In order to avoid being harvested by the CCP, more and more wealthy Chinese are fleeing and transferring large amounts of assets abroad. The picture shows a China Eastern Airlines passenger plane taking off from Beijing Daxing International Airport. (STR/AFP)
[The Epoch Times, February 12, 2024](Epoch Times reporters Ning Haizhong and Luo Ya interviewed and reported) As the Year of the Rabbit passes and the Year of the Dragon arrives, news that China’s rich are in a bad situation is spreading frequently. Among them, Shanghai private equity tycoon Cao Xin jumped from a building and passed away, which is suspected to be related to the recent continued decline in the Chinese stock market. Some commentaries believe that Chinese stock market investors are experiencing a painful reversal this year. Experts say that China’s wealthy class are gradually being deprived of their property in different ways. They may choose to flee, but they may also resist.
Caixin disclosed on the 7th that Cao Xin, the founding partner of Tianli (Shanghai) Asset Management Co., Ltd., “passed away due to personal mental health reasons” on January 31. He was only 34 years old.
Cao Xin also serves as the chairman of Zhongrong Holding Group Co., Ltd. Tianli Asset, which he founded, specializes in fund management of equity investment in China’s technology industry, with investments involving dozens of projects in advanced manufacturing, artificial intelligence, new energy and other fields.
Although Caixin reported that the cause of Cao Xin’s death was “personal mental health reasons,” claims from the investment industry pointed out that Cao Xin’s funds were cut off due to the sharp decline in the small stocks he held; another theory pointed out that Cao Xin died due to The funds were cut off and loan sharks were borrowed in an attempt to equalize the situation. As a result, the Chinese stock market plummeted further, resulting in the inability to repay.
In the first three weeks of the New Year, China’s stock market continued to fall, with the Shanghai Stock Exchange Index hitting a low of 2,635 points, a new low since February 2019.
On February 8, a commentary article published by the British “Economist” discussed the various difficulties currently facing the Chinese economy and bluntly stated that investors in the Chinese stock market have experienced a “hair-raising journey” this year. The article said that when faced with difficulties, the Beijing authorities did not realize the need for extensive changes, and the response measures they took made things worse.
The article pointed out that with the crisis in the real estate industry, the Chinese economy has been dragged into deflation. Not only are foreign investors withdrawing from the Chinese market, but even domestic investors are losing confidence. The wealth of China’s rich are experiencing a painful reversal. They Property and financial investments have shrunk significantly. There is evidence that more capital is flowing out of China.
Taiwanese financial expert Huang Shicong told The Epoch Times on February 12 that now China’s real estate, stock market, and financial products have all fallen, and even the RMB has depreciated. In addition, government policies are suppressing the rich, and the wealthy class is worried about the situation. Self-aware. “This kind of incidents of agents or company executives falling from buildings or dying unexpectedly continue to happen. It is obvious that the wealthy class is quite embarrassed and uneasy under the leadership of Xi Jinping.”
Yuan Hongbing, a liberal scholar living in Australia, told The Epoch Times on February 12 that in the view of the CCP leader, the stock market has only one role, which is to finance the CCP’s state-owned enterprises. As for individuals who want to make a fortune through the stock market, Xi Jinping believes that this is a bourgeois speculative idea, so he doesn’t care at all about the shrinking of investors’ funds.
“China’s middle class has been cut off by Xi Jinping’s political attitude towards the stock market. Whether China’s rich or middle class still want to maintain their wealth according to the past thinking model, it is completely impossible. Due to the rapid development of the entire economy The trend of poverty for the Chinese people as a whole has begun.”
Since the current leader of the Communist Party of China started his third term in 2022, due to the deteriorating political and business environment in China, more and more wealthy Chinese have fled China.
According to the “Global Wealth Flow Report” released by Henley & Partners, a British investment immigration consulting firm, in June last year, it is estimated that 13,500 high-net-worth individuals (with more than US$1 million in investable assets) will immigrate overseas in China in 2023 . This number ranks first in the world, 2,700 more than the 10,800 Chinese wealthy people who will immigrate overseas in 2022, an increase of 25%.
Huang Shicong believes that the CCP continues to strengthen the party-state system by harvesting various industries and pushing the rich to the opposite side. However, at the same time, it firmly controls the party, government, military, spies, and media. People have no effective way to fight except to escape. “When people and money leave China, it is a safer state.”
Yuan Hongbing said that the CCP has had a tradition of robbing the wealthy since the founding of the party. Xi Jinping’s so-called “common prosperity” now sounds like he is robbing the rich to give to the poor. In fact, it is making everyone poorer, not richer. Xi wants to supplement the serious financial crisis and solve the hidden military shortage by depriving the wealthy.
“In the coming period, the property of these so-called wealthy people will be gradually deprived by Xi Jinping under various excuses. This is a big trend.”
But Yuan Hongbing said that not everyone can escape, and the CCP’s perverse actions will eventually arouse resistance in the country. “Every policy implemented by Xi Jinping now is pushing China’s domestic politics onto the path of national resistance and popular uprising.”
Editor in charge: Fang Xiao#
2024-02-12 09:11:41
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