Thread by @Jkylebass

In my meetings with members of US Congress over the past few days.Something strange happening.Jiang Feng (former head of the chinese SEC (CSRC) and now head of Shanghai Stock exchange)has been making the rounds in DC telling congressmen that chinese companies don’t need audits 1/

Because all chinese company data is a “national secret”. MSCI has been cajoled into forcing US investors to funnel hundreds of billions of USD investments into chjnese companies that don’t adhere to basic US securities laws. When confronted with the fact that we demand audits 2/

Of companies like Northrop Grumman, Boeing, Raytheon, etc...Feng didn’t have an answer. The chinese are so short USD that Feng must make the rounds in DC in an attempt to try to kee the passive money flowing their way. He pushed for MSCI inclusion and for the heavier weighting 3/

It should go without saying that if US index money is flowing to a foreign destination like the MSCI indicies, the securities invested in should be compliant with US Securities laws, conduct real audits as per the PCAOB, and should have to file audited financial statements 4/

Otherwise, ERISA fiduciaries are going to have personal liability for investing in companies in jurisdictions where there are no covered audits, no rule of law, and no Dodd frank compliance. Fiduciary responsibility has been ignored and it won’t be much longer. #china #noaudits

One last interesting thought...of all chinese company data is a “national secret”, then how can Elaine Chow’s sister Angela Chow be on the Bank of China’s Board of Directors? How can she chair the audit committee as a US Citizen? The web the chinese weave is actually simple.