In the Hong Kong stock market, sell orders have been withdrawn by holders, while buy orders remain at low prices with no buyers.
After waiting for 10 minutes, short orders increased, but there was no movement from the private capital side. Soros smiled sinisterly, "It seems their funds have dried up."
"Without the government's help and without the mainland's guarantee, the four major families and Chen Dong's offshore companies are all trapped."
He turned to Robertson and said, "My thinking is right. We must get through August and we absolutely cannot switch positions!"
Upon hearing this, Robertson's eyes rolled back. His company's internal liquidity was already low, and to cooperate with Soros's frantic selling, he not only took shares from his own company but also borrowed a lot from overseas brokerage firms and commercial banks.
If international hedge funds can quickly resolve their issues in August, they will inevitably have to invest a certain amount of capital in the entire stock market. However, this would mean that their costs for dumping shares would increase.
Another possibility is that if international hedge funds extend their positions until September, this would undoubtedly increase their holding costs based on the current interbank lending rates stipulated by the Hong Kong Monetary Authority.
In short, Tiger Fund is now in a dilemma. Holding positions means losses, and Robertson has no intention of staying in the Hong Kong stock market. He just wants to cash out and leave as soon as possible.
While Soros and Robertson hesitated, Chen Dong ordered traders to establish a short position of nearly 10,000 lots when the Hang Seng Index plummeted to its lowest point.
The Hang Seng Index fell from 8700 to 8660 and then to 8540, and all buy orders disappeared.
Not long after, a purchase order of a relatively small amount suddenly appeared in the HSBC Holdings transaction log.
Then, payments came in one after another, the scale of which left even the seasoned Soros speechless.
"What's going on?"
Chen Dong said confidently, "They have taken so many of our liquidation orders, and now their positions are enormous. International hedge funds are deeply entrenched in their problems, which is a good opportunity for us to get involved."
At the same time, the short selling orders placed by offshore companies were withdrawn one after another, and the Hang Seng Index rose sharply.
International hedge funds held an emergency internal meeting, and the top management had become numb to the news of Soros's failed attempt to suppress the Hang Seng Index.
Several senior executives directly demanded in a conference call that Soros must transfer his holdings.
Soros withstood the pressure and insisted on keeping the battleground in August.
He forcefully ordered all traders to sell stocks and dump them, but the Hang Seng Index remained stuck at 8700 points, as if it were being lifted by a jack.
Then, Cyber rushed in from outside and said to Soros in a panic, "The Financial Services Authority has announced that they will absorb as many sell orders as there are in the stock market."
"HSBC Hong Kong, which received advance notice, and foreign investment banks have already joined the long position. Now we are isolated and helpless, with limited chips on hand. We can only ask a few large fund companies within the hedge fund to increase their chips."
Upon hearing this, the usually arrogant Soros lowered his head deeply. "The higher-ups think we have no hope of suppressing them. Their idea is either to leave now or to transfer our positions to September."
Cyber was desperate. "Even our own people won't help us?"
"We're fucked."
In order to follow Soros in shorting the Hong Kong stock market, he directly clashed with his employer, Asia Investment Bank Capital, and unexpectedly met with this outcome.
Just as Soros and Cyber were still unwilling to give up and racking their brains about how to turn the tide of the battle on the last day of August, Robertson sent them a letter directly.
"Tiger Fund is overwhelmed and its cash flow has dried up."
Within two days, the bulls and bears poured at least HK$100 billion into the stock market on the 28th and 29th. However, no matter how much the Hang Seng Index fell, it was maintained at 8700 by private capital that was supporting the market.
Robertson had never supported Soros's rash attack, and now that the company's cash flow has dried up, he has no interest in lingering in the Hong Kong stock market.
Tiger Fund and Quantum Fund are the two major protectors of international hedge funds. Without Tiger Fund, the entire international speculative capital would lose its arms.
With things having come to this point, even if there was only one day left in August, they would have absolutely no chance of turning things around. Soros gritted his teeth and said desperately, "Roll over to September."
With the battle lines extended, Chen Dong had enough leverage, which put pressure on the Hong Kong Monetary Authority.
For the Hong Kong Monetary Authority, as long as international speculators don't leave Hong Kong, the crisis in Hong Kong will always be looming over their heads.
On September 1, Chen Dong received a message from an international hedge fund insider, saying that several of their funds had been dissolved, including Robertson's Tiger Fund.
In order to stop losses in time, international hedge funds do not consider the price of futures indexes; they just want to buy stocks as soon as possible to return them to the brokerage firms and close out their positions.
In short, the war with international speculators has come to an end.
In his previous life, Soros was attacked by the bulls and suffered repeated defeats. Although international hedge funds did not make a fortune, they also did not suffer actual losses.
In this life, Chen Dong prepared sufficient funds to support the market. With the support of the Hong Kong authorities and the mainland, he caused Soros to suffer heavy losses. Financial giants within international hedge funds, unable to bear such high holding costs, fled one after another. Tiger Fund was severely damaged in the sell-off frenzy in August and finally announced its dissolution in early September.
"We won!" Yang Fugui called Chen Dong's office directly, not caring whether Chen Dong wanted to listen or not, and said, "Mr. Chen, we won!"
When he was needed most, Yang Fugui did not stand up for them. Even though the Hong Kong Monetary Authority issued a statement saying it would do its best to take over, it could not quell Chen Dong's resentment towards them.
Chen Dong exchanged a few perfunctory pleasantries before hanging up the phone.
In the following days, Mr. Lin and the four major families of Hong Kong, as well as Mr. Du Xingzhi, the Chief Executive of the Hong Kong Monetary Authority, all called to congratulate him.
Chen Dong was fed up with their calls every day. He took the jewelry and rings he had commissioned from a designer in China and booked a plane ticket to Russia.
When I met Yulia, she was sitting in her office fiddling with the A49 rocket launcher that her company had just produced, her eyes filled with hostility.
"Chen Dong?" Yulia instantly reverted to her girlish demeanor, leaving the group of special agents beside her, who had been anxiously waiting for her to speak, completely stunned.
Chen Dong smiled and put his hand on her waist. "Long time no see. How have you been?"
"You all go out first," Yulia said to the special agents, her face turning cold.
...
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