Ahead of xi’s fifth visit to the us on September 28, a veteran us stock investor named George Vlahos wrote xi several times complaining that he had been defrauded by investing in Chinese stocks, but received no reply. George, then 85, told us media: “If I can’t make up for the loss, I will leave this world with an unforgivable sin because I trusted these companies.”
He lost hundreds of thousands of dollars when his Chinese shares were delisted for a long period of non-reporting and the company’s share price dropped from $10 a share in 2010 to 5 cents in 2015, forcing his 76-year-old wife to apply for low-income benefits. When George heard that Xi was going to visit the United States, he spoke to Xi through the media, hoping to “give a little hope” to those who have lost money investing in Chinese stocks.
While the average American investor in Chinese stocks has lost money, Wall Street has profited handsomely from the deal. Take Luckin Coffee for example. In April 2020, Luckin suffered a major financial fraud scandal, but in 2019, three Wall Street firms, Credit Suisse, Goldman Sachs and Morgan Stanley, made millions of dollars as underwriters of Luckin’s IPO.
Wall Street’s service to the Communist Party began long before the establishment of diplomatic relations between China and the United States. In 1973, Chase Manhattan Bank became the correspondent Bank for Bank of China in the US, six years before China and the US established formal diplomatic relations in 1979.
Behind Wall Street’s infusion are politicians, notably Henry Kissinger, whom the party calls an ‘old friend.’
Signing memorandum of Understanding (MOU) For Chinese and American companies to go public again
Alibaba went public in the United States in 2014, raising as much as $25 billion, making it the largest IPO in American history and about $9 billion more than Facebook’s initial public offering. Several of Alibaba’s underwriters, including citigroup, Goldman Sachs, jpmorgan Chase and Morgan Stanley, earned $300 million in fees.
Despite the huge momentum of Alibaba’s LISTING in the United States, the number of Chinese concept stocks listed in the United States had dropped sharply in the two to three years before that, from 2011 to 2013, due to the impact of the financial fraud scandal of Chinese enterprises such as Longtop Financial Technology Co., LTD., although in 2007 and 2010, The Number of Chinese concept stocks listed had a small peak.
On May 7, 2013, under the leadership of the Obama and Biden administrations, the PUBLIC Company Accounting Oversight Board and the CSRC and Treasury departments signed a memorandum of understanding (MOU) that allows both parties to refuse disclosure requests where domestic law or national interest does not permit. This gives Chinese companies huge preferential treatment.
Generally, public companies in the U.S. must be audited by an Accounting firm certified by the Securities and Exchange Commission, and those audits are subject to oversight by the Public Company Accounting Oversight Board (PCAOB). But the memorandum of understanding directly gives Chinese companies an excuse to disclose information without complying with U.S. securities laws. China’s Communist Party has banned audit manuscripts from going abroad on national security grounds, allowing Chinese companies to list in the U.S. but not subject to the same standards as U.S. companies, according to the CPA.
Just over a year after the MOU was signed, Alibaba went public in 2014, a year that saw 15 Chinese companies go public in the United States, including jd.com, another mainland e-commerce giant. From 2015 to 2017, the number of Chinese concept stocks listed in the US increased year by year, and reached a new peak in 2018. The MEMORANDUM of understanding (MOU) between China and the US can certainly be credited with the upward momentum of Chinese concept stock listings in the US.
Joe Biden helps Chinese tycoons meet White House ‘bigwigs’
According to Breitbart News, Vice President Joe Biden’s son, Hunter Biden, helped Chinese tycoons hold meetings with White House dignitaries in 2011, when the Chinese stock market was in the midst of a severe credit crisis, and met Joe Biden privately.
Hunter’s former business partner Bevan, Cooney (Bevan Cooney) revealed that in an email on November 5, 2011, led by an agent to introduce some Chinese executives and government officials to the hunt, hope to be able to make these executives through the China entrepreneur club (CEC) a tour of the White House, and the White House official meeting at the same time.
The China Entrepreneur Club delegation includes Chinese billionaires, Communist Party lobbyists and at least one person in Beijing described as a “respected diplomat.” According to public records, the club was founded in 2006 by a group of businessmen and communist party diplomats as the “second foreign ministry” of the Communist Party, and is chaired by Jack Ma, founder of Alibaba, the Chinese e-commerce giant, which listed in the United States in 2014.
On November 14, 2011, a Chinese political and business delegation visited the White House and enjoyed high-level access, according to public U.S. government filings. White House visitor records show that the delegation included about 30 Chinese members.
A schedule released by the China Entrepreneurs Club also confirmed that the delegation met with John Bryson, Mr. Obama’s commerce secretary, whom he had just confirmed at the time.
But the visitor records of Obama and Biden do not mention whether the delegation met with then-Vice President Biden. Accompanying the Chinese entrepreneur club secretary, however, long-range rainbow, is Mrs Li has confirmed the meeting, in her personal resume in 2015 once talked about the experience, she says, in 2011 the delegation’s visit to Washington by courtesy and reception, and vice President Joe biden and other political leaders held talks.
So, did the meeting in 2011 also contribute to the signing of the MOU between China and the US?
Wall Street transfusion to Chinese Communist Party
For Chinese companies to go public in the United States, the major Wall Street investment banks play a very key role, such as leading stock underwriters, sponsors, financial advisers and so on.
Morgan Stanley (Morgan Stanley, NYSE: MS) disclosed on its website that it has been “deeply engaged” in China for 26 years, raising more than $360 billion for Chinese clients in global equity capital markets.
Goldman Sachs, for example, has repeatedly helped large State-owned Communist Party companies list overseas, including China Mobile, petrochina, Bank of China, Bank of Communications and others. Jpmorgan has also taken part in the overseas ipo of a number of Chinese companies, including Guangzhou-Shenzhen Railway, petrochina, Aluminum Corporation of China, China Telecom and Alibaba.
Stephen Bannon, a former Chief White House strategist, concluded in an interview that “the whole operation of the Chinese Communist Party and their operations in China are sponsored by Wall Street.” “Wall Street is the Chinese Communist Party’s investor relations department.” “American business today is the long arm of the Chinese Communist Party.”
Financing from the US capital markets is the party’s main lifeline. According to a document released by the US-China Economic and Security Review Commission (USCC), an arm of the US Congress, as of February 25, 2019, there were 156 Chinese companies listed on the three MAJOR US stock exchanges — the New York Stock Exchange, Nasdaq and THE American Stock Exchange — with a market capitalization of us $1.2 trillion.
In November 2019, the former US President Ronald Reagan (Ronald Reagan) economic and financial strategic designers Robinson (Roger Robinson) at a news conference, said the Chinese communist party in the us capital markets may took about $3 trillion of funds, Robinson, estimates from the U.S. stock market, the communist party of China (probably took $1.9 trillion, the bond market could took 1 trillion dollars.
While these Wall Street firms have helped Chinese companies raise hundreds of millions, billions, billions of dollars, they have also made a lot of money.
Because of the money, Wall Street turned a blind eye to abuses of human rights by the Communist Party and “financial fraud” by Chinese companies. Not only did they turn a blind eye, but they were willing to act as lobbyists for the Communist Party, even though investors suffered huge losses. Money, many say, has made Wall Street too sick.
Speaking of which, let’s take a look at a traditional Chinese story that may be good medicine for the ailing Wall Street.
Dong Feng’s apricot Enterprise
In ancient books in the taiping guang ji “, tells a story of The Three Kingdoms period famous doctor Dong Feng, this Dong Feng skill, and treating people don’t accept money, but he asked to cure serious illness to the patient, apricot trees planted after planted more than thousands of almond tree, Dong Feng began to do “business” of apricot, apricot son to buy one can own with a can of corn in a jar of apricots, and don’t have to tell Dong Feng. The grain he bought from selling apricots was used to relieve the poor and travellers who had to travel without enough money. In this way, Dong helped more than 20,000 people a year. So the story of the apricot forest became an ancient story and the word “apricot forest” later became the nickname of the medical profession. It is said that Dong Feng-hui is a practitioner of philosophy, and his story is listed in The Legend of the Immortals.
So how big is Dong’s 100, 000 apricot trees? According to the current agricultural data, it is between 500 acres and 1,500 acres. If we convert it into football fields, it is between 40 and 120 football fields. That is quite an impressive scale. From the point of view of today’s business, without working capital and capital investment, it receives more than 20,000 people a year and operates an orchard of 1,000 mu without any manpower. This is absolutely extraordinary.
That’s where money comes in, the one thing that makes Wall Street bend over like a sore thumb: Tung doesn’t even show a trace of it. You know, Dong Runs a big business integrating medical care, farming, food, commerce and charity.
The politicians behind Wall Street’s dealings with the Communist Party
Behind Wall Street’s infusion are White House politicians whom the party calls “old friends of the Chinese people”, such as Henry Kissinger, a defence policy adviser who was sacked on November 25th.
In 2003, the Chinese media Sina.com published an article entitled “The lure of A $5 billion IPO by China Construction Bank: JP Morgan takes Henry Kissinger out”. The world’s biggest investment banks, including Morgan Stanley, Merrill Lynch, Citigroup and Credit Suisse, as well as JP Morgan and Deutsche Bank, struggled to squeeze into the underwriting team for the CCB listing. To get the big order, the global CEO of JP Morgan visited CCB directly with former US Secretary of State Henry Kissinger. Citigroup is playing former U.S. Treasury Secretary Robert Rubin’s card, as Sina.com disclosed in a separate article.
Kissinger was the first U.S. secretary of state to be called “an old friend of the Chinese people” by the Communist Party. He had made two secret visits to China in July and October 1971, before facilitating Nixon’s visit; He was also instrumental in the United States breaking off diplomatic ties with the Republic of China and the Chinese Communist Party.
Kissinger has visited China more than 80 times since 1971, 20 of them privately, and is the only foreign dignitaries ever received by five generations of Communist Party leaders.
In 1977, Kissinger resigned from public office and worked as a senior consultant for Chase Bank, rand Corporation, and Goldwater Sagas.
In 1982, Kissinger founded Kissinger Associates, Inc. (KAI), which provides policy advice to large American companies on overseas expansion, the most important of which is to help them invest in China.
According to the documents, Kissinger’s well-known clients include jpmorgan chase, American Express, Budweiser beer, Coca-Cola, Heinz Foods, Boeing, Merck Pharmaceuticals, Volvo cars and others.
It was reported that in 1987, the annual profit of Kissinger Associates had reached $5 million. By the early 1990s, it had doubled again. Kissinger’s annual income at that time exceeded $8 million, reaching the level of investment bankers of the same period. At the time of the report in 2001, Kissinger Associates’ annual turnover was in the hundreds of millions.
While Wall Street’s investment banks and politicians are reaping the benefits of this deal, the Chinese Communist Party is blatantly exploiting American workers and families. Senator Chris Van Hollen of Maryland has said: “Millions of American families are relying on small investments to retire, send their children to college, and weather the financial crisis. But many people get cheated out of their money after investing in seemingly legitimate Chinese companies.” ‘These Chinese companies hold different standards from other listed companies,’ he said.
Trump signs Foreign Company Accountability Act
But the man who put an end to Wall Street’s dealings with the Chinese communist Party has emerged. President Trump, who has “put the Interests of the American people first”, has since taken office, through a series of executive orders, reduced the Chinese communist Party’s ability to raise funds overseas. In an important moment in the U.S. election, On December 18, President Donald Trump again signed into law the Foreign Company Accountability Act, which requires u.s.-listed companies to be audited by the Public Company Accounting Oversight Board within three years or face removal.
Clearly, the bill protects ordinary investors and hurts the Chinese Communist Party, but it also goes straight to the cheese of Wall Street and politicians.
The current Wall Street, in order to keep this “big cheese”, must be a struggle.
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