novelones Chapter 293 The story of the boy who cried wolf, Wang Lei arrives in the cold country
Chapter 293 The story of the boy who cried wolf, Wang Lei arrives in the cold country
Robert was not convinced when he heard that his boss was so optimistic about a person.
But he should still say calmly:
"If he can get the boss's true message, he will definitely be able to deal with Lao Suo easily."
Wang Lei smiled, knowing that Robert must be a little unconvinced, so he continued to explain:
"The president accepted my opinion and gave him full responsibility to stop Lao Suo."
"You know how bad Goose's economy is. Although it has made a fortune through energy trading in the past few years, it is already riddled with holes."
"Under normal circumstances, it would be no problem for Lao Suo to win the ruble."
“But what he met was the Great Emperor, a ruthless man who didn’t talk much, who would rather injure himself eight hundred times to exchange injuries for injuries!
As long as he is here, Lao Suo and other short sellers will not be able to take away a penny from the big goose! "
Robert heard the hidden meaning of Wang Lei's words.
What do they fear most?
The basis of short selling is a free market economy.
If it becomes a state intervention, countries with weak international strength will have limited counterattack capabilities, but if it is a country like Big Goose, they are likely to choose to turn the table and refuse to pay.
The prerequisite for Laosuo's large-scale selling of rubles is that someone takes over. If the ruble falls directly below the level, no one will take over the rubles sold, which is equivalent to the funds being frozen.
If Big Goose stops trading in the treasury bond market and begins to refuse to admit its debt, Lao Suo can only hold the ruble that has greatly depreciated in tears and cannot exchange the money for treasury bonds.
Although doing so would be a failure and would cause the country's credibility to plummet, it would undoubtedly protect the country's capital.
"Does he really have the courage to do this?"
"There must be some. Just keep an eye on it. It's also for your own good that we don't let you go to the big goose."
Robert on the other end of the phone was convinced. After Wang Lei's analysis, he immediately understood the other party's good intentions.
"Then I will continue to bully Han Guo."
In September 1996, short sellers such as Laosuo and Tiger Fund squeezed out the last bit of value from the Four Little Tigers of Dongzhou.
Carrying huge amounts of money, they moved forward from both ends and began to enter Big Goose and Hong Kong City.
Because of their lack of experience, people did not realize that the bears had already started their first round of attacks.
The stock market rose instead of falling despite the financial crisis, and the Hang Seng Index broke a new mark.
Reached an all-time high of 16000 points!
The entire Hong Kong financial market was filled with joy. People felt that after a short trough, the Hong Kong economy was back on track!
I didn’t realize at all that this was the period when international hedge funds were shorting the Hang Seng Index.
Even Charles and Guy regretted that the recent sell-off has been a bit intense, allowing many people to take advantage of it.
Seeing the stock price and housing prices rising at the same time, Chao Xiancong became more and more proud and frequently appeared on TV programs to slander Wang Zhengyi.
Suddenly fame and money came to him.
Just when people in Hong Kong feel that the crisis has passed and short sellers will not come to Hong Kong.
Laosuo and other international hot money began to sell Hong Kong dollars, as if they were going to aggressively attack the Hong Kong dollar exchange rate.
The financial authorities were lying if they were not nervous when faced with the crisis. They could not turn a blind eye to the tragic situation of the four little tigers. They were frightened and immediately chose to raise interest rates!
At noon on October 10, the financial authorities sharply raised the interbank lending rate to 23%!
While raising the cost of borrowing Hong Kong dollars for short sellers, it is strictly prohibited for any bank to lend Hong Kong dollars.
Director Ren believes that as long as the source of short sellers’ acquisition of Hong Kong dollars is curbed, this short selling can be curbed.
Raising interest rates means that funds will flow to banks. In addition to the appreciation of currency, the stock market and futures market are falling.
At this time, the financial authorities had not realized the seriousness of the problem. They only felt that as long as they maintained the exchange rate, they could resist the plunder of international hedging institutions.
It seems that the interest rate hike really had an effect, and the Hong Kong dollar exchange rate quickly returned to the warning line of 7.75.
A period of calm days made people think that the short sellers felt that there was no profit to be made and retreated.
But at this moment, Laosuo and other institutions sold Hong Kong dollars worth US$100 billion in the London foreign exchange market!
The Hong Kong dollar exchange rate took a turn for the worse again, falling below 7.75 again.
At this time, some bribed tabloids spread unfavorable news. It was rumored in the market that the Hong Kong government's linked exchange rate was about to be unprotected, and the Hong Kong dollar would continue to depreciate under the attack.
The financial authorities announced another interest rate hike, this time on deposit and loan rates, intending to further close the black market’s channels for obtaining Hong Kong dollars.
After spending a lot of foreign exchange reserves, the exchange rate rebounded again.
This fierce battle made people cheer.
Chao Xiancong, who had been silent for a while, stood up again and ridiculed Wang Zhengyi, making wild remarks on a TV show:
"We won this financial battle, we defended the exchange rate, and Lao Suo was nothing more than that."
After Lao Suo heard these words, not only was he not angry, but he praised the young man.
Everyone in Hong Kong feels they have won the financial battle.
Little did they know that this was all Lao Suohu's trick. They were completely fooled by the other party. They didn't even know they had been fooled, so how could they win?
Lao Suo sells Hong Kong dollars from time to time, which makes the financial authorities dare not relax at all.
The slightest turmoil in the currency market can cause a flurry of activity.
Under the pressure of high interest rates, the consequences are gradually showing up in stock prices.
The stock index dropped from 16000 to around 12000 points by the end of the year.
In the next six months, Lao Suo launched two more attacks on the Hong Kong dollar, and Director Ren responded by raising interest rates.
……
At this time, some sober-minded people in Han Kingdom also realized that something was wrong.
There was a bank manager named Yi Zhengxue who discovered that foreign capital was withdrawing collectively from Han Country.
He quit his good job amidst ridicule, gathered all his former big clients together, and passionately lobbied them to invest in his private equity.
Looking at the uncles and aunties gradually leaving the table, Yi Zhengxue felt disheartened, thinking that he would leave empty-handed.
Ordinary people do not have so many channels to collect information. They still live in the dream that the Great Cold Republic will become a developed country.
At this time, if you tell them that the economic crisis is coming, no one will believe them.
At this moment, applause came from the audience.
"Sir, I don't think I invited you."
"This is my boss's business card. If you are interested, you can call him at any time. I believe he will be very interested in what you have to say."
Yi Zhengxue looked at the gilded black dragon and was enveloped in a huge surprise.
"White Dragon Consortium, Wang Lei!"
"Hey, kid, why don't you continue talking? I'm very interested in your private placement."
Facing the uncle who raised questions in the audience, he quickly apologized:
"Uncle, that's it for today. I suddenly remembered that I have something important to do. If you are interested, you can contact me at any time."
As he spoke, he walked out.