What's the news from Russia?" He Zhengcheng couldn't help but want to know all sorts of external information to find reasons for his long positions.
Many people are like this: after making a decision, they then search for reasons to support it.
"I'll go ask!" Xu Xin said.
"Has Wall Street not yet revealed the news of Long-Term Capital Management's massive losses?" He Zhengcheng asked Chao Yang.
"No news at all!" Chao Yang replied.
"Should we not now..." Yu Dehui, who had been silent, began.
"..." Chao Yang and He Zhengcheng both remained silent.
"Russia hasn't made a decision to default yet..." Xu Xin said.
In fact, this was expected; if the Hong Kong Monetary Authority didn't demonstrate its strength, all external good news would be illusory.
Strength, at its core, was still strength.
The Hong Kong Government clearly still had strong fighting power, so why hadn't it unleashed it?
He was genuinely annoyed at this point.
"Tomorrow is August 14th, the day after tomorrow is August 15th, which is Anti-Japanese War Memorial Day.
Do you think we can take a day off?" He Zhengcheng suddenly asked.
This day was not included in Hong Kong's statutory holidays, which he had repeatedly confirmed.
"The day after tomorrow is not a holiday, and it's a Saturday," Ji Jiasheng said.
"It can be a holiday; if not, it can be postponed by a day..." He Zhengcheng suggested.
"What do you mean?" Ji Jiasheng was a bit confused.
"Ask the Hong Kong Government if August 15th, Anti-Japanese War Memorial Day, can be a holiday this year!" He Zhengcheng reiterated.
"August 15th, a day off? That's possible!" Chao Yang exclaimed.
"Exactly, it's possible!" Yu Dehui also began to understand at this point.
Regardless of whether there would be a counterattack tomorrow, a day off could buy them some time.
"So, should we launch a media offensive today?" Xu Xin asked.
With a future full of uncertainty, this moment was truly very difficult.
The Hong Kong Government allowing Soros to breach 6500 points might have many negative consequences.
Building up some public confidence at this time, while not directly beneficial to them, seemed useful for society as a whole.
"Let's do it!" He Zhengcheng nodded in agreement, a hint of helplessness on his face.
"Sigh!" Chao Yang remained silent.
In the evening, on TVB, Ji Jiasheng participated in a financial program, expressing his views amidst a chorus of pessimism.
"A research report from our Shanhai Capital has already clarified the issue: Soros is out of money.
To be precise, in a few days, the foreign capital backing Soros will no longer provide him with sufficient support.
That's why he's now rushing, attacking the Hong Kong Stock Market and the foreign exchange market regardless of cost, aiming to defeat Hong Kong and the Hong Kong Monetary Authority in the shortest possible time.
Because he knows that if he drags it out, lacking funds, he will undoubtedly lose against the increasingly well-funded Hong Kong Monetary Authority." Ji Jiasheng stated.
"That can't be true, can it? Why would Soros lose? Why wouldn't Wall Street banks continue to support Soros?" The host asked curiously.
"Why do I say that? This goes back to when a few of us wanted to start a business.
To make money, we researched the most successful financial enterprises in the world and discovered something very interesting." Ji Jiasheng explained.
"What was it?" The host played along perfectly.
"We found that Long-Term Capital Management, currently a star enterprise on Wall Street, is facing a very serious risk of bankruptcy." Ji Jiasheng revealed.
"But this is a star enterprise!
They were founded in 1994, successfully raised 3 billion US dollars, and then participated in global financial markets.
As a result, in just a few months that year, they made a 28% profit, followed by 59% the next year, and 2.1 billion US dollars, or 57%, the third year.
Even last year, when Asia experienced a financial crisis, they still made a 28% profit.
You're saying such an incredible company is going bankrupt?
That's impossible!
I don't believe it, I absolutely don't believe it!" Another guest exclaimed dramatically.
"At first, I didn't believe it either, but out of trust in our team members, I carefully read the research report.
In the end, I chose to believe it!" Ji Jiasheng said.
"You mean that research report that costs 1 million Hong Kong dollars?
I heard a newly established investment firm was crazy for money, selling a single research report for 1 million." The guest mentioned.
"Exactly.
Let's not talk about the research report; let's continue discussing Long-Term Capital Management.
Over the past few years, Wall Street's understanding of their profit model has evolved from initial incomprehension to now having largely deduced it.
The specific operational method of this model is in our research report, so I won't elaborate here.
We calculated based on their profit model, capital amount, and other information.
Based on Long-Term Capital Management's current proprietary capital, conservative estimates suggest they use a leverage ratio of 50 times, and over 60 times is also plausible.
Such high leverage means their ability to withstand market risks is extremely poor.
Even a slight abnormal market fluctuation will inevitably lead to a crisis." Ji Jiasheng explained.
"What constitutes an abnormal fluctuation?" The reporter asked.
"For example, if I owe him money, but I suffer severe losses during a financial crisis and can't repay it, I can only default; at that point, their losses appear."
"That's nothing.
Even if they lose 10 million on you, they're still making money." The guest said.
"You forgot they have leverage.
If we calculate at the lowest 50 times, how much do you think they would lose?" Ji Jiasheng asked.
"No way, they lend money to others using leverage too?" The guest said, eyes wide.
"Of course, it's not that simple; the specific explanation will be in the research report." Ji Jiasheng replied.
"Oh, that's incredible." The guest remarked.
"The incredible part is yet to come.
As the financial crisis intensifies, various unexpected events are occurring in global capital markets.
Will Russia's debt problems affect neighboring countries, such as Germany?
At least I now highly doubt the safety of the G7 bonds.
The safest choice for global financial capital, including Hong Kong, is Wall Street, for example, their long-term national debt.
However, if a large amount of capital flows in, it will disrupt the normal economic order and cause unavoidable harm to Long-Term Capital Management." Ji Jiasheng explained.
"What if you're wrong?" The guest asked.
"Every one of our conclusions is supported by corresponding data.
In fact, as of today, I'm already quite surprised that there hasn't been news of Long-Term Capital Management's bankruptcy.
You should know that once this company goes bankrupt, it will severely impact the global financial order.
It could potentially create a man-made financial crisis on Wall Street." Ji Jiasheng warned.
"That's impossible, it's just one company!" The host exclaimed.
"But don't forget their enormous leverage ratio.
Wall Street banks are very greedy, believing this company's profit model has no flaws, so they are very confident and bold.
Based on their own capital of 5 billion US dollars, their positions in the financial market are approximately 250 billion to 300 billion US dollars.
The funds involved exceed one trillion US dollars.
If those one trillion US dollars run into problems, do you think Wall Street will experience a financial crisis?" Ji Jiasheng asked.
"So, Soros's backyard is on fire?" The guest, now quite astute, asked.
"Perhaps.
You could interpret it that way..." Ji Jiasheng replied with a slight smile.