The Industrial Giant Reborn - Chapter 660

c650 The Battle to Defend the Hong Kong Dollar (Part 2) (Finale)

New York City, United States:

“You finally took action.” In a skyscraper on Wall Street, Soros, who was hated by Asian governments, was paying attention to all the data fluctuations in the Hong Kong market. When he learned from his subordinates that Chen Zhiwen ordered the acquisition of blue chip stocks in Hong Kong stocks , he knew that the person he had been worried about finally took action.

“So what if we take action? Although Eric’s net worth is high, it is impossible to compete with the hundreds of billions of dollars of international hot money.” Julian, the CEO of Tiger Management, another well-known hedge fund on Wall Street, said calmly: “I won’t Understand, why do you care so much about him? Can he still invest all his worth in protecting the Hong Kong dollar?”

“Although Hong Kong is a developed area, its economic aggregate is still not comparable to that of many East Asian countries. Why do you think we have been attacking for so long and still have no results? If it were other countries, they would have collapsed long ago.” Soros did not reply directly. Instead, he asked another question.

“Because of the base? Hong Kong has a small base, and the Hong Kong dollar market is also relatively small. In addition, the Hong Kong government has a large amount of foreign exchange. In terms of resilience, it far exceeds other East Asian countries.” Julian also attacked the sovereign countries of Southeast Asia this time. One of the people behind the currency, but he is really hidden, because his reputation is far inferior to Soros. There is no way, Soros is a chess piece, leading all hot money into the battle.

“This is one thing. On the other hand, many Hong Kong people are not willing to cash in US dollars. They trust their government very much. Otherwise, even if the mainland invests its foreign exchange reserves, it will not be enough for a run.” Soros said .

“Over in Asia, some places do have so-called unity, but that is only when the people really have confidence in the government. Once confidence is gone, even if ordinary people will continue to be deceived, those big local capitalists will definitely want to The only way to exchange for U.S. dollars was in South Korea, wasn’t it?” Julian said disdainfully.

“That’s the truth. But when I investigated the Asian region a few years ago, I already discovered that Hong Kong may be more difficult to deal with than South Korea. The most troublesome person is Eric Chen. In the past two years, he has been in the United States We have cashed out a large number of stocks of Fortune 500 companies, including Coca-Cola, Pepsi, General Electric, Nike, etc. The combined stocks of these companies are more than those of our two funds,” Soros said.

“With so many stocks of top companies, I have to say that Eric is really an investment genius.” Julian couldn’t help but admire him. Although everyone’s investment direction was different, their hedge funds were more speculative, but I also admire those investors who have a long-term vision. Even they will study people like Buffett.

Soros added: “Such a large amount of funds are still in U.S. dollars. If he really goes against us, and he can also use leverage, it will be a very big trouble for us, and he is still a human being.” , there won’t be many restrictions like the government, it will be completely free.”

Julian said: “Indeed, but what he is facing is not us, but a large amount of international hot money that is more than ten times larger than us. No matter how much money he has, he cannot withstand it.”

“He doesn’t need to be able to withstand it. He just needs to forcefully support the Hong Kong stock market. Then, our short selling in stock index futures will suffer heavy losses.” Soros said.

“Then we can only go head-on. There is no other way to do this, unless we can convince him to give up?” Julian asked.

“Don’t think about it. I’ve already sent someone to ask, and he disagreed.” Soros shook his head and said.

“Then we can only continue to fight.” Julian said: “It depends on who can mobilize more funds.”

“Continue to put pressure on the Hong Kong government in the Hong Kong dollar foreign exchange market and force the Hong Kong dollar exchange rate to fall. If the exchange rate really falls and the Hong Kong people panic, and if the Hong Kong government raises interest rates in order to protect the Hong Kong dollar, then the stock market will inevitably fall. Then Eric will be on a large scale. Even by sweeping the stock market, it is impossible to fight against rising interest rates and overwhelming negative news.” Soros said with a smile.

“Haha, it depends on who can persist to the end.” Julian said with a smile.

A few days later, Hong Kong:

“Sheng Chen, in the past three days, the country has confiscated and sold more than 15 billion Hong Kong dollars, and the Hong Kong government has caught them. Now no one knows how many Hong Kong dollars are left in the hands of international speculators. I am worried that the Hong Kong government will raise interest rates. .” Yang Wenkai reported.

“Don’t worry, I have just had a phone call with the Financial Secretary, Mr. Tsang. Now that the stock market and foreign exchange market are under full pressure, both sides cannot be passive defensive, so the Hong Kong government will stabilize the selling orders there, and we, In order to raise the stock price, Soros’ Hong Kong stock futures positions must be liquidated, so as to extinguish his arrogance,” Chen Zhiwen said.

Naturally, it is impossible for Chen Zhiwen to complete such a war alone. In fact, he is just a part of it. He also negotiated with the top officials of the Hong Kong government a long time ago. Everyone worked together to repel the international speculators. Chen Zhiwen was responsible for The purpose is to drive up the stock price and let international speculators liquidate their positions.

However, the premise is that the Hong Kong government must hold on. Otherwise, whether it is a forced increase in interest rates or the collapse of the Hong Kong dollar exchange rate, Chen Zhiwen’s side will also fail. Everyone is a grasshopper on a rope.

In addition, the Hong Kong government has communicated with the ruling families of Hong Kong blue-chip companies a long time ago, asking them to try their best to buy back their shares at the right time, and at worst, not to sell them. Most people agreed, because everyone Wealth is all in Hong Kong. If the exchange rate of the Hong Kong dollar really plummets, then most of Hong Kong’s rich people will also suffer heavy losses. They may even fall into the same bankruptcy crisis as the Korean consortium because they may owe a large amount of international bank debts.

In addition, there are many state-owned enterprises in Hong Kong’s blue-chip stocks. Before the central government in the mainland has personally intervened, it is the best way to use the hands of these state-owned enterprises to stabilize the stock market or even drive up the stock market to combat international speculators.

“Then I will continue to push up the stock price. Now it is close to making it unprofitable for international speculators. Their leverage is very high. As long as I continue to push up the Hang Seng Index, they will either liquidate their positions or have to add money. That’s it. It may also alleviate the pressure on the foreign exchange market,” Yang Wenkai said.

“Well, okay, the pressure from international speculators is fixed, either from my side or from the Hong Kong government. We will continue to acquire. I am also optimistic about the future of Hong Kong. These stocks will also be my long-term holding targets in the future. No need to Calculate short-term accounts.” Chen Zhiwen said again.

After withdrawing a large amount of his own funds from the United States, he indeed needs to find a suitable investment place that can also undertake a large amount of funds. Chen Zhiwen is not familiar with the European and American markets in the 21st century, so he will leave it to the mainland and Hong Kong, which are two places he is familiar with. The place is still very safe.

The Hong Kong Hang Seng Index will continue to rise in the future. Although it will not double as many times as his investment more than ten years ago, with today’s asset size, it is extremely difficult to double it. There is no need to do so. If you are pursuing data, as long as you can make a little profit, that’s all.

“Then I’ll go do it now.” Yang Wenkai said.

The economic war is still going on. During this period, Chen Zhiwen has tens of billions of dollars in cash overseas while buying Hong Kong dollars that have been sold off by Soros and others. This can also help the Hong Kong government to alleviate the short selling in the foreign exchange market in response to the national seizure. On the other hand, these Hong Kong dollars are used to buy a large number of Hang Seng Index and a large number of blue chip stocks, especially many state-owned enterprises.

In normal times, such an acquisition would have attracted a lot of attention and the stock price would have risen sharply. But now, the entire market is full of uncertainty. Instead, Chen Zhiwen’s capital has easily become the major shareholder of a large number of blue chip companies, but only slightly. The stock price has risen, and no one will pay attention to whether any takeover war may break out.

At any time, a crisis is also an opportunity. If the Hong Kong dollar was not at risk of being defeated, no matter how strong Chen Zhiwen’s capital was, it would be almost impossible to acquire so many stocks, because the stock price would really be speculated to multiple times. , until Chen Zhiwen couldn’t do anything anymore, but now he can finish it easily.

The Hong Kong government also briefly abolished the takeover offer regulations set by the former British Hong Kong government, allowing major shareholders or other capital to purchase their own or other companies’ stocks at will. This is to ensure that a large amount of capital will not be converted into foreign currency and leave. You can also enter the stock market to raise the stock price, thereby fighting against international speculators in two aspects.

At the same time, state-owned enterprises in the mainland also used funds to increase their stock prices on a large scale, or took the opportunity to acquire some stocks of other companies. In short, they also brought foreign exchange and needed to exchange US dollars for Hong Kong dollars. This process is also like that of Chen Zhiwen Likewise, it reduces the pressure on the Hong Kong government in the foreign exchange market.

For a time, the Hang Seng Index continued to rise steadily. Coupled with Chen Zhiwen’s reputation, many other Hong Kong stockholders and investors began to regain a little confidence in the stock market. They would also invest some funds in the market, thus accelerating the relationship between the Hong Kong government and Chen Zhiwen. Established plan.

Those who win the hearts and minds of the people win the world. This sentence is the same in today’s financial battlefield. Once Hong Kong citizens have no confidence in the Hong Kong government and all run on foreign exchange, it will be difficult for Chen Zhiwen to win this game even if he puts all his wealth on it. There is no war without gunpowder. On the contrary, even if Soros carries a huge amount of funds, he cannot win Hong Kong.

Time soon came to August again. In the past two months, the Hong Kong currency market has been attacked four times by hedge funds headed by Soros. However, the large amount of foreign exchange reserves and the spare funds prepared by Chen Zhiwen have stopped the attack. On the stock market, Although it did not rise sharply, it was still stable. Those international short-selling speculators suffered considerable losses after the futures expired.

It can be said that in the short term, the attack by Soros and others has failed.

However, at the end of the month, global stock markets also experienced declines of varying magnitudes, with European and American stocks falling by 3%-8%. In order to stabilize the stock market, Chen Zhiwen, the Hong Kong government and a large number of state-owned and Hong Kong enterprises injected 20 billion into the stock market at one time The Hong Kong dollar pushed the Hang Seng Index up 80 points again, which caused heavy losses to those who shorted the Hang Seng Index.

At this time, Soros was publicly interviewed in the United States, declaring that the Hong Kong government would lose.

It can be said that this is a very rare case in human history where an individual fights against a political power, even if it is just a financial war without smoke.

Hong Kong is different from other East Asian countries in this war. It cannot afford to lose. Otherwise, Hong Kong will encounter a serious economic collapse just after its return. This will inevitably affect the image of the mainland. In fact, the mainland government has invested a lot of money to save Hong Kong. Once the funding fails, the achievements of the reform may be set back for several years. Moreover, such failure will bring endless harm to future economic development.

Naturally, Soros is not the kind of person who makes random remarks. The purpose of his words is actually to reorganize the three armed forces and call for more house raids to follow him in another attack on the Hong Kong dollar.

In early September, international speculators made a comeback again. Their first target was the foreign exchange market. Tens of billions of Hong Kong dollars were sold within an hour. If the Hong Kong government did not accept the funds, the Hong Kong dollar exchange rate would inevitably fall. , once a downward trend is formed, it will inevitably lead to more selling, and eventually, Hong Kong will be in chaos, and a large number of Hong Kong citizens will run on foreign exchange.

This kind of financial war is a conspiracy. If you don’t take it, you will die.

However, those who can use conspiracy must be stronger.

“This is the last battle.” Chen Zhiwen stood on the top floor of the Land Building and ordered to Yang Wenkai: “Arrange all the leather bag companies in Bermuda to eat these Hong Kong dollars with all their strength, no matter how much they cost, this is comparable to the exchange rate designated by the Hong Kong government of 7.8 It’s still lower.”

The purpose of international speculators selling Hong Kong dollars is to suppress the exchange rate. Once the exchange rate plummets, the Hong Kong dollars they borrowed before will be bought back at a lower price and then returned. The price difference in the middle is the purpose of taking such risks.

In order to suppress the exchange rate, the price they sell must be lower than 7.8. If they take over at this time, as long as the Hong Kong dollar holds on later, they will make a profit, but not a lot.

“Okay, we cashed out a lot of Microsoft and Cisco stocks, but that’s just for this purpose.” Yang Wenkai said with a smile.

“Yes, we have to thank American high-tech companies for this.” Chen Zhiwen said with a smile. Now, the Internet technology bubble in the United States has begun. Microsoft has become the world’s largest company, and Cisco is almost the same.

So, Chen Zhiwen sold all these stocks, but not in the stock market, but directly with some tycoons in Europe and the Middle East. He also used the direct trading model of leather companies holding shares. Not even the U.S. government Know.

These technology giants have cashed out more funds than Coca-Cola and General Electric before. This is his biggest trump card against hedge funds such as Soros.

A few days later, a large amount of funds from unknown sources were used to purchase Hong Kong dollars on a large scale in several major trading markets in Europe. These funds bought as much as Soros and others sold.

Although the scale of this fund is definitely not comparable to that of international speculators, the Hong Kong dollar market is limited, and the Hong Kong dollars that Soros and others can borrow are also limited. After launching an exchange rate attack, the Hong Kong government used high interest rates to Loans locked.

In the end, when more than 20 billion US dollars of funds entered the market, plus the funds of the Hong Kong government, many state-owned enterprises, and a large number of local Hong Kong consortiums, the hundreds of billions of Hong Kong dollars in short orders reserved by Soros and others, after the sell-off, the Hong Kong dollar was still The original trading exchange rate was maintained, and the stock market even saw an increase of about 15%.

At this point, international speculators are unable to put downward pressure on the exchange rate of the Hong Kong dollar because there are no more short selling orders. At the same time, before the futures contract expires, they still need to buy back the Hong Kong dollar to repay the large amount of Hong Kong dollars they borrowed before. Fortunately, what the Hong Kong government needs is stability. exchange rate, so they did not take the opportunity to increase the exchange rate of the Hong Kong dollar. Otherwise, a group of countries would be stripped of their skins when they ransacked their homes.

However, in terms of stock market futures, it is another matter. There are no regulatory restrictions on the Hang Seng Index. Under the public announcement of Hong Kong Financial Secretary Donald Tsang, everyone knows that international speculators have failed, and many funds that were originally hesitant have also lost their money. It was released again and entered the stock market, causing the Hang Seng Index to rise further. Speculators who had previously shorted the Hang Seng Index all suffered heavy losses.

“We won, we won.” The Chen family, Chen Zhiwen also drank a rare drink of liquor and said with a smile: “This time not only did I save the Hong Kong dollar, but also allowed me to transfer a large amount of overseas capital back to me without paying any price. Hong Kong.”

That’s more important than how much money you make.

“Yeah, it’s better to put it in Hong Kong. Next, our funds should go north on a large scale. The mainland’s economy is developing well. Soon, the consumer market will take off.” Chen Tianfu said with a smile.

“Your beard has turned white, but you still want to do business in the mainland?” Wu Xiuling said with a smile.

“Of course I won’t go, but Awen still has to go. Also, in more than ten years, when Shimin and the others grow up, they will definitely take over our Chen family’s business empire. The core of the future will be in the mainland. Ah.” Chen Tianfu said: “The three countries in East Asia have the same culture, and our mainland is still their cultural ancestor. If Japan and South Korea can develop, and Hong Kong and Taiwan can also develop in the early stage, then the mainland must be the same.”

“Yes, I also agree with this point of view. The mainland has a population of 1.4 billion. The industry is now developing better and better. The popularity of education is also the first in the world. The number of engineers in the future will definitely be the first in the world. Industry is With strength and the deep-seated fear of falling behind, we will definitely go all out to catch up with developed countries.” Chen Zhiwen also nodded and said.

When the mainland industry begins to achieve certain results, it is destined to pursue a culture of self-improvement and a large number of high-quality talents. This country will not fall into the middle-income trap like Brazil, Mexico and other countries. Instead, it will cross over like Japan and South Korea. However, the volume is too large and it will take longer.

“You men just like to talk about these important national events.” Wu Xiuling waved her hands and said, “There is an even bigger thing now.”

“What’s going on?” Chen Zhiwen and Chen Tianfu asked curiously.

“Xiao Li, can you tell me?” Wu Xiuling said.

Chen Tianfu and Chen Zhiwen looked at Liu Xiaoli again, and Liu Xiaoli said without hesitation: “I’m pregnant again.”

“Really.” Chen Tianfuyan’s eyes lit up. Although he had four grandchildren, he didn’t think it was too much. Nian Chen Zhiwen also had a look of surprise.

“I went for a check-up, and this time it’s twins again.” Liu Xiaoli continued.

“F*ck!” Chen Zhiwen said an exclamation from the Internet era in later generations. They are twins again. It seems that he really has the twin gene!

【End of this book】(End of this chapter)