Soros wondered, "What's going on? Has the Hong Kong authorities intervened?"
He turned to look at Cyber and Robertson, who immediately said, "As expected. After all, the Hong Kong Monetary Authority is not to be trifled with. If they do nothing while we are suppressing the Hong Kong financial market like this, they will surely become a laughing stock in Hong Kong."
What was initially thought to be a routine intervention by the Hong Kong Monetary Authority has become increasingly apparent. Researchers have been reporting a surge in capital inflows into major Hong Kong stocks, as well as sectors vital to Hong Kong life, such as energy futures, manufacturing, and agriculture.
The Hang Seng Index has risen from 6,500 points to 6,700 points, and this is only the increase in one morning.
During his lunch break, Soros obtained all the trading data for all sectors in Hong Kong that morning. After seeing the results, he was left with a long period of confusion.
"Who is it? Who is this person?!"
Robertson remained unconvinced, saying, "I suspect they must have used a considerable amount of funds to prop up the market this time. The Hong Kong Monetary Authority itself has limited reserves, so they have no choice but to spend lavishly, hoping to restore Hong Kong investors' confidence in the financial market by concentrating all their resources to raise the market index."
"In other words, without subsequent financial support, they may not be able to maintain this upward trend, so we still have a chance."
Cyber held a different view on Robertson's opinion: "Even if the Hong Kong Monetary Authority wanted to support the market, it wouldn't be in such a hurry to throw so much money at once."
He turned his attention to the documents and pointed to several key data points, saying, "At the same time, the entire financial market, across all major sectors, experienced a sharp drop in data. This is not something that ordinary funds could achieve."
"Look again, the total number of trades in the stock market this morning has reached 60,000 lots. Even if the Monetary Authority has the courage, can they come up with such a large amount of funds?"
This question silenced all the researchers and senior executives in the office.
If it's private capital, emptying its coffers to go long, perhaps an international financial tycoon could do it, but if it's the Hong Kong Monetary Authority... well, that's another story.
The Hong Kong Monetary Authority (HKMA) represents the government, and Hong Kong, which prides itself on freedom, imposes many restrictions on the HKMA and the Financial Secretary's actions in the financial market. Therefore, even if the government wants to protect the market, it must do so within the framework of the rules.
That is why the Hong Kong Monetary Authority and the Financial Secretary were in such a passive position when the Soros Group first shorted the Hong Kong dollar.
The last time they successfully defended the market, it was because of the support from the mainland and Chinese-funded institutions, plus the joint efforts of the four major families in Hong Kong. This prevented international hedge funds from gaining any advantage in their short-selling of the Hong Kong dollar. In fact, when they were trying to close their positions by buying up shares, the Hong Kong Monetary Authority intervened and dealt a heavy blow to them. Some international speculators even lost a lot of money.
Having learned from the experience of the first attack, the Soros Group gained a certain understanding of the bottom line of the Hong Kong Monetary Authority and the Financial Secretary.
“This certainly doesn’t seem like something the Hong Kong Monetary Authority would do.” Soros gritted his teeth and said reluctantly, “There must be a top financial tycoon in Hong Kong’s financial market who is working against us.”
Upon hearing this, Robertson instinctively asked, "Are they the four major families?"
Soros shook his head. "Impossible."
“The last time we attacked the Hong Kong dollar, the four major families participated in the market support. They all used their official identities. After all, maintaining the Hong Kong stock market is beneficial for large companies to enhance their own influence, so it is unlikely that they would support Hong Kong anonymously.”
The group of people in the office discussed it back and forth, but still couldn't come to a conclusion.
In the afternoon, the Hang Seng Index surged, even exceeding the morning's gains by 1.4%. International speculators were completely helpless in the face of such a significant rise in the index.
Soros also tried to trigger a market reaction by selling Hong Kong dollars on a small scale, but the opposing force was too strong. They did not simply buy shares in a large listed company or commercial bank, but directly supported the entire industry and sector.
In this situation, Soros's small-scale sell-offs were like a drop of rain falling into a great river, completely unable to create a ripple.
In a desperate struggle, the Soros Group suffered its first major blow after nearly three months of victories.
Hong Kong stock market closed with the Hang Seng Index surging 584 points to close at 7224, a gain of 8.3%.
However, it took the Soros Group at least a month to push the Hang Seng Index down from its range point to 6500 points. In a sense, Chen Dong wiped out a month's worth of Soros' efforts in a single day.
This is nothing short of a myth for the stock market.
Hong Kong's financial market has shaken off its slump, with almost all sectors showing signs of recovery. Several listed companies have also temporarily recovered their previous losses due to soaring stock prices.
Especially in the real estate industry, the market value of real estate companies has evaporated by nearly one-third due to the pressure from the composite index. Moreover, it is not just Mung Kai Properties, but almost all real estate companies in Hong Kong are facing this predicament. With such a large-scale injection of funds this time, real estate companies have quickly regained their vitality.
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