C193 Following behind the great crocodiles (1/2)

”Next, I will stop all investments in the international futures market and Hong Kong stock market, leaving HK $1 billion as a reserve fund.

The rest of the money will be spent on foreign exchange and financial markets in Southeast Asian countries such as Thailand, Indonesia, Malaysia and Singapore. ” Zhou Hao said to the employees.

He then heard one of the American male employees say, ”But boss, the financial markets in Southeast Asia are in a mess right now.

We received the news, George. Soros and the rest are causing a ruckus there, if we throw our money over there, the risk will be huge. ”

Zhou Hao laughed and said: ”Risk comes only with benefits. The so-called danger, is only organic if there's danger. It is because of their financial market chaos that we can profit from it.

Actually, Soros and the group of crocodiles had already been in Thailand and other countries since the beginning of the year, in order to prepare to make a profit from the financial markets of Southeast Asia.

”Right now, I just want to follow them while they're almost done with their preparations and get as much profit as I can.”

In later generations, experts analyzed the Asian financial crisis for a number of reasons, the most important of which was the impact of the money on international financial markets.

With about $7 trillion in international capital flowing around the world, international hype is likely to find a profitable country or region.

It will soon use hype to attack the country's or region's currencies in order to gain a windfall in the short term.

Another reason is that many countries in Southeast Asia have inappropriate foreign exchange policies.

In order to attract foreign investment, they both maintain a fixed exchange rate and expand financial liberalization, which provides an opportunity for international speculators.

In the case of Thailand, controls on capital markets were lifted in 1992, just before the country's financial system was in a state of disrepair.

To make the short-term capital flow unimpeded, provide the conditions for the foreign speculators to stir-fry the Thai baht.

With George. Soros's Quantum Fund and Julian. Robeson's Tiger Fund was the leader, a large number of international speculators had their eyes on the financial flaws of countries in Southeast Asia like Thailand.

It was only then that the invasion took place, sweeping financial markets across Southeast Asia.

According to Zhou Hao's memories from his past life, George had a profound understanding of the meaning of death. Early in 1997, Soros joined forces with other international hedge funds to launch an attack on the long-coveted Southeast Asian financial markets.

In the beginning, they sold off the baht, causing its value to plummet.

In the face of the aggressive attacks from hedge funds, the central bank of Thailand decided to intervene, using about $12 billion to absorb the Thai baht.

On the one hand, the refined local banks lend the baht to offshore investors, and on the other hand, the rate of interest is greatly increased, so the baht exchange rate remains stable for the time being.

The first phase of the world-famous Asian financial storm began in June 1997.

In June, when hedge funds launched another deadly attack on the Thai baht, Thailand's central bank had to retreat, as its remaining $30bn in foreign exchange reserves had run out.

On June 30, Thailand's prime minister promised foreign countries on television: ”The Thai baht will not devalue. We will make those speculators lose everything.”

However, just two days later, the Central Bank of Thailand was forced to renounce the fixed exchange rate system and introduce a floating exchange rate.

On that day alone, the baht fell by 20 percent, followed by a comment by the Governor of the Bank of Thailand. Malachy announced his resignation.

Until August, when the Bank of Thailand decided to close 42 financial institutions, the Thai baht collapsed completely.

During this period, hedge funds also attacked the Philippine peso, Malaysian ringgit and the Indonesian rupiah, and finally the Southeast Asian currencies, including the Singapore dollar, fell.

It was already May, so it was already close to George. Soros and Julian. Robeson and the other big crocodiles had only one month left to their overall attack, so he had to hurry up and prepare for it.

Compared to the tens of billions of dollars that the big crocodiles had, this amount of money that was less than two billion in Zhou Hao's hands was not enough to cause any big waves at all.

Zhou Hao also did not plan to cause waves by following the footsteps of these great crocodiles, his goal was merely to fish in troubled waters.

As for the damage that the storm had caused to the economies of the countries of Southeast Asia, Zhou Hao was no longer concerned about it.

Just like in George's previous life. Soros said to the media after the Asian financial crisis.

”In terms of financial functioning, there is no moral or no moral, it is just an operation.

Financial markets are not moral; they are not immoral; they do not exist because they have their own rules of the game.

I am a participant in the financial markets and I will play the game according to the rules that have been set. I will not violate those rules, so I do not feel guilty or responsible. ”

Despite George. Soros's words were irresponsible, but after much analysis from the financial experts in his previous life, they all thought that the underlying reason behind the Asian financial crisis was the unsound financial economies of the Asian countries.

Even without George … The external influences of Soros and the others would also cause a financial storm in Asia, and the degree of its effect would be much greater than in reality.