The impact of this round of turmoil is very great. As soon as the major exchanges in Hong Kong opened on Monday morning, the screen turned red. The stock prices of major listed companies plummeted. The sell orders were very large, but there were very few buyers.
Far East Exchange Chairman Li Fuzhao personally called Li Jianhui, hoping that Xin Jianxi could buy back its shares listed on the Far East Exchange, maintain the stability of the stock prices of several major groups, and boost investors' confidence in the stock market.
In the Governor's Mansion, Brian, Kessos, Weems, and Hughes all frowned.
Brian asked aloud: "What do you think of the current situation? How can we restore financial stability in Xiangjiang as soon as possible?"
Financial Secretary Wilms responded: "To calm the situation, we first need to attack the source. This large-scale run was mainly caused by certain interest groups deliberately spreading rumors and causing panic among citizens in order to attack their competitors.
, and then this incident occurred.
I think it is necessary to draw a red line for these forces, otherwise this kind of thing will happen again in the future.
We do not prevent them from competing with each other, but we absolutely cannot allow them to compete without a bottom line.
I suggest that the forces that caused this incident should be severely punished, their financial licenses should be cancelled, and they should be banned from entering the financial industry in Hong Kong."
It's a pity that neither Brian nor Xosos agreed to this proposal. They knew the situation very well. The main issue was the battle between the Xinjian Consortium and the United Consortium.
If Weems' proposal is followed and Standard Chartered, HSBC, Hang Lung, Hang Seng, Xin Jian, Dao Heng, and several major banks in East Asia are all shut down, this will directly paralyze Hong Kong's financial industry.
At present, it is useless to trace the source, and if we really trace it, these forces will be able to deduce it completely, and there will be no evidence of their manipulation at all.
The main thing now is to think about how to calm down the current turmoil. If this continues, I'm afraid it will have more serious consequences.
Hughes said: "I suggest contacting HSBC, Standard Chartered, Xinjian, East Asia, Dow Heng, Sun Hung Kai, Hang Lung and other powerful banks to jointly stabilize the financial order in Hong Kong. For those banks in crisis, several major banks can
Bank takeover, whether it is capital injection or acquisition, is up to the banks themselves."
Brian did not express his position, but looked at the Chief of Administration, Xosos, and asked Xosos's opinion on this.
This time the banking and stock market issues are mainly the responsibility of the Financial Secretary and have little to do with the Administration Department.
However, if this aspect cannot be calmed down for a long time, it will also cause a chain reaction and affect the development of other industries in Hong Kong.
Therefore, Xoxos still hopes that financial stability can be restored as soon as possible. As for Weems' proposal, forget it. We cannot add fuel to the fire at this time. We can only make up for the regulatory loopholes and legal flaws in this area after it subsides to prevent follow-up.
appearing again.
"I agree with Hughes. At this time, our government must take strong action and join forces with large banks in Hong Kong to take over banks that have no liquidity to stabilize the sentiments of Hong Kong citizens.
In addition, contact the shareholders of major listed companies in Xiangjiang and ask them to buy back their company's shares in the stock market as much as possible to stabilize the stability of Xiangjiang's stock market."
As a soldier, and later working in the diplomatic service, Brian was not very proficient in finance.
Faced with the situation at hand, he mainly relied on the opinions of Weems, Hughes, Xos and others.
He also understood that once the opinions of Hughes and Kesos were followed, apart from the branches established by other regional banks in Hong Kong, there would only be a few big banks in Hong Kong such as HSBC, Standard Chartered, and Xinjian, and the monopoly financial groups would
will be formed.
But he still agreed with this opinion. Since these consortia wanted to monopolize this area, he would give these consortiums a chance.
He wanted to see where these major consortiums would stand after they monopolized all walks of life. These monopoly groups were inherently enemies of the red, and he did not believe that these people were not worried about being suppressed or even dismembered in the future.
Brian spoke up: "Just follow Kesos's proposal. Hughes will be in charge of the bank. We will reach a consensus with several major banks as soon as possible. The government will directly take over those banks that are no longer able to maintain normal operations. When the time comes, we will
Negotiate with several major banks.
As for the shareholders of listed companies, Kesos will be responsible for urging these shareholders to buy back as much as possible to ensure the stability of the Hong Kong stock market."
…
At Wheelock Building, Li Jianhui received invitations from Hughes and Xos, inviting him to attend the Hong Kong Financial Summit and the Hong Kong Enterprise Summit in the afternoon.
It was still three o'clock in the afternoon, and it was impossible for Li Jianhui to split himself in half. In the end, he decided to let Li Zaiwei attend the financial summit, while he went to attend the corporate summit in Xos.
Li Jianhui specifically told Li Zaiwei that there is no need to take the lead in meetings, Xin Jian will do whatever HSBC and Standard Chartered do.
Don't rush to win which banks. You won't be able to eat hot tofu in a hurry. If you wait for a while, the cost of winning these banks will be lower.
While Li Jianhui was making calculations, the bank shareholders who were in crisis received the invitation, as if they had found a life-saving straw, hoping that the government would provide them with help at the afternoon meeting.
It’s just that the greater the hope, the greater the disappointment. After the afternoon meeting began, Hughes said at the beginning: “Because there have been runs on many banks, it has had a great impact on Hong Kong.
In order to maintain financial stability in Hong Kong, starting tomorrow, all banks that do not have sufficient funds to ensure normal operations will be taken over by the government."
This is a huge blow to the bank shareholders who are in trouble. Once the bank is taken over by the Monetary Authority, they will no longer own the bank, and they will not be able to decide the future sale price.
The bank's brand value will be zero. Using the Monetary Authority's valuation method to kick out all kinds of dead and bad debts, they may not get a penny.
Many controlling shareholders of small and medium-sized banks have expressed their hope that the time can be extended by a few days. Tomorrow morning is too urgent for them. Whether they are seeking financial support or finding a buyer, they will not have enough time.
It's a pity that Hughes didn't give them any time at all. At 10 o'clock tomorrow morning, once large-scale bank branches have no funds for citizens to withdraw, the Hong Kong Monetary Authority will take over forcefully to protect the interests of Xiangjiang citizens.
At the meeting, Hughes said: "Our large banks must have the responsibilities of large banks, and maintaining financial stability in Hong Kong is also the shared responsibility of all of us.
I hope that HSBC, Standard Chartered, Xin Jian, East Asia, Dao Heng and other banks can lend a helping hand to small and medium-sized banks in trouble and contribute to the financial stability of Hong Kong.
Only when Xiangjiang's financial stability develops for the better will all of you be able to develop better."
Shen Bi, Wilt, Li Zaiwei, Li Guobao, Feng Jingyao, Feng Jingxi and others spoke one after another, all expressing their willingness to contribute to financial stability.
It's just that everyone is vague about the specifics, and there is no specific action plan.