His existence has brought about earth-shaking changes in the country. In less than 10 years, the domestic economy and technology have completed the process of decades in the previous life, making our country the world's most powerful economic and industrial power. nation.
But he never believed that he could change major global historical processes. The emergence of many things in the world was inevitable and would not be changed by the appearance of a certain person. At most, it would only have an impact.
Companies like his are conquering cities and territories around the world, but the extent of the changes to the original industrial structure is not particularly large, because my country's exports of trade goods are mainly new economy trade goods.
Therefore, although our country's rise has a certain competitive relationship with the original world industrial countries, it is not as fierce as imagined. This is also an important reason why our country has been able to develop with peace of mind over the years.
Even without the emergence of Zhao Yi, the development path of old industry is actually becoming increasingly sluggish, and it is only a matter of time before a crisis eventually occurs. It is precisely because of this clear understanding that he believes that the stock market crash in 1987 will be inevitable.
In fact, he has not provided data analysis related to stock market finance for Sunflower Investment Company for a long time. Since the development of domestic industry has basically spread and the ability to realize self-expansion has been achieved, he has allowed them to invest freely.
In order to avoid letting others know about the close relationship between himself and Sunflower Investment Company, he has basically cut off face-to-face contact with Peter. There is absolutely no connection between the two in the eyes of outsiders.
Fortunately, since the last financial crisis, the world economy has gradually emerged from the gloom, and my country's new economic development situation is very good, which has a great impact on the development and promotion of global trade.
Regardless of the fact that his companies are grabbing markets around the world and making a lot of foreign money, in fact, global trade in general needs to be balanced. The more we earn, the more we will naturally spend, so as to achieve a dynamic balance.
During this process, the scale of global trade has hit new highs repeatedly, and industries engaged in foreign trade have developed tremendously. Except for our country, the global economy is generally better than in previous generations.
Our country has basically achieved self-sufficiency in the field of industrial products and is less dependent on the outside world. Not only that, in the fields of electronics, semiconductors, communications, software and the Internet, our country is the world's leading exporter of products and services.
Therefore, my country's imported goods are mainly agricultural products, petroleum, energy and bulk mineral commodities. Countries with relatively rich resources in this area will benefit from my country's large demand and achieve wealth growth.
These countries that are rich in low-grade commodities often do not have strong industrial strength. They must purchase a large number of industrial products from developed countries in Europe and the United States to meet their domestic needs, thereby achieving an economic cycle.
However, the profits of general industrial products are actually not high. In addition, the labor costs in developed countries are high. However, many of their capitals have moved their production bases away, causing a serious trend of the internal economy turning from real to virtual.
In addition, his companies make a large amount of profits around the world every year. In addition to part of them being returned to China to accelerate domestic economic construction, some of them are directly invested abroad.
In the investment process, part of it is to add new industries to compete with the original market, and the other part is to directly acquire a large number of promising companies.
This leads to an increasing amount of assets in his hands, and the person who sells the company has an increasing amount of funds in his hands, and the place where funds appreciate the fastest is naturally the stock market, resulting in a large amount of funds entering the stock market.
Although the global economy does not seem to have changed much, and the economy and trade are still improving to varying degrees, this is the overall situation, and when it comes to a specific country, the situation is actually not optimistic.
The economic growth of Eagle Sauce was only 2.5% and 2.3% in 1985 and 1986. At the same time, consumption increased at an annual rate of 4.5%, and residential fixed investment increased by 12% annually. Economic growth could not keep up with the rise in consumption and prices. At the same time, it cannot keep up with the growth of real estate investment.
In addition, the federal government's spending has been rising, with an annual growth rate of 7%, while the annual growth rate of state and local government spending has also been as high as 4%.
In other words, Yingjiang's current economic growth is mainly driven by debt and government spending. On the surface, the prosperity of the stock market is actually due to the injection of false prosperity.
Such economic data has put tremendous depreciation pressure on the U.S. dollar, and global investors are actually worried that the depreciation of the U.S. dollar will lead to inflation.
The weakness in the domestic market led the government to decide to raise interest rates to support the stability of the dollar price. As soon as the interest rate increase was announced, stock market prices corrected.
In addition, the House Ways and Means Committee proposed to the government a bill on taxing corporate mergers and acquisitions. This bill re-calculates the tax accounting for corporate restructuring and mergers and acquisitions in the capital market.
In other words, this bill means that many tax avoidances in corporate mergers, acquisitions and reorganizations will also be completely eliminated, and the bill imposes stricter legal provisions on mergers and reorganizations in the capital market.
This is a major bad news for the Eagle Sauce market where mergers and acquisitions are common. Sure enough, just one day later, the stock prices of many Eagle Sauce companies began to fall.
Most of the financial resources for corporate mergers and acquisitions come from the issuance of corporate bonds, and the rise in interest rates will obviously cause the price of corporate bonds to fall, affecting the company's financial balance.
These two unfavorable factors caused the stock market to show an accelerated downward trend. What's even worse is that the August trade deficit figure announced by the Ministry of Commerce was significantly higher than expected.
This caused the U.S. dollar exchange rate to fall, and the market's expectations for the Federal Reserve to raise interest rates increased. The rise in interest rates further put downward pressure on stock prices. The Dow Jones index fell 3.8% that day.
However, global stock markets did not fall sharply as a result, but only slightly corrected. The London stock market fell 1.2%, the Tokyo stock market fell 0.8%, and the Hong Kong stock market fell 0.4%.
However, in the next few days, the U.S. stock market showed a downward trend. Although the daily decline was not particularly high, over the past few days, the stock market's decline had been considerable, falling by nearly 10% in just three days.
At this time, Hong Kong's stock market has not been greatly affected by the decline in U.S. stocks. Investors are not worried about a sharp decline in the stock market. They just believe that this is a short-term correction and will not affect the trend of the Hong Kong stock market.
After all, Hong Kong society is stable and prosperous at this time, and the economy backed by the mainland is also very stable. People have every reason to remain optimistic about the securities market.
Even in October, Hong Kong stocks performed very well. On October 1, China’s National Day, the Hang Seng Index rose to 3,968 points, and the next day it hit a trading volume of HK$5.41 billion.
Various performances have given investors huge confidence, and everyone is gearing up, waiting for the Hang Seng Index to climb to a new high of 4,000 points.
However, after the weekend, on Monday, the day of stock trading, the stock market performance did not continue to rise as investors expected. On the contrary, there was a large amount of selling, and the powerful selling wave became unstoppable.
All blue-chip stocks opened low, and other second- and third-tier stocks were also sold at low prices. There seemed to be only sellers in the market, but no buyers. Within just a few dozen minutes, the Hang Seng Index fell by 120 points, and by 12 noon, it fell again. Over a hundred points.
Just when the Hong Kong stock market fell sharply, the Dow Jones Index also fell by more than 500 points, a drop of 30%, setting a record for the stock market decline in decades, and even more violent than the stock market decline during the 1929 economic crisis.
Bad news will naturally be transmitted, especially to the financial stock market. The negative news coming from Yingjiang naturally makes the Hong Kong Stock Exchange worried and trying to find ways to reduce the continued decline of the Hong Kong stock market.
So after an economic meeting, all 12 members of the Hong Kong Stock Exchange were present. After intense discussions, the final meeting decided to suspend the market for four days in accordance with the powers conferred by the provisions of the "Rules of the Hong Kong Stock Exchange" in order to "clear the backlog of transactions." ".
In fact, suspending the market cannot solve this problem. As soon as the market opened four days after the market was closed, the selling orders accumulated by investment companies and funds for many days broke out on this day. In just 15 minutes after the market opened, the Hang Seng Index fell by more than 650 points.
This was something that many people had not thought of before. Seeing such a situation, retail investors in the stock market became even more frightened, so they sold one after another. By noon, the Hang Seng Index had fallen by 845 points.
This is not the end. In the afternoon, the selling trend started again. It fell more than 2,240 points throughout the day, and the stock price fell as much as 33%. All previous countermeasures seemed to have no effect.
Faced with such a situation, Hong Kong seemed to be isolated and unable to support itself alone. At this time, the figure of Chinese capital entered the field of vision of Hong Kong investors.
In fact, the mainland has indeed begun to prepare for this and asked the Bank of China to provide an additional HK$1 billion in rescue funds on top of the 330 million rescue fund.
When Chinese capital stepped in to "rescue the market" at an emergency, although there were considerations behind maintaining Hong Kong's economic and financial stability, it was also a self-rescue because mainland capital accounted for 10% of the total capital in the Hong Kong market, with a scale of more than HK$8 billion.
However, China's bailout did not allow the Hong Kong stock market to stabilize at the end of October, but continued to fall. During this period, overseas funds sold stocks to cash out, and institutions continued to hold on to stocks. Small and medium-sized investors could only complain and cry for help.
At this time, everyone's eyes were turned to the largest capital party in Hong Kong's economy, which was the Hong Kong Umbrella Holdings Company. The Hong Kong government and the chairman of the Stock Exchange personally went to the villa at No. 31 Barker Road.
To be honest, the collapse of the Hong Kong stock market has almost no impact on Hong Kong umbrella holding companies. After all, their main businesses are not listed, and the rise and fall of the stock market has nothing to do with them.
This is also the case when the Hong Kong stock market plummeted. Hong Kong Umbrella Holdings did not take any action and continued to do what it should do, as if it was not affected by the outside world.
But in fact, Lin Hexia called Zhao Yi immediately and asked how the Hong Kong Umbrella Holdings Company should do it. After all, for such a big thing, there must always be a countermeasure.
To be honest, the skyrocketing rise and fall of the stock market is a natural law of the economy and the result of capital gambling. It will not stop because of his bailout, so his mentality towards this is very dull. This is the so-called willingness to gamble and admit defeat.
However, he also knows that as the largest capital company in Hong Kong, it is very difficult to be alone. Even if he does not suffer much loss, there are still various forces that will prompt them to make some decisions.
In fact, when the effect of the Chinese-funded market rescue was not obvious, he had already received calls from some people, hoping that he could rescue the market. After all, in the face of such a huge stock market disaster, only he could turn the tide.
Although he agreed, he hoped that Hong Kong would come forward to ask for help instead of pressure from the mainland. The two gave people completely different feelings.
In fact, it took a while and seeing that Chinese investors had no further rescue plan, the Hong Kong government and the chairman of the Stock Exchange had no choice but to come to the door to ask for help in person. Otherwise, if this continues, the situation may get even worse.
The two parties visited No. 31 Barker Road all morning. In the afternoon, Hong Kong Umbrella Holdings announced that it would spend huge sums of money to participate in the Hong Kong stock market rescue plan, allowing small and medium-sized investors to hold shares and wait and see.
Although Hong Kong Umbrella Holdings does have a huge amount of capital, it is not clear to the outside world what kind of cash flow they have. Therefore, although outside investors are happy, there is no obvious change in the stock market.
Without waiting for the reaction of Hong Kong stockholders, Hong Kong Umbrella Holdings spent HK$1 billion on a tentative bailout in the afternoon. The result was ineffective, and instead made foreign institutional investors sell harder.
Seeing this situation, Hong Kong Umbrella Holdings Co., Ltd. understood that this was the intention of institutional investors to give Hong Kong Umbrella Holdings Co., Ltd. a look and tell it not to get involved.
Any place where there is a stock market crash is indispensable for the presence of various capital predators. The occurrence of the stock market crash may not necessarily be caused by the capital predators, but when it comes to bloodthirsty, they are definitely leading the way.
Seeing that the tentative effect is not obvious, but instead intensifies the pressure of selling, in order to regain confidence in the Hong Kong stock market as soon as possible, Hong Kong Umbrella Holdings plans to increase its efforts to stabilize the stock market in the short term and give confidence to small and medium-sized investors.
To be honest, although Hong Kong's stock market is considered good and is even called the financial center of Asia, it is not actually that big compared to the size of the economy of Hong Kong Umbrella Holdings.
Before the collapse of the Hong Kong stock market, the total scale was only over HK$80 billion, less than HK$100 billion, and the operating income of a subsidiary of Hong Kong Umbrella Holdings was much higher than this.
It is precisely because of the huge disparity in power between the two that Hong Kong Umbrella Holdings thought that when it announced the news, the outside world would respond positively and the stock market could be stabilized without spending much money.
In fact, small and medium-sized investors in Hong Kong quite recognize the strength of Hong Kong Umbrella Holdings. Although they don't know the specific strength, the strength on the table is enough to give them peace of mind.
Therefore, after hearing that Hong Kong Umbrella Holdings participated in the rescue, small and medium-sized investors basically followed the wishes of Hong Kong Umbrella Holdings and no longer followed the trend and sold as before. There were even some investors who were more confident and chose to buy stocks.
This situation naturally had a great impact on the capital giants that attacked the Hong Kong stock market. In order to break the confidence of small and medium investors, they naturally increased the intensity of selling, resulting in a slow decline in stock prices.
Seeing this situation, Hong Kong Umbrella Holdings Company knew that it had no real skills and really regarded them as clay sculptures. Therefore, after testing and seeing that the stock market was not as expected, it naturally increased the amount of funds.
Following the original bailout fund of HK$1 billion, the second batch of bailout funds from Hong Kong Umbrella Holdings was released urgently, reaching a scale of HK$10 billion. This scale of funds can be said to be very large, accounting for one-fifth of the total stock market. .
It's just that the second batch of bailout funds was not immediately announced to the outside world. Instead, it was chosen to move closely with the first batch of bailout funds. Since the rescue efforts have been stepped up, it is natural to want to buy the stock market at the bottom.
According to the idea of Hong Kong Umbrella Holdings, if it can be stabilized with 1 billion bailout funds, then there will be no next step until the end, and the rescue effect will be achieved.
If it does not stabilize and needs to intensify efforts to rescue the market, then taking advantage of the massive selling to hunt for the bottom of the Hong Kong stock market will not only make a fortune in the future, but also continue to increase its influence in Hong Kong.
After all, news has been released to the outside world before, asking investors not to continue selling. If they are disobedient, it means that they have no chance of making money, and those who are obedient will naturally obtain corresponding wealth.
As the second batch of bailout funds entered the stock market, the stock market stabilized in a short period of time. Although international investment institutions still vigorously sold their stocks, they were all taken over by Hong Kong Umbrella Holdings.
No matter how hard the international investment institutions use to sell, the stock price of the Hong Kong stock market is rock solid at this point, without any loosening, as if there is no trading in the stock market.
At this stage, Hong Kong Umbrella Holdings is actually on the defensive and only passively accepts the stocks sold by sellers. Anyway, at this point, I will take over as much as you sell.
The stability of the Hong Kong stock market is a bit strange, which naturally attracts the attention of other investors. Everyone knows that this is a fierce battle between bulls and bears. Although it is calm on the surface, it is actually turbulent at the bottom.
However, judging from the defensive situation of Hong Kong Umbrella Holdings, being able to keep the stock market from falling, no matter how fierce the sellers are, has remained unchanged, which has shown the strength of Hong Kong Umbrella Holdings.
After the second batch of funds from Hong Kong Umbrella Holdings Co., Ltd. spent HK$5 billion, the sellers actually showed signs of fatigue, and the selling intensity was not as fierce as before.
When the funds were consumed to HK$6 billion, the selling orders were actually obviously weak, and the trading volume dropped significantly. By the time it reached HK$7 billion, the big selling orders were basically gone, and only sporadic selling transactions appeared.
At this time, the situation was actually very clear. Both small and medium-sized investors and foreign investment institutions knew that the various forces led by Hong Kong Umbrella Holding Company had achieved a decisive victory.
Maybe there are still stocks in the hands of international investment institutions that have not been sold, but the number left may be very limited. Whether or not to sell them actually has no impact on the overall situation, so they might as well hold them in their hands.
Sure enough, after the selling trend passed, international investment institutions turned back to go long and began to place a large number of buy orders on the stock market, and the stock price naturally showed a significant increase.
It's just that at this time, investors who have stocks in their hands will not start selling their stocks just because there is a slight increase, because they feel particularly at ease holding them in their hands, because there is a great god in Hong Kong who is enough to maintain the stability of the Hong Kong stock market. .
So now you can't actually buy many stocks by going long backhand. Instead, it has contributed to the rise of the stock price. It rose 100 points from the stability baseline that day, becoming the first stock market to rise in this round of global stock market crash.
In this round of bailout, Hong Kong Umbrella Holdings spent a total of 8 billion yuan and held 20% of the market value of Hong Kong stocks, making it the largest single investment institution worthy of the name.
There are actually very few circulating stocks on the market now. Many people have fully understood the current situation of the Hong Kong stock market. As long as the Hong Kong umbrella holding company is there, it is basically impossible for other institutions to make waves in it.
It is precisely because of the understanding of this situation that many people want to ride on this stock market trend and invest in the Hong Kong stock market. Especially when there is a global stock market crash, foreign investment institutions must find more secure shelters.
It's just that at this time, it's not that easy to get in. Many investment institutions had to raise prices to acquire Hong Kong stocks, but not many people sold, causing the Hong Kong stock market to rise faster.
In fact, the reason why Hong Kong's stock market plummeted this time was not because Hong Kong's fundamentals were poor, but because it was affected by the plummeting global stock market and the manipulation of international capital, which completely destroyed the investment confidence of major institutions.
In the selling that occurred this time, international hot money contributed a lot, but it is easy to sell but difficult to buy back. The risk of short selling is much higher than that of long selling.
After the Hong Kong stock market stabilizes, there will be a lot of international hot money buying among the subsequent buying orders. Otherwise, if enough stocks cannot be purchased and returned, it will be a breach of contract and the losses will be very large.
It's just that most of the shares are now in the hands of Chinese capital and Hong Kong umbrella holding companies. The stocks in the hands of small and medium-sized investors sold a lot in the first round of follow-up selling, and they no longer have many stocks in their hands.
Everyone can understand the current situation. They cannot sell the remaining stocks in their hands casually. They have to wait until these stocks appreciate in value to make up for some of their previous losses.
In this way, the Hong Kong stock market fell into a strange calm. The trading volume was in sharp contrast with the global stock market, which made global investors feel a sense of awe towards the Hong Kong stock market.
Due to the small size of the Hong Kong stock market, they have become a paradise for many international hot money, because with the size of hot money, it is very easy to control the rise and fall of stock prices.
This is why the global stock market crash broke out, and the Hong Kong stock market, which has very good economic fundamentals, became the world's stock market with the largest decline, accounting for nearly 50%, which is simply unprecedented.
Now Hong Kong Umbrella Holdings is teaching people how to behave as soon as it takes action, so that other investors no longer regard the Hong Kong stock market as a playground for capital, not a place where they can come and leave as they please.
This is a change that has never happened before. Regardless of whether Hong Kong Umbrella Holdings participates in the Hong Kong stock market or not, just standing in the city of Hong Kong is already daunting.
What's more, with this move, the shares in their hands have reached 20% of the total size, which has a decisive influence on the direction of the Hong Kong stock market, and makes people dare not casually stroke the tiger's beard in the Hong Kong stock market.
The move of Hong Kong Umbrella Holdings not only taught international capital a hard lesson, but also won the recognition of Hong Kong citizens and small and medium-sized investors. The name "Umbrella" is increasingly recognized by Hong Kong citizens. (End of chapter)