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Technology Stocks : DELL Bear Thread -- Ignore unavailable to you. Want to Upgrade?

To: lin luo who wrote (1769)	9/1/1998 1:52:00 PM
From: Lee	Respond to of 2578

Lin,..Re:<<Hong Kong Government Intervention>> In October 1987, the Fed intervened in our market by adding liquidity to facilitate market transactions and stabilize conditions. Recently, the US Treasury in conjunction with BOJ intervened in the Forex markets at a very opportune time to quash currency speculation almost gone rampant. This is not a new practice as several years ago, it was a regular occurrence. It is my understanding that the intervention of the HK government was based on the same meticulous timing in that last Friday was option expiration and the speculators had to cover their shorts or suffer more extensive losses. I don't think it is wrong for a government to defend either it's currency or markets when speculators attack. I think the timing was brilliant. If Thailand and Malaysia and others had not squandered their reserves, they could also have defended their currencies in the face of global hedge funds and speculators without incurring the horrendous devaluations that they now have to endure. Unfortunately, I am not familiar enough with history of China and Hong Kong to be able to know what has transpired in the past, but based on the very little information that I have, you are correct in saying that China has managed very well in the past to stifle this destructive component. Regards, Lee

To: lin luo who wrote (1769)	9/1/1998 2:37:00 PM
From: Geoff Nunn	Read Replies (2) \| Respond to of 2578

Lin, re: They hedged their positions in the futures. It is them who was the seller. Obviously you don't know trading! If it is true the Chinese gov't hedged its long position in stocks by shorting stock futures, then it must be lying to the public. Why? Because the reason it publicly stated for intervening in the market was to shore up prices. Its intervention would not have that effect if it is shorting the futures market. The effects of the two positions would tend to be offsetting. Can you cite a source for your claim about the shorting?