The sharp drop in the Thai baht triggered a chain reaction, with the Thai stock market quickly turning downwards and other Asian stock markets also declining.
A-shares led the charge, plummeting!
The whole of Asia was thrown into turmoil, and the Thai leadership hurriedly mobilized all available funds for a defensive battle.
In the final hour of trading, the Thai baht was dumped as if it were free, with trading volume instantly exceeding 100 million baht and the baht-to-dollar exchange rate breaking through the 40 baht mark.
The Thai finance minister angrily rebuked over the phone: "Don't tell me that! We must hold the 35 baht mark. Have the foreign affairs department contact the relevant countries. This kind of shorting of a country is provoking war!"
At this moment, money is like bullets. Those astronomical figures in the eyes of ordinary people may not last a minute in this currency war. The K-line chart in the trading market is nerve-wracking. Every time it breaks through upwards, a large amount of Thai baht will be dumped and then suppressed.
The Thai foreign exchange bureau staff stared at the time on the big screen, every second agonizing. They had never felt time move so slowly, as large amounts of Thai baht were being dumped every second. If they didn't buy it back, the value of the baht would collapse instantly.
As the market closed, the State Administration of Foreign Exchange spent 475 million yuan to finally get through the three hours. Immediately after the market closed, a financial conference was held to communicate with foreign departments, requiring some countries to control international short selling and to firmly anchor the exchange rate. The goal is to gather funds to bring the Thai baht back to 25 baht when the market opens tomorrow.
No matter how much money is spent, it must be pegged to the US dollar. The Thai leadership knows that once they lose the dollar as their anchor, everything will be gone, including finance and unemployment.
The full moon symbolizes reunion, and a bright moon hangs over the sea, looking so pure and white. Duo Duo's many boyfriends have all broken up with her, which makes Lu Feng realize that his child is grown up and he can no longer treat her with the same mindset he used to have when she was a child.
A gala was playing on TV, and the family of four chatted idly, mostly about things back home. They made a few phone calls, and it turned out that things had changed back home. Jiang Xiaoyan's second brother had gotten into a fight this year and spent a few days in the hospital. Her eldest brother had a mistress, and the couple had fought, scratching each other's faces.
Everyone has money now, and they're all restless. Lu Feng didn't say much about Jiang Xiaoyan's family affairs. After hanging up the phone, Jiang Xiaoyan just whispered, "Men are all the same."
“I’m going on a business trip to Tianjin the day after tomorrow to check on the factory. The headquarters building is moving in, and I have to be there.” Lu Feng glanced at Jiang Xiaoyan and said, “You should spend more time with the children.”
"I put in more than you!"
The two didn't say anything more and started talking about the party.
At 10 p.m., Lu Feng received a call from the group's finance manager, who told him about the collapse of the Thai baht, saying that even the lowest stock market would be affected.
"I understand, it won't affect us much," Lu Feng said before hanging up the phone.
Sitting back on the sofa, Lu Feng was somewhat uneasy. He hadn't expected Soros to be so impatient. Following the original trajectory, he started shorting the Thai baht in 1996 and only officially took action in 1997, shorting the baht twice. The first time, Thailand held firm, but the second time, the baht collapsed.
Now that we're taking action, we'll definitely see results within a few months.
Lu Feng knew very well that after Thailand, it would be Hong Kong's turn. They probably couldn't wait until 1998; the real showdown would begin after July next year.
Nothing was said that night, and the next morning, Lu Feng continued working. He began to deal with the internal personnel. He no longer cared about the company's development; instead, he wanted to take as much as he could with him.
Financial newspapers also reported on the short selling of the Thai baht, warning of a financial crisis. The baht recovered its pegged exchange rate of 25 baht the very next day, costing the country more than a billion US dollars in foreign exchange reserves.
Three days later, Lu Feng set off for Tianjin to inspect the chip factory. Before leaving, Lu Feng arranged for senior executives such as Wei Yandan, Zhu Lidong, and Du Guoying to take up positions in Hong Kong as vice presidents of Hurricane Capital.
At the same time, a related equity exchange agreement was signed with United Capital, under which Hurricane Capital exchanged 20% of its equity for 4.5% of United Capital's equity. In addition, the agreement stipulated that United Capital would need to introduce no less than HK$5 billion in funds to Hurricane Capital within five years.
For every HK$1 billion introduced, 4% of the equity is unlocked, which imposes considerable restrictions on Lu Feng's equity holdings.
The agreement also included a IPO performance-based clause, stipulating that Hurricane Capital must achieve positive profits within five years and distribute dividends to board members, while United Capital would assist Hurricane Capital in its IPO.
If Hurricane Capital achieves positive profitability within five years, and fails to assist in the IPO, it will repurchase 20% of the equity. If both parties achieve this, it will be a win-win situation.
This version is the result of multiple discussions by the United Capital board of directors, who believe that Hurricane Capital's assets are consumable assets and are unlikely to be profitable within five years.
As long as Hurricane can't make a profit, they can acquire it at an insider price. As for financing five billion, it's not a big problem for them.
The agreement stipulates a 20% stake, and with the additional 20% after financing, even if Hurricane becomes profitable and goes public, acquiring another 11% stake after the IPO would completely swallow Jiafeng.
Lu Feng was aware of the risks involved in the agreement, but it would be very difficult for the R&D company to survive after being spun off. R&D companies must rely on highly profitable industries; no R&D company can operate independently.
This thing is a money-devouring beast. Even if Lu Feng is unwilling to face the internal power struggle again, he has no choice but to do it.
陆峰去了天津，当地市政高规格接待，聊了很多关于产业园的问题，后续配套企业，国家补贴，地方补贴，人才配套等。
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