Kyle Bass’s Hong Kong view is that China has rushed through Carrie Lam’s extradition bill which will enable China to bypass Hong Kong’s judiciary and deport anyone that China deems to be a “criminal”.

“Anyone in Hong Kong can be sent to China without any judicial process” said Kyle Bass. 

Kyle Bass’s Hong Kong view is that China has overreaching influence over the former British colony.

“China controls the narrative, the money printing, the media, police, and the economy” said Kyle Bass. 

Here is Ray Dalio’s LinkedIn post published on October 23, 2017, entitled Our Biggest Economic, Social, And Political Issue. The crux of Dalio’s piece is that a widening wealth gap and income inequality have contributed to a two-tier economy which is also causing social and political challenges. But is Dalio shedding light on anything new, after all just 8 men own the same wealth as half the world?

China controls the narrative, the money printing, the media, police, and the economy

KYLE BASS

Kyle Bass’s Hong Kong view is that the region is a source of foreign reserves for China

Kyle Bass explained that China’s foreign currency reserve pile is made of USD, Euros, Pounds and the Japanese yen.

Kyle Bass argues that the USD is China’s interface with the world.

China, with its population of 1.42 billion people, is not self-sufficient. “China is desperately short of natural resources, food, energy, base metals and so it must have an ever-growing pile of USD if it is going to have an ever-growing economy” said Kyle Bass.

Kyle Bass pointed out that as China transacts with the world few will accept Renmimbi for payments. So when China needs to trade internationally it needs to dip into its stockpile of foreign reserves, particularly USD.

Kyle Bass’s Hong Kong view is that Hong Kong is China’s lifeline to USD so that it can transact with trading partners across the globe.

“China runs a two currency system that of USD and its domestic currency the Renminbi. 

China is desperately short of natural resources, food, energy, base metals and so it must have an ever-growing pile of USD if it is going to have an ever-growing economy

KYLE BASS

Kyle Bass pointed out that China’s USD pile has been shrinking because they run a huge twin fiscal deficit and now a current account deficit.

“What that means is that China’s USD reserves will continue to shrink” said Kyle Bass.

Kyle Bass’s Hong Kong view is that the former British colony is where wealthy Chinese hold their assets. “Hong Kong is where China raises USD” said Kyle Bass. 

“China has raised 40 billion USD a year so far they have raised half that in 200 deals in Hong Kong” said Kyle Bass.

We have to stop the capital flow into China if we want to win the economic war with China. We are fighting a cyberwar, information war, and a trade war with China” – Kyle Bass

Kyle Bass’s Hong Kong view takes on another dimension when it is discussed in terms of the US-China trade war

Kyle Bass suggested that the US could win the trade war with China by taking the upper ground, restricting China’s supply of USD. 

With China’s overreach Hong Kong capital flow is vitally important to Chinese companies. 

They raise 40 billion USD a year so far they have raised half that in 200 deals in Hong Kong. Hong Kong is where China raises USD.

“We have to stop the capital flow into China if we want to win the economic war with China. We are fighting a cyberwar, information war, and a trade war with China” said Kyle Bass.

“HK is now a part of China. It doesn’t run its legislature, its economy is tied to China. 

China supreme court is the court of the land in HK” argues Kyle Bass.

China has breached its 1984 joint deceleration with Britain and1992 HK policy act by overreaching in the judiciary.

So if HK is not autonomous then it too should be burdened with tariffs which would thereby restrict China supply of USD.

But Kyle Bass’s Hong Kong view doesn’t take into consideration China’s countermeasures, its de-dollarisation.

See Deterring a Chinese attack on HK

TRADING SOFTWARE

Dan Loeb targets Sony. Dan Loeb is an activist investor and founder of Third Point, which oversees about $14.5 billion in assets.

Last year the activist investor viewed Campbell soup as a bargain when Third point reported that the soup maker could fetch a takeover value of $52 to $58 per share.

A year later and the activist investor Dan Loeb targets Sony

Dan Loeb's activist hedge fund Third Point is raising an investment vehicle to generate between $500 million and $1 billion so it can continue to buy Sony shares, according to a recent report in Reuters.