At this time, the Hong Kong stock market was like a lump of clay that could be kneaded at will, with several hands intervening, attempting to mold the stock market into their desired shape.
Following the rebound of the Hang Seng Index, the Financial Secretary made a public statement to the media:
"The Hong Kong government has great disdain for the speculative behavior of international speculators. We abhor the practice of international hedge funds disrupting the stock market. Financial speculation cannot generate upward momentum in the market. We firmly oppose all behaviors that disrupt market order."
"The Hong Kong Monetary Authority and the Financial Secretary hereby issue a joint statement: We are determined to fight against international speculators and international hedge funds to the end."
"Hong Kong is a free port, but it is by no means a place for you to act recklessly."
“If international hedge funds try to use the interests of all Hong Kong citizens for their own gain, our Hong Kong Monetary Authority will fight them to the end.”
Seeing that the reporters below were very curious about the Hong Kong Monetary Authority's methods for rescuing the market, Yang Fugui immediately hinted, "This year is the second year since Hong Kong's return to China. We are fighting on the front lines, and the mainland has also provided us with considerable support from all sides."
"Ladies and gentlemen, although international speculators are coming on strong, I believe that with the support of the mainland, we are absolutely capable of fighting back against them."
Yang Fugui's speech greatly boosted the confidence of the bulls.
However, just two days after the Finance Department issued its statement, even worse news came: Russian financial magnates and credit institutions fled the country, and the country's economic assets have shrunk dramatically.
In addition, the oil war in the Middle East that lasted for several months caused global oil prices to plummet. Russia was unable to revive its stock market by leveraging its oil trade and could only remain dormant in the sluggish market.
With international oil prices falling, Russia had no choice but to cut off oil and gas supplies to Europe in order to protect its assets from being depleted.
Oil is hailed as the lifeblood of industry. For a long time, European industry relied on two import channels: the Middle East and Russia.
Fluctuations in oil prices caused sustained volatility in major European stock markets, and with the effects of Euro-American integration, the stock market turmoil in Europe quickly spread to North America.
The drop in international oil prices has not only put Russia in a difficult position, but also the United States. Under the influence of multiple factors, global stock markets have experienced a series of dramatic drops in indices.
The impact of the European and American financial markets has further spread to Hong Kong, where the Hang Seng Index fell again after a slight rebound.
Even with all of Longteng's funds mobilized, Chen Dong was unable to push the index any further upward.
On August 12, the Hang Seng Index fell to 6460 points, hitting a new low in 95 years.
With the stock market in a slump, various industries in Hong Kong have gradually fallen into a state of recession, with Hong Kong property prices dropping by as much as one-third.
Among the four major families, MCC Property suffered the most severe losses. The drop in housing prices left Hong Kong's financial tycoons speechless.
With the economic downturn, the entertainment industry has also shut down one after another, and the operating rate of related enterprises and projects is severely insufficient.
The entertainment industry is inherently dependent on economic prosperity; when the economy is sluggish, the entertainment industry naturally falls into recession as well.
Many of Hong Kong's top celebrities have had almost no schedules during these months of financial market turmoil.
Due to the fierce battle in the financial markets, banks, credit institutions, and listed companies in Hong Kong have either gone bankrupt or laid off employees.
With the Hong Kong dollar's exchange rate against the US dollar continuing to decline and Hong Kong's industries experiencing inflation, ordinary people no longer had spare money for entertainment and consumption.
After seeing Huaxia Star's latest income and expenditure statement, Zhou Huimin had to make a decision.
“Starting this quarter, we will reduce the number of projects that start construction,” she told Xiang Huaqiang.
Xiang Huaqiang was aware of the company's situation, but since their company had signed many celebrities, reducing the number of projects now would mean a further decrease in these celebrities' income.
"If we reduce the number of projects we start, what will happen to the artists who rely on us for their livelihood?" Xiang Huaqiang asked.
Vivian Chow frowned. "There's nothing we can do. At most, we can only guarantee the projects of top actors and singers. As for the others, let them hold on and we'll talk about it after this critical moment of the Hong Kong financial crisis."
Top artists don't attend company meetings, but they usually send their agents. What Zhou Huimin said in the office at that moment made the other artists' agents feel very disheartened.
Seeing the complicated expressions on everyone's faces in the office, Vivian Chow coughed twice and forced a smile. "Fortunately, the two films we made before both won Oscars."
"These two awards alone have helped us solidify our position in the industry."
"I know that everyone is unhappy about the reduction in the number of projects starting construction, but please believe that all the decisions we are making now are simply to adapt to market changes."
"This financial storm in Hong Kong will last at least a quarter. Many companies and studios in our industry have already gone bankrupt. I don't want Huaxia Star to follow in their footsteps."
As soon as the words were spoken, the expressions of the several artist managers in the office softened slightly.
However, the immense pressure still fell on the artists. Although Huaxia Star's top artists had signed cooperation agreements with the company, they each had their own private teams.
Reducing the number of projects started by companies means that they will not only incur huge expenses, but also face the risk of losing their jobs at any time.
This chapter is not finished, please click the next page to continue reading!
Continue read on readnovelmtl.com
