Seeing a loss of tens of thousands of hong kong dollars, He Zhengcheng, who had not yet been thoroughly tested, felt a bit flustered. He quickly checked the rises and falls of the Hang Seng Index constituent stocks, which only slightly eased his mood.
Actually, there's a difference between stock index futures and the stock index itself. Never mind, a newcomer wouldn't understand these things anyway. Riding the coattails doesn't require skill; with less overthinking or firm conviction, one can definitely make money. The problem is, who knows how to ride the trend... "Am I sure the Hang Seng Index will fall? Why will the Hang Seng Index fall?" After a while, He Zhengcheng began to reflect on his panic.
The Hang Seng Index will definitely fall, unless Hong Kong replaces NASDAQ, and Daxia Country has a massive influx of capital into this market.
Soros's tactics weren't complicated. Hong Kong financial newspapers reported on it: first shorting the hong kong dollar in the foreign exchange market, then selling stocks, shorting valuations, and using capital advantages to launch a three-pronged attack on Hong Kong's financial market.
Since the Asian Financial Crisis last year, the only move the Hong Kong Monetary Authority has made is to raise interest rates, increasing the cost of financial speculation and maintaining the linked exchange rate. When bank deposit and loan rates are raised, the cost of capital use increases, causing many investment institutions to sell stocks and convert them into cash. The stock market is bound to fall, and Hang Seng Index futures will also decline simultaneously. This, in turn, helps Soros make money. Simply put, their capabilities and methods are insufficient.
So, will Soros abandon the Hong Kong market now? According to media reports, there's no sign of that possibility yet.
Since it's not possible, he will inevitably return and launch an attack on a future day. The fall of the Hang Seng Index is inevitable. If the Hong Kong Government and Hong Kong Monetary Authority respond poorly, the Hang Seng Index could even drop another three thousand points.
"Since the fall of the Hang Seng Index is inevitable, what do I have to worry about?" He Zhengcheng asked himself. The most important thing about riding the trend is to believe in yourself.
With his resolve reaffirmed, he saw the Hang Seng Index finally begin to decline: 8650, 8640, 8630—entry! In a surge of excitement, He Zhengcheng shorted another 5 lots of Hang Seng Index futures.
Watching the Hang Seng Index slowly decline, it remained calm and uneventful until closing! The Hang Seng Index finally closed at 8564, and his cost price was 8600. He had gone from one extreme to another, becoming very confident.
"Ding-a-ling-a-ling!" The Nokia in Cheng Zai's pocket rang.
"Hello!" said He Zhengcheng.
"Cheng Zai! This is Ji Jiasheng. Are you free now?" said Ji Jiasheng.
"Yes, I am!" said He Zhengcheng.
"We have a small studio here in XX Building and would like to invite you over for a chat!" said Ji Jiasheng.
"Oh!" XX Building, not far from here, is a well-known landmark.
"I'll drive over to pick you up. Where are you?" said Ji Jiasheng.
"I'm at XXX Building!" He Zhengcheng blurted out.
"Alright, I'm doing something nearby and will be there shortly!" said Ji Jiasheng.
He Zhengcheng walked out of the brokerage office and waited downstairs at XXX Building. Sure enough, in less than ten minutes, a Mercedes-Benz C-Class car stopped not far from him. Seeing someone wave at him, he walked over, confirmed it was Ji Jiasheng, opened the car door, and calmly got in.
To go with someone he'd known for less than a day, he was indeed a simple homebody.
"My friend is a very distinctive trader. You'll know when you meet him. We invited you over this time because we wanted to hear your views on the macro economy! Your perspective gave me a refreshing feeling!" Ji Jiasheng seemed to be explaining.
"Listen to me, are you sure? My major is hotel and tourism management!" He Zhengcheng was puzzled. Was this person crazy, or was he himself crazy?
"Uh..." Ji Jiasheng felt uneasy upon hearing this. Although a hundred thousand 'grass mud horses' didn't appear, he was at least hit by the impact of a thousand 'grass mud horse' mythical beasts.
"Profession doesn't equal ability. I didn't graduate with a finance degree either, but I still got into finance!" Ji Jiasheng tried to persuade He Zhengcheng, or perhaps himself, giving a reason! This was the punishment for impulsiveness.
He didn't understand the thinking of rich people; going to such great lengths just to chat with someone was quite rare. Did he have a protagonist's halo now?
Soon, they arrived at XX Building and walked into their office.
"Chao Yang, the friend I mentioned is here!" Ji Jiasheng called out as he entered. He Zhengcheng followed the footsteps from inside and saw a scruffy man with gold-rimmed glasses, seemingly in his 30s.
"That quickly!" Chao Yang shuffled over in slippers. The floor was carpeted, and judging by its somewhat dirty appearance, it probably wasn't expensive.
"Hello, I'm Chao Yang!" Chao Yang extended his hand and shook He Zhengcheng's, introducing himself simply.
He Zhengcheng entered the room, walked around, and then, under the guise of using the restroom, took a quick look. The room wasn't large, only about 1000 square feet, indeed a small studio. He wondered how many people worked there and if each person had at least 5 square meters.
"This is our temporary studio, just five or six of us," Ji Jiasheng briefly explained.
"I heard you're very capable. What are your thoughts on the future?" Chao Yang's tone was unfriendly.
"..." He Zhengcheng was a bit displeased and looked at Ji Jiasheng.
"Sorry, Chao Yang has a bad temper. We just want to chat with you..." Ji Jiasheng apologized while stating their purpose.
"Future? The future has long and short terms. In the long run, the Earth will explode, and humanity will perish; this is an undeniable fact." He Zhengcheng spoke these platitudes. The Earth's destruction is billions of years away, and humanity's demise might have to wait until the universe naturally fades away.
"We want to talk about the possible development of Hong Kong and the world economy over the next ten years." Ji Jiasheng held back Chao Yang, who was about to speak, and didn't get angry. Most capable people have tempers; those 'goody-two-shoes' in the workplace are usually not very skilled.
"The next ten years, the world economy—this is indeed a huge topic. I've thought about it, but I can only discuss it broadly.
I believe the biggest influences on the world economy come from two aspects: one is the new economy represented by the internet and Telecom technology.
The other is that the growth rate of Daxia Country will exceed many people's imaginations." He Zhengcheng looked at Ji Jiasheng and Chao Yang. Seeing that they didn't seem to contradict him, he continued.
"Let's talk about the new economy first. The internet in America's Silicon Valley is sought after by capital worldwide, especially after the Asian Financial Crisis. Global capital will likely flow into America's financial markets..."
He Zhengcheng had not finished speaking when Ji Jiasheng and Chao Yang showed expressions of shock. Such high-level insights were still very rare in this era.
When we are in an era, most people cannot clearly see the path ahead. The path ahead is like being shrouded in a layer of mist. He Zhengcheng's words, which would seem ordinary twenty years later, perhaps even a bit unconventional, appearing at this point in time, might have the miraculous effect of clearing the fog. They explained the reasons for global capital flow from another dimension.
In a world of economic globalization where capital can flow freely, where capital flows, there are more opportunities.
It's not that the economies of Southeast Asia countries didn't have problems, but how big could this problem be? If their bubbles had burst naturally, would they have caused the current adverse impact on their national economies?
It should be known that the losses of Southeast Asia countries did not only occur in the financial markets; countries like Indonesia even opened up their domestic natural resources. America's largest copper mining company entered Indonesia as a result, acquiring a world-class copper mine.
There are many similar incidents. Those who believe Soros did nothing wrong are either naive or foolish. Soros's actions are akin to someone seeing your old, dilapidated, flimsy door at home, wanting you to replace it with a new one, and then smashing your old door.
After smashing the door, will Soros leave? Young people shouldn't be too naive. Soros and his ilk are quick in and quick out, snatching some of the good things visible behind the door, and leaving the rest to the world police and the European Union's auxiliary police.
"Hey, hey, did your family pay taxes? Why isn't your land developed? Why aren't your children going to school in good clothes? I'll hire people to develop your land, and you'll be fined for child abuse..." The world police looted again... It's not that these elites never thought about it. For someone who thinks, new ideas appear almost every moment, some fleeting, some lingering for a long time.
This difference is greatly related to a person's overall qualities, such as education level, way of thinking, breadth of vision, and personality traits.
Ji Jiasheng and Chao Yang listened, and subconsciously, they somewhat believed him. Behind the Asian Financial Crisis was a game of nations...