Chapter 176: 97 Stock Disaster

Cheng Canghai was busy with official business and could only take half an hour to see him. Yang Xing quickly handed over the plan to invest in China Ping An and Shenzhen Development on his desk. He looked around and said that the matter was mentioned in the last time the Guangdong government and China Star International Cooperation Plan was mentioned, and he was not surprised. He served as the president of the People's Bank of China from 1993 to 1995. He knew the resistance policy and resistance encountered in the cooperation plan proposed by Yang Xing, so he thought for a while, "Your idea is feasible. When China Merchants Bank was established, it was the Hong Kong company that occupied the majority. If you want to take control of domestic joint-stock financial institutions through the acquisition of Hong Kong financial institutions, it is indeed less debate. I can express your opinion to you. As long as you do not harm national interests when negotiating with domestic companies, you can try all kinds of measures that are beneficial to the development of the company. Reform is to cross the river by feeling the stones and be braver."

"We are now negotiating the WTO. People's main requirement for us is to open up the financial market. But you also know the situation of domestic financial institutions. There are also high calls for opposing the direct opening of the financial market in China. They often use this example of the Asian financial crisis to oppose the opening of the financial hole. But we can't always be an ostrich hiding in the sand. Turning a blind eye to problems is not a solution. I will talk to the People's Bank of China about financial reforms that can be tried with multiple ownership models within the scope permitted by the policy. This time, you will be one of the experiments." Cheng Canghai was moved after reading Yang Xing's report and rarely discussed the issue of domestic financial institutions with Yang Xing.

Of course, Yang Xing was very happy. With Cheng Canghai's personal promise, he had much confidence in dealing with the People's Bank of China. Although the actions involving foreign investment in financial institutions caused changes in shareholders will probably be delayed for a while, once he has a large real financial institution Xingfu Investment, he is considered a veritable financial core of the group, and Zhongxing International is qualified to get closer to major consortiums such as Japan and South Korea. Now that the financial storm is raging, it can be invincible. Cheng Canghai's worrying problem of financial institutions reform is even more a big article. In his previous life, the reform of the four major state-owned banks will be delayed until the first ten years of the next century. Yang Xing can only help Cheng Canghai solve this problem in advance if he develops himself.

As the leader of the country, Cheng Canghai will not be stingy at one point. He quickly raised another question: "I have received news these days that the sharp drop in the Hong Kong stock market has led to a sharp drop in the US stock market. The financial storm shows signs of spreading to Japan, South Korea and other countries and even spreading the world?" Yang Xing was flattered by his view of himself as a think tank for consultation, and quickly mobilized his resources to explain in detail the latest progress of the financial storm.

Although Yang Xingren is in Beijing, his ties with Hong Kong and other places have not been interrupted. Now he has caught up with Robertson's Tiger Fund line and learned that some shady and dirty things under the financial crisis are not uncommon. Although the Hong Kong government has repeatedly suppressed the stock market since July, from a high of nearly 17,000 points to 12,000 points in September, which is more than 2,000 points lower than the 14,000 points in history at this time, and there is no fluctuation. It has squeezed out a lot of water in the stock market, making international speculators' first attempt to impact the Hong Kong dollar's exchange rate return in vain.

However, with the new wave of currency depreciation in Southeast Asian countries starting from September 18, the Hong Kong-related exchange rate, which has maintained a slight change in the exchange rate with the US dollar, has attracted the interest of international speculators who have just gained a lot of interest from Thailand, Indonesia and other places. After October, the four Asian little dragon currencies were attacked one after another, and the Singapore dollar fell below the psychological support of 1 US dollar against S$1.5600, falling to the lowest level in 42 months; South Korea's economy has declined since the end of last year, and a large number of large consortiums have begun to rise to the beginning of the year.

The collapse of the financial crisis was encountered in a century! The Korean won exchange rate fell from 890 yuan to 1 US dollar in July to 953 won against 1 US dollar in October, setting a record since the establishment of the South Korean foreign exchange market; the Taiwan government spent more than US$5 billion from July to October to defend the New Taiwan dollar, but it was still a drop in the bucket. It was forced to voluntarily announce the abandonment of the New Taiwan dollar in mid-October, causing the New Taiwan dollar exchange rate to fall from 1 US dollar to 27.85 NTD in early July to 33 NTD against 1 US dollar in early July to 33 NTD.

Taiwan's actions caught Hong Kong off guard and were scolded by the Hong Kong financial industry for harming neighbors. At this time, only Hong Kong was left alone. In addition, the financial crisis began to spread to the real economy. Since early October, the Dow Jones Index of the United States fell first, which brought a heavy blow to the Southeast Asian stock market that relies on the US economy. The Hong Kong stock market was not spared to continue to fall.

At this time, the Hong Kong stock market was deteriorating as the overall external economic situation deteriorated, and the pressure on the financial crisis toward the depths increased, and those international investment banks and funds were even more fueled. After the New Taiwan dollar abandoned, the market was weak and people were fluctuating. At this time, Morgan Stanley made a heavy blow. Its chief analyst Biggs suddenly announced that it would be indifferent to the Asian stock market. The company's shareholding in Hong Kong would drop from 2% to zero. At the same time, under the leadership of four large funds, foreign capital sold goods and left the market.

Under the dual influence of internal and external factors, the Hong Kong Hang Seng Index fell sharply for two consecutive days on October 21 and 22, with a cumulative decline of nearly 1,200 points, and the stock market shrank by 9%, which was described as a minor stock market crash by local market participants. On the 23rd, the Hong Kong Hang Seng Index continued to decline, with a minimum drop of below 1,871 points, with a drop of 10.4%. It is generally believed that the decline of this day can be compared with the Black Monday of the Hong Kong stock market in 1987.

Ranked first among the top ten decline records of the Hang Seng Index was October 26, 1987, known as the "Eighth Seven Stock Market Crash", which fell a total of 1.00 points on that day, with a closing index of 33.33%! The decline on October 23, 1997 became the second in history. From the highest point of the stock market in 16,000 points in 1997 to the lowest point of the day on October 28, the Hong Kong stock index fell by nearly 7,000 points, a drop of 40%!

The market value of Hong Kong listed companies is calculated in a single day and loses an average of HK$433.5 billion in one day! Compared with the peak market value of HK$433.54 billion in July, the stock market has decreased by HK$1542 billion, a decrease of 35%! In contrast, the wealth of Hong Kong rich people has also shrunk significantly, and the top ten Hong Kong rich people are estimated to have lost more than HK$210 billion in stock market crashes. Since real estate stocks are the first to be hit in the stock market, the decline is larger than other shares, the wealth of the four major real estate rich people in Hong Kong also suffer the greatest losses.

Moreover, the slump in the Hong Kong stock market during this period also led to a sharp drop in the US Dow Jones Index on October 27. When Yang Xing came, he got the latest news, starting with the "Black Monday" on October 27. On the 27th, the US Dow Jones Index plummeted by 554.26 points, forcing the New York Stock Exchange to use the suspension trading system for the first time in nine years. The next day, on October 28, the stock markets in Japan, Singapore, South Korea, Malaysia and Thailand fell by 4 respectively.

.4%, 7.6%, 6.6%, 6.7% and 6.3%. In particular, the Hong Kong stock market was once again impacted by external shocks. The Hang Seng Index fell 1,200 points and 1,400 points on the 27th and 28th respectively. In just three days, the cumulative decline of the Hong Kong stock market exceeded 25%! The continued decline of Hong Kong stocks, its sharp decline and huge losses, shocked the world. There is no doubt that Hong Kong stocks became the second largest stock market crash after the "87th Stock Market Crash" in 1997.

In short, despite the previous suppression, the Hong Kong stock index has not completely escaped the dilemma of a sharp drop. Although the losses of ordinary investors are far less than those of previous lives due to inactive trading volume. However, the impact of the 97 stock market crash on the Hong Kong economy is still very negative. The stock market and housing market are both lost. The final flood control embankment - the exchange rate - is particularly important to the Hong Kong government. The speculators who have been rampant in Southeast Asia for a long time will not miss this opportunity and are flocking to Hong Kong to find the flaws of the Hong Kong dollar.

Cheng Canghai also felt a headache after listening to Yang Xing's story. Now it seems that Yang Xing's prediction is very accurate. If the economic crisis continues to develop, no one can afford the consequences. Other countries cannot control the affairs of the situation. Now it seems that helping Hong Kong through the crisis is the top priority at the moment. He has received a report on the domestic and foreign trade situation, and the conclusion is not optimistic. As one of the two wings of China's economic take-off, the country's exports have begun to feel huge pressure. In many coastal cities, investment from Southeast Asia, Hong Kong, Taiwan, Japan and South Korea has basically stagnated. Many foreign investors slipped away overnight in order to evade funds, resulting in a large number of factories being shut down and workers being unemployed, creating a large number of unstable factors for the local government and society.

He asked, "At this time, the central government issued a statement to support the Hong Kong economy and the linked exchange rate. What do you think?" Yang Xing nodded and said, "This plan is good. It is best to have a tough tone and imply that Hong Kong and the mainland will join forces. The two places have sufficient foreign exchange reserves, which will surely be able to eliminate the fantasies of some international speculators!" Cheng Canghai pondered for a moment and said, "I think I'll go to Hong Kong again recently. Everyone can do it. The mainland needs to provide timely assistance to Hong Kong at this time!" Yang Xing deeply agreed. He remembered that Cheng Canghai's mileage to Hong Kong was already a crisis in his previous life, and obviously his movements were slower. This time, he, the little Zhuge, kept ringing the alarm for the upper class, and now it finally worked.

Cheng Canghai looked at Yang Xing and smiled and said, "Don't always think that we only listen to suggestions and have no rewards. How about you accompany me when I go to Hong Kong this time?" Yang Xing was overjoyed when he heard this. This is a huge benefit. Chinese people like to talk about relationships most when doing business. If he can let the outside world see him accompanying the Prime Minister to Hong Kong, even if Cheng Canghai doesn't say a word, the rich relationships from the outside will make Yang Xing's business path and negotiations smoother.

After leaving Zhongnanhai, he was in a good mood and hummed proudly the song "I smile proudly, I smile proudly." Seeing Wang Yiren standing next to Lingzhi Car floating in the sun, he was in a good mood and rushed up and hugged her and kissed her quickly on his red lips. The frightened Wang Yiren was flushed by his kiss and pinched him hard and said, "Are you crazy?" Yang Xing ignored the eyes of others. He hugged her and said, "I will have a holiday for you these two days, call those little girls, let's have a good tour of Beijing. Last time, the courtyard house on Xiaotang Mountain was well occupied. Do you think I need such a courtyard to temporarily stay in Beijing in the future?"

Guo Ying, who got out of the Lingzhi car, smiled and said, "Didn't we build a rose garden and a world park in Beijing? We also want to buy a courtyard house separately? Nowadays, men like cunning rabbits to have three holes, so what kind of intestines do you want to move?" Yang Xing hugged Wang Yiren and her in the waist, "Look at what you said, don't I just want to bathe in hot springs with you again? You know me, I like passive." Guo Ying bit his earlobe, "Passive? That's because I haven't met someone who makes you take the initiative, say! What's the intention!" Yang Xing was righteous and righteous: "I am a staunch revolutionary. Without a beauty trick, I will not help you!"
Chapter completed!