Has China Been Systematically Stealing US Investors Wealth?

By Jeff Voudrie
Since 2008, numerous Chinese companies have become listed on U.S. stock exchanges. Undoubtedly, many wealth investors, including retired wealth investors and those pursuing retirement income strategies, may have invested in these highly-touted, high-flyers. Now, almost 4 years later, evidence of fraud is surfacing that begs the question whether or not these listings were designed solely to systematically transfer billions of dollars into the hands of China’s elite.

That’s the conclusion that can be drawn from several articles and posts that I’ve read today. Each article supplies a part of the overall picture. First, there is Bruce Krasting’s post on Business Insider, “Kleptocrats Are Fleeing China With Loot In Tow.” Here are just a couple of highlights:

“More than a million public servants have sent large sums abroad.”

“In 2011, the Central Bank reported that corrupt officials had transferred more than 120 Billion U.S. dollars abroad.”

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There is another article that I read from Bronte Capital that talks about how rampant fraud is in China. In it, John asserts that China is a country “ruled by thieves.” Further, he asserts that “The children and relatives of CPC Central Committee members are amongst the beneficiaries of the wave of stock fraud in the U.S.”

Lastly, there are several articles on Top Secret Writers including this one that specifically speak to the prevalence of fraud associated with those Chinese companies listing on U.S. exchanges since 2008, especially those making use of reverse mergers to do so.

As a wealth manager that specializes in working with retired wealth investors and those developing retirement income strategies, I recognize that now, more than ever, consistent in-depth research is required in order to keep abreast of the dangers that can easily threaten one’s retirement portfolio and lifestyle.

Common Sense Advisors does not offer investment advice via this medium. Under no circumstance whatsoever do these postings, opinions, charts, or any other information represent a recommendation or personalized investment, tax, or financial planning advice.


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Any opinions expressed herein are solely those of the author and do not in any way represent the views or opinions of any other person or entity.