China’s authorities have taken Wall Street by surprise and lost a lot of money in the post-IPO crackdown on DDT. Josh Rogin, a columnist for WaPo, posted a commentary, choking Wall Street was humiliated by Xi Jinping, now it is time to wake up, the old days when they thought the Chinese Communist Party only used Wall Street as a money tree, after the DDT incident, should recognize the nature of the Chinese Communist Party, and mocked Chinese enterprises are 3 “0” enterprises – zero transparency, zero accountability, zero independence In the wake of the DDT incident, the Chinese government should recognize the nature of the Chinese Communist Party and deride Chinese companies as 3 “0” enterprises – zero transparency, zero accountability and zero independence.
According to a report in the Free Times today, Washington Post columnist and CNN political commentator Josh Rogin argued that the DDT case was a humiliation of Wall Street by Xi Jinping.
Washington Post columnist and CNN political commentator Josh Rogin recently commented on the Drip story, noting that when Drip was raided by the Chinese Communist Party 2 days after its IPO, it was a humiliating blow to Wall Street by Xi Jinping, and that through this watershed moment, even the most stubborn of China’s economic boosters, Wall Street, had to admit that the game had fundamentally changed, and that it was a good idea to invest American money in China. Investing American money in Chinese companies is no longer a risk that Wall Street can estimate.
Josh Rogin quoted CNBC financial show host Kramer’s warning, “If you’re still buying Chinese stocks after the drop, you’re a fool, so why put your money at risk?” With this emphasis Kramer’s comments illustrate the advice that Washington has been giving to Wall Street for the past few years, reminding Wall Street that Chinese companies raising money in the U.S. are not subject to U.S. audit requirements.
But New York’s financial bigwigs ignored those warnings and told their investors that investing in China was the right thing to do, according to the report. Now, instead of those financial consequences falling on the gatekeepers at the top of the financial industry, it will be up to millions of uninformed U.S. investors to bear the consequences of investing in Chinese companies.
Until now, Josh Rogin said, many in the financial community wanted to believe that the Chinese Communist Party was pragmatic. They insisted that Beijing would never curb China’s economic development by strangling the money tree that is Wall Street, and that investors could always count on rational decisions and reliable returns. In the wake of the DDT debacle, none of these arguments hold water anymore.
According to Josh Rogin, Wall Street authorities, asset managers, lawyers and lobbyists can no longer argue that Chinese companies are simply not under the control of the Communist Party, but instead must understand that Beijing can steal their coffers at any time and for any reason. Josh Rogin says Wall Street must now acknowledge that sending Americans’ money to Chinese companies with zero transparency, accountability and independence companies, to the detriment of both investors and the United States.