In Rare Twitter Appearance, Kyle Bass Slams Chinese Capital Lockdown

The Chinese have made it next to impossible for multi-national corporations to remove money from China. Many have been unable to since NOV.
— Kyle Bass (@Jkylebass) April 9, 2017

Hayman Capital’s Kyle Bass has traditionally been media shy when it comes to public appearances or statements on Twitter, and in fact has rarely if ever Tweeted since joining the platform in February 2015. The changed that last night.
The hedge fund manager, who over the past 18 months has obsessed with China’s financial system, and specifically the precarious state of its banks, betting on a collapse in the Chinese Yuan on expectations of ongoing capital outflows and/or a financial crisis, referenced a South China Morning Post article discussing the strict lockdowns implemented by Beijing on capital flight, saying “The Chinese have made it next to impossible for multi-national corporations to remove money from China. Many have been unable to since NOV.”
In his most recent interview with Bloomberg’s Erik Shatzker, Bass said that China has ‘recklessly built a system that’s going to need to restructure and that just so happens to be metastasizing right when Trump becomes elected. This is a fire that’s been smoldering and it’s now starting to burn, and Trump is just more gasoline.” As he put it later “in lifecycles, what Trump is going to do, he is going to speed everything up.” It remains to be seen if that statement, which was spot on for the most part since Trump’s election, will need to be revised in the aftermath of Trump’s recent meeting with Xi Jinping, especially with Reuters reporting that China’s media “cheered” the meeting between the two heads of state.

This post was published at Zero Hedge on Apr 9, 2017.