Golden Spoon Investment Portfolio - Chapter 353

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This chapter was translated by Lunox Novels. To support us and help keep this series going, visit our website: LunoxScans.com
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353. Watching them fight like this isn’t so bad, actually.

Seok-won arrived at the office as usual in the morning, handing over his linen jacket as he spoke.

“An iced Americano, please.”
“Of course. Strong, just the way you always have it, right?”
“You really do know my tastes well.”

Seok-won chuckled lightly, and Na Seong-mi smiled back with a slight bow.

“Understood.”

Na Seong-mi gave a brief reply, carefully hung the jacket in the closet, and stepped out.
In the meantime, Seok-won, now seated in his chair, looked at Han Ji-sung standing before his desk and asked.

“You mentioned that Representative Choo Tae-guk plans to step down as the Democratic Justice Party’s floor leader today, right?”

Han Ji-sung, impeccably dressed in a suit and holding a leather diary in one hand, answered immediately.

“Yes. It appears he will relinquish his position as party leader shortly after announcing his candidacy in the upcoming Democratic Justice Party presidential primary.”
“While several candidates have announced their bids, it’s safe to say the Democratic Justice Party’s presidential nominee is essentially decided as Representative Choo Tae-guk.”
“Since the Blue House is backing Representative Choo, barring any major surprises, that seems highly likely.”

The media also regarded Representative Choo Tae-guk as the most likely presidential contender and he was receiving considerable spotlight.

“The New Era National Council has already settled on Kim Jae-chun as chairman, and by the end of this month at the latest, we should have a rough matchup.”

Then Han Ji-sung asked, gauging the mood carefully.

“Should we conduct a favorability survey on the leading candidates?”

Since who became the next occupant of the Blue House had significant impact on the business community, at this time of year fierce political maneuvering erupted not only in political circles but among corporations as well.
However, Seok-won, who knew that an enormous tsunami was about to sweep over South Korea and render everything meaningless, shook his head without the slightest hesitation.

“The outcome is already decided, so there’s no need.”
“Pardon?”

Han Ji-sung’s expression grew puzzled, but Seok-won offered no further explanation and simply moved past it, broaching a different topic.

“When is Manager Choi expected to return to the country?”

I wanted to ask who would become president, but I suppressed my curiosity and answered instead.

“He said he plans to wrap up his affairs in the United States and return sometime next week.”
“Make sure he has everything he needs during his stay here so he doesn’t face any inconveniences.”
“Yes, understood.”

I gave a slight nod and leaned back in my chair.

“You can go now.”

Han Ji-sung bowed lightly and turned to leave the office.
As Han Ji-sung departed, Na Seong-mi entered in his stead, setting down an iced Americano in a glass on my desk.

“Thank you.”
“Don’t mention it.”

Once Na Seong-mi also left the President’s Office, I found myself alone, taking a sip of the refreshing Americano while checking the Bloomberg terminal installed nearby to see if there were any news items I needed to monitor in the domestic and international stock markets or foreign exchange markets.
Just then, my phone rang and I picked it up.

“Hello.”
[Boss, it’s me. Are you watching the Tokyo futures exchange market movements right now?]

Sensing something amiss in the voice, I furrowed my brow and asked.

“What’s happened?”
[Hong Kong dollar sell orders have been flooding in since the opening. It appears the Quantum Fund’s attack has begun.]

I immediately moved the mouse and pulled up the Tokyo Foreign Exchange Market trading window, checking the Hong Kong dollar exchange rate.

[USD 1 : HKD 7.9]
“…!”

Indeed, the exchange rate that normally remained fixed at 1 dollar to 7.8 Hong Kong dollars through the peg system had shifted, albeit slightly, beyond the normal exchange rate band.
My eyes gleaming, I tightened my grip on the phone and asked.

“How much selling volume are we looking at?”
[We’ve already exceeded 6 billion Hong Kong dollars, and the amount continues to grow rapidly.]

Landon Shore added immediately after responding.

[Ah, and just a moment ago, Hong Kong dollar selling has begun in the spot market as well.]

Just as Landon Shore had said, breaking news of massive Hong Kong dollar selling appeared on the Bloomberg terminal.
At the same time, seeing the Hong Kong dollar sell orders surge, Seok-won immediately recognized that other hedge funds were beginning to join in.
However, having already anticipated such circumstances and made all necessary preparations, he remained composed without a hint of panic.

“George Hamilton shows no mercy, attacking right on Hong Kong’s handover day.”
[The first day is the most chaotic and vulnerable, making it difficult to respond properly to an attack. Isn’t this the optimal timing?]
“That’s true enough.”

Leaning back in his chair, Seok-won gazed at the monitor and continued.

“For now, let’s not engage in the fight as planned and simply observe the situation.”
[Understood.]

As soon as the call ended, a beep sounded, and Na Seong-mi’s voice came through the speakerphone on the desk.

[Manager Choi Ho-geun is calling.]

Seok-won immediately extended one arm and pressed the button while speaking.

“Put him through.”
[Yes.]

Shortly after, the phone rang with a sharp trill, and Seok-won picked up the receiver at once.

“I was just about to call you—perfect timing.”
[Chairman, it appears the attack on the Hong Kong dollar has begun.]

Seok-won responded calmly to Manager Choi Ho-geun’s excited voice.

“I’m aware. And since this is what we anticipated, there’s no need for excitement.”

Seok-won moved the mouse and brought up the Hong Kong Hang Seng Index price chart on the monitor.

“What’s the status on selling the Hang Seng Index futures?”
[We’re continuing to sell, but buy orders have completely dried up ever since the attack on the Hong Kong dollar began.]

Seok-won nodded slightly, as if he’d expected as much, and spoke.

“Once the exchange rate starts wavering, foreign investors spooked by the uncertainty will pull their capital, which will become a headwind for the stock market.”
[I share that assessment. Unless prices drop significantly—like what happened in Malaysia last time—investors won’t rush to buy.]

Seok-won tapped the desk lightly with his fingertip, lost in thought for a moment, before speaking again.

“Use 12,000 as the line in the sand. Sell as many futures as you can.”
[The index is currently at 16,000. Are you predicting a collapse of more than 25%?]

Manager Choi asked in surprise.

“45%, or possibly even a 50% crash from here.”
[That’s….]

Manager Choi involuntarily swallowed hard as I predicted a catastrophic collapse far beyond his expectations.
A stock market falling by half meant nothing less than the complete economic destruction of that nation.

[Surely China won’t just stand by and watch Hong Kong collapse like that?]

Seok-won’s voice grew cold as he posed the question back.

“Do you think China will help Hong Kong?”
[The city has been returned from Britain and is now Chinese territory, so wouldn’t they naturally intervene? If China, with its massive foreign exchange reserves from exports, steps in, the market could stop its collapse and even rebound.]

Manager Choi’s reasoning was perfectly sound.
The Chinese government wouldn’t want Hong Kong to crumble immediately after its return, and most market participants shared this same logic.

“Do you think George Hamilton and the hedge funds don’t know that?”

Manager Choi hesitated for a moment before responding.

“They’re attacking Hong Kong precisely because they’re certain China won’t be able to intervene despite being behind the scenes. That’s what I believe as well.”
[You’re saying China will just stand by and watch Hong Kong collapse?]

Manager Choi let out a gasp of disbelief.

“It would be more accurate to say we have no choice but to watch and wait.”
[What do you mean…]

As the Hong Kong stock market opened right on cue and plummeted sharply under the assault of currency speculators, Seok-won continued speaking.

“It’s true that China holds the world’s largest foreign exchange reserves at 126 billion dollars. But they must be anxious that if they hastily deploy dollars to aid Hong Kong, they could inadvertently become targets of hedge fund attacks themselves.”
[…!]

Finally, as Hong Kong authorities intervened, someone was rapidly absorbing the flood of sell orders pouring out across futures and spot markets, pushing the Hong Kong dollar back within its normal trading band.

“Having witnessed hedge funds swarming like locusts across Thailand, Malaysia, and Indonesia, devastating Southeast Asian nations without resistance, China will be preoccupied with defending itself. In short, they simply don’t have the capacity to worry about Hong Kong.”
[So that means…]

Only then did Manager Choi grasp the unfolding situation and let out a low murmur.

[Hmm. Now that you mention it, that could very well be the case.]
“Of course, even without China’s assistance, Hong Kong’s reserves are formidable. It won’t crumble helplessly like those Southeast Asian nations before it.”

Seok-won shrugged as he spoke.

“However, while Hong Kong authorities battle the hedge funds, the stock market will inevitably be ravaged.”
[So that’s why you told us to short Hang Seng index futures instead of the Hong Kong dollar.]

An exclamation escaped Manager Choi’s lips.

“Why wade into the mire when there’s an easy way to profit?”
[Ha ha. You’re absolutely right.]

As Seok-won’s lips curled into a smile, Manager Choi’s laughter came through the receiver.

“As I just explained, while investors still in the market expect China to intervene once Hong Kong shows signs of wavering, maximize our short positions in Hang Seng index futures.”
[Yes. Understood.]

After ending the call and setting down the receiver, Seok-won immediately checked a new breaking news alert that appeared on his Bloomberg terminal.
There was an emergency statement from the Financial Secretary of the newly established Hong Kong Special Administrative Region government, which had replaced the dissolved Governor’s office after Hong Kong’s return to China.

[Currency speculators have launched attacks aimed at maliciously breaking the peg system between the US dollar and Hong Kong dollar that has persisted for decades. However, the Hong Kong government will resolutely deploy all available means to prevent this. We make it abundantly clear that attempts to profit by devaluing the Hong Kong dollar will absolutely fail and will instead result in massive losses. We strongly urge an immediate cessation of such activities.]

Immediately following, a breaking news alert announced that the Hong Kong Special Administrative Region government was dramatically raising its short-term interest rate from 6% to 7.5%—a 1.5% increase.

“As expected, they’re responding remarkably fast despite targeting such a vulnerable position.”

Checking the monitor, I saw the Hong Kong dollar’s decline pause following the breaking news of short-term interest rate hikes.
Instead, the Hang Seng Index’s losses widened even further, already plummeting over 100 points and breaking through the 16,100 mark.

“Since they’ve counterattacked, it’s George Hamilton’s turn now.”

Seok-won sipped his iced Americano and leisurely watched the battle unfold on the other side of the monitor.
The Hong Kong dollar exchange rate fluctuating rapidly up and down by the second, and the Hang Seng Index plummeting vertically in an endless free fall—the movements were utterly captivating.

“Watching a fight like this isn’t so bad after all.”

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This chapter was translated by Lunox Novels. To support us and help keep this series going, visit our website: LunoxScans.com
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