At this point, Asian retail investors, conglomerates, and financial tycoons gradually realized that things were getting increasingly out of control. Among them, institutions and private capital with relatively conservative investment styles judged that entering the stock market at this time was extremely risky, so they all abandoned the venture and fled.
Conversely, some people saw the opportunities in the turmoil and believed that following Soros's international hedge funds was profitable, so they joined the short-selling side.
With international speculators coming on strong, almost all stock market data points to a bearish outlook, leading to a surge in short selling.
After returning to Longteng, Chen Dong barely rested before joining the battle.
“Just two rest days apart, as soon as the Hong Kong stock index opened, speculators’ positions increased exponentially.” Wangcai said with some despair, “Today alone, international speculators dumped about HK$45 billion, which has already broken the platform’s trading volume record, and they have also consumed more than half of the Hong Kong Monetary Authority’s dollar reserves.”
Chen Dong frowned deeply as he looked at the bleak data on the stock market.
At this moment, Chen Dong thought of the two bigwigs from the Hong Kong Monetary Authority and the Financial Secretary who risked the great flood to find him and discuss Hong Kong's strategy for dealing with international speculators.
“I tried my best to persuade the Hong Kong Monetary Authority not to raise the interbank lending rate, but they still did it.” Chen Dong sighed and said through gritted teeth, “Now the interbank lending rate of HSBC Hong Kong has reached 15% per annum.”
"Such a striking signal, it's no wonder that international speculators rushed in. I'm afraid this strategy implemented by the Financial Services Authority was already part of Soros's plan."
Wangcai and Ma Guoliang exchanged a glance and said with difficulty, "Actually, this matter cannot be entirely blamed on the Hong Kong Monetary Authority, after all, they launched a major offensive against Hong Kong's heavyweight stocks a month ago."
"The indices of Hong Kong's real estate, public utilities, agriculture, forestry and fishery sectors have been suppressed to the point of being unable to rise. If they had not raised interbank lending rates at that time, the Hong Kong Monetary Authority would probably not even have the capital to resist the suppression of the exchange rate now."
Anne was following the whole thing closely, so she understood the decisions made by the Hong Kong Monetary Authority and the Financial Secretary. "This time, the international hedge funds were well-prepared to short the Hong Kong stock index, and they spent at least two or three months accumulating shares before taking action."
“The entire international hedge fund industry, with the funds controlled by Soros and Robertson alone, is even larger than that of HSBC. If the Hong Kong Monetary Authority hadn’t raised interbank lending rates, the waters of Hong Kong would have been muddied by them long ago.”
The increase in interbank lending rates was already a fait accompli, and Chen Dong couldn't say anything about it. At this point, there was still more than an hour before the Hong Kong stock market closed.
As Chen Dong previously stated, the time for them to enter the market would be when the Hang Seng Index falls below 7,000 points.
...
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