After Li Zhongxin saw off several classmates in the dormitory, he calmed down and studied some of the questions he needed to do in 1997.

Li Zhongxin knew in his heart that 1997 was a very critical year. During this year, if he could operate well, the country's strength would be brought to a higher level.

How can I say such a thing? Other countries experience economic crisis and major recession, then China will rise because of this crisis. The Asian financial crisis is a crisis in Asia, but there are many opportunities in the crisis.

How should China take advantage of such an opportunity is also a very worthy issue for him to consider.

Li Zhongxin combined the memories of later generations to create the causal relationship that arises from the economic crisis at this time. Most of them were the data and information provided to him by Masako Mitsui and Keika Komura in recent times.

Li Zhongxin knew very well that since 1991, the Japanese economy began to decline. Because domestic land costs and labor costs are getting higher and higher, and almost all raw materials rely on imports, Japanese entrepreneurs began to open factories abroad, industries

The transfer began, among which Indonesia, Malaysia, Thailand and the Philippines took on more, so the economic growth of these countries was very fast. However, most of these countries were labor-intensive, resource-consuming, and polluted low-end industries, which made them

The economy does not have good resistance when facing crises.

As the economy began to develop, Southeast Asian countries needed a lot of funds, so the market's desire for funds continued to increase interest rates, resulting in a large amount of foreign capital being exchanged into Southeast Asian currencies and entering these countries' arbitrage, increasing from US$50 billion in the early 1990s to

$120 billion in 1996.

Among them, Chungxin Mitsui Bank also made a large number of loans from outside, but Chungxin Mitsui Bank used asset mortgages to release loans in this regard, basically, it was a loan between banks.

It's the kind with very high interest rates.

On the other hand, Southeast Asian countries are also constantly issuing currencies to cope with market demand for funds, which will inevitably lead to a surge in asset prices, especially the real estate market prices.

Because a lot of funds from these two channels have entered the real estate field, the proportion of real estate loans in various countries exceeds 20% of the total amount of funds, of which Thailand accounts for 30% and Malaysia accounts for 28%. A large amount of construction eventually leads to a serious oversupply of houses, Thailand

The vacancy rate reached 20%, while the vacancy rate in the Philippines reached 15%.

As the market interest rates continue to increase, the pressure to repay debts is getting greater and greater. Some real estate companies with small financial strength have begun to go bankrupt, with many unfinished buildings and unsold houses. At the same time, many residents' loans cannot be collected, and a large number of banks have appeared.

Bad debt.

While the debt ratio of enterprises and residents has increased significantly, the debt ratio of the Thai government has also increased. In 1996, the debt reached US$93 billion, of which the short-term debt reached US$47.7 billion. However, the foreign exchange reserves of the country that can be used to repay the debt are only 372.

$100 million, insolvent.

In 1996, the US dollar began to appreciate in order to cool down the domestic economy, which caused two problems for Thailand: First, domestic funds began to flow out, because the interest rate of the US dollar was high, Thailand had no room for arbitrage. In order to prevent wealth from fleeing, the Thai government could only follow the US dollar to raise interest rates.

, that is, the exchange rate rises. Thailand was originally a low-end industry, so it was greatly affected by the exchange rate. The rise in the exchange rate caused the export products to lose competitiveness. Thailand's exports plummeted from 22.5% in 1995 to 0.1%. The decline in export products caused

The trade deficit means that imports are more than exports, and the deficit reaches 8% of GDP. In this way, Thailand's foreign exchange reserves originally rely on the trade surplus, but now the trade deficit will not bring about foreign exchange reserves, and exports are still continuing.

Consume US dollar reserves.

This means that Thailand has no money, both residents, enterprises, and governments, and will default on debt, especially the government, because they only have more than 30 billion US dollars in foreign exchange reserves, but their foreign debts are more than 40 billion US dollars.

This is the internal and external environment that Thailand faced at that time. There was a large amount of real estate surplus, a debt crisis broke out, a sharp increase in bad debts in financial institutions, a continuous decrease in exports, and a continuous consumption of foreign exchange reserves.

Li Zhongxin knew very well in his heart that in this situation, under the simultaneous attack of internal and external factors, Thailand's economy was facing collapse.

International financial speculators have always had a keen sense of smell. Once they discover unsustainable asset price bubbles, they will shorten the assets or currencies with excessive valuations to depreciate them and make huge profits. If the market panic is the same,

After the pessimism of investors is formed, the "herd effect" is triggered, and their firepower is enough to have a fierce impact on the target.

Soros and his "quantum fund" are important representatives of hedge funds. In September 1992, shorting the pound made him famous and was called a person who defeated the Bank of England by the Economist magazine. Since then, the fixed exchange rate has also been

Become a target of attack favored by hedge funds.

Li Zhongxin has a high understanding of financial speculators like Soros. After all, he is also one of them. However, Li Zhongxin has always been a crocodile type financial speculator and has been quietly hiding deep under the water, just at the most critical moment.

He came out and bite a big bite, and then disappeared.

It is precisely for this reason that even though Chungxin Mitsui Bank has speculated on spot and oil and other financial products in the international market for so long, it has not been discovered by various countries and has been all over the world.

The country is targeting.

Under normal circumstances, various countries have also discovered some problems with Zhongxin Mitsui Bank. However, Mitsui Bank's assets are so awesome, basically they belong to those high-quality assets, and most of the assets have certain ins and outs. Basically, they are all high-quality assets.

The company has financial transactions with central banks and large banks of various countries.

In terms of people in the market, Chungxin Mitsui Bank is a cash cow. In addition to having more money, it means more money. Whenever you need money turnover, you can take out the money.

At first, people thought that this Chungshun Mitsui Bank was a branch of Mitsui Bank, and many times Mitsui Bank provided the bank with the bank. However, after cooperation, they discovered that this Chungshun Mitsui Bank and Japan's large Mitsui Bank were not

A bank is separate and has no affiliation.

All countries also use many channels to understand and investigate this large bank that suddenly emerged. However, Chungxin Mitsui Bank is quite formal in terms of transactions or other aspects. It can only be said that Chungxin Mitsui Bank has good luck.
Chapter completed!