabilize the market, we must do it quickly."
"Otherwise, I worry that these two young men, Li Ka-shing and Kwok Ping-cheung, will turn around and join Soros's camp."
Chen Dong understood his concerns. For top-tier capital groups like the four major families, it would be fine if he always stood on the side of the Hong Kong Monetary Authority, but if he stood on Soros's side, they would be attacked from both sides.
"The Taiwan stock market is in chaos now, which is a result of the lack of large-scale funds to support the market," Chen Dong said.
"If the four major families still think they can get away unscathed, let them see what happens to Taiwan now."
Upon hearing this, Li Jiacheng felt that Chen Dong was sometimes too cold-hearted.
"But don't worry, I already have a plan for this," Chen Dong assured Li Ka-shing. "I will lure international speculators into making their move as soon as possible and resolve this quickly."
......
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