The Rebirth of the Financial Hegemon

Chapter 104 Before the mother was born, it was hell

Hongkong.

The Financial Channel of Phoenix TV Chinese Channel is broadcasting an international text message.

"Prime Minister Chavalit said that Thailand will always adhere to the fixed exchange rate system. There is no possibility of the Thai baht devaluing at all. Any conspiracy against the Thai baht is impossible to succeed."

"..."

Because it is not far from 97.

At the beginning of the year, Star Media's satellite TV Chinese channel was split into two, establishing the new Phoenix TV Chinese channel and the previous satellite TV Chinese channel.

The former is played in Hong Kong and mainland China, and the latter is played in Taiwan.

In the TV screen.

Thai Prime Minister Chavalit kept shaking his fist and vowing to defend the Thai Baht Declaration.

His face was as hard as iron, and his eyes were extremely firm.

"I swear, the Thai baht will never depreciate..."

Chavalit is indeed the prime minister of Thailand who was born as a general.

He has a rare iron-blooded toughness about him.

That kind of momentum is easy to convince people.

However, Zhao Jiangchuan in front of the TV couldn't help but laugh out loud.

"hehe!"

"Will it definitely not depreciate?"

"Hey, politics, it's such a disgusting thing..."

The TV picture continued to play.

Not long after, a financial program aroused Zhao Jiangchuan's interest.

The host is still the same host.

However, the invited guest is a very interesting person.

Vice Chairman of the Hong Kong Monetary Authority.

Pan Changhui.

his identity,

It determines that everything he says and does will attract a lot of attention.

It is very rare to be able to participate in such financial programs.

Pan Changhui graduated from the University of Exeter, UK.

After returning to Hong Kong, I stepped from the Hong Kong Monetary Authority to the position of Vice Chairman.

Often, Pan Changhui is responsible for the external speeches of the Hong Kong Monetary Authority.

"Today at 12 noon Eastern Time, which is 24:00 in Hong Kong, the Federal Reserve will announce this interest rate decision. Based on current analysis from various angles, it is expected that the Federal Reserve will continue to cut interest rates this time... If the Federal Reserve continues to cut interest rates, Hong Kong will We do not rule out following the Federal Reserve in lowering deposit and lending rates...."

For a straight male patient like Zhao Jiangchuan with advanced cancer, it was naturally not Pan Changhui who interested him.

However, Pan Changhui's words interested him very much.

Hong Kong implemented a linked exchange rate system with the US dollar in 1983.

Starting from October 17, 1983, note-issuing banks have issued additional Hong Kong dollar banknotes at a rate of 7.8 Hong Kong dollars for 1 U.S. dollar. They have paid U.S. dollars to the Exchange Fund in advance in exchange for equivalent Hong Kong dollar "certificates of indebtedness".

At the same time, the government also promised that after Hong Kong dollar banknotes return from circulation, the note-issuing banks can also exchange them back for US dollars at the same price.

After the implementation of the linked exchange rate system, maintaining a stable exchange rate has become the sole goal of Hong Kong's monetary policy.

Therefore, Hong Kong's interest rate policy often follows the interest rate policy of the Federal Reserve.

When the United States raises interest rates, the Hong Kong Monetary Authority will follow suit; when the Federal Reserve cuts interest rates, the Hong Kong Monetary Authority will simultaneously lower interest rates.

It can be said that the Hong Kong dollar is another symbol of the US dollar.

This is what Zhao Jiangchuan finds interesting.

As a cheater, he is very clear about the real goal of international capital.

"It's starting to be fun!"

It is now January 1997.

At this point in time, if the Federal Reserve chooses to continue cutting interest rates, the Hong Kong Monetary Authority will also choose to cut interest rates.

After interest rates are cut, the liquidity of Hong Kong dollars will be released.

Some of those Hong Kong dollars sleeping in banks will be driven to the market.

From a market perspective.

The interest rate cut is a good thing.

With more liquid capital, the price index will inevitably rise.

Real estate, stock market, consumption...

With the injection of large amounts of capital, rising prices are an inevitable result.

However, Thailand has raised interest rates many times in a row.

Without yin, there is no yang.

No interest rate hikes, no interest rate cuts.

The yin and yang are exchanged, and the universe is reversed.

Interesting, really interesting.

A smile appeared on Zhao Jiangchuan's face. He thought for a moment, picked up the phone and dialed.

Bangkok.

Robert held a large piece of beef curry in his hand and was chewing on it.

This is one of Thailand's delicacies.

The taste is pretty...

improvise.

However, Robert had a look of disgust on his face.

Not that I dislike the taste.

I hate the way I eat.

The place he was in was not a foreign-related hotel.

Therefore, this store does not provide tableware.

This made Robert feel very sick for a while.

No matter what you eat, you have to grab it with your hands.

This was something Robert had never imagined.

In England he uses a knife and fork.

When he was in China, he learned to use chopsticks.

Robert had never known that there were people in the world who ate with their hands.

Even after staying in Thailand for so long, he still couldn't accept this way of dining.

damn it.

What a bunch of low-class natives.

I thought that China was low-level enough, but here it was actually even lower-level than China.

Even something as elegant as eating has to be done with your hands.

It's so disgusting.

As a gentleman of noble origin, Robert was fed up with this eating method of grabbing things with his hands.

Don’t they know how to hold them when they go to the toilet?

Catching it with your hands doesn't mean you're licking yourself.

Suddenly, Robert, a straight man, felt like vomiting.

I couldn't swallow the beef curry in my hand.

"Ring ring ring..."

The satellite phone Robert carried rang.

The guy was startled and quickly threw the curry beef on the table.

Then, he was dumbfounded.

There is no paper on the table.

But now my hands are full of curry, how can I answer the phone?

Robert panicked.

He quickly asked Fang Zhongyuan beside him.

"Old Fang, do you have any paper?"

"No."

"Ring ring ring..."

"damn it."

Robert cursed and couldn't care about anything else.

He quickly wiped his hands on his body and picked up the phone.

There was no other way. The phone had rang twice. It would be very dangerous if he didn't answer it.

"Carrot head, I hope I didn't disturb your meal."

"Oh, no, no, boss, have you eaten?"

"I've already eaten. Carrot head, you are becoming more and more like a Hua Guotong. You even learned the same greetings."

"It's all the boss who teaches me well."

"He who can do it should work harder."

"Boss, the temperature in Hong Kong has dropped now. You should pay more attention to keep warm and avoid catching a cold."

"Do you think someone as powerful as me will get sick?"

"Oh, I'm so damned. Boss, your light illuminates the world, how can you get sick?"

"..."

Assholes will always bring out the assholes.

Robert, a crooked nut, was rubbing his hands on his body while flattering her affectionately.

The other guy took them all shamelessly.

"How's the progress over there now?"

"In the stock market, there are currently not many chips. The current position is mainly in SET. According to the current price, boss, do you want to settle part of it?"

"Close? No, no, no, I think we should continue to increase the position size."

"Gulu..."

Robert swallowed involuntarily.

What Zhao Jiangchuan said about increasing the position size made him feel fear involuntarily.

The Bank of Thailand raised the price of the Thai baht to 23 through the sure kill of the eight young girls in the sunflower series.

But combos always cost energy to explode.

In addition to consuming more than one billion US dollars in foreign exchange reserves, Thailand's domestic market is also under tremendous pressure.

Raising offshore lending rates will increase the cost of borrowing Thai baht in overseas markets.

Restricting loans from domestic banks will reduce the liquidity of the baht in the market.

The effect of the two is that the overall circulation scale of Thai baht has shrunk significantly.

The Bank of Thailand can leverage the Thai baht market with just US$1,110. This is the logic.

The relationship between supply and demand has changed significantly.

The baht's rise makes sense.

But the price of tens of billions of dollars is still not enough.

Price is always driven by money.

Whether it's the stock market or real estate.

No matter how good it is, without enough buying funds, it will not be able to support its price.

When the Thai authorities limit the total value of the baht in circulation, they are reducing blood circulation, and this pressure will naturally be transferred to other markets.

The decline in total currency circulation has dealt a fatal blow to the Thai stock market.

Since the announcement by the Bank of Thailand, the Thai stock market has been subject to crazy selling of funds.

In just a few days, it fell from the highest rebound point of 640 points to 440 points.

Several of the blue-chip stocks were even more miserable.

Thai Telecom, Thai Petroleum, Pattaya Industries.

Prices are barely half what they were at the beginning of the rally.

If compared to the peak of the Thai stock market of 1798, these stocks are only less than one-fifth of their original size.

A year or so.

All stocks were cut in half again and again.

When such a large drop makes investors feel discouraged and desperate, even short sellers will instinctively fear.

Everyone knows.

No matter how much the stock price falls, it will never fall completely.

Robert couldn't help but swallowed his saliva, he said with difficulty.

"Boss, did you just say that you should continue to add short SET?"

"You heard that right."

"But now the market has dropped to 440 points..."

"Then what?"

"I'm afraid there won't be much space left!"

"No, Robert, this is the general trend. Since the Thai authorities have given up on the stock market and real estate, it is not surprising that prices will fall."

"..., what is our goal?"

"What do you think of the idea of fucking it back into its mother's womb?"

"..."

After hanging up the phone, Robert looked a little confused.

Fang Zhongyuan who was with him asked anxiously.

"Robert, what did the boss just say?"

"Gulu..., the boss said that he wants to drive the Thai stock market into his mother's womb. What does this mean?"

Twenty minutes later.

Within the trading department of Jushi Asset Management.

Fang Zhongyuan and Robert looked like two stunned hens.

Thailand stock market, born on July 31, 1987.

The opening price of the day.