Meanwhile, international speculators with positive expectations for gold prices will choose to be bullish.
In short, financial markets are influenced by both the actual amount of money in circulation and the market expectations of international speculators.
In the last few days of October, the Dow Jones Industrial Average triggered a circuit breaker for the second time.
The market circuit breaker was triggered because of the overall market decline. In order to stabilize the market and give investors a cooling-off period, the S&P 500 index was forced to suspend trading.
The fluctuations in gold prices directly affect global stock markets and all assets linked to gold prices, most notably the currencies of various countries.
The rise and fall of paper currency value is directly related to the global futures market.
As a result, the decline in Swiss gold prices first severely impacted European countries such as Germany, France, and Switzerland, and subsequently spread the gold liquidity risk to regions such as Australia, Southeast Asia, South Korea, and island nations.
On the day the Dow Jones Industrial Average triggered its circuit breaker, Australian stocks fell 108 points, a drop of 2.9%.
At this point, the settlement date for the October stock index futures contract is very close.
Many short sellers are facing forced liquidation because they cannot find suitable Hong Kong dollars for settlement.
International speculators who couldn't retreat in time are snapping up stocks everywhere in the Hong Kong stock market.
Chen Dong has received the tenth call from the securities company so far today, and the content of each call is the same: urging him to close his positions as soon as possible.
With only four days left until the October futures contract delivery date, global stock markets are sluggish due to falling gold prices.
The Hong Kong stock market, which had just begun to recover, saw the Hang Seng Index decline once again.
Chen Dong was watching the market trend on his computer, watching helplessly as the Hang Seng Index broke through the 1000-point mark.
At this moment, the brokerage called again, "Mr. Chen Dong, the index has dropped to a certain level. Are you sure you don't need to close your position?"
Chen Dong rejected his suggestion for what felt like the umpteenth time, saying, "I think the Hang Seng Index still has room to fall, so there's no rush."
"The current drop in gold prices has triggered turmoil in global stock markets, and with such strong short selling in Hong Kong stocks, it is clearly not a good time to settle accounts."
Upon hearing this, the account manager on the other end of the phone paused for a moment before saying, "But you have more than 20,000 short positions in your hands. Even if you wait until the bottom to close them, it will still take time."
"There are only four days left until the closing date."
Chen Dong remained silent, then said somewhat impatiently, "I know. I'll call you to close my position once the Hang Seng Index drops to my desired price level."
In the Hong Kong dollar market, one standard lot equals 10,000 contracts. Chen Dong bought 9,000 short positions from Asia Travel Capital and subsequently bought many more from securities companies.
Based on current prices, each of his short selling orders has yielded a profit of over HK$60,000.
There has been a large-scale liquidation of short positions. The Hong Kong Monetary Authority has received information that major short sellers have exited their positions in index futures.
At this point, Du Xingzhi could finally confirm that the short sellers were indeed about to exit the market.
His superior, Yang Fugui, finally breathed a sigh of relief.
For a full month, the Hong Kong dollar fluctuated, and the turmoil in Hong Kong's financial market affected many industries in Hong Kong.
This has also led Hong Kong stock market investors and ordinary citizens to doubt the Hong Kong Monetary Authority and the Financial Secretary, and to question and distrust the government's regulatory and regulatory functions.
Two days later, the Hang Seng Index fell back to the previous level.
Chen Dong immediately called the brokerage firm and ordered, "Release 1,000 lots first to test the market sentiment."
The average price for 1,000 short positions is 9,999.9 points.
The short order was quickly absorbed.
However, Chen Dong came to the opposite conclusion, suggesting that the Hong Kong stock market index still had room to fall.
"Boss, Fang is here."
Just as Chen Dong was wondering whether he should release all his short-selling orders into the market, Annie and Wolong brought Afang in.
After not seeing him for two days, Afen tidied herself up and wore a white dress when she came to see Chen Dong today.
It was the first time Chen Dong had ever seen her in a dress, and he was completely mesmerized.
“Boss!” Annie reminded him, “We’ve already arranged accommodation for Afang near the company, shouldn’t we get her on the job now?”
Chen Dong snapped out of his daze and said coldly, "Didn't we already have two days to prepare? Let's start work today."
After saying that, he carefully observed Afang's expression, and only when he saw Afang nod did he breathe a sigh of relief.
"Take her out to change her clothes. It's too flashy for the office," Chen Dong casually suggested.
Annie smiled and put her arm around Afang, gently scolding Chen Dong, "What are you pretending to be so serious for? Isn't this your favorite style?"
This remark was quite provocative, and Afang blushed instantly upon hearing it.
Annie didn't make things difficult for him and simply took Afang out to pick out clothes.
By the close of trading in the afternoon, the Hang Seng Index in Hong Kong had fallen to 9961 points.
Chen Dong immediately called the brokerage firm and asked them to place all the short selling orders on the market.
At this time, the money market was under heavy pressure from short sellers, which gave Chen Dong an opportunity to take advantage of the situation.
His 20,000 short positions were absorbed shortly after they were placed on the market.
The previous rise in the Hang Seng Index allowed many small institutions to reap the benefits. After the decline in Hong Kong stocks, they shifted their investment focus to shorting Hong Kong stocks while increasing their long positions in Hong Kong stocks to create a relatively complete and sound investment portfolio.
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