Chapter 1280

XG people are not stupid. They are all very smart. Soros can't be targeted. He suddenly accepted an exclusive interview with fortune magazine and pointed out that XG's economy has problems. It's clear that he wants to start directly intimidating XG and frighten G currency into collapse with his own reputation!

For a moment, the whole elite of XG were frightened. Some elite tried to sell Hong Kong dollars at the first time, but found that the exchange was not open.

Then the elites were even more frightened. This is to prevent ZF from letting them run away!

In fact, it's not that they don't run, it's just that they close their doors and rest normally because of holidays. These people are really scared.

On the other hand, the relevant departments of XG can not sit still. In fact, they have foreseen Soros's problem and studied for six months. Finally, they came up with a very awesome solution.

They believed that as soon as this method was worked out, Soros could be driven back immediately.

So what is this magical way?

That is to raise the exchange rate of G currency lending.

They have studied many cases of Soros and found that his short routine is actually very fixed.

To put it simply, first lend local currency from the bank, and then sell these currencies for us dollars at the first time.

Then we use all kinds of news and means to suppress the currency exchange rate. Finally, when the exchange rate drops a lot, we change the US dollar into local currency and return it to the banks that borrow money.

In this way, we can earn a lot of dollars as an intermediate profit.

Therefore, the relevant departments of XG were pleasantly surprised to find that as long as they raised the interest rate and let Soros borrow money unprofitable, that's all.

Let's briefly explain that before the interest rate adjustment, Soros wants to borrow from XG's Bank for three months, a total of 1 billion GB, and needs to pay 5% interest as the bank's borrowing income. When the three months are due, Soros needs to return 10.5 billion GB to the bank when he pays back the money.

In other words, Soros's short XG profit must exceed 500 million GB to be profitable.

However, after the relevant departments decide to raise the reception interest rate, such as increasing the interest rate from 5% to 20%, Soros will have to pay back 12 billion GB to the bank at that time, that is, he will have to earn at least 2 billion GB of profits in order to be profitable.

In this way, Soros's profit will be much more difficult, and the profit will be greatly reduced. If all kinds of operation costs and labor costs are included, the business will be unprofitable.

So as long as Soros is smart enough to see XG raise the borrowing exchange rate, he will give up on his own.

Not to mention that this time, the relevant departments of XG have gone out of their way and directly increased the interest rate from 5% to 30%, six times. In the view of people in these departments, Soros decided that it was impossible to engage in XG this time. To come is to lose money!

Not to mention the result, the effect is really good. For a moment, no one will go to the bank to borrow money, and if they can't borrow money, there will be no pressure on the exchange rate. Everything is so perfect.

The society and elites of XG are relieved to see that the response of relevant institutions is so rapid. It seems that Soros's disaster has passed.

But after being happy for a week or two, some people found that something was wrong. XG's stock market began to decline.

Then, there was the news that several enterprises had to declare bankruptcy because of capital problems.

This made XG, which had been calm for a while, start to smoke again.

XG's relevant institutions began to investigate nervously to see if it was Soros's pen. Then they were relieved because there was no Soros problem. The decline of the stock market and the collapse of enterprises were normal business problems.

However, the relevant institutions could not laugh because these enterprises closed down because they had no money.

This seems very normal. It is natural for enterprises to close down when they have no money.

However, these enterprises could not have gone bankrupt.

You know, not all companies in the world have such abundant cash flow as boss Jia's cheat.

In fact, more than 90% of the companies on the market need to rely on bank loans to operate, especially the larger enterprises, because these enterprises will choose to borrow from banks in order to pursue speed in the process of expansion.

It is unrealistic to earn all the loans in a short time, so the best way to fill the loan is to borrow another loan, use the funds of the latter loan to make up for the expenses of the previous loan, and then repeat the process.

I believe that readers who have many credit cards and loyal users of a series of apps such as Huabai, borrow Bai, wechat, Xiaomi finance, Jingdong Baitiao and so on must be very familiar with this routine.

These are normal for most enterprises. As long as the enterprise can maintain its operation and have certain profits, there are no problems in these accounts. As long as it can borrow new loans from the bank in time and continue to maintain the capital cycle of the Russian doll.

This is how most large enterprises in the world operate.

But these enterprises never dreamed that the interest on short-term loans from banks would instantly rise six times, from 5% to 30%, which would really kill these companies that survive on loans.

Borrow money. The interest is too high. I can't afford to pay it back in the future. I owe more to the bank at that time.

If you don't borrow it, the last loan will not be repaid, the funds for the normal operation of the company will be empty, and the company's account will become cleaner than a beggar's job.

In the face of such a situation, many enterprises can't afford it. They don't want to borrow money and can't afford it, so they can only declare the company bankrupt.

Of course, there are some smarter ones. They will choose to put all the current funds of the company together, and then return to XG next week under the pretext of going abroad for investigation. They will not return to XG in their whole life.

If there are only one or two such companies, it's nothing, but when more than 2% of XG companies have the same similar problems, the stock market will inevitably fall.

Especially when the elites in the stock market know the reasons for a large number of company failures, and XG relevant institutions cannot recover the policy in a short time, and more companies will have to run away with the maturity of funds but unable to borrow new loans, the stock market will usher in a sharp decline.

On December 28, 1997, in just three hours, G shares fell 3000 points, from the valuation of 15000 points to 12000 points.

When the time entered January 1998, in this new year, G shares also ushered in a new trough. G shares fell below 10000 points, a new low in the past five years. For a moment, the whole story howled like a tide.

I believe you can see that, like South Korea before, this time XG also gave itself to the pit.

What's more frightening is that when some people began to study the stock market carefully, they found that there were many empty orders in the stock market since November. All they bought were Hong Kong stocks, which would fall sharply. Together, these empty orders had a huge volume of nearly $20 billion, equivalent to one tenth of the market value of the whole Hong Kong stocks.

By the way, what is called a blank order? In fact, the operation is the same as the exchange rate, that is, I first borrow some shares from the institutions holding shares, agree to return these shares after three months, and then give an interest of about 5%.

After that, they sell it in the market and exchange it for cash.

Then, in the next three months, as long as the stock market falls, the capital to buy stocks again in three months will also fall. After removing the interest of 5%, the rest will be all the profits of the short side.

If the whole stock market can fall by about half, then an empty order of $20 billion can earn a profit of $10 billion, which is a net profit.