After learning of Chen Dong's attitude, Li Jiacheng had no more concerns.
If Chen Dong wants to simultaneously go long and short, he will definitely have to spend more assets than usual to buy Hong Kong dollars.
Since Longteng Company's working capital has been lent to Asian investment banks, Chen Dong could have an easier time if the four major families helped to boost stock index futures.
However, Chen Dong is not entirely helpless in the face of this situation.
Short selling requires strong financial backing, while going long has a much lower barrier to entry.
For bullish positions in Southeast Asia to succeed, strong financial backing is needed to ensure that unrealized profits exceed the cost of holding positions, as well as bank lending rates and the rate of inflation.
Chen Dong thought that Soros's next target would definitely be the Southeast Asian market.
Wangcai seized the opportunity to report: "Boss, the $2 billion you asked me to prepare earlier is already in the account."
"They were all purchased gradually from securities companies, without much fanfare, and did not arouse suspicion."
Chen Dong nodded with satisfaction, "You did a great job."
After the interbank lending rate soared, the cost of supporting the market also increased. Just when the four major families were in a dilemma, Quantum Fund suddenly launched an attack at the Hang Seng Index level.
Large short-selling orders were suddenly placed in the futures market.
The senior management within Longteng were somewhat flustered by Soros's actions.
Recently, the Hong Kong dollar has been caught in a tug-of-war between offense and defense. It's been going on for so long, and Soros has been using his chips to dump the market. I didn't expect them to still have so many large short positions.
Chen Dong frowned and said to Lin Zhiyuan, "Although the international hedge funds behind Soros have abundant funds, they mainly use public opinion to create a herd effect and attract international speculators to enter the market."
"You mean they're just throwing out a small amount of bait, and the ones dumping the shares might not be their own?" Lin Zhiyuan asked.
Zhou Huimin said with some concern, "The four major families and the Hong Kong Monetary Authority have paid a huge price in the process of stabilizing the market. If the situation has not improved by now, they may leave disappointed."
"Let's take a look first." Chen Dong stared intently at the market trend.
The Hang Seng Index fell rapidly from its 12,000-point level...
Despite the Hong Kong Monetary Authority's joint efforts to support the market, the large number of short-selling orders has caused confusion in market sentiment, and investors are gradually losing sight of what is real and what is fake.
Even with all their resources, they couldn't prop up the market.
Immediately afterwards, the Hang Seng Index fell to [a certain level].
All the stock market investors were in a panic, and no commercial banks were taking over the sell orders. Everyone sensed something was amiss.
Some quick-thinking retail investors closed out their short positions early on.
Brokerage firms frantically called their clients, asking if they wanted to close their positions immediately.
The short sellers were overjoyed by this situation.
Some were happy while others were sad, with retail investors who followed the bullish trend selling off their Hong Kong dollar futures contracts.
Soros's bait finally worked, with Hong Kong stock market investors and investment institutions selling off large amounts of Hong Kong dollars.
Subsequently, international speculators, investment banks, and financial giants reduced their holdings of the stocks.
It's not just Soros who's selling off his holdings right now; Tiger Fund, Yellow River Capital, Asian Investment Bank Capital, and others are also clearing out their positions.
"International speculators are about to buy the dip! Mr. Liu, you must close your short positions now." The brokerage firm kept calling their clients.
"...Ms. Li, the Hang Seng Index has now fallen to a certain level. We cannot accurately predict where the decline will end. However, I suggest you sell your shares as soon as possible to avoid being trapped."
Inside the brokerage firm, the constant ringing of telephones filled the entire office area.
Meanwhile, the Hong Kong Monetary Authority, which was at odds with international hedge funds, was still doing its best to support them.
"How much money do we have left?" Du Xingzhi asked the analyst.
The analyst hesitated before saying, "The $10 billion in market stabilization funds have all been used up."
"Right now we have stocks but no cash flow, so we have no way to support the market."
Du Xingzhi closed his eyes in anguish. "The $10 billion in market stabilization funds are not a secret in the stock market."
"It seems that the Soros Group had anticipated that we would use up all our funds for market support at this time, which is why they launched such a large-scale attack."
Their previous attacks were all bark and no bite, more than enough to suppress the Hang Seng Index.
Now, Du Xingzhi looked at the huge screen in the trading hall and said, "They really want to destroy the Hong Kong stock market."
With the funds for market stabilization exhausted, Du Xingzhi urgently borrowed a batch of foreign exchange from HSBC.
The most interesting part of this is that the Hong Kong Monetary Authority (HKMA) itself raised the interbank lending rate, and now that they need the money, this high cost has been passed on to the HKMA.
However, this amount of money is a drop in the ocean compared to the international speculative capital behind Soros.
The Hang Seng Index's decline seems endless, plummeting all the way to a certain point.
At this time, an unknown securities company in Hong Kong began to buy short at the end of the trading day.
The Hong Kong dollar has depreciated to 7.904, and the exchange rate of the Hong Kong dollar against the US dollar has fallen to an unprecedented low.
All the citizens of Hong Kong were stunned; they had never seen such a large-scale and powerful monetary attack.
The Hang Seng Index dropped 350 points in one day before finally stabilizing at a certain level.
On Hong Kong's financial channel, all the hosts and analysts were stunned; they looked like country bumpkins who had never seen the world before.
"Not long ago, the Financial Secretary and the Hong Kong Monetary Authority issued a statement saying that they would safeguard the security of Hong Kong's currency. But unexpectedly, in just a few days, the security of Hong Kong's currency has become a joke."
Economists, looking at the stock market in front of them, felt both angry and regretful towards the Hong Kong Monetary Authority.
"Stabilizing the market was their job. The mainland gave us US$10 billion in stabilization funds, but what were the people at the Hong Kong Monetary Authority doing with that US$10 billion?"
"What a bunch of good-for-nothings!"
Viewers watching on television chimed in, "$10 billion would be enough to buy the Soros Group."
Some extreme individuals joked, "Don't even mention it. When Du Xingzhi first came to power, I thought he was just a good-for-nothing."
"Having no economic acumen and no means of maneuvering in the stock market, entrusting the security of Hong Kong's currency to such incompetent people is truly sending them into the tiger's den."
Immediately, all the sarcastic voices in the media were directed at the Financial Secretary and the Hong Kong Monetary Authority.
Yang Fugui, the director of the Financial Affairs Department, called Du Xingzhi several times to confirm the next steps for market intervention.
......
Continue read on readnovelmtl.com
