Republic of China game

Sun Yat-sen's eyes flashed, and he added a hint of playfulness: "You still look confused, I think you should stop wading in this muddy pool, and go down to carry out the land reform in Henan! I have just received Luo Fuwen and Feng Zibing's secret message, they all asked me to go south immediately."

"President... Are you going to fight them?" Liao Zhongkai took a deep breath, his face turned pale.

Sun Yat-sen smiled coldly: "Can they be convinced after losing all their wealth?"

"Who... who wants to lose everything?"

"Who else? The Beiyang Consortium, the Fengtian Consortium, and the Japanese!" A trace of disdain flashed across Sun Yat-sen's face.

"How is this possible? The right time, place and people are on his side." Liao Zhongkai shook his head desperately to express his disbelief.

Sun Yat-sen laughed: "Feng Zibing's secret telegram said that Luo Fuwen was going to play tricks, and Shanghai is our territory! Winning or losing is not a matter of our words? Well, Zhong Kai, what should be said and what should not be said now Yes, I told you everything, I'm leaving now, you should go with me! Let's figure it out on the way, how should we spend the money we won..."

"Laughing?" Liao Zhongkai's mind was in chaos, he couldn't figure it out, how could this financial war be so cheating?And what kind of Laifa?

……

"Brother Gongwei, we... I'm afraid it's over?" Bai Siwen asked Wu Chong beside him with a pale face and trembling voice.

"Our company has bought 680 million French currency, and the four banks have bought nearly 6000 million." Wu Zhong sighed softly: "Swen, we have done our best today, whether we can save the situation or not depends on Shanghai ! That's our territory..."

In the Tianjin Stock Exchange, the capital of the Kuomintang family has already lost a lot at this moment.The legal currency has let the opponent drop below one dollar for seven legal currency!This place is not within the range of the giant artillery of the National Revolutionary Army, but under the bayonets of the Fengtian Army and the Tianjin Garrison of Japan.

Therefore, the legal currency in the northern market seems to have poured here overnight, and even Shanxi Bank, which has always been pro-KMT, joined the ranks of selling from the very beginning.The varieties traded on the Tianjin Exchange are similar to those on the Shanghai Stock Exchange. Except for currencies, they are stocks, bonds, futures, and materials, which are basically the same routines.However, the size of the entire market is much smaller. The main listed bonds are government bonds of Beijing, government bonds of Fengxi, Shandong, Shanxi and other provinces, and the stocks are mainly enterprises controlled by northern bureaucratic capital and national capital. , the overall scale is relatively small, and the transactions are not active.Therefore, the variety of the long-short confrontation here today is the French currency, one side throws it wildly, and the other side takes it wildly, but it is obvious that the capital of the Kuomintang family does not have an advantage here.However, in just over an hour, the consortium formed by the Pacific Trading Company, Bank of China, China Commercial Bank, Zhejiang Bank, and Siming Bank has "run out of ammunition and food", and there is no more dollar in hand to receive goods!

……

Beijing, Shuncheng Prince's Mansion.Inside the flower hall, a few cups of tea are exuding a rich fragrance.Zhang Zuolin, Vice President of the Republic of China, is drinking tea and chatting with the envoys of the United Kingdom, the United States, Japan, the Soviet Union and other countries stationed in China.

"Your Excellency, Vice President Zhang, the Empire of Japan is very worried about China's current financial situation, and hopes...to help at the right time." Japanese Minister Yoshizawa Kenkichi put down the teacup in his hand, smiled slightly, and said: "In addition, The Empire of Japan also hopes that China can fully open its market to facilitate trade and investment among countries. Only in this way can the recurrence of the financial crisis be truly prevented. Moreover, the imperial government is also willing to support Chinese leaders who can achieve this to lead the country.”

As soon as Fangze's words fell, the Soviet representative on the side, Zirnekh, also echoed: "The Soviet government also hopes to have a truly responsible new government that unites forces from various factions to lead China. Only in this way can China's stability and Prosperity can be guaranteed, and the interests of other countries in China will not be violated. It’s just that the person responsible for causing this financial crisis should not take any positions in the new government!”

Hearing that the ministers of Japan and the Soviet Union actually sang together, it seemed that they were already allies.American Minister Ma Murray and British Minister Sir Lampson could not help but look at each other.Reminiscent of the fact that the Soviet Union purchased warships from Japan not long ago, the brows of the two of them could not help but frown slightly, and their faces became a little gloomy.

Seeing the long faces of the British and American envoys, Zhang Dashuai also felt a little disappointed.This matter in the north can be done with the support of Japan and the Soviet Union.But once you cross the Yellow River, you may have to look at the faces of Britain and the United States. If you cross the Yangtze River, it will be purely the "world" of Britain, the United States and France.The Japanese and the Soviets are not easy to use there, and Britain and the United States don't seem to support it.The French and Germans simply did not accept the invitation. It seems that the throne of the great president is still a bit far away from them.

"Mr. Ma Murui, Sir Lampson." Zhang Zuolin was silent for a moment, but still smiled and nodded to the two "emperors": "I just got the news that our Chinese president, Mr. Sun Yat-sen, has left Zhongnanhai and is rushing to Heading to Beijing Nanyuan Airport. They also brought their family members and a full set of secretaries with them. It seems that they will never return. In this way, the presidential palace in Beijing will be... I don’t know, if the United Kingdom and the United States meet How do you deal with a situation like this where leaders go AWOL?"

American Minister Ma Murui sneered: "Our president of the United States of America will never make such a mistake! But...the president of our country will not encounter any personal threats in the capital."

Sir Lampson thought about it with the most standard casual attitude of a British gentleman, and then shrugged his shoulders: "The British Empire only hopes that China can maintain peace and stability. No matter who is the president, the Empire also hopes The transfer of power is done in a peaceful way. As for President Sun leaving the capital... The British Empire does not think this is AWOL. In fact, the current capital of China is not in Beijing, but in Wuhan, and all important decisions seem to be It was made there. The British Empire would be understandable if Mr Sun Yat-sen felt the need to move the capital to Wuhan."

"Hehe, the economy of the Wuhan government is about to collapse, and the Great Japanese Empire doesn't think they can still maintain their rule." Yoshizawa Kenkichi also rarely showed his arrogance, and he glanced at the British and American ministers with some cold eyes : "We have to take over their finances and customs to ensure that the huge foreign debts they owe can be repaid, what do you two think?"

Chapter 0405 The Darkest Day in World Financial History ([-])

March [-], [-], at noon.

In the HSBC Building, MacLexon clerk sat in his luxurious office with a little tiredness.After all, he is an old man, and this sudden financial turmoil really made this gray-haired British old man feel a little haggard, and he was a little at a loss as to what to do.An economy that seemed so prosperous and thriving was on the verge of collapse in just a few days!In other words, it has already collapsed... In just one morning, the fiat currency fell by half, from 60.00 yuan to 5.00 dollar to 110 yuan to 110 dollar!The stock market has also fallen by almost [-]%. If the factor of the fiat currency plummet is taken into account, the actual decline is as high as more than [-]%!Flour has more than doubled, and the performance of the bond market is somewhat confusing?In this collapsing market, a three-year government bond code-named [-] actually rose by a full ten yuan!What a concept!That's a bond, not a stock or a commodity like flour.Bonds are fixed-income products. Taking this [-] bond as an example, its annual interest rate is only [-]%, and the principal and interest are repaid once due.In other words, only [-] five yuan of legal currency can be obtained when it expires, but now its price has actually reached [-] four yuan!Oh, God!It's only a few months past its deadline!That is to say, investors who buy this issue of government bonds can only get a return of one yuan in the next two years or so!This...how is it possible?The Shanghai Stock Exchange must have made a mistake. These Chinese people are so sloppy in doing things. No wonder their financial market will be overwhelmed by the Japanese. If it is replaced by the British Empire, it will definitely not be like this!Looks like... the need to take over the cash-rich Union Exchange.

With a bang, the door of MacLexon's senior class office was knocked open.

It was Charles Hooper who slammed into the door.He is the head of the bond trading department of HSBC Bank. This tall, slightly bald British gentleman in his 30s has just been sent by Mr. MacLexon to the Shanghai Stock Exchange next door to inquire about [-] bonds and related bond futures. quote.By the way, blame these sloppy Chinese, especially the rogue general manager Du Yuesheng!

As soon as MacLeison raised his head, he saw Uncle Ho standing there with his face flushed, holding a stack of papers in his hands, his face full of incredible surprise, and he was too out of breath to speak.

McLean frowned slightly, a little surprised.This Charles Hooper came from a diplomatic family and received the strictest aristocratic education since he was a child.As a result, he has developed an extremely elegant aristocratic demeanor, no matter what serious incidents he encounters, he can always maintain the most elegant posture of a British gentleman, and he will never panic... But what happened now? ?Could it be that the Kuomintang was so anxious that they wanted to send troops to attack the Shanghai Concession!

Thinking of this, MacLehsun's brows also frowned, and his face sank slightly: "Charles, what happened? Are those Chinese going to... use force?"

Charles He Bo just shook his head, his expression was anxious and tense, and he took a long time to catch his breath: "Mr. MacLexon! Something happened! Something happened to the [-] bonds!"

MacLexon's class breathed a sigh of relief, and said with a smile: "Is it the Chinese who made a mistake? I knew that these people are unreliable..."

"No! No, they set up a trap on this! Both the Japanese and HSBC were caught!" Bo He stomped his feet, almost crying.When he arrived at the United Exchange just now, the morning trading had just closed... Several brokers in charge of bonds and bond futures almost cried to welcome him!Because the closing price of the 130 coupon at noon this day was 140 and 10 yuan!And the three-month futures price of [-] bonds is [-] five yuan!Compared with the price reported to HSBC [-] minutes ago, it has soared a lot.As the person in charge of the bond business of the Shanghai Branch of HSBC Bank, Charles He Bo's eyes were blackened at the time, and he almost passed out... As for what happened, he was shocked within a second of hearing the news. All thought through.These Chinese took an extremely rogue method to set a trap for the Japanese, and they also pushed HSBC Bank, which provides bond trading economic services for the Japanese, into the abyss!

MacLexon’s senior class still sat firmly, calmly: "Trap? Oh, today the Japanese invested tens of millions of dollars in this coupon, right? Now they have suffered a little loss... But In other respects, they still won a big victory. Shouldn't change anything?"

Uncle He smiled wryly: "...Mr. MacLexon, I haven't finished yet... The Chinese have already pushed the spot closing price of 130 coupons to 140 yuan before the market closes at noon, and [-] coupons The price of the three-month futures is [-] yuan! The Japanese opened a full [-] short orders on the three-month futures of [-] bonds through our HSBC account! The average transaction price is [-] lots! Five cents."

"What!" MacLexon's senior class jumped up all of a sudden, pointing to the quotation in Uncle He's hand with a livid face.

One hundred thousand empty orders, one is 1 yuan, a total of one billion legal currency bonds!Of course, this does not mean that the Japanese have invested a margin of one billion French currency. The margin ratio of government bond futures is 140%, which means it is magnified by 15 times!The price for the Japanese to open a position is 140 yuan and 1000 cents, and now the transaction price of the three-month [-] bond contract is [-] and [-] cents!In other words, they lost almost [-] million French currency in just ten minutes!And what's more serious is...the Chinese actually pushed up the futures price of a bond with a maturity of only [-] yuan to [-] yuan!So can they push up two hundred yuan?Four hundred yuan?Or... how about [-] yuan?In this case, the Japanese will naturally be out of the game, but the British Hong Kong and Shanghai Banking Corporation, as an economic businessman, will also be responsible for paying the compensation!

Now the head of the Shanghai branch of HSBC Bank, MacLehson Taipan, who is well-known in Shanghai's financial circles, suddenly felt like crying.And of course a little outrage!These Chinese people are really shameless, how can they do this?Finance is a civilized transaction between gentlemen, not robbers!

"Sir... do you think they will continue to push up the price in the afternoon?" Bo He asked with a trembling voice, as if he had already seen himself in poverty after being fired from HSBC...

"Then there's no need to ask!" MacLethor gave He Bo a sharp look, and growled: "Hurry up and answer the call from the Consul General, Sir John Bijohn, and ask him to come out and put pressure on the Chinese to make them...let them immediately Stop this shameless behavior!"

……

The Consulate General of the British Empire in Shanghai is also on the Bund, very close to the HSBC Building and the Shanghai Stock Exchange.As a result, the Consul General, Sir John Piccolo, walked into the Shanghai Stock Exchange 10 minutes later, with his old friend Taipan MacLexon, at the most leisurely pace of a gentleman in the British Empire.

And Luo Yaoguo, Song Ziwen, Kong Xiangxi, Chen Guangfu and others also tried their best to pretend to be gentlemen, and invited the two British guys into the VIP room on the second floor with the most sincere smiles and the most humble attitude.Then Natalie Lesinskaia brought out the best South American coffee that had been prepared and the exquisite pastries just delivered from the western restaurant of Huizhong Hotel.In short, the Brits fully felt the friendliness and sincerity of the Chinese people.

It's just that the friendliness and sincerity of the Chinese people didn't seem to have any effect. Sir John Piper just sat down and began to protest in blunt Chinese: "Your Excellency, the British Empire originally thought that you Chinese had learned to follow international practice. It’s time to get things done, but something extremely unusual happened in the Shanghai Stock Exchange today. It’s clear that someone is breaking the rules of the game and doing something very out of character and fair! The British Empire expresses its extreme disapproval of concern."

Sir John Bijohn originally wanted to use the word "indignation", but he suddenly remembered that the young marshal in front of him defeated the mighty Soviet Red Army last year!So I changed my outrage to concern.

Hearing that the British guy was very concerned, Luo Yaoguo smiled slightly, put down the small coffee cup in his hand, and spoke in fluent American English: "Sir, I think the rules of the game are slightly different in every place, right? For example, in the British Empire, the highest The leader of the United States is the king, and the president of the United States of America is the head of state. We cannot think that the presidential system violates the rules, nor can it be said that hereditary monarchs must be wrong? The operations are all in line with the rules here. For example, there is no upper limit on the open position of futures contracts (a bond with a circulation of [-] million has an order of one billion), for example, there is no rule that does not allow futures or spot prices of public bonds The price should be lower than the price at maturity. In fact, those Japanese were negligent and did not read the rules of the exchange carefully, rather than us breaking the rules of the game. I deeply regret this.”

MacLexon's class almost couldn't bear to jump up when they heard this!These Chinese took advantage of common sense and conventions, but not in the regulations of the exchange, as loopholes.And what is even more irritating is that HSBC is currently the broker who is undertaking this bond futures transaction!In other words, if the Japanese have lost all their net worth and there is no way to close their positions... then HSBC will guarantee the compensation!Doesn't this mean that HSBC gave the Chinese a blank check that they can fill in numbers at will?Is that okay?Theoretically, those Chinese can use the manipulation of bond futures prices to squeeze positions and drive HSBC into bankruptcy!Of course, in fact, those Chinese people should not dare to do this, right?

"Mr. MacLexon, what about the [-] government bonds this time... I really like it! Uh, you know that if you like something, you can buy it at a higher price." Luo Yaoguo didn't wait for the two British guys He opened his mouth and began to talk about his fallacies again:

"It's just... I have some financial resources, and I'm not familiar enough with the financial market. So I would like to ask you to help me. What is the reasonable price of this [-] government bond? I mean, we don't want HSBC, Citigroup Banks, Macquarie Bank and CA-CIB have suffered unnecessary losses in this financial crisis! Your ability to invest in China is the greatest friendliness to the Chinese people, and we can’t let our friends suffer, don’t you think?”

what does that mean?A look of surprise flashed across McLean's face.According to what the other party meant, it seemed that they just wanted to let the Japanese lose all their losses and then stop.HSBC and all participating foreign banks will not suffer losses!That also means that he, MacLehson, does not have to take any responsibility for this, and the entire Shanghai branch of HSBC Bank can still maintain good performance.And those Japanese who have lost all their wealth... they will not go to HSBC if they want trouble, they should go to the Chinese.As for whether to go to court or directly choose to go to war, that has nothing to do with HSBC!Oh, and one more thing, I should immediately notify the head office to settle all positions related to Japan as soon as possible. It is estimated that I lost more than one billion yen in Shanghai at once, and this country should also have a moderate financial crisis.

"Your Excellency Marshal, on behalf of HSBC Bank, I would like to thank you for your kindness. As for the price of this public bond, I will discuss it with the executives of Citibank, Agricole Bank, and Macquarie Bank. If I give you a satisfactory answer before the market opens, I will take my leave first." After speaking, Mr. MacLexon didn't care about his gentlemanly demeanor, and trotted all the way out of the VIP room.Now there is not much time left to leave the market opening in the afternoon.Be sure to calculate the worth of these Japanese with a few friends from foreign banks before this... Oh, and the commission payable by them must also be deducted, that is the profit of HSBC Bank!

……

With the ringing of the market opening gong, the "farce" in the Shanghai Stock Exchange continued to be staged.

Now... the big bull market has begun!

Almost everything started to rise sharply except flour, oil, coal, gold and foreign exchange.The reason for this situation is actually related to the "margin trading system" in the Shanghai Stock Exchange at that time and the allowing "short selling and buying short" transactions.In fact, the main driver of the market plunge this morning is the "short selling" market represented by the Japanese chaebol and the Beiyang chaebol.They use the huge amount of funds in their hands and use the "short selling" trading system to directly suppress the market significantly.However, due to the lack of opponents' orders, the short selling orders they threw out at high positions were almost zero.It wasn't until after the market plummeted that there were successive orders entering the market. At this time, the real long-short contest on most varieties began... At this time, Japan and the Beiyang chaebol continued to use their capital advantages to frantically suppress and create panic, attracting Follow the trend to short the stock market and bond market, and "squeeze positions" on the "nine major banks" in southern China.Trying to suppress the stock price and bond price to a price enough to make the "Nine Big Banks" go bankrupt, and then trigger a run on depositors, can completely defeat the opponent.Of course, if they didn't reach this point, they would just earn less money.Because the market will definitely collapse to an extremely low position under the follow-up of the panic market.Enough to make their "short selling" trades at relatively high levels profitable.

Theoretically speaking, the Japanese and the Beiyang chaebol have a great chance of winning in this round of short selling, and it is almost impossible to fail!But the problem is that in this era, China's securities and futures trading laws and regulations are very imperfect.In fact, countries all over the world are not very perfect in this regard, and basically hand over the responsibility of supervising the market to exchanges and brokers.The Jiangsu and Zhejiang chaebols, Nanyang chaebols, and Kuomintang bureaucrats who founded the Shanghai Stock Exchange deliberately left some loopholes... For example, the upper limit of the opening volume of short and long transactions is temporarily determined by the exchange. Set or not set.In addition, futures trading does not have a "circuit breaker" mechanism and a temporary suspension system, which was actually not available in all countries at that time.

So a huge BUG just appeared!First of all, there is no upper limit for the increase of any transaction target!And the decline has a lower limit, at most it will fall to zero.

Secondly, there is no upper limit on the "holding volume" of the trading target in the "short selling and short buying" and futures contract transactions.Take the [-] government bond as an example. Its total issuance is only [-] million French currency, but the total open interest in the futures contract is as high as [-] lots, which is equivalent to a government bond with a face value of [-] billion legal currency!To put it in more detail, it is a kind of public bond with a total amount of only [-] million, and the Japanese sold [-] billion in the futures market!How can it be possible to complete the due delivery?So this kind of "futures" trading has become purely a contest of financial strength, to see who can force the opponent to "explode"?

The third problem is that in this contest of financial strength, the Japanese and the Beiyang chaebols have a total of 15 billion to 16 billion French currency!And the Kuomintang has a central bank that can issue legal currency in unlimited quantities!