The Hong Kong Monetary Authority used its foreign exchange reserves to fully intervene in the market, and the exchange rate of the Hong Kong dollar rose above HK$ 7.7500 again, showing its strong financial strength (as of the end of February, Hong Kong's foreign exchange reserves stood at US$ 92.8 billion, the third largest in the world, after Japan and the mainland of China).
1July 2, 9971day, Soros began to launch a new round of attacks. On the same day, the three-month forward premium of the US dollar against the Hong Kong dollar rose by 250 points, and the three-month interbank offered rate of the Hong Kong dollar rose from 5.575% to 7.06%. The next day, the Hong Kong Monetary Authority immediately planned a counterattack. The Hong Kong government raised the interest rate of the Hong Kong dollar by issuing a large number of government bonds, which in turn pushed the exchange rate of the Hong Kong dollar up sharply against the US dollar.
At the same time, the Hong Kong Monetary Authority gave verbal warnings to two banks suspected of speculating in Hong Kong dollars, which made some Hong Kong dollar speculators tremble and finally chose to quit the Hong Kong dollar speculation team, which will undoubtedly weaken Soros' speculative power.
In terms of specific operations, the Hong Kong government and international speculators will focus on large blue-chip stocks, mainly including HSBC, Hongkong Telecom, Cheung Kong Industrial and other stocks. These stocks have large capital stock and high market value, which play an important role in the fluctuation of Hang Seng Index.
When speculative selling of the Hong Kong dollar began again, the Hong Kong Monetary Authority sharply raised short-term interest rates, which led to a surge in overnight lending rates. Subsequently, Hong Kong's Hang Seng Index dropped from the peak of 16673 to 6660, a drop of 60%, while Soros shorted the Hang Seng Index in advance and suffered another big defeat.
Extended data:
Reasons for the outbreak of financial crisis:
1, caused by the economic form of Asian countries;
2. The influence of American economic interests and policies;
3. george soros's individuals and the supporting factors of their capitalist groups:
The economic form of Asian countries leads to: Singapore, Malaysia, Thailand, Japan and South Korea are all export-oriented countries, and they are highly dependent on the world market. The shake of the Asian economy will inevitably lead to a situation that will affect the whole body.
At the beginning of Hong Kong's return from 65438 to 0997, the Asian financial crisis broke out. 1998 from mid-July to August, international financial speculators attacked the Hong Kong dollar three times and took actions in the foreign exchange market, stock market and futures market at the same time. They used financial futures to buy Hong Kong dollars with three-month or six-month Hong Kong dollar futures contracts, and then quickly sold them short, resulting in a sharp rise in Hong Kong dollar interest rates and a sharp drop in the Hang Seng Index, from which they made huge profits.
In the face of avalanche selling and carpet bombing, the SAR government resisted the unprecedented selling pressure of international financial speculators, resolutely bought all of them and supported the market independently, which finally saved the stock market, effectively defended the linked exchange rate system linking the Hong Kong dollar to the US dollar and ensured the security and stability of Hong Kong's economy.
Baidu Encyclopedia-george soros
Baidu Encyclopedia-Southeast Asian Financial Crisis