However, this effective way of avoiding risk is only useful for small organizations.
For an institution as large and unwieldy as HSBC, the process of responding to market changes and making adjustments at any time involves far too many procedures.
It is precisely because HSBC's adjustment mechanism is not flexible enough that they suffer significant losses every time market conditions change.
What's reassuring is that HSBC is a large bank, not a small institution, and when they make a decision, they often need to conduct extensive market research.
At the same time, every decision they make is backed by a think tank and risk assessments, which, while not guaranteeing huge profits, minimizes the risks.
Chen Dong sold 20,000 short contracts, and such a large transaction naturally attracted the attention of the Hong Kong Monetary Authority.
The Chief Executive of the Hong Kong Monetary Authority, Du Xingzhi, somehow managed to find out who owned the short selling order: Chen Dong of the Longteng Group.
Du Xingzhi and Chen Dong were not acquainted.
"Now that you've found out it's Chen Dong, isn't the rest simple?" Yang Fugui asked.
Du Xingzhi asked knowingly, "But he's a mainland entrepreneur, can we put pressure on him?"
"The mainland has clearly stated that it will bail out Hong Kong's financial market, but as a mainland entrepreneur, he is deliberately making things difficult for us. What does this mean?"
Yang Fugui continued, “Chen Dong previously asked the four major families to protect the market, but now it seems his motives weren’t so simple.”
"This company isn't trustworthy. If we don't investigate, how can you continue to do business with them?"
Knowing Yang Fugui's attitude, Du Xingzhi felt more confident.
Du Xingzhi could only approach him with gentle methods, not with overly forceful ones.
He wanted to find Chen Dong to negotiate and have him, on behalf of the short sellers, suspend the attack on the Hong Kong dollar.
However, before setting off, he still thought that no matter what, Longteng Group was a major enterprise in China, and he could not just rashly go up to Chen Dong and make trouble for him.
After discussing it with Yang Fugui, Du Xingzhi decided to ask Mr. Li Jiacheng to act as an intermediary to contact Chen Dong.
When Li Ka-shing and Du Xingzhi appeared in the office at the same time, Chen Dong felt the scene was incredibly bizarre.
After all, although he had a good relationship with Li Ka-shing, he hadn't really had much dealings with Du Xingzhi.
“Mr. Chen, let me introduce you. This is Mr. Du Xingzhi, the Chief Executive of the Hong Kong Monetary Authority,” Li Ka-shing said.
......
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