Li Zhongxin knew better than anyone else that at this time, countries around the world had risk response mechanisms specifically for international financial speculators. These response mechanisms! Generally speaking, there are basically three types: foreign exchange intervention, interest rate raising and transaction control.

Monetary authorities purchase local currency in spot and forward foreign exchange markets, which can stabilize the exchange rate; raising interest rates can increase the cost of speculators borrowing local currency; trading controls can directly limit speculators' attack methods.

However, each measure has its own limitations. Among them, foreign exchange intervention is limited by the quantity of foreign exchange reserves. The quantity of foreign exchange reserves in each country is different. Moreover, the quantity of foreign exchange is basically hard economic strength and real assets.

Generally speaking, every country must reserve foreign exchange, which is an important means for this country to conduct economic regulation and achieve internal and external balance.

When there is a deficit in the balance of payments, the use of foreign exchange reserves can promote the balance of international payments; when the domestic macroeconomic imbalance and the total demand is greater than the total supply, foreign exchange can be used to organize imports, thereby adjusting the relationship between total supply and total demand and promoting the balance of the macroeconomic. At the same time, when the exchange rate fluctuates, foreign exchange reserves can be used to intervene in the exchange rate to make it stable. Therefore, foreign exchange reserves are an indispensable means to achieve economic balance and stability.

The second way to increase interest rates, in addition to providing international financial speculators with the opportunity to attack, will also have a negative impact on the economy. If the fiscal and financial system itself is fragile, it may trigger a domestic financial crisis.

The third type of regulatory measures has uncertain effects during implementation and may aggravate market panic.

Faced with the above challenges, if the attacked economies lack experience in responding, once they are not responding properly, even if the fundamentals are healthy, they will fall into a currency crisis.

Li Zhongxin has a deep understanding of the Asian financial crisis in 1997, part of which is due to the TV "Genesis" about the 1997 financial crisis staged in Hong Kong and the "Stranger" co-production in Singapore and China. These two dramas impressed Li Zhongxin. It is also through these things that Li Zhongxin has a very deep understanding of the financial crisis in 1997.

The main reason why Thailand has become the first target of international speculative capital is itself, which has the greatest connection with Thailand itself.

In the first 10 years after the outbreak of the Thai currency crisis in 1997, there were structural problems such as excessive dependence on foreign trade and excessive trade deficit behind Thailand's rapid economic growth.

After opening up the capital account, a large amount of capital inflows gave birth to the stock market and real estate market bubbles and exacerbated credit expansion.

Cross-border borrowing is almost unrestricted, resulting in excessive short-term foreign debt. As the exchange rate of the Thai baht against the US dollar remained stable, the appreciation of the US dollar in 1996 drove the appreciation of the Thai baht, and the yen depreciated, which both hit Thailand's exports hard and caused the country's economic decline.

External economic imbalances, asset price bubbles, fragile financial sectors, and negative fundamental impacts give international speculators an opportunity to take advantage of. Political turmoil and frequent government changes have also weakened Thailand's ability to deal with the crisis.

It is precisely for this reason that Li Zhongxin had already confirmed in his heart that international speculators might have already smelled the opportunity to attack at this time.

So, Li Zhongxin, Mitsui Masako and Komura Eika talked about his layout ideas.

"Tenxin! You talked to us for a long time, but I still feel that what you said is unlikely. Now I still feel that the Asian economy is developing well. Moreover, the one you are talking about will have a financial crisis next year or longer. Is it too early for us to make a layout now?" Mitsui Masako asked after Li Zhongxin and Komura Keika for a long time.

Masako Mitsui felt that the things Li Zhongxin said were too far away. Even if there was a financial crisis in 1997, it was too early to do those things now. How could it be seen that the financial crisis was more than a year earlier and began to make arrangements?

"Aunt Masako, what about our layout! Not to mention early or late, whether such a situation occurs or not, our Chungxin Mitsui Bank also needs to carry out new business. Our Chungxin Mitsui Bank does not have much business now, and most of the funds are idle.

Now we have established some trading platforms and banks in various places, which will be of certain benefits to our next development. Even if there is no financial crisis, we will still make money.

Let me say this to you, whether Hong Kong can return to the mainland in 1997, whether there will be conflicts between China and the United Kingdom, etc., all things are uncertain now. It is precisely because of these uncertain factors that I have such an idea, and I have made some small arrangements in Hong Kong." Li Zhongxin looked at Masako Mitsui with a little surprise and said to Masako Mitsui in a casual manner.

In this matter, Li Zhongxin has never said that he would determine the occurrence of a financial crisis, but instead proposed that if the financial crisis occurs, they would do whatever they needed to arrange it.

Just like the metaphor that Li Zhongxin finally made with Masako Mitsui, no one dared to guarantee whether Hong Kong can return to China successfully in 1997. If it is because of Hong Kong, China and the UK have a quarrel or fight, it is not impossible.

So! Li Zhongxin’s meaning is very simple. The things we have arranged or done now are just to lay the groundwork in advance. We don’t know whether such a thing can happen, but doing this will be in advance, which is still beneficial to the development of Zhongxin Mitsui Bank.

"Sister Masako, I personally think! What Chungxin said is very correct. Now most of our Chungxin Mitsui Bank's business has been handed over to senior management personnel to handle. Now it is time to develop some new businesses and channels.

According to the arrangements mentioned by Zhongxin, no matter whether the financial crisis that Zhongxin said occurs or not, we can maintain a good upward momentum, let alone our Zhongxin Mitsui Bank is now considered a major customer in the international foreign exchange market. I think it is very necessary to do what Zhongxin said.
Chapter completed!