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After the outbreak of the Beiyan Bank run, it had a huge impact on the UK, which is the world's financial center. Famous banks such as HSBC Standard Chartered all fell sharply. It is rumored that the British government is preparing to inject 50 billion pounds to nationalize the eight largest British banks in order to save the financial industry at its core. This news has a great impact on Hong Kong, which has always been greatly affected by British capital. The rumors of Iceland's sovereign debt bankruptcy that followed made many Hong Kong citizens even more uneasy.

Because compared with the relatively closed financial system in the mainland, Hong Kong, as an Asian financial center, its open financial trading system is almost synchronized with the international community, and many businesses are linked to the international community. Now, with the financial tsunami, many Hong Kong financial institutions have been affected by fire at the city gate and are facing a catastrophe.

As the headquarters of the group, Yang Xing certainly would not sit idly by and watch the financial tsunami swallow it up. In fact, when he met Wen Rengui and Chief No. 1 and made predictions for the Western economic crisis, he talked about how to deal with it. However, even the national leaders did not expect that Yang Xing's saying that throwing a few stones to make his opponent wet his body would turn into a huge tsunami. Now it seems that although Yang Xing is fueling the fire, there are still problems in the Western financial system itself. He has reminded people many times that no one takes it seriously. Now that the wolf is really here, it cannot be said that it is all Yang Xing's responsibility alone.

Of course, Yang Xing knew the power of the financial tsunami and knew that letting it develop would have a significant impact on the domestic and Hong Kong economy. Even if he could not fully confess his feelings to Wen Rengui and the No. 1 leader, he took the initiative to make suggestions before the tsunami, so that the domestic and Hong Kong would prepare early. He could still do it, so he faced the financial tsunami. He gave many great tricks for Hong Kong and the country behind the scenes.

Shortly after Wen Rengui and Paulson concluded through the Sino-US political and economic strategy dialogue meeting that it was necessary to work together to resist the financial crisis, Wen Rengui took the initiative to announce that it would launch a 4 trillion yuan rescue plan at home and abroad to stimulate domestic demand to ensure economic growth. As soon as this plan was proposed, it attracted great attention from both home and abroad.

The 4 trillion investment in the previous life did not start until 2009. Most of the arrangements were to infrastructure construction, railways, highways, airports, water conservancy, etc., which were nicknamed "iron engineering foundation" and accounted for about 1.5 trillion yuan. In terms of social undertakings such as education, health, culture, and family planning, it was generally 1.50 billion yuan. Energy conservation and emission reduction, and ecological engineering generally had 210 billion yuan. Adjusting structure and technological transformation was generally about 370 billion yuan. In this way, it would be 3 trillion yuan to add one. The remaining 1 trillion yuan was originally used to deal with the post-earthquake reconstruction. Now, under the strong advocacy of Yang Xing, it has become the funds for the construction of affordable housing such as low-rent housing and affordable housing nationwide.

In addition to Yang Xing's role, the 4 trillion yuan rescue plan also reflects the need for domestic economic transformation. As a major export-oriented country, since China joined the WTO, the situation where China's domestic weak industries, which had been widely worried about, can survive fierce competition due to participation in the international division of labor, has not yet appeared. The steel and automobile industries have continued to grow, and many domestic industries have used this to enter the international market, give full play to the advantages of domestic costs and centralized production, and continuously occupy market share in the competition, and the status of the "world factory" has become increasingly stable.

However, this also caused the domestic economy to have a very high dependence on foreign exports, which exceeded the extent when Japan's economy took off. The southeast coastal coast has become the fastest growing region in China due to import and export trade, which is equivalent to an economic engine. However, when this financial tsunami comes, the liquidity of currency has decreased. The financial engine that provides funds for the real economy has died and the international market has shrunk greatly, which has a heavy blow to domestic manufacturing. A large number of overseas orders were cancelled, foreign investment has decreased, and many companies specializing in foreign trade are on the verge of bankruptcy. A large number of migrant workers on the coastal coastal areas are unemployed.

Of course, I don’t want to take this situation lightly. Domestic mainstream economists believe that the practice of relying solely on cheap labor to process materials should have long changed their thinking, turning investment to drive economic growth into a stimulating consumption model, but starting consumption also requires the key. In the face of the financial tsunami in China, I finally picked up the most effective old method in the past and invested huge amounts of money in domestic infrastructure to offset the economic decline caused by the decline in exports.

The only difference from his previous life is that Yang Xing suggested that the construction of affordable housing should be increased in real estate reform, so that one-quarter of the 4 trillion yuan of rescue funds could be divided into. After the real estate and social security funds storm last year, the officialdom is now much more cautious about the idea of ​​using the real estate industry as the pillar of the economy. The country has advanced the national real-name network system for housing registration in advance, and a severe investigation into various illegal acts in the use of land sales funds to subsidize finances, as well as the practices strongly opposed by the people during the land acquisition process, which has caused real estate developers and local officials to restrain themselves a lot. The enthusiasm for real estate development in China has been much more restrained than in the previous life. The West's practice of causing this mess due to the subprime mortgage crisis in the real estate industry has also made the country very wary of real estate development. The real estate boom in the previous life has ceased before it even began.

As a rebirth, Yang Xing knew that after the 4 trillion yuan rescue plan was launched in China, the results were significant, but the most criticized part was that it once again promoted the fanatical growth of domestic real estate. Housing prices soared, and the people complained, which became a big failure. He did not want to repeat the same mistake in this life, so although Xinghua Real Estate was the goose that could lay golden eggs the most, he did not hesitate to offer advice to the central government. Since the domestic housing demand is very large, and the income of middle and lower-level residents in many cities does not match the housing prices, we cannot completely rely on the market to adjust. The state must stand up and implement subsidies to provide low-rent housing, add property tax for two houses, and strictly control the identity approval of home buyers to control the disorderly rise in housing prices.

Although the large investment of 4 trillion yuan in domestic rescue funds is only equivalent to more than 500 billion US dollars in the United States in terms of currency exchange rate, its purchasing power is far beyond the $700 billion rescue plan signed by President Bush Jr., not to mention that Americans use this money to fill the big holes caused by Wall Street, while Chinese people are building solid railways, affordable housing and other infrastructure, developing education, and building ecological projects. Compared with the two, the difference is determined.

With the domestic investment of 4 trillion yuan, Hong Kong is not willing to be outdone. After an Asian financial crisis, the Hong Kong government did not dare to neglect it. In recent years, it has also accepted the idea of ​​Yang Xing's government controlling the economy. If necessary, it needs to rely on investment to drive economic growth. Immediately launch and accelerate the construction of several large investment projects in order to drive economic growth.

The development projects such as "Silicon Road", Chinese Medicine Port, Kwun Tong Industrial New Area planned by Yang Xing last year were green lights all the way in the Legislative Yuan. As the largest bettor, the Hong Kong government even announced the second and third phases of the project that was still being discussed on the basis of the original investment, and the construction progress of these projects has been greatly accelerated. The long-standing cross-sea bridges connecting Hong Kong, Macau and Zhuhai, the site selection of the new MTR line, and the high-speed railway connecting Shenzhen and Guangzhou were all settled and were put on the construction schedule. In terms of infrastructure alone, the Hong Kong government invested more than 150 billion Hong Kong dollars this time!

At the same time, in the financial field, Chinese banks led by Xingfu, Bank of China, etc. faced the threat of bankruptcy in Iceland and the deposits of depositors turned into a bubble, and took the initiative to stand up and announced that they would protect the interests of small and medium-sized depositors, never lower the interest rate of depositors, and protect the deposits of large customers. In order to stabilize people's hearts, the Hong Kong Monetary Authority also actively asked the Hong Kong Monetary Authority to conduct stress tests on financial institutions across Hong Kong (a method of financial risk analysis based on quantitative analysis, usually including bank credit risk, market risk, liquidity risk and operational risks). The public results prove that most Chinese banks in Hong Kong have capital adequacy ratios higher than those of British banks such as HSBC.

At this time, everyone remembered that Xingfu Bank's method of divesting non-performing assets and increasing capital adequacy ratio was really foresighted. Now Xingfu Bank is the safest place in the crisis. It can be invincible by absorbing depositors. Other banks only have envy. The International Monetary Fund is also very interested in the Hong Kong government's bank stress test practices, and believes that the United States, Europe and other countries can be copied.

But stress testing undoubtedly requires financial institutions to provide more information about insider trading in enterprises. Many financial institutions have actually reached the point where they are exhausted and rely entirely on their previous reputation guarantees to desperately seek acquisitions from external investors. Isn’t it a matter of doing stress testing at this time?

So on January 30, 2006, not long after the news that the U.S. Treasury Department was going to rescue financial institutions based on stress tests, Bear Stearns, one of the five oldest investment banks on Wall Street, had no choice but to announce that Bear Stearns' cash reserves were basically 0, and thus faced the dilemma of bankruptcy. Timothy Geithner, then chairman of the New York Federal Reserve, found that Bear Stearns bankruptcy had considerable systemic risks, so he reported to the Federal Reserve for rescue. After emergency discussions by the cabinet, he could only pinch his nose and then pull Bear Stearns.
Chapter completed!