"I and all the senior executives of the Hong Kong Monetary Authority are discussing whether the Hang Seng Index data over the past two months has been so unfavorable due to the appreciation of the Korean won and the outbreak of bird flu in Hong Kong."
"After all, the world's financial power is neither too great nor too small. If international capital flows out of Hong Kong, the Hang Seng Index will inevitably fall."
Du Xingzhi paused, carefully observing Chen Dong. "One contradiction is that although we have the ability to fight against international speculators, we are not clear about their position allocation and the scale of funds they have invested. If we resist rashly, we may be diverted and defeated one by one."
Chen Dong frowned. What Du Xingzhi meant by diverting the flow was actually splitting the market support forces in Hong Kong and the mainland into two waves: one for the stock market and the other for the Hong Kong stock index.
The ideal scenario for market stabilization would be for the Hong Kong Monetary Authority (HKMA) and the Financial Secretary to join forces with Hong Kong's financial giants, pooling their financial resources and exchange rate tools to stabilize the Hang Seng Index and prevent it from declining further.
However, because the international speculators entered the market with unusual discretion, the market participants didn't even have time to figure out their strategy. They could only judge their actions based on the data visible on the market, but this method of judgment was too primitive and inefficient.
At this point, Du Xingzhi looked up at Chen Dong and tentatively asked, "Mr. Chen, you've come to us on your own initiative. Do you want to cooperate with the Hong Kong government to jointly combat international speculators?"
Chen Dong remained noncommittal, vaguely saying, "Soros has harassed Hong Kong several times, and I've long disliked him. This time, I want to make sure he doesn't leave alive."
Hearing such domineering words, Du Xingzhi leaned to Chen Dong's side and asked curiously, "How much capital do you have?"
Chen Dong smiled wickedly, "At least HK$100 billion, which can be withdrawn at any time."
“HK$100 billion?” Du Xingzhi was full of questions. The Hong Kong Monetary Authority and the Financial Secretary’s joint account only had a basic foreign exchange reserve of HK$1 trillion, and the amount that could be freely withdrawn from these HK$ reserves was very limited.
Changes in most financial accounts will trigger a series of reactions, so the Hong Kong government generally does not mobilize funds on a large scale.
This Chen Dong shamelessly claimed that he could withdraw HK$100 billion at any time.
"It seems that Mr. Chen had prepared to fight against international hedge funds long ago, otherwise he wouldn't have converted these 100 billion assets into Hong Kong dollars so quickly."
Chen Dong shook his head and said rather modestly, "Fortunately, a considerable portion of the assets are still being converted."
“President Du, the reason I’m revealing such a private bottom line this time is that I want to negotiate with higher-ups in the Hong Kong government,” Chen Dong said bluntly to Du Xingzhi. “Excuse me for being frank, but your level is not high enough.”
Above Du Xingzhi was Yang Fugui, the Finance Minister, and above Yang Fugui... there was only one person left.
Du Xingzhi's originally amiable expression suddenly turned much colder. "It seems that Mr. Chen has a very long-term vision. This time, you don't want to cooperate with the Hong Kong Monetary Authority or the Financial Secretary, but with the Chief Executive of Hong Kong, right?"
Chen Dong raised an eyebrow. "In short, he's the person in charge who can make the final decision on policies."
His words clearly indicate that he wants to meet with the Chief Executive and negotiate terms with him.
Du Xingzhi gasped. “Why don’t you put your conditions out there first? I’ll go back and discuss it with the Financial Secretary before deciding whether to pass them on to the Chief Executive of Hong Kong.”
When Du Xingzhi said this, he was still feeling uneasy. He was the head of the Hong Kong Monetary Authority, and in theory, it should be the financial tycoons and third-party institutions in Hong Kong who were trying to curry favor with him.
After all, the financial sector is subject to administrative supervision and management.
Sometimes, a single word from the Monetary Authority of Hong Kong or the Financial Secretary can cause the investments of a financial tycoon or a third-party institution to shrink.
However, Du Xingzhi seemed particularly insecure in front of this young man.
According to Chen Dong, if he can readily allocate HK$100 billion in spot trading, it demonstrates that his strength far surpasses that of ordinary international speculators.
Chen Dong could have freely entered and exited the stock market, or even joined an international hedge fund, like Cyber of Xiangjiang Yellow River Capital. The reason he came to tell him today was simply because he was showing leniency to the Hong Kong government.
......
Continue read on readnovelmtl.com
