It can be said that Soros gained an advantage in this battle. Although the plan to short the Hong Kong dollar failed, he still made a lot of money from several futures contracts that were shorted in the previous period. Soros's cleverness lies in doing more immediately after a short failure and vigorously marching into real estate. His current assets in Hong Kong are also more than 654.38+000 billion!
Hong Kong's financial defense war is a "war" without smoke. 1In the second half of 1997, the hedge fund owned by the famous American financier Soros launched a series of attacks in Asian countries and regions, and achieved great success, sweeping away the foreign exchange accumulated in Thailand, Malaysia, Indonesia and other countries and regions for decades, thus triggering the Asian financial crisis that had the greatest impact on the political, economic and social life of these countries after World War II. 1998 from June to July, Soros took aim at the Hong Kong dollar and began to attack the Hong Kong stock market and futures market in a planned way.
Hong Kong's financial defense is a contest of economic strength. By the end of February, Hong Kong's foreign exchange reserves stood at US$ 92.8 billion, ranking third in the world, next only to Japan and the mainland of China. 65438+1In late August, 1998, the Hong Kong SAR Government decided to fight back against international speculators, and the Hong Kong Monetary Authority invested huge sums of money in the stock and futures markets.
On August 28th, 1998, the turnover in Hong Kong reached HK$ 79 billion, a record at that time. The Hong Kong government made every effort to resist the unprecedented selling pressure of international speculators, and the Hang Seng Index closed at 7829 points. Donald Tsang immediately announced that the Hong Kong government had won the battle against international speculators and defended Hong Kong's stock market and currency. Soros suffered heavy losses in this battle.
Overview:
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.
Faced with the rampant attack of international financial speculators, the Hong Kong SAR Government decided to fight back. 1In August, 1998, the Hong Kong Monetary Authority used the Exchange Fund to invest a lot of money in the stock and futures markets, preparing to fight to the end. The 28th is the settlement date of the Hang Seng Futures Index of Hong Kong stock market in August, and a decisive battle broke out between the SAR government and speculators. 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.
On the eve of the outbreak of the Defence War, Hong Kong not only had its own foreign exchange reserves of $82 billion, but also the foreign exchange reserves of the central government of $128 billion, which together exceeded Japan's $208 billion, ranking first in the world that year.