Rebirth without Regrets

Chapter 534 The storm is about to rise (2)

Although the chief is not an economist, he has a keenness and far-sighted vision for many things that no one else can match. He can quickly see clues from some subtle details and associate them with the development and construction of the country.

People have to marvel, extraordinary people must have something extraordinary.

Soon, the chief looked at Leng Binghan with interest and asked: "Xiaohan, some experts believe that the financial crisis in Thailand will spread to Southeast Asia and even the entire Asia. What do you think about this?"

At this time, the chief seemed not to be talking to Leng Binghan, who was not yet twenty years old, but rather to ask experts from the Economic Research Office of the State Council for advice.

It’s no wonder that due to historical and practical reasons, people in the domestic financial sector have a far less thorough understanding of the international financial situation than experts from Western countries, especially because they have been in isolation for many years and lack practical operational experience. This will not be possible in the short term.

It’s hard to make up for it. Since Leng Binghan was able to create such a situation as Feiyuan when he was still young, Feiyuan started his career in financial investment, with outstanding achievements and attracting worldwide attention. He must have extremely high talent and ability in this area.

, are all astonishing to others and beyond their reach. The chief has never treated Leng Binghan as an ordinary person, and it is only natural that he should consult him on this matter.

"Currency wars are never more merciful than sword wars. The only difference is that people kill with blood and kill without blood. The results are exactly the same." Leng Binghan smiled indifferently and said: "I think, regardless of the Asian situation in recent years,

The economy is developing rapidly, but countries such as Singapore, Malaysia, Thailand, Japan, and South Korea are all countries with export-oriented economies. They are highly dependent on the world market. The fluctuation of the Asian economy will inevitably affect the whole body. Therefore, when the Thai baht fluctuates,

Under the influence, the crisis will soon spread to all countries and regions in Southeast Asia that implement currency convertibility."

Leng Binghan was not alarmist. In the memory of his previous life, Thailand, which had been suffering so much, finally announced on July 2, 1997 that it would abandon the fixed exchange rate system and implement a floating exchange rate system, triggering a financial turmoil throughout Southeast Asia. On that day, the Thai baht

The exchange rate against the US dollar fell by 17%, and the foreign exchange and other financial markets were in chaos. Under the influence of the fluctuation of the Thai baht, the Philippine peso, Indonesian rupiah, and Malaysian ringgit successively became the targets of international speculators. In August, Malaysia gave up on defending the ringgit.

The Singapore dollar, which has always been strong, has also been affected by the special efforts. Although Indonesia was the last country to be affected by the "contagion", it was the most severely affected.

In late October, international speculators moved to Hong Kong, the international financial center, and targeted Hong Kong's linked exchange rate system. The Taiwan authorities suddenly abandoned the exchange rate of the New Taiwan dollar, which depreciated by 3.46% in one day, increasing the pressure on the Hong Kong dollar and the Hong Kong stock market. On October 23,

Hong Kong's Hang Seng Index fell sharply by 1,211.47 points; on the 28th, it fell by 1,621.80 points and fell below the 9,000 point mark. Faced with the fierce attack of international financial speculators, the Hong Kong SAR government reiterated that it would not change the current exchange rate system, and the Hang Seng Index rose again.

The 10,000-point mark. Then, in mid-November, a financial crisis broke out in South Korea in East Asia. On the 17th, the exchange rate of the Korean won against the U.S. dollar fell to a record high of 1008:1.21. The Korean government had to seek assistance from the International Monetary Fund to temporarily control

However, on December 13, the exchange rate of the Korean won against the U.S. dollar dropped to 1737.60:1. The Korean won crisis also affected the Japanese financial industry, which had a large investment in South Korea. In the second half of 1997, a series of Japanese banks and securities companies successively

Bankruptcy.

As a result, the Southeast Asian financial turmoil evolved into the Asian financial crisis. The collapse of the monetary systems and stock markets of Southeast Asian countries, as well as the resulting massive inflow of foreign capital and huge pressure on domestic inflation, cast a shadow over the economic development of this region.

Thailand triggered a run on 56 banks, the Thai baht devalued by 60%, and the stock market plummeted by 70%. The financial turmoil caused by Thailand has spread to northern Asia and even Russia, Malaysia, Indonesia, Taiwan, Japan, Hong Kong, and South Korea.

Suffering heavy losses, the assets of people in these countries and regions have shrunk greatly, and the wealth created by Asian people over the years has depreciated. European and American countries have taken advantage of the depreciation of Asian currencies and the collapse of stock markets to merge with Asian companies, purchase real estate, and use their 1%

Hundreds of percent of the property was easily obtained at a price.

The Southeast Asian financial crisis plunged the social order of Asian countries into chaos. Due to bank failures and the collapse of the financial industry, the economy was paralyzed. The economic recession intensified domestic conflicts. During the Southeast Asian financial crisis, Indonesia, Malaysia and other countries experienced social turmoil, people's hearts lost, and order

Chaos. The Southeast Asian financial crisis made the national power no longer stable. After the outbreak of the Asian financial crisis, due to social unrest and economic depression, people's trust in the government declined. The opposition parties accused the ruling party, and the Thai government was overthrown.

, Indonesia’s Suharto government was overthrown, Japan’s Ryutaro Hashimoto stepped down, and Russia had six prime ministers within a year. Political instability destroyed the good environment for Asian economic growth. Previously, Asian countries had experienced rapid economic growth.

The reason lies in the stable political and economic environment. Later, the financial crisis destroyed this stability, causing social fluctuations and almost endangering the national security of various countries.

The Asian financial crisis this time is another major event that has a profound impact on the world economy after the great crisis of the 1930s. This financial crisis reflects the serious flaws in the financial systems of the world and various countries, including many that are believed to be

It is a relatively mature financial system and economic operation mode selected through historical development. Many problems have been exposed in this financial crisis, bringing the bustling Southeast Asia into an era of desolation and desolation, triggering the global capital crisis.

The market turmoil has shocked the whole world with its wide spread, rapid speed and depth of damage.

"You are right, but..." The chief's thick eyebrows frowned slightly, and his face was a little solemn as he said: "But if it is according to what you said, it has just begun, the storm will become bigger and bigger, and the scope of the danger will become wider and wider.

, sooner or later it will also affect us."

Leng Binghan smiled and said: "At present, our country has not yet joined the WTO, and its economy has not truly integrated with the world economy. It has implemented relatively prudent financial policies and a series of measures to prevent financial risks taken in the past few years, which is detrimental to external development.

, but the self-protection ability is very strong. Therefore, this financial crisis will not have a great impact on us. At most, the export industry will be affected to some extent and export volume will decrease. Fortunately, Southeast Asian countries are not our export-earning foreign exchange

major markets, so the impact will be limited…”

"What about Hong Kong?" the chief asked with some concern.

Leng Binghan smiled, knowing that this was the key point that the leader wanted to tell him.

Presumably what I just said has long been included in the analysis of those financial experts. And Hong Kong's return is imminent. If the country has just exercised sovereignty and is hit by the financial turmoil, it will be very fragile for the people's hearts.

, is undoubtedly a disaster.

"Grandpa, please rest assured that no matter how large the scope, intensity or duration of this storm is, the impact on Hong Kong will not be too great."

"You mean that international funds and hot money will not take action against Hong Kong?" the chief asked, staring at Leng Binghan, his words seeming a little unbelievable. Since these funds dare to target Thailand and Southeast Asian countries, there is no

Is the reason to just let Hong Kong go? What's more, even if those international speculators don't move, it's hard for the chief minister to believe that Western countries will not take advantage of the situation and push it behind the scenes to damage China's international image.

"Of course not." Leng Binghan replied: "These arbitrage funds are all profit-seeking people. In their eyes, Hong Kong is also a piece of fat, and of course they will not fail to take a bite."

"The motherland, the mainland, is the strong backing of Hong Kong. Aren't they afraid of our Chinese government's determination to rescue the market?" The chief executive said loudly, with a glint in his eyes: "After all, the market trend is far less likely to be affected by technology than by fundamentals.

The influence of strength. Hong Kong’s own foreign exchange reserves are huge, and coupled with our country’s foreign exchange reserves, international funds and hot money, we may not necessarily have an advantage.”

Hong Kong has just returned to the motherland. Maintaining the stability of the financial market is not only out of economic necessity, but also out of political necessity. It is inevitable for international funds to take action against Hong Kong and the central government to respond strongly.

However, the chief's demeanor was not relaxed.

Although the central government and the Hong Kong SAR government have joined forces and are powerful, no one can make an accurate estimate until the last step to how huge the international hot money will be.

"How much is the country's foreign exchange reserve? At best, it's only more than 100 billion U.S. dollars, right?" Leng Binghan smiled and said, "Grandpa, do you know how much hot money there is in the world?"

The leader raised his brows, and although he said nothing, he motioned for Leng Binghan to continue.

"7 trillion!" Leng Binghan's voice suddenly became excited and said in a hurried tone: "There are currently about 7 trillion U.S. dollars of flowing international capital worldwide. Once international speculators find out which country or region is profitable,

It can be expected that they will immediately impact the currency of the country or region through speculation in order to obtain huge profits in the short term. These arbitrage funds have a very accurate grasp of the market trend. When the war breaks out, the funds that follow the trend will be like a tide. If some people with ulterior motives

If the country continues to use this to add fuel to the flames, no one can predict the development of the situation..."

"7 trillion!" The chief's eyes twitched slightly when he heard this. The wrinkles at the corners of his eyes became deeper, as deep as a knife, and his expression became serious.