On the next day, Thursday, January 5, the offshore RMB overnight lending rate in Hong Kong continued to soar. The cumulative increase in two days soared to a height of 81%. At the same time, the RMB appreciated again sharply by 870 basis points today, returning to below 6.8 to below 6.8.
6.7830 water level.
In just two days, with lightning speed, the RMB appreciated by nearly 2,000 basis points, directly returning to the level two months ago. The violent appreciation of these two consecutive daily K-lines was almost a terrifying increase that beat all short sellers.
.
Players from all walks of life in the foreign exchange market were greatly shocked. They thought that the foreign exchange market was about to stage a more intense long-short confrontation than at the beginning of the year. After all, there were two big own-goals of "breaking 7" last month.
The move was so intense that it gave people a feeling that a storm was about to come.
As a result, I never expected that the short position would be unilaterally hammered.
There are many reasons for this unexpected result.
Fang Hong's advantage is self-evident. He cooperated with relevant state departments to shut down the government and raise the overnight lending rate. At the same time, he continued to draw out the remaining water in the pool. No one in the outside world would have thought that he would go crazy buying in the offshore RMB market.
The plan for a 10 trillion currency reserve would be frightening to death if this amount was revealed.
The reason why the international short forces came up and surrendered by playing GG was that, in addition to being unable to defeat Fang Hong’s move, they themselves were also disrupted by the “black swan incident” in the second half of the year. It was also very critical that they did not expect
The newcomer from North America, Shiren, turned out to be a dark horse. They never thought this would happen in the first half of the year. This variable was a "black swan" in their eyes, and it was caught off guard and unexpected.
This unexpected news story also made the international short sellers have a premonition that something is not going well in their own homes, and there may be a fight among themselves. They don't know what will happen next, in case something unexpected happens again.
It would be great fun if there were unexpected accidents, such as if your home was robbed.
Therefore, at this moment, the international short-selling forces are no longer interested in fighting. They no longer have the momentum they had at the beginning of the year. In addition, their opponents are not so easy to control. They have been defeated by them many times and have no determination to win. Now they are still worried.
Something happened in the backyard.
The opponent in front is powerful. If there is another "black swan" in the backyard, Fang Hong will take advantage of it and be unable to advance or retreat. If such a bad situation happens, everyone will be paralyzed.
Due to weighing the pros and cons of various aspects, the international short-selling army had no choice but to give up even if they were unwilling to do so. This is why the foreign exchange market trading team of Qunxing Capital has not yet exerted its strength and made a starting move, but has not yet opened its big move against the opponent.
He was defeated like a mountain.
However, in the next three days, the short army came and launched a quite powerful counterattack. It seemed that they were ready to run away after being defeated in a fight, but they still had to say a few harsh words to save face. Three K-lines were connected quickly.
The depreciation caused the offshore RMB exchange rate to depreciate by about a thousand basis points again, reaching around 6.90 again.
…
At about 16:00 on January 10th.
Tian Jiayi, who was in the company, called Fang Hong, who was at home: "The army of short sellers in the foreign exchange market has been working hard for three days in a row. Should we fight back forcefully? Or should we implement it as planned?"
At this moment, Fang Hong, who was staring at the trend of the offshore RMB exchange rate and the US dollar index, replied directly: "No, increasing efforts means increasing capital costs. Just hold the 6.9 water level as planned. This way the capital costs are relatively lowest.
"
Tian Jiayi on the other end of the phone couldn't help but said: "Would it be better to be more cautious?"
Fang Hong replied calmly with a confident smile: "It's already very stable. If you are more stable, you will scare yourself. Good news has come from the other side of the ocean. The U.S. dollar index has continued to decline since January 3. The pressure from the U.S. dollar has
If the dollar falls sharply, the U.S. dollar will inevitably continue to decline, and the RMB will naturally strengthen. Therefore, we do not need to waste additional capital costs, and our money is not blown by strong winds."
Tian Jiayi: "Okay, I know how to arrange it."
…
Sure enough, in the following days, the offshore RMB exchange rate continued to appreciate again. International short sellers knew that the trend was over, no longer struggled to counterattack, and had to close their short RMB positions.
On Wednesday, January 11, at around 11 a.m., Fang Hong suddenly updated a blog post on his personal social media Weibo account.
Outsiders felt it was unexpected, but the more critical point is that this Weibo not only caused a sensation in the capital market, but also focused the attention of countless ordinary people in China on the word "financial war."
The latest blog post published by Fang Hong:
[From 2015 to 2017 now, a war to defend the RMB that lasted for two years has finally come to an end. From the international short-selling army aggressively pressing the situation, to the desperate counterattack, and then to
International short sellers made a comeback and finally returned with a loss.
The crackdown on illegal capital flight at the national level, the appropriate adjustment of the exchange rate system, and the resolute counterattack against international short sellers have finally completely defeated the demon of devaluation that lasted for two years. The RMB has finally emerged from the painful winter, and the new year will surely usher in warmth.
Spring time.
As for the hedge funds that were aggressively shorting the RMB, they all failed miserably.
Looking back on the disputes in the foreign exchange market over the past two years, in the face of crazy international short sellers and various domestic and foreign doubts, the most dangerous part is not the suppression of the RMB by international capital, but the internal panic, the massive flight of capital, and many
Opportunists are trying to make profits by shorting the RMB.
Compared to the enemies who are visible outside, the most terrifying thing is the own people who are hiding inside and causing trouble.
We need two guns, one pointed at the enemy and the other pointed at ourselves.
In this financial war that has lasted for two years, perhaps what we have done is not perfect, but amid internal and external turmoil, and in the face of a large number of ferocious international short sellers, we have been able to defend the country's economic development achievements over the past few decades.
, and it has been really difficult.
However, while celebrating the victory in this battle to defend the RMB, we must also clearly realize that it is far from over.
The pace of RMB internationalization will not stop because of the current difficulties and obstacles, and as the RMB moves towards the world, I believe that sniper wars against the RMB will continue to be staged.
The world is facing major changes unprecedented in a century, and the external environment may become more complex and changeable.
But no matter how the external environment changes, our most powerful and correct response is always to do our own thing well.
Lian Guangyu's mind is so vast that he listens to the thunder in a silent place.】
…
Fang Hong's Weibo post attracted a lot of attention and surprise from people from all walks of life on the same day.
Ordinary melon-eating netizens did not expect that so many thrilling events have happened in the financial market in the past two years. Most people do not even feel anything, because these things are too far away and the threshold is too high for most ordinary people, but
It is closely related to everyone and is deeply affected by it, tangibly or intangibly.
But one thing the public netizens understand is that we have won this financial war that has lasted for two years!
The investors were also surprised. They had been exposed to the capital market and participated in it. They knew more than those who did not trade in stocks. They also knew some of the internal and external games in the financial market. But the difference this time was that giants like Fang Hong
A top-notch person said it directly in person, and the credibility and authority index were directly at full levels, which means that those big things really happened.
After Fang Hong posted this Weibo, some people felt their hearts skip a beat and were frightened when they saw it, especially since he bluntly said in the article that internal ghosts are more terrifying than external enemies, and even bluntly stated that it is necessary to
Two guns, one pointed at the external enemy and the other pointed at yourself.
It’s okay for others to say so, but an existence like Fang Hong is really scary.
Some people increasingly feel that they can no longer stay here, and it is difficult to sleep or eat well without going out.