My fintech empire.

Chapter 1223 [Exchange rate breaks 7 major mistakes? ]

Fang Hong has already found someone to take the blame for the domestic investors who have reaped the profits and transferred wealth out of the cryptocurrency market, and that person is none other than Merrill Lynch.

Three years ago, Merrill Lynch approached Qunxing Capital with a cautious approach and actively sought cooperation. The two parties quickly reached a cooperation agreement. Merrill Lynch gave a large sum of money to Qunxing Capital to manage, with the purpose of luring the snake out of its hole. However, it never expected that Fang Hong would take over the funds at the historical high price of Bitcoin at US$3000.

Merrill Lynch was furious at the time. It was a real shame and humiliation. Moreover, the targeted explosion of a group of listed companies in 2013, which saw their stocks fall by the daily limit for consecutive days, shocked the entire capital market at the time.

At that time, no one expected Fang Hong to be so bold. He did not give any face to the financial tycoons on Wall Street and focused on showing his youthful vigor.

As for Merrill Lynch's entrusted funds, most of them are still stuck at the top of the Bitcoin mountain.

Fang Hong has decided to create a super bull market in Bitcoin next year, and in the process help Merrill Lynch to get out of the money that has been trapped for three years, and let Merrill Lynch make a big profit before leaving the market.

Fang Hong certainly did not give such a huge benefit to Merrill Lynch for nothing, but he wanted Merrill Lynch to take the blame and make Merrill Lynch the biggest obvious beneficiary of the 2017 Bitcoin bull market, so that those runners and colonizers would believe that it was Merrill Lynch on Wall Street that reaped the benefits.

……

In December, after Fang Hong had finalized a series of decisions, Tian Jiayi instructed his arrangements to be carried out in an orderly manner as planned. The huge organization of Qunxing Capital began to operate and fully implement his will.

The first is the encrypted digital currency market. As we entered December, the price of Bitcoin further strengthened, breaking through the year's high and reaching the $12 mark. To reach its historical high, Bitcoin still needs to more than double its current price.

However, in the next year or so, the price of Bitcoin will not only increase by two times, but by more than thirty times.

In addition, North America is also making orderly arrangements to dig an epic sinkhole for the Run people. The priority of this matter is not very high because it takes a long time and it is not a short-term plan. Just take it slow. Taking it slow is the fastest.

As we enter the last month of the year, the volatility in the financial markets has clearly intensified, and many people can feel that this is a moment of great change.

On December 12, a breaking news caused an uproar in the capital market. People found that the overseas search engine Google showed that the offshore RMB exchange rate had "plunged" to 6, which scared overseas students and purchasing agents.

The search engine Google shows that the offshore exchange rate of the US dollar against the RMB has plummeted to 7.48, while the offshore exchange rate data of the US dollar against the RMB in terminals such as Bloomberg and Wind, as well as search engines such as Yahoo, Lingjing Search, and Baidu, remains at 6.88.

As a price factor affecting imported and exported goods, exchange rate has an important impact on imports and exports.

Just as the market was in an uproar, a few hours later, the situation was quickly reversed. Google search engine reported that the offshore RMB exchange rate "breaking 7" was a "misunderstanding". Many people breathed a sigh of relief when they saw that it was a false alarm, especially overseas students and purchasing agents.

Most people are talking about the "Oolong" incident itself, but those in high-level circles or who have deeper access to information know that this is by no means a "Oolong", but a new round of offensive launched by international short-selling forces.

Google's RMB exchange rate error occurred at a time when the RMB was continuing to depreciate and approaching the psychological barrier of 7. It was a hoax and misleading incident intended to create panic.

Fang Hong had no psychological fluctuations when he saw the news of this incident. From another perspective, the opponents' efforts at the public opinion level also showed that they did not have many real killer moves in their hands.

At the same time, the A-share market also ushered in a period of peaking. As time went on, on Monday, December 12, the A-share market, which was affected by multiple negative factors in recent times, saw a sharp drop across the board at the opening of the new Shanghai and Shenzhen three major trading markets.

First, the barbaric takeover of insurance funds was subject to strong supervision, causing a number of concept stocks of takeover to plummet again, seriously dampening market sentiment; secondly, the recent acceleration of IPOs in the two cities is equivalent to the realization of the registration system, and the highly valued ChiNext has suffered a blow; in addition, the capital market is tight at the end of the year, and the central bank continues to net withdraw funds; and there is a high probability that the Federal Reserve will raise interest rates this month, and the A-share market will also be under pressure.

But the most important factor is the renewed turmoil in the foreign exchange market. Smart money in the investment circle has already smelled something unusual.

Some funds have begun to shrink for risk aversion, while some funds have tasted the sweetness of following the crowd in the foreign exchange market at the beginning of the year, and are now gearing up to free up funds to make a fortune in the foreign exchange market.

Today, the A-share market has been fluctuating downward since opening, and capital is not willing to enter the market. The New Securities 50 Index has broken through historical highs one after another and also entered a period of adjustment today. We are currently in a turbulent time, and many people have chosen to be cautious.

Among the three major trading markets in Shanghai and Shenzhen, the Shenzhen Stock Exchange suffered the worst drop, and the ChiNext Index was particularly severe, becoming the hardest hit area of ​​the crash, falling below the 2000-point mark, setting the largest single-day drop and a new low in half a year, and was surpassed by the New CSI 50 Index in absolute points.

As of the closing, the three major trading markets all plummeted, with the Shanghai Composite Index plunging -2.47% to 3152.97 points; the Shenzhen Component Index plummeting -4.51% to 10302.85 points; the SZSE 50 Index plummeting -3.36% to 2034.19 points; and the ChiNext Index plummeting -5.50% to 1984.39 points.

The combined transaction volume of the three major trading markets is close to one trillion yuan.

In the following days, the decline of the A-share market slowed down, but overall it maintained a volatile downward trend.

……

December 12th, Jingxinju Villa.

"The Fed's interest rate hike has come to fruition today." Tian Jiayi returned to the villa to find Fang Hong and reported to him: "Last night in North America, the Federal Reserve announced its interest rate decision, announcing a 25 basis point rate hike, raising the federal funds rate target range to 0.5% to 0.75%. The resolution statement was passed unanimously. Once this news was disclosed, the US dollar index soared and rushed above the 103 mark, further setting a new high in 14 years."

Fang Hong said calmly, "We can just continue the short position strategy for the US dollar."

Tian Jiayi said: "The team of traders below is executing the opening according to your decision. Oh, by the way, there are two more things. One is that the SGX stabilization fund should be implemented by the end of the year. The other is that the relevant matters for the preparation of the listing of agricultural products supermarkets are ready and are expected to be listed on the SGX in January next year."

Fang Hong nodded: "Just do as I say."

……

(End of this chapter)