In the past few days, the funds in his hands have reached 10 billion Hong Kong dollars, which is an astronomical figure for Chen Fang. Most of it was earned from people led by Soros.

But Soros did not lose. Although he suffered some losses in the stock market, the profits on the stock index were already huge. That is to say, the delivery date has not arrived yet, and with such a large position, he can only wait until the delivery date.

Seeing that Chen Fang was thinking about something, Guan Lin did not dare to disturb him. She had recently followed Chen Fang in buying things and had made 10 million Hong Kong dollars. No wonder so many people were involved in finance. Compared to filming and doing real estate business, finance was a large casino.

Then the financial news reported a piece of news about the government’s attitude.

The headline was: “If anyone thought we were going to waver, they were wrong!”

On August 8, the Hong Kong government made a statement to reporters, saying: Maintaining the exchange rate is the most unwavering policy of the SAR government.

“If anyone thinks we will waver, they are wrong! We are absolutely capable and determined to maintain the linked exchange rate, and we will definitely do it. Maintaining the linked exchange rate will ensure Hong Kong’s long-term economic vitality and interests, and short-term pain is acceptable.”

This means that the government has become involved.

Seeing the new policy, Chen Fang couldn’t help but shook his head: “This Ren Yi trick is only used this one trick.”

Xue Dahua nodded and said, “If we want to maintain the linked exchange rate, then we have to raise interest rates to increase the financing costs of speculators, but the stock market will fall, which is a contradiction in itself…”

“You are right, but if we were to compete to see who has more money…”

“Boss, are you saying that the government will personally intervene?”

Xue Dahua said in disbelief that he had guessed before that the government would intervene, but intervention is intervention…why would the government go to the stock market in person?

“The Hang Seng Index is at 6500 points, and if it continues to fall, Hong Kong’s banking industry will be in big trouble. No one can afford the consequences that will come with it.”

“But boss…”

Xue Dahua naturally knew that what Chen Fang said was right, but there was probably no precedent in the world for government officials to personally go to the stock market to buy stocks, right?

That’s because the government of other countries is made up of a few capitalists. It was these people who were causing trouble in the stock market. How could their government possibly stop doing this? Wouldn’t that be like fighting against themselves?

So this doesn’t happen in other countries, but where is this?

How could they remain indifferent in the face of a robber like Soros? Even if Hong Kong’s foreign exchange reserves are not enough, there is still the mainland behind it. It will be no problem to deal with Soros.

How can you treat Hong Kong as an ATM? You should know the foreign exchange reserves of countries around the world now.

Hong Kong’s foreign exchange reserves are 820 billion U.S. dollars, ranking third in the world. The second place is mainland China, which is about 1200 billion U.S. dollars.

Of course, it is impossible for Hong Kong to take out all of its foreign exchange reserves, but if the big brother behind it can take out a few billion to support it, there will not be much problem.

“Don’t say but, just wait until Monday to start.”

Xue Dahua asked tentatively: “Are you still using leverage this time?”

“No, just use your free funds to buy the stock index… Leave 10 billion Hong Kong dollars, and go long on the rest…”

Chen Fang is not confused yet. How could he still use leverage? Wouldn’t that continue to increase the risk? Anyway, he has enough money now, and the stock index will not fall below 6500 points.

This is Chen Fang’s trust in the government. This government is not Hong Kong, but mainly his trust in the motherland.

Xue Dahua didn’t dare to persuade him anymore. He knew Chen Fang’s character. Since the establishment of the company, he always went all in…but even with such risky practices, he had never lost once.

Guan Lin, who was standing behind, heard that Chen Fang was going to invest all his money at once and wanted to persuade him, saying that they already had enough money and apart from the four major families, who had more money than him?

(The Rongkai Group in the play should be one of the four major families)

Time quickly came to Monday. The Hang Seng Index plummeted at the opening, and the decline seemed to have bottomed out. Coupled with panic selling by investors, the Hang Seng Index plummeted further.

In a villa, several people looked at the rapidly falling numbers in front of them and felt that it was so beautiful.

Whether Hong Kong goes bankrupt or not has nothing to do with them, as long as their luxurious life can continue.

“Why hasn’t the kid surnamed Chen made any move yet?”

“No… I don’t know what he wants to do. This kid has made more money recently than any of us.”

“Haha, it’s just luck. Hong Kong doesn’t just require money, it also requires connections…”

“Yes, I’ll have a chance to deal with him later.”

Although this man answered calmly, he didn’t agree in his heart. He thought that since he was Li Guokai’s nephew, his connections in Hong Kong shouldn’t be that bad, right?

Chen Fang saw that the Hang Seng Index had fallen to 6520 points, and then said, “Let’s get started.”

Dozens of traders then began to buy stocks in the market. The influx of 90 billion Hong Kong dollars seemed to be a shot in the arm for the market, especially for those investors in the trading hall, who thought that the government had entered the market.

Investors who were preparing to sell their stocks also stopped at the same time. Although the price had fallen to a point where they couldn’t recognize anything, they all wanted to cut their losses and recoup some of their money. But what if the price went up again?

All gamblers think this way. Who would be willing to lose money if they see the hope of making a profit?

With Chen Fang’s entry, the Hang Seng Index quickly rebounded to 6800 points. Although 90 billion Hong Kong dollars may seem like a lot, both sides are investing in a war of hundreds of billions of dollars, so this amount of money is just the starting point.

Li Guokai was also paying close attention to the Rongkai Group. The rebound that was about to reach 6500 points was probably caused by Chen Fang. He then ordered his men to buy in quickly.

But the amount of money he invested is definitely much less, mainly because Li Guokai is not specialized in this, his main business is in real estate.

But he also knew that if it really fell below 6500 points, Hong Kong would be finished.

Near the closing of the market, the Hang Seng Index almost fell to 6500 points, but it quickly rebounded. This time the momentum was obviously much stronger because the government was selling. The Hang Seng Index closed at 7000 points that day.

But Chen Fang knew that this was just the beginning. He imagined that soon many newspapers and media would begin to report extensively on the government’s entry into the market.

Either the government is interfering in the market, or the business environment in Hong Kong is the problem, or Hong Kong is no longer a free financial center.

Anyway, these are the tricks. If Hong Kong was replaced by New York on the other side of the ocean, the local surveillance department would have been taken action long ago, and people like Soros would have been invited to have tea with the FBI long ago.

Soros himself does have such concerns.

After get off work, Li Guokai called. This time he did not ask Chen Fang to go to the Li family villa, but asked him to go to Rongkai Group. Recently, Li Guokai had not returned home, but was in the company.

The market has been sluggish recently, and real estate is an industry with high debt. Rongkai Group is now facing operational difficulties, mainly because all the money in the market has gone to the stock market and foreign exchange market.

Chen Fang thought about it and agreed. He gave Xue Dahua a few instructions and then set off.

Naturally, the people in the company did not take any holidays as they lived and ate in the company. No one had any objections and, deep down, they also hoped that Chen Fang could win.

On the way there, all major media had already started. Listening to the broadcast in the car, Chen Fang smiled disdainfully.

Guan Lin said angrily: “This is exactly what you expected. Why are these media like this?”

Although she likes to make money, she grew up in Hong Kong and has recently been influenced by Chen Fang, so she naturally doesn’t want Hong Kong to fall into decline.

“The butt is crooked, so naturally, whoever pays the money will speak for him.”

“Then the government won’t withdraw, right?”

The government is very complicated internally. For example, there is naturally a lot of opposition this time, including many parliamentarians, who are basically those high-ranking people in later generations.

“No, we will definitely win this time…”

Seeing Chen Fang so confident, Guan Lin didn’t say anything more.

They soon arrived at Rongkai Group. The whole building belonged to Rongkai Group. Chen Fangxin thought that this was a big group and a big company. In this day and age, a company that can use an entire building as its headquarters showed its strength.

You have to know that this is not the era when there will be Internet giants everywhere in the future.

When Li Guokai saw Chen Fang for the first time, he didn’t hesitate and said directly: “In the morning, was it you who made the move?”

“Well, a total of 90 billion Hong Kong dollars was invested…”

“You, you, what can I say about you?”

“Second uncle, I feel like we will win this time. Didn’t you see that the government has already taken action?”

“Why…..”

Li Guokai sighed, but this was all Chen Fang’s money, so he couldn’t say anything else. Besides, he couldn’t lose it all.

Guan Lin just sat next to him and didn’t say anything…How could she have the right to speak in front of Li Guokai?

“By the way, Second Uncle, do you know the director of the Monetary Authority?”

“I know you. What’s the matter?”

Li Guokai naturally knew him. Hong Kong is so small, but he didn’t know why Chen Fang asked this.

“That’s right. I have a few suggestions that may help increase the liquidity of banks… By then the bottom line may be more than 6500 points, and there will be more room…”

“Okay, I’ll make an appointment for you right away…”

Li Guokai didn’t give any specific details, mainly because he didn’t understand it very well. Instead of letting Chen Fang explain it now, it would be better to listen together later.

Soon, there was a clue. Li Guokai said, “Chen Fang, the other party promised to give us five minutes after an hour. I hope what you said is useful.”

This was obtained only by Li Guokai at the cost of his reputation. He doesn’t even look at the current situation. Especially for the director of the Monetary Authority, life is really not easy.

“Okay, let’s set off right away.”

The two then rushed to the government office and finally met each other. After Li Guokai introduced them, the other party adjusted his glasses. It turned out that this was the person who went long in the stock market this morning.

So he stood up and said, “Mr. Chen, thank you for your help this morning…”

Now everyone wants to short Hong Kong and they wish the stock and foreign exchange markets would collapse immediately. There are very few people like Chen Fang who are optimistic about Hong Kong.

“You’re welcome. I’m just trying my best… This time I’m giving you a suggestion…”

The linked exchange rate system has made great contributions to Hong Kong’s monetary stability over the years, but this system also has inherent flaws.

Although the cash in circulation in Hong Kong is 100% backed by Hong Kong dollar foreign exchange reserves, this is not the case with bank deposits. The HKMA will only allow issuing banks to issue 7.8 Hong Kong dollar notes after receiving a pledge of one Hong Kong dollar.

On top of this base currency, banks can create deposits in multiples through mortgage lending and other means. However, there is a drawback here, which is that it will inevitably result in the Hong Kong dollars loaned out not having corresponding Ugly dollars.

Soros relies on this to short sell, which is why there are so many Hong Kong dollars in the market, but the government does not have so many Ugly Yuan to deal with it.

Chapter 634 earned billion.

The other party nodded: “We know all this, and then what?”

Of course he knew about these drawbacks, but unfortunately there was no good way to solve them. The imbalance between the Hong Kong dollars on the market and the ugly yuan in the hands of the government was the root cause of this crisis.

Could it be that the interest rate will be raised, the reserve requirement will be increased, and the bank’s liquidity will be tightened? Although this will reduce the number of Hong Kong dollars in the market, the stock market will probably be doomed tomorrow.

There are so many financial experts in Hong Kong, but no good solutions can be found at the moment.

Chen Fang smiled and said, “Although we cannot switch to another exchange rate system, we can improve the linked exchange rate system.”

“Oh, what to say.”

The other party adjusted his glasses and became more interested. If it were anyone else, he would have stopped talking long ago. Today, it was not only for Li Guokai’s sake, but more because Chen Fang did not short Hong Kong, but was helping the government.

“Haha, we can strengthen the mechanism of currency issuance. Specifically, we can replace the original liquidity adjustment mechanism with the discount window. Under this new arrangement, banks can use foreign exchange fund bills and bonds to borrow overnight funds from the HKMA, thereby increasing the liquidity of banks. The HKMA announces the base interest rate at the beginning of each day. If the overnight lending rate is higher than the base interest rate, banks do not need to borrow from the market through interbank lending, but only need to use the foreign exchange fund bills on hand to borrow the required overnight funds through the discount window. In this way, the pressure of rising interest rates can be alleviated. At the same time, the government should also implement some measures to tighten the supervision of securities and futures, such as preventing short sellers from selling below the stock market price, and strengthening the investigation and monitoring of illegal short selling to increase the difficulty of short selling.”

…….

What Chen Fang talked about is the experience summarized by later generations. Each of the points can be found on the Internet at any time.

Although it is a bit shameless, this is the plug-in of the reborn. Besides, it can greatly alleviate the financial difficulties of the banking industry. As long as there is no problem in the Hong Kong banking industry, 6500 points will not be the lowest line that can be lost.

If Soros wants to continue shorting Hong Kong, he will have to invest more money, which will also increase the other party’s costs.

“Well, I agree with what you said. We will hold a meeting to study it specifically later.”

The reason he can sit in the position of director is not just because of “one trick”. That is just a rumor from outside. He must have real talent and knowledge, otherwise would you be an idiot to be an official?

Just send someone randomly to this position?

After that, he looked at Li Guokai and said, “Mr. Li, you have a good nephew.”

“No, no, he’s just making a small fuss.”

Li Guokai has seen a lot of the world, so he is naturally very humble when he speaks.

“Mr. Chen, I hope you can continue to support us in Hong Kong…”

“Of course, of course. I am very optimistic about the future development of Hong Kong. And according to my estimation, the mainland will not sit idly by and will definitely take action in the end…”

“Well, I hope so.”

He has not received any news that the mainland will take action, so he can only express hope.

After leaving the government office, Li Guokai praised Chen Fang a lot on the way back. The two did not go home but continued to Rongkai Group. How could they sleep these days? It would be better to stay in the company so that they can deal with any problems at any time.

Li Guorong was at home and felt that he hadn’t seen his younger brother for several days, so he asked about him.

Zhang Shuyuan replied: “Brother, the Hong Kong market has been very volatile recently, so Guo Kai has been keeping an eye on the company and even called back just now…”

“Oh, I see.”

Li Guorong nodded and said nothing more. After dinner, he prepared to go out and take a look. He first found his son Li Yi. If Li Yi hadn’t been there to lead him, he would probably have gotten lost in Hong Kong.

He was like this in the drama. Fortunately, he met Li Mingsi who was coming out of the bar, otherwise he really didn’t know how to get back.

“Dad, everyone is very busy recently, so…”