Chapter 940 - First win against Soros
Chapter 940 – First win against Soros
“HKD cannot hold on any longer and will be unlinked from USD. It is estimated to be depreciating by at least 30%!”
“The Hang Seng Index will plummet below 8,000 points. Run before it’s too late!”
“Many listed companies are suspected of falsifying their financial reports, and will be ordered to halt trading!”
“The financial crisis is going to affect Hong Kong! It will be safer to change all your money to USD!”
“Hong Kong Monetary Authority must increase the interest rate to stop those speculators from shorting HKD!”
……
The next day, such articles start to appear in many Hong Kong media and news programs. All these reports are painting a bad picture of Hong Kong and are implying that Hong Kong is not a match against Soros.
Ren Zhigang immediately calls for a press conference to refute these rumors. He also contacted Hong Kong’s Chief Executive to penalize those media which spread these rumors!
“Hong Kong is using the Linked Exchange Rate System for its currency and is stabilized by an exchange mechanism automatically. Also, Hong Kong has enough foreign reserve to deal with the Quantum Fund, and those speculators will be beaten!”
“Chief Ren, even TWD, was beaten by Quantum Fund. Why do you think Hong Kong will not lose? Taiwan has a stronger foreign reserve than in Hong Kong.” A reporter asked.
“That is because Taiwan needs its currency to depreciate, so they can lower their inflation rate as they need to import some products. Furthermore, Taiwan had not suffered many losses. TWD might have depreciated, but it did not affect Taiwan’s economy. Our Linked Exchange Rate System is linked to USD, and will not be unlinked. Do you think Quantum Fund will want USD to be depreciated?”
“But why are we not increasing the interest rates? This way, we can prevent them from dumping HKD.” Another reporter asked.
“Just let them dump HKD, and they still have to pay the interest, right? We can just buy the HKD from them, and Hong Kong has enough funds to do that.”
“Someone said that the Hang Seng Index would plummet. The index had fallen over 1,000 points in the last two months.”
“The Hang Seng Index is around 12,000 points now, and two months ago, it is at 14,000 points. Did the index plunge? The whole of Asia’s economy is not doing well, and such fluctuation is normal. When you all buy stocks, did your stocks fall more than 10% before? But to say the index will fall below 8,000 points is rubbish. Today’s index had risen, and many stocks had increased. Can’t you all see that? We are not the ones who are pushing the stock index up. It is the investors who had invested in our Hong
Kong’s stock market.”
Ren Zhigang was addressing the reporters proudly. Superman Li and the other tycoons had started to buy in Hong Kong shares sold by Soros at lower prices.
Superman Li had even released some news to increase his company’s share prices. Many Hong Kong tycoons had also release news like their companies had signed contracts and agreements with Chinese companies, and their profits in the next few years will be high. This news motivated many investors to start buying in Hong Kong shares, especially blue chips shares.
Superman Li prefers real estate and starts to buy many real estate companies’ shares. Fu Rongqi prefers trading, and many trading companies’ shares were bought out by him. Some of the tycoons, like technology, share and started buying in such shares in large volumes. This is the same for other industries like manufacturing, etc.
Instead of plunging, the Hang Seng Index starts to rise and is about to exceed 13,000 points.
Feng Yu also used a large portion of his funds and USD to buy in the cheap HKD, and then use the HKD to acquire Hong Kong shares.
……
“Boss, the rumors we released are not effective. Many tycoons are media moguls in Hong Kong, and we can’t make use of the mainstream media.” Drucken Miller said.
Soros’s men had released lots of fake news, hoping to incite panic selling. But the news they released were buried under the good news released by the top tycoons in Hong Kong.
Soros never expects Hong Kong’s top tycoons will cooperate against him, as the tycoons will not make any money by doing this!
But it’s worth mentioning that even if the tycoons are not making money, Soros will suffer losses!
The Hang Seng Index rising will make Soros and his men lose money from their future contracts, and dumping HKD is another loss to them. They still got to pay the interest, and HKD is too stable. They cannot suppress it!
Soros’s strategy had failed, and this is the first time he felt anxious. He starts to reflect on his actions. Did his constant victory against the Southeast Asian countries cloud his mind? Maybe he should not attack Hong Kong in the first place.
“Boss, what should we do now? The Hang Seng Index is rising. Are we going to continue to short the index?”
“Or should we buy in the index futures to stop loss? We can pretend that we are continuing with our attacks and lure them into pushing the index up. Maybe we can cover our losses and even make money.” Thomas suggested.
“No. I think we should cancel those future contracts and admit our losses. We can move on and attack South Korea, and I have found a loophole in their financial system. I am confident that we can destroy South Korea’s exchange rate system within one month. We can recover our losses here and still make significant profits.”
“I think we shout attack Japan. Many countries in Southeast Asia had borrowed money from Japanese banks, and are unable to repay their debts. Japan’s bad debt had increased, and this is our opportunity to hit them. Also, Japan’s economy had recovered these few years slightly, and Japan’s economy will affect Hong Kong!”
The four fund managers have different views and started to argue among themselves. Soros closed his eyes and looked tired. At his age, he does not have the energy to think about a problem for too long.
This defeat is a blow to Soros. When someone is in a good mood, their energy levels will go up and will not get tired so fast.
But when someone suffered a setback, they will feel tired!
The four managers argued and suddenly realized that Soros had not said a word. All of them stopped and looked at Soros, waiting for him to make the final decision.
Soros opens his eyes and said. “Cancel the contracts and attack South Korea first!”
“Boss!”
Drucken Miller wants to persuade Soros, but Soros waved his hand. “I know. This will affect our reputation slightly, but if we continue, our losses will increase. We must think of a way to stop those Hong Kong tycoons from going against us. If our opponent is the Hong Kong Government alone, it will be much easier!”
……
Soros had retreated! Hong Kong is celebrating!
The almighty Quantum Fund was beaten in Hong Kong. Even after leaving Britain, Hong Kong is still the financial center of Asia. More importantly, China had not interfered!
Feng Yu and the tycoons were celebrating together with champagne. They had won against Soros and had not suffered any losses. Some of them even make some profits.
Feng Yu looked out of the windows. This is the first time Soros is attacking Hong Kong seriously, and he was defeated. But Soros is ambitious and will surely make a comeback! Should I try fighting against him in South Korea?