Chapter 929 - Hang Seng Index dives
Chapter 929 – Hang Seng Index dives
“Dump 5% more SGD today.” Feng Yu instructed.
He Zhaoji and his men continued to dump SGD slowly. Feng Yu’s strategy was to let Soros’s Quantum Fund take the lead in this operation, and he will just follow behind like the rest of the speculators.
The Singapore Government reacted very fast, and they start to adjust slowly. Although SGD rates had fallen slightly, it did not drop below their permitted range.
But there is still a piece of good news. Singapore starts to dump their Baht to buy SGD. This way, SGD will be stabilized, but Baht will plunge again.
After adopting floating rates, Thai Baht’s rate had depreciated to over 30:1 and had started to stabilize. However, to protect their currency, Singapore had to dump the Baht they bought, and Baht starts to dive again.
Singapore, which was supposed to help Thailand, had now helped Quantum Fund to make Thai Baht rate fall again.
When it comes to a country’s interest, strategic cooperation between countries, are nothing. All countries will think for themselves first, and who cares if another country’s economy is going to collapse? What matters most is their interest.
Feng Yu switched on the TV and watched Hong Kong’s financial news.
When trading starts today, the Hang Send index rises a little before falling. The commentator on TV felt Hong Kong’s stock market is overrated.
“The figures we are looking at right now are abnormalities in the Hong Kong Stock market. The stock markets of all Asia countries are falling, but the Hong Kong stock index had been increasing over the past few days. Now, the Hang Seng index is falling, and many shares had fallen more than 5%. This means many investors are withdrawing their funds…”
The commentator on TV is cursing Hong Kong’s market, but what Feng Yu doesn’t know is that this commentator is famous for his inaccuracies. When he says the stocks will rise, it will fall the next moment. If he says a stock price will fall, it will rise immediately! Many Hong Kongers are skeptical of his predictions.
But such programs are popular, and many people are betting the opposite of what that commentator said.
However, what that commentator said today was right. Fu Rongqi and the rest had started to dump their stocks, and it includes blue chips. Hang Seng index will not rise today.
……
“Eh, that commentator says Hang Seng index will continue to fall today. Should we sell our stocks away? Anyway, we have already made some money, and if we sell them now, we can still get some profits.” A waiter at a tea house said.
“You already say it’s that commentator who said this. Since when did his predictions come true?” His co-worker said.
In Hong Kong, many people are playing shares. Waiters at tea houses, people on the streets, etc. are all investing heavily in shares. Some even gave up their jobs to do trading full time.
“But this time, the commentator did not make any prediction on any shares. He is predicting the Hang Seng index. Did you forget how he became famous? He had predicted the Hang Seng index rising accurately in the past.”
The co-worker starts to hesitate. That’s right. The commentator had not to name any specific share today and had only predicted the index.
The stock index had fallen slightly yesterday and today. The commentator said for the next few days, the index will continue to fall, and if this is true, they must sell their shares before their money got stuck in the market!
“Do you want me to ask Fortune God Liu next door?”
Fortune God Liu is the boss of the shop next to their tea house. He was formerly a waiter like them, but he made a fortune from trading and is running a fruit stall now.
Many people had followed Fortune God Liu’s advice on the stock market and made money. But Fortune God Liu has a foul temper and seldom gives out advice for free.
The two waiters discussed and pretended to go out to clear the trash while there are not many customers. They ran over to Fortune God Liu’s stall and saw Fortune God Liu watching the news and using a PC.
“Fortune God Liu, you are checking on the stock market?”
“Why are you two here? It is not your mealtime, and your boss should not let you two go out.”
“Fortune God Liu, we are here to seek your advice. Do you think the stock market will continue to fall?”
Fortune God Liu looked at the two waiters. If these two had not been helping him clear his trash, he would not be bothered to give out advice.
“Sell all your shares. My advice to you is not to buy any shares this year. Southeast Asia’s economy is collapsing, and this year’s stock market will be very exciting. With your standards, you all will suffer losses easily.”
“Ah… Thank you. We will help you clear your garbage outside.”
The two waiters left and immediately called their brokers to sell their shares. Anyway, they had made some money from their shares.
These two waiters are lucky. Some people still think the stock index will rise and continued to increase their investments.
But the fall of the Hang Seng index will stop financial brokerages from raising funds. These institutes will not dare to raise funds for investments from the public.
If the stock index falls, many people will lose their money if they had invested.
……
Soros watched Hong Kong news, and the Hang Seng index is still falling. Some commenters even predict the Hang Seng index will fall below 13,000 points. This is not a piece of good news for him.
The more Hang Seng index falls, it will be harder for Soros to make any money. When Soros was pushing the stock index up, he had used a lot of money, but now, he is starting to suffer losses.
Seems like there is a financial market expert in Hong Kong. The stock index falling slowly will have no impact on Hong Kong’s economy and will not cause panic.
The Hang Seng index can fall below 13,000 points in two to three months, but Soros will not make any money.
Soros is considering if he should start to build a short position future contract portfolio now since the stock index is falling.
But if Soros is discovered and his opponents start to push up the stock index, his contracts might be forced to cancel, unless he tops up with more money. It will trap his funds in Hong Kong.
Should Soros give up the Hong Kong market for the time being and wait for two months?
Soros thought about this for a while and called his fund managers over for a meeting.
Three out of Soros’s four assistants felt they should wait and see. They should focus on the Forex market of the other countries and leave Hong Kong alone.
But Drucken Miller has a different view. He felt this is an opportunity to short the Hang Seng index. This way, they will be about to hold those tycoons in a stalemate.
Drucken Miller suspects that the ones selling the stocks are the tycoons, and they are raising funds to invest in the Forex market.
If these tycoons joined in, Quantum Fund would make profits from those Southeast Countries easily, but it will be harder for them to attack the Hong Kong market!
Soros could not decide, but he suddenly realizes that he should not provoke Hong Kong now.