sparked criticism elsewhere, including in the United States. But Hong Kong fears a financial exodus without such benefits, said Maurice Tse, a finance professor at Hong Kong University’s business school.

“To keep these people around we have to give a tax benefit,” he said.

Hong Kong has also proposed a program, Wealth Management Connect, that would give mainland residents in the southern region known as the Greater Bay Area the ability to invest in Hong Kong-based hedge funds and investment firms. Officials have boasted that it would give foreign firms access to 72 million people. Hong Kong and mainland Chinese officials signed an agreement in February to start a pilot program at an unspecified time.

Pandemic travel restrictions have slowed the proposal’s momentum, said King Au, the executive director of Hong Kong’s Financial Services Development Council, but it remains a top priority.

“I want to highlight how important the China market is to global investors,” Mr. Au said.

Mainland money has already helped Hong Kong look more attractive. Chinese firms largely fueled a record $52 billion haul for companies that sold new shares on the Hong Kong Stock Exchange last year, according to Dealogic, a data provider. New offerings this year have already raised $16 billion, including $5.4 billion for Kuaishou, which operates a Chinese video app. The record start has been helped in part by Chinese companies that have been pressured by Washington to avoid raising money in the United States.

triple its hires across China, and a spokeswoman said a Hong Kong staff increase was part of that. Bank of America is adding more people in Hong Kong, while Citi has said it will hire as many as 1,700 people in Hong Kong this year alone.

hew to the party line. Still, it is considering moving some of its top executives to Hong Kong, because it will be “important to be closer to growth opportunities,” Noel Quinn, HSBC’s chief executive, said in February.

Investment funds are flocking to Hong Kong, too, after officials in August lowered regulatory barriers to setting up legal structures similar to those used in low-tax, opaque jurisdictions like the Cayman Islands and Bermuda. Government data shows that 154 funds have been registered since then.

Xi Jinping, China’s top leader, and Li Zhanshu, the Communist Party’s No. 3 official, at one point owned Hong Kong property, according to a trail that can be traced partly through public records.

While officials have welcomed business, they have made clear to the financial and business worlds that they will brook no dissent. In March, Han Zheng, a Chinese vice premier, praised the stock market’s performance and the finance sector in a meeting with a political advisory group but made its limits clear.

“The signal to the business community is very simple,” said Michael Tien, a former Hong Kong lawmaker and businessman who attended the closed-door session. “Stay out of politics.”

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He Built a $10 Billion Investment Firm. It Fell Apart in Days.

Until recently, Bill Hwang sat atop one of the biggest — and perhaps least known — fortunes on Wall Street. Then his luck ran out.

Mr. Hwang, a 57-year-old veteran investor, managed $10 billion through his private investment firm, Archegos Capital Management. He borrowed billions of dollars from Wall Street banks to build enormous positions in a few American and Chinese stocks. By mid-March, Mr. Hwang was the financial force behind $20 billion in shares of ViacomCBS, effectively making him the media company’s single largest institutional shareholder. But few knew about his total exposure, since the shares were mostly held through complex financial instruments, called derivatives, created by the banks.

That changed in late March, after shares of ViacomCBS fell precipitously and the lenders demanded their money. When Archegos couldn’t pay, they seized its assets and sold them off, leading to one of the biggest implosions of an investment firm since the 2008 financial crisis.

Almost overnight, Mr. Hwang’s personal wealth shriveled. It’s a tale as old as Wall Street itself, where the right combination of ambition, savvy and timing can generate fantastic profits — only to crumble in an instant when conditions change.

in a 2019 speech. “I couldn’t go to school that much, to be honest.”

Grace and Mercy Foundation, a New York-based nonprofit that sponsors Bible readings and religious book clubs, growing it to $500 million in assets from $70 million in under a decade. The foundation has donated tens of millions of dollars to Christian organizations.

“He’s giving ridiculous amounts,” said John Bai, a co-founder and managing partner of the equity research firm Fundstrat Global Advisors, who has known Mr. Hwang for roughly three decades. “But he’s doing it in a very unassuming, humble, non-boastful way.”

But in his investing approach, he embraced risk and his firm ran afoul of regulators. In 2008, Tiger Asia lost money when the investment bank Lehman Brothers filed for bankruptcy at the peak of the financial crisis. The next year, Hong Kong regulators accused the fund of using confidential information it had received to trade some Chinese stocks.

In 2012, Mr. Hwang reached a civil settlement with U.S. securities regulators in a separate insider trading investigation and was fined $44 million. That same year, Tiger Asia pleaded guilty to federal insider-trading charges in the same investigation and returned money to its investors. Mr. Hwang was barred from managing public money for at least five years. Regulators formally lifted the ban last year.

ViacomCBS announced plans to sell new shares to the public, a deal it hoped would generate $3 billion in new cash to fund its strategic plans. Morgan Stanley was running the deal. As bankers canvassed the investor community, they were counting on Mr. Hwang to be the anchor investor who would buy at least $300 million of the shares, four people involved with the offering said.

But sometime between the deal’s announcement and its completion that Wednesday morning, Mr. Hwang changed plans. The reasons aren’t entirely clear, but RLX, the Chinese e-cigarette company, and GSX, the education company, had both spiraled in Asian markets around the same time. His decision caused the ViacomCBS fund-raising effort to end with $2.65 billion in new capital, significantly short of the original target.

ViacomCBS executives hadn’t known of Mr. Hwang’s enormous influence on the company’s share price, nor that he had canceled plans to invest in the share offering, until after it was completed, two people close to ViacomCBS said. They were frustrated to hear of it, the people said. At the same time, investors who had received larger-than-expected stakes in the new share offering and had seen it fall short, were selling the stock, driving its price down even further. (Morgan Stanley declined to comment.)

By Thursday, March 25, Archegos was in critical condition. ViacomCBS’s plummeting stock price was setting off “margin calls,” or demands for additional cash or assets, from its prime brokers that the firm couldn’t fully meet. Hoping to buy time, Archegos called a meeting with its lenders, asking for patience as it unloaded assets quietly, a person close to the firm said.

Those hopes were dashed. Sensing imminent failure, Goldman began selling Archegos’s assets the next morning, followed by Morgan Stanley, to recoup their money. Other banks soon followed.

As ViacomCBS shares flooded onto the market that Friday because of the banks’ enormous sales, Mr. Hwang’s wealth plummeted. Credit Suisse, which had acted too slowly to stanch the damage, announced the possibility of significant losses; Nomura announced as much as $2 billion in losses. Goldman finished unwinding its position but did not record a loss, a person familiar with the matter said. ViacomCBS shares are down more than 50 percent since hitting their peak on March 22.

Mr. Hwang has laid low, issuing only a short statement calling this a “challenging time” for Archegos.

Kitty Bennett contributed research.

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Returning to the Office Sparks Anxiety and Dread for Some

Last fall, after some of the restrictions had eased in Germany, Trivago, a travel company based in Düsseldorf, let employees work remotely three weeks of the month and then spend one week in the office. The office weeks were designed for collaboration and were treated like celebrations, with balloons hanging from the ceilings and employees plied with coffee and muffins, said Anja Honnefelder, the chief people officer and general counsel of the company.

But the experiment failed, she said. “We saw that many of the people only came back for two or three days during the week because it felt unnatural, all of the social interactions,” said Ms. Honnefelder, who described her staff as young and made up largely of software engineers and data scientists. “They felt like they couldn’t get their work done and that it was disorienting.”

So, in January, Trivago announced that employees would come back to the office two days a week, but it has not been able to implement the plan because Germany has imposed new restrictions because of a rise in coronavirus cases.

“What we think will happen is that employees will use the two days to socialize, have extended lunches and work with their teams because they know, for the rest of the week, they will have time to focus and manage their own work and not be distracted,” Ms. Honnefelder said.

The ability to focus on work without distractions from other employees is the main reason Mr. Jaakola, the Minneapolis software engineer, does not want to return to the office. He admits he finds dealing with other people kind of “draining,” and hopes his company won’t force him to return to the office, even for a few days a week.

“My sense is that my company will try to go back to how things were before and I think they’ll quickly realize there are a lot of remote possibilities out there for us,” he said. “If they try to force us to come in without a legitimate reason, I can get another job if I don’t want to come in.”

Gillian Friedman and Lauren Hirsch contributed reporting.

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Companies Quiet on Georgia Voting Law Face Boycotts

Companies were quick to speak out during the racial justice protests last year, putting out statements of solidarity and posting black squares on Instagram. But after Georgia Republicans passed broad voting restrictions, Atlanta’s corporate giants have been much more muted — and activists are now talking boycotts, The Times’s David Gelles writes.

Among the targets:

  • Delta, which has publicly defended gay rights and said it stood with Black people after the police killings of George Floyd and others. But on the voting legislation, the airline has only issued a statement about a need for broader voter participation. It told employees that it had “engaged extensively” with lawmakers in creating the legislation, and that the measure had “improved considerably” during the process, though it noted that “concerns remain.”

  • Coca-Cola, which pledged last summer to “invest our resources to advance social justice causes.” When it came to the recent bill, Coke said that it was aligned with local chambers of commerce, which also spoke mainly of increasing voter participation and avoided sharp criticism. (Late yesterday, Coke said it was “disappointed” in the new law, but added, “We don’t see this as the final chapter.”)

“It’s not as though corporations are unwilling to speak powerfully about social justice issues,” Sherrilyn Ifill, the president of the NAACP Legal Defense, told David. Companies spoke out forcefully against bills on gender and bathroom access, even threatening to pull out of states like Indiana and, yes, Georgia.

What changed? Companies may be shying away from political fights, after spending four years speaking out against the Trump administration. And the Georgia laws were spearheaded by mainstream Republicans, making executives less eager to cross lawmakers they may need on other issues.

  • Ms. Ifill raised a provocative third potential reason. “Why is it that corporations that could speak so powerfully and unequivocally in opposition to discrimination against the L.G.B.T.Q. community and immigrants are not speaking as clearly about the disenfranchisement of Black people?” she said. “This is a race issue.”

For activists, the next step is calling for boycotts on companies with big Georgia presences, including Coke, Delta, Home Depot and UPS. If “Coca-Cola wants Black and brown people to drink their product, then they must speak up when our rights, our lives and our very democracy as we know it is under attack,” Bishop Reginald Jackson of the African Methodist Episcopal Church told The Atlanta Journal-Constitution.

The Suez Canal is clear. Now what? The 224,000-ton Ever Given was freed from the vital shipping passage days after being stuck, hindering global trade. After the celebrations will come two big questions: What happened, and how can the disruptions be sorted out?

prevented 90 percent of Covid-19 infections by two weeks after the second shot. But President Biden and the head of the C.D.C., Dr. Rochelle Walensky, urged Americans to maintain virus safety measures in the face of “impending doom” from a potential fourth wave of cases.

The White House pushes for tax increases to pay for its infrastructure and jobs plan. As it rolls out its multitrillion-dollar spending initiative, the Biden administration is likely to call for about $3 trillion in new taxes, The Washington Post reports.

President Tayyip Reccip Erdogan of Turkey fired another top central bank official. The removal of Murat Cetinkaya, a deputy governor, was announced with no explanation. It came 10 days after Mr. Erdogan fired the bank’s chief, setting off a sell-off in Turkey’s currency.

The Supreme Court wonders what to do in an investor fraud lawsuit against Goldman Sachs. Justices noted that both sides agree that general statements about professional integrity could be the basis for a lawsuit, and that their positions had moved closer over the course of litigation.

huge stock sales tied to Archegos Capital Management, one thing has become clear: Cooperation is not the finance industry’s strong suit.

Archegos’ main lenders met on Thursday to discuss an orderly wind-down of the firm’s trades, according to The Wall Street Journal. The idea was to limit the damage from several banks dumping huge blocks of stock in ViacomCBS and other companies, potentially tanking prices and hurting their own balance sheets.

You can guess what happened next. Credit Suisse and Morgan Stanley sold small amounts of stock after that meeting. But Goldman Sachs opened the floodgates the next day, quickly followed by Morgan Stanley. By market close, the two had sold nearly $20 billion worth of Archegos assets.


Kevin Hartz, the founder of Eventbrite, believes in the value of SPACs: In February, his first SPAC (named “One”) acquired the industrial 3-D printing company Markforged in a $2.1 billion deal. His second blank-check fund — named “Two,” of course — raised $200 million yesterday. Still, he told DealBook that he believes some SPACs pose risks to retail investors.

Below are edited excerpts from their conversation.

On why S.E.C. scrutiny is needed:

Because people are getting hurt. “For some millennial family to invest in a SPAC, or invest in a SPAC merger, and then see that crater is why we need the S.E.C. to be more involved here,” he said.

What could happen next:

Mr. Hartz pointed to the dot-com bubble as a warning: “We still kind of point to 1999, 2000 as an indicator of what SPACs will need to go through, unfortunately, and that is kind of extreme euphoria, followed by the reality of most losing money for investors.”

corporations and governments has grown in recent years. Yet when it comes to the Supreme Court, some are resisting efforts to allow more sunlight into the institution, as demonstrated in the debate over a bipartisan bill that aims to televise the court’s proceedings.

No Supreme Court hearing has ever been filmed, though Congress has been trying to get cameras in federal courts since 1937. Most state courts allow cameras, and some federal circuit courts permit video with limits. But Chief Justice John Roberts and the five other veterans on the bench have said they fear that the presence of cameras would transform oral arguments into showy performances. (The court’s three most recent appointees have said they would consider it.)

Seeing arguments in “monumental cases” shouldn’t be a privilege of the few, said Senator Dick Durbin, the Democratic chairman of the Judiciary Committee, who is sponsoring the Sunshine in the Courtroom Act. Adding cameras “opens our democracy and gives millions of Americans a window into the room where decisions are made that have lasting effects for generations,” he told DealBook.

Then again, the court has adapted during the pandemic, allowing live audio feeds of arguments. Justices may clamp down on the public’s access to the court when the pandemic lifts, but the tech precedent may make that more difficult.

replace President Andrew Jackson on the bill. “The primary reason currency is redesigned is for security against counterfeiting,” Lydia Washington, a representative for the Bureau of Engraving and Printing, told DealBook. “The redesign timeline is driven by security feature development.”

The Obama administration said it would unveil a design “concept” by 2020, to coincide with the centennial of the 19th Amendment, which gave women the right to vote. Extensive redesign work was reportedly done, but in 2019 President Trump’s Treasury secretary, Steven Mnuchin, said the project would be delayed until at least 2026. (Insiders said they had always doubted that the 2020 deadline could be met).

It turns out that the complex design and testing process for currency can’t be hurried. “No final images have been selected,” Ms. Washington said. (The Treasury Department did not respond to a request for comment).

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Banks Face Billions in Losses as a Bet on ViacomCBS and Other Stocks Goes Awry

Mr. Hwang had worked under the billionaire hedge fund titan Julian Robertson at Tiger Management, making him one of the firm’s famous alumni, or “cubs,” when he started his own fund, Tiger Asia. But in 2012, he faced an insider-trading investigation; securities regulators said Tiger Asia had used confidential information to bet against the shares of Chinese stocks, and had manipulated other shares.

Mr. Hwang entered a guilty plea to wire fraud on behalf of Tiger Asia and paid millions of dollars in fines while also accepting a five-year ban on managing public money as a result of the settlement with the S.E.C. He reorganized the firm as a family office, meaning it was no longer managing outside money, and renamed it Archegos Capital Management; archegos is a Greek word meaning leader or founding father, and is used in the Bible to refer to Jesus.

“It’s not all about money, but it’s about long term,” Mr. Hwang said in a 2018 video in which he discussed his faith and work. “God certainly has a long-term view.”

According to four people familiar with the matter, Mr. Hwang had recently built large holdings in a small number of stocks, including ViacomCBS and Discovery, which also operates the cable channels TLC and the Food Network, and the Chinese companies RLX Technology and GSX Techedu. Those bets unraveled spectacularly in just a few days last week.

Last Monday, shares of RLX Technology, an e-cigarette company, tumbled sharply after Chinese regulators presented potential new regulations on the industry. RLX securities listed in the United States, called American depositary receipts, tumbled 48 percent. The next day, GSX Techedu, a tutoring company that has been a target of short sellers in recent years who claimed the firm’s sales numbers were overstated, fell 12.4 percent.

On Wednesday, ViacomCBS sold a batch of shares on the open market to raise money to finance its new streaming businesses, exacerbating Mr. Hwang’s situation. His firm began fielding queries from worried banks. Lenders at Goldman Sachs urged Archegos to pare its exposure, said two people familiar with those conversations. But Archegos pushed back, saying the battered stocks would recover, one of the people said.

By Friday morning, when Archegos was unable to post additional “margin,” Morgan Stanley and Credit Suisse, two of Archegos’s main lenders, had declared the fund to be in default, four people briefed on the matter said. Their action paved the way for Goldman Sachs and others to do the same. Soon, huge blocks of stocks were on offer.

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Credit Suisse and Nomura Feel the Sting from Archegos’ Fall

The case is a test of shareholders’ ability to sue over claims of investment fraud. The pension funds have sought to sue as a class over Goldman’s statements, saying that they believed the claims of honesty. Goldman has argued in its latest brief that the investors are resorting to “guerrilla warfare” and aren’t providing “serious legal arguments.” The bank says that an investor victory would lead to a barrage of future lawsuits over “general and aspirational statements” of the kind made by “virtually every public company in America.”

How a former S.E.C. commissioner thinks the court will respond to Goldman’s arguments: “I expect the court to be troubled by the claim that companies cannot be held accountable for saying that clients come first and then acting otherwise,” Robert Jackson Jr., who served on the commission from 2018 to 2020 and is now an N.Y.U. law professor, told DealBook. (The justices probably won’t agree with the claim that making a company “mean what it says” will lead to a tsunami of meritless lawsuits, he added.) Regardless, Goldman is right that the stakes are high, he said, since the case will probably decide whether shareholders can “hold corporate insiders accountable when they tell investors one thing and do another.”


What made last night different from all others? A diverse group of comedians, celebrities and venture capitalists doesn’t normally gather for a virtual Passover Seder on a chat app. But that is what happened last night on Clubhouse, which hosted what was possibly the world’s first hunt for a nonfungible token version of afikomen, the broken matzo ritualistically hidden for children to find and claim a prize.

Like an NFT, an afikomen is a unique object. “It feels like a reasonable updating of tradition,” said fnnch, the San Francisco street artist who created images of broken matzo for the event. NFTs are digital assets that represent sole ownership of things that are otherwise easily replicated — in this case fnnch’s pictures. He predicted that NFTs would eventually include a technological lock preventing copies from displaying, which would make owning them much more like possessing a physical artwork.

One afikomen NFT is being auctioned off to support Value Culture, a nonprofit that sponsors art, education and spiritual projects to foster community engagement. The other was nestled within the profile of someone in the Clubhouse room and given away for free. (Hints about to how to find them lay in the Passover tale that is traditionally told at a Seder.)


The annual college basketball championship — and betting bonanza — known as March Madness has been full of upsets, on both the men’s and women’s sides, blowing up many brackets.

If you no longer have hope of winning the office pool, here’s another contest to think about: March’s maddest markets. We’ve come up with a mini-tournament of seeded matchups to determine which mania is the most manic.

How would you bet? Let us know: dealbook@nytimes.com.

Stonks division

No. 1 SPACs vs. No. 4 penny stocks

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A Way to Close a Big Tax Loophole

Bruin is investing in TGI Sport, an ad tech company that’s currently owned by the Australian firm Quadrant Private Equity. (A person briefed on the matter said that Bruin was investing about $100 million.) Currently a part of QMS Media, which provides outdoor advertising like digital billboards, TGI focuses on sports advertising — with a twist. Its “parallel ads” technology allows teams to display different ads on and around the field of play for audiences in different geographies. It has been used by Major League Soccer, New Zealand Rugby and others.

“Why should a fan in New York look at Boston advertising?” asked George Pyne, the founder and C.E.O. of Bruin. As broadcast audiences are getting smaller and more fragmented, sports franchises want to build more of a direct relationship with viewers, and then persuade advertisers to pay to reach those fans.


— Mike Winkelmann, the artist known as Beeple, speaking on the “Sway” podcast about the frenzy for digital art via nonfungible tokens, or NFTs. He auctioned an NFT-linked image this month that sold for $69 million.


The Chinese social media company Renren went public in the U.S. in 2011 with great fanfare, fizzled, and soon spun off its investment platform. The spinoff included shares in the SoftBank-backed fintech company Social Finance, or SoFi, in a deal criticized by some Renren shareholders. They sued Renren, its executives and others in New York State Court for $500 million in 2018, in a case that last week survived attempts at dismissal just as they were filing an amended complaint detailing allegations against additional defendants, SoFi and SoftBank.

The plaintiffs accuse insiders of stripping Renren of its value, their lead attorney, Bill Reid, told DealBook. Executives took the company’s billion-dollar investment portfolio in a complex arrangement that “split up the spoils,” he argued. He alleged that SoFi and SoftBank helped unfairly get the best of Renren.

SoFi is going public via a SPAC, in a deal that values it at more than $8.5 billion. Renren’s founder and a defendant in the case, Joe Chen, is on the board of SoFi, which is in the process of merging with Social Capital Hedosophia, a blank-check firm run by Chamath Palihapitiya. In a statement to DealBook, SoFi’s general counsel, Rob Lavet, said, “While as a matter of policy we do not comment on ongoing litigation, we do believe the charges against us are meritless and we look forward to vigorously defending ourselves in court.”

SoftBank and Social Capital did not respond to requests for comment.


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Current and former investment bankers react to claims of workplace abuse by junior analysts at Goldman Sachs.

Last week, a presentation by a group of junior bankers at Goldman Sachs went viral on social media, in which they complained about what they described as workplace abuse, including 100-hour weeks.

The DealBook newsletter’s inbox has been overflowing with reactions, notably from current, former and aspiring investment bankers. Here’s what some had to say — most requested anonymity to speak freely about their experiences — edited and condensed for clarity:

  • “My view is that if it’s not to your liking, quit and find another line of work. It won’t pay as well, but it’s also possible that you won’t learn as much. I am still reaping the benefits of what I learned.” — Anonymous in Sydney

  • “I had heard all about the long hours, but once I was in it, I found that I had underestimated. I threw in the towel and left banking, because no amount of money was worth the terrible lifestyle.” — Anonymous in New York

  • “I knew I was worked like a donkey but quid pro quo. I could leave, work fewer hours and make less money. But I wasn’t interested in that.” — Anonymous in London

  • “In our day, we may have complained to our friends or our family, but we knew that short-term pain was good for long-term gain. I now live a comfortable life enabled by my first years at Goldman Sachs.” — Anonymous in New York

  • “We would do the math on the compensation and realize that we were making less than minimum wage per hour. It wasn’t worth being tortured. My health still suffers from my years on Wall Street.” — Anonymous in New York

  • “The learning experience was incredible and career-wise it set me on the right track. In hindsight, it could have actually killed me, but I was too young to realize this.” — Anonymous in Dubai

  • “Yes, we were ‘abused’ and yelled at, but this was expected and how we learned. My message for these analysts is: If you can’t stand the heat, get out of the kitchen.” — Anonymous in New York

  • “There is no money that rewards the mental and physical harm that investment banking does to you. Of course, it’s a hell of an experience, Excel and PowerPoint-wise.” — Anonymous in São Paulo

  • “I spent many long nights in the office at the behest of associates and V.P.s, most of the time for no reason but ‘they might need me.’ Then I joined the military, where I had better work-life balance and more respectful leadership than I did in banking.” — Anonymous in New York

  • “I am an incoming Goldman Sachs intern. I knew about the work conditions before applying to the job. Anyone engaging in a career at a top investment bank knows about it, or else they applied for the wrong reasons.” — Anonymous in Europe

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