But economists and financial experts who had learned their lesson ridiculed Xing Baohua in the media.
The stock market has already satisfied Xing Baohua's desire for excitement; he can only move on to even more exciting markets. Is that something he's interested in?
Is 10 billion a lot? It's easily wiped out by a single wave.
Some people have even used their connections with Daying to gather information about Xing Baohua within Daying.
We found many reports in The Sun that claimed Xing Baohua was following suit in order to place orders.
The moment you place a short order at any price, the pound immediately rises. It's practically working against Xing Baohua.
Even more outrageous, they produced a candlestick chart showing the upward trend of the British pound, using the chart to indicate the points where Xing Baohua placed his orders and how much he lost.
The mockery was there, but the backlash came just as quickly.
Some people who are close to Xing Baohua pointed out that when Xing Baohua was managing the Hang Seng Index, he also used this kind of pagoda-like external method.
It's only been a few years! Everyone has forgotten how Xing Baohua shorted stocks back then.
At that time, the Hang Seng Index was still rising, and everyone was pessimistic about Xing Baohua shorting the Hang Seng Index.
Although it didn't come to the point of selling at a loss, people didn't care how much the price went up or down. In the end, everyone lost money in that Hang Seng Index crash. There seemed to be very few real winners, with Xing Baohua being the only one who profited the most.
People also say that Xing Baohua made money off stock market investors.
Will Xing Baohua manipulate the pound sterling like he did with the Hang Seng Index?
This counterattack has indeed reminded many Hong Kong residents of the international speculative capital attacks on Hong Kong stocks. The memories are shared, and the discussions are mutual.
So, after gathering information from various sources, it turned out that on a Friday afternoon in the United States, Federal Reserve Chairman Greenspan gave a speech as usual, but instead of the usual 0.25% rate hike, he announced a rate cut.
Interest rate hikes and cuts are both normal. However, in order to stimulate consumption, the US dollar will likely continue to lower interest rates.
How long is "lasting"? Who would keep money in the bank if the interest rate dropped? But how many people would dare to keep large amounts of cash at home?
It's simply about getting Americans to boost consumption. Will this interest rate cut process take one or two years?
It's okay for a short time, but no one can stand it for long. You have to save money eventually, and even if you have a safe at home, you don't dare to keep too much cash.
If you want to ensure the safety of your funds, investing is the better option. While we encourage joint investment in real businesses, there aren't that many real businesses to invest in; most people end up entrusting their investments to funds.
However, Greenspan's remarks require analysis. One benefit of stimulating the consumer market is that it leads to increased imports and a larger trade deficit.
Don't forget that the US dollar is an international settlement currency. Even if the US increases imports and reduces exports to reduce the trade deficit, it will not cause the US dollar to depreciate.
Since the US dollar was decoupled from gold, it has become a free currency, but resources are still settled in US dollars.
This ensures that the US dollar will not fall from its pedestal for the time being.
Conversely, would the US allow the British pound to be so active? Strategic resources, currency clearing. That's the key point.
Those who instantly understood admired Xing Baohua's courage. He was gambling, betting billions against the established aristocratic Eagle Group. If he had been betting against an institution, Xing Baohua wouldn't have had to go through all this trouble.
People in Hong Kong are using brokerage firms to short the Eagle Pound.
Although the amount of money was small, they showed their support for Xing Baohua through their actions. Following television coverage and analysis, the three listed companies under Huahong rebounded, experiencing three consecutive days of gains after the market opened on Monday.
Many people also went to open bank accounts to short the Eagle Pound.
Learn from Xing Baohua: always seek opportunities when things are at a high level.
When the pound breaks through a new high, place a short order to buy at that high level.
Of course, a breakout to a new high will inevitably lead to a pullback. Experienced traders know that as long as the money in their portfolio can hold until the pullback reaches the support level, it's fine.
At worst, I can learn from Xing Baohua and cut my losses to buy more shares.
I don't know which media outlet compiled Xing Baohua's practices and called them the Xing Baohua Financial System, which states that you must short at the peak to make money, whether it's the stock market, futures, or forex.
They romanticized Xing Baohua's short-selling methods to an extreme degree, completely omitting the fact that Xing Baohua has already lost nearly four billion US dollars.
Several more weeks passed, and those who followed Xing Baohua in shorting the market watched their accounts suffer losses and silently shed tears. The only thing that kept them going was that Xing Baohua hadn't canceled the orders yet.
Xing Baohua can hold on even with assets exceeding 10 billion, but those of us with tens or hundreds of thousands can't. At worst, we can sell our properties to replenish our reserves. If Xing Baohua's strategy is correct, then we can buy a bigger property.
Xing Baohua's influence is phenomenal.
Those who support Xing Baohua are simply mixing up a concept, but in the eyes of true financial experts, the US still hopes for a devaluation of the dollar.
Interest rate cuts to stimulate consumption mean that the US dollar will circulate more widely, and more money will easily depreciate.
Strategic devaluation requires time and certain events to unfold. Greenspan's speech was merely an attempt to attract investment; it won't lead to immediate devaluation. This devaluation needs a lot of groundwork laid beforehand.
For example, trade deficits, import and export trade, and the price of oil purchases.
These are all preliminary steps, and the process will take a while. Those who understand will understand, while those who don't will find it contradictory!
It's indeed a contradiction. If the US wants to devalue the dollar, they could simply print more money; why go through all this trouble? Besides, wouldn't buying devalued currencies from other countries simply lead to appreciation?
So let the pound continue to rise. Why suppress it and prevent it from rising?
This is just one of many contradictions. If the Eagle Pound is allowed to appreciate unchecked, what will happen to cross-currency exchanges with the Eagle Pound? Countries that cannot sustain this will see their economic systems collapse.
This is also a grand strategy, curbing the rate of increase and allowing many countries with cross-currency transactions to adapt. At the very least, foreign trade orders need to be adjusted to a cyclical settlement system.
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