12dz Chapter 810 Financial Defense War
Chapter 810 Financial Defense War
Let’s talk about the daily exchange rate changes.
它从去年6月份底的115:1，到今年4月初的时候就变成了133:1。
By this time it was 150:1.
This means that in just two years from June 1995 to now, half of its wealth has evaporated.
This is the main reason why the economy of Xiaozi has not recovered for many years.
It suffered setbacks on three fronts: first, the bursting of the domestic economic bubble; second, the strong suppression from the United States; and third, the Asian financial crisis.
Its glory ended before the economic bubble, and the financial crisis that swept across Southeast Asia and Northeast Asia became the last straw that broke the camel's back.
Unemployment, bad debts and financial disputes spread like a plague to every corner of society.
Panic leading to suicide, homicide, depression and despair is spreading everywhere.
In November last year, Yamaichi Securities, one of the four major securities companies, announced its closure due to debts of 3.3 trillion yen.
It is also accused of having approximately 2600 billion yen in undisclosed debt and violating securities and exchange laws.
As for how the final characterization will be made, there is no specific result yet.
The famous Tuozhi Bank also went bankrupt during the same period.
All of this indicates one problem, that is, financial supervision is not in place and there are too many bad debts and overdue debts.
To sum it up in one sentence: the collusive corruption between financial institutions and regulatory authorities, and the complete failure of financial policies under the influence of interests.
Since 1990, at least 22,000 people have died from suicide bombings every year.
Not to mention other social issues.
The economy is in a downturn, the unemployment rate remains high, family income has dropped dramatically, family conflicts are frequent, and the pressure to survive is great, resulting in an extremely high divorce rate.
Even Xia Ran, an outsider, could feel the atmosphere of depression and despair deeply.
Many people on the street looked hopeless and numb.
Of course, none of this affects Xia Ran Company's ability to make money.
The staff who stayed here, after a series of operations, generated more than 61 billion US dollars in revenue for their company.
By the way, he also acquired several companies that were about to go bankrupt at low prices, some of which produced various electronic components.
There are companies producing LCD panels, semiconductors, mobile phone components, and a large shipbuilding company.
These companies have been taken over by their own people and are currently in a state of suspension and rectification.
Xia Ran has made up his mind. Once the flood recedes, he will find a way to shift the focus of these companies back to the country.
Build several large factories and use them to support post-disaster reconstruction.
"Keep watching the companies here and buy any suitable ones. It would be best if they have some technological content. Technology is what we lack the most."
"Okay, boss."
Xia Ran then returned to Shanghai with a lot of mobile phones. When she asked, she found they were cheap, so she bought a few more.
One was given to each person in charge in China, and she herself was able to use a mobile phone after a long absence.
On August 5, the Quantum Fund represented by Soros finally made a move as promised after clamoring for a long time.
This time, since they started dumping Hong Kong dollars, the local monetary authorities have intervened in advance.
Carrying a large amount of funds, they directly entered the stock market and futures market, trying to take up all the selling orders and push up the Hang Seng Index.
We will collect as much as the hedge fund throws in, and at the same time increase the discount rate and the overnight lending rate again.
We also informed all the major banks in Hong Kong in advance not to provide loans to these foreign hot money.
Otherwise, they would charge these banks punitive high interest rates.
At the same time, securities firms are required to prohibit lending stocks to international hot money to cut off its roots.
It was like we were chasing and intercepting it from several entrances at the same time.
The devaluation of the Hong Kong dollar that hedge funds expected never happened.
As for the stocks, whatever they threw in, we took in. Even Xia Ran's company took in a lot.
Xia Ran originally instructed that except for real estate stocks, all other stocks could be bought at will.
"We buy whatever the other party throws away."
On the afternoon of August 6, Xia Ranren arrived in Gangcheng.
I discussed this with Director Liu before coming here, and the first thing I did when I arrived in Hong Kong was to meet with the head of the financial regulatory department here.
Of course, she has to know the specific plans here before she can make the next decision.
Xia Ran repeatedly confirmed that the financial regulatory authorities were ready to take action in advance and would definitely persevere to the end.
So we decided, “Okay, let’s work together and just use money to push up the Hang Seng Index.
This game is about who has more money.
I'm going all out here, I just hope you don't stop midway and stab me in the back."
"Rest assured, this is also our country's bottom line. The RMB will definitely not depreciate, and Hong Kong's position as Asia's financial center cannot be shaken.
We have also discussed this with our superiors, and we have unanimously decided to protect Hong Kong City at all costs."
Xia Ran: "Okay, then I understand. Let's get started and have a good game."
The financial regulatory department directly assigned Xia Ran an operations team of several hundred people to be responsible for various transactions on Xia Ran's side.
Then he helped Xia Ran to meet many securities dealers.
Xia Ran then began to keep a close eye on the futures market.
“We should buy all the short positions we had before, and then pour money into them as much as possible.
We eat whatever the other party throws away, and we collect whatever is available in the market.
As long as the increase is large enough, we can earn back the money we invested through other channels."
Thus, the financial defense battle in which Xia Ran personally participated started ahead of schedule.
Whether it is stocks or futures, she asks people to buy whatever others are selling. The government is also not idle and is doing the same thing.
Even after Quantum Fund sold more than 600 billion Hong Kong dollars, the Hong Kong dollar exchange rate remained as stable as a rock and did not drop by a single cent.
The most annoying thing is that no matter how many stocks and futures they throw out, someone will immediately take over.
No matter how much ordinary investors throw in, there will always be someone to take over all of it, which is annoying.
There is no chance for the Hang Seng Index to fall at all.
By August 12, the Hang Seng Index had risen instead of falling, reaching more than 9300 points.
Because Xia Ran had a large amount of funds to back him up, many futures contracts held by hedge funds were forced to close, and he ended up losing all his money.
Although Xia Ran also invested more than 43 billion US dollars, the leverage she added in futures was quite large.
I basically recovered my capital from the price difference that increased.
The key is that he holds so many stocks and futures.
Xia Ran took a look and thought, hey, this is something that can be done, I can definitely continue with it.
Since she was able to buy all the shorts in other countries before, she can still only buy the longs here.
Because she has real money in her hands, she is not afraid of capsizing at all.
Seeing what Xia Ran did, the financial regulatory authorities also followed suit, which was bolder and more risky than their original plan.
It was this temporary boldness and risk-taking that not only saved them from any losses, but also made them profit.