Everything China does is to give itself and its enslaved citizens under communist rule favor, and then the rest of the world.
China has never been about being a good global citizen. When China talks about the benefits of globalism, it does so to fool the rest of the world into benefits for China first and then everyone else second.
Why doesn’t the rest of the world treat China the same way China treats everybody else?
The latest example of selfish China comes in the form of the Star 50 index ETF.
CNBC reports that several large China fund companies are launching ETFs tied to the Star 50 index, which is tied to stocks listed on the Star Board, the newest stock venue for fostering tech startups owned by the Shanghai exchange. That would include the likely debut of Ant Financial in what may be the biggest IPO ever. This will open up many tech stocks to millions of investors on mainland China, many of whom cannot afford to trade because individuals must have a minimum 500,000 yuan (about $73,000) in their trading accounts to trade on the Star Board. Investments in the ETFs will only require 1,000 yuan. But here’s the pump scam. These Star Board ETFs are off-limits for US investors as STAR Board stocks are not included in Stock Connect. In other words, China will bring these ETFs public and allow its citizens to get in on the ground first. After a few months, maybe a couple of years, when the ETFs upward momentum slows, and all Chinese citizens hold shares and are already positioned, China will open up the ETFs to the rest of the world. Up will go the value of holdings of Chinese citizens. Presumably, China’s communist media will hint that Chinese citizens take profits in these ETFs as they open up to the rest of the world. And there you have a state-sponsored pump and dump brought to you by communist China.
We might even have well-connected Democrats like Biden or Republicans like McConnell get in on the ground floor in these Star Board ETFs through a hard to trace shell-company, Board seat, or indirectly through a spouse. They too will dump when the ETFs open up to the rest of the world.
Instead of greedy elites in America taking advantage of the situation, the SEC should prohibit the Star Board ETFs from ever trading over U.S. exchanges because they were not opened up to American citizens at the same time they were opened to Chinese citizens.
When is the world going to wake up to China’s trickery? China NEVER engages in any trade deal or financial transaction that it doesn’t receive the majority of the benefit on. To China, a fair deal is 70% of the benefit is China’s, 30% of the benefit goes elsewhere. Years of ‘fair’ China deals have made China a superpower in just 20 years at the expense of the rest of the world.