Subject: Our Financial Stalingrad against China
We are a group of Hong Kong citizens concerned with the financial well-being of our city. When CUHK and PolyU were under siege last November, we launched a precision strike on Megvii Technology, a CCP-controled technology giant. We now declare that we have successfully strangled Megvii’s IPO plan to death, incurring them a loss of US$500 million.
As a Made in China 2025 frontrunner, Megvii is culpable for mass surveillance and suppression of Uighurs in Xinjiang. Not deterred by existing US sanctions, Megvii played dirty tricks in order to get listed in Hong Kong. This has alarmed much of Central and caught the attention of the US Treasury.
It is most delightful to watch one fall in the last mile. At the eve of Megvii’s hearing, we had voiced our concerns of it violating the listing regulations of HKEX as one. Tens of thousands of complaint later, we are relieved by the abortion of Megvii’s IPO, in no small part due to your wise decisions.
With neither chips nor dollars, Megvii has been effectively contained, a unicorn stranded in the humanitarian wasteland of Xinjiang.
We are also relieved to see that Sensetime, another Made in China 2025 candidate, has immediately suspended its IPO plan for Hong Kong, incurring a loss of US$750 million. We learnt that many Xinjiang- or Big Tech-related CCP firms are now having second thoughts about a Hong Kong listing.
However, such relieves are only temporary. As you and your esteemed colleagues has long realized, the maintenance of Hong Kong’s financial salient is a constant battle.
From time immemorial, Hong Kong has been the sole USD lifeline for the People’s Republic of China. If Beijing is set to destroy Hong Kong, we will destroy all of China, and we will know where the real stake lies. Now in the shadow of the National Security Law, the US is actively considering imposing financial sanctions on China. If China continues to free-ride on Hong Kong’s USD access, I fear we cannot but contemplate sanctions on HKEX, something no sane person wants to see.
To Beijing: You can either have the Law or an international financial centre. You cannot have your cake and eat it. Nothing is simpler than this.
Our words to China Concepts Stocks: Hong Kong is not your backyard. Nor is Hong Kong your USD ATM. What we do to Megvii, we are ready to do it to you. You have been warned.
In trust of your judgement,