nucmednet Chapter 97 Dog's Eyes See Through the Chess Game
Chapter 97 Dog's Eyes See Through the Chess Game
The tenth day of the first lunar month, which is February 12th.
The upcoming Valentine's Day seems to have become a calamity for everyone. Following the cessation of the dollar's convertibility to gold and the imposition of a 10% surcharge in 1971, the United States has announced a further 10% devaluation of the dollar against gold.
Last year, the Hong Kong dollar decoupled from the British pound and instead pegged to the US dollar. With the gold content remaining unchanged, the depreciation of the US dollar is equivalent to the depreciation of the Hong Kong dollar.
Money in your pocket, nothing happened, and it suddenly lost 10% in value?! The first people to hear the news rushed to exchanges, trading centers, shops…
Whether it's defensive assets, high-quality real estate, inflation-hedging assets, or even practical assets with real value, for them, buying them is practically a guaranteed profit.
Perhaps the goal wasn't to make money; the best outcome would have been if purchasing power hadn't been diluted. However, the Hong Kong dollar continued to maintain the exchange rate of 1 Hong Kong dollar to 0.146631 grams of gold.
In other words, the Hong Kong dollar appreciated by 10% against the US dollar, and the exchange rate became 1 US dollar to 5.085 Hong Kong dollars.
However, the anxious public was unaware that the Hang Seng Index, which had already stabilized at 1500 points, should have been pushing towards 1550 points, stimulated by the news of the depreciation of the US dollar and the Hong Kong dollar.
The stock market, which was bustling with activity, was like a light drizzle. No matter how fervent the emotions of investors were, they could not break through the seemingly insurmountable barrier of 1550 points.
Ring ring ring…
Upon connecting the call, the foreigner, Gard, exclaimed, "Mr. Chen is truly a brilliant strategist; Jardine Fleming Bank is indeed selling off large quantities of its shares."
Chen Guanjiang expressed his gratitude, saying, "Thank you very much for HSBC's help. I hope our cooperation will be even more pleasant in the future."
Although the Hong Kong Monetary Authority's net cash flow model was provided with the help of Bank of East Asia, it would have been impossible to obtain it so smoothly without HSBC.
This can be seen as a way of returning the favor by handing over Hongkong Land shares to HSBC. We should express our gratitude, as HSBC is an unavoidable capital if you want to make a living in Hong Kong.
Because he understood the situation clearly, his escape was exceptionally smooth, but he also felt sorrow because of it.
Morgan Stanley, which flowed in through HSBC, and Goldman Sachs, which flowed in through Jardine Matheson, were taking away Hong Kong's wealth!
If they had more funds and had positioned themselves earlier, they could have taken Hong Kong stock market investors and foreign investors with them!
Of course, nothing in this world is perfect, and it is already quite remarkable that we have achieved this success by taking advantage of the tide of the times.
"HSBC did it with just a small favor..."
The foreigner, Gard, exclaimed, "Chen Sheng is exceptionally gifted. He managed to sell before Goldman Sachs and snatch chestnuts from the fire after Morgan Stanley. He truly deserves to be called a financial prodigy."
"How many did you sell?"
HK$5.19 million!
“…………”
Chen Guanjiang didn't intend to hide it, but in fact, he couldn't hide it anyway.
Not to mention that half of the funds were leveraged through HSBC, even if they weren't, it wouldn't be hidden from this "Emperor of Hong Kong's Economy." Moreover, he also needed HSBC's help to sell stocks.
Sniper Capital is just a shell company; how could it possibly have the ability to supervise more than ten brokerage firms that were simultaneously selling their shares?
With such a massive amount of stock and funds, only a fool wouldn't strictly regulate the brokerage firm. The clients are Bank of East Asia and BOCOM.
Three months ago, the "Bull War" generated a profit of HK$3552 million!
After deducting HK$248 million in taxes, HK$3300 million was leveraged five times through Bank of East Asia to reach HK$1.65 million.
They subscribed to 100 million shares of Antenna stock with HK$100 million, and then used HK$728 million to increase their holdings of Antenna stock to 500 million shares.
The share price was HK$1.66 per share, and the selling price was HK$31 per share, resulting in a profit of HK$1.46 million and a net gain of HK$1.55 million.
…………
Of the remaining HK$1.56 million, after deducting 3.19% in taxes, HK$1.48 million was actually invested in the stock market.
Buy when the Hang Seng Index is at 711 points;
Sell at the current Hang Seng Index level of 1550 points;
Because the purchases were of high-quality real estate and banking stocks, the index rose by 118%, the share price rose by 143%, and the net gain was HK$2.11 million.
Bank of East Asia provided HK$1.65 million in funding with a three-month short-term preferential leverage rate of 12%. After deducting interest of HK$495 million, the total profit was HK$2.06 million.
…………
Zhou borrowed HK$5000 million and leveraged it to HK$1.5 million through HSBC's triple leverage. After deducting 3.19% tax, he invested HK$1.45 million in the stock market.
Buy at 852 points on the Hang Seng Index;
Sell at the current Hang Seng Index level of 1550 points;
The same stocks purchased were high-quality real estate and banking stocks. With the index rising 81% and share prices rising 106%, the net gain was HK$1.53 million.
HSBC provided HK$15 million in funding with a three-month short-term normal leverage rate of 1.5%. After deducting interest of HK$562 million, the total profit was HK$1.47 million.
Excluding the HK$5000 million loan provided by Zhou Xinian and the commitment to a 10% interest rate, the total amount is HK$0.92 million.
…………
Hong Kong Antenna received HK$1.55 million.
HK$2.06 million of its own capital was deposited.
The loan profit was recorded as HK$0.92 billion.
Profit of HK$4.53 million, plus the principal of HK$3300 million, brings the total planned revenue to HK$4.86 million!
Of course, there is also the HK$100 million debt owed by Shaw Yi-fu and the 10% short-term loan interest rate, as well as the 18.48 Hongkong Land shares borrowed from the Jardine Matheson consortium.
Sold at HK$123 per share three months ago, now Hongkong Land's share price is HK$65 per share, repaying 18.48 Hongkong Land shares and HK$77 in interest.
Compared to its peak of HK$145 per share, the current price of HK$65 per share is a drop of more than half. However, this price is still inflated by a bubble, and Chen Guanjiang does not intend to repurchase shares at this price.
To be precise, before the tax rate is settled…
It can generate a profit of HK$4.7 million!
"I estimate that the stock price will plummet when the exchange opens next Monday. My personal suggestion is that non-essential HSBC shareholders should sell their shares. Of course, if HSBC has its own expectations... everything depends on HSBC."
After finishing his meal, before turning over the table, Chen Guanjiang felt it was necessary to say hello.
after all!
HSBC, which withdrew from Shanghai in the 50s, poured an unimaginable amount of cash flow into Hong Kong, acquiring nearly 40% of the shares of almost all emerging companies in Hong Kong at the time.
The more they understand, the more wary they become, and the more they want to cooperate closely with HSBC, leveraging its power to drive their own growth and expansion.
At the same time, Chen Guanjiang also notified Li Peicai's family and his parents, who had illegally raised funds in his name, and unsurprisingly, he was met with a barrage of ridicule.
Good advice is hard to persuade a damned soul, and compassion cannot save someone who has committed suicide. It's good if they can listen, but there's nothing that can be done if they can't.
The foreigner, Gard, felt his heart pounding wildly in his chest and solemnly replied, "I understand. HSBC will definitely give Mr. Chen's suggestion a serious consideration. The timing... is in line with HSBC's expectations."
The stock market crash was common knowledge, but no one expected that Chen Guanjiang could pinpoint the exact time, especially right after he had sold all his stocks.
This indicates that the other party has already obtained key evidence that can burst the financial bubble, and in order to avoid harming friendly forces, they are willing to follow HSBC's instructions to advance or postpone the operation.
HSBC is highly intertwined with Hong Kong's economy. Bursting the financial bubble earlier would reduce losses for shareholders, which in turn would reduce HSBC's losses.
Moreover, by condoning the plundering of Hong Kong stock market investors by the two major American conglomerates, England has essentially paid the price for America's eighteen-year war of attrition, even though the final outcome was not entirely satisfactory for either side…