RELEASE: CPDC Welcomes George Soros To The Opposition To US Investment In The CCP, Demand For SEC Restrictions
For Immediate Release
September 16, 2021
Hamilton Strategies, [email protected],
Beth Harrison, 610.584.1096, ext. 105,
or Deborah Hamilton, ext. 102
C.P.D.C. Welcomes George Soros To The Opposition To U.S. Investment In The C.C.P., Demand For S.E.C. Restrictions
White Paper Identifies Areas Where Chairman Gansler Must Strengthen Regulation
WASHINGTON, D.C.— The Committee on the Present Danger: China (CPDC) has, from its inception in March 2019, warned that Wall Street firms’ determination to invest their clients’ pension and other funds in Communist China would not end well. To its pleasant surprise, George Soros – a man better known for his enabling of radical leftist causes than a hard-line approach to their principal champion, namely, the Chinese Communist Party (CCP) – has arrived at the same conclusion. In recent opinion pieces, Soros has sounded an alarm about Xi Jinping’s totalitarian ambitions and urged an end to investments in the PRC.
Of course, this shared assessment has been powerfully validated by the financial upheavals spawned by a succession of capital market interventions at Xi’s direction: American investors have recently lost roughly a half-a-trillion dollars in the value of their holdings of Chinese stocks alone (not including bonds).
The question now is whether U.S. regulators are now, finally going to take action to end the access to America’s capital markets – on preferential terms, no less – that has enabled the Chinese Communist Party to underwrite its generally malevolent operations and those of its state-owned and ostensibly “private sector” companies?
In a CPDC White Paper released today entitled “CCP Bites the Feeding Hand: Xi’s Cap Market Gambits Demand S.E.C. Restrictions on U.S. Investment There,” the Committee assesses the adequacy of Securities and Exchange Commission Chairman Gary Gensler’s responses to date to Xi’s market manipulations at great cost to U.S. investors. In short, it finds them seriously wanting.
Specifically, the White Paper critiques a policy statement issued by Chairman Gensler last July in the wake of Xi’s crushing “bait-and-switch” on Didi Global, which resulted in 40% losses to shareholders shortly after the ride-sharing app had its very successful IPO launch on the New York Stock Exchange. Facing demands for a series of investigations and other corrective actions from Senate Republicans, Gensler’s statement “seemed more designed to protect the SEC’s frayed reputation than American investors, as demonstrated by the minimalist approach selected, which excluded the bulk of the Chinese companies traded in the U.S. capital markets.”
The White Paper’s “Bottom Line” recommends:
“Chairman Gary Gensler and the rest of the SEC must abandon forthwith their practice to date, whether by omission or commission, of fostering and perpetuating financial sector conditions that massively enrich our mortal enemy – the Chinese Communist Party – and expose scores of millions of our country’s investors to massive losses, CCP coercion and increasing peril. The place to start is by subjecting all Chinese equities and bonds traded in our capital markets (including within passive investment vehicles) to the SEC’s new requirements for full transparency and proper accounting standards, not just those formally listed on U.S. exchanges.”
On releasing the new White Paper, the Committee on the Present Danger: China’s Chairman, Brian T. Kennedy, observed:
“Given the economic uncertainty the United States faces, and growing prospect of actual hostilities with Communist China, it is nearly inconceivable that our nation’s regulatory agencies that are meant to safeguard American investors are not doing everything in their power to expose and prevent Communist China’s manipulation of America’s capital markets. Even more alarming are their ongoing efforts to ensure that Communist China’s companies are given favorable treatment on Wall Street over American companies. Congress needs to act immediately to examine the SEC and U.S. Treasury’s actions regarding Communist China, their predations in U.S. capital markets and the Wall Street firms that are making such harm possible in the first place.”
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To interview representatives of the Committee on the Present Danger: China,
contact [email protected],
Beth Harrison, 610.584.1096, ext. 105,
or Deborah Hamilton, ext. 102.
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