Ya Nei of Rebirth

Chapter 913 Siyi Binfu

The first round of attacks by major arbitrage funds, although only tentative in nature, also showed strong strength. The emergence of a large number of random selling orders caused the Hong Kong dollar exchange rate on major exchanges to plummet, and soon fell to 7 points per US dollar.

Near the psychological mark of HK$75.

The Hong Kong government implements a fixed exchange rate system that closely follows the U.S. dollar. This is very beneficial to stabilizing the financial market and promoting the development of the Hong Kong economy. Over the years, the exchange rate of the Hong Kong dollar against the U.S. dollar has been relatively stable, and this exchange rate has become a factor in whether the financial market

A stable barometer and reference.

For several days, the ratio of the Hong Kong dollar to the US dollar continued to decline, and Hong Kong's financial market suddenly fell into chaos.

Within a few months, the financial crisis swept through Southeast Asian countries. Funds were everywhere and victims were everywhere. Many middle-class people went bankrupt overnight. The originally wealthy and respectable families suddenly turned into abject poverty and even were heavily in debt. These bloody realities have impacted from time to time.

The nerves of Hong Kong citizens are already tense, fearing that such misfortune will suddenly befall their families. Their psychological endurance has become extremely fragile.

As soon as the financial market showed signs of collapse, citizens immediately went into chaos and rushed to major banks to exchange their plummeting local currency for US dollars.

The lessons learned from Thailand and other Southeast Asian countries show that under the impact of extremely powerful arbitrage funds and international hot money, the Hong Kong government will be unable to withstand the impact sooner or later and will abandon the fixed exchange rate. As a result, the Hong Kong dollar wealth they have worked so hard to maintain will shrink significantly.

.So everyone wants to quickly convert their money into US dollars for insurance before the government gives up the fixed exchange rate.

As a financial city in Hong Kong, the stability of the financial market is crucial to the economy of the entire city. Maintaining the fixed exchange rate system is a guarantee to maintain people's confidence.

The Hong Kong dollar is in danger for the first time since the implementation of a fixed exchange rate.

The Hong Kong Monetary Authority immediately made a tough response, using a large amount of foreign exchange reserves, urgently entering the market, forcibly intervening, accepting a large number of Hong Kong dollar sales, and forcibly stabilizing the exchange rate above the psychological threshold.

As soon as the arbitrage fund took action, the expert team paid close attention to changes in the situation.

However, the members of the expert group were all seasoned veterans and did not react excessively to such a round of tentative attacks. After deliberation, they made the same decision as Liu Jun - wait and see what happens!

Because of the strong intervention of the SAR financial management department, the expected results were achieved. The Hong Kong dollar exchange rate began to stop falling and rebound. The run on the doorsteps of major banks was temporarily alleviated.

But just two days later, more selling orders poured into the market, and the Hong Kong dollar exchange rate fell below the psychological threshold of 7.75, falling rapidly. The run that had just eased slightly emerged again, more intense than the last time. SAR

The government had to deploy a large number of police forces to maintain continuity and urgently allocate positions to cope with the bank run and avoid bank bankruptcy.

The war situation became increasingly fierce, but Comrade Liu Jun never showed up at the Qiushui Hotel. Qiu Qingchuan couldn't help but wonder. Where did this dear friend hide at such a critical moment?

This is not quite like Liu Jun's style.

Secretary Liu sometimes behaves in a more individualistic manner, but he is by no means irresponsible.

"Hey, Liu Jun, where did you go?"

Qiu Qingchuan couldn't help but dial Liu Jun's number.

Liu Jun was smiling on the other end of the phone, but what he said made President Qiu stunned. Secretary Liu said: "I am shopping with a beautiful girl to buy some small things. Whatever you want, I will bring it back to you!"

Qiu Qingchuan couldn't help but fainted: "You are awesome!"

"Why are you so anxious? Haven't you watched the movie? In the movie, the master is always the last to appear! As soon as he appears, he kills everyone, and all the barbarians are conquered, and he is invincible in the world!"

Secretary Liu was still enjoying himself and had plenty of time to tease Governor Qiu.

"Okay then, buy me a diamond ring, one carat."

Governor Qiu is also a wonderful person, and he quickly regained his composure. But we can't let this arrogant guy compete with us.

Liu Jun smiled and asked: "Okay, is it for Wenwen?"

"No, it's for my wife! When you come to Hong Kong, you always have to bring something back for business."

Even though they were separated by the phone line, Secretary Liu gave a thumbs up and praised him: "What a loving gentleman of the Qiu family. I admire you! I have no respect for you. I will give this diamond ring to my sister-in-law!"

"Well, let's buy a two-carat one!"

Governor Qiu said with a smile.

Secretary Liu couldn't help but staggered.

As expected, there are even more powerful ones among the strong, and every mountain is higher than the next!

Governor Qiu is very clever!

"Anyway, you have money, so if you don't give me money, it's nothing!"

Governor Qiu's last words left Secretary Liu completely speechless.

It’s a mistake to make friends!

Although he made a careless friend, Secretary Liu kept his promise and bought Governor Qiu a large two-carat diamond ring. It was so jewel-like that he personally delivered it to Governor Qiu at the Qiushui Hotel. It happened that Director Hao of the Financial Management Bureau of the SAR Government came to visit him.

Secretary Liu of the expert group also attended the meeting.

Director Hao was in a very heavy mood, his eyes were bloodshot, and it was obvious that he had not slept well in the past few days. It was no wonder, because the fate of his neighbors was too shocking, and he couldn't help but feel nervous.

"Professor Sheng, the situation is very critical now. I hope the central government can lend a helping hand!"

Director Hao didn't exchange much greetings. He quickly got to the point and spoke solemnly.

Professor Sheng looked at Song Tianqing, the deputy team leader beside him.

Song Tianqing nodded slightly.

When the expert team went to Hong Kong, they actually received full authorization from Vice Premier Hong to directly mobilize huge amounts of foreign exchange reserves and intervene in the market. The central bank also received the same instructions and will provide full cooperation.

Professor Sheng was about to speak when Liu Jun suddenly raised his hand and said with a smile: "Professor, I want to say a few words."

"Speaking!"

Sheng Shancheng said in a deep voice.

"Mr. Hao, I think this is just a tentative attack now, and the main international funds have not appeared. At this time, it is not appropriate to expose our strength too early."

Liu Jun said calmly.

"Revealing strength too early?"

Director Hao asked back, seeming a little confused.

"Yes. I think that this time when fighting against the International Fund, we should not just be satisfied with repelling their attacks. We should inflict heavy damage! Only in this way can they remember this lesson and dare not attack them again in the future.

Hong Kong’s financial market takes action!”

Director Hao pondered: "Mr. Liu, do you mean to show weakness?"

"Exactly!"

Liu Jun smiled and nodded.

"At present, we should stick to the defensive line and not be in a hurry to counterattack. When the international funds mobilize a larger amount of funds to launch a comprehensive attack, we can then strike hard to defeat them in one fell swoop and severely damage their fundamental strength. This will be very beneficial to the future development of Hong Kong.

It’s beneficial.”

Professor Shengcheng asked with great interest: "How do you plan to fight back?"

Liu Jun smiled and said: "Needless to say, capital reserves are the fundamental means to ensure victory. As for technical means, I suggest that the SAR government consider issuing large amounts of government bonds at the appropriate time to forcibly raise the Hong Kong dollar interest rate.

This will promote the exchange rate of the Hong Kong dollar against the US dollar. In addition,

, it is also a commonly used method to significantly increase interbank overnight loan interest rates and increase the transaction costs of speculators. Of course, when appropriate, it is necessary to join forces with central banks of many countries to exert pressure to deter small international hot money from withdrawing and weaken speculation.

The power of the fund can also be used."

Director Hao's eyes suddenly showed a look of shock.

As the head of the counterpart affairs bureau of Hong Kong, he naturally knows the basic information of the eleven members of the expert group very clearly. It seems that this young Mr. Liu Jun is officially the deputy secretary of the municipal party committee of a provincial capital city in the mainland and is not a professional.

financial official. At that time, Director Hao felt very strange that Liu Jun appeared on the expert panel.

Such a young party official is completely incompatible with the expert team's mission to Hong Kong. Perhaps it is a special arrangement. Different systems, after all, Director Hao does not have a very thorough understanding of the mainland officialdom.

Unexpectedly, this so-called "expert" who appeared "inexplicably" turned out to be so familiar with financial operation methods. He was also majestic and had a far-sighted vision. It seems that the mainland officialdom is really a hidden dragon and a crouching tiger!

After a short consultation, the expert group and Director Hao finally accepted Liu Jun's suggestion, and for the time being only conducted a conservative defense and did not conduct a comprehensive counterattack, showing weakness.

The next day, the Hong Kong Monetary Authority once again used its foreign exchange reserves to intervene in the market, raising the Hong Kong dollar exchange rate to above the 7.75 mark again, barely holding on, and repelling exploratory attacks by international funds.

The development of things was almost exactly the same as Liu Jun's prediction.

In late July, Soros's Quantum Fund took the lead and raised a large amount of funds to once again attack the Hong Kong dollar, making a large number of forward purchases for the Hong Kong dollar, preparing to repeat the glorious scene of encircling and annihilating the Thai baht. This move really worked. On that day, the US dollar against the Hong Kong dollar

The three-month forward premium is more than 200 points, and the Hong Kong dollar's three-month interbank interest rate has skyrocketed. The Hong Kong dollar is in crisis again.

In the operation room of Qiushui Hotel, Liu Jun glanced at the market conditions of various exchanges, showed a smile on his face, and said to Professor Shengcheng: "Professor, the big fish has taken the bait, let's take action!"

Shanda Cheng also smiled and nodded.

After walking out of the operation room, Liu Jun took out his phone, dialed Huang Miaoqi, and said simply four words: "Attack across the board!"

Following Liu Jun's order, a carefully planned counterattack began.

The next day, the Hong Kong government announced the issuance of a large amount of government bonds, raising Hong Kong dollar interest rates, which in turn pushed the Hong Kong dollar's exchange rate against the U.S. dollar to rise sharply. At the same time, the Hong Kong Monetary Authority issued verbal warnings to two banks suspected of speculating in the Hong Kong dollar.

A number of Hong Kong dollar speculators were frightened and immediately withdrew their capital. The Hong Kong Monetary Authority also significantly increased short-term interest rates, causing overnight loan interest rates among banks to skyrocket and speculative capital transaction costs to rise sharply.

Immediately afterwards, a meeting of the central banks of my country, Australia, the Hong Kong Special Administrative Region, foreign countries and ASEAN countries was held in Shanghai, and a statement was issued: Strengthen cooperation to jointly combat currency speculation.

A series of blows, especially the massive influx of buying funds, caused the exchange rate of the Hong Kong dollar against the US dollar to continue to rise. International speculative funds suffered heavy losses and suffered heavy losses. Huge amounts of money collected from elsewhere continued to flow into the pockets of buyers such as the Sheng Ye Group.

Among them, the speculative funds had to leave Hong Kong in embarrassment.

Counterattack and win!