The key is... procedural justice!

The new Hong Kong government is rigid in doing things, for fear of making a wrong step. Moreover, Hong Kong law does not give troubled companies a buffer time for restructuring, so Peregrine's creditors lost the opportunity to recover their losses.

On the surface, declaring an insolvent company bankrupt can certainly maintain market order, but this quick death method is indeed unfair to the debtor.

In the final analysis, those people are too rigid in doing things.

This chapter is not over yet, please click on the next page to continue reading! But fortunately, Li Yuan now lends a helping hand. Due to the rapid capital injection from Han Palace Investment, at least Peregrine was not completely bankrupt and liquidated.

Normal operations soon resumed.

Of course, now the boss has been replaced by Li Yuan. This can give Hong Kong's economy a breath of relief.

But in August 1998, Soros and other predators finally took action, and international hot money began to sell Hong Kong dollars on a large scale, with the amount exceeding 20 billion.

At that time, the Hong Kong government’s foreign exchange reserves were US$92.8 billion. No one knew whether these foreign exchange reserves could defeat the Wall Street giants who were secretly supported by the US government. So under the instructions of the Hong Kong Monetary Authority, international hot money sold off US$20 billion.

All Hong Kong dollars were recovered. At that time, the exchange rate between the US dollar and the Hong Kong dollar was stable at 1:7.75.

Let’s start with the stock market, which opened the tragic curtain... In the eight hours from the opening to the closing, Hong Kong’s Hang Seng Index plummeted 1,438.31 points, a daily drop of 13.7%, closing at 9,059.89 points.

On that day, 28 people committed suicide by throwing themselves into the sea, 6 people jumped off a building with their wives and children, and 3 people committed suicide with charcoal... The whole of Hong Kong was in mourning.

And by October, the Hong Kong Monetary Authority received a notification that more than 100 billion Hong Kong dollars were sold by hot money in the New York foreign exchange market. The Hong Kong Monetary Authority immediately issued two orders: first, buy all the Hong Kong dollars sold by hot money, and how much they sold.

, the Hong Kong Monetary Authority will take whatever it takes; second, increase the market interest rate of Hong Kong dollars and tighten the loans of major banks in Hong Kong.

The idea of ​​the Hong Kong Monetary Authority is simple: to increase the cost of hot money speculation by raising interest rates, and to attract other users to buy Hong Kong dollars to make profits with high returns. But they do not know that this kind of rigid and rigid operation is exactly what Soros and the others want to see...
Chapter completed!