My Fintech Empire

At this moment, Fang Hong looked at the current market situation of the SGX. He stared at the latest K-line trend of the SGX 50 Index and ordered: "After this round of turmoil in the foreign exchange market is over, the adjustment of the SGX 50 Index will also end and continue to rise. The overall adjustment range will be controlled at about 10 percentage points. If the market funds react slowly, let the stabilization fund raise a hand to guide funds to continue to do more."

Tian Jiayi nodded slightly: "Well, okay."

In the last ten trading days of the year, although the A-share market did not stop falling and was still declining, there was no panic plunge, let alone the tragic sell-off like the big circuit breaker market at the beginning of the year.

This is actually a very important change. Many people know it now, especially some well-informed people who are very clear that at this moment, Qunxing Capital has once again launched a new round of competition with its counterparts in the offshore RMB exchange rate market. This is almost the same as at the beginning of the year, but when similar things happened at the beginning of the year, the capital market was in a panic.

However, the panic at the beginning of the year has not been reproduced. A big reason is that Qunxing Capital defeated international shorts in the foreign exchange market at the beginning of the year. Everyone knows that Qunxing Capital is now a big brother. With this giant in charge, we must not easily follow the trend of overseas short-selling capital, nor can we easily be bearish on the market.

After all, many people followed the trend to short the RMB at the beginning of the year, but they were ruthlessly strangled by Qunxing Capital. I don’t know how many funds were blown up and lost, and there were many incidents of going to the rooftop.

On the contrary, some funds that followed Qunxing Capital at that time made a lot of money. Now many funds are more inclined to Qunxing Capital, but they still adhere to the principle of "helping whoever can win".

However, Fang Hong doesn’t care about these fence-sitting funds. They are now more inclined to Qunxing Capital. To some extent, it also shows that the current trend has been on his side from the beginning, which is also different from the beginning of the year.

Fang Hong actually doesn’t need those fence-sitting funds to help him pull the tiger skin and pull the big flag. Instead, he hopes that these people can follow the trend to the opposite side, because only in this way can they be harvested.

However, this group of people is very cunning, and they will not release the eagle until they see the rabbit, so Fang Hong can only hold his nose and forget it.

But it doesn't matter. The limited gains in this battlefield are also within his expectations. The highlight of 2017 is the encrypted digital currency market. Fang Hong has already started to plan to drive the mainland funds that have fled overseas in large quantities to the encrypted digital currency channel.

If they don't jump into this pit, they will jump into the encrypted digital currency pit. A step back, even if they successfully avoid the encrypted digital currency pit, there is a bigger epic pit waiting for them behind, which is bigger and deeper than the other pit.

Even if Sun Wukong has 72 changes, he can't escape the palm of Tathagata.

…

Time came to Wednesday, December 28, and the offshore RMB exchange rate closed at around 6.97.

But just before 23:00 today, the well-known financial data terminal Bloomberg once again made a mistake of the RMB "breaking 7". A message that "the onshore RMB exchange rate against the US dollar fell below 7" caused shock and panic on the Internet.

According to the news, the onshore RMB against the US dollar broke through the psychological barrier of 7 median, reaching a minimum of 7.0121 yuan, a new low since April 2008.

Less than half an hour after the news came out, the official Weibo of the central bank urgently clarified: the first RMB against the US dollar transaction rate in the domestic interbank foreign exchange was running smoothly in the range of 6.9500 to 6.9666 yuan. However, some irresponsible media reported that "the onshore RMB against the US dollar broke through the psychological barrier of 7 integers". We condemn this behavior and reserve the right to further pursue responsibility.

The news that the RMB exchange rate against the US dollar broke through 7 was soon confirmed to be a "oolong" incident. Some researchers issued a research report overnight saying that the onshore transaction price did not break 7. What Bloomberg said about breaking 7 was just a quotation, and there was no transaction, not a break of 7 in the actual sense.

However, anyone with a discerning eye knows how pale this argument is, and it is even insulting people's IQ. If according to this logic, then if someone quotes 8 or 10, does it mean that it has broken 10?

Generally speaking, "breaking" is the actual transaction price. Isn't it bullshit to say that it is a quotation here?

Two blunders occurred in a month. Anyone with some basic logical thinking ability should understand that someone is deliberately creating panic, and their motives are obvious.

Two days later, on December 30, the offshore RMB exchange rate further depreciated to around 6.987, and it seemed that breaking 7 was just around the corner.

At the same time, foreign exchange reserves continued to drain, and it was almost only one step away from breaking the 3 trillion US dollar mark.

The panic in the market has also risen. Many people are worried that the RMB will quickly fall below the psychological barrier of 7 yuan, which may form a vicious cycle of rapid depreciation of the exchange rate → strengthening of depreciation expectations → accelerated capital outflow → continued depreciation of the exchange rate, resulting in panic depreciation at the beginning of the year.

At this time, the end of 2016 was ushered in, and the new year of 2017 officially began. Many people in the investment circle began to stare at Fang Hong's Weibo, because according to past practice, he should post a long Weibo article on the first day of the new year.

However, this time was beyond people's expectations. God K did not post on New Year's Day, and there was no movement on his personal Weibo account.

This has also triggered a lot of speculation among people, and various analyses have appeared on the Internet.

In fact, most of the online analysts who analyzed fiercely were over-interpreting their own ideas. The real reason was that Fang Hong forgot about it. He had too many things to do recently and had no time to post on Weibo. It was that simple. He simply forgot about it. That's all.

But because he is an extraordinary giant, people outside don't think so. They are more willing to believe that there is some other hidden secret. The analysts are trying to link it to some current events. No one analyzed that God K might have simply forgotten it.

…

On January 4, the New Year's Day holiday had just passed. The foreign exchange trading team under Qunxing Capital received the latest order from the big boss and officially started to strike hard today.

People from all walks of life outside and various funds in the market saw a familiar scene in today's offshore RMB market.

The overnight RMB lending rate soared sharply by +18%. Many traders saw this situation and almost unanimously recalled some scenes in early 2016. They couldn't help but exclaimed, "This trick again?"

Seeing this scene, all the players unanimously concluded that it must be Qunxing Capital that was exerting its strength at this moment. This move should not be too familiar.

Just when the overnight lending rate fluctuated abnormally and soared sharply, the RMB exchange rate almost stopped falling and rebounded simultaneously, quickly appreciating by 100 basis points.

As time went on, the overnight lending profit of RMB continued to soar, and soon broke through +50%, and the shorts in the market seemed to have triggered PTSD directly, and surrendered without any resistance. Even the members of Qunxing Capital's trading team were surprised. They were still preparing to have a mid-lane confrontation with the short army today...

Unexpectedly, the opponent seemed strong, but it was weak inside, and it was like paper that broke at a touch. The fierce battle between longs and shorts that I imagined today did not happen.

The reflection on the market is that the offshore RMB exchange rate directly pulled closer to more than a thousand basis points today, and it showed a unilateral appreciation trend all day long, and did not encounter any strong sniping from the shorts during the period.

…