Robertson's traders calculated that to close all their positions, they would have to spend at least $50 million on fees, borrowing funds, and margin.
This only covers the procedural costs of closing out the position; it does not include the cost of the Korean won currency resources involved in the closing out.
The Korean won has now risen to an exchange rate of 980 won to one US dollar.
In retaliation against international speculative capital, the H country's financial regulatory agency and H country's asset management company have implemented a policy of withholding the sale of Korean won spot currency.
Therefore, there are almost no official buyers in the stock market.
Of course, this policy was not solely proposed as a form of retaliation. Currently, the Korean won market is experiencing severe inflation and soaring prices. If the government were to increase the amount of won in circulation at this time, it could potentially exacerbate inflation further.
The third reason is that H country's financial reforms are about to come to a close.
Currently, commercial banks and securities companies that have undergone reforms have gradually reopened for business.
Through fierce competition and evaluation, the remaining commercial banks have extremely high capital adequacy ratios and a certain degree of risk resistance.
Therefore, the Hong Kong Monetary Authority (HKMA) need not worry that not increasing the amount of currency in circulation would affect the operation of banks and securities companies.
Due to multiple factors, there are more and more sell orders in the Korean won spot market. Short sellers of the Korean won are also stepping up their efforts to buy up stocks from stock markets around the world in order to cover their previous short positions.
The devaluation of the Korean won was originally caused by their selling off of it. Now, they are raising the price and buying back the won, which has to some extent boosted the exchange rate of the won.
Because international speculators urgently needed to close out their positions in the Korean won, several instances of sellers competing with each other have occurred in global stock markets, ultimately driving up the exchange rate of the Korean won in Europe and North America.
This farce gradually reached Chen Dong's attention. Wangcai, watching them bicker like dogs, seized the opportunity to make a sarcastic remark:
"Strange things happen every year, but this year there are especially many. International speculators are even fighting over the Korean won in the world market."
With a grim expression, Chen Dong asked Wangcai, "How many heavyweight stocks do we still hold?"
“The short selling orders are gone, but the heavyweight stocks…” Wangcai immediately checked the data on the computer and then said, “We bought a lot of Korean won in the spot market to balance our positions.”
At this point, Wangcai suddenly realized something, his eyes lighting up as he looked at Chen Dong, "You mean, we should sell the Korean won we have now at a high price?"
“We made tens of billions by shorting,” Chen Dong smiled slyly. “If we went long now, how many billions do you think we could make?”
Wangcai beamed with joy, "We haven't bought many stocks heavily weighted in the Korean won, but if we time our moves right, we can earn at least a hundred million US dollars."
"Alright! I'll leave this to you." Chen Dong looked at Wangcai.
"Yes." Wangcai was extremely excited. He had been a trader in the Korean won market for a long time, and he had been following Chen Dong's instructions throughout the operation. This was the first time Chen Dong had given him the opportunity to make his own operational decisions.
End of November.
Chen Dong closed out all his short positions, and Wangcai looked at the numbers in his account with satisfaction.
In this attack on the Korean won market, they first shorted and then went long, making a direct profit of $12.3 billion.
After deducting margin deposits, transaction fees, and loan interest rates, they made at least $12.2 billion in net profit.
The securities company will gradually return the margin.
Some were happy while others were sad. Unlike Chen Dong's smooth liquidation, Robertson's Tiger Fund faced an exceptionally difficult path to liquidation because it could not buy Korean won on the market.
Although George Soros of the Quantum Fund reacted faster than Robertson, he wasn't much better off. The Korean won spot market was basically controlled by the Financial Supervisory Authority, H-country asset management companies, commercial banks, and H-country chaebol oligarchs.
To avoid being forced to liquidate their positions during the settlement period, they had no choice but to repurchase Korean won at a high price. With each round of bidding, the exchange rate of Korean won to US dollar had been driven up to 974 won.
International speculators and the H country authorities are vying for control of the market, driving the Korean won's value up to 972.54. As the won's value recovers, H country's composite index is also gradually rising.
After getting a bargain in the Korean won market, Chen Dong quickly withdrew from the scene.
When former Finance Minister Hong saw this dramatic scene, he almost burst into tears.
He felt mocked by fate.
After Kim Hee-chul took office, he did almost nothing; he just sat in the Ministry of Finance, and the data gradually improved.
The shrill alarm clock rang in the hotel room. Chen Nan struggled to raise his hand and threw the alarm clock on the ground.
What time is it?
A woman's voice suddenly came from beside the bed.
"ah?!"
Chen Nan woke up instantly, and seeing that the woman beside him was Zhou Huimin, he breathed a long sigh of relief, "What are you doing in my room?"
Zhou Huimin rubbed her temples. "I got drunk last night and just wanted to take a nap, but I ended up falling asleep."
Chen Nan then suddenly remembered that the three of them had been eating and chatting at the hot pot restaurant the night before.
After dismissing Zhou Huimin, Chen Nan quickly finished washing up and went straight to find Lin Zhiyuan.
"What exactly happened between Chen Dong, Annie, and Zhou Huimin?" Chen Nan barged into his office and questioned him directly.
Lin Zhiyuan was taken aback for a moment, then quickly asked, "You came all this way so early just to ask me this?"
“Last night I went to the pedestrian street with Annie and Vivian Chow. We had a good chat, but when we talked about Chen Dong’s relationship issues, Annie and Vivian Chow both avoided the topic.”
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