On September 26, 1983, the Hong Kong dollar exchange rate fell below the lowest point of 1 US dollar to 10 Hong Kong dollars on the same day, and then rebounded rapidly. Moreover, the exchange rate stabilized between 1 US dollar and 8.1 Hong Kong dollars and 8.8 Hong Kong dollars. In the following period, the exchange rate between the US dollar and the Hong Kong dollar did not fall below the 1 US dollar to 9 Hong Kong dollars again. Even if the linked exchange rate system was not implemented, the Hong Kong dollar gradually stabilized.

Of course, the problem is that most foreign investors are still in a wait-and-see state and refuse to accept the Hong Kong dollar. Therefore, the implementation of the linked exchange rate system is essentially a system to determine the risk of a stable exchange rate of 5 and then violent fluctuations.

If we really consider the current trading price of the foreign exchange market, the linkage exchange rate between the Hong Kong dollar and the US dollar should be selected between 8.1 and 8.8. However, how to choose a fixed exchange rate depends on this. Banks in Hong Kong, including HSBC, will suffer huge losses. It is precisely because of this that the exchange rate between the Hong Kong dollar and the US dollar should be a little higher than the current market trading price.

On October 15, after continuous negotiations between the Hong Kong government and Hong Kong financial institutions and representatives of large enterprises, of course, the bank's voice, especially large banks such as HSBC, Standard Chartered, and Bank of China, have more voice than other institutions. After that, the Hong Kong government officially announced a new exchange rate system - abolishing the floating exchange rate system implemented since 1974, and resuming the linked exchange rate system pegged to the US dollar. In the new linked exchange rate system, the exchange rate between the US dollar and the Hong Kong dollar is fixed at 1 US dollar to 7.8 Hong Kong dollars, and when the bank issued the Hong Kong dollar,

The US dollar must be paid to the government-established foreign exchange fund at a fixed exchange rate as reserve for issuing Hong Kong dollars. The foreign exchange fund issues a certificate of liability to the banknote issuing bank to agree to issue a Hong Kong dollar. If the Hong Kong dollar exits the circulation field, the banknote issuing bank will return the liability certificate to the foreign exchange fund and then retrieve the equal amount of US dollars. For other financial institutions, if they want to conduct exchange and settlement business between the US dollar and the Hong Kong dollar, they need to set up an account at the banknote issuing bank, which is also implemented at a fixed exchange rate of 1 US dollar to 7.8 Hong Kong dollars.

Currently, the banknote issuing banks in Hong Kong are mainly HSBC and Standard Chartered. As for Bank of China, it will not be until 1994 that it will become the third banknote issuing bank. After all, the banknote issuing business does not seem to make money, and it cannot make a penny of interest, but instead occupies foreign exchange funds. But in fact, the Hong Kong dollar issued cannot be recovered 100%. The loss of Hong Kong dollar cash by customers is actually equivalent to the implicit profit of the banknote issuing bank. In addition, issuing banknotes is also an affirmation of strength, which can directly enhance its credit, and credit enhancement will also be converted into business and profits. Just imagine, every Hong Kong dollar issued issuing, with the name of a certain bank. Long-term use of banknotes will naturally enhance consumers' recognition of the bank's strength and reputation.

After the exchange rate system is determined, the new entrepreneurial department is undoubtedly the big winner in the change of Hong Kong's issuance policy.

Whether it was the time to start making arrangements a year ago, exchanging most of the company's cash for the dividends of the Hong Kong dollar depreciation enjoyed by the US dollar, or buying the Hong Kong dollar at the bottom since September and enjoying the dividends of the Hong Kong dollar appreciation, this contributed considerable profits to the company in the year.

At the same time, foreign institutions have gradually restored their confidence in the Hong Kong dollar and have successively announced their acceptance of Hong Kong dollar settlement.

On the one hand, because the exchange rate of the Hong Kong dollar is tied to the US dollar, we no longer worry about the exchange rate fluctuations of the Hong Kong dollar. At the same time, issuing the Hong Kong dollar requires 100% of the US dollar as reserve. In theory, there is no possibility of a run on the bank and foreign exchange funds. Therefore, through the settlement account opened by the bank, theories can theoretically convert the Hong Kong dollar into US dollars at any time and anywhere.

It is precisely because of this that the Hong Kong dollar has gradually approached the official exchange rate in the foreign exchange trading market in Hong Kong shortly after the implementation of the exchange rate system. After all, there is room for risk-free arbitrage whether it is below 7.8 or above 7.8. It is precisely because of this that banks are issuing banks or other financial institutions and enterprises naturally watch the fluctuations of the exchange rate. Once there is a deviation, arbitrage funds will inevitably be reduced and eliminated. This mechanism also provides huge liquidity for trading in the Hong Kong dollar and the US dollar.

After this exchange rate storm, it is already very good that most Hong Kong companies can avoid damage. There are probably a very small number of people who want to make profits by taking money from the hot spots. After all, even some large banks have speculated to buy US dollars in order to hedge risks. In fact, few institutions can create returns created by the appreciation of US dollar assets that exceed the losses of depreciation of Hong Kong dollar assets.

However, the new entrepreneurial company is one of the very few low-key companies that make money. The exchange rate drops and rises directly leads the strength of the new entrepreneurial company to soar, which is equivalent to contributing profits equivalent to the whole year of 1982.

In October, after Xinxing Electronics companies successively repayed a batch of short-term loans, the credit limit of major banks for Xinxing Electronics increased to HK$3.2 billion. The reason for this is that major banks are well aware of the capital flow of Xinxing Electronics and learned that their company has made a lot of money in foreign exchange operations and their debt repayment ability has improved. It is precisely because it is reasonable for banks to actively increase their credit limit.

Of course, there is no need to use the increase in credit limits. Foreign exchange speculation has reached a certain stage, but real estate and stocks can continue to buy.

Especially the real estate market, affected by the tide of many funds in Hong Kong fleeing and selling real estate and leaving Hong Kong in 1983, and the heavy blow of real estate developers and financial institutions in the past few years, many institutions have neither money nor confidence to acquire land. Therefore, throughout 1983, the Hong Kong government's official land sale and bidding income received less than 600 million Hong Kong dollars, of which the official land auction was even less than 100 million yuan, setting a record low in 30 years. A large number of land auctions were relatively deserted, and many participants were silent throughout the process and rarely took up signs.

However, Xindi Real Estate, a subsidiary of Xinzhan Electronics Company, has been making frequent moves recently. It has won the official land sold by the Hong Kong government at a low price. At these auctions, Xinzhan Electronics was the only quoter. It sold 200 acres of commercial and residential development land in succession, spending a total of HK$270 million, with an average of only RMB 1.35 million per acre, equivalent to RMB 2,000 per square meter.

Such a cheap price makes Lin Qi say it's worth it! Although the company's main business is not to build a big real estate business, it's a bastard if you don't take advantage of it!

Because the current price has fallen to the price in the early 1970s, Hong Kong real estate has risen in ten years and returned to its original form. It can be said that there is no time period that is cheaper than the real estate price in 1983. In 1983, even Li Ka-shing was not as bold as he was in the 1960s and 1970s. After all, Li Chaoren is more cautious as he grows older, and is not as brave as he was when he was young.

But Lin Qi saw through the future trump card and knew that this was a stable investment with a huge profit of 100 times, and there was no risk.

The provisions on the Land Deed in the annex to the Sino-UK Joint Statement in 1984 stipulate that: "From the date of the Joint Statement to the effective date of the Joint Statement to June 30, 1997, the new land approved under paragraph 3 of this Annex is limited to 50 hectares per year, excluding land granted to the Hong Kong Housing Authority for building rentals."

This clause does not restrict the use of land for the government to build public housing, but in fact, under the operation of real estate developers' interest groups, the construction of public housing built by the Hong Kong government has been slow. At the same time, since the annual land supply limit of properties developed by real estate developers is 50 hectares, it naturally caused the supply of housing and commercial real estate in Hong Kong in Hong Kong.
Chapter completed!