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Kyle Bass’s Doomsday Call on Hong Kong Isn’t Convincing Markets

  • Hedge fund manager predicts a ‘full-fledged banking crisis’
  • Hong Kong’s currency and stock market show few signs of stress
Kyle Bass
Kyle BassPhotographer: David Paul Morris/Bloomberg

Kyle Bass is convinced Hong Kong is headed for a financial crisis, and he’s warning investors every chance he gets. Few seem to be listening.

The Dallas-based hedge fund manager, who made a fortune betting against subprime mortgages more than a decade ago, issued his latest dire Hong Kong forecast on Wednesday, saying in a Bloomberg TV interview that the city would suffer a “full-fledged banking crisis” in 2020. Citing a “collapse” in the local economy and high levels of financial leverage, he compared Hong Kong to Iceland and Ireland before those nations’ banking systems imploded during the global financial crisis.