It can be said that Hong Kong has adopted a linked exchange rate system in monetary policy, which is an inevitable choice.

Although Hong Kong is listed as one of the "Four Asian Tigers" in terms of economic development, its own "hardness" is an unavoidable shortcoming. The value of the Hong Kong dollar can only be reflected in the form of "sugar daddy".

Between 1935 and 1972, the Hong Kong dollar was pegged to the British pound. But as the UK's economic power has weakened, the use of the pound as the backbone of the Hong Kong dollar has become increasingly unreliable.

After the global energy crisis of the 1970s, the pound began to float freely in June 1972, and the Hong Kong dollar became pegged to the US dollar two years later. It was initially HK$5.65 to US$1, then changed to HK$5.085 to US$1 in February 1973.

However, after entering 1974, the weakness of the US dollar became more and more obvious, so the Hong Kong dollar changed to free float in November 1974.

This was a timely move, and it was very successful at first. However, the essence of Hong Kong's monetary policy structure, which essentially relies on the value of the currencies of powerful countries, has not changed, and at the same time, free floating has led to the absence of a clear monetary policy objective, so the Hong Kong economy has inevitably entered a period of turbulence.

From a macro point of view, since 1977, problems such as trade deficits, currency depreciation, inflation, and so on have begun to emerge.

In the 1980s, when the future of Hong Kong had to be faced, the ensuing property bubble and stock market crash, as well as the shaking of Hong Kong people's confidence in the Hong Kong dollar, pushed the Hong Kong dollar to depreciate sharply.

Therefore, the villain in "Senior Sister's Heroic Money Empire" deliberately studies the loopholes of Xiangjiang's monetary policy. Ambitious to control the Hong Kong dollar. There is a certain factual basis for this.

Otherwise. The elite class of Hong Kong will not be eager for this movie, and even the Hong Kong government will jump out to clarify that it is not a corpse vegetarian.

The newly released Hong Kong Linked Exchange Rate System is a type of fixed exchange rate system, under which the Hong Kong dollar is pegged to the US dollar at an exchange rate of HK$7.80 to US$1.

However, the Hong Kong Linked Exchange Rate System also has its own characteristics that are adapted to the local area, which is quite different from other fixed exchange rate systems.

Under normal circumstances, the Hong Kong government or the central bank would not actively intervene in the foreign exchange market, i.e. directly affect the exchange rate by controlling the supply and demand of the Hong Kong dollar. Rather, in the form of the currency board system, the three note-issuing banks in Hong Kong -- Bank of China, HSBC and Standard Chartered -- were allowed to carry out arbitrage activities, so as to achieve the goal of maintaining exchange rate stability.

To be precise, the exchange rate of HK$7.8 to US$1 actually only exists at the time of trading of Certificates of Indebtedness between the three note-issuing banks and the Hong Kong Monetary Authority, and the real market exchange rate is still determined by market forces, and it is not absolutely based on HK$7.8 to US$1.

For example, suppose that investors buy Hong Kong dollars when there is an inflow of external funds. The market exchange rate of the Hong Kong dollar appreciates to HK$7.5 to US$1, and the note-issuing bank can hold the US dollar to the HKMA at a linked exchange rate of HK$7.8 to US$1. The purchase of Certificates of Indebtedness and the issuance of Hong Kong dollars can make a profit of HK$0.3 for every US$1 exchanged, thereby expanding the Monetary Base of Hong Kong.

This process of monetary expansion will increase the money supply in the market, forcing interest rates to fall, which will lead to capital outflows and the exchange rate of the Hong Kong dollar market returning to the level of the linked exchange rate.

For example, if the market exchange rate of the Hong Kong dollar depreciates to HK$8 to US$1 when a large amount of funds flow out of Hong Kong, the note-issuing bank can exchange the linked exchange rate of HK$7.8 to US$1 from the HKMA with the Certificate of Indebtedness, and make a profit of HK$0.2 for every US$1 exchanged, thereby shrinking the monetary base of Hong Kong and rising interest rates, attracting external capital inflows with the aim of earning interest, and bringing the market exchange rate of Hong Kong dollars back to the level of the linked exchange rate.

This trading is a monopoly of three note-issuing banks, which compete with each other to ensure that they intervene in the event of fluctuations in the Hong Kong dollar market. Defend the market exchange rate of the Hong Kong dollar against significant deviations from the linked exchange rate.

Tang Huan, who is kind-hearted, is equivalent to enjoying the 1.8 Hong Kong dollar price difference benefit of this automatic adjustment mechanism in advance.

Although it is inevitable that some people will see Tang Huan's net income of hundreds of millions of Hong Kong dollars when he changes hands, but in the face of this vision and courage, he will not be convinced.

And because the amount is limited, it will not make the Hong Kong government unbearable and lift the table, coupled with the righteousness of standing up, the Hong Kong government also recognized the legitimacy of Tang Huan's capital operation, and even took the initiative to consider the award for him, of course, it is not the highest level of GBE, and he is embarrassed to show his hand.

After learning of this dynamic, Tang Huan hurriedly entrusted Zhou Mi as a representative and politely refused this arrangement-Brother is not uncommon for your awards, and it may be interpreted and hyped into something, it is simply adding a lot of noise out of thin air, let's do something practical.

In Tang Huan's view, the design of the Hong Kong Linked Exchange Rate System can be described as well-intentioned, but the value of the Hong Kong dollar still needs to be reflected by hugging the lap of a strong country's currency.

In order for the Linked Exchange Rate System to function properly, Hong Kong must maintain large foreign exchange reserves, which are theoretically sufficient as long as they are equivalent to the monetary base, but in order to avoid potential risks and maintain the stability of the Hong Kong dollar, Hong Kong's foreign exchange reserves must be several times higher than the theoretical value.

This is also a major reason why the foreign exchange reserves of Xiangjiang, the land of projectiles, are often among the top ten in the world. However, the Hong Kong linked exchange rate system is not perfect and impeccable, otherwise it would not have been tossed by Soros from the inside during the Asian financial crisis.

However, it is undeniable that the Hong Kong Linked Exchange Rate System is indeed the most suitable solution at present.

As a result, Tang Huan instructed Media Asia TV to do a few more episodes to help the public interpret this monetary policy and stabilize people's hearts.

In addition, in order to boost the morale of Hong Kong, which has been hit hard one after another, the first Hong Kong International Marathon, sponsored by Heung Kong Telephone, has begun to build momentum in full swing.

At the same time, the Disney World Records, which was won by Zhuang Menghua, has begun to operate in Greater China, with a branch in Xiangjiang, and has set its sights on this sporting event.

Setting a Guinness Book of Records is not as difficult as you might think, the first key is to choose a suitable project that can be measured.

The first Hong Kong International Marathon will not be held in a rigid and serious manner, the athletes will have professional goals, and the enthusiasts will also have the pleasure of participating.

The organizing committee is planning to apply for a marathon runner called "the world's largest number of marathon runners connected together", and the scale of 66 people has been prepared, which has attracted the most attention from the Hong Kong media because of its meaning of "solidarity and assistance". (To be continued.) )