The Governor of Hong Kong, still standing tall in the storm, has its financial markets covered in bruises. At this time, the SAR government has realized that although it has defused several shocks from international speculators, a more violent storm has not yet come, and the SAR government must take tougher measures and take a more proactive attitude to meet the challenge. It is also at this time that Soros, who has been waiting for the best time, is constantly accumulating energy and preparing to launch the final blow against the Governor.

At this time, the SAR government has already communicated with the Chinese government, and although it has strong support on the surface, it has secretly been contacting well-known entrepreneurs in China to prepare to help the SAR government, and even at this time, funds have already entered the SAR government's capital account.

Several European and American investment banks and hedge funds simultaneously attacked the Governor's foreign exchange market, the stock market and the Hang Seng Index futures market, and frantically sold Hong Kong dollars and Hang Seng Index futures in the Governor. The "elite troops" are the Wall Street speculator George? Soros's Beacon State's largest hedge fund, the Quantum Fund.

Back to August 5th:

On August 5, international speculators sold more than 20 billion Hong Kong dollars in one day. The Governor's Monetary Authority (MAA) has reversed its past passivity and used the Governor's fiscal reserves to absorb the entire amount, stabilizing the foreign exchange market at HK$7.75 per Franklin, and the interbank market call interest has only increased slightly. Luo Tiancheng did not sell shares today, but only slightly absorbed some stocks at a low level.

On 6 August, speculators sold off more than HK$20 billion, and the Hong Kong Monetary Authority (HKMA) made a new move, not only collecting all the Hong Kong dollars as ordered, but also depositing the Hong Kong dollars absorbed into the banking system of the Governor of Hong Kong, which played a role in stabilizing the interbank interest rate and preventing the stock market from falling due to the increase in the interest rate.

According to the plan of Soros and others, they first shorted the Hong Kong dollar in the foreign exchange market, forcing the Hong Kong Governor's Monetary Authority to adopt the old routine of raising interest rates and suppressing the stock market. As interest rates rise, the stock market is bound to fall. HSI futures will also fall in tandem, and then speculators can short the HSI futures at a lower price in the futures market, and both the foreign exchange market and the stock market will make a profit. The drunkard's intention is all in the Hang Seng Index Futures.

At this time, the Chinese government had already communicated with the SAR government, and although it was only showing solidarity on the surface, it had secretly acquiesced in the use of foreign exchange reserves by the SAR government.

On August 7, the Chief Executive of the Hong Kong Special Administrative Region (HKSAR), Tung Mou-wah, spoke to reporters, saying that maintaining the linked exchange rate is the most unswerving policy of the SAR government. "If anyone thinks we're going to waver, they're wrong! We absolutely have the ability and determination to maintain the linked exchange rate, and we will certainly be able to do so. Maintaining the linked exchange rate will ensure the long-term economic viability and interests of the Governor, and the short-term pain will be acceptable. "Dong Mouhua is quite tragic.

The Chief Executive of the Hong Kong Monetary Authority, Mr Yam Wai-kong, has been jokingly called "any move" by the media circles, which means that whenever financial speculators are about to kill them, the only move of the HKMA is to raise interest rates and increase the cost of financial speculation, so as to resist the sniping of speculators and maintain the linked exchange rate.

The side effects of this law are becoming more and more obvious, and it is too lethal to the stock market and property market. A fall in the Hang Seng Index to 6,500 points would be the minimum that the banking system can afford. According to experts' analysis, if the stock market and property market fall further sharply, banks will inevitably sell off a large number of relevant collateral assets when they have no choice, thus setting off a vicious wave of sell-off in the stock market and the real estate market, and some small and medium-sized banks may even face the fate of bankruptcy because of too many bad debts.

Once a bank begins to fail, the Governor's banking system will inevitably suffer a fatal chain blow.

If international speculators like Soros are allowed to win the hard-earned money of the Governor of Hong Kong again and again, no matter how strong the Governor's economic strength is, it will one day be emptied. The Hong Kong Governor's Government finally had no patience and was determined to "wage war" against the speculators.

The HKMA first openly argued with international financial speculators in the foreign exchange market, and for every plate of Hong Kong dollars sold by the speculators, the HKMA ate a plate of cheap Hong Kong dollars.

The HKMA took the initiative to use the HKSAR Government's financial reserves to undertake nearly HK$50 billion of sell orders from speculators, and then re-deposited the Hong Kong dollars bought back into the bank.

In this way, the rise in the call rate will be suppressed and the damage to the economy will be reduced.

According to the Monetary Authority, if the HKMA wants to buy back Hong Kong dollars from Franklin in the foreign exchange market, it must buy them at a fixed exchange rate of 1 Franklin to HK$7.8.

This time, he bought all of them at the speculator's selling price of HK$7.75, causing the speculators to shout unfairness.

Yam said that the purchase of Hong Kong dollars was not for the HKMA itself, but for the Hong Kong Governor's Government, i.e., the State Treasury, and therefore did not violate the strict regulations of the HKMA.

In order to cope with the economic recession, the Hong Kong Governor's Government adopted an expansionary fiscal policy and increased the budget deficit. Every summer, when the treasury depletes its Hong Kong dollars, the SAR government has to exchange Franklin for Hong Kong dollars in the money market.

At this very time, financial speculators sold large sums of Hong Kong dollars, and the HKMA naturally bought cheap Hong Kong dollars for the HKSAR Government.

Just like a martial arts master, one party underestimates the internal strength of the other party, causing its own internal strength to be continuously sucked away and resolved by the other party.

By the end of July 1998, the Governor's foreign exchange reserves stood at 96.5 billion Franklins, the third largest in the world. In second place is China, with about 140 billion Franklins.

By 4:30 p.m. on Friday the 7th, the Hong Kong Governor's Monetary Authority's small victory came to an end temporarily, and the exchange rate stabilized at the level of about HK$7.75 per Franklin. Because the extent of the setback in the stock market is not large, and the decline in the futures index is not large, speculators have returned in vain.

But they didn't stop there. The next target is the securities market. The Hang Seng Index fell 212 points, or 3%, for the day due to the poor performance of some blue-chip stocks that have already announced their interim results. In the following 7 to 12 trading days, the Governor continued to adopt the method of absorbing Hong Kong dollars to stabilize the interbank interest rate and thus achieve the goal of stabilizing the stock market.

However, due to speculators' aggressive shorting in the stock market, the Hang Seng Index eventually fell to a low of around 6,600 points, down almost 8,000 points from a year ago, and the total market value evaporated by HK$1.8 trillion in a year.

At this time, Soros is engaged in a battle with the governor of Hong Kong, and no one can stop, and they can't stop.

"Juggernaut, this is an invitation sent to us by the port government, and since we can't find the juggernaut, we have to forward it to us through the Li family and invite us to the party on Saturday." On Friday night, even on August 14, Luo Xingwen, who was already in the middle of Level 1 at this time, came to the room with an invitation card and said respectfully to Luo Tiancheng, who was studying strategies.

Luo Tiancheng took the invitation with a smile and saw the address: "Hehe, the Hong Kong Governor's Government can't hold its breath, and next week is the time for a decisive battle, so I naturally want to let all enterprises help the Hong Kong Governor's Government." Tell Uncle Li that I will attend on time. ”

"Yes, Juggernaut." Luo Xingwen respectfully exited the room.

On Saturday afternoon, Luo Tiancheng came to the Li family's mansion, and now Luo Tiancheng does not need to communicate in the Li Mansion, he can go in directly, and when he saw that Li Xiangjiang was still at home, he asked curiously: "Uncle Li, aren't you going to the party today?" ”

"Go, it's not waiting for you! I'm here so late, I'll introduce you to a few friends in a moment. It also helps you. Li Xiangjiang said with a smile.

"Let's go. I'm your relative, don't reveal my identity. Luo Tiancheng admonished.

"You know, you know, you've been low-key for so long, and you won't break your rules." Li Xiangjiang responded with a smile and took Li Zeju and Luo Tiancheng out.

When Luo Tiancheng came to the meeting place, he did not show the invitation, there was Li Xiangjiang, the Hong Kong governor, who was there, how could anyone come to check.

"Brother Li, I didn't expect you to come in person." Zeng Mouquan saw the person coming and said happily, more confident about tonight's gathering. People who knew Li Xiangjiang around came up to say hello.

"Brother Zeng, it's been hard work recently, and our business is relying on you to support you!" What Li Xiangjiang said was not a lie, and when he saw that the people around him responded one after another, it was clear that under the nest, the eggs would be attached! No business has been spared from this financial crisis.