There's really no way out now. The vast majority of funds are tied up in it. If they want to buy it back and pay off the contract, these funds will probably drive the price of the Hong Kong dollar back to seven or eight dollars.
If you buy in at HK$10.05 and sell in at HK$7.80, the difference is definitely more than 10%. Tiger Fund's average leverage is around 10 times, which means that after redeeming the Hong Kong dollars and returning them to the bank, Tiger Fund's net asset value is already negative.
At this moment, Tiger Fund has essentially gone bankrupt. Lu Feng's appearance accelerated Tiger Fund's bankruptcy. In his previous life, Robertson played the role of Soros in this financial war. He was not the main force, but Tiger Fund still suffered significant losses. In 2000, it declared bankruptcy due to the bursting of the dot-com bubble. He himself passed away on August 15, 2022.
Lu Feng's appearance caused the two to switch roles, with Robertson becoming the main player. He missed out on the dot-com bubble era this time.
A brief meeting was held, and everyone agreed that they should try to find an opportunity in the afternoon. All of their funds could come up with 20 billion US dollars. If they still couldn't see any hope after putting in 20 billion, then the two sides were not on the same level in terms of size, and they would have to accept defeat.
If it were just a matter of a few billion Hong Kong dollars, Goldman Sachs could easily spare a few hundred million, and with leverage, that would be enough to drive the Hong Kong dollar down.
Now, the situation has completely changed, and everyone has developed a gambler's mentality, betting that Lu Feng will run out of money.
According to their estimates of the mainland's foreign exchange reserves, more than 90% have already been invested in the stock market or Hong Kong dollars, which means that just one straw is needed to break their backs.
As the afternoon session began, the market remained volatile around nine dollars. After thorough discussion, a group of people decided to try again and dump 10 billion Hong Kong dollars to drive the price down.
As soon as the sell orders came out, Lu Feng immediately withdrew, and not much was traded. Robertson continued to chase the price down to 9.7 yuan, but the trading volume was still not much. Lu Feng was frantically canceling orders all the way.
One was chasing the sell orders, while the other was running to cancel them. Within half an hour, the Hong Kong dollar had fallen below ten dollars again.
"Be careful! Don't place too many orders, or you'll get swallowed up in one bite!" Soros warned.
"I'm not that stupid!" Robertson has already placed a billion Hong Kong dollars up there. Doesn't Lu Feng like to move money from one hand to the other? Then let's wait for him to dump Hong Kong dollars, buy some back at the ten-dollar mark, and have more ammunition at the nine-dollar mark.
Inside the Hong Kong Stock Exchange, Lu Feng frowned as he looked at the trading screen. A trader asked, "Should we create some volume?"
"He's a person, not a monkey. You can't use the same trick on him twice, once in the morning and once in the afternoon. That's going too far." Lu Feng looked at the trading screen and said, "Besides, besides our two parties, can anyone else account for five percent of the daily trading volume in Hong Kong dollars?"
The two sides were locked in a stalemate around ten yuan, and the trading volume per minute shrank to tens of millions. It's as if they had a huge fight in the morning, but now everything is calm again.
After a stalemate of more than ten minutes, Lu Feng's phone rang. He picked it up and answered the call; it was Soros on the other end.
"You think you have a lot of money? Then go ahead and do it!" came the sarcastic reply from the other end of the phone.
"Me? Go ahead and dump it! You guys want to short it, right? Come on, dump a hundred billion Hong Kong dollars, and drop it straight to twenty dollars!" Lu Feng retorted.
"You're out of money, aren't you? Lu Feng, you only have a maximum of 20 billion US dollars right now. Let me tell you, that's not enough at all. The Hong Kong dollar is a highly liquid currency. Even if it recovers in a short time, the subsequent maintenance costs will still be 20 to 30 billion. Otherwise, last year's Thai baht would be equivalent to this year's Hong Kong dollar!" Soros said coldly.
“You don’t need to predict how much money I have here. Hong Kong dollars will never be as much as Thai baht. Since you’ve predicted mine, I’ll predict yours too. You have at most HK$19 billion worth of Hong Kong dollars. If you really have enough money, why are you dragging your feet like this?” Lu Feng said, leaning on the trader’s chair with one hand and resting his feet on his feet. “Rich people don’t dawdle with me. Only poor people haggle!”
"There's no point in saying all this now. I called to tell you that you are absolutely shameless, because a person with a sense of shame would not do so many tricks on the board!" The person on the other end of the phone was quite exasperated.
"Thank you for your affirmation. For you, shamelessness is probably the highest praise. But you guys are a bit inexperienced. If you had even read 'On Guerrilla Warfare,' you wouldn't have been outmaneuvered by me." Lu Feng laughed and said, "It doesn't matter. Even if you had read it, you couldn't do anything to me. This 'you come in, I take you all out; you hit me, I retreat' tactic is something no one can handle!"
"I don't need to fight you to the death. I just need to stall for a few months until that HK$170 billion contract expires, and you'll help me drive up the price of pens!"
The person on the other end of the phone was so angry they were practically rolling their eyes. Lu Feng was right; all he needed to do now was hold onto HK$10.05. If you wanted to redeem your Hong Kong dollars, you had to pay them back before opening a new contract. Your HK$170 billion wouldn't be so easy to escape. If you dared to go long, I would go long too.
There is another option: continue trading at the 10.05 yuan level. However, they cannot win a direct confrontation. They are now facing a dilemma: they cannot leave, and they may not be able to win a fight.
Robertson's five-minute lapse completely ruined this short-selling plan.
Soros didn't want to listen anymore; he was afraid he would lose control and beat Robertson up if he listened any longer, so he hung up the phone.
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