My Fintech Empire

On the next day, Thursday, January 5, the offshore RMB overnight lending rate in Hong Kong continued to surge, with the cumulative increase soaring to a height of 81% in two days. At the same time, the RMB appreciated again sharply by 870 basis points today, returning to below 6.8 to below 6.8. 6.7830 water level.

In just two days, with lightning speed, the RMB appreciated by nearly 2,000 basis points, directly returning to the level two months ago. The violent appreciation of these two consecutive daily K-lines was almost a terrifying increase that beat all short sellers. .

Players from all walks of life in the foreign exchange market were greatly shocked. They thought that the foreign exchange market was about to stage a more intense long-short confrontation than at the beginning of the year. After all, there were two big own goals of "breaking 7" last month. The move was so intense that it gave people a feeling that a storm was about to come.

As a result, I never expected that the short position would be unilaterally hammered.

There are many reasons for this unexpected result.

Fang Hong's advantage is self-evident. He cooperated with relevant national departments to shut down the government and raise the overnight lending rate. At the same time, he continued to draw out the remaining water in the pool. No one in the outside world would have thought that he would go crazy buying in the offshore RMB market. The plan to reserve 10 trillion currency reserves would be frightening to death if this amount was revealed.

The reason why the international short forces came up and surrendered by playing GG was that, in addition to being unable to defeat Fang Hong’s move, they themselves were also disrupted by the “black swan incident” in the second half of the year. It was also very critical that they did not expect The newcomer from North America, Hua Shiren, turned out to be a dark horse. They never thought this would happen in the first half of the year. This variable was a "black swan" in their eyes, and it was caught off guard and unexpected.

This unexpected news story also made the international short sellers have a premonition that something is not going well in their own homes, and there may be a fight among themselves. They don't know what will happen next, in case something unexpected happens again. It would be great fun if there were unexpected accidents, such as if your home was robbed.

Therefore, at this moment, the international short-selling forces are no longer interested in fighting. They no longer have the momentum they had at the beginning of the year. In addition, their opponents are not so easy to control. They have been frustrated by them many times and have no determination to win. Now they are still worried. Something happened in the backyard.

The opponent in front is powerful. If there is another "black swan" in the backyard, Fang Hong will take advantage of the situation and be unable to advance or retreat. If such a bad situation happens, everyone will be numb.

Due to the weighing of the pros and cons in all aspects, the international short sellers had no choice but to give up even if they were unwilling to do so. This is why the foreign exchange market trading team of Qunxing Capital has not yet exerted its strength and made a starting move. The big move has not yet been opened to the opponent. He was defeated like a mountain.

However, in the next three days, the short army came and launched a quite powerful counterattack. It seemed that they were ready to run away after being defeated in a fight, but they still had to say a few harsh words to save face. Three K-lines were connected quickly. The devaluation caused the offshore RMB exchange rate to depreciate by about a thousand basis points again, reaching around 6.90 again.

…

At about 16:00 on January 10th.

Tian Jiayi, who was in the company, called Fang Hong, who was at home: "The army of short sellers in the foreign exchange market has been working hard for three days in a row. Should we fight back forcefully? Or should we follow the original plan?"

At this moment, Fang Hong, who was staring at the trend of the offshore RMB exchange rate and the US dollar index, replied directly: "No, increasing efforts means increasing capital costs. Just hold the 6.9 water level as planned. This way the capital costs are relatively lowest. "

Tian Jiayi on the other end of the phone couldn't help but said: "Would it be better to be more cautious?"

Fang Hong replied calmly with a confident smile: "It's already very stable. If you are more stable, you will scare yourself. Good news has come from the other side of the ocean. The U.S. dollar index has continued to decline since January 3. The pressure from the U.S. dollar has If it falls significantly, the US dollar will inevitably continue to decline, and the RMB will naturally strengthen. Therefore, we do not need to waste additional capital costs, and our money is not blown by strong winds.”

Tian Jiayi: "Okay, I know how to arrange it."

…

Sure enough, in the following days, the offshore RMB exchange rate continued to appreciate again. International short sellers knew that the trend was over, no longer struggled to counterattack, and had to close their short RMB positions.

On Wednesday, January 11, at around 11 a.m., Fang Hong suddenly updated a blog post on his personal social media Weibo account.

Outsiders felt it was unexpected, but the more critical point is that this Weibo not only caused a sensation in the capital market, but also focused the attention of countless domestic people on the word "financial war."

The latest blog post published by Fang Hong:

[From 2015 to 2017 now, a war to defend the RMB that lasted for two years has finally come to an end. From the international short-selling army aggressively pressing the situation, to the desperate counterattack, and then to International short sellers made a comeback and eventually returned with a loss.

The crackdown on illegal capital flight at the national level, the appropriate adjustment of the exchange rate system, and the resolute counterattack against international short sellers have finally completely defeated the demon of depreciation that lasted for two years. The RMB has finally emerged from the painful winter, and the new year will surely usher in warmth. Spring time.

As for the hedge funds that were aggressively shorting the RMB, they all failed miserably.

Looking back at the disputes in the foreign exchange market over the past two years, facing the crazy international shorts and various doubts from both inside and outside, the most dangerous part is not the suppression of the RMB by international capital, but the panic of the people inside, the massive capital flight, and many speculators trying to make profits by shorting the RMB.

Compared with the glaring external enemies, the most terrifying thing is the people hiding inside and making trouble.

We need two guns, one pointing at the enemy and the other pointing at ourselves.

This financial war that has lasted for two years may not be perfect enough, but under the internal and external disturbances, in the face of a large number of brutal international shorts working together to hunt, we can defend the country's economic development achievements over the past decades, which is not easy.

However, while celebrating the victory of this battle to defend the RMB, we must also be soberly aware that it is far from the end.

The pace of RMB internationalization will not stop because of the difficulties and obstacles in front of us, and on the way to the world, I believe that the sniper war of RMB will continue to be staged.

The world is facing a major change that has not been seen in a century, and the external environment may become more complex and changeable.

But no matter how the external environment changes, our most powerful and correct response is always to do our own thing well.

My heart is so vast that it connects the universe, and I hear thunder in silence. 】

…

When Fang Hong posted this Weibo, people from all walks of life were surprised.

Ordinary netizens did not expect that so many thrilling things happened in the financial market in the past two years. Most people did not even feel anything, because these things are too far away and the threshold is too high for most ordinary people, but they are closely related to everyone, and they are deeply affected by them in a tangible or intangible way.

But there is one thing that the general netizens understand, that is, we won this financial war that lasted for two years!

Stockholders were also surprised. They were exposed to the capital market and participated in it. They knew more than those who did not trade stocks, and they also knew some internal and external games in the financial market. But the difference this time was that a giant figure like Fang Hong directly said it in person, and the credibility and authority index were directly maxed out, that is, those big things really happened.

After Fang Hong posted this microblog, some people were shocked and frightened, especially because he said in the article that internal traitors are more terrible than external enemies, and even said that he needs two guns, one pointing at external enemies and the other at himself.

It’s fine if others say so, but Fang Hong’s existence is really scary.

Some people feel that they can’t stay here any longer, and they can’t sleep or eat if they don’t leave.

…