Chapter 425: Face issue

Chen Mingluo did not expect that Yu Yuanfan would come so directly to attract investment.

Looking at the Yu family and daughter, Chen Mingluo was also hesitant and didn't know how to answer them. The amount of investment in Yangshuo was indeed a little larger a while ago. It was all to help Xiao Mingxue gain a foothold in Yangshuo. It was also because he promised the provincial party secretary Sang Mingda to stabilize the complex situation after the Yangshuo City Police Director Fei Litong was detained, giving people the appearance of Yangshuo's still healthy development.

But if you really want Mingyang to invest 1 billion now, it will be a bit troublesome. After all, the matter of agreeing to cooperate with Fatty White has begun to be arranged. There are still many opportunities in Hong Kong. It is not easy to make a profit from such a big move.

Chen Mingluo and Yu Yuanfan talked for a long time and expressed their attitude that it is OK to support it, but a large amount of funds can only enter Mingyang in autumn.

"Why?" Although Yu Yuanfan didn't care much about the waiting half a year, he thought it was strange that Chen Mingluo would have such an arrangement, so he asked about the reason why he was so handsome.

"When cooperating with others, there is no way to change what has been decided." Chen Mingluo replied.

"Oh—" Yu Yuanfan said oh, and didn't say anything else.

After Chen Mingluo invited Yu’s father and daughter to dinner at noon, he sent them away.

In recent days, Fatty White has informed him again, saying that external funds have already begun to penetrate into Hong Kong slowly. It is estimated that it is a sign of Soros and others' return to Hong Kong. Chen Mingluo must be prepared and everyone will enter the Hong Kong market together for a walk.

Chen Mingluo naturally attaches great importance to such information. Although the central government supports the Hong Kong SAR government to crack down on financial speculation, Hong Kong was a free market for international financial tycoons such as Soros at that time, and you must not let funds flow freely. Since the fat white man has the courage to wade into this muddy water, there are naturally support from major forces behind it. After all, the voices made by forces in China are not completely unified, and everyone has their own interests.

With the help of the showdown between the SAR government and Soros, many people want to make some money in it.

However, there is no real ability to make money at this level and it was impossible to do it at that time, so the fat white man chose to cooperate with Chen Mingluo because they unanimously agreed that Chen Mingluo was a genius in this regard.

Chen Mingluo carefully analyzed Soros' offensive techniques and mastered his basic principles of action. He is now more confident, so he raised a lot of funds to do this.

However, Chen Mingluo also told Yang Jier that Yu Yuanfan came to ask him to invest in Mingyang. "This matter is closely related to my father. Didn't I tell you before that there was an unfinished building converted into a comprehensive shopping mall? If you invest in this matter, you will make a profit or lose anyway."

"It's not impossible, but I still want to mess with you in the stock market." Yang Jier felt that being a physical entity was not exciting enough.

"In this case, there will be a chance in front of you. You can follow me to see it." Chen Mingluo thought to himself that since Yang Jier was interested in this, it would be impossible to take her one.

In fact, this time Chen Mingluo planned to integrate his own funds, Yang Jier's funds, Liu Qingmei and Yu Zilan's funds, and then use all his own industries as collateral to borrow money to gain more funds. He fought hard and earned himself once.

Yang Jier was not very clear about this matter, so she asked about what happened last year.

"Last year, the situation was a bit more complicated. Soros suddenly shorted Hong Kong dollars in New York at twelve o'clock in the middle of the night. The so-called short selling means lending a stock from a securities company, selling it first at a price of 100 yuan today, and buying it tomorrow when the stock price falls to 60 yuan, and then returning the stock to the securities company. Since it was sold for 100 yuan and 60 yuan, he made 40 yuan in between." Chen Mingluo said to Yang Jier.

Most people have to make money by selling stocks, and short selling requires waiting for the stock price to fall before they can make money.

At that time, Soros wanted to short the Hong Kong dollar to snipe the Hong Kong dollar and bet on the decline of the Hong Kong dollar. This principle is the same as shorting stocks. You can make money as long as the Hong Kong dollar falls, but Soros is not reasonable at all because Hong Kong's exchange rate system is very strange. He does not simply fixed the exchange rate, but contacts the US dollar exchange rate.

The so-called fixed exchange rate means that the government sets a foreign exchange price, such as one dollar for six yuan.

If the price of the US dollar is high, the government will sell the US dollar to suppress the price of the US dollar and buy RMB to raise the price to adjust it. The government will maintain this exchange rate by buying and selling US dollar foreign exchange and maintain one dollar for six yuan.

But Hong Kong is not. Hong Kong is linked to the exchange rate, which is different from the fixed exchange rate. That is, the three banknote issuing banks in Hong Kong, including HSBC, Standard Chartered Bank, and Bank of China. As long as they want to issue Hong Kong dollars, they must deposit US dollars to the Hong Kong Monetary Authority first. That is to say, they must deposit US$100 to the Monetary Authority before the bank can issue 750 Hong Kong dollars.

If you don’t save US dollars, you can’t issue Hong Kong dollars. This is the linked exchange rate, which is almost the only one in the world.

This is different from the mainland. Domestic issuance of RMB does not require depositing US dollars. Theoretically, the domestic government can print as much RMB as it wants, but Hong Kong is not. Hong Kong must deposit US dollars to issue Hong Kong dollars.

From this point of view, the Hong Kong dollar is actually a coupon for the US dollar.

"Since the Hong Kong dollar is a veiled dollar, how could Soros short? How could he fight against the dollar? How could he use the dollar to snipe the dollar?" Yang Jier felt a little incredible after hearing this. Unless Soros doesn't want to live, if he does that, the US government will definitely arrest him.

"It is naturally unreasonable to look at it like this. Soros must use different currencies to snipe, so he can't succeed at all, but the result really scares everyone and thinks it's bad, Soros is going to snipe us." Chen Mingluo said, "So the Hong Kong Monetary Authority made a decision on the spot, and it was not advisable to lend it. In other words, Soros shorted the Hong Kong dollar today, and he would buy back the Hong Kong dollar tomorrow to pay back. But he sold the Hong Kong dollar today and told him that he could not buy Hong Kong dollars when he paid it tomorrow and could not pay back the debt. Soros was just defaulting and had to pay the fine. Then he failed to snipe the Hong Kong dollar. Therefore, in order to prevent Soros from getting the Hong Kong dollar, the Hong Kong Monetary Authority sold a large number of US dollars to buy Hong Kong dollars, and bought all the Hong Kong dollars on the market, so that Soros could not buy Hong Kong dollars and could not pay back the money."

The result of this is naturally that there is no Hong Kong dollars on the market, and Soros can no longer buy Hong Kong dollars.

"Since that's the case, how could Soros win?" Yang Jier asked with some doubts.

"But have you ever thought about it. The Hong Kong dollar is gone. What should I do if the Hong Kong dollar interest rate is gone?" Chen Mingluo asked, "It will definitely rise, right? Because there is no Hong Kong dollar, what should I do if I need Hong Kong dollars? I have to borrow Hong Kong dollars with high interest rates, right? So the result of the Hong Kong Monetary Authority's recovery of Hong Kong dollars is that the market is short of Hong Kong dollars, so the Hong Kong dollar interest rate immediately rose. Do you know how much it has risen? The interest rate in one day rose to a sky-high price of 280%.

When Yang Jier heard this, she immediately understood, "Oh, the deposit interest rate has risen so much. According to the conventional relationship between the rise in deposit interest rate and the stock market fell, then the Hong Kong stock market naturally fell in response. It turns out that this is Soros' real purpose."

"That's right, that's the reason." Chen Mingluo nodded and replied.

In fact, the Hong Kong stock market meeting at that time was just two words, and it fell sharply!

Before Soros sniped the Hong Kong dollar, he had already sold 80,000 contracts for the Hang Seng Index. What was he betting on? He bet on the plunge of the Hang Seng Index.

What is short selling? He first borrowed 80,000 Hang Seng Index contracts to sell at a high price, and waited for the Hang Seng Index to fall to a low tomorrow and then bought 80,000 contracts to return them. So Soros did not expect to make money by speculating on foreign exchange, but by shorting the Hang Seng Index contracts to make money by falling stock prices.

The result of this was that on October 23 last year, when the Hong Kong dollar interest rate increased to 280%, the stock price of the Hong Kong stock market plummeted, and the stock market value of US$40 billion disappeared.

Soros' sniping also caused the Hong Kong Hang Seng Index to fall from a peak of 16673 points to 6660 points since last year, down 60%. With just such a simple move, the Hong Kong Monetary Authority completely failed.

So much so that when the Hong Kong people heard Soros, they were afraid to die. Even many years later, the Hang Seng Index began to fluctuate sharply once it rose to 16,700, which was called Soros, which was frightened by Soros.

"Since that's the case, why does the Hong Kong Monetary Authority still have to defend the Hong Kong dollar?" Although Yang Jier understood the twists and turns, she still couldn't figure out the reason.

Chen Mingluo's words have already explained what Soros's means of making money. Why does the Hong Kong Monetary Authority have to spend a lot of effort to do this even though it knows that defending the Hong Kong dollar has no effect? ​​Yang Jier can't figure out this problem.

"This is a question of face." Chen Mingluo replied, "If even the Hong Kong dollar can be played with, what kind of face does the Hong Kong SAR government have?"

"What a great face, worth 40 billion US dollars-" After hearing this, Yang Jier couldn't help but feel deeply moved.

Think about the knowledge you have learned from books and the theories that have been regarded as the norms, they seem to be that real. They seem to have many problems. They seem to be very simple on the surface, but if you study them carefully, you feel that they are not that simple.
Chapter completed!