Rarely, if ever, has a government initiative with more strategic importance been unveiled in a more low-key way than a “fact sheet” issued by the State Department on Saturday. The facts thus revealed about the Chinese Communist Party’s deep penetration of our capital markets, however, are likely to be shocking to most American investors – and a stunning rebuke to those who have put our money into what the government calls “malign PRC companies.”
According to State’s fact sheet, large numbers of such CCP-tied companies are, either in their own right or via subsidiaries, tapping U.S. exchanges for capital. That means, “The Chinese Communist Party’s threat to American national security extends into our financial markets and impacts American investors.”
The State Department-identified U.S. indexes – and the Exchange Traded Funds that “wrap” them – exposed as these malign companies’ underwriters must divest such assets. Now.
This is Frank Gaffney.