Soros believes that the Dow Jones Industrial Average is facing a decline mainly due to their previous article published in The Wall Street Journal.
In that article, his main target was Russia.
With its reposting and amplification by major media outlets, Soros's article quickly attracted the attention of international speculators.
With repeated reports of negative news regarding the Russian ruble, even the Federal Reserve and the International Monetary Fund, if they want to help Russia out of its predicament, have to consider their own size and resources.
For Soros, everything Russia does is under his control, but things are not so smooth in the Hong Kong stock market.
The Hang Seng Index in Hong Kong has risen for four consecutive days and has even broken through 7,500 points at one point.
"It's rising again. It rose for 584 days on the first day, 200 points on the second day, and today, the Hang Seng Index has broken through the 7500 mark!" Cyber read the numbers on the table, not daring to look at Soros at all.
Sure enough, Soros flew into a rage after hearing the report data:
"At this point, if anyone still tells me that the mainland didn't participate in the market intervention, that's simply a fantasy."
"The mainland once promised the Hong Kong government that it would give Hong Kong enough economic freedom, but unexpectedly, only one year after Hong Kong's return to China, they are so eager to show off their power."
Soros angrily denounced, "All our previous efforts in rescuing the market in Hong Kong and mainland China have been wasted."
Just as he finished speaking, someone suddenly entered the office. Cyber was somewhat surprised. "Mr. Memphis?"
As Memphis walked into the office, he said, "It would be best if the Hong Kong government intervened to support the market. That way, we can easily accuse them of interfering in the market, rendering the title of Hong Kong a mere shell."
Many people believe that the Hong Kong government's power is limited. Even a powerful entity like the Bot was unable to compete with international speculative capital, and in the end, the money was spent but the baht was not saved.
Memphis's words gave Soros immense confidence.
“But if it really is the Hong Kong government involved in propping up the market, it means they can boost the stock market in a short period of time, which is undoubtedly a major obstacle for our attack on Hong Kong.” Cyber is still worried that Hong Kong will get out of control.
"Regardless of whether Hong Kong cares about the title of free port, their strong market support has pushed the index away from our average position size."
Cyber intentionally reminded Soros, "Gentlemen! If the Financial Supervisory Authority continues to intervene in this way, we may not have any opportunities to exploit loopholes."
The term "this state" refers to a situation like that day, where the Hang Seng Index rose by 584 points in a single day.
Not to mention Hong Kong experts and scholars, even the Soros Group and their associates, who were shorting the stock market everywhere, almost never saw any stock market index rise or fall by more than 500 points on the same day.
In response to Cyber's concerns, Soros countered, "We are shorting the entire Hong Kong stock market. Before our attack, we bought heavyweight stocks in agriculture, forestry, fisheries, and public utilities to allocate to our portfolio. The specific operation could be to amplify the negative impact of the Hong Kong dollar while simultaneously manipulating these heavyweight stocks."
"No matter how rich the Hong Kong authorities are, they can't possibly buy up all of Hong Kong's stocks. As long as they compete with us for bargaining chips in the financial market, we will have the opportunity to deplete their foreign exchange reserves."
This statement was unanimously agreed upon by everyone in the office.
However, Robertson felt that Soros was a bit too confident about taking over Hong Kong. He glanced at everyone in the office and immediately reminded him:
“Even if the Hong Kong government intervenes to support the market, we will still carry out the original attack plan. However, they are currently in high spirits, and if we continue with our previous offensive, it will be easy to walk into the line of fire.”
He turned to look at Memphis, his tone pleading and seeking agreement, “I suggest we take a short break and fight a war of attrition with them, using the international speculators’ resources to wear down their funds.”
“I agree.” This was a rare consensus reached between Soros and Robertson.
"In terms of action, we should temporarily slow down the pace of the attack against hedge funds. However, in terms of public opinion, we should continue to put pressure on the Hong Kong government. Without firing a single shot, we can make it difficult for them to maintain the Hang Seng Index they have raised."
When the Hong Kong authorities first attacked and devalued the Hong Kong dollar, they had dealt with the Hong Kong Monetary Authority (HKMA). However, because the authorities were somewhat restrained in maintaining the market, Soros did not take the HKMA seriously.
On the contrary, it was Chen Dong of Longteng and the four major families of Hong Kong who participated in the market protection at that time that made him feel anxious.
Chapter 1198 The Concerns of the Four Great Families
However, things are different now. The amount of funds they have now is incomparable to the amount they used to short the Hong Kong dollar last time.
Longteng's operations in the financial market have always been discreet; Chen Dong generally wouldn't expose himself unless it was necessary for public opinion.
After several days of intense competition, the Hang Seng Index has gradually gotten back on track.
At noon, Chen Dong took a break, and at that time Annie brought him a tea set that had been sent by Mr. Lin from the mainland.
“Boss, I think there’s something more to this gift from Old Lin, isn’t there?” Annie asked.
Chen Dong only glanced at it briefly before understanding what Elder Lin meant: "He probably already guessed that we were involved in supporting the market this time."
At this point, Annie looked at him cautiously and asked, "This matter has even alarmed Elder Lin?"
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