Advertisement
Former Tiger cub Bill Hwang’s Archegos Capital mauls investment banks, forcing Credit Suisse, Nomura to warn of significant losses as they count the cost of the world’s biggest margin call
- Credit Suisse, Nomura warned of potential losses related to margin calls of unnamed US hedge fund client
- Tiger Asia Management and founder Bill Hwang were banned from securities trading in Hong Kong for four years beginning in 2014
Reading Time:3 minutes
Why you can trust SCMP
3
Global investment banks warned of potentially “significant” losses on Monday after a series of margin calls involving the family office of Tiger Asia Management’s founder Bill Hwang Sung-kook sparked a sharp sell-off in several US-listed Chinese technology firms and American media companies last week.
Archegos Capital Management, the New York family office of Hwang, was forced by its lenders to sell more than US$20 billion in shares, including holdings in Baidu Inc., ViacomCBS and Tencent Music Entertainment Group, according to people familiar with the matter.
Calls placed to Archegos’ office in New York outside normal business hours on Monday were not returned.
Advertisement
Bloomberg reported on Sunday that Hwang’s family office was behind the trades.
02:38
Global brands face backlash in China for rejecting Xinjiang cotton
Global brands face backlash in China for rejecting Xinjiang cotton
Tiger Asia Management, Hwang’s hedge fund, admitted in 2012 to improperly using insider information to trade Chinese bank stocks and agreed to pay US$60 million to resolve criminal charges. In 2014, Tiger Asia Management and Hwang were banned from securities trading in Hong Kong for four years for insider dealing in shares of two mainland banks.
Advertisement
Advertisement
Select Voice
Choose your listening speed
Get through articles 2x faster
1.25x
250 WPM
Slow
Average
Fast
1.25x