George Soros writing in the Wall Street Journal, link here (may be gated)
Says BlackRock … appears to misunderstand President Xi Jinping’s China.
- there is an enormous crisis brewing in China’s real-estate market. …
- The president recently launched his “Common Prosperity” program, which is a fundamental change in direction. It seeks to reduce inequality by distributing the wealth of the rich to the general population. That does not augur well for foreign investors.
- Pouring billions of dollars into China now is a tragic mistake. It is likely to lose money for BlackRock’s clients and, more important, will damage the national security interests of the U.S. and other democracies.
That’s the summary, but there is more at Soros’ piece linked above.
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I’ve lost count of the number of doom and gloom calls on China. Maybe its different this time though. There is no doubting the prowess of Soros as an investor so maybe he is on the right track. I dunno.
This article was originally published by Forexlive.com. Read the original article here.