Thursday, September 23, 2021

BlackRock addresses criticism of George Soros’ firm’s China investment

BlackRock, the world’s largest asset manager, on September 8 responded to sharp criticism from billionaire investor George Soros, who raised issues regarding the firm’s recent investments in China.

In a rare Wall Street Journal editorial published on September 6, Soros warned that pouring money into China was to aid an oppressive regime that took a “time of life and death struggle” with democratic values ​​created by the United States. Used to be.

“It is a sad mistake to pour billions of dollars into China now. This is likely to lose money for BlackRock customers and, more importantly, harm the national security interests of the US and other democracies,” Soros wrote.

“The BlackRock Initiative threatens the national security interests of the US and other democracies because money invested in China will help advance President Xi’s regime, which is repressive at home and aggressive abroad.”

Yug Times Photos
Billionaire investor George Soros delivers a speech on the sidelines of the annual meeting of the World Economic Forum in Davos, Switzerland on January 24, 2019. (Fabrice Cofrini/AFP via Getty Images)

BlackRock responded to the criticism in a statement provided to CNBC. The asset management firm said it established its first mutual fund in China after raising just over $1 billion from 111,000 investors.

“The US and China have a large and complex economic relationship,” a BlackRock spokesperson said. “The total trade in goods and services between the two countries exceeded $600 billion in 2020. Through our investment activity, US-based asset managers and other financial institutions contribute to the economic interconnection of the world’s two largest economies. “

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In addition to criticizing BlackRock’s entry into China’s mutual fund market, Soros blamed the asset manager for recommending that investors stop treating China as a developing nation and invest in Chinese securities. Triple your risk.

“The Chinese market represents a significant opportunity to help meet the long-term goals of investors in China and internationally,” BlackRock Chairman and CEO Larry Fink wrote in a letter to shareholders.

In a statement to CNBC, a BlackRock spokesperson said the company can help China address its retirement crisis by providing retirement services expertise.

Soros viewed BlackRock’s China ventures as a misguided move driven by a fundamental misunderstanding of Chinese leader Xi Jinping.

“It appears that the firm has taken Mr. Xi’s ruling statements at face value. It has differentiated between state-owned enterprises and privately-owned companies, but this is far from reality. The regime covers all Chinese companies. regards as a one-party state instrument,” Soros wrote.

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The billionaire investor also cautioned that while pouring money into China to avert an impending real estate crisis, it will not address the deeper signs of decline, including a falling birth rate.

Ivan Pentchukov

Evan has reported for The Epoch Times on a variety of topics since 2011.

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This News Originally From – The Epoch Times

BlackRock addresses criticism of George Soros' firm's China investment
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