Hong Kong 1980: The Savage Era

Chapter 558-560 [End of the First Sniper Attack] (New Book, Please Collect)
International speculators continued to sell stocks, while Luo Qihong was desperately buying them. However, since international speculators wanted to suppress the stock market, they would only sell at low prices. For example, Hutchison Whampoa's stock price was 50% lower than its peak price.

Seeing the price data on the screen constantly updated, Luo Qihong's smile became even brighter. Although he could obviously sit back and do nothing, waiting for the stock market to hit bottom before buying at the bottom, so that he could pick up cheaper high-quality stocks, he still refused.

There is a difference between international speculators defeating the four Asian tigers and defeating the four Asian dragons. For Luo Qihong, defeating the international speculators is also a matter of pride. It is no big deal to make less money.

Anyway, he can make money in the American market as he pleases. At the same time, he can suppress the arrogance of the Americans and make it easier for him to invest in the United States in the future.

On October 10, after a two-day weekend break, the Americans began to directly attack companies under the Zhaoan Group through verbal attacks, attempting to prevent Hong Kong investors from following suit and thus reduce the pressure of their sniping.

But the Americans underestimated the confidence of Hong Kong people in Luo Qihong, and the Zhaoan Group held a press conference in response to the rumors, saying that the group has sufficient funds and currently still has tens of billions of Hong Kong dollars in cash flow. If you don’t believe it, you can observe the group’s next move.

Zhaoan Group took practical action to dispel the rumors. In just one morning, it spent HK$20.63 billion to buy a large number of blue-chip stocks.

Seeing that the rumors did not work, international speculators continued to increase their selling of Hong Kong dollars, and the Financial Supervisory Commission also increased its efforts to recover the Hong Kong dollars. For a time, international speculators lost their advantage and fell into a tense battle.

The next day, international speculators increased the intensity of their selling and the market panicked again.

Zhaoan Group Corporation.

Luo Qihong wrote and drew on the white paper for a while, and said happily, "This should be Soros and his team's last struggle. As long as we survive today, the international speculators will definitely flee."

Of course they will come back, and the next sniper battle will be more difficult. However, for the time being, Hong Kong is the only one that can withstand Soros’ first sniper attack.

Bai Jinyan said, "The Hang Seng Index is currently around 11200 points. Given the intensity of Soros's attack, a 500-point drop is certain. If it breaks through 10000 points, will Soros and his team change their minds about withdrawing?"

Luo Qihong shook his head. "No. Soros is a veteran in finance. He knows he can't do it, so he won't force it."

"In fact, financial warfare is about money and people's hearts. Withdraw first to let the Hang Seng Index fluctuate for some time, and then come back the second time to scare people."

"Then we can't let them break through 10000 points. The group still has plenty of funds, so maintaining 10000 points should not be a problem." Bai Jinyan suddenly became confident.

"Increasing the speed of stock acquisition and the number of accounts will create a phenomenon of active confrontation." Luo Qihong is also worried that the Hang Seng Index will break through 10,000 points, which will definitely have a serious impact on the stock prices and market values ​​of its subsidiaries.

After waiting for the closing time, the Hang Seng Index was at 10520 points. Although it fell by 680 points, many investors saw hope for a rebound in the stock market tomorrow.

Inside the office of Zhaoan Group.

Luo Qihong's mouth curled up slightly. He was the only capitalist in Hong Kong who dared to use so much cash to push up stock prices. Li Jiacheng could only dare to buy a large number of stocks of his own company. Others could not do it and it was impossible for them to do it.

"We bought HK$32.1 billion today, mainly blue-chip stocks, with a small portion being shares of large real estate companies," Bai Jinyan reported.

"It was a close call! I just don't know if those speculators will come again this year." Luo Qihong sighed.

The pressure was too great, compared to him having to deal with several large and small foundations alone, at least he had to deal with one large foundation.

These American foundations are not pushovers. If Luo Qihong had not made prior preparations, they would have been the same as Li Jiacheng and his men. It would have been difficult enough to defend their own territories, so how could they have the spare energy to push up the stock market?

"Will we continue buying tomorrow?" Bai Jinyan asked.

Luo Qihong shook his head and said, "As long as the international speculators withdraw, we will stop. At the same time, we need to organize the results of the past few days and announce them to the public." Bai Jinyan understood what Luo Qihong meant. It was about earning a reputation. How could you hide the good deeds you have done from others?

"I guess that if international speculators withdraw, they will either move to South Korea or Japan, with South Korea being the most likely choice," Luo Qihong said calmly.

Bai Jinyan thought for a moment and said, "Japan's economy is much larger than South Korea's. They have encountered a tough problem in Hong Kong, and they will probably choose a soft bone to chew next. So can we get a piece of the pie?"

It is conscienceless to collude with international speculators in Hong Kong, but making money from South Korea is real money making without any psychological burden.

"Of course we have to go. If we don't go and earn some money, how can we withstand the second sniping attack from the Americans?" Luo Qihong laughed.

South Korea, also one of the four Asian Tigers, is much worse than Hong Kong, and those so-called chaebols are heavily in debt. Some companies even have debts that exceed 400% of their assets, which is a curiosity in the business world.

Luo Qihong also couldn't understand, why didn't banks conduct any investigation before lending money to these companies?
"Then I will arrange things for the company immediately and try to earn more." Bai Jinyan turned around and left the office.

In fact, Luo Qihong had already made preparations in South Korea, waiting for Soros to come and challenge him. If the Korean won exchange rate fell by 50%, he could earn $6 million.

As for those companies in South Korea, Luo Qihong plans to use the principal left in South Korea to buy stocks at low prices and take the opportunity to become an important shareholder of Samsung, Hyundai, LG and other groups.

Of course, Luo Qihong didn't have much time to care about Korean affairs and left it entirely to York because he still had to clean up the mess after the storm.

When the stock market opened the next morning, international speculators did not make any moves. The Hong Kong stock market experienced a technical rebound, but panic still shrouded investors.

The financial crisis swept across Hong Kong, the stock market plummeted, and the property market was not spared. Property transactions have fallen sharply, property speculation has almost disappeared, and cancellations of orders can be seen everywhere.

A luxury property of Cheung Kong Holdings was put on sale a few days before the storm hit, but now no one is buying it even with a 20% price reduction.

It can be seen that the property market has declined by more than 20%.

Luo Qihong convened a high-level meeting of the group to summarize the experience gained from this financial crisis and to prepare for the next visit of international speculators.

The length of this rest period depends entirely on how long South Korea can hold out. However, based on Luo Qihong's understanding of the South Korean economy, it is likely that it will not last more than half a month, or even succumb in a week.

That is why I am not sure whether international speculators will come again.

After the financial crisis, Hong Kong was in ruins and many companies laid off employees in an attempt to survive.

Companies owned by the Roche family are also in turmoil as employees worry about being suddenly fired and unable to bear the pressure of life.

After learning about this situation, Luo Qihong asked his companies to respond quickly and announced that the company would not fire any employees, allowing everyone to work with peace of mind.

At the same time, companies such as Peregrine International and Citybus are facing difficulties.

Originally, Luo Qihong wanted to give the Citybus company to Liu Luanxiong, but this guy also lost a lot in the financial crisis. Although China Bus Company made some profits, Liu Luanxiong did not dare to use it for his own benefit, after all, the other companies he owned were in trouble.

(End of this chapter)