Hong Kong Edition: An 82,000% stock spike

In this week's Hong Kong Edition, we break down what we know about a TCM company and its dizzying stock surge, take a look at the HKMA's dol
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In this week's Hong Kong Edition, we break down what we know about a TCM company and its dizzying stock surge, take a look at the HKMA's dollar defense and check in with Bloomberg's Mishal Husain. We also review a buzzy new Thai restaurant by the team behind Trattoria Felino.

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Mystery Ingredient

Surprising stock moves come in many shapes and sizes, from GameStop to Robinhood. Hong Kong just made a curious contribution to the lore, with a story as unique as it is puzzling.

In just a few weeks, the CEO of a little-known company got so rich that his fortune at its peak eclipsed that of Li Ka-shing's — on paper at least.

At one point, Yat-Gai Au was worth $33 billion. His Nasdaq-listed traditional Chinese medicine company, Regencell Bioscience, captivated outsiders when shares suddenly surged 82,000% from a low in February. Despite a precipitous drop from that peak, the stock is still up more than 20,000% since Feb. 13.

Regencell, incorporated in the Cayman Islands, is based in Hong Kong. But there's been little news to explain the gravity-defying run and the CEO seems to be avoiding publicity. Here's what we do know about the company so far.

The company never turned a profit

Regencell is a TCM company in the research and development stage. According to its most recent filings in the US, it has not generated any revenue since its inception.

It posted losses of $4.4 million and $6.1 million, respectively, for the fiscal years ended June 2024 and 2023, SEC records show. The chief medical officer position has been vacant since the last doctor to hold the job resigned in 2022.

It's targeting ADHD and autism

According to its website, Regencell's goal is to treat neurological disorders like ADHD and autism spectrum disorder through herb-based medicines. Its traditional Chinese formula, which forms the basis of product candidates, "contains only natural ingredients without any synthetic components," according to its website.

Herbal remedies at a traditional Chinese medicine shop. Photographer: I-Hwa Cheng/Bloomberg

In 2021, the company signed a two-year licensing agreement to distribute TCM treatments for Covid-19 in Asia.

The main line of business is based on the work of the CEO's father

Au's father was a traditional Chinese medicine practitioner for more than three decades, according to Regencell's website. The elder Au also has a background in electrical engineering and formerly owned a security alarm business in California. Regencell set up a nonprofit foundation in 2018, donating money and supplies to various organizations across Asia and in the US.

The younger Au attended the Haas School of Business at the University of California-Berkeley and landed a job at Deutsche Bank in the late 1990s. According to a video post on the company's Instagram account, Au suffered from learning disorders and speech problems, had poor grades and an uncontrollable temper.

Regencell was a penny stock for most of its existence

Regencell was founded in 2014 and debuted on the Nasdaq Capital Market in 2021 after a $25 million IPO. A year ago, it had a market cap of about $50 million and was worth less than $1 a share as recently as April. The company's value skyrocketed to $30 billion last week after a 38-for-1 stock split went into effect on June 16. Shares spiked 283% that day, triggering more than 10 volatility halts. Other than the split, there has been little to no news from the firm.

The CEO owns 86% of the company

The company's second-largest shareholder is Digital Mobile Venture, a firm ultimately owned by Taiwan's Samuel Chen and his wife, Fiona Chang. Chen was an investor whose early investments in Zoom made him a fortune when the company's stock soared almost 1,500% during the pandemic. Chen, Chang and their children also own a 55% stake in Taipei-based Polaris Group, a biotechnology company developing anti-cancer drugs. —Filipe Pacheco and Pui Gwen Yeung

Chart of the Week: Peg Defense

With a swift market reversal, Hong Kong was forced this week to buy the local dollar to arrest its decline and defend its peg to the greenback for the first time in more than two years. After testing the strong end of the band just last month, the currency bumped up against the weak edge in recent days and the HKMA purchased HK$9.42 billion ($1.2 billion) against the US dollar on Thursday. In addition to pushing the currency back into its permitted trading range, the move will also make bearish bets more costly by draining liquidity. —Tian Chen and Masaki Kondo

Five Minutes With: The Interviewer, Mishal Husain

Mishal Husain recently made headlines when she interviewed a testy Elon Musk at the Qatar Economic Forum. In the colorful 40-minute exchange, Musk compared Husain to an NPC — a gaming term meaning a "non-player character," or a background figure lacking independent thought. He also told Husain, who joined Bloomberg this year after nearly three decades at the BBC, that he planned to cut down on political spending, an admission that foreshadowed his public bust-up with US President Donald Trump.

In reality, Husain is anything but an NPC. One of the UK's most high-profile journalists, she presented the BBC's leading news program Today on BBC Radio 4 for more than a decade, where she was known for her incisive and impartial interviewing style. She hosted UK election debates, played central roles in coverage of Queen Elizabeth's funeral and King Charles' coronation, and reported on uprisings in North Africa and the Middle East. In her new role, Husain is launching an interview show as editor-at-large at Bloomberg Weekend.

Mishal Husain Photographer: Hollie Adams/Bloomberg

On Tuesday, she hosted an event for subscribers to Bloomberg.com and this newsletter at the our Hong Kong office, where she interviewed Chinese economist, author and investor Weijian Shan, as well as fellow journalists. (It was nice to meet so many of our readers!)

The next day, I spoke to Husain about her career, her plans for her new show, as well her new book, Broken Threads: My Family From Empire to Independence—Richard Frost

Why are interviews important to you? What do they mean to you?

I was brought up in a South Asian family. My parents came from Pakistan to the UK and then moved to the the UAE (United Arab Emirates). So I had an expat childhood before going to boarding school in England. But when I look back at my upbringing, I realized that some of the most important things to my parents were manners and courtesy. That was actually at the heart of how we were brought up, especially when interacting with our elders — which people of Asian backgrounds more widely will be able to relate to. The way you interacted with elders was that you asked them questions about their life. When I look back now, I feel that my journalistic curiosity probably stemmed from that, that I was not brought up to talk about myself or to say what I thought about things — I was brought up to display an interest in other people. I can now see that led to my professional life, in a way that I couldn't see when I was younger. So I think that desire to interview, to ask people about their world and their life, as well as the here and now, comes from very deep within me — and very far back probably in my personal DNA.

The part that I struggle with in today's media is I also know that you have to put your own work forward, and you have to put yourself forward, and you have to say, this is what I've done. And I think that part — which is an essential skill in journalism and broadcasting, and it's important for amplifying your work in a crowded media landscape — that part still doesn't come as easily to me. But the sitting down with someone — appreciating the fact that they're giving you their time, knowing that there is something important that they are going to share — that is something that I feel goes to the heart of being human and how I want to live my life.

The Musk interview. You obviously would've known before that interview he can be a very competitive individual.  What strategies did you use with Musk to deal with someone like that ?

I prepare in the same way for whatever kind of interview it's going to be. I interviewed [Prince] Harry and Meghan [Markle] when they just got engaged [in 2017] and that was unlike any other interview I've done. Here's a couple at an incredibly happy moment in their lives and yet the reason that they're doing an interview, which is going to go around the world, is because they are not only part of the British establishment. A marriage like that is part of an archive of the British royal family and therefore a part of British history. It's going to be looked back upon and, indeed, it really has been looked back upon because of what has happened since. So the common thread is preparation. I do think really, really hard about — I do dig really deeply into the person and their background or the issues. If it's someone like a prime minister, it's not so much into them as a person, it's more about the policy framework and the choices that surround them. But I think my strategy is rooted in knowledge and homework.

Mishal Husain interviews Elon Musk at the Qatar Economic Forum in May. Photographer: Christopher Pike/Bloomberg

What makes a great interview?

A great interview has to produce something unexpected. I think there has to be something that people were not imagining emerge from it. Something that is new. In journalism, we'll say a new line, but the way I think of it is more: Did we get on to ground that took us into new territory? And ultimately was there something in it that made the reader or viewer or listener think, oh, that was interesting, I didn't know that, I didn't expect that. That's the common denominator. And sometimes they do get heated and that can be sometimes even entertaining —  although that's not really what I'm setting out to do. But things do need to be interesting to read, watch or listen to. Otherwise, why should people spend the time? Everyone's got so many demands on their time. I still like to think of my approach being one that is more light than heat.

What are your plans for your new role?

I've joined Bloomberg to launch a visualized podcast and interview show later in the year, which is part of the new Weekend dimension to Bloomberg, what we are offering on Bloomberg.com and in the apps and elsewhere on Saturdays and Sundays. I've started to do the initial stages of that already: Every weekend we have been publishing a print Q&A, called the Weekend Interview. And if there's one guiding principle in all that — the person we choose, I'd like to feel that the reader trusts me, that this is a person who's worth their while, even if they've never heard of them before.

Husain and Shen at the Bloomberg Weekend event. Source: Bloomberg LP

That's the common thread between all of them. Some people are there because they are just very famous and very powerful and everything they say is important. Like Elon Musk. Some people are there because of the job they are doing, like British Prime Minister Keir Starmer or because they've got something really urgent to say right now that's worth hearing. Winnie Byanyima, head of UNAIDS, did that the other day about what has happened to the global HIV response through the US aid cuts.

And other people are there because they've seen so much in their life and in their work that they are able to take a big sweep and give us big observations about the things that we are seeing play out every day. So Tina Brown is coming up, where she is talking about observing media and power and celebrity for 50 years. And here in Hong Kong I've just talked to [PAG co-founder] Dr. Weijian Shan about his experiences in the Cultural Revolution.

You are also a successful author. You recently published Broken Threads: My Family From Empire to Independence [about Husain's family history around the time of the partition of India at independence]. What compelled you to write that book?

Broken Threads was in the background of my mind for a really long time because I knew that my grandparents and their generation had lived through this period in the middle of the 20th century, which was part of a big shift from empire to nation state. For a long time I thought, well, this period is already well documented. And then I realized there is so much that history forgets and so much detail that's so rich and so important, and it's not always political detail. It's often the social fabric that gets missed.

Husain on stage at the Bloomberg Weekend event. Source: Bloomberg LP

I found so much that I thought really painted a picture of society as it was then, and, of course, society differed according to social class and geography and religion, but I wanted to capture all of that. I like to think that I've painted a real portrait in Broken Threads of that coexistence with the British in colonial times, coexistence within different religious communities, and some of the heroism at a time of violence in 1947 as independent India and Pakistan were born. I poured my heart and soul into that book and it's been wonderful to see it go out into the world. I also think that it probably did expand my mind as a journalist — part of the shift of me working previously in daily news and in a minute by minute way, and stepping back slightly and now working on a weekly product where I am trying to think what's the one big thought that we can bring into this weekend's interview.

The Review: A Thai Tiger in Central

A new Thai hotspot has emerged at the edge of Central and Sheung Wan, providing an alternative to Samsen with its simple, yet creative menu and laid-back atmosphere.

The venue is the sister restaurant to Trattoria Felino, the Italian spot in Wan Chai that established itself as one of the city's hardest places to book since its debut in 2023. Mama Tiger Noodles, located at the quiet Kau U Fong Street, is helmed by chef Thanit Changchai, the former head of boat noodle chain ThongSmith.

Mama Tiger Noodles Photographer: Filipe Pacheco/Bloomberg

Even from the outside, it's hard to miss the big neon-like tiger head lording over the main dining area. Once inside, the high ceiling makes the place feel more spacious than you'd expect. There's room for about 16 diners at the tables, flanked on one side by a long yellow sofa, with another eight counter seats facing the bar. There's a retro vibe with posters and pictures adorning the walls, and the music — played at a good volume — probably evoke a 1980s Bangkok night club. In short: You definitely feel like you're in a hipster Thai eatery.

Inside Mama Tiger Noodles. Photographer: Filipe Pacheco/Bloomberg

I visited with a guest on Tuesday for dinner around 7:30 p.m. and felt lucky to get a spot by the window within a few minutes, as the crowd outside grew. The bill came to HK$758 for three appetizers, two noodle dishes and two non-alcoholic drinks.

The vibe: It's extremely casual — good for an unexpected drink after work or a not-in-a-hurry lunch over the weekend. At the time of our visit, the restaurant was busy with a young crowd, mostly sitting in pairs.

Can you conduct a meeting here? Not the best place to talk about work, as the tables are all quite close to each other and not ideal for large groups. The music was a bit loud sometimes.

Wonton Tom Yum Photographer: Filipe Pacheco/Bloomberg

What we'd order again: Definitely the Wonton Tom Yum, a generous portion of fried dumplings topped with more crunchy bits. The Yum Spicy Fruit salad, served with fresh herbs and dry shrimp dressing, was a good surprise.

Even though our waiter explained that the Tom Yum Sukhotai noodles were among the restaurant's most exclusive and popular dishes, thet Wagyu boat noodles turned out to be our favorite item of the night. Both the noodles and wontons paired beautifully with the green chili vinegar sauce served on the side.

Wagyu boat noodles Photographer: Filipe Pacheco/Bloomberg

Need to know: Unlike Trattoria Felino, Mama Tiger wants to keep an informal, walk-in culture going, so reservations are only available for 6 p.m. It's open Tuesday to Sunday from noon to 2:30 p.m., and then 6 p.m. to 10 p.m. It's at 12 Kau U Fong Street. —Filipe Pacheco

Here's What Else Is In the News

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