Who is the strongest backing of Hong Kong? Don’t forget the “war” without gunsmoke in 1998!

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Original: housha source wechat official account: housha has been authorized to reprint

July 1st, 2022 is the 25th anniversary of Hong Kong’s return to the motherland.


Looking back 25 years ago, how many Chinese people were waiting in front of the TV to meet that exciting historic moment – the MI Zi flag slowly fell and the five-star red flag slowly rose.

Many netizens were not born in 1997. In fact, in this year, in addition to the return of Hong Kong, there was a major event in the world – the Asian financial crisis.

At that time, after harvesting Southeast Asia and South Korea, the speculators led by Soros, an international financial giant, put the “battle of the end” on Hong Kong, China.


August 1998 was a special period for China. The mainland is facing the severe challenge of flood fighting and disaster relief. The military and people along the Yangtze River are fighting the flood day and night to ensure safety, life and production.

Also in August, Hong Kong, China, and international speculators had a soul stirring “war” without gunfire and gunfire.

With bloody Booties from Southeast Asia and South Korea, Soros confidently commanded his “financial group army” to advance to Hong Kong.

Soros drew a conclusion based on the economic recession in Southeast Asia for two consecutive years and said proudly: Hong Kong is in a recession. We really want to impact Hong Kong’s financial market, and we will also get rich profits.


George What kind of person is Soros? He is a Hungarian Jew. In 1947, at the age of 17, Soros left Hungary and immigrated to Britain, where he worked in Securities and banking.

In 1956, he came to Wall Street to apply for a job. In 1961, Soros married an American woman (German) and became an American citizen.

In 1969, he received a sum of $4million from the Jewish group and established the first “hedge fund”. In 1971, Soros partnered with James Rogers to establish the “Soros Fund”. In 1979, Soros renamed the “Soros Fund” as “quantum fund” in New York.

In 1992, he was successful in sniping at sterling and received $2billion. He was called “the man who broke the Bank of England” by the economist, and has become a real financial tycoon since then. In the eyes of some people, he is a God, but in the eyes of more people, he is a devil.

His funds are mainly arbitrage speculation, good at raids, Blitzkrieg, careful planning, aggressive, which is determined by his speculative nature, generally do not fight positional warfare, protracted war.

Wolves eat sheep

The main reason why Soros was unable to purge the Southeast Asian financial market in the early 1990s was “the government’s control of the capital market”.

Since 1993, the United States has used political power to promote some Asian countries to “reform” their financial policies.

At the same time, the world bank issued the report “East Asian Miracle: economic growth and public policy”, while the IMF (International Monetary Fund) called for, guided and encouraged Southeast Asia to implement the financial opening policy. All countries (except Malaysia and Vietnam) responded and abandoned the capital control policy.

This cleared the way for Soros, and the financial institutions in these countries borrowed heavily, and the investment boom of private funds rose from wave to wave.

In 1997, the economy of Southeast Asia was extraordinarily hot, and even the banking industry was frantically borrowing dollars to join the ranks of speculators. Thailand’s financial market was completely opened, and 95% of its external debt was short-term loans (hot money), so the Thai baht became Soros’ first prey.

In March, 1997, after Soros started, various arbitrage fund institutions sold the Thai baht one after another, and the price ratio between the US dollar and the Thai baht fell as low as 1:26.7.

Thailand used $12billion in foreign exchange to rescue the market, resulting in a sharp increase in speculators’ transaction costs, and Soros lost $300million, but he knew that Thailand would be out of business after the third board axe.

In late June, Soros attacked the Thai baht again, and this time Thailand could not withstand it. On July 2, the Thai baht fell, and the linked exchange rate system, which had been maintained for 13 years, was changed into a floating exchange rate system. The Thai baht fell all the way to $1: 32.63.

Soros took away $4billion from Thailand, twice the income of the sniper pound.

When the baht fell, it was like a fat sheep screaming. Other fat sheep would only run around, rather than unite to deal with it. It became easier for wolves to eat sheep.

Currencies of Southeast Asian countries plunged, followed by bloody South Korea.

However, Soros’ surprise measures are difficult to work against the yen, the RMB and the new Taiwan dollar. These are protracted wars. So, after Soros and his younger brothers put the gold and silver treasures in gunny bags, they concentrated on dealing with Hong Kong.

Hong Kong defence

Soros began selling Hong Kong dollars in July 1997. He was testing whether Hong Kong dollars could be broken through.

However, Hong Kong, which has just returned to the motherland, has the strongest backing – the Central People’s government, which is essentially different from the British rule.

Soros underestimated the determination of the Central People’s government to defend Hong Kong, which was the main reason why his blitz was defeated.

Soros made careful arrangements before attacking Hong Kong, but Hong Kong did not have enough sense of crisis in 1997 and still adhered to the policy of “active non intervention” (maintaining a free capital market).

Starting from October 20, 1997, Soros’ storm entered Hong Kong, and then attacked Hong Kong exchange, Hong Kong stocks and Hang Seng Index Futures Markets for three consecutive times in January and June 1998.

Soros generally only attacks the foreign exchange market of the target country in Southeast Asia, while it targets the foreign exchange market, stock market and futures index in Hong Kong.

If Hong Kong only stays in foreign exchange, Soros can make a profit in the stock market and futures index; If we only stick to the stock market, it will be difficult to protect foreign exchange, so the difficulty of Hong Kong’s financial defense is much higher than that of Southeast Asia.

On August 7, 1997, the Hang Seng Index hit a high of 16800 points. After Soros’ first attack in October, Hong Kong stocks plummeted to 9000 points. The two attacks before August 1998 once again plunged Hong Kong stocks. However, the foreign exchange market was preserved.

Before the decisive battle in August, Soros had robbed HK $4.5 billion through the stock market, and Hong Kong’s foreign exchange market was also under great pressure. The stock market was volatile, and even the property market was seriously impacted.

Some Hong Kong people have been unable to cope with the financial crisis, and tragedies of jumping from buildings and burning coals have occurred from time to time. For example, Bela Vista villa, a bungalow resort building located in the central part of Cheung Chau in the outlying Island District of Hong Kong, became a suicide “resort” for victims of the financial crisis at that time. The media headlines often read:

Dongdi Xiaozhu once had a fake house. A man and a woman burned charcoal and committed suicide

Dongdi xiaozhugang university female researcher was torn up

Dongdi Xiaozhu 06 underground couple burned charcoal to death

Dongdi Xiaozhu man burns charcoal to death

Dongdi Xiaozhu two men took medicine, one died and one was in critical condition

A woman killed herself by burning charcoal in Dongdi Xiaozhu

The female researcher in room a, building C1, vacation house 06, Dongdi Xiaozhu was killed

A woman in red in Dongdi Xiaozhu hanged her neck after killing her son


Later, the Hong Kong media controlled such suicide reports for fear of causing social panic and imitation.

In August 1998, the Hang Seng index once fell to 6660 points; Hong Kong real estate prices plummeted nearly 50%.

One of the prerequisites for Soros’ withdrawal is to hit the Hang Seng Index to 5000 points. They even threatened that Hong Kong is the best ATM.

Hong Kong is facing the heaviest economic blow since its opening as a port, and it is also the most dangerous moment in the world’s fourth largest financial market.

At this time, the State Council sent a five member team to Hong Kong (called the “investigation team”, headed by Li Xiaoxi, then director of the macro Department of the Research Office of the State Council). They first went to the “affected countries” in Southeast Asia to study Soros’ attack methods on the ground, and then went to Hong Kong to fight Soros together

At the same time, the Chinese government firmly announced that the RMB would not depreciate, and repeatedly said that there was a public opinion war behind the financial war. Because before, Soros spent a lot of money to buy some Chinese media, constantly concocting rumors of RMB devaluation, in an attempt to confuse public opinion.

Then China, Japan and Southeast Asian countries (representatives of poor and middle peasants complaining) issued a joint statement of the central bank: they are determined to jointly crack down on Asian currency speculation.

China is the leader and Japan is the assistant. It is clear to fight a protracted war. If Soros fought a long-term war in Hong Kong, his “great reputation” might be destroyed here.

The central government’s attitude is: “as long as Hong Kong needs it, the central government will provide reserves to help fight speculators.”

At this time, Soros realized China’s determination to resolutely defend Hong Kong’s financial market. On August 5, he sold more than 20 billion Hong Kong dollars and launched a general attack.

On August 14, the Hong Kong SAR government announced that the government would enter the stock market and futures market at the same time.

This means that the “active non intervention” policy has changed. Hong Kong will comprehensively confront speculators in the field of stocks and futures indexes, hold the stock market, and never let speculators harvest on bearish futures indexes.

The confidence of the Hong Kong government to fight back came from the resolute support of the central government, which was not only the arrival of the five member group, but also a large number of Chinese capital entering the market.

August 28 is the settlement day of Hang Seng index futures contract. A large number of futures orders of international speculators must be sold when they expire.

If the stock market and foreign exchange market can continue to break up from the lowest point of 6600 on this day, Soros will suffer heavy losses. On the contrary, if the Hong Kong government fails to rescue the market, the losses will be even heavier.

After the opening at 10 a.m., the transaction volume rose all the way. No matter how much they sold, the SAR government received all the orders.

At 4 p.m., the Hang Seng Index, futures index and transaction amount on the display screen were locked at 7829 points, 7851 points and 79 billion respectively, which was an exciting number.

On the same day, the Hong Kong SAR government announced its victory to repel international speculators.

Soros did not expect that Hong Kong would change its policy of “active non intervention” and ultimately failed.

Therefore, he is still swearing today, saying that China is “economically unfree”.

Is he blind? Can’t he see how the U.S. government intervenes in the economy and the market? The United States is always on “national security”, and China has no national security? The 1998 Hong Kong Financial defense war has proved that the security of Hong Kong is part of China’s national security.

Without the backing of the motherland, once Hong Kong’s economy collapses like Southeast Asia, Soros should really laugh up. Will Americans care about the life and death of Hong Kong people?

But some people regard man eating wolves as their relatives! Treat your loved ones as enemies! Who blindfolded their eyes, ears and conscience?

25 years have passed, and Hong Kong should become mature, so that those scum who bully others and eat inside out have no place to stand.

China is a big family. The state selflessly helps Hong Kong. How much do you expect from Hong Kong? Of course not, because some things cannot be measured by money.


Hong Kong will always be China’s Hong Kong, and Hong Kong people will always be Chinese!

I wish Hong Kong a better tomorrow and common prosperity with the motherland!

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