【The first update today!】

After Liu Yihua saw Huang Ya away, he said goodbye to Li Jingqi and Guo Fengping and came to Zhenghua Hotel.

Li Jingqi thought that Liu Yihua had gone to Hanjiang City, and she was really reluctant to leave. Liu Yihua could only tell her to find her in a few days.

Liu Yihua just took a shower at Zhenghua Hotel when he received a call from the Li family in Hong Kong Island.

"Hello is Mr. Liu? I am the housekeeper of the Lee family in Hong Kong... I'm sorry. I agreed to meet in the morning, but the turmoil caused by the stock market in Hong Kong in the morning, so I will meet Mr. Liu in the afternoon..."

Liu Yihua was stunned: "What? Stock market fluctuations? Could it be a financial crisis?"

The housekeeper said: "Ah? Financial crisis? I can't say that. The stock market in Southeast Asia has been very volatile these days..."

Liu Yihua said cautiously: "It seems that there is something wrong with Hong Kong Island this time. It should be Soros who took action!"

"Soros? Yes! It seems yes. But does Soros dare to attack Hong Kong Island?" The butler seemed to be well-informed.

Liu Yihua sneered: "What's there to dare to do this? I saw Soros coming to the fire to rob! After all, Hong Kong Island will return to the motherland soon! I have some information here, so we'll talk about it in detail in the afternoon."

"Okay Mr. Liu. By the way, Mr. Liu, has our eldest lady arrived in Pengcheng? Can I see her in the afternoon?" The housekeeper was still a little confused. He didn't know what Liu Yihua's identity was. Why did Li Shishi get along with Liu Yihua? Why did she become Liu Yihua's sister?

Liu Yihua smiled and said, "Shishi will be here soon. Let's wait for you at the Zhenghua Hotel in Pengcheng."

The housekeeper said excitedly: "Okay, thank you Mr. Liu. I will arrive at about 4 pm..."

After Liu Yihua passed the phone, he contacted Xiaoqiu: "Xiaoqiu, where are you and Shishi? It's almost here? Well, I'll pick you up now."

Liu Yihua left the hotel, drove a bulletproof Mercedes-Benz, and went to the train station to pick up Xiaoqiu and Li Shishi.

On the way, Liu Yihua called Zhou Shimei to ask about the financial crisis in Southeast Asia. This financial crisis in history has not come so soon, but Liu Yihua feels that it must be that history has changed, which has caused this financial crisis to break out in advance.

Zhou Shimei told Liu Yihua in detail about the recent international financial market.

Based on a comprehensive analysis, Liu Yihua concluded that this Southeast Asian financial crisis was ahead of schedule! So Liu Yihua immediately asked Zhou Shimei to prepare.

Liu Yihua arrived at the train station and reviewed the details of the previous Hong Kong Island financial crisis during the waiting period.

In previous history, a very powerful financial crisis broke out in Hong Kong Island in 1997!

The festive atmosphere of celebrating the return of Hong Kong Island has not yet dissipated, and the Asian financial crisis has been overwhelmed by dark clouds. International financial tycoons led by US hedge funds attacked Hong Kong Island, and the Hang Seng Index plummeted from more than 16,000 points to 6,000 points, and the stock market is on the verge of collapse! The four pillar industries of finance, real estate, trade and tourism have all been severely hit. The overall economy of Hong Kong Island even showed negative growth that had not been seen in years!

It is obvious that this financial crisis in Hong Kong Island was affected by the Southeast Asian financial crisis!

You should know that the financial crisis in Southeast Asia has already begun!

It just began in 1997. Soros began to launch attacks on the Southeast Asian financial market that he had coveted for a long time. Thailand was the first to be hit. In May, international currency speculators began to sell large-scale Thai baht, and the Thai baht fell in early July. The financial storm began to sweep Asia.

Soon, a financial storm landed on Hong Kong Island.

October 20th marks the 10th anniversary of the tragedy of the US Wall Street stock market, "Black Monday".

On this day, the Hong Kong stock market began to fall.

On October 21, on October 22, the Hang Seng Index in Hong Kong Island fell sharply for two consecutive days, with a cumulative decline of nearly 1,200 points, about 9%, which was described by local market participants as a minor stock market crash; on the 23rd, the Hang Seng Index in Hong Kong Island fell to a point with a drop of 1,871 points. The Hang Seng Index closed at the market and retreated to a low point, down 10.4%. Some people even believe that the decline on this day can be compared with Black Monday in 1987.

The market value of listed companies in Hong Kong Island lost HK$433.5 billion in one day on the 23rd, which decreased by HK$1542 billion compared with the peak market value of HK$4335.4 billion in August, a decrease of 35%. At the same time, the top ten richest people in Hong Kong Island are estimated to have lost more than HK$210 billion in total. The Hang Seng Index continued to plummet, with its sharp decline and huge losses shocking the world.

At this time, stock markets around the world formed a vicious cycle of general plummeting. On the 27th, the New York Dow Jones Index plummeted by nearly 554.26 points, the worst day in history, which led to an automatic suspension of one hour in the middle. The Tokyo stock market fell by more than 800 points after opening.

On the 28th, the Hang Seng Index in Hong Kong Island plummeted by more than 1,400 points, a drop of 13.7%, reaching the lowest point throughout the day, closing at a point, and the decline points hit the highest in history.

Under such circumstances, the newly established Special Administrative Region of Hong Kong Island took action! A defense action began.

On the one hand, the Special Administrative Region Government sold the US dollar in the market through foreign exchange funds; on the other hand, it announced a rate hike, and the best interest rate increased from 8.75% to 9.5%. These measures achieved obvious results in the foreign exchange market, and the Hong Kong dollar exchange rate immediately rebounded to a high of 7.5:1, and maintained a relatively stable situation for a period of time.

However, interest rate hikes and reduced supply of Hong Kong dollars have directly led to a decline in the stock market and the real estate market.

On October 8, 1997, the Hang Seng Index was 14,838 points, and on October 28, 1997, it fell to 9,059 points, which took 13 days and fell by 5,578 points, with an average drop of more than 444 points per day.

By mid-January 1998, the Hang Seng Index had fallen below 8,000 points. However, international hot money still did not give up, and a new large-scale impact began in August. Quantum Fund and Tiger Fund began to speculate in Hong Kong dollars. First, they purchased a large amount of forward US dollars from banks and sold forward Hong Kong dollars, pushing up interbank lending interest in exchange for US dollars to lend to earn interest. On the other hand, they sold Hang Seng Index futures and stock spots to lower stock prices.

The former will cause interest rates to rise sharply, causing the stock market to fall, thereby making profits in the futures market; at the same time, once the Hong Kong dollar falls, they can also make profits in the foreign exchange market at the same time. By mid-August, the Hang Seng Index fell below 7,000 points and fell to a minimum of 6,660 points.

From the time when the SAR government used foreign exchange funds to directly enter the market to protect the market in mid-August, the SAR government stopped entering the market on August 28, a total of HK$100 million was used. The Hong Kong Island government's decisive direct entry into the market and the strengthening of relevant regulatory measures have stabilized the confidence of the securities market, prompted the stock index to stop falling and rebound soon, and forced international speculators to make up for short stocks and futures indexes at higher prices, killing all the feathers.

However, in this financial storm that swept Asia, the Hong Kong Island Hang Seng Index began to fall sharply from 16,673 points on August 7, 1997, and fell below 10,000 points on October 28, 1997, a drop of 45.6%. The stock market market value evaporated 210,000 billion in two months, shrinking by 1/3. In 1998, it continued to fall, and reached a low of 6,660 on August 13 of the same year.

After the stock market crash, the Hong Kong real estate market fell 70% in just one year, and more than 100,000 owners became negative assets. For a long time, the real estate market failed to recover. The overall housing price was only below 60% of that in 1997, and more than 6,000 owners were still not out of the negative assets.

In addition, the exchange rate of the Hong Kong dollar was significantly higher than that of the currencies that had depreciated in Asia. Hong Kong Island product exports and Hong Kong Island tourism and retail industries were also affected. This inevitably led to deflation, decline in demand, increased unemployment, market depression, and the entire economy was in a serious recession.

Hong Kong Island has long implemented liberal economic policies. The "active non-interventionism" of the Hong Kong and British governments has enabled international hot money to have time to take advantage of the Southeast Asian financial crisis in 1997, and frantically speculate and short the Hong Kong dollar. The Hong Kong Island's linkage exchange rate system also created conditions for the entry of international hot money such as quantum funds. Purchase the US dollar and short the Hong Kong dollar, artificially push up interest rates to earn interest spreads, and perform the opposite operations in the futures market to ensure the profits of the foreign exchange market when the Hong Kong dollar falls. Therefore, it is this laissez-faire liberal economic policy that gives international hot money an opportunity to take advantage of it, leading to the stock market decline caused by shorting the Hong Kong dollar.

Thinking of this, Liu Yi made up his mind to stop this Hong Kong Island financial crisis!
Chapter completed!