Chapter 221
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The reason why the Hong Kong government announced that the Hong Kong dollar floated freely with the pound in the international foreign exchange market was because the Bretton Woods system further collapsed.
Last year, in August 1971, after US President Nixon announced that he would stop the exchange of US dollars for gold, the Bretton Woods system began to collapse.
However, even if the Bretton Woods system exposes various unsolvable problems, the western capitalist world does need such a mechanism.
Therefore, at the end of last year, the group of ten western countries held a meeting at the Smithsonian Institution in the United States in an attempt to re-establish a new quasi Bretton Woods system.
The outcome of this meeting is called the Smithsonian agreement,
Its contents generally include:
The US dollar depreciated against gold, and the official price of gold per ounce increased from US $35 to US $38;
Adjusting the exchange rate, the US dollar depreciated by an average of 10%, and other major European and American currencies appreciated;
The allowable fluctuation range of non reserve currency against the US dollar is adjusted from plus or minus 1% to plus or minus 2.25%;
The United States abolished the temporary import surcharge of 10%.
To put it bluntly, the Smithsonian agreement also wants to maintain a fixed exchange rate system like the Bretton Woods system.
Unfortunately, western economic experts are not omniscient. They did not expect that the energy of dollar depreciation not only did not release clean, but also became more and more turbulent.
As a result, Britain can no longer carry it. It announced that it would abandon its obligation to maintain a fixed exchange rate under the Smithsonian agreement and implement a floating exchange rate.
As a British colony, the Hong Kong dollar, which has long been linked to the pound, naturally follows the rules.
However, the problem is that the Hong Kong government has done the right thing in governance, but it has chosen the wrong direction economically.
You know, even if the US dollar is no longer "US dollar", it is still the main settlement currency in the world; In contrast, it is OK for the pound to raise its stature, but the Hong Kong dollar is no longer suitable to follow.
Xiangjiang's current financial system is chaotic, which is a clear proof.
Gao Xian, who had long expected this result, has suspended the foreign currency business of its companies for half a month in advance, waiting for the Hong Kong government to correct its mistakes.
Not only is Gao Xian so smart, but those large companies who stand high and look far also made preparations first, and even postponed the convening of the annual general meeting of shareholders to adjust the dividend distribution.
After all, it's always good to have more cash at this point.
From the reaction of big companies, the uncertainty of the Hong Kong dollar and the stock market that will eventually burst will not bring them down.
If you don't even have this insight, big companies don't deserve to be big companies.
The real obstacle can only be a sudden event such as the global oil crisis.
Gao Xian took advantage of this rare spare time to complete his part in the film the great warlord.
It has to be said that Li Hanxiang, the great director, has rich experience. He not only has the method of scheduling, but also greatly reduces the burden of Gao Xian through the clever use of doubles.
With the full support of Shanghua culture, Li Hanxiang completed the great warlord in less than two weeks with the efficiency comparable to the "one Cantonese film in seven days" of Xiangjiang film industry.
Li Hanxiang, who still has a lot to say, gave Gao Xian another idea. "Mr. Gao, the subsea tunnel will be officially put into use soon. We might as well take the opportunity of the opening day to carry out a publicity. For example, you can take a car through the subsea tunnel in the shape of a movie."
In short, Gao Xian also participated in the financing of the Xiangjiang subsea tunnel, which was finally completed. He is a small shareholder.
Therefore, when Li Hanxiang put forward this proposal, Gao Xian was really interested in the excitement on the first day of the opening of the cross harbour tunnel.
Anyway, this publicity activity is the last shift. Gao Xian thought about it, and then happily agreed.
As soon as Li Hanxiang left with satisfaction, ye Licheng, deputy general manager of Gaoyi, quickly walked in, "boss, Xia Dingji, financial secretary, invites you to attend the meeting to discuss how to solve the current chaotic situation of the financial system."
Gao Xian nodded, "they are on the right road of Zhengzhi. They can't walk anymore."
Ye Licheng felt the same way: "foreign capital has become an important driving force for the bull market of Xiangjiang stock market, but when the Hong Kong dollar floats freely with the sterling exchange rate, they don't dare to come in. Now the exchange is deserted."
"It's better for the stock market to fall or make a false fire." Gao Xian joked and asked casually, "what's the Hang Seng Index now?"
"For more than half a month, the Hang Seng Index has continued to fall by more than 100 points, which is not a big range." Ye Licheng sighed, "you know, before the June 18 rain disaster, the Hang Seng index was more than 700 points, which has fully doubled since the beginning of the year."
"Many people outside don't say that this is an inevitable adjustment." Gao Xian said thoughtfully: "when this adjustment period passes, the stock market will break out. Let alone the Hang Seng index return to more than 700 points, I think it's possible to exceed 1000 points."
Ye Licheng said with a smile, "of course, that's great. There are still many customers waiting in line for listing in our Gaoyi listing and issuance department."
Gao Xian thought for a moment and then instructed, "give priority to those companies whose main business is real estate. I'm worried about this bull market. There aren't many good markets left. Don't miss customers."
"I see." Ye Licheng nodded and agreed, "the milk company suddenly entered the real estate industry and almost stimulated the real estate stocks to fly to heaven. We really want to seize this rare opportunity."
……
The meeting convened by the financial secretary of the Hong Kong government, Mr Xia Dingji, invited all the elites of Xiangjiang's industrial and commercial circles. The purpose is self-evident and wants to solicit opinions widely.
Not surprisingly, Gao Xian met Jardine Taiban Henry kaiserk on this occasion.
You know, this is the first time Gao Xian and Henry kesek have met on the same occasion since land launched a hostile acquisition of the milk company.
Originally, even if it is a malicious acquisition, we can do the superficial Kung Fu of business and have a smile when we meet, but because of rumors, it is inevitable to be mixed with personal gratitude and resentment. The eyes looking at each other can be pure talents and strange, not to mention laughing.
After the formal opening of the meeting, the financial secretary, Mr Xia Dingji, sincerely invited everyone present to express their views.
Gao Xian, who often discusses economic issues with Xia Dingji, knows what the other party wants to do, but cares about what.
In short, Xia Dingji wants the Hong Kong dollar to be bound to the US dollar, but the Hong Kong government has only sterling in foreign exchange reserves, not US dollars, so it must sell sterling and buy US dollars; But at the same time, we can't completely abandon the pound, because it hasn't been approved in London, and no matter how we choose, it will take some time.
Seeing the speeches of several people in front, Xia Dingji frowned and Gao Xian simply opened his mouth.
"With all due respect, although London has always stressed that it will ensure the value of the pound, every time the pound depreciates, it abandons Xiangjiang. As a result, Xiangjiang's capital outflow and inflation are dragged down."
"I think the only way to reverse the current chaos in the financial system is to peg the Hong Kong dollar exchange rate to the US dollar."
"Of course, I know the dollar reserves of Zhengfu are not enough."
"To this end, I am willing to lend the $20 million foreign exchange surplus of Gao's group company to Zhengfu for emergency."
"Although this number is a drop in the bucket, it is a reflection of my confidence in leading the people through the immediate difficulties."
After hearing Gao Xian's words, Xia dingkeaton patted the table with joy, "David, good job. I will ask the governor to grant you a justice of the peace as a reward."
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The reason why the Hong Kong government announced that the Hong Kong dollar floated freely with the pound in the international foreign exchange market was because the Bretton Woods system further collapsed.
Last year, in August 1971, after US President Nixon announced that he would stop the exchange of US dollars for gold, the Bretton Woods system began to collapse.
However, even if the Bretton Woods system exposes various unsolvable problems, the western capitalist world does need such a mechanism.
Therefore, at the end of last year, the group of ten western countries held a meeting at the Smithsonian Institution in the United States in an attempt to re-establish a new quasi Bretton Woods system.
The outcome of this meeting is called the Smithsonian agreement,
Its contents generally include:
The US dollar depreciated against gold, and the official price of gold per ounce increased from US $35 to US $38;
Adjusting the exchange rate, the US dollar depreciated by an average of 10%, and other major European and American currencies appreciated;
The allowable fluctuation range of non reserve currency against the US dollar is adjusted from plus or minus 1% to plus or minus 2.25%;
The United States abolished the temporary import surcharge of 10%.
To put it bluntly, the Smithsonian agreement also wants to maintain a fixed exchange rate system like the Bretton Woods system.
Unfortunately, western economic experts are not omniscient. They did not expect that the energy of dollar depreciation not only did not release clean, but also became more and more turbulent.
As a result, Britain can no longer carry it. It announced that it would abandon its obligation to maintain a fixed exchange rate under the Smithsonian agreement and implement a floating exchange rate.
As a British colony, the Hong Kong dollar, which has long been linked to the pound, naturally follows the rules.
However, the problem is that the Hong Kong government has done the right thing in governance, but it has chosen the wrong direction economically.
You know, even if the US dollar is no longer "US dollar", it is still the main settlement currency in the world; In contrast, it is OK for the pound to raise its stature, but the Hong Kong dollar is no longer suitable to follow.
Xiangjiang's current financial system is chaotic, which is a clear proof.
Gao Xian, who had long expected this result, has suspended the foreign currency business of its companies for half a month in advance, waiting for the Hong Kong government to correct its mistakes.
Not only is Gao Xian so smart, but those large companies who stand high and look far also made preparations first, and even postponed the convening of the annual general meeting of shareholders to adjust the dividend distribution.
After all, it's always good to have more cash at this point.
From the reaction of big companies, the uncertainty of the Hong Kong dollar and the stock market that will eventually burst will not bring them down.
If you don't even have this insight, big companies don't deserve to be big companies.
The real obstacle can only be a sudden event such as the global oil crisis.
Gao Xian took advantage of this rare spare time to complete his part in the film the great warlord.
It has to be said that Li Hanxiang, the great director, has rich experience. He not only has the method of scheduling, but also greatly reduces the burden of Gao Xian through the clever use of doubles.
With the full support of Shanghua culture, Li Hanxiang completed the great warlord in less than two weeks with the efficiency comparable to the "one Cantonese film in seven days" of Xiangjiang film industry.
Li Hanxiang, who still has a lot to say, gave Gao Xian another idea. "Mr. Gao, the subsea tunnel will be officially put into use soon. We might as well take the opportunity of the opening day to carry out a publicity. For example, you can take a car through the subsea tunnel in the shape of a movie."
In short, Gao Xian also participated in the financing of the Xiangjiang subsea tunnel, which was finally completed. He is a small shareholder.
Therefore, when Li Hanxiang put forward this proposal, Gao Xian was really interested in the excitement on the first day of the opening of the cross harbour tunnel.
Anyway, this publicity activity is the last shift. Gao Xian thought about it, and then happily agreed.
As soon as Li Hanxiang left with satisfaction, ye Licheng, deputy general manager of Gaoyi, quickly walked in, "boss, Xia Dingji, financial secretary, invites you to attend the meeting to discuss how to solve the current chaotic situation of the financial system."
Gao Xian nodded, "they are on the right road of Zhengzhi. They can't walk anymore."
Ye Licheng felt the same way: "foreign capital has become an important driving force for the bull market of Xiangjiang stock market, but when the Hong Kong dollar floats freely with the sterling exchange rate, they don't dare to come in. Now the exchange is deserted."
"It's better for the stock market to fall or make a false fire." Gao Xian joked and asked casually, "what's the Hang Seng Index now?"
"For more than half a month, the Hang Seng Index has continued to fall by more than 100 points, which is not a big range." Ye Licheng sighed, "you know, before the June 18 rain disaster, the Hang Seng index was more than 700 points, which has fully doubled since the beginning of the year."
"Many people outside don't say that this is an inevitable adjustment." Gao Xian said thoughtfully: "when this adjustment period passes, the stock market will break out. Let alone the Hang Seng index return to more than 700 points, I think it's possible to exceed 1000 points."
Ye Licheng said with a smile, "of course, that's great. There are still many customers waiting in line for listing in our Gaoyi listing and issuance department."
Gao Xian thought for a moment and then instructed, "give priority to those companies whose main business is real estate. I'm worried about this bull market. There aren't many good markets left. Don't miss customers."
"I see." Ye Licheng nodded and agreed, "the milk company suddenly entered the real estate industry and almost stimulated the real estate stocks to fly to heaven. We really want to seize this rare opportunity."
……
The meeting convened by the financial secretary of the Hong Kong government, Mr Xia Dingji, invited all the elites of Xiangjiang's industrial and commercial circles. The purpose is self-evident and wants to solicit opinions widely.
Not surprisingly, Gao Xian met Jardine Taiban Henry kaiserk on this occasion.
You know, this is the first time Gao Xian and Henry kesek have met on the same occasion since land launched a hostile acquisition of the milk company.
Originally, even if it is a malicious acquisition, we can do the superficial Kung Fu of business and have a smile when we meet, but because of rumors, it is inevitable to be mixed with personal gratitude and resentment. The eyes looking at each other can be pure talents and strange, not to mention laughing.
After the formal opening of the meeting, the financial secretary, Mr Xia Dingji, sincerely invited everyone present to express their views.
Gao Xian, who often discusses economic issues with Xia Dingji, knows what the other party wants to do, but cares about what.
In short, Xia Dingji wants the Hong Kong dollar to be bound to the US dollar, but the Hong Kong government has only sterling in foreign exchange reserves, not US dollars, so it must sell sterling and buy US dollars; But at the same time, we can't completely abandon the pound, because it hasn't been approved in London, and no matter how we choose, it will take some time.
Seeing the speeches of several people in front, Xia Dingji frowned and Gao Xian simply opened his mouth.
"With all due respect, although London has always stressed that it will ensure the value of the pound, every time the pound depreciates, it abandons Xiangjiang. As a result, Xiangjiang's capital outflow and inflation are dragged down."
"I think the only way to reverse the current chaos in the financial system is to peg the Hong Kong dollar exchange rate to the US dollar."
"Of course, I know the dollar reserves of Zhengfu are not enough."
"To this end, I am willing to lend the $20 million foreign exchange surplus of Gao's group company to Zhengfu for emergency."
"Although this number is a drop in the bucket, it is a reflection of my confidence in leading the people through the immediate difficulties."
After hearing Gao Xian's words, Xia dingkeaton patted the table with joy, "David, good job. I will ask the governor to grant you a justice of the peace as a reward."
The reason why the Hong Kong government announced that the Hong Kong dollar floated freely with the pound in the international foreign exchange market was because the Bretton Woods system further collapsed.Last year, in August 1971, after US President Nixon announced that he would stop the exchange of US dollars for gold, the Bretton Woods system began to collapse.However, even if the Bretton Woods system exposes various unsolvable problems, the western capitalist world does need such a mechanism.Therefore, at the end of last year, the group of ten western countries held a meeting at the Smithsonian Institution in the United States in an attempt to re-establish a new quasi Bretton Woods system.The outcome of this meeting is called the Smithsonian agreement,Its contents generally include:The US dollar depreciated against gold, and the official price of gold per ounce increased from US $35 to US $38;Adjusting the exchange rate, the US dollar depreciated by an average of 10%, and other major European and American currencies appreciated;The allowable fluctuation range of non reserve currency against the US dollar is adjusted from plus or minus 1% to plus or minus 2.25%;The United States abolished the temporary import surcharge of 10%.To put it bluntly, the Smithsonian agreement also wants to maintain a fixed exchange rate system like the Bretton Woods system.Unfortunately, western economic experts are not omniscient. They did not expect that the energy of dollar depreciation not only did not release clean, but also became more and more turbulent.As a result, Britain can no longer carry it. It announced that it would abandon its obligation to maintain a fixed exchange rate under the Smithsonian agreement and implement a floating exchange rate.As a British colony, the Hong Kong dollar, which has long been linked to the pound, naturally follows the rules.However, the problem is that the Hong Kong government has done the right thing in governance, but it has chosen the wrong direction economically.You know, even if the US dollar is no longer "US dollar", it is still the main settlement currency in the world; In contrast, it is OK for the pound to raise its stature, but the Hong Kong dollar is no longer suitable to follow.Xiangjiang's current financial system is chaotic, which is a clear proof.Gao Xian, who had long expected this result, has suspended the foreign currency business of its companies for half a month in advance, waiting for the Hong Kong government to correct its mistakes.Not only is Gao Xian so smart, but those large companies who stand high and look far also made preparations first, and even postponed the convening of the annual general meeting of shareholders to adjust the dividend distribution.After all, it's always good to have more cash at this point.From the reaction of big companies, the uncertainty of the Hong Kong dollar and the stock market that will eventually burst will not bring them down.If you don't even have this insight, big companies don't deserve to be big companies.The real obstacle can only be a sudden event such as the global oil crisis.Gao Xian took advantage of this rare spare time to complete his part in the film the great warlord.It has to be said that Li Hanxiang, the great director, has rich experience. He not only has the method of scheduling, but also greatly reduces the burden of Gao Xian through the clever use of doubles.With the full support of Shanghua culture, Li Hanxiang completed the great warlord in less than two weeks with the efficiency comparable to the "one Cantonese film in seven days" of Xiangjiang film industry.Li Hanxiang, who still has a lot to say, gave Gao Xian another idea. "Mr. Gao, the subsea tunnel will be officially put into use soon. We might as well take the opportunity of the opening day to carry out a publicity. For example, you can take a car through the subsea tunnel in the shape of a movie."In short, Gao Xian also participated in the financing of the Xiangjiang subsea tunnel, which was finally completed. He is a small shareholder.Therefore, when Li Hanxiang put forward this proposal, Gao Xian was really interested in the excitement on the first day of the opening of the cross harbour tunnel.Anyway, this publicity activity is the last shift. Gao Xian thought about it, and then happily agreed.As soon as Li Hanxiang left with satisfaction, ye Licheng, deputy general manager of Gaoyi, quickly walked in, "boss, Xia Dingji, financial secretary, invites you to attend the meeting to discuss how to solve the current chaotic situation of the financial system."Gao Xian nodded, "they are on the right road of Zhengzhi. They can't walk anymore."Ye Licheng felt the same way: "foreign capital has become an important driving force for the bull market of Xiangjiang stock market, but when the Hong Kong dollar floats freely with the sterling exchange rate, they don't dare to come in. Now the exchange is deserted.""It's better for the stock market to fall or make a false fire." Gao Xian joked and asked casually, "what's the Hang Seng Index now?""For more than half a month, the Hang Seng Index has continued to fall by more than 100 points, which is not a big range." Ye Licheng sighed, "you know, before the June 18 rain disaster, the Hang Seng index was more than 700 points, which has fully doubled since the beginning of the year.""Many people outside don't say that this is an inevitable adjustment." Gao Xian said thoughtfully: "when this adjustment period passes, the stock market will break out. Let alone the Hang Seng index return to more than 700 points, I think it's possible to exceed 1000 points."Ye Licheng said with a smile, "of course, that's great. There are still many customers waiting in line for listing in our Gaoyi listing and issuance department."Gao Xian thought for a moment and then instructed, "give priority to those companies whose main business is real estate. I'm worried about this bull market. There aren't many good markets left. Don't miss customers.""I see." Ye Licheng nodded and agreed, "the milk company suddenly entered the real estate industry and almost stimulated the real estate stocks to fly to heaven. We really want to seize this rare opportunity."The meeting convened by the financial secretary of the Hong Kong government, Mr Xia Dingji, invited all the elites of Xiangjiang's industrial and commercial circles. The purpose is self-evident and wants to solicit opinions widely.Not surprisingly, Gao Xian met Jardine Taiban Henry kaiserk on this occasion.You know, this is the first time Gao Xian and Henry kesek have met on the same occasion since land launched a hostile acquisition of the milk company.Originally, even if it is a malicious acquisition, we can do the superficial Kung Fu of business and have a smile when we meet, but because of rumors, it is inevitable to be mixed with personal gratitude and resentment. The eyes looking at each other can be pure talents and strange, not to mention laughing.After the formal opening of the meeting, the financial secretary, Mr Xia Dingji, sincerely invited everyone present to express their views.Gao Xian, who often discusses economic issues with Xia Dingji, knows what the other party wants to do, but cares about what.In short, Xia Dingji wants the Hong Kong dollar to be bound to the US dollar, but the Hong Kong government has only sterling in foreign exchange reserves, not US dollars, so it must sell sterling and buy US dollars; But at the same time, we can't completely abandon the pound, because it hasn't been approved in London, and no matter how we choose, it will take some time.Seeing the speeches of several people in front, Xia Dingji frowned and Gao Xian simply opened his mouth."With all due respect, although London has always stressed that it will ensure the value of the pound, every time the pound depreciates, it abandons Xiangjiang. As a result, Xiangjiang's capital outflow and inflation are dragged down.""I think the only way to reverse the current chaos in the financial system is to peg the Hong Kong dollar exchange rate to the US dollar.""Of course, I know the dollar reserves of Zhengfu are not enough.""To this end, I am willing to lend the $20 million foreign exchange surplus of Gao's group company to Zhengfu for emergency.""Although this number is a drop in the bucket, it is a reflection of my confidence in leading the people through the immediate difficulties."After hearing Gao Xian's words, Xia dingkeaton patted the table with joy, "David, good job. I will ask the governor to grant you a justice of the peace as a reward."
