As previously introduced, Peregrine Group has provided an unsecured loan to an Indonesian bus company seeking to underwrite a high-yield bond for the company.

However, due to the lack of a careful analysis of the company's financial situation, the bus company was unable to issue bonds in the face of the intensifying financial crisis in Southeast Asia, which put the company's capital turnover in a difficult situation, and the financial crisis suddenly appeared.

In fact, Peregrine has sold up to $2.1 billion in high-quality assets in order to solve the financial dilemma.

In addition, it also asked for help from various sources, first announcing the introduction of Zurich Center Group as a strategic shareholder, and Zurich Center Group subscribed for redeemable convertible preferred shares with an amount of 200 million US dollars;

It was then announced that First Chicago Bank had subscribed for $25 million of Peregrine redeemable convertible preferred shares with a face value of $25 million on the same terms as the Zurich Center Group.

Originally, this had relieved Peregrine, but just after New Year's Day in '98, the Asian financial crisis worsened, and the value of the Indonesian rupiah against the US dollar fell sharply again. Against this backdrop, on 9 January 1998, the Zurich Centre Group and the First Bank of Chicago of the United States respectively announced the cancellation of the redeemable convertible preferred shares that had subscribed for Peregrine, which led to the deterioration of Peregrine's financial position.

In the midst of all the jaw-dropping, Peregrine is facing a large number of customer redemptions. When a note bounced, Peregrine had to suspend its business and could only apply for voluntary winding-up......

Soon after, the Hong Kong Securities and Futures Commission announced that it had issued a restriction notice to Peregrine, prohibiting it from dealing with assets. Its listed company, Peregrine Investment, has been suspended from trading on the Hong Kong Stock Exchange for an indefinite period of time......

What does that mean?

Judging from Peregrine's asset structure, in fact, it still has a large number of assets, and it has not reached the level of insolvency at all.

However, the sharp depreciation of the currencies of Southeast Asian countries and the overexpansion of Asian bond markets have put Peregrine in financial difficulties. These assets simply cannot be cashed out immediately.

A large number of customers continued to redeem, resulting in Peregrine's cash flow drying up. Due to the failure of the rescue troops, there was a bounce all of a sudden.

Bounce tickets, commonly known as bad checks. Hong Kong's financial laws are quite strict when it comes to bounced tickets. As soon as it appears, it is immediately obliterated - liquidation settlement!

Unlike in the mainland, bad cheques have nothing to do with it, and can be discussed with banks and customers. Therefore, there is also room for triangular debt and old people to survive.

Hong Kong is not like that, even if the company has a net worth of 100 million, as long as there is a blank check for money, the account will be frozen immediately, and the company will be forced to go bankrupt. It's not sentimental at all.

Therefore, Peregrine suffers in this place. It's like a sudden death.

……

Such a sudden death, of course, caused a sensation throughout Hong Kong. The stock market plummeted again, and everyone even panicked - even a powerful big investment bank like Peregrine collapsed? Without warning at all, a big hole was poked out all of a sudden? Who can rest assured of this? I don't know if there are other big holes in those big companies in Hong Kong now, do we let Hong Kong citizens fill in the holes?

One by one, it's really too surprising. However, in the midst of a panic, Brother Yuan, who had not been seen for a long time, once again made a big fuss.

There happened to be a Hong Kong talk show interviewing the latest Cannes Palme d'Or film "Millionaire in the Slums", the famous director Yuan Ge.

“…… Thank you for sharing your creative experience. Win honor for our Huaruying. ”

"It's nothing. The main reason is that Hong Kong has a good creative environment, and the filmmakers here are first-class. It is precisely because the background of "Slums" is the Kowloon Walled City that it can be filmed in its original form. There are also excellent performances from several actors. ”

"Then you, as a director, must have taken the first credit?"

"Huh! It's not that exaggerated. Li Yuan smiled, "Actually, those artistic creations, such as writing books and making movies, I am a third-rate." Computer IT technology, I'm a second-rate. My truly top-notch skills are ancestral hunting skills. That is, the Revenant, the wilderness tracking. It's a pity that I've been living in the city, and the ancestral craft has been abandoned. Alas——! ”

"Huh? What about your business? ”

"That's just not going to flow. Nothing to boast about. ”

"Huh?" The hostess was already as charming as silk, and she liked Brother Yuan's beard the most, "Yuan Shao, are you really the best at hunting?" ”

"You don't believe it? My ancestors also fought tigers, and there are tiger skins handed down at home. Li Yuan closed his eyes and blew blindly, "It's really not blowing, it's not forced by life, who wants to leave their hometown?" ”

"Ahem, ahem. Giggle——! The hostess laughed and trembled.

Is there such a life to force it? Is there such an uproot? Can't change one? From any point of view, Brother Yuan is a super winner in life.

But this kind of entertainment, my favorite is this kind of beard.

"Yuanshao, what about the festival between you and Mr. Wenfu?"

"People who are not jealous are mediocre!" Li Yuan seemed disapproving, "So what I hate the most is those so-called experts." A bearded jacket at night. Waste media resources to gain fame and fortune for yourself. ”

"Uh...... You alright? Mr. Wenfu has always been outspoken, and he is still relatively popular. The hostess said in a rambling defense. After all, Wenfu still has the label of "Hong Kong conscience", and he is also a guarantee of ratings in the stock review program.

Li Yuan didn't care about the hostess's words: "Hehe, what's the use of welcome?" Isn't Hong Kong's stock market still a mess by this group of people? ”

"Uh......" The hostess was even more speechless, "Mr. Wenfu is a stock commentator, and the stock market should have nothing to do with him...... Right? ”

Again, here's the entertainment. The hostess wanted to bring the topic back as soon as possible.

Unexpectedly, Li Yuan seemed to be talking about sex: "Why doesn't it matter?" Under the heavy snowfall, not a single snowflake is innocent. ”

"Uh......"

"It seems that I heard the latest news that a family named Peregrine is also bankrupt, right? It has brought great damage to us in Hong Kong! ”

"Uh...... There seems to be such a thing. The hostess looked embarrassed. Come on! We can't grab the content of financial programs here? Please, if you have less fate, just talk about some gossip in the entertainment industry, and it doesn't matter if you make some scandals?

"Did you see that? Even Peregrine was bankrupt by them? Hong Kong's economy eats jujube pills! ”

"Uh......"

"And those regulatory departments, the commercial crime investigation department of the police department, etc., put a dog up, it is more useful than you! It's better to buy a piece of tofu and crash to death! ……”

……

Li Yuan's big remarks in the show once again caused a sensation in Hong Kong. And it has become the front page headline of major media.

Because it's so exciting. The foaming at the mouth of the public scolding frothed indiscriminately, scolding almost all relevant organizations in Hong Kong.

Don't, this time, Li Yuan's scolding won a round of applause. Finally found a scapegoat to vent a thing or two.

And those institutions were stunned by the scolding. Fate is less, we haven't offended you, huh? How can you spew blood? Obviously, Peregrine died by himself, how can he blame others?

So those agencies immediately made urgent public relations. They sent the commissioner in charge of dealing with the Peregrine incident - Zhang Muhai.

“…… We attach great importance to the doubts of the general public. We will also rigorously review the regulatory process and have not found any violations......"

“…… Peregrine's bankruptcy liquidation was mainly due to loopholes in their internal management, which led to the occurrence of bounced tickets. We will also strictly investigate in accordance with the law and will give a satisfactory answer to the general public......"

“…… Procedurally, we've done everything we can. And in strict accordance with the laws and regulations, Hong Kong is a place where the law is spoken, and we will ensure the health and operation of this Far Eastern financial center..."

“…… We respect his freedom of expression. I hope that the misunderstanding can be eliminated and no longer mislead public opinion......"

Zhang Muhai's words are to prove that he is not wrong, and what he abides by is procedural justice. And I hope Li Yuan won't be like a mad dog, who bites whom, right? Can you give a face, a good word?

Obviously, a conventional approach like this will not work against a villain.

For example, the MDAM of CCB, she is not a good bird, knowing that Li Yuan will make trouble. That Commissioner Zhang Muhai is still too real?

Sure enough, these words were immediately met with a head-on attack: "...... Now look at the countries around Hong Kong, Southeast Asia? And Japan and South Korea? Which one is not stormy and about to bankrupt the country? Under such circumstances, Hong Kong can still be as stable as Mount Tai, shouldn't it be decided immediately? ……”

“…… I found out that they grew up eating grass. Strike when it's time to strike, without the slightest hesitation. The big ship in Hong Kong is encountering a storm and typhoon, so are they sailors still commuting to and from work? Of course, just deal with this kind of emergency......"

Zhang Muhai also couldn't bear it anymore: "...... Remind some people not to say these layman's words. Didn't we do something? Are we all very professional? I pledge that we will try our best to avoid a shock to Hong Kong's economy......"

Li Yuan was also not to be outdone: "What is the major? Is it a very professional audience to watch the ship sink? ”

"Huhao! Then you teach me, how to save Peregrine? This is not the fault of our regulatory authorities, and we can't blame us for the mistakes in the management of their companies. ”

"Joke! As far as I know, Peregrine will be able to maintain operations as long as it has cash flow. At least the interests of their hundreds of thousands of shareholders can be protected, right? Do you not work after collecting so many taxes? It is completely possible to nationalize Peregrine and wait until it is rescued, and then privatize it. In this way, we can minimize economic turmoil and protect the interests of Hong Kong citizens......"

"I don't want to be ugly, what kind of bad idea is this? How can the money collected from taxes, which belongs to all Hong Kong citizens, be used as a bailout for a private investment bank? If it is all so fake, it will harm the interests of other unrelated citizens. That's what undermines Hong Kong's status as a financial center......"

"Do you know what a financial center is? To make a fortune together with everyone, that is called a financial center. Let everyone go bankrupt together, and the laws you make can be used to wipe your ass, and it will still become a garbage heap......"

"It's funny, that fate is just messing around. He didn't even welcome the most basic economic common sense..."

"I didn't? My Han Palace has an investment bank, and I once saved the Asian Exhibition. I'm more experienced than you guys! So don't make excuses. They're a bunch of trash! Rubbish! There's nothing wrong with my words - take a dog up and do it better than them! ”

“……”

……

All of a sudden, the two sides fought fiercely in the air, arguing in the dark. All Hong Kong citizens were stunned.

In fact, this is a battle of lines – procedural justice and factual justice.

Procedural justice should be known. Zhang Muhai abides by this principle.

Yes, there is nothing inherently wrong with procedural justice, especially in government agencies and the judiciary. And in the daily handling of affairs, as long as procedural justice can be guaranteed, it can always be reassuring, and things will never be messed up.

But Li Yuan's factual justice, to put it simply, is - hurry up and obey the power!

If there is a major emergency, can it still be slow down the procedural justice? It is necessary to be flexible and eliminate the crisis as much as possible.

But now there is a very serious problem - Hong Kong has just returned to the motherland.

In the past, almost all of those institutions in Hong Kong were affairs officers, not decision-makers, and they certainly did not have professional ability. But when I encountered an emergency, my eyes were black all of a sudden.

The other thing is to get things done.

You should be able to understand this mentality - they are in charge, so they have to follow the procedures more strictly, and they can't change even the slightest.

Therefore, when the Peregrine incident occurred, Li Yuan's proposal of "nationalization" was simply a flood beast, almost crushing Zhang Muhai's faith.

But what about Li Yuan's factual justice?

When there is really a major crisis, what kind of broken procedures are in charge? Is there anything that breaks the law?

Just like the Enron incident in the United States later, as well as the subprime mortgage crisis in 08, there was a big hole of tens of trillions of dollars, didn't Eagle Sauce inject capital into financial institutions in the same way? And to make Fannie Mae and Freddi, too big to fail?

That's what happens in a hurry. No, procedural justice is not observed, but it must not be extreme, and it still depends on the priority.

The economy is about to collapse, do you still care about the process? That's what it means.

This is a mature government, a mature move.

Therefore, the relationship between the two is not antagonistic, and there is no right and wrong. In this raging financial turmoil, we must use all possible means to truly reduce the losses of Hong Kong's economy!