However, unlike Soros, Chen Dong mostly manages his own assets. Once their money is invested and trapped in the stock market, the liquidity of Longteng Company will be reduced by at least half.
That's not the worst part. The worst part is that while Longteng suffered losses, Soros's international hedge fund was able to collect a steady stream of capital through the World Bank, international financial giants, and foundations of all sizes, and then inject it into the stock market.
“Blindly playing the game can easily lead to accidents. We must come up with a foolproof strategy to deal with international hedge funds,” Chen Dong said earnestly, looking at Lin Zhiyuan.
Lin Zhiyuan met his gaze and guessed what he was thinking. "You want to ask for outside help?"
Chen Dong nodded, and Lin Zhiyuan continued, "Do you want to invite the four major families of Hong Kong, or the Hong Kong Monetary Authority and the Financial Secretary?"
“After all, the four major families in Hong Kong are private capital, just like us. Even if they increase their stakes, the impact on international hedge funds will be limited.” Chen Dong’s eyes darkened. “The Hong Kong Monetary Authority.”
These five words seemed to carry a heavy weight. Chen Dong continued, "If we want the Hang Seng Index to break through a new threshold, we must seek the support of the government."
“But…you could feel Yang Fugui’s attitude when you answered the phone today,” Lin Zhiyuan said with some disapproval, “Both the Hong Kong Monetary Authority and the Financial Secretary are very averse to interfering in the market.”
"The stock market has not yet recovered to its former prosperity. The Hong Kong Monetary Authority is neither willing to admit that it has not intervened in the market, nor does it dare to defy the free market by directly intervening."
They had prepared nearly $260 billion in reserves to protect the market. Such a large amount of funds would be enough to bail out the market in Europe and North America. However, they were afraid that Soros's desire to win was too strong and that he would increase his investment at the last minute.
If Hong Kong's stock index futures are shorted, it means that all the stock assets they previously bought in various sectors will face the risk of shrinkage.
In other words, all their efforts from August until now have been in vain.
More importantly, no other financial tycoon besides them can or is willing to provide such a large amount of funds to support the market.
The four major families do have the capability, but they won't do unprofitable deals. If Soros increases his stakes and short sellers make a strong comeback in the future, the four major families will also find themselves in a dilemma.
“We had an agreement with the Monetary Authority beforehand that they would only come forward, using the media to release positive news, while taking the blame for intervening in the market,” Lin Zhiyuan reminded Chen Dong. “I advise you not to have too high hopes.”
Chen Dong gritted his teeth and mentally prepared himself to call Yang Fugui of the Finance Department.
......
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