The birth of the Hong Kong Island family

In the first half of 1998, Hong Kong's economy plummeted, even recording a negative growth of 2%.

The first is the property market, which is showing a downward trend with each wave. Cheung Kong Group has purchased two pieces of land at low prices, which is the best proof. Subsequently, the Hong Kong government froze the land sales plan for 9 months and waived the payment of the third land. In the fourth quarter, rates, the amount of 3.6 billion reserved for 'first-time home loan loans' increased to 7.2 billion, and the number of home loan offers increased from 4,500 to 10,000. These measures will cost Hong Kong's coffers HK$19 billion; and the 85,000 plan also Essentially stop.

Secondly, there is the stock market. International speculators have been lingering around, affecting the confidence of Hong Kong investors. As of early July, it had fallen to more than 8,000 points, which was more than half of the index at the peak, a drop of nearly 10,000 points.

Finally, there are various industries. Due to banks' tightening of credit and high interest rates, bankrupt companies abound.

Entering summer, the economies of China's neighboring countries shrank sharply.

The yen fell again and again, putting great pressure on the Hong Kong dollar and RMB;

Indonesia’s crisis continues;

Russian financial turmoil;

In Hong Kong, there are signs that the upcoming unemployment rate and interim results of listed companies will be extremely disappointing.

A trader at Sakura Bank in Tokyo said, "It is reported that Mr. Dai, the president of RM Bank, said that the RMB will depreciate slightly."

For a time, bad news for the RMB came and went, and people began to wonder how long the RMB could survive.

Speculators spread rumors that "RMB depreciation" is Xiangzhuang's sword dance, aiming at Peigong, and Hong Kong is also Peigong.

The depreciation of the RMB is bound to hit Hong Kong's linked exchange rate system hard.

This information further stimulated the stock and foreign exchange markets in Hong Kong. Coupled with the softening of the New York stock market, the daily decline once reached 299 points and will continue to decline. The new Japanese government is unable to make a comeback. Hong Kong listed companies have successively announced their interim results, and negative news has followed one after another. , Cathay Pacific suffered its first loss in more than 50 years, and profits of Swire and HSBC fell sharply; rumors and rumors spread in the Hong Kong market, making investors panic. These have undoubtedly become signals for international financial speculators to attack Hong Kong.

Starting from August 5, several European and American investment banks and hedge funds simultaneously launched a massive attack on the Hong Kong foreign exchange market, stock market and Hang Seng Index futures market, selling Hong Kong dollars and Hang Seng Index futures crazily in Hong Kong.

It is reported that its elite team is Quantum Fund, the largest hedge fund in the United States under the command of Wall Street speculator George Soros. On the 5th, more than 20 billion Hong Kong dollars were sold in the Hong Kong market; on the 6th, another 20 billion was sold.

According to the plan of Soros and others, they first shorted the Hong Kong dollar in the foreign exchange market, forcing the Hong Kong Monetary Authority to adopt the old trick of raising interest rates, and thereby suppressing the stock market.

As interest rates rise, the stock market is bound to fall.

Hang Seng Index futures will also fall simultaneously, and then speculators can short-sell Hang Seng Index futures at a lower price in the futures market, making profits in both the foreign exchange market and the stock market.

Hang Seng Index futures are all that the drunkard wants. Why?

When investors buy and sell Hang Seng Index futures, they buy or sell the rise and fall of the Hang Seng Index on a certain date in the future (i.e., the delivery date of the contract). The price of each Hang Seng Index futures contract is the Hang Seng Index on that day multiplied by 50 Hong Kong dollars. Every time the Hang Seng Index decreases by one point, the buyer of the futures contract loses HK$50 per contract, and the seller earns HK$50 per contract. According to this calculation, if a financial speculator sells a Hang Seng Index futures that expires in August when the Hang Seng Index is 10,000 points, and then tries his best to bring the Hang Seng Index down to 6,000 points, the speculator will then buy this contract to close the position. You can make a profit of 200,000 yuan.

If a speculator holds 10,000 contracts, the return will be 2 billion yuan. Such high returns have prompted financial speculators to do their best to suppress the Hong Kong stock market and the Hang Seng Index at any cost.

In mid-August, Mr. Dong held a press conference.

"Maintaining the exchange rate is the most unswerving policy of the Trump administration."

"If anyone thinks we will waver, they are wrong! We absolutely have the ability and determination to maintain the linked exchange rate, and we will definitely do it. Maintaining the linked exchange rate will ensure Hong Kong's long-term economic vitality and interests, and the short-term pain is acceptable ." Finally, Mr. Dong said solemnly with a rather tragic look.

Why is there short-term pain in maintaining the linked exchange rate?

The reason is: Hong Kong Monetary Authority President Yam Chi-gang is jokingly called "any move" by the public opinion circle, which means that every time financial speculators come over, the only move the Hong Kong Monetary Authority can make is to raise interest rates and increase the cost of financial speculation to resist them. Speculators' sniping, maintain the linked exchange rate.

The side effects of this method are becoming increasingly obvious, and it is too damaging to the stock and property markets. Because interest rates rise, investors will tighten their money, after all, loan interest rates are so high.

Without investors, the property market will be cold. Investors who hold shares will sell their shares one after another to repay their loans, and no new investors will enter the market to buy shares.

at this time.

The international giants are also paying attention to the developments in the Central office building. Because it was a decisive battle, Soros personally came to Hong Kong with his assistants to supervise the battle.

After seeing Mr. Dong's speech on TV, Soros raised his glass and said to a group of investment giants: "Gentlemen, this time we have shattered Xiangjiang's confidence. The attitude of the new Xiangjiang leader has changed." It shows that they feel tragic even themselves. Then, those investors have become frightened, and as soon as we fire the cannon, they will flee in droves! Haha!"

A group of middle-aged and elderly white people laughed one after another. Anyone who saw that look couldn't help but hate it.

"In the first two times, we only made tentative attacks, but we have achieved very good results. This time, we will break the Hang Seng Index to 5,000 points, and we will return to the West with banknotes!"

"Ha ha"

Everyone laughed!

Time flew by and another six days passed.

Thursday, August 13th.

On this day, the Hang Seng Index fell another 188 points to 8,005 points.

The Hong Kong stock market is about to experience a storm. At this time, "predictions" such as "the RMB is about to depreciate" and "Hong Kong stocks will fall to 5,000 points" are flooding the media, which greatly shakes investor confidence. If bad news comes from Japan and Russia, panic selling is likely to break out in the Hong Kong stock market.

In the evening, the Hong Kong government held another press conference.

Mr. Tsang, the Financial Secretary, spoke sternly at the press conference: "Hong Kong is not an ATM."

The scene is highly symbolic. Tsang Yam-kuen is in front, Yam Chi-kang and Xu Shiren are on the left and right, slightly behind, forming a stable and solid triangle. Yam is the chairman of the Hong Kong Monetary Authority and Xu is the secretary of the Financial Services Bureau. They represent the determination of the Hong Kong government.

Tsang’s speech was stern: ‘The authorities have a lot of resources and can repel speculators in one fell swoop. ’

A reporter asked: "The Japanese yen has fallen to a new low in eight years. Will it put pressure on the Hong Kong dollar linked exchange rate? Will the RMB fall?"

Mr. Zeng said: "Chinese officials have made it very clear that there is no need to change the RMB exchange rate. There will be no pressure to depreciate the RMB in the short term. However, it is a fact that the Japanese yen is uncertain. We have known it for a long time, so there is no need to panic."

A reporter asked: If hedge funds from all over the world come to confront the Hong Kong government, will the Hong Kong government still have confidence? "

Ren Zhigang smiled and said: "We welcome you!"

Xu Shiren said: "We have no choice!"

Late at night, the Iron Triangle, the Hong Kong God of Wealth, quietly came to Hengfeng Plaza.

"Director Zeng, the two directors, Lin Sheng is already waiting for you!"

"Okay, thank you, President Lin!"

"please"

Naturally, the only person who could bring the Financial Secretary of the Hong Kong government and two of his staff to visit was the retired Lin Chi-chao.

At this time, Lin Zhichao, Lin Ruihuan and his son were waiting for the three people to visit.

"Linsheng"

"Director Zeng"

After simple greetings, everyone sat in the conference room.

Director Zeng said impatiently: "Mr. Lin, you are the leader of Chinese businessmen in Hong Kong. Now that you are taking the lead and cooperating with our Hong Kong government to rescue the market, we will be able to defeat those international speculators without fail!"

Lin Zhichao said calmly: "I talked with Governor Dong. If Hong Kong's economy wants to recover quickly, the stock market cannot hold back. So this time I chose to rescue the market with great determination. I must teach international speculators a lesson."

Audio-Technica was shocked and wanted to teach the international speculators a lesson. Only this one dared to say it.

Even the Hong Kong government would not dare to say this. It would be good to be able to repel the national speculators!

Director Zeng said: "How much money does Mr. Lin plan to invest in the market?"

Lin Zhichao smiled and said: "If the Hong Kong government enters the market with 100 billion Hong Kong dollars, my personal investment company can match 50 billion."

The three of them were shocked!

You know, this is cash flow, not asset value. The former world's richest man's cash flow is as high as 50 billion, which is simply incredible.

"That's great! With Mr. Lin taking the lead, there will be no problem with the Hang Seng Index reaching 9,000 points by the end of August. The cost for international speculators to open a position is 8,200 points, so we can definitely teach them a big lesson!" Ren Yizhao said excitedly .

Lin Zhichao smiled and said: "I will also let Cheung Kong Group take the lead and call on Hong Kong's wealthy people to join in the rescue. As for the funds I personally invested, I will not consider selling them in three to five years, so you can rest assured."

Director Tsang said: “We admire Lin Sheng’s affection for Hong Kong!”

Lin Zhichao has always shown his love for Hong Kong, which is different from other Hong Kong rich people. They may use Hong Kong as a place to make money, and Lin Zhichao has also shown the idea of ​​​​letting Hong Kong develop together - such as establishing Hong Kong for culture and technology. Slogans such as "Prosper Hong Kong" were spread by Lin.

After a simple communication, everyone dispersed. Tomorrow is a critical day.

August 14th.

The battle to defend Hong Kong begins!

The Hong Kong government suddenly took action, using the Exchange Fund and Land Fund to simultaneously enter the stock market and the Hang Seng Index futures market to absorb large amounts of money. As expected, the Hang Seng Index counterattacked sharply.

International speculators agree that it is impossible for the Hong Kong government's funds to make large purchases because the Exchange Fund is a shield and credibility. If you invest too much into the stock market, problems will arise.

So, they stepped up their efforts to sell!

However, Lin Zhichao's funds quickly joined the battlefield and made a decisive decision. The bulls defeated the shorts on the same day, and the Hang Seng Index rose by 720 points, giving international speculators a disincentive.

In the next few days, the two parties went back and forth, and the transaction volume set new records every day!

The Hang Seng Index is firmly nailed at 9,000 points, which makes international speculators even more determined to fight the Hong Kong government capital, otherwise they will be eliminated with huge losses.

During this period, the Hong Kong Monetary Authority conducted a test: the government forces, which had always played the role of buyers, suddenly changed their faces and suddenly closed all stock spot and futures buying orders, and actively short-sold Hang Seng Index futures, causing speculators to rush to follow suit. In just two minutes, the Hang Seng Index plunged 160 points, and Hang Seng Index futures fell nearly 300 points. At this time, the government forces suddenly turned around and entered the market again to regain lost ground, buying a large number of stocks and futures contracts, pushing the stock index and futures index back to their original levels.

This test has caused the Hong Kong government to take a deep breath of air-conditioning. The strength of speculators cannot be underestimated. A fierce battle is imminent and is about to break out.

On the eve of the decisive battle.

In the early morning, Soros's assistant Zhuken Miller accepted an exclusive interview with a reporter from CNN. He said very confidently: "The Hong Kong government will lose!"

"Our view is that no matter what the Hong Kong government wants to do in the market, they wake up next Monday morning and their economy is still in recession," Zuckenmiller continued.

The reporter immediately asked: "Have you short-sold Hong Kong stocks?"

Zuckenmiller replied: "You can draw your own conclusions."

The conclusion is self-evident.

One morning in September 1990, Zhukenmiller woke up Soros from his dream and said excitedly: "George, you just made $958 million." This was Soros's great success in sniping the British pound. moment.

So what would Zuckenmiller report to Soros on the last Monday morning in August 1998?

No one dared to predict it except himself.

"The whole of Hong Kong can't sleep today. Do you know, the decisive battle will be tomorrow."

"what are you saying?"

"The gamble of the century! The Trump administration and international financial giants are getting ready. Just wait and see tomorrow!"

Such news abounds in the phone calls between relatives and friends between the mainland and Hong Kong, and between Hong Kong and overseas.

At this time, the average position of international speculators in the Hang Seng Index was around 8,200 points, while the Hang Seng Index closed at 8,961 points on the 27th.

The Te QU government cannot say that it has won, because there have been several times when the price rose or fell by more than 1,000 points; not to mention, in the decisive battle, selling was like a rolling torrent. Let alone 1,000 points, even 2,000 points were not impossible. .

Friday, August 28th.

Today is the settlement day of Hang Seng Index futures, and victory or defeat depends on this!

The settlement price of Hang Seng Index futures is the average of the Hang Seng Index quotes every 5 minutes on that day. Therefore, in order to raise the settlement price, it is necessary to ensure that the trend of the Hang Seng Index is stable. To achieve this goal, the government forces must do their best to defend the country to the death.

On this day, millions of Hong Kong people are destined to lock the channel and stare at the fast-beating Hang Seng Index. All of them are sweating.

New York, Quantum Fund.

Before the Hong Kong stock market opened in the morning, Zhukenmiller hurried to Soros's office.

"George, the European funds have agreed to enter the market, and I have told them to sell a lot of shorts at the end of the morning, catching Hong Kong off guard!"

Soros suddenly raised his head and said with a smile: "Okay, we have joined the new force! As long as the Hang Seng Index falls below 8200 points tomorrow, it will be our victory. Then, the sniper attack on Xiangjiang is not over. I want to see what they can do to resist next time!"

After saying that, he showed a hint of sternness.

Yes, if international speculators make profits this time, then they will think that the Xiangjiang government still cannot stop them. After all, more than half of the foreign exchange has been used this time; then, they can still press the button again at any time in the future.

This is a confidence battle!

At this time, the Hang Seng Index is at 8961 points, and international speculators need to let it fall by more than 760 points to know how much selling they are preparing for today. You can also know that today's trading volume will be a terrifying figure.

Zhukenmiller said: "Yesterday, the hidden predators in Xiangjiang handed over 10 billion. I am afraid they have run out of ammunition and food today!"

Soros smiled and said: "I think it should be. After all, he also bought a lot of bargains in the early stage. I think the total should be 20 to 30 billion! I don't believe that he can still come up with 10 billion!"

Lin Zhichao's family has never admitted that they were involved in this war, but Hong Kong people know that Lin Zhichao must be the 'big hero' behind it, otherwise how could the Hong Kong government win so easily.

Of course, other Chinese tycoons have also joined in defending Hong Kong, but their cash flow is limited and somewhat wavering.

At 10 a.m., the decisive battle began.

The government forces and financial giants immediately started a fierce battle on "HSBC Holdings", "Cheung Kong Holdings" and "Hong Kong Telecommunications". The speculators' selling was fierce and overwhelming, while the government forces came to stop them, and the water came to cover them. No one was left, and they all bought enter. In just 5 minutes after the market opened, the transaction volume reached 3 billion Hong Kong dollars! At the same time, the government forces also set up buying defense lines on 33 Hang Seng Index constituent stocks and defended across the board.

However, five minutes later, a surprising change occurred in the market. Originally, the government troops were only in a defensive position, and the Hang Seng Index still fell slightly. Suddenly, a large influx of buying orders reversed the situation and pulled the Hang Seng Index 'green' in just five minutes.

"Oh my god, what a huge purchase. Are the government troops planning to attack instead of defending?"

"It's not like the style of the government forces! Logically speaking, even if there is a slight decline today, the government forces will win a big victory. There is no reason for the Hong Kong government to interfere so deeply!"

"Yes, this style is domineering and domineering, kind of like Mr. Lin Zhichao's style, right?"

"That's right! The only rich man in Xiangjiang with such power is Mr. Lin Zhichao. He is a stock god and the former richest man in the world with very rich cash flow assets!"

"The richest man Lin is domineering! I like it!"

For a time, this kind of discussion spread among Hong Kong stockholders.

In fact, people in Hong Kong do not completely agree with the government's intervention in the stock market and foreign exchange market, and many people still criticize it. After all, Xiangjiang advertises a free economy. If the government interferes, it will obviously be somewhat 'unfree'.

In fact, looking around the mountains and rivers around Xiangjiang, we can see that they are covered with wounds.

The overall technological level of Japan's economy is far behind that of the United States. Japan's economic growth rate in the second quarter of this year fell by 3.3% compared with the same period last year. This is the third consecutive quarter of decline in Japan's economy. Analysts pessimistically believe that Japan has entered the most serious economic recession in the past 50 years.

In foreign currency terms, Indonesia lost a generation's development gains almost overnight. The Indonesian economy is estimated to decline by 15% this year compared to last year;

The Thai stock market has lost 90% of its value;

Malaysia simply closed its doors, implemented foreign exchange controls, and stopped dealing with foreigners on its capital account.

As the Russian economy collapses, Western economists are already talking about the bankruptcy of the entire concept of emerging markets. It is reported that the total foreign debt owed by Russia will be as high as 200 billion US dollars, which is the largest foreign debt owed by a government in human history.

Statistics show that from the Asian financial turmoil in July last year to the beginning of this year alone, hundreds of billions of dollars of capital have flowed out of Asia. Until now, there has only been a lot more. The collapse of the bubble economy, sluggish market demand, low investment returns, depletion of funds, and banks' reluctance to lend are like a ghost lingering in the Asian continent.

In Taiwan, the authorities announced that anyone who sells Soros funds on behalf of others can be sentenced to two years in prison.

Before the market closed at 12 noon, the battle became more intense. Many blue-chip stocks such as "Cheung Kong Holdings", "Wharf" and "Sun Hung Kai" were sold wildly by speculators, and a large number of European funds entered the market. Amid the roaring sea, the ‘government troops’ stand tall in the sky. At the close of the afternoon session, the turnover was reported at HK$65.9 billion.

Among them, 15 billion in funds came from Lin Zhichao.

With such a huge amount of funds, the Hang Seng Index only rose slightly by 36 points. I can't help but sigh at the strength of international speculators.

If it weren't for the government's intervention, it wouldn't be a problem if the Hang Seng Index fell below 5,000 points!

As for the wealthy people in Xiangjiang, although they have funds, their companies have been greatly affected. The important thing is that international speculators have attacked Xiangjiang Finance, which has filled the atmosphere outside Xiangjiang. The wealthy people in Xiangjiang do not dare to take out cash at all. Flow to fill the big holes.

When the market opened in the afternoon, the battle became more intense, with speculators selling in droves, and the special QU government was on the defensive across the board. On average, 350 million yuan worth of stocks change hands every minute.

At the critical moment, Lin Zhichao's funds poured in again, continuing to push up the Hang Seng Index, rising by nearly 60 points.

Of course, don’t count on retail investors, because everyone knows that the Hang Seng Index futures will most likely fall after the delivery date; because of the rise in the second half of August, the government forces only used hundreds of billions of funds to target international speculators. of.

At 4 o'clock in the afternoon, the Hang Seng Index finally settled at 9248 points!

It was a thrilling four hours!

The trading volume throughout the day reached the highest record in the history of the Hong Kong stock market - HK$128 billion!

Hang Seng Index futures finally settled at 9268 points.

International speculators lose more than 1,000 points per contract, which is more than 50,000 points.

So this time, international speculators suffered heavy losses!

In a total of 10 trading days, the Hong Kong Special Administrative Region government used approximately HK$120 billion in foreign exchange reserves, and Lin Zhichao also used HK$50 billion in funds, boosting the Hang Seng Index by 1,562 points.

The government made a profit of about HK$2.8 billion in the index futures market, and the losses of international speculators were estimated to be about HK$4 billion.

Immediately, Governor Dong made a speech: "We have achieved our goal and thank all parties for their joint efforts to protect Xiangjiang Finance!"

The next day.

Hong Kong media have reported:

"The government forces received help from mysterious predators and gained at least 30 billion more Hong Kong dollars to enter the market."

Many media pointed out that the Hong Kong government received help from wealthy Chinese businessmen and jointly stabilized the stock and futures markets.

Some media even said: "International speculators should not provoke Hong Kong because there are capital predators in Hong Kong!"

For a time, there was a lot of discussion.

Of course, Lin Zhichao never came forward from beginning to end, and the Lin family Qilin'er also refused to acknowledge it.

The only thing that can be known is that Cheung Kong Group and Wharf Group entered the market to buy some stocks.

October, after the financial crisis.

Governor Dong issued his second policy address, clearly proposing ‘revitalizing Hong Kong through culture’, ‘revitalizing Hong Kong through science and technology’, and ‘traditional Chinese medicine port’, etc., which immediately attracted the attention and discussion of Hong Kong citizens.

"Culture prospers Hong Kong. This is the slogan shouted by the media group. Now it has been included in the government's policy plan. This is a great thing! Hong Kong's cultural industry has developed very rapidly in recent years and has huge potential."

"Yes, this slogan was first mentioned by Mr. Lin Zhichao! Hong Kong culture and Hong Kong comics were the foundation laid by Mr. Lin Zhichao, and then developed by Mr. Lin Ruikai."

"Hong Kong's variety shows are exported to dozens of countries overseas, such as "Millionaire", "Talent Show", "The Voice of Hong Kong", and "Big Brother". Hong Kong's Hong Kong culture has swept across Asia."

"Prospering Hong Kong through science and technology is also the slogan put forward by the Yangtze River Industrial Group. Mr. Lin Ruijiang is a technology tycoon."

When the economy was in bad shape, everyone discovered that Hong Kong already had two "pillar industries" without knowing it.