Why Are American Investors Funding Chinese Fraud?

One of the points we’ve long made at AC2 is that the numbers coming out of China are highly suspect. The bet with China has always been, “So what? It’s growing like crazy. Sure it’s controlled by the Communist Party. But have you SEEN what has happened to the Shanghai skyline? How can one go wrong?”

One can go wrong.

(From Real Clear Politics)

Wall Street’s ETF issuers and index providers have funneled billions of dollars of American investor money out of the U.S. and into Chinese companies pushing the “you can’t miss out on China growth” narrative. The problem for investors is they have no insight into whether these companies are growing, profitable, or losing money because the Chinese Communist Party (CCP) regularly asserts a national security privilege to prevent routine audits from taking place.