YM778.TV Chapter 926 - Abnormal Hang Seng Index
Chapter 926 – Abnormal Hang Seng Index
Feng Yu was walking along a corridor of a hotel discreetly at night.
Room 806. This is the room.
Feng Yu knocked three long and two short knocks on the door lightly.
Click. The door opened, and Feng Yu quickly enter before anyone can see him, and close the door behind him.
“I’m here. Did you miss me?” Feng Yu pressed Li Na against the wall.
“You dare to come? My parents are just next door.” Li Na softly said.
“There’s nothing to be afraid of. They should be tired after a long day and should be sleep now. Wait for me. I will take a shower first.” Feng Yu pinched Li Na’s chin lightly and kissed her.
In the day, Feng Yu can only hold Li Na’s hands, and if he wants to do anything else, Li Na’s father will purposely cough loudly. He had wanted to come over last night but failed. During dinner today, he whispered to Li Na about the ‘door knock code’ and left.
An hour later, Li Na gave Feng Yu a push. “You better go back now. What if other people see us together in the room?”
“Just let them say whatever they want. Everyone knows our relationship in any way.” Feng Yu said and continue hugging Li Na.
“No. You must leave now. We have so many of our friends and relatives here. Hurry up.” Li Na dragged Feng Yu up.
“Alright… I will return to my room. You must let me wear my clothes first.” Feng Yu was speechless. Although China had opened up, many Chinese are still very conservative, and Relatives and friends will gossip behind their backs.
Li Na opened the door softly and stick her head out. After she was sure there are no one around, she pushed Feng Yu out and quickly shut her door. Feng Yu walked back to his room slowly, regretting his decision to arrange Li Na’s room to be on the same floor with the rest of relatives.
In the morning, Li Na, her parents, and the rest continued with their tour of Hong Kong, while Feng Yu returned to his office to check on Thai Baht.
Yes. Thai Baht fell slightly again. Although it did not fall much, Feng Yu and his men do not need to dump Thai Baht now. Baht will depreciate by itself, as the market can no longer help with the rates!
Many international investors noticed after Thailand switched to Floating rates, the artificially inflated economy was exposed, and they start to short Thai Baht!
In the end, these international investors start to attack Thai Baht. Feng Yu and Soros had stopped dumping Baht now, but Thai Baht was still falling. Even though the fall is not a lot, but there are no signs of Baht rebounding.
“Feng, we don’t need to do anything to Thai Baht now. I will be attacking Singapore currency next. Are you with us?”
“Sure. I am thinking about this too.”
Singapore had used their foreign reserves to help Thailand pull up Baht’s rates one and had lent Thailand a sum of money. They thought Thailand would win Soros and the international speculators, but Soros won in the end, and Thai Baht is depreciating. With Thailand losing this war, Soros and his men are starting to make money!
Now, a new problem arises. Singapore does not have a high foreign reserve in the first place, and after helping Thailand and lending them money, their reserve is running low. There is a bigger problem. The countries in the region are unable to lend Singapore money, and no countries are willing to help them. It’s every country for themselves!
Singapore, Malaysia, and Thailand have strong economic ties, and this is the reason why this region’s economy developed rapidly in the past decade.
But the consequences of having strong economic ties is the domino effect. When one country becomes successful, its allies will benefit from it. For example, real estate and finance sectors. However, when one country’s economy in the region deteriorates, the rest will be affected.
Thailand’s finance and real estate sector had developed at high speed, and the rest of the countries in Southeast Asia are the same.
But now, Thailand’s finance sector had collapsed suddenly, and Singapore, Malaysia, Indonesia, Philippines, etc. are impacted. The first area affected is the currencies. Their currencies’ rates will plunge like Baht.
These countries had developed quickly together, and with Thailand’s economy collapsing, all these countries will be dragged into recession.
“Boss, something is not right.” He Zhaoji reported.
Huh? What is wrong? Feng Yu looks at He Zhaoji.
“What is it?”
“Boss, Hong Kong’s economy has close ties with those countries, but the Hang Seng index is rising. This is abnormal!”
Hong Kong is using the Linked exchange rate system, and it is linked to USD. When the USD rate increases, HKD will increase. The exchange rate is now 7.5 HKD: 1 USD and HKD circulation in the region is second to Yen.
But under normal circumstances, HKD should also be affected. Although Hong Kong has measures in place, it should only stabilize the rates. Why are the stock prices rising?
Feng Yu frowned. Hong Kong stocks are rising, and it is abnormal. Even if the stock prices did not fall because of Thailand, it should not have many fluctuations. After Hong Kong’s return to China, it should be normal for the stock prices to fall slightly, as China’s financial sector is not as developed as Hong Kong and Britain. Some investors should be dumping their shares. Why are people buying in the shares at this time?
Do the investors think that Hong Kong will prosper after its return to China? Or do they think that Thailand’s economy will have no impact on Hong Kong?
Wait. Someone is purposely pushing up the stock prices!
“Do you know how much foreign funds had entered Hong Kong’s market?” Feng Yu asked.
“We cannot get this information, but the Fu Family should know about this.”
“Ok. Monitor SGD now. Starting from tomorrow, we will start to buy in short position SGD future contracts, and start dumping SGD.”
He Zhaoji left, and Feng Yu called Fu Rongqi.
“Nephew Feng, why are you calling me at this hour? What is it?”
“Uncle, have you notice Hong Kong shares are rising recently?” Feng Yu asked.
“You are saying someone is inflating the share prices? I noticed this too, and we suspect some speculators are purposely pushing up the stock prices and shorting on Hang Seng index!” Fu Rongqi had noticed this in the morning and is discussing it with Professor Liang and the rest now.
“It must be Soros and not other speculators! He is insistent on attacking Hong Kong!” Feng Yu coldly said.
“Don’t worry. We are around and are about to act. This is a good time to liquidate some of our shares as the prices are high. The Quantum Fund is trying to attack so many Southeast Asian countries at once. Soros is looking down on us!”
Translator’s notes:
Linked exchange rate system in Hong Kong