The birth of the Hong Kong Island family

October 19, 1987, Monday.

Wall Street was shrouded in gloom, and the New York Stock Exchange started a new day with the rapid and dull "dang, dong, dong" bell.

At the beginning of the market, an ominous premonition hit everyone in the noisy trading floor: the Dow Jones Industrial Average dropped 67 points at the opening. In the blink of an eye, selling orders surged. Under the pressure of the swarm of selling, all the red prices (falling) appeared on the screen, and no green wave (rising) could be seen. There was panic in the exchanges and the futures market was in chaos.

From 9:30 to 11 o'clock in the morning, the Dow Jones Industrial Average kept falling, and no one knew how to stop the deterioration of the situation. Although some people proposed closing the market, no one dared to make a decision. The New York Stock Exchange was concerned about Wall Street's role as a 'wind vane' in global stock markets, so it had no choice but to hold on.

At 13:09 pm, a piece of terrible news reached the Wall Street stock market. David Rudd, chairman of the United States Securities and Exchange Commission, spoke in Washington and said: "At a critical moment, although we do not know when this critical moment will be, I Discussions will be held with the stock exchange to temporarily close the exchange."

This news caused even more panic, because once the exchange closed, traders would not be able to sell their stocks, and their stocks would be worthless, and thousands of dollars would be reduced to ashes. So, they had to 'dump stocks' quickly. The Dow Jones Industrial Average plummeted like an obsession. By 2 p.m., it had dropped 250 points. More than 400 million shares had changed hands, and the computer was 100 minutes behind the actual trading speed.

In the meantime, SEC officials came out to clarify that they were not discussing closing the exchange. However, it was too late, and the disaster could no longer be prevented.

At the close of the day, the Dow Jones Industrial Average dropped 508.32 points, plummeting from 2246.72 points to 1738.470 points, a drop of 22.6%, setting a record for a one-day decline. Other stock market indexes such as the NYSE Composite Price Index fell 19.2%, the AMEX Composite Index fell 12.7%, and the NASDAQ Composite Index fell 11.35%.

The par value of stocks, equivalent to US$503 billion in France's annual gross national product, was wiped out in one day.

The development of information technology has connected financial transactions around the world. However, the accelerated pace of financial integration has also caused some negative impacts. Due to the development of global financial integration, when a certain stock market plummets, other stock markets will not be spared.

On 'Black Monday', before the opening gong of the Tokyo Stock Exchange was heard, stock prices plummeted. The Nikkei 225 Index fell by 620 points, or 14.9%; Hong Kong's Hang Seng Index fell by 421 points, or 11.3%. %, also setting a record for the highest decline in one day; Singapore's Straits Times Index fell 169 points, a decrease of 12.4%; the British FTSE30 index fell 183.7 points, a decrease of 10.1%, and the FTSE100 index fell 249.6 points, falling to 2053.3 points, and investors suffered losses of up to 50 billion pounds. In addition, stock markets such as Paris, Frankfurt, Stockholm, Milan, and Amsterdam all fell by 6% to 11% to varying degrees, forming a shock wave for stock markets around the world.

Faced with the stock market frenzy sweeping the world, local governments were shocked and quickly adopted a series of measures to rescue the market.

The next day.

At nine o'clock in the morning, Lin Zhichao came to the Cheung Kong headquarters office in the center of Victoria Harbor leisurely.

As soon as he arrived at the office, Lin Ruihuan walked in.

"Dad, news just came from the Stock Exchange. Li Fuzhao ordered the Stock Exchange to suspend trading for four days, which means that it will not open this week and will have to open on Monday the 26th!"

When Lin Zhichao heard this, he said nonchalantly: "Playing the piano! Not opening the market for six days (including two days on the weekend) is simply a suffocation. When the market opens next Monday, everyone must not rush to escape first!"

Lin Ruihuan said: "The Hong Kong government seems to be in favor of it, and some people say it was approved by the Hong Kong Governor."

Lin Zhichao said: "With or without the consent of the Hong Kong government, Li Fuzhao will never be re-elected as the next chairman of the Stock Exchange. It seems that he is due to expire in November. Originally, according to his prestige, re-election was natural, but now it seems that it is There is no hope!"

Lin Ruihuan nodded and said, "It seems that there will be a big drop on Monday."

He firmly believed in his father's prediction.

A little more than a month before the stock market crash, my father asked them to arrange a family office and liquidate 30% of their stocks. If it weren't for the huge size, my father would probably arrange clearance directly.

All kinds of actions show that my father's keen ability is simply much more powerful than the stock god.

"Go and get busy. It won't have much impact on us, and it won't have much impact on Hong Kong's economy. Stocks are going to go up and down."

"OK"

After Lin Ruihuan left, Lin Zhichao sat in the office and started thinking.

In the first half of this year, 200 billion U.S. dollars globally flowed into the Wall Street stock market. As a result, everyone's confidence has been severely damaged, and even Americans have lingering fears.

As a result, the European and American economies will enter a "downturn". It was not until the end of the "Gulf War" that the world saw the power of the "big boss" and restored confidence in the United States; and the United States also relied on the "Gulf War" and "Internet technology" , the economy performed very well in the 1990s.

Analyzing these is very useful for Lin Zhichao’s family business layout.

That is to say, starting next year, Lin Zhichao will make large-scale overseas investments. This is called "buying the bottom".

Hong Kong at this time.

The media have conducted interviews with stock investors one after another, and the interviewees are undoubtedly worried!

Investor A: "It's good to suspend trading to cool down a bit. But I don't know whether it can solve the problem."

Reporter A: “What do you think?”

Investor A: "The root cause is that those who hold second- and third-tier stocks are too crazy to do [margin trading] (financing accounts, leveraged transactions). This is the main reason. Those people will be forced to liquidate their positions (some safety line)!"

Reporter B: “What will you personally do when the market resumes next Monday?”

Investor B: "The first thing is to sell out first to avoid losses! Apart from that, I don't think there is anything else that can be done."

Reporter B: "Even if the price is not ideal, will it be sold out?"

Investor B: "Sell first to avoid losses!"

Citizens generally believe that the suspension of the market is correct. The Japanese stock market next door did not stop. It fell nearly a thousand points soon after opening on the 20th.

Before get off work.

The assistant walked into Lin Zhichao's office: "Boss, there are many reporters below. I hope you can accept an interview!"

Lin Zhichao understood that as the overlord of Hong Kong's business community, how could he not have his voice in the media at this time?

"Well, I'll go down at 4:30."

"Okay, I'll make arrangements right away!"

Security and order must be arranged.

Lin Zhichao shook his head helplessly. The reporters were looking for him. If he would not be interviewed today, he would continue to be blocked under the building tomorrow.

He can't be silent!

After a while, Lin Zhichao came to the square in the center of Victoria Harbor, where about a dozen reporters were waiting anxiously.

As soon as he arrived, a reporter couldn't wait to ask a question: "Mr. Lin, you guessed what happened yesterday a month ago, how amazing it is!"

Lin Zhichao waved his hand and said: "That is not a guess, but an analysis and prediction. Of course, it is not a prediction of 'what happened yesterday', but the stock market has risen too fast and there is a risk of downward adjustment. To be honest, I did not expect it to be a Yankee It’s hurting us!”

Everyone laughed!

Lin's humor.

Reporter: "So, Mr. Lin, what do you think about next Monday?"

Lin Zhichao: "Not too optimistic! There are too many margin accounts, and everyone wants to sell, which will cause congestion and stampede."

Reporter: "Does Lin Sheng have any suggestions for everyone?"

Lin Zhichao: "Generally speaking, this stock market crash was affected by Wall Street in the United States, not any problems with Hong Kong's economy or politics, so I think the market next year will still be very optimistic. For those investors who invest with 'spare money', I advise them Don't cut out positions at low levels, such as cutting out positions below 2800 points. It's not very wise. As long as you buy blue chip stocks, or good real estate stocks, financial stocks, etc., you will definitely be able to recover your losses next year. If the selling price on Monday is too low, then There was an immediate loss.”

Reporter: "Did you suffer any losses this time? You should have cleared your positions in advance, right?"

Lin Zhichao: "The futures contracts have been liquidated, but the stocks have almost not been liquidated (actually 35% of the positions have been liquidated). However, the book losses on stocks do not count, and I don't care about it. My personal investment in stocks is all value investment, and I don't care about the current situation." share price."

Later, Lin Zhichao left the scene under the leadership of his bodyguards.

No need to think about it, Lin Zhichao will be in the headlines again tomorrow!

In the evening, Lin Zhichao came to the Kowloon Tong Villa and went on a date with Li Jiaxin.

His dates with Li Jiaxin are limited to private places such as villas, superyachts, high-end clubs, and hotels; however, he will also take her overseas once a year, and there is no need to consider reporters overseas.

Entering the villa, Li Jiaming took the initiative to squat down and change Lin Zhichao's slippers, while Lin Zhichao hugged Li Jiaxin and kissed her.

Both sisters served him, but it was obvious that Li Jiaming was just a supplement, equivalent to the bed-warming maid in the past. But Li Jiaming was happy with it. After all, how could a woman who had seen an eagle like a rooster on the ground.

"Chao Chao, you are simply a stock god. Let's cut our short positions in futures contracts. Otherwise, we may have to lose a lot of money after working hard for a year." Li Jiaxin said happily.

If you have money, everything is easy!

Without money, she would not give up even if he was a man as elegant, knowledgeable and brave as Lin Zhichao.

"Can I make you lose money? Isn't it embarrassing?"

Afterwards, everyone sat down to eat together.

Wu Guofang also accepted her fate. After all, so did her daughter, and so did her two daughters. If she dared not agree, the consequences would be terrible.

"Next week, I will inject another 50 million into the company. As long as the Hang Seng Index falls below 2,400 points, you can buy stocks, including blue-chip stocks such as HSBC, Hutchison Whampoa, Hong Kong Electric, and CLP. In addition, it turns out that You can buy all the funds you have.”

He made money, so he just wanted to reward Li Jiaxin. After all, others performed well - there was no trouble!

When Li Jiaxin heard about 50 million Hong Kong dollars, she immediately took Lin Zhichao's arm and said coquettishly: "Brother Chao, you are so good to me, are you not afraid that I won't drink it?"

Lin Zhichao looked at him sideways and said, "That doesn't matter! Everyone has the right to choose. What's wrong with getting together and relaxing? If that's the case, I can save billions!"

The pupils of Wu Guofang, Li Jiaming and Li Jiaxin dilated directly, looking at Lin Zhichao in disbelief.

Li Jiaxin held Lin Zhichao's arm tightly, with a natural scale between C and D levels, and severely ravaged Lin Zhichao's shoulder muscles.

"Brother Chao, what does billions mean?"

"Of course it's just a small thing. When you give birth to a child for me, I will naturally be more generous. I can't let you mother and son live too poor in the future!"

Li Jiaxin said happily: "It's annoying, I'm just talented."

Lin Zhichao said: "Sooner or later!"

Li Jiaming, who was opposite him, suddenly became confused, wondering if she could have a child!

But she quickly dismissed this idea. She was now the one who was attached to her sister. In the words of her mother Wu Guofang, she was just a supplement. She must not compete with her sister for favor, otherwise she would not be qualified to gain a foothold.

That night, one dragon and two phoenixes were very comfortable.

Li Jiaxin doesn't need to work too hard. Li Jiaming can also enjoy the beauty-resident Holy Spirit. A little improvement in his face and figure will also be useful.

It’s been a rough few days.

On Monday, October 26, the Hong Kong stock market opened at 11 o'clock, but no miracle occurred. Selling orders came one after another like an overwhelming force. 15 minutes later, the Hang Seng Index had fallen by more than 650 points.

It is obvious that the Hong Kong stock market will become the world's largest stock market decline.

The main reason: Hong Kong people like gambling too much, and there are too many margin accounts, which are all highly leveraged investments. In this case, they will either rush to escape, or they will be sold off directly by banks/securities companies.

If the main stock holders are investors with spare money, they may not be in a hurry to flee, or even look at their stock accounts.

After falling by 650 points, the Hang Seng Index has fallen by 1,200 points and is already below 2,800 points. At this time, many rational investors began to pay attention to Lin Zhichao's words and chose not to reduce their positions. The stock market also played a certain stabilizing role.

"The stocks I bought are HSBC Bank and Cheung Kong Holdings. I will not reduce my positions. I will treat them as pension money."

"Aren't you worried about losing money on your pension?"

"How could there be no loss? The assets of HSBC and Cheung Kong Group are there, and the annual profits are there. How could there be no loss? I believe what Lin Sheng said, there is no need to be nervous, it will definitely rise again next year."

"Lin Sheng said next year, so will it fall again this year?"

"With panic like this, it takes time to build confidence, and it also takes time to build a solid bottom before it can rise."

Lin Zhichao's words and deeds have influenced many people. Of course, the changes are all subtle and will not affect the overall situation.

For example, the peak in 1987 in the previous life was 4010 points, and it is also 4012 points in this life. Because Hong Kong's economy has increased by 5 to 10%, the stock market in the case can reach at least 4,200 points. However, Lin Zhichao's reminder to "be careful" still played a big role. After all, it fell by 92 points that day.

On that day, the Hang Seng Index fell a total of 1,070.7 points for the whole day (1,120 points in the previous life), a drop of 30.33%, the world's largest single-day drop in history; the futures index fell by 1,554 points, calculated at 50 yuan per point, with a loss of 77,700 per futures index. yuan, causing many holders of long futures positions to be unable to fulfill their contracts. Based on 80,000 open contracts, the total amount is 6.2 billion yuan, which is far beyond the guarantee company’s ability to bear.

In the evening, when the Stock Exchange held a press conference to explain its decision to suspend the market, an Australian reporter questioned whether the suspension was related to Li Fuzhao's personal interests. Is this decision legal?

Li Fuzhao immediately became furious and pointed his index finger at the reporter. He even hit the table with his fist and demanded an apology from the reporter. Li Fuzhao said: This is malicious slander. …Say your name and I want my lawyer to record it. …I’ll give you a ticket right now. ...Charge him, take him to the police station, send him to the police station.

During this period, senior staff of the Stock Exchange tried to persuade Li Fuzhao to calm down, but to no avail. A group of reporters dragged the Australian journalist out of the conference room, and the press conference ended in a commotion. (End of chapter)