top of page
Long-time Chief Executive Officer Ben Silbermann of Pinterest would step down, handing over the reins of the social media platform to Google...

Stock Market

Google executive to take over as a new CEO of Pinterest

Top accounting firm Ernst & Young has been slammed with a record $100 million fine from the US government...

Stock Market

Accounting firm gets 100 million fine for faulty regulations

The Indian rupee slipped into a fresh low today and extended losses against the US dollar.

Forex

The rupee tumbled to a new low against the dollar in the midst of an increase in crude oil price

Wall Street saw a sharp fall at its closing in a broad sell-off. Consumers' worries over recession have sparked up...

Stock Market

Wall Street Lose Balance after recession strikes growth fear among consumers’

Soaring inflation may be pushing the US economy into a deep recession. Last week's 0.75% interest rate hike by the Federal Reserve...

Stock Market

Inflation ringing the recession bell - Mohammed Shaheen

Economy

7 Sept 2021

George Soros says that Investing in China now is a Tragic Mistake

The Index Today

George Soros denounced BlackRock’s China measures as a risk to customer funds and U.S. security interests. This is a recent attack by the billionaire financier and philanthropist against investing in China which is the world’s second largest economy.
Soros wrote in a Wall Street Journal column, “It is a tragic mistake to invest billions of dollars in China now.” “For BlackRock customers, this is likely to suffer losses, and more importantly, it will harm the national security interests of the United States and other democracies,” he added.
BlackRock is known as the leading the global advancement into China’s asset management industry. The world’s largest fund management company began offering investment products to Chinese individuals last month, two months after it was approved to become China’s first wholly foreign-owned mutual fund company.
In a recent article written by Soros, he stated that BlackRock seems to have misunderstood Xi Jinping. He said that Xi Jinping’s government views all Chinese companies as “tools of a one-party state.”
The different views of the two most influential fund managers in the world underscore the increasingly tense environment facing financial companies in Asia’s largest economies. Although Xi Jinping has made it easier for foreign investors to participate in the domestic market, his government is also strengthening its control over the private sector and clashed with the United States on everything from cyber security to human rights violations in Xinjiang.
Soros said that the restrictions that began with the abrupt cancellation of the Ant Group’s initial public offering last year have “reached a climax.” He cited actions against ride-hailing company Didi Global a few days after listing in New York, as well as the crackdown on “US-funded” Chinese tuition companies. Soros also said that BlackRock’s managers must be aware that “China’s real estate market is brewing a huge crisis.”
Although Soros is still an influential supporter of US President Joe Biden’s Democratic Party, he no longer manages external funds and is currently only a minority voice on Wall Street. BlackRock, Goldman Sachs and most of their major counterparts in the treasury management and banking industries believe that China’s opportunities outweigh the risks.
Soros said: “Today, the United States and China are involved in a life-and-death conflict between two governance systems: repressive and democratic.”

Clay pottery with table linens
bottom of page