In June, the weather in Shenzhen gets hot early.
Just like now, the sun is shining brightly and the atmosphere is as warm as fire.
Chen Dong stayed in Shenzhen for a while, mainly to spend time with his parents.
Because he increasingly felt that being able to be with his parents was a blessing.
The father felt that he had so many businesses and so many things to do, so he said that he could come back to visit when he had time, but he didn't need to stay with them all the time.
Chen Dong would of course not agree, so he would often stay at home for two days and then go to Longteng Building for a few days to handle some work-related matters.
It can be said that they manage to balance work and life perfectly, appearing quite leisurely.
However, he knew he would be busy soon, so he tried to make time for his parents.
At that moment, Chen Dong was at the Longteng Building.
He was on the phone with Li Aiguo, the president of the Pengcheng branch of China Construction Bank.
On the other end of the phone, Li Aiguo chuckled wryly, "Brother Chen, I've received the payment you asked someone to settle. You really are a prophet."
Chen Dong and Li Aiguo exchanged a few laughs.
After a moment's thought, he understood what Li Aiguo meant.
It was actually about him borrowing funds from the Construction Bank.
He made a questionable move when he bought a house for his parents and invested in a supermarket in Shenzhen.
Simply put, he used the $5 million he held as collateral to borrow roughly the same amount of RMB from the bank.
Li Aiguo felt at the time that he had gotten a great deal, as he had obtained a huge amount of foreign exchange and lent out such a large sum of money, and it was lent to Chen Dong, a powerful client.
Killing two birds with one stone, perfect!
So he was happy for quite a while, but as time went on, he gradually felt that he had been taken advantage of.
Under normal circumstances, banks will never lose money, because the annual interest alone can amount to hundreds of thousands of yuan.
But Chen Dong's actions...
Li Aiguo never expected that the bank would encounter a "second shift" situation!
The problem lies in the exchange rate between the RMB and the US dollar.
In 1991, 1 US dollar could only be exchanged for 4.6 RMB, which was less than 5 RMB.
But now, 1 US dollar can be exchanged for 8.6 RMB.
In other words, even with the same $5 million, after deducting the interest incurred by Chen Dong due to the loan, the bank still has to pay an extra two million RMB out of thin air.
All of this stems from the continuous depreciation of the RMB.
Although it wasn't until January 1, 1994, that the People's Bank of China officially announced the unification of the official RMB exchange rate and the foreign exchange adjustment price.
The RMB was quoted at 8.72 against the US dollar, a 33% depreciation compared to the RMB/USD exchange rate of 5.7 on December 31, 1993. However, the depreciation of the RMB did not happen overnight, but rather was a continuous process.
As early as the end of 1992, the RMB began to depreciate quietly, from 5.5 in the middle of the year to 5.9 at the end of the year, a drop of 7%.
Chen Dong used all the loan funds he received to buy houses. It's fair to say that the properties he bought appreciated rapidly…
Chen Dong's actions left Li Aiguo speechless and hurt.
No wonder his tone of voice sounded a bit strange.
Chen Dong grinned, "Brother Li, I estimated that the RMB would depreciate, but I didn't expect it to be like this, depreciating continuously and by such a large margin... I guess it's just luck."
Upon hearing this, Li Aiguo on the other side silently rolled his eyes.
He certainly didn't believe Chen Dong's words.
Li Aiguo felt that Chen Dong must have some secret channels that allowed him to obtain certain information in advance.
After all, the trend of exchange rate changes is not something that ordinary people can know.
If it were truly a matter of luck, then Chen Dong could never have been so meticulous in his actions, and at the time he was so certain that he would not exchange his US dollars for RMB until after 1994.
“Brother Chen, once the formalities are completed, I will transfer the $5 million you mortgaged to the bank to you. However, it can only be in RMB.”
When Li Aiguo said those words, he felt a mix of emotions, including joy and heartache, and he was torn between them.
Fortunately, he had $5 million in foreign exchange.
What frustrated him was that he had spent so much RMB.
People in finance are all calculating.
For them, the best outcome is for income to exceed expenditure.
But in this situation, it's really hard to make a decision.
However, Li Aiguo soon no longer needed to worry, because Chen Dong's mortgage loan was due.
"Hehe, of course, we'll follow the contract! You can rest assured, I'm a law-abiding citizen," Chen Dong replied.
This point was already stated in the previously signed loan agreement, so Chen Dong naturally had nothing to say.
Besides, Chen Dong also needed to help Li Aiguo find some psychological balance, so that he would feel that he wasn't completely at a disadvantage.
If Chen Dong insists on settling in RMB, then he is just being unreasonable.
After chatting for a while, Chen Dong hung up the phone.
...
After finishing things here, Chen Dong told his parents that he was going to Hong Kong.
He did have something to deal with, namely the impending financial crisis facing Latin American countries.
As an international financial investment expert, Chen Dong has long had in-depth analysis of the financial situation in various countries around the world.
I have a vivid memory of the key moments.
Based on the timeline, after the People's Bank of China announced the devaluation of the RMB and the Federal Reserve raised the interest rate several times, a wave of interest rate hikes began to sweep the globe.
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