• Wednesday, January 29, 2020

Hong Kong is headed for a ‘full-fledged’ banking crisis

Discussion in 'China & Far East' started by Song Hong, Jan 16, 2020.

  1. Song Hong

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    Kyle Bass, the hedge fund manager who’s been shorting Hong Kong’s currency, said the former British colony faces a banking crisis in 2020, mirroring the struggles of Iceland and Ireland a decade ago.

    “It takes about a year for a full-fledged banking crisis to hit, and you’ll see a full-fledged banking crisis in Hong Kong now,” Bass, founder of Hayman Capital, said.

    The Dallas-based money manager pointed to an economy mired in recession, a high ratio of banking assets to gross domestic product and collapsing retail sales amid political unrest.
    Hayman hedged for this situation by betting on the US dollar against the Hong Kong dollar, Bass said. His firm isn’t making bearish bets on local stocks because he is concerned that officials in China and Hong Kong will prevent short-selling of equities.

    https://www.scmp.com/business/artic...aded-full-fledged-banking-crisis-it-still-not