Hong Kong Movies: You Hongxingzi, what the hell is the charity king?

Chapter 866 "864" Soros: Why? Why are Hong Kong stocks so hard to fall?

Influenced by public opinion,
On July 21, the Hang Seng Index opened 120 points lower, falling directly below 9800 points.

Just past the halfway point of the morning session, international speculative capital intensified its short-selling efforts, with heavyweight stocks such as HSBC Holdings, Standard Chartered Bank, Hang Seng Bank, Wharf Holdings, China Fortune Land Development, and Hung Kai Properties being heavily sold off, causing their share prices to plummet.

Fearful citizens, fueled by public opinion, sold off their stocks en masse...

At the close of trading in the afternoon, the index stood at 9750 points, down 185 points for the day.

On July 22, the downward trend continued.

Early in the morning, the media began reporting that in the international foreign exchange market, the Hong Kong dollar exchange rate against the US dollar once again touched the weak side of the exchange rate guarantee of 7.76.

Market panic has spread to the stock market, with the Hang Seng Index continuing to fall, closing at 9600 points.

at this time,

The atmosphere in the Soros Fund Management office began to lighten.

Over the next three days, from July 23 to 25, the stock market decline intensified.

23日跌到 9520点；24日跌到9450点；25日跌破 9400点，最终收于 9382点。

In just one week and five days, the Hang Seng Index dropped a full 500 points!
This figure brought cheers from the Soros Fund Management Company.

Rodney Jones smiled, took out his phone, and dialed Soros's international number in New York:

"Boss! Good news!"

"The Hang Seng Index has fallen to 500 points! It's currently closed at 9400 points!"

Soros's approving voice came from the other end of the phone: "Very good, Rodney, keep up the momentum, I want to see it fall below 9000 points by the end of the month."

"And our target is 4000 points!"

“Yes, sir! I certainly won’t let you down!” Rodney Jones nodded vigorously. After hanging up the phone, he turned to face everyone in the office and clapped his hands: “Did you hear that? The sir is very satisfied! Tonight is Friday, everyone gets the day off to celebrate! The company will cover all expenses!”

"awesome!"

"Thank you, boss!"

"Oh yeah!"

The office erupted in cheers, with people giving each other high-fives.

In their view, the defenses of the Hong Kong stock market were gradually collapsing, and they had finally torn a large hole in it. Next, it would rush towards the target of 4000 points.

Rodney Jones looked at the cheering crowd before him, then at the night view of Hong Kong Island outside the window, a confident smile playing on his lips:

"Hong Kong Island... is nothing special."

……

……

August 28th.

new York,

The air conditioning was blasting in the top-floor conference room of the Soros Fund Management Group, but it couldn't quell the heat and excitement inside.

Outside the floor-to-ceiling windows lies the bustling Manhattan skyline, while inside, a group of "hunters" who are stirring up Asian financial markets are gathered.

Soros sat at the head of the long table.
The other representatives were from more than ten international speculative funds, including Tiger Fund, Robertson Hedge Fund, and European Emerging Markets Fund.

"Everyone,"

Soros looked around.
"The battle in Southeast Asia is over, and the profits we made in Thailand, Indonesia, and South Korea are gradually returning to us..."

"Now, it's time for the last target—Hong Kong Island!"

He gestured to his assistant to play the PowerPoint presentation, and the Hong Kong Hang Seng Index chart for the past month immediately appeared on the screen: from over 11000 points in the middle of the month to 9400 points...

"In July, we completed the initial planning."

"The Hong Kong dollar exchange rate repeatedly touched the weak side of the exchange rate guarantee, and the Hong Kong Monetary Authority depleted nearly US$10 billion of its foreign exchange reserves."

"The stock market has fallen below 9400 points..."

"If we maintain this index until the end of August, we can also earn more than 10 billion."

"But that's not enough!"

He paused here, his eyes sharpening:

"I believe the time for a final offensive is approaching."

"I plan to launch a full-scale attack on Hong Kong Island on August 5th!"

The words fell,

Smiles appeared on everyone's faces in the meeting room:

"Has it finally happened?"

"it is good!"

"I can't wait."

Soros continued:
The final offensive will proceed in two phases:

"First, in the foreign exchange market, a single-day sell-off of no less than HK$150 billion completely breached the Hong Kong Monetary Authority's intervention capabilities..."

"Secondly, in the stock market, a concentrated sell-off of 33 heavyweight stocks, including HSBC and Hang Seng Bank, is planned, with the goal of driving the index below 8000 points within five days..."

(Image: Real History - Decline in Total Price)

Next,
All the managers of the speculative funds began to discuss the plan in more detail.

2 hours later,

The plan was finalized.

at this time,

A waiter carrying champagne entered the conference room.

Place glasses of champagne on the table in front of everyone.

Soros raised his champagne glass to a toast:

"Everyone!"

"Cheers to the impending 'collapse' of Hong Kong Island, and to the HK$500 billion in profits we're about to make!"

Everyone raised their glasses.
"cheers!"

The crisp sound of glasses clinking echoed in the conference room.

That was the sound of celebration, the sound of wealth.

……

……

The next day, on Hong Kong Island.

On the sea behind Lantau Island,

Guan Zuyou went fishing with Financial Secretary Tsang Sir and Hong Kong Monetary Authority Inspector Yam Sir.

In the distance, the new airport has already begun operation, with a plane landing every few minutes, keeping the airport constantly busy.

Three fishing rods were cast into the sea.

With huge panda eyes and a haggard look, Mr. Ren was clearly exhausted from all the recent ordeals.

Inspector Tsang grumbled, "In the past two days, the number of short positions in the futures index has increased by 2, which means that 100 billion HKD has come to Hong Kong Island."

"These international speculative funds really think Hong Kong Island is their gold mine, which they can mine at will."

Mr. Ren's lips twitched: "But I'm really a little guilty... Over 1000 billion, plus other things, it should be 2000 billion. I'm really afraid I can't handle it."

Inspector Tsang: "Then let's not wait any longer. Tomorrow is Monday, let's start taking back the lost ground."

Kwan Cho nodded: "Recapturing lost territory is possible, but we need to take it slowly... I suggest that the economic and financial report for Hong Kong Island in the first half of the year be released later. The information I have is that they will launch their final offensive on August 5th."

Mr. Zeng had a sudden inspiration: "You mean you plan to release the financial report on the 5th or 6th?"

Guan Zu: "That's right."

What were the financial results for Hong Kong Island in the first half of 1998?

Guan Zu has already seen it.

Its data can only be described as—absolutely amazing!
The main reason is that more than 150 companies in Beijing and Shanghai have rapidly expanded their scale by leveraging their low labor costs and the huge population market of Southeast University.

For this reason, the first half-year financial report was released on July 20, but it has been delayed and not published.

Inspector Zeng laughed heartily: "Alright, it's settled then!"

…… ……

7 month 27 day.

on Monday.

Hong Kong stocks will remain open for trading.

The stock market hasn't even opened yet, but public opinion is already circulating.

The front page of the Sing Tao Daily featured a headline in bold black Song typeface: "Foreign exchange market hit again! Hong Kong dollar exchange rate touches 7.76 weak side of the exchange rate guarantee for the eighth time last night."

"This is the fourth time this month that the Hong Kong dollar exchange rate has approached this level."

"The Hong Kong Monetary Authority intervened in the market last night, selling US dollars and buying Hong Kong dollars. Preliminary estimates indicate that the intervention exceeded US$10 billion, but the selling pressure in the market has not subsided..."

Professor Chen, an economist at Island University of Hong Kong, stated that the selling pressure from speculative capital has intensified significantly, and the Hong Kong Monetary Authority's continuous intervention has already depleted nearly US$150 billion of foreign exchange reserves. Whether the authorities can withstand the pressure remains to be seen...

On the other hand, the South China Daily's front-page headline was even more direct: "International speculative capital intensifies short selling! Hong Kong dollar exchange rate in grave danger."

"Before the Thai baht collapsed last year, there was a situation where the exchange rate repeatedly touched the warning line. The pressure that the Hong Kong dollar is facing now is very similar to that of the Thai baht at that time..."

"Some economic experts worry that if the Hong Kong Monetary Authority's foreign exchange reserves continue to be depleted, the linked exchange rate system may be difficult to maintain..."

The streets of Central in the early morning,
There were significantly more people buying newspapers than usual.

A white-collar worker in a suit frowned more and more: "The exchange rate has dropped again? The stock market is probably doomed today."

Another white-collar worker said, "Luckily, I already threw it away. If I hadn't run, I wouldn't have been able to walk anymore."

In less than half an hour, most of the first batch of newspapers had been sold.

As the newsstand owner restocked his stock, he muttered to himself, "These past few days have been filled with news about the foreign exchange and stock markets, it's making me very anxious. Who knows what might happen when the market opens today?"

……

Central Plaza

Guan Zu gave Fang Zhanbo an order.

The first round of market intervention... has begun!
……

At 9:30 a.m. sharp, Hong Kong stocks opened.

The Hang Seng Index opened sharply lower, falling below 9400 points to 9380 points, 70 points lower than Friday's close.

In the trading system, red numbers were jumping wildly. As soon as the market opened, heavyweight stocks such as HSBC Holdings, Hong Kong and China Gas, and Cheung Kong Holdings were hit by sell orders, and their stock prices plummeted.

In the trading floor of the Hong Kong Stock Exchange, retail investors who had initially held onto a sliver of hope instantly turned pale upon seeing the opening points.

Some people were so anxious that they stomped their feet and cursed:

"Why did it drop so much as soon as the market opened?"

"As expected, the stock market is going to fall."

On the screen, sell orders continued to increase, and the Hang Seng Index continued to decline, reaching a low of 9350 points.

Inside the Soros Fund Management Company at Landmark Plaza

Rodney Jones glanced at the real-time market data, a smug smile playing on his lips.
"It seems the public opinion campaign has had a significant effect; retail investors are panicking. Keep adding to short positions and drive the index below 9300 points!"

Just then, the trading system suddenly changed.

Large purchase orders appeared out of nowhere, continuously adding to the portfolio of the company.

"What's going on?" Rodney Jones' smile froze. He slammed his face against the screen, his eyes glued to the order data. "Where did such a huge order come from?"

Retail investors at the Hong Kong Stock Exchange also noticed something amiss.

The index, which had been trending downwards, began to slowly rise, and the red numbers gradually turned green.

Someone pointed at the screen in surprise: "Look! Big money is coming in! The index is rising!"

At 10:30, the Hang Seng Index returned to 9400 points;
At 11 o'clock, the index broke through 9420 points, surpassing the closing point of last Friday.

Seeing this situation, speculative funds such as Soros Fund Management immediately followed up with large sell orders, attempting to push the index down.

The index fluctuated back and forth between 9400 and 9430 points.

The atmosphere in the trading hall fluctuated accordingly, with some people placing buy orders and others taking advantage of the rebound to reduce their positions.

Around 11 a.m., the forces of the bulls and bears gradually reached a balance, and the index fluctuated slightly around 9425 points. Occasionally, small sell orders appeared, but they were quickly absorbed by buy orders, and the index never fell back below 9400 points.

At 12 o'clock sharp, the bell rang to signal the market's midday closure.

The Hang Seng Index closed at 9432 points, up 15 points from Friday's close, a slight increase. Although the gain was modest, compared to the sharp drop at the opening, it has given the market a glimpse of an upward trend.

Subsequently,

The next day, the market continued to fluctuate!

The third day was still volatile!

Day four, fluctuating wildly!

……

In a flash,
The fifth day, July 31st.

The market will be closed in the afternoon.

The Hong Kong stock market remains at 9409.

Rodney Jones' team has been completely overwhelmed this week.

Why are Hong Kong stocks so resilient?

"Why?"

Just then, the red telephone on the desk suddenly rang.

International leased lines in the United States
Rodney Jones's heart skipped a beat.

It was a call from the boss, George Soros.

He took a deep breath and answered the phone:
“Boss, it’s me, Rodney…”

Soros's voice, clearly showing dissatisfaction, came from the other end of the phone.

"Rodney, tell me, what exactly is the situation in Hong Kong right now? Why? It's been a week, and the Hang Seng Index is still at 9400 points! Is this the result you've given me?"

Rodney Jones racked his brains and explained what he knew: "Boss, we've analyzed it. Of the shares we sold, 60% were bought by major investors, and the other 40% were bought by retail investors."

"The main funds could be Hong Kong government funds entering the market, or it could be the Five Star Group supporting the market... As for retail investors, they may still have confidence in Hong Kong Island. We have already spent money to have the media report various news that is unfavorable to Hong Kong Island, but the public's confidence has not been completely shattered."

"And another thing, for some reason, the Hong Kong government didn't raise interbank lending rates this time, so the stock market wasn't affected..."

At this point, even though Rodney Jones was strong-willed, he couldn't help but worry.

However, he quickly dispelled these worries and regained his spirits.

“Boss, the Hong Kong government’s funds are not unlimited, nor are the Five Star Group’s funds, and the public’s confidence cannot be maintained indefinitely…”

The more he talked, the more his confidence gradually returned.

"So, boss, I believe the advantage is still on our side!"

Rodney Jones clenched his fist!
Upon hearing this, Soros nodded and then said, "Rodner, you should know how much effort this operation took and how many people around the world were watching."

"I don't care what the reason is, we must win this battle. Otherwise, don't say I didn't protect you; those people behind you won't let you off the hook."

Soros's voice had become colder.

Capital has no regard for human feelings!
If capital loses money, the price will be...

"Yes, sir! I will do my best!"

Rodney Jones readily agreed.

After hanging up the phone, his back was soaked with sweat.

He turned to the core members in the office, his face grim: "Did you all hear that? No matter what, we must win this battle!"

"If we lose, not only me, but you will all suffer the same fate."

Everyone immediately replied, "Yes!"

Rodney Jones walked to the window and looked down at the bustling city below.

"next week……"

"The final offensive will begin next week."

"I don't believe the Hong Kong government or Five Star Group can absorb this massive sell-off!"

Grit your teeth!

(End of this chapter)