During a live broadcast on November 13, Miles Guo disclosed that more than 80% of the Hong Kong stock market is now filled with Chinese Communist Party (CCP)-controlled listed companies. With these CCP companies taking over most of the market, there is no autonomy in the Hong Kong stock market.
Hong Kong is a low-tax region and imports 93% to 97% of its living materials. Banks, the Mandatory Provident Fund (MPF), and pensions are the core foundations of Hong Kong. The CCP has taken 70-80% of Hong Kong’s foreign exchange reserves. When Hong Kong has no foreign exchange revenue, all these core foundations will collapse.
The Hong Kong dollar is pegged to the U.S. dollar. If the $500 billion in base reserves that Hong Kong has pegged to the U.S. dollar are gone, the value of the Hong Kong dollar will instantly become zero.
In the past decades, the land rate release has been controlled to safeguard the interests of a few families in Hong Kong. It has made Hong Kong real estate the top three most expensive in the world, and thus caused high property prices in Hong Kong. With the loss of foreign exchange, Hong Kong will fully open up its land purchase restrictions on Lantau Island, Fo Tan, and around Shenzhen. As a result, Hong Kong property prices will fall by 40% to 50%. The loans, banks, financial institutions, and social foundations of Hong Kong will all be destroyed, and Hong Kong’s hundred years of hard work will be ruined.