Rebirth: The No.1 Dandy - Chapter 540

Xiao Sa’s plan was very successful. At this time, no one in the world doubted the purpose of playing world company to buy Varyag.

After that, things basically don’t need Xiao sprinkle.

He took Fu Rao, Tang Jiaman, Enron, Shi Tongxi, Liao Jiawang, Li Gelian and Zhao Jianguo south to Hong Kong Island, and then entered Thailand. He will do another big thing!

The reason why Tang Jiaman and Enron went to Hong Kong Island together was to let them and Yao Tiao co-ordinate the allocation of funds together.

Xiao SA and his party still lived in the Victoria Harbor villa. After a short rest, Xiao SA called Yao Tiao and asked, “what’s the situation with the funds in place?”

Yao Tiao: “according to your request, all the funds have been in place, and there is still a lot more than that: 500 million more from Danlu wine industry, 100 million more from rich Taiji, 500 million more from Baifa company and 1 billion more from real estate group. At present, the total funds in place are 16.3 billion yuan, plus 1 billion US dollars. The 1 billion US bonds of our bank are not included.”

Xiao SA nodded with satisfaction.

In other words, it’s more than $4 billion. There’s plenty of ammunition!

Five years ago, when he quietly participated in the sterling financial war, he collected a total of $2 billion. Today, he has collected more than double the funds in the past.

Moreover, he still has a large amount of money in his hand, that is, the five stocks he bought with more than $600 million have already appreciated a lot, and now the market value is no less than $1 billion.

The next day, Yao Tiao took the seat of Huitong bank to dispatch funds, while Xiao SA, accompanied by Yuan Qilin, came to the Hong Kong stock exchange again.

Yuan Qilin had already rented four yellow Mandarin jackets in accordance with Xiao Sa’s instructions. As soon as Xiao SA arrived, they immediately carried the trip, ignored it and followed Xiao SA.

Xiao SA, Fu Rao, Tang Jiaman and Enron entered Thailand in the name of Tourism under the escort of the four King Kong, but then quietly came to the option financial center in Bangkok,

……

In the 1990s, the western economy declined, while Southeast Asian countries realized the “Asian economic miracle” by virtue of the advantages of raw material export, including Thailand, Malaysia, Indonesia and Singapore.

For example, Thailand, with an average annual GDP growth of 8%, had a per capita income of more than 2500 US dollars in 1995 and was listed as a middle-income country by the world bank.

Southeast Asian countries are very optimistic about their respective economies. In order to accelerate the pace of economic growth, they have relaxed financial regulation and implemented financial liberalization.

In the early 1990s, the Thai government determined the circulation policy of free trading of the Thai baht in the global foreign exchange market, and adopted a fixed exchange rate system to link the exchange rate of the Thai baht to the US dollar. 1 US dollar is equal to 26 Thai baht, and the exchange rate fluctuation is limited to the range of 0.15% ～ 0.16%.

In March 1993, the Thai government approved the establishment of an option financial center in Bangkok, relaxed the restrictions on the establishment of branches by foreign banks in Thailand, and allowed international capital to trade in the option financial center in Bangkok.

……

Xiao SA and his party entered the option financial center in Bangkok. Under the command of Xiao SA, four yellow jackets quickly began a series of financial transactions:

1、 Xiao SA mortgaged the 1 billion US Treasury bonds acquired by Huitong bank to the Bank of Thailand and lent 26 billion baht.

2、 Xiao Sa also mortgaged the shares of five American stocks with a market value of more than US $1 billion to the Bank of Thailand and lent another 28.6 billion baht.

3、 Xiao SA sold the lent Thai baht in the foreign exchange spot market and bought us $2.1 billion.

4、 At the same time, Xiao SA used the US $2 billion collected by his company to buy short positions in baht and short foreign exchange futures in baht. The sold futures in baht form a hedge against the purchased US dollars.

Xiao SA, at this time, another person is doing the same thing with him, that is Soros, a financial tycoon.

However, Xiao Sa’s action is one less than Soros’s, that is, after Xiao SA borrowed the Thai baht, he bought all the US dollars and sold the Thai baht futures, instead of buying half the US dollars and selling half wildly, singing empty the Thai baht in the market, causing market panic

Since someone does this, Xiao SA can eat meat. There is no need to be a villain and become enemies with Southeast Asian countries.

I was right to sell short the Thai baht futures, but I didn’t sell the Thai baht maliciously. I was just a pure market economy behavior.

As for the financial crisis in Southeast Asia, it was all caused by the malicious selling of Thai baht by financial tycoon Soros. It’s none of my business!

After finishing this, Xiao SA and his party returned to Hong Kong Island, waiting for work and waiting for news.

……

In 1996, Thailand’s current account deficit accounted for 8.1% of GDP, higher than 7.2% before Mexico’s financial crisis in 1994.

At the end of 1996, nearly 30% of Thailand’s foreign loans and 80% of its foreign direct investment were invested in the real estate and securities markets, with 850000 vacant houses, a vacancy rate of 20%, and bad bank debts of US $15.5 billion.

And most of the bad loans are real estate investment, and the housing bubble is about to burst.

The real estate bubble burst will inevitably bring about the risk of financial crisis. Because a large number of foreign loans and foreign direct investment are invested in the real estate market.

At that time, the Thailand government did not realize that the fixed exchange rate system doubtless overestimated the value of the Thai baht and that the price of the baht had great bubbles.

It was nothing. The key is that the Thai government has opened up the policy of free access to capital, which gives many financial tycoons led by financial tycoon Soros room for speculation.

On the same day that Xiao SA and his party completed their strategic layout and withdrew to Hong Kong Island, Soros entered the option financial center in Bangkok, Thailand, and made a series of the same actions as Xiao SA to short the Thai baht.

Only then did the Thai government realize that the situation was bad!

The Bank of Thailand quickly raised the lending rate, which rose to 1000% by the end of May 1997.

However, it was too late. Soon, the Central Bank of Thailand announced that there were low asset quality and insufficient working capital in 9 domestic finance companies and 1 Zhuang Fang loan company.

……