I said that because he doesn’t speak good English, he was deceived by two Chinese speaking lawyers in the US and Canada when he escaped from China to try to seek political asylum, but was deceived by two Chinese speaking lawyers into believing that he couldn’t seek political asylum and had to return to China back in 2016.
I also shared his story when I talked about how the CCP Virus statue in California got burned down in July.
Mr. Dong was on night watch together with the sculptor Mr. Chen Weiming at the statue some 20 days before the statue was burnt as they heard that the CCP would do something to the statue.
Well, I am glad to announce here that Mr. Dong has decided to become a columnist for my website and write Chinese articles for me.
He will also help me to do research and write scripts for me in Chinese so that I can use these materials in my programs.
Before Mr. Dong escaped from China, he had been the chief editor of two Chinese magazines. He has very deep knowledge of Chinese affairs, and quick and sharp insights on many world issues too. So, with his help, I hope I can do more and do better in the future.
I am very grateful that Mr. Gong is willing to help me as a volunteer because he believes in what I am doing. But I do hope that I can pay him in the future when I can afford it.
So, again, any kind of support and help from your guys is very much appreciated.
Evergrande Defaults on Management Fund, 99% Employees Become Victims
Now, let’s move to our topics today. First of all, I’d like to give you a quick update on China’s biggest real estate developer Evergrande’s current situation.
Let’s watch a short video first. You will see a lot of Evergrande employees protesting inside an office building of Evergrande as the company defaulted on its investment management product. Obviously, Evergrande’s capital chain was broken.
So this video was taken on Sep 10, two days after Evergrande defaulted on its investment management product.
It is said that 99% of Evergrande employees have been forced to buy this investment management product called Evergrande Wealth. And Evergrande has about 200K employees nationwide.
It is also reported that Evergrande has defaulted on its business notes that it issued to other companies when it borrowed money from them.
This report also says that victims of Evergrande Wealth from many cities are currently protesting outside the Evergrande office buildings in their cities.
Let’s watch another short video.
Obviously, the woman who was shouting with a loudspeaker is a victim. From her accent, I guess this is in Sichuan Province, which is my hometown.
You could also see that some victims were holding a sign in their hands. Ironically, these signs say, “Return my hard-earned money. No delay. We trust the government, we trust the Party!”
They still say they trust the government and the CCP. Actually I don’t think they really trust the government or the CCP anymore, but they have to say this to protect themselves.
Now let’s watch another video.
These are also victims of Evergrande marching on the street. They were shouting “Evergrande return my money!”
The latest development is, Evergrande issued a payment proposal today, offering three different solutions for the investors to choose.
Option 1 is to pay by cash, but only pay 10% of the investment amount on the last working day of the month when the investment product expires. After that, you can cash out 10% every three months, until all is paid. So altogether, it will take 28 months to get all your money back. Who knows what will happen in 28 months?
Option 2 is to pay by physical assets such as apartments, office buildings, storage and parking spaces that Evergrande owns. The problem is, if Evergrande has problems selling these properties, what can you do with them?
Option 3 is that you can offset the remaining money you owe Evergrande when you bought real estate from it. The problem is, if you don’t own money, this option has no use to you.
If you were an investor, which option would you choose?
Well, it seems the investors were not consulted about the three options. They have to choose one of them.
So, obviously, Evergrande is collapsing. Will the entire real estate market in China collapse together with it? We’ll have to wait and see.
“BlackRock’s China Blunder”
We all know that BlackRock got nod to launch China fund company in June this year, and became the first foreign money manager to be granted a license to run a 100%-owned fund management company in China.
Then, on August 30, it launched a set of mutual funds and other investment products for Chinese consumers. About one week later, it announced that it had raised about $1 billion for its China-based mutual fund.
On Sep 6, George Soros published an opinion article titled “BlackRock’s China Blunder”, and said that “Pouring billions of dollars into China now is a tragic mistake. It is likely to lose money for BlackRock’s clients and, more importantly, will damage the national security interests of the U.S. and other democracies.”
And then, BlackRock responded by saying that “China is ‘taking measures to address its growing retirement crisis.
“Blackrock thinks it can help China ‘address that challenge by providing … retirement system expertise, products, and services.’”
So, how should we look at all these dramas? Here is what I think.
History Of Wall Street and the CCP
First of all, we need to check a little bit of the history between Wall Street and the CCP.
At the beginning of 1988, in the cold of early spring, Beijing, which had been engaged in economic reform and opening up for nine years, welcomed a 40-member Wall Street delegation led by the chairman of the New York Stock Exchange. The delegation was hosted by the People’s Bank of China (later reorganized as the Central Bank of China).
At that time, the People’s Bank of China couldn’t even afford to hire professional translators for the delegation, so students from the graduate department of the People’s Bank became free human resources.
The Wall Street bigwigs came into contact with this group of finance graduate students, who had not yet seen the world, but had already learned about stocks. So the Wall Street guys were happily surprised, as they realized that in this still materially deprived, closed and backward country, there could exist opportunities that they could make big money later!
n the following year, in 1989, after the Tiananmen Massacre, a lot of western countries imposed sanctions against the CCP, but this hardly delayed Wall Street’s effort to enter China. As early as 1992, American International Assurance Company was allowed to open a branch in Shanghai, becoming the first Wall Street financial institution to enter the Chinese market.
In the same year, Shenyang Jinbei AutoMotive Company formed Brilliance Automotive to go public in the U.S., starting the process of Chinese companies going public in the U.S. Up to May this year, there have been 248 Chinese companies listed in the U.S. with a market capitalization of about $2.1 trillion.
According to some of the Chinese employees who worked at Morgan Stanley in the early years, Wall Street was intensely interested in China because only this emerging market had a large enough number and volume of companies and assets to satisfy Wall Street’s appetite.
In the meantime, the CCP, out of its need for regime legitimacy and the need for its leaders to satisfy their selfish desires, also desperately needed to link up with high-end international circles, especially after the international sanctions imposed on the CCP in 1989 for its suppression of the student movement.
That was why Wall Street and the CCP fell in love with each other. Wall Street was profit-oriented and didn’t care much about social justice.
Is the CCP Still a Good Gartner for Wall Street after It Turned to the Left?
The next question is, is the CCP still a good partner for Wall Street after it turned to the left?
In the past 3 decades or so, Wall Street and the CCP have been getting along with each other quite well. The CCP has grown to become the second largest super economy in the world, while Wall Street has gained huge profits and market expansion benefits.
However, what accompanied these were the rapid decline of manufacturing in the US, and the ongoing human rights disasters, the dramatic increase in the gap between rich and poor, and substantial degeneration of social morals in China. Only these extremely bad things have not stopped Wall Street from dancing with the wolves.
It wasn’t until President Trump entered the White House and began to address the issue of the CCP taking unfair advantage of America that things started to change.
Wall Street wasn’t able to stop Trump’s trade war against the CCP; and the first phase of the trade agreement the CCP signed with Trump secured further financial openness, and three years down the road, the CCP did open the door to Wall Street: Wall Street companies could finally set up their own 100% owned securities and asset management firms in China.
In the meantime, the CCP is rapidly shifting to the left because of internal power struggles and the choices made by the highest authorities. It not only cracked down on big Chinese companies and industries, but also launched media and public opinion wars to attack international capital.
In particular, a series of CCP’s “drunken boxing” actions starting in July led to a huge drop in the market value of US-listed Chinese stocks, with hundreds of billions of market value wiped off.
Not only did these listed companies suffer huge losses, but so did Wall Street and U.S. investors.
The problem is, nobody really knows why these things happened. Nobody knows what the CCP will do next.
In such a situation, Wall Street started selling off their Chinese stocks, causing further plunges.
In the meantime, it seems that some companies did gain some benefits. For example, Goldman Sachs was allowed to wholly own its subsidiary in China late last year, JPMorgan Chase gained the same permit in August, and BlackRock has begun operating in China like we just talked about.
In mid August, BlackRock even advised its clients to increase their positions in Chinese assets by two to three times.
So, it seems that these companies believe that they can handle the CCP, and even if there is political turmoil within the CCP, they can still collude with the CCP to protect themselves.
Can Wall Street Really Protect Itself?
It is difficult for outsiders to know the details of Wall Street’s collusion with the CCP. However, it was revealed in 2013 that it was a common industry practice for Wall Street investment firms to hire the children of top CCP officials to secure important business.
But these practices are likely to be investigated by the U.S. government, and confirmed as violations of the Foreign Corrupt Practice Act. So Wall Street is somehow restrained.
However, Wall Street may have something that is extremely valuable to the CCP: it can help the CCP to internationalize the RMB. For the CCP to break away from its dependence on the US and the US dollar system, and to truly become a world hegemony, it must internationalize the RMB.
At the same time, the huge profits earned by Wall Street in China are difficult to exchange into dollars and transfer out of China if the RMB is not internationalized.
So Wall Street does have motivation to help the CCP in this regard.
In fact, Wall Street is already doing this for the CCP. Some international financial institutions are significantly increasing their holdings of RMB assets.
Boosting the internationalization of the RMB will inevitably weaken the status of the US dollar and harm US interests.
Will Wall Street Prosper or Die Together with the CCP?
And the question is, will Wall Street and the CCP prosper together forever?
I am afraid not. Recently we discussed quite a lot about the various problems the CCP is encountering. Xi Jinping is still turning to the far left in order to secure his own power. It seems he will continue to do so until he meets a dead end.
When the CCP runs out of its financial resources, it will be Wall Street’s turn to sacrifice itself for the relationship and make the CCP live on. So Wall Street’s good fortune in the Communist China will not last.
Although it is possible that BlackRock can still profit in China, this kind of profit is dangerous, as its mission is only to trap more capital in.
History often repeats itself. The CCP confiscated all private and foreign assets in 1949 and refused to pay all historical foreign debts. Why are we so confident that it won’t do the same again? I think what has been happening recently in China is more than enough to serve as a wake-up call for Wall Street.
Well, it seems we are running out of time today. Maybe we can discuss more about the complex relationship between George Soros, BlackRock and the CCP, as well as why BlackRock’s claim about helping China fix its retirement crisis is a sheer lie next time.
Thank you very much for watching. Again, please make sure you subscribe to and share my channel, like my videos and leave us some comments.
Thank you. See you next time!
9/13/2021 *
Truth saves lives. Please support! 👇真相能救命，敬請支持！👇
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EverGrande Defaults & Can the Romance Between Wall Street and the CCP Last?
Hello, everyone, welcome to “Inconvenient Truths”. I am your host Jennifer Zeng.
Recently the news of the world’s largest asset manager BlackRock launching mutual funds in China, and billionaire investor George Soros’ sharp criticism of BlackRock has drawn a lot of attention. Today I’d like to talk about this issue, and how we should look at the relationship between Wall Street and the CCP. I will also give a brief update of the situation with China’s largest real estate developer Evergrande’s defaulting problem. So make sure you stick around till the end.
Before we move on, please subscribe to and share my channel if you haven’t, please also check if you are still subscribed, as sometimes people get unsubscribed without their knowledge.
Also, I have some exciting news to announce.
A New Contributor
You remember I talked about Chinese scholar and writer Guppy Dong’s story when I talked about how the CCP banned and limited English study in China?
r Guppy Dong’s Facebook Profile photo.
I said that because he doesn’t speak good English, he was deceived by two Chinese speaking lawyers in the US and Canada when he escaped from China to try to seek political asylum, but was deceived by two Chinese speaking lawyers into believing that he couldn’t seek political asylum and had to return to China back in 2016.
I also shared his story when I talked about how the CCP Virus statue in California got burned down in July.
Mr. Dong was on night watch together with the sculptor Mr. Chen Weiming at the statue some 20 days before the statue was burnt as they heard that the CCP would do something to the statue.
Well, I am glad to announce here that Mr. Dong has decided to become a columnist for my website and write Chinese articles for me.
He will also help me to do research and write scripts for me in Chinese so that I can use these materials in my programs.
Before Mr. Dong escaped from China, he had been the chief editor of two Chinese magazines. He has very deep knowledge of Chinese affairs, and quick and sharp insights on many world issues too. So, with his help, I hope I can do more and do better in the future.
I am very grateful that Mr. Gong is willing to help me as a volunteer because he believes in what I am doing. But I do hope that I can pay him in the future when I can afford it.
So, again, any kind of support and help from your guys is very much appreciated.
Evergrande Defaults on Management Fund, 99% Employees Become Victims
Now, let’s move to our topics today. First of all, I’d like to give you a quick update on China’s biggest real estate developer Evergrande’s current situation.
Let’s watch a short video first. You will see a lot of Evergrande employees protesting inside an office building of Evergrande as the company defaulted on its investment management product. Obviously, Evergrande’s capital chain was broken.
So this video was taken on Sep 10, two days after Evergrande defaulted on its investment management product.
It is said that 99% of Evergrande employees have been forced to buy this investment management product called Evergrande Wealth. And Evergrande has about 200K employees nationwide.
It is also reported that Evergrande has defaulted on its business notes that it issued to other companies when it borrowed money from them.
This report also says that victims of Evergrande Wealth from many cities are currently protesting outside the Evergrande office buildings in their cities.
Let’s watch another short video.
Obviously, the woman who was shouting with a loudspeaker is a victim. From her accent, I guess this is in Sichuan Province, which is my hometown.
You could also see that some victims were holding a sign in their hands. Ironically, these signs say, “Return my hard-earned money. No delay. We trust the government, we trust the Party!”
They still say they trust the government and the CCP. Actually I don’t think they really trust the government or the CCP anymore, but they have to say this to protect themselves.
Now let’s watch another video.
These are also victims of Evergrande marching on the street. They were shouting “Evergrande return my money!”
The latest development is, Evergrande issued a payment proposal today, offering three different solutions for the investors to choose.
Option 1 is to pay by cash, but only pay 10% of the investment amount on the last working day of the month when the investment product expires. After that, you can cash out 10% every three months, until all is paid. So altogether, it will take 28 months to get all your money back. Who knows what will happen in 28 months?
Option 2 is to pay by physical assets such as apartments, office buildings, storage and parking spaces that Evergrande owns. The problem is, if Evergrande has problems selling these properties, what can you do with them?
Option 3 is that you can offset the remaining money you owe Evergrande when you bought real estate from it. The problem is, if you don’t own money, this option has no use to you.
If you were an investor, which option would you choose?
Well, it seems the investors were not consulted about the three options. They have to choose one of them.
So, obviously, Evergrande is collapsing. Will the entire real estate market in China collapse together with it? We’ll have to wait and see.
“BlackRock’s China Blunder”
We all know that BlackRock got nod to launch China fund company in June this year, and became the first foreign money manager to be granted a license to run a 100%-owned fund management company in China.
Then, on August 30, it launched a set of mutual funds and other investment products for Chinese consumers. About one week later, it announced that it had raised about $1 billion for its China-based mutual fund.
On Sep 6, George Soros published an opinion article titled “BlackRock’s China Blunder”, and said that “Pouring billions of dollars into China now is a tragic mistake. It is likely to lose money for BlackRock’s clients and, more importantly, will damage the national security interests of the U.S. and other democracies.”
And then, BlackRock responded by saying that “China is ‘taking measures to address its growing retirement crisis.
“Blackrock thinks it can help China ‘address that challenge by providing … retirement system expertise, products, and services.’”
So, how should we look at all these dramas? Here is what I think.
History Of Wall Street and the CCP
First of all, we need to check a little bit of the history between Wall Street and the CCP.
At the beginning of 1988, in the cold of early spring, Beijing, which had been engaged in economic reform and opening up for nine years, welcomed a 40-member Wall Street delegation led by the chairman of the New York Stock Exchange. The delegation was hosted by the People’s Bank of China (later reorganized as the Central Bank of China).
At that time, the People’s Bank of China couldn’t even afford to hire professional translators for the delegation, so students from the graduate department of the People’s Bank became free human resources.
The Wall Street bigwigs came into contact with this group of finance graduate students, who had not yet seen the world, but had already learned about stocks. So the Wall Street guys were happily surprised, as they realized that in this still materially deprived, closed and backward country, there could exist opportunities that they could make big money later!
n the following year, in 1989, after the Tiananmen Massacre, a lot of western countries imposed sanctions against the CCP, but this hardly delayed Wall Street’s effort to enter China. As early as 1992, American International Assurance Company was allowed to open a branch in Shanghai, becoming the first Wall Street financial institution to enter the Chinese market.
In the same year, Shenyang Jinbei AutoMotive Company formed Brilliance Automotive to go public in the U.S., starting the process of Chinese companies going public in the U.S. Up to May this year, there have been 248 Chinese companies listed in the U.S. with a market capitalization of about $2.1 trillion.
According to some of the Chinese employees who worked at Morgan Stanley in the early years, Wall Street was intensely interested in China because only this emerging market had a large enough number and volume of companies and assets to satisfy Wall Street’s appetite.
In the meantime, the CCP, out of its need for regime legitimacy and the need for its leaders to satisfy their selfish desires, also desperately needed to link up with high-end international circles, especially after the international sanctions imposed on the CCP in 1989 for its suppression of the student movement.
That was why Wall Street and the CCP fell in love with each other. Wall Street was profit-oriented and didn’t care much about social justice.
Is the CCP Still a Good Gartner for Wall Street after It Turned to the Left?
The next question is, is the CCP still a good partner for Wall Street after it turned to the left?
In the past 3 decades or so, Wall Street and the CCP have been getting along with each other quite well. The CCP has grown to become the second largest super economy in the world, while Wall Street has gained huge profits and market expansion benefits.
However, what accompanied these were the rapid decline of manufacturing in the US, and the ongoing human rights disasters, the dramatic increase in the gap between rich and poor, and substantial degeneration of social morals in China. Only these extremely bad things have not stopped Wall Street from dancing with the wolves.
It wasn’t until President Trump entered the White House and began to address the issue of the CCP taking unfair advantage of America that things started to change.
Wall Street wasn’t able to stop Trump’s trade war against the CCP; and the first phase of the trade agreement the CCP signed with Trump secured further financial openness, and three years down the road, the CCP did open the door to Wall Street: Wall Street companies could finally set up their own 100% owned securities and asset management firms in China.
In the meantime, the CCP is rapidly shifting to the left because of internal power struggles and the choices made by the highest authorities. It not only cracked down on big Chinese companies and industries, but also launched media and public opinion wars to attack international capital.
In particular, a series of CCP’s “drunken boxing” actions starting in July led to a huge drop in the market value of US-listed Chinese stocks, with hundreds of billions of market value wiped off.
Not only did these listed companies suffer huge losses, but so did Wall Street and U.S. investors.
The problem is, nobody really knows why these things happened. Nobody knows what the CCP will do next.
In such a situation, Wall Street started selling off their Chinese stocks, causing further plunges.
In the meantime, it seems that some companies did gain some benefits. For example, Goldman Sachs was allowed to wholly own its subsidiary in China late last year, JPMorgan Chase gained the same permit in August, and BlackRock has begun operating in China like we just talked about.
In mid August, BlackRock even advised its clients to increase their positions in Chinese assets by two to three times.
So, it seems that these companies believe that they can handle the CCP, and even if there is political turmoil within the CCP, they can still collude with the CCP to protect themselves.
Can Wall Street Really Protect Itself?
It is difficult for outsiders to know the details of Wall Street’s collusion with the CCP. However, it was revealed in 2013 that it was a common industry practice for Wall Street investment firms to hire the children of top CCP officials to secure important business.
But these practices are likely to be investigated by the U.S. government, and confirmed as violations of the Foreign Corrupt Practice Act. So Wall Street is somehow restrained.
However, Wall Street may have something that is extremely valuable to the CCP: it can help the CCP to internationalize the RMB. For the CCP to break away from its dependence on the US and the US dollar system, and to truly become a world hegemony, it must internationalize the RMB.
At the same time, the huge profits earned by Wall Street in China are difficult to exchange into dollars and transfer out of China if the RMB is not internationalized.
So Wall Street does have motivation to help the CCP in this regard.
In fact, Wall Street is already doing this for the CCP. Some international financial institutions are significantly increasing their holdings of RMB assets.
Boosting the internationalization of the RMB will inevitably weaken the status of the US dollar and harm US interests.
Will Wall Street Prosper or Die Together with the CCP?
And the question is, will Wall Street and the CCP prosper together forever?
I am afraid not. Recently we discussed quite a lot about the various problems the CCP is encountering. Xi Jinping is still turning to the far left in order to secure his own power. It seems he will continue to do so until he meets a dead end.
When the CCP runs out of its financial resources, it will be Wall Street’s turn to sacrifice itself for the relationship and make the CCP live on. So Wall Street’s good fortune in the Communist China will not last.
Although it is possible that BlackRock can still profit in China, this kind of profit is dangerous, as its mission is only to trap more capital in.
History often repeats itself. The CCP confiscated all private and foreign assets in 1949 and refused to pay all historical foreign debts. Why are we so confident that it won’t do the same again? I think what has been happening recently in China is more than enough to serve as a wake-up call for Wall Street.
Well, it seems we are running out of time today. Maybe we can discuss more about the complex relationship between George Soros, BlackRock and the CCP, as well as why BlackRock’s claim about helping China fix its retirement crisis is a sheer lie next time.
Thank you very much for watching. Again, please make sure you subscribe to and share my channel, like my videos and leave us some comments.
Thank you. See you next time!
9/13/2021 *
Truth saves lives. Please support! 👇真相能救命，敬請支持！👇
🌺Patreon 贊助： https://is.gd/Sq9SPc
🌺Paypal 捐款：http://paypal.me/JenniferZeng97
🌺Subscribestar會員: https://is.gd/MV8PwD
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🌺Bitcoin 捐款：bc1qlkkvwyvw96x3xx6jgzkhlnnv0nv3d9vm078vfd **************************************************
㊙️English YouTube Channel 英文油管頻道：https://www.youtube.com/c/InconvenientTruthsbyJenniferZeng
㊙️Chinese YouTube Channel 中文油管頻道：https://www.youtube.com/c/JenniferZeng
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