Chapter 334: Hong Kong Dollar Crisis

The time of the outbreak of the stock market crash cannot end in just a few days, so even if it happens on September 24, Zhang Junyi will not be able to leave Xiangjiang and go to the United States again in a short time.

After all, the outbreak of this incident can be described as a considerable opportunity for Zhang Junyi to rapidly expand his own incense, not that Zhang Junyi was born with a weak temperament, gloating, and happy for those companies that continue to go bankrupt and bankrupt, but Zhang Junyi knows that such a result will not be transferred by his own will as an objective law, with the occurrence of the 9.24 incident to love you, it is inevitable that there will be a stock market crash in Xiangjiang.

Therefore, in the era of Xiangjiang in such an environment, only Zhang Junyi, who is well-worthy, can take the opportunity to annex other enterprises suitable for his own business, and continue to grow himself in it.

After all, the growth of every enterprise is stepping on the corpse of other competing enterprises in the same industry to complete its own growth and expansion, in the business world, survival of the fittest, big fish eat small fish, small fish eat shrimp such things are the most normal things.

In the market economy, we must respect the law of "survival of the fittest." The market economy is an honest economy, and at the same time, it is also a competitive economy, and under the conditions of the market economy, competition is inevitable. Under the conditions of a capitalist market economy, the competition between enterprises is often disorderly, blind, and even very cruel.

"Survival of the fittest, survival of the fittest" originally meant that organisms with strong adaptability were preserved in the competition for survival, and those with poor adaptability were eliminated. This is a fundamental thesis of Darwin's theory of evolution. Now it is extended to human social and economic activities, referring to the competitive relationship between enterprises, the survival of the good quality, and the elimination of the poor quality. "Excellent" and "inferior" are also relative, "excellent" in one situation may be "inferior" in another, and "excellent" and "inferior" can also be transformed.

Of course, this transformation is also conditional and positive, including internal and external conditions that promote its transformation. However, the elimination of the inferior is for the better survival and development of the superior, which is conducive to the progress of society.

The survival of the fittest in enterprises should become the "norm", a number of enterprises that are not suitable for the market economy will be eliminated, and a number of enterprises that are suitable for the market economy will be reborn, and they will be more energetic and vigorous. I always don't want to let the enterprises that should be eliminated not be eliminated, and the resources of the society are consumed in vain, but the new enterprises are unwilling to support, especially the private enterprises with vitality, and the result is that the entire economy will lose its vitality.

Whether it is the weak or the strong, the fittest will survive, and the unfit will perish. Enterprises should find their own "suitable" space in order to survive and develop themselves. To find the "suitable", that is, if you have a huge amount of energy, you can transform the environment, when the energy is insufficient, you can be dormant, ready to go, when the energy is very poor, you must learn to adapt to the environment. When you can't adapt to the environment, even if you are strong, you will only perish quickly in the end.

Therefore, the occurrence of the Xiangjiang stock market crash is also a new reshuffle, because of the collapse of the market economy and decay of the enterprise, will naturally become the nutrient of some new competitors in the same industry, their bankruptcy or annexation is for those high-quality enterprises to develop and grow again, obviously, Zhang Junyi's Yitian Group is such an enterprise, in such an opportunity to continue to grow and develop.

During this period, the following people continued to send batches of high-quality enterprises facing bankruptcy difficulties due to the stock market crash to Zhang Junyi, and then through Zhang Junyi's screening, the enterprises suitable for their own Yitian Group were issued to each subsidiary again, and the subsidiary sent a special negotiation team to negotiate the acquisition of each target.

For example, in the past few days, those real estate and land companies with large losses have also become the target of Zhang Junyi's Yitian.

Although Zhang Junyi, whether in his previous life or in this life, is very disdainful of the handful of top tycoons in Xiangjiang, who are almost all involved in the real estate industry, but Zhang Junyi also understands that if real estate is not involved in Xiangjiang, it is impossible to become the main voice of Xiangjiang.

So in the face of such a strange city, even if he is reluctant, Zhang Junyi has to be involved in this field.

Only by experiencing it can we actually experience the reality of this era.

As for the words 'one country, two systems', Zhang Junyi has not only heard it in this life because of the propaganda of the Chinese side, but also in his previous life, during his school days, because of the continuous appearance in political textbooks, his ears are almost grinding out of cocoons.

But only if you really live in such a big era environment, and really live in a city like Xiangjiang, can you appreciate the true meaning of these four words.

From the beginning of the negotiations between the two countries in 1982 to the formulation of the Basic Law, as well as the handling of some major issues during the transitional period, it should be said that the whole process has been carried out under the guidance of the concept of "one country, two systems" put forward by Deng Lao. Not only that, but it was also done under his personal direct care and specific guidance. The concept of "one country, two systems" is the inheritance and development of Deng Lao's Marxism-Leninism and Mao-Lao thought.

To put it bluntly, why socialism with Chinese characteristics was often mentioned in the past life, Zhang Junyi really understands the meaning of this sentence, and an important content of this characteristic is the handling of the issues of Xiangjiang, Macao, and Taiwan, that is, "one country, two systems."

There are only two ways to resolve the Hong Kong issue, one is peaceful and the other is non-peaceful. In fact, in Zhang Junyi's view, if you choose non-peaceful means, it will undoubtedly save time and effort, after all, in Zhang Junyi's view, if you want to use force to solve the Xiangjiang problem, Huaxia should not even send a regular army, and it is enough to use the public security forces and police of the province that is a river away from Xiangjiang.

However, it is precisely the principle of 'one country, two systems' that is more acceptable to all parties when it is resolved, and at the same time, it can also set an example for resolving the issues of Macao and Taiwan.

During this period, Zhang Junyi was actually thinking about a question at the same time, why is the British side so reluctant to give up just because of Xiangjiang, a small island city? Just because Xiangjiang is one of the four tigers in Asia?

In fact, judging from Zhang Junyi's experience, the Iron Lady is still impulsive, because she has just won a Falklands War and seized the Malvinas Islands from Argentina, she has become a little invincible, and she thinks that she has the experience of defeating the Falkland Islands, so she thinks that in the process of dealing with this matter, it is her own strong will and the heroic fighting of the British army that she can 'save' the difficult situation caused by the short-sightedness of the British Foreign Office and the submission to external pressure.

On the surface, Hong Kong has some similarities with the Falkland Islands; Another distant British colony was threatened, and the rights of England under laws and treaties were still valid for at least part of the territory of Xiangjiang, but the Iron Lady never imagined that Huaxia was not Argentina after all, and Xiangjiang was not the Falklands.

In other words, 1982 was also an eventful year in Xiangjiang, affected by the financial crisis, the stock market fell, the foreign exchange market fell, the futures market fell, the property market fell, in addition, Xiangjiang also had to face a crisis.

At the gates of the major exchanges in Xiangjiang, some citizens are holding signs such as "return my hard-earned money" to protest, of course, they must know that this is useless, just to vent, in contrast, Zhang Junyi still feels that this is still done well by the Chinese compatriots in the previous life, and has a great national demeanor, no matter how much he loses, he will not go to the stock exchange to protest.

On the side of the street, many of them were maids from the country that had danced the most happily on the South China Sea issue in their previous lives, waiting for their employers, and not far from the street, there were old people with bags on their backs, begging from those pedestrians with heavy expressions.

The pedestrians on the road looked nervous one by one, and it was rare to see a person with a smile on his face, and the TV in the electrical appliance store was scrolling to broadcast financial news, and every small fluctuation affected the nerves of the audience.

It is estimated that in the entire Xiangjiang now, only Zhang Junyi can stay at home safely, always maintaining a good attitude, and experiencing all this as a spectator when others are uneasy.

In fact, if a country has a stock market crash or financial crisis, how harmful is it and what kind of consequences will it generally lead to?

Once a country has a stock market crash, the stock market itself has suffered serious damage, and no stock market crash is an exception.

To say that the reason why the stock market crash will cause so much damage to the stock market is determined by the essential characteristics and operating mechanism of the stock market.

In essence, in Zhang's view, the stock market is actually a credit market. Investor confidence is the driving force that supports the development of the stock market. The stock market crash has hit investor confidence, leading to excessive speculation such as fraud, violations, insider trading, and market manipulation, which has made investors feel deceived and afraid to enter the market.

If investors do not enter the market, the market will lack demand, and the stock market without demand will not be able to develop and grow, and the fund-raising function and resource allocation function of the stock market will be hindered. Therefore, the stock market crash is a negation of the positive significance of the stock market and the great enemy of the development of the stock market.

To say how much the stock market economic loss is a very intuitive indicator to measure the destructive power of the stock market crash.

What can be called a stock market crash is first manifested in serious economic losses in the stock market. The economic loss of the stock market can be reflected in two aspects: first, the size of the decline in the stock price index. The greater the decline, the greater the economic loss. The second is how much the market value of the stock is lost. The loss of a stock's market capitalization is affected by a combination of the decline in the stock price index and the size of the market. The decline is large, the market size is large, and the economic loss of the stock market is also large.

The securities market and the financial market are inextricably linked, as is the case in countries where banks and securities are integrated, and the same is true in countries where banks and securities are separated. This is not only because the funds in the securities market come from society, which reduces the sources of funds from banks, but also because much of the funds in the securities market come directly or indirectly from banks.

The stock market crash has led to a major loss in the market value of stocks, which will inevitably make it impossible for the funds flowing into the stock market from the banks to flow back to the banks in the original amount; the economic recession caused by the stock market crash and the collapse of industrial and commercial enterprises will also indirectly affect the banks, resulting in an increase in the banks' non-performing assets; in countries or regions where the stock market has become internationalized, the stock market crash will lead to a reduction in investment opportunities in the stock market, which will promote the outflow of funds, trigger currency depreciation, and also impact the banks and the foreign exchange market.

In short, a stock market crash can trigger a financial crisis. For countries and regions where the financial crisis directly led to the stock market crash, the occurrence of the stock market crash will exacerbate the financial crisis.

Therefore, with the occurrence of the stock market crash, the ensuing greater crisis - the currency crisis will also follow.

Second, the stock market crash and its severe economic consequences will eventually be transferred to people's lives, which is one of the root causes of social unrest.

First, every stock market crash exacerbates the gap between the rich and the poor. This is because the market value loss of the stock market crash is not evenly distributed to every investor, and only those who follow up at a high level and cannot escape in the stock market crash are the biggest victims. Selling at a high level has been a blessing in disguise and has become a beneficiary of the stock market crash, and the initial loss of fleeing in the stock market crash is also smaller. This has greatly exacerbated the polarization of investors' losses, with some becoming millionaires, tens of millions, or even billionaires.

Many more have lost their money and lost their families. Second, a direct consequence of the recession exacerbated by the stock market crash is rising unemployment, lower incomes, and lower living standards, which can also cause social unrest. In addition, the stock market crash will exacerbate the financial crisis, cause currency depreciation, and trigger inflation, which will directly or indirectly lead to chaos in people's social life and intensification of social unrest.

The so-called currency crisis is a phenomenon in which the exchange rate changes beyond the tolerance of a country.

In the early 1980s, the future of Hong Kong and the stock market crash caused by the September 24 incident some time ago shook people's confidence in the Hong Kong dollar, which led to the continuous depreciation of the Hong Kong dollar.

Zhang Junyi remembers that the same phenomenon occurred in Xiangjiang in his previous life, until September next year, when there was a Hong Kong dollar crisis, and the Hong Kong dollar fell to a record low of 9.6 Hong Kong dollars to 1 US dollar. In order to save the financial system of Hong Kong, the Hong Kong government announced the linked exchange rate system on October 15, 1983, and the Hong Kong dollar was pegged to the US dollar, and the exchange rate was set at 7.8 Hong Kong dollars to 1 US dollar.

A strong manufacturing industry and a rational industrial structure are the solid foundation for preventing financial turmoil. Serious deficiencies in the industrial structure are one of the causes of the economic crisis in many countries.

Not only in the current era, but even in the 21 st century, at least nine of the ten richest people in Hong Kong made their living from real estate.

This kind of defect is not obvious in normal times, but when it comes to a critical moment, such as the current stock market crash, you can realize how terrible the harm is bringing.