Rebirth in 1985

Chapter 7: Financial Storm ()

Actually, to be honest, Lu Shaohua is more conservative. It is true that Hong Kong is a developed city, and it is also true that Hong Kong is a top international financial market. However, Lu Shaohua wants to use 500 billion US dollars to save the Hong Kong stock market, which sounds a bit exaggerated.

Fifty trillion US dollars, even if it is five hundred billion Hong Kong dollars, it will be no problem to protect three or four Hong Kong stock markets, not to mention US dollars. Therefore, Lu Shaohua's thinking is still too conservative, or even too cautious.

Now that Liu Mingzhang brought it up, Lu Shaohua suddenly realized. After thinking about it, he still felt that he was too cautious. Using 500 billion US dollars to protect the Hong Kong stock market seemed to be a 100% goal, but in fact, it was not the case. Lu Shaohua gave this number without any calculation.

However, later on, Lu Shaohua seemed to realize that 500 billion US dollars was too much. This can be seen from the fact that Lu Shaohua allocated 200 billion US dollars out of the 500 billion US dollars to Phoenix Bank.

However, three hundred billion US dollars to cope with the Hong Kong stock market is still a bit too much. Of course, this number is not too much in Lu Shaohua's eyes, because Lu Shaohua did it for insurance purposes.

But in Liu Mingzhang's mind, 300 billion US dollars is still a bit too much. If Lu Shaohua had said some time ago that 300 billion US dollars would be used to deal with the Hong Kong stock market, Liu Mingzhang might have thought that Lu Shaohua was seeking insurance. The problem is that the situation is different now, because he learned from Lu Shaohua that Ho Ying-tung and others would also get involved.

Furthermore, didn’t Lu Shaohua take 200 billion US dollars as a loan? With this 200 billion US dollars loan, many members of the Chinese Chamber of Commerce will be able to protect themselves, which will reduce a lot of pressure on the broader market and the required funds will also be reduced.

But no matter what, whether the funds are more or less is not an issue. The problem now is the source of the funds. According to Li Yunqing's estimate, after the second wave of liquidation, the principal plus the income will not exceed 380 billion US dollars.

Thirty-eight billion US dollars is a gap of 120 billion US dollars from the 500 billion estimated by Lu Shaohua. 120 billion US dollars is a huge sum that Lu Shaohua can never raise no matter what he does. Unless he clears out his remaining positions in the stock markets of the three countries, he will be able to raise the total amount of 120 billion US dollars.

That’s right, if you sell off all the big-cap stocks in the stock market, there will be no problem in raising $120 billion. Why do you say that?

Logically speaking, according to Li Yunqing and his team's layout of the three countries at the time, even if there was a sharp drop, it would not be possible to make 120 billion US dollars. This can be seen by comparing with Thailand.

According to the profits in Thailand, more than 60 billion US dollars were invested, and finally the positions were liquidated to speculate on the Thai baht and the Thai stock market index, and the final profit was only more than 80 billion US dollars. This does not exclude the fact that the Thai stock market index and the Thai baht fell by a large margin. If this is excluded, then the profit would be even less than that of the three countries now.

But now, for a single currency, Li Yunqing said that the principal plus income is less than 380 billion US dollars. This seems a bit unreasonable, because whether it is Indonesia, Malaysia, or the Philippines, the currency decline is relatively small, and it is impossible to have such a large proportion of income.

Lu Shaohua seemed to be aware of this problem, so he asked, "I've always found it strange. According to Yun Qing's estimate, the gains from the currencies of the three countries this time will be 380 billion US dollars, which means it will be lower than this number, but not much less. What I want to ask is, if the decline is less than that of the Thai baht, why is there still such a big gain?"

"Haha!" Liu Mingzhang laughed but didn't say anything.

Li Zongen was not much better. He smiled without saying a word. His eyes were fixed on Li Yunqing. His meaning was very clear. He wanted Li Yunqing to explain.

Seeing this, Li Yunqing couldn't push it anymore, so he smiled and said, "Actually, there is a number here. If we calculate based on the amount of money we invested in the past, it would be impossible to make that much money this time, because the total amount of money invested at that time was only about 55 billion US dollars, and it was impossible to make a figure of 380 billion US dollars in principal plus income."

"Then why has it reached this number now?" Lu Shaohua asked.

As the saying goes, curiosity can kill a cat. This is the case now. Liu Mingzhang and Li Zongen have behaved abnormally, and Li Yunqing's words have successfully aroused Lu Shaohua's curiosity. Of course, Lu Shaohua has to get things straight before he will give up.

"It's actually very simple, because we added more funds later, and it's still a considerable amount of money." Li Yunqing still had a slight smile on his face, a little proud, and said. "In fact, when I think about it now, I'm a little scared. Well, I don't know if you still remember that the funds after the withdrawal from Thailand, you clearly stated that it was the third wave of funds, and you didn't specify how you wanted us to deal with it, so we invested all the more than 140 billion US dollars without your consent."

"Among the more than 140 billion US dollars, nearly one-third was invested in the Indonesian rupiah, which is about 35 billion US dollars. As for the Malaysian kyat and the Philippine peso, we also increased our capital, increasing the quota of both currencies by 10 billion US dollars. The remaining funds were allocated to the New Taiwan dollar, the Korean dollar, and the Japanese yen." Li Yunqing explained the allocation of funds in detail.

By now, Lu Shaohua finally understood it completely. It turned out that Li Yunqing and his team had increased their capital, which was why they were able to achieve such good results. However, Lu Shaohua still couldn't figure it out, so he asked, "The more you talk, the more confused I am. I remember that we evacuated from Thailand on September 9th, and Malaysia's Jilinte started to move the next day, September 25th. Your fastest speed was to enter the market at the opening of the market on the morning of September 9th. Could you still enter the market at that time?"

The issue of entering the market is very complicated. For example, in the case of currency speculation, you have to enter the market early. If you are late, when the currency falls, it will be difficult to enter the market, even more difficult than climbing to the sky. However, Li Yunqing and his team were lucky enough to enter the market on the morning of September 9, and they had a large amount of funds, which made Lu Shaohua very confused.

"Haha!" Li Yunqing laughed and then explained. "This is a long story. Originally, the more than 140 billion US dollars evacuated from Thailand had been allocated, and the remaining 550 million US dollars could not be allocated. At that time, it seemed that such a large amount of money would be wasted, so I gave it a try. The result was unexpected. I don't know what happened, but I entered the market smoothly. Well, I always thought that it was deliberately arranged by God. Anyway, I don't know what happened. It should be related to Indonesia and Soros's gang."

"Well, the same goes for Malaysia and the Philippines. It was purely an accident. The 10 billion US dollars also came in smoothly." Li Zongen, who had not spoken much, couldn't help but add a sentence for Li Yunqing at this time.

"Luck?" Lu Shaohua finally understood what was going on.

Think about it, the main reason why the Indonesian rupiah fell so badly was due to the Malaysian rupiah. Because Malaysia could not hold on that day and gave up holding on to the rupiah, it eventually plummeted, causing the Indonesian rupiah to fall as well.

This set off a chain reaction, and the two currencies fell sharply. However, Li Yunqing and his friends were able to increase their holdings. They entered the market during that momentary gap and made a huge profit.

"It was a lot of luck." Li Yunqing sighed and said, "I regretted it after I entered the market. I was really worried that such a large investment would have side effects. Fortunately, the result turned out to be good, and we finally succeeded."

Lu Shaohua nodded, but he didn't say anything. Didn't they succeed in the end? What else did Lu Shaohua say? In short, he could only say one sentence: "They made more money."

"Okay, I understand this matter now. Let's talk about Hong Kong. Now the funds are reduced. Although there is an unstable element of members of the Chinese Chamber of Commerce, we can't take it lightly. We should make preparations first."

"Don't worry, our people have made sufficient preparations. As long as the funds are ready, they will be on standby and can go into battle at any time." Li Yunqing nodded heavily and assured.

"Yeah." Things had come to this point. What else could Lu Shaohua say? Wei You smiled and gave Li Yunqing and the others a reassuring look.

"Oh! By the way, Mr. Feng looked for you again a few days ago. He said that when he went to your residence that day, the servants said you were not there and they didn't see you. And you haven't come here much in the past few days. I forgot to tell you." Liu Mingzhang suddenly said.

"Oh!" Lu Shaohua responded, then reacted, patted his forehead with a wry smile, and said, "I forgot. How about this, Mingzhang, you tell him that I'll be home tonight, and ask him to come over."

Lu Shaohua had indeed forgotten. He had originally planned to meet him on the evening of the 26th. However, on the afternoon of the 25th, Tai Sichen had just given birth to a child and was still staying in Ren Ai Hospital the next day. Lu Shaohua stayed in the hospital to accompany Qin Sichen until very late before returning to the villa. It was normal that he did not find him in the villa.

"Okay, I'll let him know later." After saying that, Liu Mingzhang paused, a little embarrassed, and said, "There's something I don't know if I should say."

"What's wrong? Why haven't I seen you so polite before? Now you have learned to be polite to me? Just say it directly if you have something to say." Lu Shaohua shook his head, feeling somewhat helpless, and glared at Liu Mingzhang unhappily.