China’s economic growth is “a fiction” and the country’s stock-market rout will get worse from here, according to the former head of Hong Kong’s securities regulatory agency.
To add on to Wheatley’s points, even China’s own Audit General department admitted that lots of mainland companies are cooking the books and faking the accounts.
China is living on QE (printing money) to stimulate internal demand to keep the political growth rate looked being matched but where does the money go? Big thanks to its global dumping infrastructure projects of debt traps and the property markets in HK and many Western cities.
As long as Xi Jin Ping’s big dream and big clean up of his political rivalries through the ‘anti-corruption’ political campaigns are on, the red aristocrats will look for and exhaust ways to transfer money and assets out by all means.
The main reason for not going into China stocks is they force HK to pass the “USA” laws for weighted votes, means what? Minority shareholders’ money, mainly from the inexperienced and rhoetic public are being pumped to facilitate the dodgy activities of the poorly governance State Owned Enterprises and Mainland enterprises.
As patriotism and political correctness replaced fair market rules as the principle of the regulation of HK’s financial market, this is a tale of city ends as being a credible international financial center.
It is not just about the regulation of financial market, it is the FUNDAMENTAL SHIFT of fiscal management in HK because of China’s over assertion to tear down its promises to uphold One Country Two Systems by pushing ALL the worst governance and regulatory culture it can find in China to HK.
Wheatley was right, the ‘miracles’ of China’s economy was a fiction but for HK, it is a bad reality of financial derogatory caused by melting down of governance. People like him who is experience, knowledgeable, bold, and not bending to political, economic and other pressures are not welcome to HK.
