My fintech empire.

Chapter 1224 [A familiar scene reappears]

At this moment, Fang Hong looked at the current market conditions of the SGX. He stared at the latest K-line trend of the SGX 50 Index and instructed: "After this round of turmoil in the foreign exchange market is over, the adjustment of the SGX 50 Index will also end and continue to rise. The overall adjustment range will be controlled at around 10 percentage points. If market funds are slow to react, let the stabilization fund raise some funds to guide funds to continue to go long."

Tian Jiayi nodded slightly: "Yes, okay."

In the last dozen or so trading days of the year, although the A-share market did not stop falling and was still declining, there was no panic sell-off, let alone the brutal sell-off like the circuit breaker market at the beginning of the year.

This is actually a very important change. Many people know about it now, especially some well-informed people who know very well that at this moment, Qunxing Capital has once again started a new round of competition with its counterparts in the offshore RMB exchange rate market. This is almost the same as at the beginning of the year, but when similar things happened at the beginning of the year, the capital market was in panic.

However, the panic at the beginning of the year has not been repeated. A big reason for this is that Qunxing Capital defeated the international short sellers in the foreign exchange market at the beginning of the year. Everyone knows that Qunxing Capital is now a big brother. With this giant in charge, we must not easily follow the trend of overseas short-selling capital, nor can we easily be bearish on the market.

After all, at the beginning of the year, many people followed the trend and shorted the RMB, but they were ruthlessly strangled by Qunxing Capital. I don’t know how many funds were liquidated or had their positions squeezed, and there were even many incidents of failures.

On the contrary, some funds that followed Qunxing Capital made a lot of money at that time. Now many funds are more inclined to Qunxing Capital, but they still adhere to the principle of "helping whoever can win".

However, Fang Hong doesn't care about these fence-sitter funds. They are now more inclined to Qunxing Capital. To some extent, this also shows that the current trend has been on his side from the beginning, which is different from the time at the beginning of the year.

In fact, Fang Hong does not really need those fence-sitters to help him to promote his own ideas and wave the flag. Instead, he hopes that these people can follow the trend and go to the opposite side, because only in this way can he reap the rewards.

But this group of people are very cunning, and they won't release the eagle until they see the rabbit. Fang Hong can only hold his nose and give up.

But it doesn't matter. The limited gains in this battlefield were also within his expectations. The highlight of 2017 was the cryptocurrency market. Fang Hong had already begun to plan to drive the large-scale mainland funds that fled overseas into the cryptocurrency channels.

If they don't jump into this pit, they will jump into the pit of cryptocurrency. A step further, even if they successfully avoid the pit of cryptocurrency, there is a bigger epic pit waiting for them, and one pit is bigger and deeper than the other.

Even if Monkey King has seventy-two transformations, he cannot escape from Tathagata's palm.

……

As of Wednesday, December 12, the offshore RMB exchange rate closed at around 28.

But just around 23 p.m. today, the well-known financial data terminal Bloomberg once again made a blunder about the RMB "breaking 7". The news that "the onshore RMB exchange rate against the U.S. dollar fell below 7" caused shock and panic on the Internet.

According to reports, the onshore RMB broke through the psychological barrier of 7 median against the US dollar, hitting a low of 7.0121 yuan, the lowest since April 2008.

Less than half an hour after the news came out, the official Weibo account of the central bank issued an urgent clarification: the RMB/USD exchange rate for the first interbank foreign exchange transaction in China was running smoothly in the range of 6.9500 to 6.9666 yuan. However, some irresponsible media reported that "the onshore RMB/USD exchange rate broke through the psychological barrier of 7 integers". We condemn this behavior and reserve the right to further pursue the responsibility.

The news that the RMB exchange rate broke through 7 against the US dollar was soon confirmed to be a "false alarm". Some researchers issued a research report overnight saying that the onshore transaction price did not break 7. What Bloomberg said about breaking 7 was just a quotation, and there was no transaction, so it was not a break of 7 in the actual sense.

However, any discerning person knows how ridiculous this argument is, and it is even an insult to people's intelligence. If we follow this logic, then if someone quotes 8 or 10, does that mean it has broken 10?
Generally speaking, "broken" refers to the actual transaction price. It is nonsense to talk about the quotation here.

Two blunders occurred consecutively within one month. Anyone with some basic logical thinking ability should understand that someone is deliberately creating panic, and their motives are obvious.

Two days later, on December 12, the offshore RMB exchange rate depreciated further to around 30, and breaking 6.987 seemed just around the corner.

At the same time, foreign exchange reserves are continuing to drain, and are almost one step away from falling below the 3 trillion US dollar mark.

Panic sentiment in the market has also risen. Many people are worried that the renminbi will quickly fall below the psychological barrier of 7 yuan, which may form a vicious cycle of rapid depreciation of the exchange rate → strengthening of depreciation expectations → accelerated capital outflow → continued depreciation of the exchange rate, leading to the panic depreciation at the beginning of the year.

At this time of year, as 2016 came to an end and the new year of 2017 officially began, many people in the investment circle began to pay attention to Fang Hong’s Weibo, because according to past practice, he should post a long Weibo article on the first day of the new year.

However, this time it was beyond people's expectations. God K did not post anything on New Year's Day, and there was no movement on his personal Weibo account.

This has also triggered a lot of speculation among people, and various analyses have appeared on the Internet.

In fact, most of the fierce analysis by those analysts on the Internet are just over-interpretations made by their own imaginations. The real reason is that Fang Hong forgot about it. He has been busy recently and has no time to post on Weibo. It's that simple. He simply forgot about it. That's all.

But because he is an extraordinary tycoon, people outside don't think so. They are more willing to believe that there is some other hidden story. The analysts try to link it to some current events. However, no one analyzes that God K may have simply forgotten.

……

On January 1, just after the New Year's Day holiday, the foreign exchange trading team under Qunxing Capital received the latest instruction from the big boss and officially started to strike hard today.

People from all walks of life outside and all kinds of funds in the market have seen a familiar scene in today's offshore RMB market.

The overnight RMB lending rate soared sharply by +18%. When many traders saw this situation, they almost unanimously recalled some scenes in early 2016 and couldn't help but exclaimed: "Another trick?"
When all the players saw this scene, they all concluded that it was definitely Qunxing Capital that was exerting its strength at this moment, and they were all very familiar with the moves.

Just as the overnight lending rate fluctuated abnormally and soared sharply, the RMB exchange rate almost stopped falling and rebounded at the same time, quickly appreciating by 100 basis points.

As time went by, the overnight RMB lending profit continued to soar, and soon broke through +50%. The short sellers in the market seemed to have triggered PTSD, and surrendered without any resistance. Even the trading team members of Qunxing Capital were surprised. They were preparing to have a mid-lane confrontation with the short sellers today...

Unexpectedly, the opponent seemed strong on the outside, but was weak on the inside, and broke like paper at the slightest touch. The fierce battle between bulls and bears that I had imagined would break out today did not happen.

This is reflected in the market where the offshore RMB exchange rate soared by more than 1,000 basis points today and showed a unilateral appreciation trend throughout the day without encountering any strong attack from the short sellers.

……

(End of this chapter)