Chapter 133: Battle to Defend Hong Kong (3)
As early as the end of July this year, there were rumors in the China Overseas Foreign Exchange Black Market that due to many factors such as floods and the Japanese Yen crisis, the value of the RMB would be difficult to maintain.
As a result, the RMB exchange rate against the US dollar on the black market fell to 8.70, 5% lower than the official exchange rate of 8.28. The rumors also prompted investors to sell B shares to cash in and buy US dollars. By July 28, B shares had fallen by 3.5%, setting a new historical low.
For a time, news unfavorable to the RMB came one after another, and many investors could not help but begin to doubt how long the RMB could last.
On August 3, the exchange rate of the Japanese yen against the US dollar broke through the important mark of 145, and citizens of Zhonghai flocked to the black market to exchange dollars at high prices.
On that day, the black market exchange rate of the RMB reached 8.8 yuan to 1 US dollar.
Lu Yiming and Li Yiwen were looking for useful information in the piles of newspapers and magazines in front of them.
Suddenly, Lu Yiming picked up a newspaper and saw a report that interested him: "The black market price of RMB in Zhonghai has actually fallen to 1 US dollar to 9.2 RMB, which is nearly 9% lower than the official exchange rate."
Li Yiwen was puzzled: "Why are you paying attention to these news?"
He actually didn't quite understand what this had to do with the battle to defend Hong Kong's financial sector. After all, the news showed the general situation of the country's economic development.
Lu Yiming sighed and said, "In fact, a lot of news can be analyzed from the newspapers. The domestic economic development has not slowed down, but the black market exchange rate of RMB has fallen so much. It is obvious that someone is secretly manipulating it. This move is like Xiang Zhuang dancing with a sword, aiming at Pei Gong, and Hong Kong is that Pei Gong."
Li Yiwen was a little shocked: "How do you know it's Xiangjiang?"
Lu Yiming made a serious analysis and said, "The depreciation of the RMB will inevitably deal a heavy blow to Hong Kong's linked exchange rate system. This information will undoubtedly further stimulate Hong Kong's stock and foreign exchange markets. At present, Hong Kong is the financial center of Asia and the most frequent transit point for foreign economic activities in the entire Asia. Where else can it be if not here?"
Li Yiwen was about to speak when Ren Junle knocked on the door and came in, saying, "Boss, I noticed an abnormal phenomenon."
"explain."
"Because the New York stock market has weakened, the Hong Kong stock market has fallen by as much as 299 points today alone, and it looks like the situation will continue to decline. I think if we continue to go long, the risk is too great."
The implication is that Lu Yiming should follow the trend of international hot money and make money by short selling. There is no need to "go against the trend."
Lu Yiming teased, "As a mainlander, I am determined to defend Hong Kong. As a Hong Kong native, it is inappropriate for you to say this, right?"
Ren Junle remained expressionless in response to Lu Yiming's teasing. She still maintained her coolness and spoke in a tone that was more like a money-making machine without emotions. She responded in a seemingly rational manner, "I am just giving a rational suggestion. If you want to make a profit in the stock market, you must put aside the interference of emotional factors and try to make rational judgments and decisions."
Ren Junle didn’t think there was anything wrong with her idea. She was just using the rules to make money, and it wasn’t illegal, so why couldn’t she do it?
As for whether one is patriotic or not, how much is patriotism worth?
What's more, Ren Junle has no national identity at all.
The island country is now powerless to recover, and Hong Kong's listed companies have been announcing their interim results one after another. Various unfavorable news have followed one after another - Cathay Pacific suffered its first loss in more than 50 years, and the profits of Swire and HSBC fell sharply. Rumors are rife in the Hong Kong market, and investors are panic-stricken.
All these bad news together will undoubtedly become a signal for international financial speculators to attack Hong Kong.
Anyone who knows a little about finance can tell how bad the future situation will be.
In the eyes of many people, instead of sticking to loyalty and living and dying with the Hong Kong stock market, it is better to make money first and live a good life.
Lu Yiming himself has patriotic sentiment, and it is so strong that it is overflowing, but Ren Junle does not have it.
However, Lu Yiming would not forcibly change Ren Junle's values. He knew that with someone like Ren Junle, all he needed to talk about was money.
"You are right, but not entirely. Following Soros and other international hot money, how much money can we make with the size of our Future Fund? It would be good if we can get some leftovers. In the worst case, we can't even get leftovers. Why risk being blacklisted to earn this hard-earned money?"
Ren Junle is simply considering the issue from the perspective of a trader, thinking that capital is borderless and that making money requires business. This cannot be said to be wrong, but at most it is criticized on a moral level.
But Lu Yiming is not stupid. He still has to survive in China in the future. Wouldn’t shorting Hong Kong be courting death?
How can anything good happen if you are on the government’s blacklist?
It is like picking up sesame seeds and throwing away watermelons. Lu Yiming, who has received nine years of compulsory education, would never do such a stupid thing.
The mainland is currently experiencing a period of economic boom, with gold everywhere and countless opportunities. Even someone of Soros' size will probably not be ranked among the top in the country in ten or eight years.
If you follow Soros to make a little money now, you will not be able to make big money in the future. Anyone who has memorized the multiplication table will never do such a stupid thing.
Lu Yiming did not intend to explain too much to Ren Junle and others, because saying these things to someone who did not believe in the country's rise from the bottom of his heart was like playing the lute to a cow.
However, morale still needs to be boosted to prevent them from being perfunctory and not working hard.
After organizing his words a bit, Lu Yiming said to everyone in a serious manner: "A man must have backbone. Even if he doesn't have backbone, he must have ambition and courage. Only by cutting off Hong Kong's shareholders can we make some money. If we are going to cut off, we will cut off the fattest ones!"
Ren Junle was secretly resentful in his heart.
This boss is really crazy. He actually thinks he can cut off international hot money?
Seeing that Ren Junle didn't agree, Lu Yiming raised his eyebrows and looked at her delicate face with a smile on his face: "Why? Don't you believe it?"
Ren Junle did not respond, but said: "Boss, I think it is better for the Future Fund not to aim too high. You are from the mainland, so you may not know how powerful Soros's Quantum Fund is, not to mention the wolf-like international hot money. These bloodthirsty financial tycoons have astronomical funds in their hands. They cannot be defeated by just thinking about it."
She was not Lu Yiming's employee, she just did the job for money. What's more, Lu Yiming was just a mainlander, so she was not polite at all when she spoke.
However, Lu Yiming's attitude towards this matter was very tough: "No, you don't understand how powerful our country is and how strong our determination to defend Hong Kong is. What's more, the so-called Quantum Fund and international hot money seem to be extremely powerful, but in fact they are just paper tigers. I have seen the fatal flaws they left behind."
"Fatal flaw? What is it?"
Ren Junle couldn't help but ask out of curiosity.
