Hong Kong 1980: The Savage Era

Chapter 564 Chapter 566 [It has reached the final moment] (New book, please collect it)
Early July.

Hong Kong listed companies have announced their interim results one after another. The profits of conglomerates such as Swire and HSBC have fallen sharply, causing rumors to spread in the Hong Kong market, causing panic and investors to be terrified.

This is naturally the best time for international speculators to attack Hong Kong again.

As a result, Quantum Fund, hedge funds and several investment banks launched an attack on Hong Kong's foreign exchange market and stock futures market, frantically selling Hong Kong dollars, stocks and futures in the market.

On the 5th alone, more than 200 billion Hong Kong dollars were sold, and the HKMA had to resort to the old method of raising interest rates and recovering Hong Kong dollars.

On the 6th, Luo Qihong was sitting at his desk, waiting for the stock market to open. The screen jumped and the Hang Seng Index plunged directly from 10823 points to 10707 points.

"The screen flashed and the stock price dropped 116 points directly. These international speculators are amazing." Luo Qihong couldn't help but sigh.

This time, the international speculators came prepared and spread rumors about Luo Qihong's companies in advance, severely undermining the public's confidence in those companies. As a result, since the 5th, the share price of China Gas Company has fallen by 1.4%, and the share price of Zhaoan Real Estate Company has fallen by 2.7%.
Even though Zhao An Group, China Gas Company and others urgently refuted the rumors, it still did not have much effect. However, it did not have much impact on the strength of Zhao An Group and other companies. As for the directors, Luo Qihong's name was a guarantee.

Luo Qihong did not panic. He mobilized 50 billion Hong Kong dollars in cash from the books and began to slowly buy shares of various listed companies under his control, preparing to increase his shareholding by about 50%.

Based on some information analysis, the think tank concluded that international speculators would only make profits if the Hang Seng Index fell to 8000 points. In fact, it is indeed not easy to maintain the Hang Seng Index at 8000 points.

Experts speculate that the Hang Seng Index falling to 7000 points will be the limit that Hong Kong's banking system can withstand.

If the banks cannot hold on, they will sell off a large amount of mortgage assets, small and medium-sized banks will face a wave of bankruptcy, and there will also be a vicious selling wave in the stock market and local cities. In this way, Hong Kong will become the next "South Korea".

Of course, the Hong Kong government will not sit idly by and watch this situation unfold, and will definitely intervene.

Luo Qihong believes that if the Hang Seng Index falls to 7500 points, the Hong Kong government will be in trouble, just as it happened in the previous life.

Luo Qihong plans to close the Hang Seng Index at 9000 points. The previous plan to maintain 10000 points is no longer realistic, and now the goal is to maintain 8500 points.

He might not be able to keep it by himself, so he could only do his best.

A few days later, the Hang Seng Index fell 213 points to 7703 points.

This position is already very dangerous, and if you are not careful you will be penetrated.

At noon, the Hong Kong government held a press conference. The Financial Secretary, Mr. Tsang, denounced the behavior of international speculators and said that Hong Kong is not an ATM and the Hong Kong government has the strength to repel the speculators.

When the market opened in the afternoon, the Hong Kong government mobilized foreign exchange funds and public funds to enter the stock market and futures market, absorbing large amounts of money, and the Hang Seng Index quickly rebounded.

Hengan Investment Company Office.

President He Yaowu knocked on the door and came in, holding a pile of documents in his hands.

This man graduated from Harvard University with a degree in finance. He was 38 years old at the time. He had worked as an investment manager at Citibank in the United States. He had participated in many large projects and had extensive work experience.

"Boss, here are some documents that need your signature." He Yaowu sat down and continued, "The Hong Kong government has already taken action. According to reliable sources, there is HK$100 billion available for investment this afternoon, and the plan is to raise the Hang Seng Index to above 8000 points."

"Now that the Hong Kong government has taken action, there is not much room for maneuver. Let's get started and buy all the companies on the list." Luo Qihong put down the documents, looked at the watch on his wrist, and said, "There is still one hour until the market closes at 4 o'clock, so let's invest 1 billion. You can choose some companies from the list to buy, and make sure to use up the 30 billion."

"Yes! I'll arrange it right away." He Yaowu turned around, stood up and left the office.

He had sufficient cash flow. Hengan Investment Company alone had HK$300 billion on its books, which was used to prepare for the decisive battle. Of course, when the decisive battle came, Luo Qihong alone could not withstand the attacks of so many foundations and investment banks. He could still hold out for a while with the small fights in the early stages.

At 4 p.m., the exchange rang the bell to close the market. The Hang Seng Index rebounded 2 points in 416.3 hours in the afternoon to 8085.8 points, an increase of more than 5.5%.

Luo Qihong sorted out the amount of funds consumed by Hengan Investment Company during the financial war, which was more than 100 billion Hong Kong dollars (including that in 97), while that of Zhaoan Group was even more, probably exceeding 200 billion Hong Kong dollars.

Today, the Hong Kong stock market has a market value of more than 2 trillion yuan, and the value of the stocks held by his companies already accounts for almost 2%. If he continues to play, the share may exceed 5%.

When the financial war was over, Luo Qihong felt that this was a big problem. He could not sell off in large quantities directly, but could only sell them little by little at the right price, which took too much time.

He kept pondering until the end of the get off work day, and finally came to the conclusion that the overall situation was more important. He would first repel those international speculators. No matter what, there was no way this batch of stocks would suffer losses.

After 10 days of fierce fighting, the Hong Kong government and international speculators had a back-and-forth battle, and the Hang Seng Index rebounded to 24 points on the 9000th. However, this does not mean the failure of Soros and others, but that the Hong Kong government has the upper hand.

Only HK$300 billion of Hengan Investment Company's HK$62 billion cash reserves remained, barely enough for two days.

"Boss, should we continue to transfer funds from other places? Or convert the 20 billion US dollars in reserve into Hong Kong dollars?" He Yaowu suggested anxiously.

If the Hong Kong government loses, it will be hard to say when Heng'an Investment Company will be able to earn back the tens of billions of cash it has invested. Although this is idle funds, the company also has many unimplemented plans and cannot afford to suffer any losses in Hong Kong.

Luo Qihong waved his hand and said, "No need! Dehe Real Estate has similar funds, you can move them over first."

Hearing this, He Yaowu calmed down and breathed a sigh of relief unconsciously. The boss was really amazing, actually having so much cash.

"Take a break tomorrow morning and go back to work in the afternoon. We will only be using 10 billion yuan. We need to create the appearance that we are short of funds but are trying hard to cover it up." Luo Qihong ordered.

The decisive battle is approaching, and he has to use some tricks, and he suspects Soros has a backup plan.

"Yes! This kind of thing is very simple." He Yaowu understood the purpose of his boss's doing this, to confuse the enemy and get the final trump card out.

On August 8, the actions of Hengan Investment Company attracted much attention. The Hong Kong government's God of Wealth even called personally to inquire about the situation. After all, with help from others, the pressure on the Hong Kong government would be less.

Luo Qihong explained the reason, and the God of Wealth was very supportive of Luo Qihong's strategy, so rumors spread in the morning.

Some people say that Luo Qihong has run out of money and will eventually be unable to withstand the joint attack of international speculators.

Some people also believe in Luo Qihong and think that Luo Qihong is raising funds and preparing to do something big.

The office of Cheung Kong Holdings.

Li Zeju rushed into the office and said excitedly, "Luo Qihong's cash flow has finally dried up. This overall situation cannot be easily changed by one person."

Li Jiacheng frowned deeply and taught him a lesson, "Luo Qihong is not saving himself, he is saving all of us. It will be of no benefit to us if Xiangjiang is defeated."

"Hutchison Whampoa's market value has dropped by 3-4%, and Cheung Kong Holdings has dropped by 45%. If it continues like this, a drop of 6% is possible. If it weren't for our poor cash flow, I would have wanted to get out and meet those speculators."

(End of this chapter)