Washington [US] July 10 (ANI): Chinese President XI Jinping recently delivered a big blow to Wall Street investors when he crushed a tech giant after US investors pumped billions of dollars in it.
Author Josh Rogin writing in The Washington Post, reported that on July 2 just two days after Goldman Sachs, J.P. Morgan and Morgan Stanley launched an IPO for the Chinese 'Didi app' on the New York Stock Exchange, Chinese regulators cracked down on the company.
The Chinese companies ordered the removal of the Didi App from the app store citing data privacy concerns and its stock dipped 30 per cent of its origin value just sometime after many US investors landed billions into it.
Even the pundits, encouraging the US investors to put money into Chinese companies, admitted the fact that Wall Street can no more calculate the risk posed to investors who give money to Chinese firms.
CNBC host Jim Cramer who had earlier remarked on Didi App: "I would try to get as many shares as you can ... I doubt they'll have much trouble with the regulators" later changed his views on Chinese regulated firms.
Though there were enough signs that Chinese regularities are cracking down on their tech giants but instead of paying attention to these signs, the New York business experts kept telling their viewers that investing in Chinese firms is a secure bet, now millions of US investors are paying for it.
Author Josh Rogin said, that impressed with the lucrative Chinese market, Wall Street firms and US regulators provided assistance to Chinese companies in raising money from US investors. Until this case, many experts used to believe that the Chinese Communist Party was financially smart, they never believed that CCP would kill its Wall Street business but the Chinese government has falsified all these claims.
And this situation is getting worse, huge Chinese tech giants like Alibaba and Tencent are paying fines against various allegations. The Chinese government is still de-stalling many companies that have raised money from the US market. It has become an admitted fact that all Chinese profit-making firms are under the direct control of CCP. Therefore, US investors should not their futures to China Inc.
"The Communist Party is busy asserting tighter control of Chinese tech companies in an effort not only to break any sense of independence among China's technology leaders but also to ensure that they are acting in line with Beijing's strategic goals", The Washington Post reported citing Jonathan D.T. Ward, author of "China's Vision of Victory."Experts have admitted that that Chinese companies have no transparency, no accountability and have been playing on CCP's tunes, investing money in Chinese firms is nothing but a predictable loss. (ANI)