Reborn Capital Madman

The reason why the Hong Kong government announced that the Hong Kong dollar will float freely in the international foreign exchange market with the British pound is because the Bretton Woods system has further collapsed.

Last year, in August 1971, after US President Nixon announced the cessation of US dollar exchange for gold, the Bretton Woods system began to collapse.

However, even if the Bretton Woods system exposes various unsolvable problems, the Western capitalist world does need such a mechanism.

So, at the end of last year, the G10 held a meeting at the Smithsonian Institution in the United States, attempting to re-establish a new quasi-Bretton Woods system.

The outcome of this conference is known as the Smithsonian Agreement,

Its content roughly includes:

The dollar depreciated against gold, and the official price per ounce of gold increased from thirty-five dollars to thirty-eight dollars;

Adjust the exchange rate, the average US dollar depreciates by 10%, and other major European and American currencies appreciate;

The allowable fluctuation range of non-reserve currencies against the US dollar is adjusted from positive and negative one percent to positive and negative two-25 percent;

The United States cancels 10% of temporary import surcharges.

To put it bluntly, the Smithsonian Agreement also wants to maintain a fixed exchange rate system like the Bretton Woods system.

Unfortunately, Western economic experts are not omniscient and omnipotent. They did not expect that the energy of the depreciation of the US dollar was not released completely, but also became increasingly violent.

As a result, now, Britain could not bear it and announced that it would give up the obligation to maintain a fixed exchange rate stipulated in the Smithsonian Agreement and implement a floating exchange rate.

As a British colony, the Hong Kong dollar, which had been linked to the pound for a long time, naturally followed.

But the problem is that the Hong Kong government has done the right thing in terms of rule, but has chosen the wrong direction in terms of economy.

You should know that even if the US dollar is no longer a "US dollar", it is still the world's main settlement currency; in comparison, the pound can be forced to raise its shape, but the Hong Kong dollar is no longer suitable for following.

The current chaos in Xiangjiang's financial system is proof of this.

Gao Xian, who had long expected this result, had already suspended its foreign currency business in advance for half a month, waiting for the Hong Kong government, who was ineffective in handling affairs to correct the mistakes.

Not only Gao Xian is so smart, but those big companies that stand tall and look far have also made preparations first and even postponed the annual shareholders' meeting and wanted to adjust their dividends.

After all, at this critical moment, it is always good to have more cash in your hands.

Judging from the reactions of large companies, the uncertainty of the Hong Kong dollar and the stock market that will eventually burst will not be able to defeat them.

If you don’t even have this knowledge, big companies will not deserve to become big companies.

The real hurdle is only a sudden event like the global oil crisis with no previous examples.

Gao Xian took advantage of this rare free time to complete all his roles in the movie "The Warlord".

I have to say that Li Hanxiang, a great director, has rich experience and not only has the ability to schedule, but also greatly reduces the burden on Gao Xian by cleverly using a stand-in.

With the full support of Shanghua Culture, Li Hanxiang completed the "Great Warlord" in less than two weeks with the efficiency comparable to the "Seven Days of a Cantonese film" in the Xiangjiang film industry.

Li Hanxiang, who was still unsatisfied, gave Gao Xian another idea, "Mr. Gao, the undersea tunnel is about to be officially put into use. We might as well take advantage of the opening day to carry out publicity. For example, you take the car with the shape in the movie.

Through the undersea tunnel.”

Speaking of which, when the Xiangjiang Undersea Tunnel was finally built, Gao Xian also participated in the financing when the funds were tight, and he was considered a small shareholder.

Therefore, when Li Hanxiang made this suggestion, Gao Xian became interested in the lively day of the undersea tunnel opening.

Anyway, this publicity activity was the last shift, Gao Xian thought about it and then agreed happily.

Li Hanxiang left with satisfaction, and Deputy General Manager of Gao Yi, Ye Licheng, walked in quickly, "Boss, Finance Department Xia Dingji invites you to attend the meeting to discuss how to resolve the current chaos in the financial system."

Gao Xian nodded, "They are on the road of Zhengzhizhijing, and they can't walk anymore."

Ye Licheng said deeply: "Foreign funds have become an important driving force for the bull market in the Hong Kong stock market. However, when the Hong Kong dollar floats freely with the pound exchange rate, they dare not come in. Now the exchange is too deserted."

"It's good if the stock market is down and weak," Gao Xian asked casually after quipping, "What is the Hang Seng Index now?"

"In the past half month, the Hang Seng Index has continued to fall by more than 100 points, and the amplitude is not small." Ye Licheng sighed, "You must know, before the 'June 18th Rain Disaster', the Hang Seng Index was still more than 700.

The point is doubled compared to the beginning of the year.”

"Don't many people outside say that this is an inevitable adjustment." Gao Xian said playfully: "When this adjustment period passes, the stock market will definitely explode. The Hang Seng Index will return to more than 700 points, I think it will exceed one

It’s very possible to do a thousand points.”

Ye Licheng smiled and said, "Of course it's the best. Our Gaoyi listing and issuing department, and there are still many customers waiting to be listed."

Gao Xian thought about it and instructed: "Add to list the priority of companies whose main business is real estate. I am worried that this bull market, there are not many good markets left, so don't mislead customers.

.”

"I understand." Ye Licheng nodded and agreed, "The milk company suddenly entered the real estate industry, almost stimulating the real estate stocks to the sky. We really have to seize this rare opportunity."

...

The meeting held by the Hong Kong Government Finance Department Xia Dingji invited elites from the business community in Hong Kong. The purpose was self-evident and wanted to solicit opinions widely.

Unsurprisingly, Gao Xian met Jardine Henry Kessick on this occasion.

You know, since Land Development launched a malicious acquisition of milk company, this is the first time Gao Xian and Henry Kessker met on the same occasion.

Originally, even if it was a malicious acquisition, everyone could do the superficial skills of business and have a smile, but because of rumors, they would inevitably be mixed with personal grudges. It would be strange if the eyes of each other were pure and good.

No, let alone laugh.

After the meeting officially began, the Finance Department Xia Dingji sincerely asked everyone here to express their opinions.

Gao Xian, who often discusses economic issues with Xia Dingji, knows what the other party wants to do, but he is concerned about what he wants to do.

In short, Xia Dingji wants to bind the Hong Kong dollar to the US dollar, but the Hong Kong government currently has only pounds and no US dollars for foreign exchange reserves, so it must sell pounds and buy US dollars; but at the same time, it cannot completely abandon pounds because London still has

It doesn't have approval, and no matter how you choose, it will take a certain amount of time.

Seeing the speeches of the previous people, Xia Dingji frowned so much that he simply spoke.

"Improve it, although London has always emphasized that it will guarantee the value of the pound, every time the pound depreciates, we are abandoned by Xiangjiang, which has dragged down Xiangjiang's capital outflow and inflation."

"I think that in order to reverse the current chaos in the financial system, the only way is to change the Hong Kong dollar exchange rate to peg the US dollar."

"Of course, I know that the government's US dollar reserves are not sufficient."

"For this reason, I am willing to lend the 20 million US dollars of foreign exchange surplus from Gao's Group to the official government for emergency response free of charge."

"Although this number is a drop in the bucket, it is a reflection of my confidence in the leadership of the government to overcome the difficulties in the present."

After hearing Gao Xian's words, Xia Dingji immediately slapped the table with joy, "David, good, I will definitely ask the Governor to give you the Justice of Peace to praise."