The Son of Finance of the Great Age

  Chapter 463 The Most Expensive Threat (2)

   "Tell me, what exactly do you want to do?"

After the meeting, Zhong Shi was left alone. Not long after he and Ren Yi entered Cen Yinquan's office, Cen Yinquan walked in angrily, first threw himself on the executive chair, and then flipped through the office in front of him. The books on the table, but after seeing Zhong Shi's indifferent face, Cen Yinquan became angry and threw the big book on the table heavily, and then asked with a displeased face.

After several contacts, both Cen Yinquan and Ren Yigang had a preliminary understanding of Zhong Shi's nature. They also analyzed it in private. He is a bold guy who simply ignores any rules. He can take any risk. If it weren't for his pure heart, neither Ren Yigang nor Cen Yinquan would be sure to control Zhong Shi.

  Cen Yinquan has no doubt that everything Zhong Shi said at the meeting just now may become a reality in the foreseeable future. And the reason why Zhong Shi can change his words shows that there is still room for negotiation between the two parties, but when he thinks of Zhong Shi's ambitious ambitions, even Cen Yinquan can't help but feel a little headache.

  That's why he planned to give Zhong Shi a big blow when he came up first, hoping that he could restrain himself a little and not open his mouth too much.

Zhong Shi naturally doesn't take this kind of thing. He is very clear about the bargaining chip he has now, which has absorbed nearly 5% of the shares of the entire Hang Seng market. Tianyu Fund has become an existence that no one dares to underestimate. In the eyes of some people, it has become a monster. So he shrugged slightly when facing Cen Yinquan's sternness, spread his hands, put on an innocent face, and said with a little grievance: "Director Cen, what you said is a bit inexplicable. What do you mean? What, I didn't think about anything, I didn't do anything."

"Okay, there are no outsiders here, so stop pretending!" Ren Yigang stood up to smooth things over at this time, first winked at Cen Yinquan, and then said to Zhong Shi with a pleasant face, "Zhong Sheng, let's talk openly and honestly." Once. I believe you also know that we originally had an agreement with you, but for you, even the chief executive has been under a lot of pressure. After all, we cannot refuse the kindness of the central government. Fortunately, everyone is happy in the end The ending, so you don't have any complaints."

"I kept you here this time because I hope you can talk to us frankly. First of all, how to prevent international speculators from continuing to short Hong Kong's economy is the most important thing; another point is that international speculators contact you. We want to know the specifics and what you think about it, which is especially important."

Although he was secretly competing with Cen Yinquan in his heart, he felt that Ren Yigang was relatively easy to deal with. Zhong Shi immediately put away his cynical smile and replied seriously: "International speculators contact me naturally for the next step. They also know that, It is impossible for me to have the financial resources to support the market next time, so I hoped to borrow stocks from me, but I sternly refused. Not only that, but I also set a trap for them. They will kill each other, and will never take the Hong Kong market into consideration again."

  Hearing what Zhong Shi said, although they didn't know the specific inside story, Cen Yinquan and Ren Yigang didn't doubt the authenticity of what he said. Because from the beginning of contact until now, Zhong Shi has never said a big word. Immediately, joy appeared on Ren Yigang's face, and Cen Yinquan, who deliberately turned his head to pretend not to care about the conversation here, also unknowingly stretched his head over.

   It's just that Zhong Shi's next sentence made their hearts tighten.

"Although I managed to alienate them, this is not a long-term solution, because in the face of absolute interests, they may still abandon their previous feuds and stand together again. Therefore, what we have to do now is also a long-term plan of mine. The first thing is to cut the bottom line, cut off the food for international speculators, and at least make them dare not covet Hong Kong within three to five years."

   Xirou is finally here! Cen Yinquan and Ren Yigang glanced at each other, realizing that Zhong Shi was finally going to tell the biggest purpose of coming today, but because the matter is related to the stability of Hong Kong's economy in the future, even if they knew that the other party must have plans, they had to listen patiently go down.

"I believe you should know that although interest rates in the United States are showing a gradual downward trend, the cost of financing in dollars is still high. Of course, this high is compared to other markets. Therefore, speculators will find ways to get financing from The low-cost market borrows capital, and in the case of a large amount, the interest saved is very considerable."

"Looking at the global market, only Japan, the world's second largest economy, can borrow funds at low interest rates. As we all know, due to the perennial sluggishness of the Japanese economy, in order to boost confidence, successive Japanese governments have adopted low interest rates. Therefore, the cost of borrowing yen in the market is very low, even with an annual interest rate of less than 1%, which is too low for the US dollar’s ​​annual interest rate of 3% to 5%.

"So, the speculators use their US dollar assets as collateral to borrow a large amount of yen from Japanese consortiums, then convert them into US dollars, and then invest these dollars in the international financial market to make waves. Don't ask me how I know this, Because that's what I did at one point. Now, you see what I'm trying to say, don't you?"

  International interest rate differentials are a common situation. Because the economic development status of each country is different, the central bank adopts different interest rates to stimulate or suppress economic development. Of course, holding US dollars will always be the first choice of investors. For some capital with a high degree of risk aversion, interest rates are their best investment products, and simple deposits or treasury bonds and high-credit corporate bonds are their favorites. When the exchange cost is less than the interest rate, these capitals tend to flow to countries or regions with higher interest rates.

For those capitals that are less sensitive to risk and are aggressive, high interest rates have become a drag on them, because it means that they must operate more actively and aggressively in the market to obtain returns, otherwise if even interest rates If you can't outperform, even the most loyal investors will inevitably have opinions.

While forging ahead, the cost of these capitals will naturally be greatly reduced, so those countries or regions that can freely convert currencies and have low interest rates become their first choice for financing, and now there is such a ready-made country, Japan.

However, there is one thing worth noting about this financing method, that is, the exchange rate risk, because these capitals are US dollar capital after all, and most of their investors only recognize US dollars, so if there is a large fluctuation in the exchange rate of the yen to the US dollar, these capitals may be face considerable risks.

Of course, they must have thought of this at the beginning, so there must be corresponding means to deal with it, such as hedging with options, locking in forward currency contracts, etc., but no matter how hedging measures are taken, the exchange rate There are always risks.

It’s just that in the past few months, due to the impact of the Asian financial turmoil, the exchange rate of the yen to the dollar has been declining steadily, and even fell to the level of 130 yen to 1 dollar. Made a small fortune.

  In the past few months, the Bank of Japan has been dispatched everywhere in an attempt to play the role of savior in the Asian financial turmoil. They wield huge amounts of money and want to persuade one country after another to be more closely linked with the Japanese authorities. However, these countries, which have already understood the essence of the situation, dare to join forces with Japan to create a regional fund similar to the IMF, but only valid in Southeast Asia. So until now, even though the Japanese government has poured out a lot of money, it has still made no political progress. Instead, the flames of war almost reached their homeland.

  Of course, everyone knows that although Japan has been slightly affected, it will definitely not happen like the situation in Southeast Asian countries.

"what do you mean…"

  Ren Yigang's thoughts changed sharply, and he quickly came to a conclusion from Zhong Shi's words, but this conclusion surprised him. Before he said it, he had to verify whether his thoughts were correct.

  However, when he met Zhong Shi's gaze, saw the other party nodded slightly, and confirmed that his thoughts were correct, the corners of Ren Yigang's mouth twitched slightly, and he fell silent.

Cen Yinquan is not a professional, and he is not used to the way the two of them only rely on eye contact. When he saw that Ren Yigang was thoughtful and hesitant to speak, he couldn't help it, and urged Zhong Shi: "What is it? What is it, you better explain it clearly! What happened to Japan?"

"Oh, it's nothing!" A narrow smile appeared on Zhong Shi's face, and he raised his eyebrows and said to Cen Yinquan, "It is to let the Hong Kong government use foreign exchange reserves in the near future to affect the trend of the yen, what do you think? "

"how can that be?"

  Although Cen Yinquan is not a professional, he still has a little understanding of the foreign exchange market. Although the foreign exchange market in each country is composed of thousands of foreign exchange investors, the final decision on the exchange rate is also the result of their wrestling, but apart from the Federal Reserve, I am afraid that there is no second central bank in the world that will let its own currency "Free" performance in the market, because the exchange rate is related to the fundamental interests of a country.

  In fact, in the foreign exchange market of each country, the central bank is the biggest banker.

  And if the Monetary Authority uses foreign exchange reserves to buy yen, even if the amount is small and the action is not big, but without notifying the Bank of Japan, such behavior is extremely taboo. Just like tigers entrenched in two different places, if one stepped over the boundary, even if it was unintentional, the other would be vigilant.

"I still don't understand why they have anything to do with the yen?" Cen Yinquan asked in puzzlement after categorically vetoing it, "Could it be that buying the yen will stop them from attacking Hong Kong? What kind of logic is it, I said you two should at least explain to me clearly what is going on here?"

"By doing long yen, they will increase their financing costs and make them need to pay more dollars to repay the yen loan. This is the simple truth." Ren Yigang slapped his thigh and couldn't help but sigh in admiration, but the next moment, He realized what Zhong Shi said to Cen Yinquan just now, and his thick eyebrows raised again, "This should not be feasible. How can we interfere with other countries' foreign exchange currencies?"

   "Yes!" Cen Yinquan quickly echoed.

  Zhong Shi crooked his mouth, his expression was very disdainful, the next moment he lifted his foot and walked outside, and said as he walked, "If this is the case, then I have to talk to Soros and the others!"

"Don't! Don't!" Ren Yigang hurriedly lowered his body, trotted a few steps, grabbed Zhong Shi, and said with an apologetic smile, "Zhong Sheng, you are making a naked threat, but it doesn't matter, what exactly do you need, we just cooperate !"

  After some kind persuasion, Zhong Shi said unhurriedly: "That Mr. Wang Xuehong Wang hasn't gone back yet, I need him to help me put on a play now!"

   Thanks to book friend Huang Tianlong for voting for the monthly ticket! I hope you will support this book more, especially those who are new to this book, don’t be disappointed. The author admits that there were a lot of problems at the beginning of this book, but he has tried his best to improve it later. The author is working hard all the time and looking forward to more Thank you so much for your attention and support~

  (end of this chapter)