A year ago, Hayman Capital Management’s Kyle Bass wrote about “the quiet panic in Hong Kong” and warned of an “impending crisis” in the region. Now, amid mounting unrest, he's putting his clients’ money — and then some — on a bet that the local currency will collapse. Bass told investors that the fund could see a 64-fold return if the currency drops by 40 percent, Bloomberg News reported, citing a person familiar with the matter. President Donald Trump last month said that his administration would begin to revoke Hong Kong's special status. Hong Kong is currently exempt from tariffs levied on Chinese imports, and the Hong Kong dollar is freely exchangeable for U.S. dollars.

Source: The Standard June 10, 2020 08:03 UTC