A moment later, Director Wang's hearty laughter came from the phone: "Great, it seems that the offshore market can be left directly to you. The central bank does not need to use additional foreign exchange reserves to do it personally. Lu Ming
Comrade, I leave the offshore market to you, I believe you can complete the task well!"
Lu Ming nodded and replied: "I will try my best!"
At least $810 of liquidity is guaranteed. What is the concept?
This means that if Tiansheng Capital is unilaterally long on the RMB, it can buy up to 565 billion yuan, basically buying up the offshore market, shorting it, and buying up the pace of liquidity depletion.
The vast majority of offshore RMB funds are concentrated in Xiangjiang, where there are approximately 800 billion yuan in deposits, the market in Wanwan has a scale of 320 billion yuan, and Singapore has a scale of more than 150 billion yuan. The entire offshore market is approximately
It is about 1.5 trillion yuan, and the market size is actually not large.
The strategy of shorting the RMB in response to the international hot money short sellers this time is basically the same as the last confrontation. Moreover, with the last confrontation, the interest rate hikes against Laos and the United States caused the U.S. dollar to appreciate, and then used the return of the U.S. dollar to harvest conditions around the world.
The road has been explored very clearly.
So the central government directly adopted the same strategy as last time. There was no other way. The international short sellers were unconvinced and wanted to send a second delivery, so let’s cut it again...
Lu Ming's strategy was almost the same as last time, with only slight changes and adjustments. Tiansheng Capital acted as a mobile force to buy and grab RMB in the offshore market, causing short-term depletion of RMB liquidity in the offshore market.
The size of the entire offshore market in RMB, Lu Ming can guarantee to buy more than 560 billion yuan, cut off more than one-third of the liquidity in the offshore market, and cut off the source from the source just like last time, the army of short sellers came with great momentum.
How can I sell short if I have no coins available?
Once Lu Ming gets involved in this 560 billion-yuan scale deal, all the funds in the market will definitely think that this is the "regular army" of the central government that has been secretly deployed offshore, waiting for the time to come, and will definitely think of it.
In the scene a year ago, Lu Ming brought up the rhythm and emotion and swept a third of the money. Why didn't everyone rush to grab the RMB first?
Then everyone is grabbing RMB, and of course the value will rise.
Lu Ming's daring to be so unrestrained in the offshore market is of course inseparable from the central government's layout in the onshore market, which is to directly tighten RMB lending and strictly control the large-scale outflow of mainland funds.
In addition to tightening RMB lending, reverse repurchases are also used to regulate short-term capital flows. This trick is to lock short-term capital flows and prevent the market from further expansion of selling panic.
At the same time, we also took advantage of the general trend of appreciation of the U.S. dollar index to carry out deleveraging and dismantling of leverage, in order to stabilize the RMB exchange rate.
As a result, in the onshore market, through a series of combined punches by Yang Ma, Lu Ming continued to dig out the butts of the army of short sellers in the offshore market. The international short sellers who took advantage of the excitement were nothing more than being "closed and beaten" all over again.
One time, Lu Ming cut them again.
…
The phone call lasted for about half an hour before it ended. Lu Ming immediately conveyed instructions to Qi Wei, the person in charge of the implementation, and directly spent US$20 billion in liquidity to go long RMB to suppress the shock.
At this time, the offshore exchange rate is at the water level of 6.9527. It has been easily penetrated through the 6.8 and 6.9 levels before. The international short hot money coalition is full of momentum and is already aiming at the 7 level.
In the next three days, the onshore market also saw a series of combined attacks from multiple relevant departments.
We further launched a lightning-fast crackdown on underground banks and false trade, and also implemented stricter controls on overseas assets and the use of foreign exchange. There are three main points:
The first is to increase the review of foreign exchange purchases, external investments, and mergers and acquisitions, and all investments without genuine background will not be approved;
Second, legal sources of funds must be provided for large-amount foreign exchange purchases to directly cut off the channels for hot money to flow out;
The third is to strictly prohibit the purchase of foreign exchange for overseas securities investment, real estate market, purchase of insurance, etc., which basically blocks most channels for capital outflow.
It is no exaggeration to say that even if Tiansheng Capital wants to purchase foreign exchange overseas, it is not easy to get approval.
However, Tiansheng Capital no longer needs to bring funds from China to overseas markets. The asset size of the offshore market has expanded to the order of hundreds of billions of dollars, and this is all profit. The US$5 billion that was previously overseas has long been returned.
To put it bluntly, it is all about reinvesting profits and compounding profits.
And if it’s too much, it’s impossible for Tiansheng Capital to get approved. If it’s too little, it’s like scratching an itch.
…
As this series of combinations hit, the RMB rose accordingly, rising from around 6.95 to around 6.86 in just two trading days.
Everyone also breathed a sigh of relief. This series of combined punches was extremely effective and immediate.
However, Lu Ming knew very well that this was just a warm-up, and he still had US$48.5 billion in liquidity that he had not yet used, which meant that it had just begun.
Many people saw that the RMB exchange rate had stabilized and felt that it was over. The unconvinced international short-sellers had to be taught a lesson once again. Such a thing would be very difficult for these international speculative capitals who only care about food but not fights.
It’s not surprising either.
The central bank has not interfered heavily with the RMB. The reason is very simple. The RMB has entered the international stage and will be at the center of this stage in the future. If we have high aspirations, the credit of the RMB is very important, so it can
If you don’t interfere, try not to interfere.
The foreign exchange market was turbulent, and Big A was a bit miserable after entering December, falling directly to 3200 points, almost falling below the round number mark.
There is too much bad news. Some smart funds have predicted from the recent market conditions that Big A may introduce measures to further de-leverage and deleverage, and the central bank is also tightening currency.
Under this situation, everyone turned their attention to Tiansheng Capital, thinking that Lu Ming would stay on the sidelines with more than 100 billion in liquidity. If he could enter the market, Big A could definitely see 3,500 points.
But in the end, I thought about it and let it go. This was too unreliable. It was a bit unrealistic to ask Brother Yi to carry the sedan chair.
In addition, the voice of raising U.S. interest rates is still very loud nowadays, which is like the sword of Damocles hanging over non-U.S. currencies around the world, bringing uncertainty and panic to all investors.
…
December 6th, morning.
Lu Ming was having breakfast when he suddenly heard An Yirou sitting nearby staring at the tablet in his hand and saying in surprise: "The exchange rate of RMB against the US dollar has dropped to 7.43? Look, this news has already exploded internationally.
Got it!"
Hearing this, Lu Ming, who was enjoying breakfast, said without raising his head: "Do you believe that it broke 7.43? It's impossible. This kind of news is 'Fikenius' at first glance. Do you really think we don't have monetary sovereignty?"
?”
Yesterday's RMB exchange rate was still around 6.86, but today it fell directly below 7 and reached the level of 7.43?
However, this news spread extremely quickly in international news. In this Internet information age, news is transmitted in minutes, which has caused huge panic in the market.
About ten minutes later, An Yirou saw the latest news flash, and couldn't help but read it in confusion: "Google came out to clarify that this was an oolong caused by anomalies in the background data, leading to the spread of wrong information?"
Ten minutes is enough to cause violent market fluctuations that last for a long time.
Lu Ming laughed jokingly when he heard it: "Don't you think it's ridiculous? For a world-renowned Internet technology giant with strong technical strength and a market value of hundreds of billions of dollars, the credibility of such news is really low."
Obviously, this is the opponent deliberately creating panic from public opinion. Multiple factors superimpose to guide the market to follow suit, thus forming positive feedback. Then following the trend can also evolve into stampede panic.
