The Son of Finance of the Great Age - Chapter 1025

  Chapter 1025 A blow to the head (7)

  International short sellers shorted the RMB in the offshore market for five days in a row, which is to pinpoint this weakness of Zhongshi, and there is a suspicion of obvious interest transfer in this position.

  In fact, as they expected, as long as Zhong Shi sits in this position, he can’t act rashly, after all, people’s words are formidable.

  After confirming this point, they can short so recklessly without considering risk control at all.

   But what is also weird is that rumors have been spreading in the market for more than a week, but the Huaxia government has not adjusted personnel at all, and Zhong Shi still presides over the stability of RMB and foreign exchange.

  Although we don’t know exactly what’s going on, this situation undoubtedly favors the international short sellers who are shorting the renminbi, so they are desperately shorting the renminbi, even though the overnight lending rate is a bit scary.

   However, it will all come to an end one day.

  On September 10, the FOB price of RMB opened at 6.4646, which was the same as the closing price of the previous trading day. At the beginning of the opening, international speculators began to smash the market, hoping to break into the 6.5 line today.

   At this time, there are still 354 basis points away from 6.5. It is unrealistic to drop so much in one day, but it is not a problem to drop 200 basis points. In this way, the pressure on the bulls in the market in the next trading day will increase exponentially.

  During this period, the bulls in the market were hit by shorts several times to around 6.5. If it weren’t for the intervention of American capital, I am afraid that this line would have been broken long ago. The bulls’ bet was on the Huaxia Central Bank’s move, but the other party’s delay in making a move, coupled with the impact of that news, also made some bulls lose confidence.

  Short sellers also took aim at the mentality of bulls, and impatiently sold a lot of money in the market as soon as the market opened, further suppressing the confidence of the other party.

   “Did you do it?”

  Seeing the rapid drop in the exchange rate on the screen, Zhong Shi frowned, and said to himself, “Sure enough, I can’t hold back any longer. Are you going to make a move today?”

“what are you saying?”

  Fang Zhouyuan looked at the numbers on the board, shook his head and sighed slightly, and suddenly heard Zhong Shi’s whisper, and couldn’t help but said, “Mr. Zhong, if you don’t make a move, the target price will soon be close to 6.5.”

   “There will be a rise today.”

   After looking at the other party with a smile, Zhong Shi said for no reason, “After today, I think the international short sellers should have a deep understanding of the RMB.”

   During the speech, the RMB exchange rate fell by another 100 basis points, directly falling below the 6.47 mark.

  As the 6.47 mark was breached, the traders who were still watching the market carefully before let out a burst of exclamation, and many eyes looked at Fang Zhouyuan.

  There has been no movement in Zhongshi these days, but the renminbi is still within a safe range, so traders are not in a hurry. But now as it approaches 6.5 step by step, many traders can no longer sit still. Looking far away at Fang Zhou, I hope he can talk to Zhong Shi about when to start intervening in the exchange rate market.

  Facing the eyes of the traders, Fang Zhouyuan shook his head slightly, indicating that he was helpless.

  Many traders sighed softly.

   So far, they still don’t know what kind of medicine is sold in the bell stone gourd.

   “Okay, let’s get started!”

   While everyone was not paying attention, Zhong Shi sneaked outside, made a phone call, and issued an order to the people who had been waiting on the other end of the phone, “Today is the only day to completely defeat the bears!”

  Hedge fund giants such as Tianyu Fund, Bridgewater Fund, Paulson Fund, and Castle Fund have long been gearing up, deploying heavy forces on spot, futures, and forward contracts, just waiting for Zhongshi’s order.

   “Mr. Zhong, are we still doing nothing today?”

  By the time Zhong Shi returned to the trading floor, the RMB exchange rate had broken through 6.48 and reached 6.4820, heading straight for a 200 basis point drop.

  According to the current downward trend, it is not a problem to fall below 6.4899, and it is even possible to fall to around 6.5.

After seeing this posture, Fang Zhouyuan couldn’t sit still anymore, and took the initiative to ask Zhong Shi, “In just a few minutes, the decline of 200 basis points is approaching. The short sellers are prepared. If If we still stand still, isn’t that a bit unreasonable?”

   “Don’t worry, it will rise.”

  Zhong Shi still looked calm, waved his hand slightly and said, “It will rise soon, you are a bit unfounded!”

   “Am I worrying too much or are you just being lazy?”

Fang Zhouyuan, who had endured for a long time, finally broke out, and couldn’t help asking loudly, “Mr. Zhong, we have also heard about that rumor. No matter whether it is true or not, you have to do something. If you are just like this With our hands and feet bound, how will we work in the future? Now we are maintaining the country’s exchange rate system, not a personal dispute, do you understand?”

  His suddenly raised voice immediately attracted the attention of all traders.

   “Oh, so you also heard that rumor?”

Zhong Shi looked at Fang Zhouyuan with a half-smile, then at the traders who were looking this way, and said loudly, “And you, you must have heard the rumor, right? You must be very strange, Is this rumor true or not, and why have I held back for so long?”

   No one spoke, a dead silence.

   “Old Fang, tell me, do you think the rumors that I am involved in the transfer of benefits are true or not?”

After scanning around, Zhong Shi’s eyes finally fell on Fang Zhouyuan, “You also think that I’m holding back because I’m bound by that rumor? Do you think I’m not doing anything now because I’m afraid of confirming that rumor? If that’s the case, you underestimate me too!”

   “But what is all this for?”

Fang Zhouyuan was left speechless by the question, pulled his hair vigorously, and asked with a sad face after a while, “I really don’t understand, what are you thinking? Seeing that the exchange rate is approaching 6.5, You haven’t taken any action yet. With all due respect, even if there is interest transfer, you should do it now! You can’t expect the central bank to raise the lending rate again, can you?”

   “Old Fang, let me ask you, what is the purpose of our intervention in the exchange rate?”

Zhong Shi looked at him leisurely, with a calm expression, seeing that the other party had not spoken for a long time, he simply said, “Let me tell you, in order to combat the international short-selling forces, it is not allowed to be long-term bearish on the RMB as the market recognized Anticipation. Simply put, we can depreciate, but only on our own initiative, not because of external influences. Do you think I have a reason for this?”

   “Makes sense.”

   Fang Zhouyuan gradually calmed down, nodded after thinking for a while, “What you said is indeed reasonable, but what does it have to do with the current situation?”

   “If I can crush the short sellers without using the country’s foreign exchange reserves, wouldn’t that be the best of both worlds?”

  Zhong Shi laughed, patted the other person on the shoulder, pointed to the screen on the wall and said, “Look, hasn’t the exchange rate gone up now?”

  Following the direction he pointed, all the staff looked together, only to be surprised to find that the RMB exchange rate has quietly stabilized and is rising in an orderly manner.

   Just before speaking, the exchange rate of RMB had dropped to the highest point of 6.4826, but it also came to an end. A wave of fierce funds came out of thin air, and here it firmly supported the renminbi, making the exchange rate stop the decline.

   Just when everyone was amazed, these funds were not satisfied, but took the initiative to choose to attack and buy RMB in the market everywhere. Their volume is large and numerous, so many traders who are considering selling RMB directly chose to make a deal without the slightest hesitation.

  The exchange rate started to rebound.

“This is how the same thing?”

  Looking at the changes on the board, Fang Zhouyuan was dumbfounded. After a while, he remembered what Zhong Shi had said before. He couldn’t help pointing at Zhong Shi, and asked with a strange expression, “All this has something to do with you?”

   “The fun has just begun!”

  Zhong Shi was noncommittal, just pointing to the screen, motioning for Fang Zhou to look away, “Just today, the bears will pay a heavy price for their actions!”

  The bulls who appeared out of thin air were hit by a short seller by surprise. But after an initial rout, they quickly fought back. In fact, in order to bring the RMB down to 6.5, they have accumulated a lot of bargaining chips on hand. They originally wanted to release them little by little, but now that the situation has changed, they have to increase their selling efforts.

   “Someone asked if we were shooting!”

   At this moment, a trader who had just hung up the phone asked loudly, “Do we have a message for the market?”

  The changes in the market not only made the main short sellers aware, but also caused rumors to spread. After considering the possible amount of funds on the disk, traders believe that the biggest possibility is that the central bank is brazenly intervening in the exchange rate of offshore renminbi. So familiar traders immediately called to ask about the specific situation.

  In this case, if the news is announced, it is encouraging the bulls to actively buy, which can form a thrust for the current upward momentum. However, the trader did not dare to assert without authorization, but chose to ask Zhong Shi for instructions at the first time.

   “This…what the **** is going on?”

   Until now, Fang Zhouyuan has not yet understood. He scratched his head and stared at Zhong Shi with wide eyes. He knew very well that the person in front of him must know something.

   “Don’t say anything.”

In the eyes of everyone, Zhong Shi waved his hand slightly, “Neither admit nor deny, let the market guess. Only in this way can the short sellers come out. This time I must teach the short sellers an unforgettable lesson! “

   During the speech, the RMB exchange rate rose by 50 basis points again to around 6.4700.

   This is an important pass!

   Thanks to book friends such as Good Books, Definitely Read, Fish in the Sky, Cats on the Ground, Rest assured Two copies, cpower, davidC, etc. for voting monthly! Thank you for the recommendation votes of Dihuaha, the scumbag who wants to be a top student, l, chasing the wind and catching shadows, suddenly suddenly suddenly, and cold-hearted Haitao! I am sorry that there have been too many things these days, and today I wrote a little late. I hope everyone can understand~

  (end of this chapter)