nucmednet Chapter 72 A hungry dog knows by smelling fish
Chapter 72 A hungry dog knows by smelling fish
January 1, 1973, New Year's Day.
The living room of the Jian family mansion was packed with people. The elders were having a discussion in the inner hall, while the younger generation were chatting quietly in twos and threes.
Among the younger generation, Chen Guanjiang is the youngest, but he is the most famous for exposing the "poisoned horse case" at the race cup, which has attracted everyone's attention.
Clearly, anyone who could enter the Jian family mansion and stand alongside the core fourth-generation descendants of the Li Peicai family must have been favored and supported by the Li Peicai family.
Li Guoneng diligently introduced to Chen Guanjiang: "Besides our Li family elders, there are also uncles and elders from the Feng, Pan, Hu, and Rong families on the second floor... The inner hall is for the younger generation from each family."
Bank of East Asia was originally founded by the Li Peicai family, the Jian Dongpu family, and the Feng Pingshan family, with Zhou Shouchun serving as chairman.
Since Zhou Shouchun had no children, the East Asia Bank gradually fell into the hands of the Jian Dongpu family, with the Li Peicai family and the Feng Pingshan family providing assistance.
Half a century has passed, and the three families have intermarried for generations, so they are now inseparable by blood... at least on the surface.
As the population grows more and more, it is not advisable to engage in inbreeding.
Moreover, as the family's influence continues to expand into various fields, it also needs to form marriage alliances with families in other industries.
Just as the eldest daughter of the Jian family, Jian Xingchun, married Xu Shixun, the Xu Aizhou family, the "Shipping Magnate," also formed a marriage alliance...
Feng Qingli, the eldest daughter of the Feng Pingshan family, married Luo Delie, a marriage alliance between the Luo Wenjin family…
Of course, the most ruthless family has to be the Li Peicai family.
There are more than a dozen third-generation direct descendants alone, and the fourth-generation direct descendants are so numerous that it's impossible to recognize them all. The key point is that they are all extremely united.
With more people, there are more bargaining chips for marriage alliances; nearly half of the people in the living room are descendants of the Li Peicai family.
Let alone Hong Kong, which is a small quagmire, the entire Southeast Asia is full of wealthy overseas Chinese relatives. Sometimes, being able to have children is a skill in itself.
This is why the Bank of East Asia is controlled by the Chien Tung-pu family, and why the Lee Pui-choi family is ranked among the four major families alongside the Ho Tung family, the Chow Wing-tai family, and the Income-Shun family.
Li Guoneng was indeed doing everything she could to pave the way for Chen Guanjiang. She not only personally accompanied him to the tournament to show her support for him, but also brought him into the core circle of her bloodline.
With this connection, and out of respect for the Li Peicai family, Chen Guanjiang would never be turned away when he sought help in the future, thus gaining entry into the upper echelons of Hong Kong's Chinese community.
Chen Guanjiang quickly became acquainted with the younger members of each family, and couldn't help but ask curiously, "Why did you call me over in such a hurry today, New Year's Day?"
Li Guoneng replied, "The Hong Kong government has enacted a new law, passing a bill that allows for the free flow of foreign exchange, which has had a significant impact on the financial and banking industries..."
Hong Kong has long implemented foreign exchange controls, and currency inflows and outflows must go through the Hong Kong government's "Monetary Fund Authority" and "Exchange Fund Management Committee".
Clearly, the Hong Kong government could not withstand the rapid depreciation of the US dollar and was relaxing foreign exchange controls in preparation for further decoupling from the US dollar and implementing a "freely floating exchange rate".
What do you think?
"What do you mean, how do you see it?"
"The economy after the removal of foreign exchange controls!"
“…………”
Chen Guanjiang pondered for a moment, glanced at the guy, and said slowly, "Since the Hong Kong government can't withstand the pressure of the depreciation of the US dollar, relaxing foreign exchange controls should be a preparation for decoupling from the US dollar."
"So the dollar will continue to depreciate, and what will American financial groups that hold large amounts of dollars do? Of course, they will exchange the depreciating dollars for appreciating assets."
"The stock market and the real estate market are natural reservoirs, but the US dollar, as a global reserve currency, is not limited to circulation in the United States, but extends to capital markets around the world."
"Which reservoir is better? Hong Kong!"
"After three years of recovery, Hong Kong's property market has shown an extreme upward trend, and stock investors have never been educated about the capital market and lack financial vigilance compared to other markets."
Previously, I was blinded by a leaf and never saw things clearly.
Since Hong Kong Chinese could speculate in stocks as early as 1969, why did the stock market only experience a surge in 1973?
Now, having experienced it firsthand and understood the problem with the US dollar, I've come to realize the reason behind it in light of the international economic and monetary situation.
The US dollars will be converted into Hong Kong dollars and used for safe haven in Hong Kong!
However, capital is fluid; it's not like converting US dollars into Hong Kong dollars and sitting idly in an account.
However, capital is well aware that the massive amount of US dollars converted into Hong Kong dollars and flowing into Hong Kong will inevitably lead to a rise in Hong Kong's property and stock markets in a short period of time.
Whether it's investing in stocks or real estate, there are always huge risks involved. So what kind of business is risk-free?
The answer is: a loan!
Loans were provided to Hong Kong residents who wanted to speculate in stocks and real estate, and the massive capital injection caused their assets to rise while their currency depreciated.
While the purchasing power of paper money in hand and account balances is being drastically diluted, assets are constantly rising. The inevitable result is that people will abandon savings and embrace capital.
Once the US dollar stabilizes, if you want to exchange Hong Kong dollars back into US dollars and withdraw them, the circulation of currency in the market will shrink sharply, allowing you to reap high interest while also taking away some of the assets that have defaulted.
Once the dollar retreats, people will find this strategy really interesting and design cycles based on it, which is the so-called "dollar tide".
Li Guoneng pondered Chen Guanjiang's words over and over, her eyes widening in surprise.
Even though he studied law, as a scion of a banking family, he still has a clear understanding of the financial industry.
The more I thought about it, the more convinced I became that Chen Guanjiang's judgment was very likely correct.
Chen Guanjiang's willingness to explain his thoughts is also a way of reciprocating kindness.
Whether it was Li Fuzhao's previous assistance in getting into Hong Kong Antenna or his lobbying of Jian Yueqiang to approve the five-fold leverage, it was all an overture from the Li Peicai family.
The only project Chen Guanjiang collaborated on with them was the dog lovers' association, which did not align with the concept of being deeply tied to the family. Therefore, he revealed his views to enhance his value in their eyes.
Of course, the most important reason is that Chen Guanjiang has already poured all of the HK$300 million he raised into the stock market.
If the Li Peicai family could foresee this and enter the market as soon as possible, they could also boost the stock market, helping to increase their net worth while also gaining gratitude from the other party. Why not do it?
Moreover, given the Li Peicai family's banking heritage, even without explicitly stating it, they would understand once they saw the large influx of funds into Hong Kong.
Li Guoneng suddenly turned and ran, disappearing in a flash to the second floor.
Not long after, several people came down from the second floor and hurriedly went outside, leaving everyone completely confused.
Li Guoneng then came down as well, and looked at Chen Guanjiang deeply, saying, "Ajiang, come with me, Uncle Shu wants to see you."
The room fell silent upon hearing this.
The only person whom Li Guoneng can call "Uncle Tree" is Li Fushu, the eldest grandson of the eldest branch of the Li Peicai family and the current head of the Li Peicai family!