- Money used was funnelled from Steve Bannon project
- Fugitive billionaire Miles Guo Wengui closely involved
- White House advisors wanted to undermine Hong Kong peg
HEDGE FUND BOSS KYLE BASS is in deeper trouble than earlier known, it was revealed today. He suffered a 95% drop in a fund which bet on economic disaster in Hong Kong. And US regulators say his wager was funded through an illicit investment transfer, Bloomberg reported.
But the anti-China investors remains in attack mode. Talking about the Chinese, he told CNBC yesterday: “They rely whole-heartedly on the dollar’s efficacy globally. … We could remove their access to dollars and their economy would literally collapse.”
Bloomberg revealed a new angle on the hedge fund manager’s troubles yesterday. Investors were led to believe they were putting their cash into a media company that would use the style of China’s TikTok to make anti-China videos.
DONALD TRUMP ADVISOR
The firm, GTV Media, was associated with former Donald Trump advisor Steve Bannon and anti-China campaigner Miles Guo Wengui. The pair earlier achieved enormous media coverage pushing the “Covid-came-from-a-Chinese-lab” theory using their own “Covid expert” Dr. Li-Meng Yan.
But the media cash was quietly transferred to a hedge fund, regulators said. Investors were not told.
Bass, confident that Hong Kong’s economic system would collapse under the pressure of US sanctions, structured his hedge fund as an all-or-nothing bet against the Southern Chinese city, promising a return of 200 times the investment if the currency peg collapsed – or the total loss of the investment if it didn’t. He was that confident.
HONG KONG ABOUT TO COLLAPSE
He appeared to have a good case. In 2019 and through much of 2020, mainstream and social media put out numerous stories about billions of dollars flowing out of Hong Kong and the city’s imminent collapse. The hunger to hit out at Hong Kong went to the top: White House advisors called for the US to use its economic power to destroy the dollar peg that kept the city stable, Bloomberg reported last year.
But what actually happened to Hong Kong’s finances?
The opposite of what Bass predicted. Data revealed that the city’s bank deposits rose to record highs, the currency peg strengthened, and the property market, the strongest indicator of Hong Kong people’s mood, started rising.
Bass’s fund lost 95% of its US$30 million pot of cash, the US Securities and Exchange Commission reported.