Chapter 938 - Soros’s motives
Chapter 938 – Soros’s motives
“Boss, are we going to attack Hong Kong? I think we should attack South Korea, Japan, or even Taiwan now. Hong Kong is prepared, and we might lose.” Drucken Miller said.
“What about the rest? Are you all thinking of the same thing?” Soros looked at the rest.
“I feel we should target Japan next. Lots of brokerages and financial institutions in Japan had bankrupted, and it’s easy to crash the stock market. Also, the Yen rate had been rising these few years, and it should not be a problem to depreciate it to 150:1.”
“I think we should target South Korea first. South Korea has a lower foreign reserve compared to Japan, and we can win easier. Our relationship with Feng Yu is not as close as before, and our funds might not be enough to take down Japan. Our risk will be higher, whereas it will be easier for us to succeed if we attack South Korea.”
“I also think we should pick South Korea, and object to attacking Hong Kong now. There are lots of Tycoons in Hong Kong, and Hong Kong is the financial center of Asia. It might be a small place, but its economy is much stronger than in many countries. It is too risky to attack Hong Kong now, and don’t forget, Hong Kong does not only have a financial expert, but it also has enough funds.”
None of Soros’s four fund managers supported him, and three of them suggest attacking South Korea next. This made Soros hesitates.
Soros wants to attack Hong Kong, and he knows he cannot make money from Hong Kong’s currency. HKD is using the Linked Exchange Rate System and is linked to USD. Hong Kong also has a strong foreign reserve, and with so many tycoons there, Soros’s funds will not profit from shorting HKD.
“I had never said we would be seeking profits from the Forex market. What do you all think of Hong Kong’s stock market? Can we win against them in their stock market?”
Profiting only from the stock market? The four fund managers looked at each other and were deep in thoughts.
……
“Uncle Fu, after we settled the contracts, get ready the funds to stabilize Hong Kong’s financial market.”
“Manager Feng, I am in the financial industry for many years, and how come I can’t see the signs that HKD will fall? Unless they can make USD depreciate, HKD will not be in danger. But if USD depreciates, they will also lose money.” Fu Rongqu said proudly.
Fu Rongqi looked at his second brother. “You can only see this point, and you dare to say it out? Didn’t you notice how Soros attacked those countries? He is an expert in using leverage and can use the least capital to achieve what you can do with a large fund. Also, he is attacking the interest, stocks, and currency at the same time, and will profit as long as he wins in one of the three areas!”
With your investment experience, you dare to claim you are in the industry for many years? Do you still want to teach Feng Yu what to do?!
Fu Guangzheng asked. “Uncle, you are saying that Soros had never targeted making money from the currency? Is he making use of the currency to push the interest rates up and cause the stock market to crash? They are seeking profits from the stock markets?”
Fu Rongqi looked at his nephew. He was surprised Fu Guangzheng knows about this. But he thought for a while and felt it must be Feng Yu or Professor Liang that told him this.”
“How much funds do Soros have? Hong Kong has a strong reserve, and we don’t need to worry about him. Superman Li had promised to stabilize the stock market, and with him around, it should be sufficient.” Fu Rongqu retorted.
“How much money do you think Superman Li is willing to fork out? Do you think Soros only has a Quantum fund? Let me ask you. If Wind and Rain Consulting Firm had guaranteed 10% returns and only charges 10% commissions, will you let them invest for you?”
Fu Rongqu kept quiet. If Wind and Rain Consulting gave him this option, he would surely let them manage his funds. But since when did Wind and Rain Consulting charges low commissions? Wind and Rain Consulting had been the most expensive brokerage in Hong Kong.
That means Soros’s funds are not limited to tens of billion USD. If he used all funds to attack Hong Kong, he might crash Hong Kong’s stock market!
“Uncle Fu, our main focus is the Hang Seng index and the blue chips. If they dare to short HKD, we will buy in blue chips shares to push up the stock index.”
“But if we do this, we will not make any money and might even suffer losses.” Fu Rongqu argued.
Feng Yu did not say anything. Fu Rongqu is right. It will be a lose-lose situation for both parties, and Feng Yu has no right to ask the rest to do this. Feng Yu looked at Fu Rongqi and wondered if he had asked Fu Rongqu to say those things purposely.
“Not necessarily. We might not suffer losses if we managed our funds well. Also, we are only making a stance to scare Soros, and might not need to go all out against him.”
Fu Rongqi also does not want to face Soros heads on. It is not that he is not confident, but in the end, it will be a lose-lose situation for both parties. It’s not easy for the Fu Family to build up their wealth, and he does not want to lose it.
If they can continue to attack South Korea and Japan, the Fu family’s assets might surpass Superman Li. Fu Rongqi will also return to the second position of the top Hong Kong tycoon’s list!
Feng Yu nodded. That’s right. If they managed the funds well, they might not lose money and can make Soros suffer massive losses. This will prevent him from eyeing Hong Kong all the time.
Of course, this will be beneficial for Feng Yu as after beating Quantum Fund, more people will invest with their company, and they can make more commission.
……
Early October, Feng Yu had completed his settlements for his Forex future contracts, and he purposely asked Soros which country or region to attack next.
Soros told Feng Yu without hesitation that Taiwan is a good choice.
Feng Yu cursed in his heart. Bullshit! You tried to trick me with Taiwan previously, and you are doing it again?!
Taiwan is similar to Hong Kong, and it’s not easy to attack its currency. Taiwan’s foreign reserve is stronger than Singapore, Malaysia, and Thailand, and still have high gold reserves. If they had to go head-on with their funds, Soros’s Quantum Fund would lose.
But Soros has other tricks up his sleeves. For example, he can make use of the media to spread fake news to scare foreign investors out of Taiwan.
Can Taiwan save their financial market? Yes, but at this time, Taiwan’s Central Bank announced that they would stop supporting TWD. This is because they believe that even if TWD depreciates, it will not fall by a lot, and Taiwan’s economy will not be affected. At the same time, they can also control inflation.
This announcement gave Soros an opportunity!