On August 29, the Hang Seng Index closed at 14135.2 points, down 740.9 points, or 4.98%, and plummeted on heavy volume!
On September 1st, the Hang Seng Index, which had been closed for two days, closed at the lowest point of the day at 13425.7 points on Monday, down 709.5 points, or 5.02%, and plummeted on heavy volume!
Calculated from the all-time high of 16,820 points set on August 7, to today’s closing point, there has been a total of 16 trading days, a drop of 3,395 points, a plunge of 20.11%!
The VIP customers of HTIC Securities Company, those who followed the advice and settled for safety, were grateful and happy, while those who did not believe it or only sold part of their stocks were upset.
Xiangjiang stock investors were suddenly blinded. Seeing the wealth in their accounts shrink significantly within half a month, their eyes turned red!
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"Is Jimmy Lai trying to attract attention by grandstanding? Or is he looking for an enemy?"
On September 2, when Secretary Zhang came to work, he brought in a copy of "Apple Daily" published today and gave it to his boss Gao Fuming. He also bought it after seeing the eye-catching title on the newsstand because the content involved Sun Jian and Sanxin, the richest man in China. The real estate company gave "Apple Daily" to its boss Gao Fuming to read.
"Apple Daily" was founded two years ago. After investigation, boss Jimmy Lai found that ordinary citizens in Hong Kong have a fast pace of work, high pressure in life, and boring spare time life. So he ingeniously sent out paparazzi to follow and photograph Hong Kong celebrities and wealthy children. He made up gossip about his private life and celebrities’ scandals, and spared no expense in printing them in color for broadsheets. He was unconventional and catered to the preferences of ordinary citizens in Hong Kong. Many gossips became hot news for the citizens to discuss after dinner. He became famous as soon as he debuted Many local newspapers in Xiangjiang were caught off guard and gained a firm foothold.
Merchants saw the business opportunities and began advertising in Apple Daily. Hong Kong celebrities and wealthy children hated and feared it. Today, the circulation exceeds 100,000 copies.
As soon as "Apple Daily" came out, it lowered the bottom line of the newspaper industry, causing other newspapers to follow suit, and many local newspapers became vulgar.
"Apple Daily" invests most of its resources in hot entertainment news reports. Of course, the Hong Kong stock market and property market news in the bull market are indispensable. It invites stock commentators to publish investment hot spots in the stock column. There are endless tidbits about making a fortune, and it has many fans.
The headline of today’s front-page article is very attractive: Who is badmouthing the Hong Kong stock market? Signed Feng Guang.
Feng Guang is a well-known local stock commentator!
Based on the personal experience of a VIP customer of HTIC Securities Company, the article tells how HTIC Securities Company began to pessimize the Hong Kong stock market in the "VIP Investment Reference" for two consecutive weeks in mid-July when the Hang Seng Index was at 15,500 points...
The boss behind HTIC Securities transferred 200 million shares of Sanxin Real Estate Company at 15,000 points, cashing out nearly HK$7 billion; he sold 5% of TCG stocks near 15,500 points, cashing out more than HK$20 billion...
After reading the article in one sitting, although there is no name of Sun Jian between the lines, anyone with a discerning eye will immediately understand that the person mentioned in the article who badmouths the Hong Kong stock market is Sun Jian, the richest man in China!
Gao Fuming was puzzled. Sun Jian always kept a low profile. He never appeared on TV or made public remarks in newspapers and magazines, and he would not comment on financial market fluctuations. The transfer of Sanxin Real Estate Company shares was approved by the shareholders' meeting, and 5% of TCG was cashed out. The stock has been announced and there are no violations. Is cashing out in advance just badmouthing the Hong Kong stock market?
Does Jimmy Lai have a grudge against Sun Jian?
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The Hang Seng Index opened at 13777.3 points, opened 42 points higher, and soared to 13810.8 points. Suddenly, TCG's stock was suppressed by selling orders of 100,000 shares and 200,000 shares. Within 20 minutes, the stock price fell from 122.45 Hong Kong dollars to 118.32 Hong Kong dollars, plummeting. 3.37%. There are market rumors that the Hong Kong Stock Exchange will investigate TCG’s cash-out operation. The market has been dragged down. It not only closed the gap, but also broke the 13,000-point integer mark, reaching as low as 12,899.8 points.
The market plunged 3.92%!
Some foreign-funded institutions spread rumors about TCG
, short the Hang Seng Index!
The Hong Kong Stock Exchange immediately issued an announcement on its official platform, stating that the investigation into TCG's cash-out operation was purely a rumor, and reminded investors not to believe the rumors. Those who spread rumors will be severely punished by law once verified.
The bulls, who had been suppressed by the bears for many days, were encouraged and fought back. The buy orders for 200,000 and 300,000 shares quickly swallowed up the sell orders on TCG, driving TCG's stock price red in one fell swoop. The market recovered 13,000 points, and the bulls were encouraged. They joined the bullish camp one after another, and the market regained 13100 points, 13200 points, and 13300 points in succession... The bears were suddenly defeated and gave up resistance one after another...
The Hang Seng Index closed at the highest point of the day at 13735.3, up 309.6 points, or 2.31%, with heavy volume growth, sweeping away many days of decline!
The investors in the hall were delighted and elated.
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"George, we passed the test today and found that the Hong Kong Stock Exchange is well prepared. I suggest going long on the backhand, pushing up the Hang Seng Index again, forming a long position, and then going short on the backhand, taking advantage of the plummeting external stock markets to defeat the Hang Seng Index in one fell swoop."
Julian Robertson, the president of Tiger Fund who was in command in Hong Kong, called George Soros, the president of Quantum Fund.
"I agree with Julian's plan. The hard bones of Hong Kong are not so easy to break. We must be prepared for a protracted war. The longer the economic crisis lasts, the easier it will be for us to win and the higher our profits will be."
After hearing the report, Soros was not surprised. Everything was under his control.
After Thailand took the lead in abandoning the fixed exchange rate system on July 2, the exchange rate of the Thai baht against the US dollar plummeted 18% that day, and the foreign exchange and other financial markets were in chaos.
On July 11, the Philippines' large-scale intervention in the peso declared bankruptcy and decided to liberalize the parity between the peso and the U.S. dollar, resulting in a large-scale depreciation of the peso.
In early August, Malaysia gave up its efforts to defend the ringgit, and the Singapore dollar, which has always been strong, was also affected.
On August 23, the Indonesian rupiah depreciated to a historical low and had to request financial assistance from the International Monetary Fund.
The Taiwan authorities also took the initiative to depreciate the currency by 2%, putting Hong Kong's linked exchange rate under obvious pressure.
The Asian financial crisis breaks out in full force!
While observing the war situation in Southeast Asia, Soros discussed with Julian Robertson and John Meriwether, summoned foreign exchange traders, took advantage of the remaining power in Southeast Asia, pursued the Xiangjiang foreign exchange market, shorted the Xiangjiang stock market, and made money from the stock index futures and foreign exchange markets.
The Hong Kong dollar once showed signs of being attacked by speculators. The SAR government quickly and decisively intervened directly in the currency market, monitored the situation of all parties, and successfully defended the linked exchange rate.
On August 14, Soros used financial futures to buy Hong Kong dollars using 3-month or 6-month Hong Kong dollar futures contracts, and then quickly sold short, launching a second attack on the Hong Kong dollar, causing the exchange rate of the Hong Kong dollar against the US dollar to fall to 7.75.
The Hong Kong Monetary Authority once again raised short-term interest rates, causing banks' overnight interest rates to rise to an annual interest rate of 20%. At the same time, it absorbed a large amount of Hong Kong dollars sold by Soros. Hong Kong's foreign exchange market did not experience the panic selling that Soros hoped for. The Hong Kong dollar exchange rate Back to 7.7455.
As of today, the plan to short the Hang Seng Index is half successful.
