kvmb Chapter 190 Stock Market Crash
Chapter 190 Stock Market Crash
Knowing that Uncle Jiu would not be able to become an official for the time being, Li Shaoan did not continue to discuss this issue.
Uncle Jiu has taught him all the skills he can.
But as the saying goes: An old person in the family is like a treasure.
Although he could be asked to come up after going down, Handsome An always felt something was wrong.
It was not until after dinner that he and a few women said goodbye to Uncle Jiu.
In the blink of an eye, the 73rd Spring Festival has passed.
By March, things were getting even crazier.
As he remembered from his previous life, the highest point of the stock market in 73 was 1774 points.
But this world is different.
With the support of Li Shaoan's large number of factories and companies, Hong Kong's economy is even more prosperous.
The Hang Seng Index reached its highest point of 2056 points.
The P/E of many companies is as high as 100 times or more, which cannot be supported by corporate profits and economic conditions.
A large number of junk stocks were also listed.
The most exaggerated one is the Hong Kong Antenna company.
The prospectus actually stated that the company had just been established and had not yet started operations, and that future dividends could not be guaranteed.
It is obvious that this junk company is here to take advantage of the stock market, but the citizens of Hong Kong are having a blast speculating on it.
Many careless citizens blindly apply to purchase without even reading the prospectus.
There are so many stupid turnips, I would be sorry to the boss if I didn't harvest them.
Therefore, Fang Jinxin immediately entered the market to short sell, and some smart foreign investors also began to sell in large quantities.
Against this backdrop, the stock market began to decline noticeably.
December 1973, 3.
this day.
Some investors in the market suddenly discovered that the stocks they held were fake, which quickly caused panic among all investors.
Investors began to sell their stocks quickly.
Once the stampede effect occurs, it will be an inevitable disaster.
As investors sold off their shares frantically, the stock market took a sharp dive.
It was the end of March.
In just twenty days, the stock market fell from 2056 points to 998 points.
The people of Hong Kong really have Fang Jinxin to thank for such a crazy drop in prices.
If it weren't for his short selling.
In a month, the stock market will fall by at most 20% to 30%.
Such a horrific drop was beyond everyone's expectations.
Even some foreign investors were caught off guard and were severely hit by Fang Jinxin.
Seeing this, MacLehose was extremely anxious as he had only been the governor for a short time.
And we have just cleaned up the cancer in Hong Kong.
Just when he was preparing to realize his ambitions, the stock market almost knocked him crazy.
He immediately called in the Assistant Secretary for Administration and other relevant agencies such as the Monetary Authority to negotiate.
The Hong Kong government subsequently introduced a series of emergency measures.
Such as imposing capital gains tax on stock transactions, implementing rent controls, tightening credit, etc.
However, the introduction of these measures has accelerated the stock market crash.
In more than a month.
股市由1973年3月底的998点，滑落至4月底的761点。
This situation made MacLehose even more at a loss.
So he quickly asked Li Shaoan for help.
The factories and companies controlled by Li Shaoan are not listed, so this round of stock market crash has an impact on him.
But the impact is minimal.
After all, most of the products produced by his company are not only sold in Hong Kong, but also exported all over the world.
Many people know it.
The stock market crash had minimal impact on Li Shaoan. His company's products were basically exported, so he definitely had a large amount of cash accumulated.
So Hong Kong government officials gave this suggestion to MacLehose.
If Li Shaoan is willing to save the market, he will definitely be able to stabilize the current stock market situation.
They're right.
Li Shaoan has plenty of cash.
Not to mention the hundreds of billions of dollars accumulated in the Walled City.
The cash brought in by his business companies alone exceeded 7 billion US dollars.
If this amount of money is converted into Hong Kong dollars according to the current exchange rate, it would be 39 billion Hong Kong dollars.
It is this portion of cash that Hong Kong government officials know in detail.
And Li Shaoan has another part of legal funds.
They only know a rough estimate and are not sure about the exact number.
This money is the principal and profit that Fang Jinxin used to short the Hong Kong stock market.
After all, this is not something to brag about.
So Li Shaoan asked Fang Jinxin to do it more covertly.
In the past two months, Fang Jinxin's short selling and betting have also been a great success.
It was originally as he expected.
This short selling can at most double the principal to HK$40 billion.
But the result was beyond his expectation.
Not only British capital was harvested by him, but also many foreign investors and citizens were shaved bald by his sharp sickle.
Not only Fang Jinxin, but even Li Shaoan did not expect this.
In the 1970s, Fang Jinxin made more than 50 billion Hong Kong dollars from the Hong Kong stock market.
If Li Shaoan had not made arrangements in advance and sent hundreds of elites to provide strict protection for his family.
I guess Fang Jinxin's family would have been dissolved long ago.
This money was not hidden from the Hong Kong government for long.
Not long after Fang Jinxin made a comprehensive settlement.
It's not just the Hong Kong government.
Anyone with a little status in Hong Kong knows it clearly.
After all, technology today is not as advanced as it will be in the future, where we can control stock trading through computers.
In an era where all settlements are done manually, there are actually not many secrets in the stock market.
Li Shaoan controlled the stock traders in his own company, but he did not control the bank employees.
Although those people don't know the exact number, they can guess the approximate number.
Murray MacLehose invited Lee Siu On to have afternoon tea at the Peninsula Hotel.
"Mr. Li, I know you have a lot of cash.
I wonder what it would take for you to take action to save the current stock market?"
After hearing this, Li Shaoan pondered for a moment and said:
“Sir, you know I have a lot of cash.
If I enter the market now to support it, it will not do me much good and will cause me to lose a lot.
I wonder what compensation measures the Hong Kong government will take for me?"
When MacLehose heard that he was willing to help the market, he was overjoyed and said:
"Mr. Li, please speak.
As long as the request is not excessive and the Hong Kong government can do it, I can agree to it."
Li Shaoan wanted so many things that he didn't know how to start.
So he smiled and said to MacLehose:
"Sir, can you let me go back and think about it for two days?
I will give you an answer in two days."
MacLehose nodded, knowing that the matter was of great importance.
The funds needed to rescue the market are not small, so of course he wants others to think it over carefully.
According to Li Shaoan’s business layout in Hong Kong.
Murray MacLehose had some idea of what Li Shaoan wanted.
So it’s not just Li Shaoan who needs to go back and think about it.
He, Murray MacLehose, also had to go back to the Governor's Office and have a thorough discussion with his subordinates.
Now that I have a general idea of what Li Shaoan means.
After chatting with him for a while, Murray MacLehose left.
After all, he has too many things to do now.
After MacLehose left.
Li Shaoan sat for a while and thought.
He knew that the stock market crash was far from over.
By the end of 1973, the Hang Seng Index had even fallen to more than points.
Then the Middle East War broke out, and the country was affected by the global oil crisis and economic downturn.
The stock market will continue to fall in 74 years.
The lowest point even fell below 200 points, which can be described as falling into the abyss.