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

Chapter 867 "865" The Eve of the Decisive Battle: Speculative Capital Mobilizes! Hong Kong Island Mobilizes!
Friday, January 7th.

Night.

Central Plaza

Because of the impending financial showdown, Guan Zu had no choice but to work overtime like a beast of burden on Saturday nights.

He shouldered the heavy responsibility of two capitals and thirteen provinces!

awful!
At 19:00, ATV will broadcast the evening news on time.

"Dear viewers, we now have an important weather update to share."

"According to the latest monitoring and forecast from the Hong Kong Island Observatory, a tropical cyclone has formed in the low-pressure area in the central South China Sea. The Observatory has named it Binney and issued Typhoon Signal No. 8. It is expected to gradually approach the coastal areas of Guangdong next Tuesday (August 4), and Hong Kong Island will also be significantly affected by its outer circulation..."

"During this period, Hong Kong Island will face strong winds, heavy rain, and thunderstorms. The winds will be quite strong, so the public is advised to prepare for wind and rain in advance..."

Guan Zu looked out the window; the night was vast and dark.

Hong Kong Island is already chaotic enough, and now a typhoon is adding to the chaos.

"The Hong Kong stock market officially closed at 16 PM today... The total trading volume for the day was HK$100 billion, far exceeding the June average of HK$53 billion, with bulls and bears locked in a fierce battle..."

"In the foreign exchange market, as of 17:00 PM, the Hong Kong dollar against the US dollar remained volatile..."

Guan Zu: "…………"

This is such a mess!

ATV: "Next, let's turn our attention to news about the domestic flood disaster..."

With a solemn expression, Wen Huixin reported to the camera: "Entering late June, the domestic climate has been abnormal, with typhoons and torrential rains raging, and a severe flood has affected most of the country."

“Starting from the Pearl River Basin, the floods spread all the way to the Yangtze River Basin, and even as far as the Songhua River and Nenjiang River Basins. 29 provinces, autonomous regions and municipalities across the country have suffered from floods of varying degrees, affecting as many as 2.23 million people.”

"The raging floodwaters mercilessly swallowed roads, destroyed houses, and submerged farmland, claiming the lives of many compatriots..."

"Countless moving scenes emerged during the flood control and disaster relief efforts..."

"The Yangtze River dike breached, and the situation was extremely critical. Without hesitation, the soldiers jumped into the raging floodwaters..."

In the footage,
Soldiers joined hands and stood shoulder to shoulder, using their own bodies to build an indestructible Great Wall, blocking the ravages of the flood.

"In order to transfer the trapped people, the soldiers jumped into the waist-deep floodwaters and formed a 'human bridge' with their bodies to safely transfer the trapped people one by one."

"In the relentless flood, 18 soldiers lost their lives..."

In one scene, a baby is being lifted high above the heads of soldiers and washed away by a flood.

On the television, background music played simultaneously.

"The five-star red flag flutters in the wind, the victory song is so loud, let's sing..."

As Guan Zu looked at these shots, for some reason, his nose started to sting.

This flood was much larger than the one in 91, covering almost half of the country.

When the incident occurred in June, Kwan Cho instructed the Five Star Group to procure a large quantity of medicines and supplies from around the world and send them to the mainland.

However, Hong Kong Island is experiencing its most dangerous financial crisis, so Kwan couldn't leave.

The report lasted a full five minutes, constantly switching between various camera angles, and it struck a chord with the audience.

In particular, the steel forest formed by countless soldiers in the footage moved many citizens.

Although Hong Kong Island has gradually increased its education in Chinese culture, the attitude of "self-proclaimed elites" still exists in large numbers, and there is still a certain degree of condescension.

Seeing these scenes, they couldn't help but feel shocked, moved, and brought to tears by their emotions.

Looking at it from another perspective, could I have done that much at this time?
Can't do it!
And this time,
The screen turned,
"Next, please listen to international news..."

"On July 30, a wildfire broke out in Florida, USA. Due to the intense fire, fire hoses ran out of water, causing the wildfire to spread rapidly..."

"On the same day, in Alaska, a group of African Americans stormed a community, robbed a large amount of property, and then fled the scene. Half an hour later, the police arrived at the scene..."

All Hong Kong citizens: "…………"

I was just immersed in emotions of sacrifice and dedication.

And then the next second you switched to praising America's incompetence?

This made some elites feel uncomfortable.

Especially those "progressive youths" who gathered outside the Hong Kong Stock Exchange last time, seeing these news reports, are really slapping themselves in the face.

……

A new day,
Saturday, April 8.

Today was supposed to be a rest day, but the Financial Secretary of Hong Kong Island held a press conference for the first time ever.

The news spread, and numerous media outlets rushed to report it.

The news also reached Soros Fund Management at Landmark.

Rodney Jones and the others immediately cheered.

"Needless to say, it will definitely be an interest rate hike!"

"Haha~~ He's fallen for their trap!"

……

……

10 o'clock in the morning,
At the Financial Secretary Building, in the press conference hall, more than 120 international and Hong Kong media outlets gathered at the press conference venue.

Mr. Tsang, then Financial Secretary of Hong Kong Island, steadily walked onto the podium.

He wore a sharp gray suit, had three-quarters gray hair, and a serious expression.

"Dear friends from the media, the reason I have gathered you all here today is that the Hong Kong financial market is facing unprecedented and severe challenges..."

"Recently, international speculators led by George Soros have been acting recklessly in Hong Kong's financial markets, maliciously shorting the Hong Kong dollar, stock market, and futures market in an attempt to disrupt Hong Kong's financial order and reap huge profits..."

"Their actions have seriously threatened the stability of Hong Kong's financial system..."

Inspector Tsang's words were forceful and resounding.
"In order to effectively deal with this malicious short selling, after careful study and evaluation by the Financial Secretary, we have decided to take a key measure - increasing financial market margins."

The so-called deposit...

For example, if Soros buys 1 short contracts, worth HK$5 billion (hypothetically), he can't actually come up with HK$5 billion to buy them. Instead, he uses leverage, 50 times or 10 times, which means he can buy HK$50 billion worth of short contracts with just HK$50 million.

This 5 million is the deposit.

Once losses exceed the maintenance margin, the futures company will notify you to add margin. If you do not add margin, the futures company will forcibly liquidate your position, which is known as a margin call.

"Effective immediately, the margin requirement for Hang Seng Index futures will be significantly increased, from the original [X]% to [X+8]%..."

(P.S.: As long as the short position has not been settled, the margin ratio is generally adjusted according to policy rather than remaining fixed. This is a basic practice and default rule in the futures market.)
Mr. Zeng said solemnly, “This measure aims to increase the speculative costs for malicious short sellers, compress their profit margins, and fundamentally curb their malicious short selling behavior.”

The reporters in the audience asked questions one after another:
"Does the government's introduction of this measure indicate that Hong Kong's financial system is on the verge of collapse?"

“Inspector Zeng…”

Questions immediately followed one after another.

Inspector Tsang raised his hand to signal everyone to calm down, and then said:

“We understand that this measure may have some impact on market activity in the short term, but it is very necessary to introduce this measure in order to protect the economic environment of Hong Kong Island.”

"As for the economy of Hong Kong Island, we are determined and confident that, with the support of all the people of Hong Kong Island, we will wage a resolute financial defense battle against these malicious short sellers."

Inspector Tsang's words carried weight and authority.

but……

However, many people feel that:
The Hong Kong government is bluffing; they're panicking.

Otherwise, why increase the margin requirement?

……

……

Before ATV and TVB even reported on it, the news had already reached Soros Fund Management.

"They're raising the margin requirement instead of increasing the interbank lending rate?"

Rodney Jones' first reaction was surprise.

In the past, Hong Kong Island would raise interest rates, but this time it's raising margin requirements.

"Boss, this means the Hong Kong government is panicking!"

"Yes, raising margin requirements will also reduce the amount of currency circulating in the market, thus causing the stock market to fall."

"good news!"

The team was pleasantly surprised.

"Ring ring ring~~~~"

At this moment,
One phone call after another came in, from futures companies asking them to increase their margin.

The margin requirement has increased by 8%. How much more margin is needed?

Rodney Jones did some mental calculations.

In the end, he got a result: 20 short positions, requiring an additional HK$80 billion in margin.

Hong Kong Island naturally doesn't have that much funding, so he needs to ask Soros for a grant.

He made an international call to Soros.

connected.

"Boss~~~"

Rodney Jones gave a brief report.
Upon hearing this, Soros burst into laughter: "It seems the Hong Kong government is already feeling it can't hold on any longer..."

Strong self-confidence leads to immense arrogance. Then Soros misjudged the situation, overlooking seemingly insignificant details, such as why the Hong Kong stock market only fell 7000 points and then struggled to fall further.

Overconfidence and the experience of the Southeast Asian financial crisis led them to believe that this was just the final step for Hong Kong Island to fall into the abyss.

Just like that night when the Thai baht suddenly couldn't hold on any longer and announced its decoupling, causing the baht to collapse.

Soros: "The money will arrive as quickly as possible..."

We chatted for a few more minutes, then hung up the phone.

……

……

Central Plaza.

Top floor office,
Guan Zu quickly signed a transfer approval document for a 50 billion yuan deposit.

Five Star Group bought a large number of long positions, which, while not as many as those international speculative funds, amounted to tens of billions.

The margin requirement was a method devised by Kwan Cho, Tsang Sir, and Yam Sir to prevent international speculative capital from prematurely liquidating their positions and fleeing.

For every short position, there is a long position; in a sense, the volume of short positions equals the volume of long positions. Generally, short positions are held by international speculative capital, while long positions are held by governments, domestic capital, and investors.

If the short sellers suffer heavy losses, the long sellers make a huge profit. And vice versa.

……

……

In a flash,
Monday, August 3rd.

The stock market has reopened.

Soros and international speculative capital dumped shares aggressively.
Meanwhile, perhaps influenced by the increase in margin requirements on Saturday, the stock market also began to fall. However, a large amount of government funds, Five Star Group, and various capital groups in Hong Kong quickly came to support the market and stabilize the decline.

……

Tuesday, August 4th.

International speculative capital is frantically dumping Hang Seng Index constituent stocks, while Hong Kong capital continues to support them.

The typhoon passed through that day. However, because it only grazed the surface, it wasn't considered too serious.

……

In New York,

The entire Wall Street was focused on the battlefield in the East.

at night,

Inside a luxurious private club in Manhattan, New York, the lights are dazzling.

Pre-battle mobilization!

Soros stood on the high platform of the banquet hall, dressed in a sharp, custom-made suit.

Before him stood a group of international speculative tycoons from all over the world, holding wine glasses with expectant and fervent eyes.

"Everyone..."

"All of these things have been said many times before."

"Tomorrow, August 5th, is the day of the final assault."

"We possess the keenest market insight, the strongest financial strength, and meticulously planned tactics."

"We have made thorough preparations!"

"From tomorrow onwards, we will crush the Hong Kong financial market and acquire enormous wealth!"

Soros waved his wine glass, his emotions growing increasingly agitated.

"For victory!"

Raise your glass.

"For victory!"

"For victory!"

The crowd below echoed this sentiment, raising their glasses and cheering loudly.

Shouts rose and fell, and the clinking of glasses mingled together, like a stirring pre-battle symphony.

……

It was on this very night,
Guan Zu sealed the Shangri-La Hotel restaurant and invited major business owners from all over Hong Kong to discuss important matters.

20 points,
The invited business owners from all over Hong Kong arrived one after another.

There's Young Master Li...

Mr. Wu...

Mr. Li Ji...

Boss Zheng...

Stanley Ho of Macau...

There were over 100 people in total, including all the bosses of Hang Seng Index constituent stocks and sector index constituent stocks, as well as bosses who made a lot of money in the north.

The banquet begins...

Dishes were served, toasts were offered, and the atmosphere was lively and bustling.

But... the atmosphere was a bit off; everyone knew the financial crisis was about to reach its climax.

Halfway through the meal,
Guan Zu raised his glass and stood up.
"Dear friends..."

At that moment, all the bosses put down their chopsticks and looked at Guan Zu.

Here comes today's topic.

Guan Zu looked around, his gaze settling on Young Master Li, then on Boss Li Ji, Boss Zheng… and on each of the other bosses.
"I've gathered everyone together tonight, and I'm sure you all know why..."

"Next, international speculative capital will launch a full-scale attack on Hong Kong Island!"

"Everyone should remember what Thailand went through last year. Speculative capital crashed the Thai baht, causing the currency to depreciate by half. One company after another couldn't withstand it and went bankrupt, leading to an economic collapse. It's estimated that it might not recover for at least ten years..."

"And then there's Malaysia. After the ringgit plummeted, the country had to implement foreign exchange controls. Businesses couldn't exchange dollars to buy raw materials, and factories went bankrupt one after another..."

"Indonesia is in an even worse state; the whole country is in complete chaos!"

"Everyone!"

Guan Zu looked at everyone and raised his voice eight octaves.

"Our roots are in Hong Kong Island!"

"I hope that in the days to come, our domestic capital will unite and work together to fight against international speculative capital!"

"Anyone who deserts at this critical moment, sells their stocks, and withdraws their funds will be a sinner for all time in Hong Kong!"

"I've finished speaking!"

"Anyone with a problem can voice it now!"

His gaze was sharp as he swept over everyone.

"I agree!"

Li Zhaoji slammed his hand on the table and said firmly, "My Zhaoye Group will never back down. I will arrange funds to repurchase the group's shares? No less than 50 billion!!"

"I agree too!"

Cheng Yu-tung's voice was deep but firm: "Chow Tai Fook's businesses will also provide full support, allocating 40 billion yuan to help stabilize the stock market!"

Lei Youcai slammed his fist on the table and declared, "I will put 70% of my cash flow into this!"

Stanley Ho also said, "Macau and Hong Kong are interdependent. If Hong Kong's financial market is in chaos, Macau will also find it difficult to remain unaffected. I will allocate funds to participate in the efforts to stabilize Hong Kong's stock market."

"I agree!"

"I support!"

Li's eldest son and more than 100 other business owners also expressed their support, promising to invest a large amount of money, focusing on taking over the index constituent stocks, and maintaining the index.

On the one hand, they don't want Hong Kong Island to collapse and fall into the same situation as countries like Thailand.

On the one hand, they didn't want to desert their posts and be punished by Guan Zu afterwards. No one present could withstand Guan Zu's repercussions.

On another note, if Hong Kong wins, they will make a fortune!

Guan Zu looked at everyone and smiled.

"it is good!"

He raised his glass and said loudly,
"I believe that with everyone working together, we will definitely be able to protect Hong Kong's financial market."

"If we win, we will all be heroes of Hong Kong!"

"Cheers to Hong Kong Island!"

"cheers!"

Everyone stood up and raised their glasses.

now,

outside the window,

Hong Kong Island is bustling and dazzling!
--------

P.S.: The next chapter will be a little later. I feel like I didn't write it well, so I'm taking a moment to adjust my mood.

(End of this chapter)