Great Power Industry: You're a private company building an aircraft carrier?
Chapter 663, Next Target: Hong Kong!
“Little brother, why are you blushing? You’re so cute!” Barbara said, pinching Kate’s cheek, which made Kate’s face turn even redder.
"I'm not a child anymore, I'm already in college!"
"Going to college? Do you have a girlfriend yet? Have you done any naughty things with her?" Sofia continued to tease, "Only by doing those kinds of things can you be considered a real adult."
"Of course I have. When I was sixteen, I..."
"Sixteen? Your girlfriend will definitely be unhappy..."
Before Sophia could finish speaking, she noticed everyone's eyes were on her: "What's wrong?"
"Sophia, let's get down to business. Shouldn't we be making our move to Hong Kong next?"
"That's right, the next target is Hong Kong. We need to have more US dollars than Hong Kong and the mainland combined, so that we can defeat Hong Kong and make it flee in disarray. This is the last battle, and the profits are still huge. Moreover, through this method, we can also completely cripple Hong Kong!"
This goal is more important. After all, most people present are wary of the rising East. There is only so much wealth in the world. If the East rises, they will definitely want a share of it.
“Now, the Laiyang Group in the East has gradually become a major threat to us.” A man with a gray beard said, “This time, it would be great if we could drag the Laiyang Group down with us!”
“Of course!” Sophia nodded. “That President Qin from Laiyang Group is different from us. He likes money, but at the same time he is extremely loyal to the country. In this situation, he would definitely take action! Besides, I helped them last time.”
There's no need to hide this. After all, Samsung Electronics was mortgaged to Laiyang Group and then ended up in the hands of Wall Street, passing through Sophia's hands in the middle!
Hearing Sofia's admission, everyone was relieved. It made sense; the Kuwaiti princess was very close to the West, so she certainly wouldn't have a deep relationship with the East. The collateral held by Laiyang Group was purely for making money.
"The Laiyang Group cannot become any stronger, otherwise it will become a threat to the world economic order. Therefore, when I heard that the Laiyang Group had lent money to Samsung Electronics, I made some contacts and transferred Samsung Electronics' collateral to our hands. South Korea can only be controlled by Wall Street!"
Everyone nodded in agreement, making the explanation seem even more reasonable.
"Then tell me, how exactly do we do it?"
"The first thing they did was spread rumors in mainland China."
What?
Everyone was taken aback. They had never used rumors before. Sure enough, Barbara's methods were more sophisticated; she was a natural player! But why spread rumors on the mainland?
"The mainland will definitely do everything in its power to rescue Hong Kong's economic situation. Therefore, if you want to raise Hong Kong dollars, you must start with the mainland. Barbara's move is very farsighted!" Soros said.
“But the financial order on the mainland is different from that of the free world, so our propaganda is useless!” Rogers said with some curiosity.
The RMB has a fixed exchange rate, which is determined by the country. Moreover, international buyers cannot directly manipulate the exchange rate by buying and selling RMB!
It wasn't until 2005 that the RMB began to fluctuate, with a maximum fluctuation of 0.3 percent. It wasn't until 2015 that the fluctuation was raised to 2 percent.
So what's the point of your advertising?
Sofia smiled and said, "That's what you don't understand. The exchange rate in the East is indeed fixed, but only a few entities can enjoy this exchange rate. Some small businesses or individuals simply have no way to exchange foreign currency through official channels, so they can only go to the black market. And the transaction volume in this area is actually quite large."
Everyone was stunned.
“Barbara is right! We’ll spread rumors first to devalue the RMB, so that the mainland won’t be able to interfere in Hong Kong affairs. Then we’ll use the old method to suppress the Hang Seng Index!” Robertson nodded.
“What’s the rush?” Barbara said with a smile. “First, spread rumors in the mainland. When the black market in the mainland allows 1 US dollar to be exchanged for 10 US dollars, we’ll spread rumors in Hong Kong. We’ll claim that the Hong Kong dollar is decoupled from the US dollar and has depreciated by more than 40%!”
It's still spreading rumors, but this one is even worse!
With a change in the center of power in Hong Kong, changes in the economic system are also possible. Devaluation and decoupling—this combination of measures would cause the Hang Seng Index to plummet!
"Okay, we'll follow your arrangements!" Everyone was impressed.
"The next step is to accumulate short positions in the Hang Seng Index futures market. For every point the Hang Seng Index drops, each short position can earn HK$50. If we push the Hang Seng Index down by more than 2,000 points, each short position contract can earn HK$100,000!"
It's easy to understand how to make money when stock and futures markets are rising, but how do you make money when stock prices fall?
It's actually quite easy; in Hong Kong's futures market, the standard practice is to maintain a short position.
This operation is very capital-intensive. Simply put, speculators borrow stocks when the stock price is high, sell them, and then buy them back at a lower price after the stock price falls, returning the stocks to the lender and profiting from the difference.
For example, if you buy a house at a low price in 2013 and sell it when prices are at their peak in 2018, you can make a profit.
Similarly, if you sell your house in 2018 when prices are at their highest, and then buy it back in 2023 when prices are low, you'll still have the same house, but you'll have hundreds of thousands or even millions more in your hands. This way, you can make money while prices are falling.
Everyone present was an experienced person; they all knew how to make money, and they all nodded in agreement.
As for the risk of market volatility... well, that naturally means that stock and futures prices might not fall as expected, but instead rise! That would mean they'd lose all their money!
However... since South Korea has been defeated, bullying Hong Kong will be a piece of cake.
No one thought they would lose money.
"Alright, let's proceed according to this plan. The final offensive will be on January 28th."
"why?"
"You don't understand the East at all, how can you fight this war?" Sophia looked at everyone with disdain: "January 28th is the Lunar New Year in the East, their most festive day. They will take a holiday, so they won't be able to react in time. Also, the 28th of every month is the settlement day for the Hang Seng Index futures!"
Stocks can be bought and sold, but futures have an expiration date. When the time comes, you have to pick up the goods and they become yours. Essentially, this is buying things!
Launch an attack on the settlement date, and the other party will definitely not be able to withstand it!
After saying all that, Sofia walked back to the little one: "Kate, do you think your sister is great?"
A chill ran down everyone's spine; this woman was up to her old tricks again!
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