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Did Soros make money from Hong Kong’s financial defense campaign? How did he make it?

There is no public information because Soros’ Quantum Fund is a hedge fund, which is a private equity fund and will not disclose reports to the outside world. But judging from some analysis results, it has made money, and it has been made very cleverly.

First of all, you need to understand that the Hong Kong dollar and the US dollar are linked exchange rates, that is, the exchange rate between the Hong Kong dollar and the US dollar is constant. Soros threatened that to short the Hong Kong dollar, he must first borrow the Hong Kong dollar and then sell it short. In order to prevent short selling and maintain exchange rate stability, the Central Bank of Hong Kong adopted what they considered to be a clever plan to pull money from the bottom of the pot. They significantly raised the overnight lending rate of Hong Kong dollars in an attempt to increase the cost of borrowing Hong Kong dollars for Soros and make him retreat. At the same time, there is news that the mainland has also injected capital into Hong Kong and purchased a large amount of Hong Kong dollars. The result of this is that the Hong Kong dollars flowing in the market instantly decreased and overnight interest rates increased sharply. The extreme contraction of capital liquidity caused Hong Kong stocks to begin to plummet. This played into Soros's plan, because he had already short-sold Hang Seng Index futures in a large amount in advance.

The final result is that although Soros did not make a penny in the foreign exchange market and even suffered a lot of losses, he made a lot of money in the stock index futures. His strategy was exquisite and his courage was great. , amazing!