Reborn Tycoon Rise

If the Hong Kong dollar really gets out of control and depreciates on a large scale, almost all companies in Hong Kong will be affected. The larger the scale, the greater the losses. Several companies under Xu Zhi, especially Evergrande and Hutchison Whampoa, will definitely bear the brunt.

Xu Zhidao: "I am naturally willing to contribute to the stability of Xiangjiang, but I will not blindly invest my own funds without knowing the situation clearly."

Youde nodded and said: "That's natural, Xu Sheng. I can tell you that I have discussed with Shen Bi and Downing Street in the UK. The Hong Kong government will change the current free floating exchange rate system to a linked exchange rate system that locks the US dollar. , as long as the linked exchange rate system is established, the current problems will be solved.

However, for the sake of stability, the Hong Kong government needs to prepare sufficient foreign exchange funds to cope with emergencies. "

There have been four exchange rate systems in Hong Kong since the opening of the port. In 1863, the British Hong Kong government issued the first metal currency. After the currency reform in 1935, the Hong Kong government officially issued banknotes, and the Hong Kong dollar was born, which was pegged to the British pound to maintain a stable exchange rate.

By 1972, the U.S. dollar-centered Bretton Woods system collapsed, and global currencies began to develop freely without gold. The British pound also decoupled from the U.S. dollar and began to depreciate significantly. This was not in Hong Kong's interests. So in July of that year, the Hong Kong dollar Decoupled from the British pound and pegged to the U.S. dollar.

However, this time the exchange rate peg between the Hong Kong dollar and the US dollar was only supported for 2 years. It was decoupled again in 1974 and has been floating freely ever since.

The governor of Hong Kong at the time was MacLehose. He had great ambitions and wanted to turn the Hong Kong dollar into an internationally accepted currency, as famous as the currencies of countries such as Denmark and Switzerland.

During MacLehose's administration, although the Hong Kong dollar did not grow according to his plan, it continued smoothly and was recognized by the international market.

To this day, the crisis of confidence has led to the depreciation of the exchange rate.

At this time, the only way is to lift the free float and peg it to a strong currency. If the government prepares enough foreign exchange and restores the economy and people's confidence, the current Hong Kong dollar crisis can be solved.

Xu Zhi asked: "Then I wonder what the joint exchange rate will be set in the future?"

"This has not been decided yet." Yoder said calmly.

"I believe you!" Xu Zhi thought to himself. Obviously the other party refused to tell him, but this is normal. If such core exchange rate changes are known to a businessman, there are too many ways to make huge profits from them. .

Xu Zhi thought about all this and said: "Sir Youde, even if the linked exchange rate is used, if the people continue to run on it, even if the billion US dollars I have are added, the Hong Kong government's foreign exchange reserves may not be enough!"

"Xu Sheng is right. Although this situation is an extreme situation, the probability of it happening will be very low, and we have to guard against it." Youde nodded and said: "Xu Sheng, don't worry, I have received help from Downing Street. When necessary, the UK will use their foreign exchange reserves to stabilize Hong Kong's exchange rate, but this is the last step. Once it goes out, it will have a huge economic impact on Hong Kong, so as a last resort, we cannot count on this move."

"So that's it." Xu Zhi nodded and said, but there was still no movement.

Youde continued: "Xu Sheng, I know that you are very optimistic about the future of Xiangjiang, and you have planned to invest huge sums of money to drive the economy of Xiangjiang. However, due to some reasons, you have not been able to start investing yet. Therefore, when this meeting is over, I will Notify the Lands Department and ask them to immediately approve the investment plan of Xu Shengyi's company to provide more employment opportunities for the people of Xiangjiang as soon as possible."

"Thank you Sir Youde." Xu Zhi smiled with satisfaction.

This is a deal. Xu Zhi helped the Hong Kong government stabilize the exchange rate, and the Hong Kong government approved the application of converting some industrial land from Hutchison Whampoa and Evergrande to commercial land. As for the cost of paying for the land premium, just leave it at that.

Youde nodded and said, "Okay, now that it's settled, I hope Xu Sheng's funds will be in place as soon as possible."

Xu Zhi frowned and asked: "Sir Youde, how will this money be used with the Hong Kong government?"

Youde said: "Xu Sheng, you can borrow this money from the Hong Kong government. After this matter is over, the Hong Kong government will naturally return it in accordance with the rules. Borrow US dollars and pay back US dollars. As for the interest, it will absolutely follow international rules." implement."

"Sir Youde, can you try another method?" Xu Zhi paused and said, "Once the Hong Kong government approves Hutchison Whampoa's project, Hutchison Whampoa will inevitably need a large amount of cash in the short term. If this US dollar is lent to Hong Kong Government, I am worried that it will affect Hutchison Whampoa’s projects.”

Youde asked: "What does Xu Sheng mean?"

Xu Zhidao: "Currently, throughout Hong Kong, there are still a large number of people intending to exchange for U.S. dollars. Various branches of HSBC Bank have been queuing up to exchange for U.S. dollars, which has also been consuming the Hong Kong government's exchange fund. Therefore, I It intends to place Hutchison Whampoa's money in the Bank of East Asia, and the Bank of East Asia will also develop US dollar exchange channels.

This can not only exchange funds for Hutchison Whampoa's subsequent investment, but also reduce the pressure on the Hong Kong Government's Exchange Fund.

Sir Yoder, what do you think? "

"This... is okay." Youde frowned and pondered for a moment, then nodded and said, "But Xu Sheng, you can think clearly about the risks involved."

"I thought about it very clearly." Xu Zhi said with a smile.

At present, due to panic and sales restrictions by various banks, the exchange rate of the Hong Kong dollar against the US dollar has fallen sharply, reaching 9.6:1. Once the exchange rate falls below the psychological barrier of 10:1, the market's confidence in the Hong Kong dollar may collapse. This is similar to dominoes, once started, there is no turning back.

This is also the reason why Sir Edward Youde invited Xu Zhi. He was under too much pressure. His predecessor, MacLehose, was recognized as the first governor of Hong Kong. However, just over a year after he took over, Hong Kong's economy collapsed. Regardless of Whatever the external reasons, this failure will completely end his political career.

At this moment, the Hong Kong government urgently needs external funding, especially a super rich man like Xu Zhi, who can not only come forward to appease the frightened ordinary people, but also mobilize huge amounts of US dollars in foreign exchange to help the Hong Kong government maintain the Hong Kong dollar.

Youde also understood what Xu Zhi meant and said, "Okay, since Xu Sheng is so insistent, I don't have any objections."

As an official with decades of diplomatic experience, he clearly understood that Xu Zhi may not know what the joint exchange rate will be announced soon, but he also speculated that it must be much higher than the current exchange rate, so at this time, he will If you convert US dollars into Hong Kong dollars, you will definitely be able to make a lot of money.

However, Youde readily accepts this. No one in this world will serve you for free. If you want others to help you, the easiest way is to complete the bundling of interests and everyone can make profits together.

Xu Zhi took advantage of the current plummeting exchange rate to exchange Hong Kong dollars. This behavior did no harm to him or the Hong Kong government. On the contrary, it could also suppress the short-selling force and help the Hong Kong government reduce the consumption of foreign exchange in the future. This was killing two birds with one stone. thing.

Xu Zhi said: "Since Sir Youde thinks there is no problem, then starting tomorrow, the Bank of East Asia will expand its U.S. dollar foreign exchange business. However, I am worried that too many crowds will cause chaos, so I hope the police can increase a certain amount of security force."

"No problem." Yoder assured with a smile.