The Hong Kong dollar and the stock market continued to plummet in the past few days, which also made these Hong Kong elites look extremely heavy. As a result, there was not so much laughter and laughter in the conference room, and everyone seemed relatively silent.
As Governor Bryan, Chief of Administration Kesos, and Chief Financial Secretary Ross walked into the conference room, the meeting officially began.
After some polite opening remarks, Ross went directly to the theme of today's meeting, which is to hope that the Hong Kong business community can support the pound as much as possible within its capabilities. At the same time, he said that the Hong Kong Exchange Fund will sell its US dollar and Japanese yen foreign exchange reserves.
Continue to buy pounds.
Unfortunately, many elites present clearly did not want the Hong Kong dollar and Hong Kong's economy to be completely hijacked by the British pound and Britain. Immediately after Ross's words, many people spoke out against it.
Du Ningxue, the president of Ka Wah Bank, said: "Because the issuance of our Hong Kong dollar is fundamentally different from the currency issuance of various countries and regions, the appreciation or depreciation of our Hong Kong dollar is mainly related to the foreign exchange and gold we store in the Exchange Fund.
related.
Especially at present, the proportion of our gold reserves in the Exchange Fund is extremely low, and the main impact on the Hong Kong dollar exchange rate is foreign exchange.
In order to maintain the relative stability of our Hong Kong dollar exchange rate, it is also impossible for us to use one currency as the main currency. We must reserve three or more major international currencies in relative proportions.
At present, the pound accounts for about 50% of the total reserves in our Hong Kong Exchange Fund, which is a relatively high proportion.
If we continue to sell other foreign currencies and buy pounds, what is the difference between our Hong Kong dollar and the tied pound? How independent is our currency and economy?
In my opinion, at this time, not only can we not continue to buy pounds, but we should sell pounds and buy gold to increase the proportion of our gold reserves and prevent our Hong Kong dollar from being completely hijacked by the pound."
Of course there are those who are opposed but also those who are supportive. As the representative of British capital in the financial sector of Hong Kong Bank, HSBC President Shen Bi naturally stood up at this time.
"After decades of development, all countries have abandoned the gold standard in currency issuance, which is enough to see the disadvantages.
Moreover, the current price of gold on the market is rising and falling too much, and having too much gold in reserve is not conducive to the stability of our Hong Kong dollar.
As the world's main settlement currency, the currency value of the pound has always been relatively stable. In addition, our Hong Kong economy is extremely close to the Commonwealth, ASEAN, and the European Community. The increase in pound foreign exchange is also to better promote the economic development of our Hong Kong.
If there is no increase in pounds, then I would like to ask what can you reserve?
The U.S. dollar has continued to depreciate in recent years, and its international status has also continued to decline. It is obviously impossible for the U.S. dollar to become the main reserve currency of our Exchange Fund.
The Japanese yen and the mark have grown quite well in recent years, but I believe you are aware of some of the problems faced by these two countries, and it is impossible for them to serve as the main reserve currencies for our foreign exchange reserves.
Besides these three, what else can you choose?
For us, the pound is definitely the safest and can maintain the long-term relative stability of the Hong Kong dollar.
The reason for the fluctuations in the pound this time is just that some countries and forces are short-selling.
Please believe in the British government, the Commonwealth, and ASEAN and the European Community. As long as we can work together, no force can capture the pound.
I am here to represent HSBC as a pervert and will continue to buy pounds in the foreign exchange market.
In addition, due to rising prices in Hong Kong during this period and certain problems with currency liquidity in the market, HSBC will join forces with Hong Kong Bank and Nanjiang Hang Seng Bank to jointly issue 50 billion Hong Kong dollars, and will pay an equal amount of pounds to the Exchange Fund at the current exchange rate."
As soon as Shen Bi made this statement, he was immediately opposed by the chartering king. At present, the price of goods in Hong Kong has risen sharply, coupled with the depreciation of the Hong Kong dollar and the sharp fall of the stock market, there is no shortage of money in the market.
At this time, even if the Exchange Fund does not recycle part of the Hong Kong dollars, it will continue to issue additional Hong Kong dollars. This will only promote further rise in prices, which is definitely not good news for the people of Hong Kong.
Li Jianhui also disagreed with this. After the Charter King finished speaking, he also said:
"We are all business elites. We all know the current situation of our Hong Kong economy. It is very inappropriate to issue additional currency at this time. Our Hong Kong economy should not and cannot become a victim of this dispute between the pound and the US dollar.
Of course, because our Hong Kong economy is very close to the Commonwealth, ASEAN, and the European Community, and the British pound is the settlement currency of these major markets, and the British pound accounts for a relatively high proportion of these major markets and national reserve currencies, the British pound is
Severe depreciation is also detrimental to our development.
Not for other reasons, but for our own benefit, we have to contribute this time.
There is no need to adjust the Exchange Fund for the time being. Our Tung Wah Association has five major banks: Xin Jian, East Asia, K. Wah, Dao Heng, and Wing On, as well as Xin Jian, Kowloon, Guanghua, Xin Hui, Xin Bin, Xinyang, Desheng, etc.
Securities investment companies will be long on the pound in the foreign exchange market.
At the same time, our Tung Wah Association corporate capital account will fully increase its holdings of pounds to support the stability of the pound exchange rate."
Li Jianhui's words shocked not only the chartering king and others, but also Brian and others.
They never thought that the Donghua Association would contribute this time, but Li Jianhui's words said that the Donghua Association would do its best this time.
However, they didn't know that the reason why Li Jianhui did this was because he had the memory of his past life to give him the confidence.
Many people in the outside world believe that Britain will be dragged into a long-term war by Argentina. After all, powerful Soviet troops have been entering Afghanistan in the Middle East for several years, and there is still no sign of an end. This is also an important reason for the crisis in the pound and the British stock market.
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However, the facts are indeed that Britain will be able to end this war in a few days, and Argentina obviously does not have the confidence to fight a national war.
Even if the United States is behind it in this life, the United States would not dare to give advanced weapons to Argentina. After all, the dispute between the United States and Britain is currently only an economic and financial dispute, and the two countries are both members of the NATO alliance. The United States does not dare to risk it.
The world is in disarray.
As long as there is no impact from the war, the pound is bound to rebound strongly, and it will surely rise back after falling during this period.
As for the people on Wall Street, Li Jianhui and the others are really not worried. The ASEAN economy is currently developing rapidly, and the British economy has also overcome its weakness due to the leadership of Blue Maple Holdings and the Rose Consortium.
Even if there is an impact on the stock market this time, the impact will not be too big, at least it will not have a big impact on the pound.
Moreover, Li Jianhui will go to England tomorrow and will communicate with the British government and the Rose Consortium to jointly invest in the development of the ASEAN market.
He didn't believe it this time. After several years of preparation, the Iron Lady was on the throne, and the Queen's influence in the Commonwealth was at its peak. How could the British still lose when they had so many good cards in their hands?
You must know that when Britain planned to push the pound back to its peak, it had already expected to be suppressed and targeted by the United States. This time, except for the Falklands incident, which was somewhat unexpected, other aspects had already been prepared.
To be honest, the European Community was not part of the British plan from the very beginning. The British pound mainly hopes to occupy the foreign exchange settlement market in the Commonwealth and ASEAN. As long as these two markets are stable, the pound will be stable.
Li Jianhui was willing to work hard on this. On the one hand, the Hong Kong dollar could not promote it due to its own reasons. On the other hand, the main industrial markets of the Tung Wah Association were within the Commonwealth.
There is also the fact that Li Jianhui has always been indifferent to the US market and is not at ease with the domineering style of the US government. Relatively speaking, the British government may be a little better.
Of course, the main reason is because of interests. This time Chen Yulian will also take his two children with him. In a few days, he will be called Earl Li Chen Yulian. The scope of Donghua territory has also been expanded. This time the British will be included.
The Indian Ocean Territory is allocated to the Donghua Territory along with the ten islands surrounding the Donghua Territory.
The biggest benefit this time is the acquisition of Royal Bank of Scotland by Blue Maple Holdings. Although this bank is only a regional bank in this era and is far from comparable to HSBC, Standard Chartered, etc., this bank is one of the issuing banks of sterling.
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In 1981, HSBC and Standard Chartered made a bid for this bank, but unfortunately they failed due to government intervention. This time, they got a better deal for Li Jianhui, or perhaps for Chen Yulian's children.
After all, this bank has a royal title, so there are natural conditions for Li Jianhui to win, that is, Blue Maple Holdings and the funds behind it must be inherited by Chen Yulian's children in the future, which means that in the future, this bank must be controlled by British nationals.
Regardless of whether Bryan knew about the exchange of interests between Li Jianhui and the British government, he greatly praised Li Jianhui's words at this time. He also hoped that other banks and financial institutions would follow the same example as the Tung Wah Association and choose to increase their holdings of pounds and reduce other foreign exchange.
It was also announced on the spot that due to communication with the North and in order to better maintain the stability of the Hong Kong dollar, Bank of China Hong Kong will become the fourth bank with the right to issue Hong Kong dollar notes.
At the same time, in order to avoid unifying opinions on additional currency issuance in the future, Xinjian Bank will be added as the fifth bank with the right to issue Hong Kong dollar notes.
Before June 30, 1997, the issuance of additional currency will be decided jointly by representatives of the five banks and the Monetary Authority, of which the Monetary Authority has two votes and the five major banks have one vote each.
Li Jianhui himself was quite surprised when he heard this. He once had to work hard to get it, but now he no longer had this idea, and he got it easily.
There were only five banks issuing Hong Kong dollars, and he didn't know what to say. This was really too much.
However, he did not refuse. With this, Donghua Association will have more say in Xiangjiang Finance.
For example, in terms of increasing gold reserves, the Donghua Association will have a say in issuing additional currency in the future.
Of course, there are also some adverse effects on the Tung Wah Association. The situation at today's meeting will make many forces think that Tung Wah will fully sway towards the British.
Li Jianhui will not explain too much about this. After all, there are gains and losses. It is not that he has never thought about using the Greater China region as his foundation and trying his best to move closer to the north. Unfortunately, due to his position, the north cannot tolerate him and the east.
Huahui.
With this current choice, at least the government is willing to support it when the U.S. government suppresses it.
After more than ten to twenty years, I believe the ASEAN layout will be almost complete. At that time, the Tung Wah Association industry will be targeted, and ASEAN will naturally take the lead.
Perhaps Li Jianhui's meeting was too biased, so shortly after the meeting ended, he received a call from Xiangjiang Xinghua News Agency, asking if he was available at 7 p.m. Li Jushen invited him to have dinner at Yuchuan Restaurant.
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Chapter 700: Support the Pound Sterling Free to read.
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