"George, will the Hong Kong Special Administrative Region really use its foreign exchange reserves to protect the market? Will mainland China use its foreign exchange reserves to protect the market?"
Robertson had a premonition that something was not going to happen and reported it to Soros immediately.
According to public information, mainland China's foreign exchange reserves are US$144.9 billion, and the Hong Kong authorities have US$96.8 billion. Once they start fighting, the international hot money led by Soros will only be close to US$100 billion, which is far from being a rival.
"Julian, I predict that the Hong Kong authorities and mainland China are just bluffing. We don't need to worry. We borrow another $10 billion from Citigroup, Wells Fargo and Bank of America just in case. At the same time, we spread the warnings and concerns of economic experts in the media. Once the Hong Kong SAR government violates its commitment to market economy status and uses foreign exchange reserves to intervene in the normal fluctuations of the foreign exchange market, stock market and stock index futures, it will completely shake the Hong Kong dollar's linked exchange rate system and the market economy status of the Hong Kong region."
Soros also had a bad premonition, but he had an arrow on the string and had to shoot! Before the decisive battle, several statements were frightened. Not only did international hot money suffer heavy losses, but the reputation of the world's investment masters will no longer exist.
"OK!"
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"Mr. Dong, Soros is afraid and uses the power of the media to threaten us, which strengthens our confidence in defeating Soros."
Several mainstream local newspapers in Hong Kong published the warnings and concerns of several international economic experts the next day.
Mr. Dong convened the Financial Secretary Mr. Zeng, the Chief Executive Officer of the Hong Kong Monetary Authority and the Director of the Financial Affairs Bureau Mr. Hui to discuss countermeasures.
"Director Zeng, we have also received a promise from the world's richest man this time that htIc will fully protect the stocks of Dawn Communications Group and htIc Securities Company."
The two deputy governors of the central bank have arrived in Hong Kong, and with them are mainland China's foreign exchange reserves of US$144.9 billion. At the same time, all Chinese-funded institutions in Hong Kong are required to go all out to support the Hong Kong Special Administrative Region government's actions to protect the market. attitude, deterring the arrogance of international hot money, and also injecting confidence into the Hong Kong government and investors throughout Hong Kong.
"Mr. Dong, with the world's richest man fully protecting the two component stock indexes tcG and htIc Securities, our chances of winning are even greater!"
As the Hong Kong stock market plunged 60%, tcG, which has excellent performance and generous dividends, saw its stock price drop 18.2% from its highest point (HK$131.54) to yesterday's closing price of HK$110.76. Its market value (HK$582 billion) surpassed HSBC (4970), ranking The Hong Kong stock market ranks first, and now accounts for 7.75% of the 33 component stock indexes.
tcG has always been the target of short-selling by international hot money, and also the target of key market protection by the Hong Kong Monetary Authority.
President Ren smiled, and everyone felt relieved.
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"Hong Kong is a mature market economy region. We welcome investors from all over the world to invest, safeguard the interests of investors, and maintain the financial stability of Hong Kong. However, we will not allow international hot money to cause trouble in the financial market of Hong Kong. On behalf of the Hong Kong Monetary Authority, I promise that starting from today, , by August 28, for every lot of Hong Kong dollars sold by international speculators, the Hong Kong Monetary Authority took one lot."
At 9 a.m. on August 14, President Ren expressed in an interview with the news media that the Hong Kong region abides by the principle of market economy status, and does not allow international hot money to make waves in the financial market. In the foreign exchange market, he publicly expressed his dissatisfaction with Soros. The international hot money challenge.
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"George, we have no way out!"
"Julian, the financial market speaks on its own strength, and breaks the Hong Kong dollar pegged exchange rate system before mainland China is ready."
The war is about to begin, and Soros's eyes are shining.
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"Mr. Wang, how many big sales of international hot money on tcG and htIc will be accepted? In addition, 33 component index stocks will be purchased for 20 billion Hong Kong dollars."
After Sun Jian saw the heroic statement of the president of the Hong Kong Monetary Authority from pN, the battle to defend Hong Kong really started! He immediately called Wang Dongming and took this opportunity to turn the nearly 100 billion Hong Kong dollars in his account into "cabbage price" blue chip stocks. This would not violate the rules and gain the reputation of a patriotic businessman. Why not?
"Okay, Mr. Sun!"
Wang Dongming is eager to try.
On the evening of the 11th, after Wang Dongming received an instruction from Sun Jian to invest HK$500 million to go long on the Hang Seng Index futures August contract (plus 10 times leverage), after the market opened on the 12th, Chen Huamin, the director of the futures investment department who had already been itching, took advantage of the Hang Seng Index. The index opened more than 100 points lower, and investors entered the market aggressively and went long on the August contract of Hang Seng Index futures.
Li Dong, the head of the stock investment department, who could no longer hold himself back, received an order to buy all blue-chip stocks within one day with HK$6.7 billion from his own business and HK$20 billion from Sun's general ledger.
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On August 14, the Hong Kong Monetary Authority undertook a huge sale of nearly HK$50 billion in international hot money and re-deposited the purchased Hong Kong dollars into banks to suppress the rise in interest rates and reduce the damage to the local economy.
International hot money also sold a large amount of more than HK$20 billion of Hang Seng Index constituent stocks and shorted Hang Seng Index futures.
Bullish forces represented by Hong Kong and Mainland China bought a large number of 33 Hang Seng Index component stocks. The Hang Seng Index surged 8% from the opening of 6643 points to the closing of 7224 points, and the trading volume increased by 255%.
Volume surge!
International hot money suffered heavy losses!
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Saturday, August 15th.
Sugon Communications Group announced that the company's holding company and Taobao Holdings are optimistic about the company's development prospects. In order to protect the interests of investors in Sugon Communications Group, they have promised to spend 22 billion Hong Kong dollars on the public stock trading market starting from August 17. , purchase shares of Sugon Communications Group according to the market price, with a maximum limit of HK$130.
htIc Securities Company announced that the company's controlling shareholder, htIc, is optimistic about the company's development prospects. In order to protect the interests of htIc Securities Company investors, it promised to spend 3 billion Hong Kong dollars on the public stock trading market starting from August 17. Purchase htIc Securities Company's stocks at market prices, up to a maximum of HK$15.
The announcements of Sugon Communications Group and htIc Securities Company caused great repercussions in the Hong Kong stock market, and long investors in Hong Kong were delighted.
President Ren made a statement on behalf of the Hong Kong Special Administrative Region Government. The US government expressed regret and opposed the use of government power to intervene in normal transactions in the financial market and maintain the principle of fair trading in the market. However, it won the acquiescence of the UK and other European countries. The British government expressed its regrets about international hot money such as Soros. Hate to the core.
The local mainstream media in Hong Kong praised the Hong Kong Special Administrative Region Government’s protective measures as a responsible action towards Hong Kong investors.
At the critical moment, Chinese and local funds actively entered the market to fully combat international hot money in stocks and stock index futures. In particular, to support the stock market, international hot money must not be allowed to make money and leave in the short-selling August stock index futures contract.
24 blue-chip and red-chip listed companies have issued announcements and invested funds to repurchase shares from the market, launching a battle with their opponents for the August stock index futures contract.
For a while, the bulls had the upper hand. After eight days of fierce battle, the Hang Seng Index rose all the way to the 7,800 point area. International hot money represented by Soros had a floating loss of more than 30 billion Hong Kong dollars. International hot money was mobilizing funds to prepare for the final decisive battle.
