Rebirth 76: Industrial Internet Empire

"Yang Mo, what should I do? If we let them smash the market like this, the stock market will really collapse..." Guo Kexin asked anxiously.

"What can we do? Let them smash the market. How about we join in the fun and short-sell some stocks?"

"Do you still have the intention to joke? Once the downward trend forms, like a flash flood, it will be difficult for you to support the bottom!" Guo Kexin said with some displeasure.

"I'm not kidding! Let's smash the plate too!" Yang Mo said seriously.

"Really bad? Doesn't this help them save money?" Guo Kexin asked in confusion.

"Of course, have you forgotten? We are short now! Just do as I say!" Yang Mo waved his hand and said.

Guo Kexin reluctantly issued a short selling order.

.........

"Zongheng Investment also followed suit?" Zhukenmiller looked in disbelief.

"Yes, those accounts are the mysterious accounts that have been competing with us for empty chips!" Assistant Annabell nodded and said.

"Does Zongheng Investment really want to go short with us?" Zhukenmiller said to himself thoughtfully.

"Haha, Stanley, you are too obsessed with avenging your past! There are no permanent friends or permanent enemies in the financial market. The financial turmoil has swept across Southeast Asia. How could Yang Mo buck the trend?" Robertson laughed loudly. smiled.

"I hope so! But we still can't be careless. Will the story of Black Monday on Wall Street repeat itself here? We still have to be wary of this kind of villain who has no contractual spirit at all!" Zuckenmiller said boldly said.

Uncle Sam's double standards seep into their blood. For allies, they can abandon and betray their allies with confidence out of strategic interests, but others must unconditionally abide by the spirit of the contract, regardless of life or death...

"No matter what, with one more ally like Zongheng Investment, the chance of winning will always be greater!" Robertson said with a shrug.

"Zongheng Investment had better recognize the situation clearly. If he wants to replicate Wall Street's bullish shortfall this time, I will let him spit out everything he has eaten over the years..." Zhukenmiller said in a ferocious voice.

……

Monday, May 9.

After more than half a month of frenzied market smashing, the Hang Seng Index finally fell below the 10000-point mark. The Hong Kong Stock Exchange was filled with victims, tens of billions of Hong Kong dollars evaporated, and all long-term Hang Seng Index futures contracts were liquidated.

The financial market in Xiangjiang, which has just returned, is in a state of chaos, and most stocks have been cut in half.

At this time, the foreign exchange market ushered in a new round of attacks.

Dozens of mysterious accounts began to sell Hong Kong dollars aggressively in the foreign exchange market. In just three days, the amount sold exceeded [-] billion Hong Kong dollars.

The Hong Kong dollar's 7.8:1 linked exchange rate is in jeopardy. Although Yang Mo has warned for a long time, the Hong Kong Monetary Authority, which is feeling pressure, has announced a significant increase in the loan benchmark interest rate in an attempt to prevent international speculators from borrowing Hong Kong dollars and cut off their ammunition to attack the foreign exchange market. Lending rates continue to soar.

High interest rates have not stopped international speculators from attacking the foreign exchange market. Instead, they have even more frantically shorted the Hong Kong dollar, denying the Hong Kong Monetary Authority a chance to breathe.

The Hong Kong Monetary Authority seems to have fallen into a dead end, a dead end where all escape routes have been blocked!

International speculators borrow Hong Kong dollars from major commercial banks and then sell them in the foreign exchange market. After obtaining US dollar assets, they again obtain mortgage loans from commercial banks and continue to lend Hong Kong dollars...

In order to maintain the linked exchange rate of 7.8:1, the Hong Kong Monetary Authority had to use its foreign exchange reserves to buy Hong Kong dollars. In order to prevent the liquidity of Hong Kong dollars from tightening, the Hong Kong dollars purchased by the Hong Kong Monetary Authority had to flow into the market again through commercial bank channels, which only allowed the Financial Monetary Authority to What makes the situation desperate is that these Hong Kong dollars have been lent out by international speculators and become new ammunition to attack the foreign exchange market...

There will always be a day when foreign exchange reserves bottom out, but international speculators only need to pay the loan interest rate, and the cycle can be endless. Whoever fails to hold back first will become prey in the mouths of others. This is an invisible war!

"Director Zeng! The foreign exchange reserves are about to bottom out. Issue an administrative order! All local commercial banks are prohibited from providing Hong Kong dollar loans to overseas legal persons. Otherwise, Hong Kong's financial system will completely collapse!" Ren Zhigang said with a tired look.

"No! The free trading financial system is the foundation of Xiangjiang. Once administrative intervention is forced, the consequences will be disastrous, especially during the sensitive period of return!" Director Zeng flatly vetoed.

"Director Zeng, choose the lesser of two evils! Once the linked exchange rate system is broken by international speculators, the wealth accumulated in Hong Kong for decades will be wiped out. The lessons of the ruble and the Thai baht are right in front of us. The foreign exchange market, stock market, and futures market all collapsed. We have no choice..." Ren Zhigang said hoarsely.

"That won't work! As one of the largest financial centers in Asia, Xiangjiang prohibits commercial banks from providing funds to overseas legal persons. There is no legal basis for reference. It will cause an uproar and even bring bad international impact!" Director Zeng shook his head. He shook his head and sighed.

"Director Zeng, this temporary ban can be issued by our Monetary Authority. According to the Hong Kong Financial Management Regulations, during special periods, the Monetary Authority has the right to issue control orders on domestic commercial banks..."

Ren Zhigang has no choice. Once the linked exchange rate is breached, those commercial banks that have backed the enemy will pay for their greed and stupidity. After the collapse of the financial system, these greedy commercial banks will be the first to bear the brunt. Bankruptcy of financial institutions will be inevitable!

"Director Ren, can issuing a temporary injunction protect the foreign exchange market?" Director Zeng asked after pondering for a long time.

"There should be no problem! International speculators are also exhausted. Without continuous financial support, follow-up attacks should be weak. According to our calculations, the investment of international hot money in the foreign exchange market has exceeded 400 billion Hong Kong dollars..." Ren Zhigang said as he spoke. It did not show enough confidence. From the beginning of this financial defense war, the Hong Kong Monetary Authority was in a dilemma of being passively beaten. He really saw no hope of making a comeback!

"Okay! You should convey the temporary injunction to the major commercial banks now. During the special period, all local commercial banks are not allowed to provide Hong Kong dollar lending business to overseas legal person capital!"

Ren Zhigang breathed a sigh of relief and left happily...

The temporary ban by the Hong Kong Monetary Authority has caused an uproar in the financial market. There are those who slander and criticize, and there are also those who applaud the case!

It's a pity that there are policies at the top and countermeasures at the bottom. International speculators follow the cat's path and the rat's path, and the capital channel was quickly re-opened.

Overnight interbank lending rates skyrocketed. Foreign banks borrowed Hong Kong dollars from local commercial banks at high interest rates, and then flowed them into the secret accounts of international speculators through various channels...