Home World Xi Jinping changed the rules of the game for cooperating with Wall Street | Jiang Zemin | Jiang Pai | Didi

Xi Jinping changed the rules of the game for cooperating with Wall Street | Jiang Zemin | Jiang Pai | Didi

by news dir

[Epoch Times October 17, 2021](Hong Kong Epoch Times reporter Zhang Mingjian report) Xi Jinping’s administration has recently purged some private companies that have political opponents Jiang Zemin’s factional color behind them, and the resulting chain reaction caught Wall Street by surprise. Some financial giants have not yet realized that the rules of the game for gold mining in China have quietly changed.

The ride-hailing company Didi was punished by Xi Jinping authorities as soon as it went public in the United States, and its stock price plunged 20% immediately. This has caused confusion to Wall Street. In terms of the prospects for investment in China, Wall Street has two voices.

Financial tycoon George Soros said that it is unwise to invest in China now; BlackRock, one of the world’s largest fund management companies, is optimistic about the Chinese market. Chairman Larry Fink said The letter to shareholders said: “The Chinese market is an important opportunity to help achieve the long-term (profitable) goals of Chinese and international investors.”

Mike Sun, a New York China investment strategy consultant who has invested and operated in the Chinese market for nearly 30 years, believes that Xi Jinping told Wall Street in his way that the rules of the game have changed. Mike Sun’s views are also the views of current Chinese political and economic experts.

On October 12, the Xi Jinping authorities launched a major inspection of 25 financial institutions, including major state-owned banks, stock exchanges, and investment companies in the financial sector. This was unprecedented. It was the Central Commission for Discipline Inspection that performed this task.

For large-scale real estate companies such as Evergrande Real Estate, China’s financial industry is their supply line, continuously sending money to these real estate companies, corruption has also spread along with the supply line, and the real estate bubble is getting bigger and bigger.

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In mainland China, politics and business are actually integrated. A large enterprise often involves the interests of one or several powerful families.

Since Xi Jinping came to power, the Central Commission for Discipline Inspection has, in the name of anti-corruption, lost thousands of officials, many of whom have been sentenced to heavy sentences, including the leaders of the Chinese Communist Party.

Anti-corruption has left Xi Jinping no retreat in the struggle within the party. If he loses his power, it will be extremely dangerous for Xi Jinping.

“Maintaining the national economic and financial security”-the Central Commission for Discipline Inspection said that this is the purpose of this inspection of 25 financial institutions.

The economic sector, especially the financial sector, has been dominated by the faction of Xi Jinping’s political opponent, Jiang Zemin, for a long time in the past.

Jiang Zemin was once the most powerful general secretary of the Communist Party of China after Deng Xiaoping, the political strongman of the Communist Party of China. He built a huge political force within the Communist Party of China-Jiang Zemin faction. After Xi Jinping came to power, many important members of Jiang Zemin’s faction were investigated and punished in the name of corruption. However, the Jiang Zemin faction has not been expelled from the core of power by Xi Jinping, and its influence still exists, which poses a direct threat to Xi Jinping.

In 2015, a stock market crash broke out in China. At the beginning of that year, the stock markets in Shanghai and Shenzhen began to rise continuously, gradually forming the so-called “national bull market” frantically rising trend. But starting from June 15th that year, the stock markets in Shanghai and Shenzhen plummeted across the board. In less than a month, the market value of the stock market has evaporated by more than 20 trillion yuan.

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According to a report by New Era Weekly on October 10, 2018, the Ministry of Public Security of the Communist Party of China intervened afterwards and found that the three major securities firms, CITIC Securities, Haitong Securities, and Guosen Securities, were shorting the Chinese stock market. Internal response. The source said that the Xi Jinping authorities regarded the incident as a “financial coup.”

“New Era” Weekly also disclosed that the “financial coup” was a conspiracy by anti-Xi forces in the CCP, including key members of Jiang Zemin’s faction.

The business and financial circles have become hidden dangers to Xi Jinping’s governance. Now he is trying to reverse this situation, breaking and reorganizing the power and money structure behind this, allowing his own power to enter into the dominant and reshaping the order of the economic field.

Media person Xiao Ming said on her YouTube channel on September 21 that combating private technology giants is not Xi Jinping’s ultimate goal. It is an inevitable side effect of Xi Jinping’s straightening of the power and money chain behind Chinese technology giants. On the other hand, the Xi Jinping government knows , They need external funding.

Xi Jinping moved so fast that Wall Street was caught off guard. When some of the capitalists on Wall Street hadn’t recovered, Xi Jinping had already started to divide the cake again and choose the objects he wanted to cooperate with Wall Street.

Blackstone Group Inc. (BX) withdrew its offer to acquire SOHO China’s equity because they failed to wait for the release documents from the Chinese Communist Party’s regulatory authorities. After SOHO China disclosed this news on September 10, its share price plunged 35%.

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In contrast, BlackRock has become the first foreign company to be fully approved to sell public fund products to Chinese retail investors in June this year. At present, there are still several such international financial consortiums that are undergoing inspection by the Chinese Communist government and are waiting to enter the Chinese market.

Wall Street’s investment in China has made progress. Obviously, Xi Jinping does not want to close the door to attract overseas funds. He just wants Wall Street to re-select partners with China, and the rules of the game have changed.

Xiao Ming said: “Xi Jinping wants to change the past collusion between Wall Street and the CCP’s dignitaries. Xi Jinping does not want companies such as Morgan Stanley and Goldman Sachs to invest large sums of money in companies of Jiang Zemin’s grandson and then get the privilege of certain financial businesses in China. Xi Jinping Don’t do this. He wants to take this privilege into his own hands. If Wall Street wants to make money in China, you have to contact the Xi Jinping government, and you have to get my consent.”

In addition, Mike Sun, a Chinese investment strategist in the United States, believes that Xi Jinping has made a lot of moves this time. He obviously hopes to complete the purge of the financial sector before his re-election next year. He needs to take financial power in his own hands instead of what happened in 2015. The big stock market crash in June was followed by another financial coup.

China’s economic structure is changing with changes in the political situation.

Editor in charge: Lian Shuhua #


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